Cenovus Targets Integration in Husky Merger

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Oil sands producer Cenovus Energy plans to merge with Canadian rival Husky Energy in an C$8.9 billion (US$6.74 billion) takeover to create an integrated behemoth that can navigate continued swings in a highly uncertain oil market. The all-stock deal, which includes a C$3.8 billion purchase price and assumption of C$5.1 billion in net debt, brings the wave of consolidation building in the US north of the border (OD Oct.20'20). Cenovus is paying a roughly 20% premium for the privilege. Cenovus and Husky: Combined Portfolio Cenovus Husky Pro Forma Enterprise Value (C$ billion) $12.3 $10.6 $22.8 Oil Sands Production (b/d) 380 120 500 Total Production (boe/d) 475 275 750 Refining and Upgrading Capacity ('000 b/d) 250 410 660 Pipeline Capacity ('000 b/d) 135 130 265 Crude Storage Capacity (million bbl) 10 6 16 Proved + Probable Reserves (million boe) 7,000 2,000 9,000 Source: Company reports, Yahoo Finance

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