Cenovus intends to implement normal course issuer bid
November 04 2021 - 4:30PM
Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) announced today that the
Toronto Stock Exchange (TSX) has accepted the company's notice of
intention to implement a normal course issuer bid (“NCIB”) to
purchase up to 146,451,823 common shares during the 12-month period
commencing November 9, 2021 and ending November 8, 2022.
Cenovus’s intention to launch a share buyback program, along
with its recently announced dividend increase, are consistent with
the company’s capital allocation framework, which supports
enhancing value for investors by returning cash to shareholders,
generating strong returns on capital investment and deleveraging.
Cenovus believes there are times when the market price of its
common shares may not fully reflect the underlying value of its
business and future prospects. Depending on the trading price of
its common shares and other relevant factors, the company believes
purchasing common shares represents an attractive investment
opportunity and is in the best interest of Cenovus and its
shareholders.
The number of shares authorized for purchase represents 10% of
Cenovus's public float, as defined by the TSX, as of October 29,
2021. On October 29, 2021 Cenovus had 2,017,677,419 common shares
outstanding. Purchases will be made on the open market through the
facilities of the TSX, New York Stock Exchange (NYSE) and/or
alternative trading systems in Canada and the United States at
market prices prevailing at the time of acquisition or such other
price as may be permitted by securities laws, including Rule 10b-18
under the U.S. Securities Exchange Act of 1934, as amended, or any
exemptions therefrom.
Cenovus has also entered into an automatic share purchase plan
(“ASPP”), with RBC Dominion Securities Inc. as its designated
broker, allowing it to purchase common shares under the NCIB when
the company would ordinarily not be permitted to purchase shares
due to regulatory restrictions and customary self-imposed blackout
periods. Pursuant to the ASPP, Cenovus will provide instructions
during non-blackout periods to its designated broker, which may not
be varied or suspended during the blackout period. Purchases by
Cenovus's designated broker will be in accordance with stock
exchange rules, applicable securities laws and the terms of the
ASPP. All purchases made under the ASPP are included in computing
the number of common shares purchased under the NCIB. The ASPP has
been pre-cleared, as required by the TSX.
The actual number of common shares that may be purchased under
the NCIB and the timing of any such purchases will be determined by
Cenovus. The average daily trading volume through the facilities of
the TSX during the most recently completed six-month period was
5,765,664 common shares. Consequently, daily purchases through the
facilities of the TSX will be limited to 1,441,416 common shares,
which is equal to 25% of the average daily trading volume, other
than block purchase exceptions. Purchases over the NYSE will be
made in compliance with the volume limitations in Rule 10b-18 in
relation to average daily trading volume and block trades. All
common shares acquired by Cenovus under the NCIB will be
cancelled.
Advisory
Forward-looking Information This news release
contains certain forward-looking statements and forward-looking
information (collectively referred to as “forward-looking
information”) within the meaning of applicable securities
legislation, including the U.S. Private Securities Litigation
Reform Act of 1995, about Cenovus’s current expectations, estimates
and projections about the future of the combined company, based on
certain assumptions made in light of experiences and perceptions of
historical trends. Although Cenovus believes that the expectations
represented by such forward-looking information are reasonable,
there can be no assurance that such expectations will prove to be
correct.
Forward-looking information in this news release is identified
by words such as “intention” or “will” or similar expressions and
includes suggestions of future outcomes, including, but not limited
to, statements about launching a share buyback program under an
NCIB and acquiring and cancelling Cenovus common shares under such
program.
Developing forward-looking information involves reliance on a
number of assumptions and consideration of certain risks and
uncertainties, some of which are specific to Cenovus and others
that apply to the industry generally.
Readers are cautioned that other events or circumstances,
although not listed above, could cause Cenovus’s actual results to
differ materially from those estimated or projected and expressed
in, or implied by, the forward-looking statements. For a full
discussion of material risk factors, refer to "Risk Management and
Risk Factors" in Cenovus’s Management’s Discussion and Analysis of
the financial and operating results for the year ended December 31,
2020 and the risk factors set forth under the heading “Risk
Factors” in Cenovus’s Annual Information Form, and to the risk
factors described in other documents Cenovus files from time to
time with securities regulatory authorities in Canada, available on
SEDAR at sedar.com, and with the U.S. Securities and Exchange
Commission on EDGAR at sec.gov, and on its website at
cenovus.com.
Cenovus Energy Inc.Cenovus Energy Inc. is an
integrated energy company with oil and natural gas production
operations in Canada and the Asia Pacific region, and upgrading,
refining and marketing operations in Canada and the United States.
The company is focused on managing its assets in a safe, innovative
and cost-efficient manner, integrating environmental, social and
governance considerations into its business plans. Cenovus common
shares and warrants are listed on the Toronto and New York stock
exchanges, and the company’s preferred shares are listed on the
Toronto Stock Exchange. For more information, visit
cenovus.com.
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Instagram.
Cenovus contacts:
Investors |
Media |
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Investor Relations general
line |
Media Relations general
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403-766-7711 |
403-766-7751 |
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