Cenovus Continues Shedding Assets to Pay Down Debt
October 19 2017 - 07:24AM
Dow Jones News
By Cara Lombardo
Cenovus Energy Inc. (CVE.T, CVE) on Thursday said it agreed to
sell its Palliser crude-oil and natural-gas assets in Alberta to
Torxen Energy and Schlumberger Ltd. (SLB) for C$1.3 billion ($1
billion) as it continues to shed property to reduce debt.
Cenovus said it would use the cash proceeds from the sale, which
is expected to close in the fourth quarter, to pay down a bridge
loan. Last month, the company closed a C$975 million sale and
announced a C$512 million sale to International Petroleum Corp.
"Our strategy to optimize our portfolio by selling non-core
assets and using the proceeds to pay down debt is firmly on track,"
Chief Executive Brian Ferguson said in prepared remarks. He said
the Alberta-based company is on target to sell between C$4 billion
and C$5 billion of its conventional oil and natural-gas assets this
year.
Cenovus has embarked on a divestiture campaign after closing on
a $13.3 billion deal with ConocoPhillips (COP)earlier this year to
acquire full ownership of its oil-sands operations and a production
platform in the Deep Basin in northwestern Alberta and British
Columbia.
Cenovus also said it expects to reach an agreement to sell
additional assets in Saskatchewan during the fourth quarter and
said it is continuing to explore other possible sales.
Shares in the company are down 40% this year.
Write to Cara Lombardo at cara.lombardo@wsj.com
(END) Dow Jones Newswires
October 19, 2017 07:09 ET (11:09 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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