Cenovus Energy has completed its acquisition of MEG Energy, a move that immediately expands the company’s oil sands portfolio with an additional 110,000 bpd of long-life, low-cost production and consolidates a core growth area in northern Alberta.
The transaction, first announced earlier this year, brings MEG’s operations—located directly adjacent to Cenovus’s Christina Lake asset—fully into the company’s portfolio. Cenovus said the combination strengthens its operating scale, enhances project synergies, and integrates a top-tier set of thermal oil assets.
Total consideration included $752 million in cash for 25 million MEG shares acquired on the open market prior to closing, $3.44 billion in cash paid to remaining MEG shareholders under the agreement, the issuance of 143.9 million Cenovus common shares, and approximately $800 million in net debt assumed at closing.
“The addition of MEG assets and people will have an immediate positive impact on Cenovus,” said Jon McKenzie, President and CEO. “The strategic fit is exceptional, the assets are of the highest quality, and the synergies we have identified will create significant value over both the short and long term.”
Cenovus plans to provide updated production and capital guidance reflecting the acquisition when it announces its 2026 budget on December 11. MEG’s common shares are expected to be delisted from the Toronto Stock Exchange at the close of trading on November 14.
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