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Stock Market & Financial Investment News

News Breaks
March 19, 2014
06:44 EDTCVECenovus Energy initiated with a Sector Performer at CIBC
News For CVE From The Last 14 Days
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June 30, 2015
15:18 EDTCVECenovus Energy upgraded to Outperform from Neutral at Macquarie
06:03 EDTCVECenovus sells royalty business for $3.3B to Ontario Teachers' Pension Plan
Cenovus Energy has reached an agreement to sell Heritage Royalty Limited Partnership, a wholly-owned subsidiary, to Ontario Teachers' Pension Plan for gross cash proceeds of approximately $3.3B. HRP holds approximately 4.8M gross acres of royalty interest and mineral fee title lands in Alberta, Saskatchewan and Manitoba. In the first quarter of 2015, HRP had associated third-party royalty interest volumes of approximately 7,800 barrels of oil equivalent per day. Additional royalties have also been added to HRP a royalty on Cenovus's working interest production with implied first quarter volumes of approximately 5,400 BOE/d, as well as a Gross Overriding Royalty on Cenovus's Pelican Lake heavy oil property in northern Alberta and its enhanced oil recovery project in Weyburn, Saskatchewan, with implied first quarter volumes of 1,600 BOE/d. The GORR represents less than 15% of HRP's cash flow. Cenovus's decision to sell HRP to Teachers' is the outcome of a rigorous marketing process that attracted significant interest. Over the past several months, the company considered several alternatives to generate value from the business, including a potential initial public offering. After a thorough review, the transaction with Teachers' was determined to be the best alternative to maximize value for Cenovus shareholders. At the end of the first quarter, the company's net debt to capitalization ratio was 27%, which significantly improves with this transaction. Cenovus's pro forma cash position at the end of the quarter would have been $5.1 billion, or $6.16 per outstanding share. As a result of the transaction, Cenovus's consolidated production, on a pro forma basis, will be reduced by the 7,800 BOE/d of third-party royalty interest volumes. Where Cenovus has current working interest production on these fee lands, the company has entered into lease agreements with HRP. Royalty rates and lease terms are attractive to Cenovus and are not expected to materially impact the free cash flow currently generated from these assets. To help preserve the future growth and development of its conventional oil and gas business, the company has also retained an option to acquire leases at pre-determined rates and lease terms for up to 10 years on more than 800,000 acres in zones of the fee lands currently being developed by Cenovus. Approximately 40 staff members of HRP will be transferred as part of the transaction.
06:03 EDTCVECenovus Energy sells royalty business for $3.3B
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06:01 EDTCVECenovus Energy sells royalty business for $3.3B
June 29, 2015
10:09 EDTCVEOn The Fly: Analyst Initiation Summary
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June 28, 2015
20:25 EDTCVECenovus Energy initiated with a Sell at Goldman
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June 19, 2015
06:01 EDTCVECenovus confirms discussions with counterparty with royalty lands transaction
Cenovus Energy announced that it continues to make progress on its previously announced plan to pursue opportunities to maximize the value of its royalty interest and mineral fee title lands. The company confirms it is in discussions with a counterparty with respect to a potential sale of the assets. There is no assurance any agreement will result from the discussions. Until such time as it is appropriate to make a public announcement about a transaction, Cenovus does not intend to comment further on this matter.
06:01 EDTCVECenovus Energy updates royalty lands transaction process
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