Cenovus sells Tucker for $ 800 million
The company will use the proceeds of the transaction to accelerate the reduction of net debt and support increased returns to shareholders.
Cenovus Energy Inc. announced that it has entered into a deal to sell its Tucker thermal asset for total cash proceeds of $ 800 million. The benefits of the transaction will further accelerate the reduction of the company’s net debt and strengthen its ability to increase returns to shareholders.
“This is another example of a cenovus seizing opportunities to generate added value for shareholders. With Tucker and the other divestitures announced this year, we delivered on our asset sale commitment for 2021, positioning the company well to focus on higher yielding opportunities in the portfolio and continue to drive shareholder returns. Said Alex Pourbaix, President and CEO of Cenovus. Chief executive officer.
With this recent transaction, the company expects to achieve nearly $ 2 billion of total proceeds from previously announced asset sales. The purchase is expected to be finalized in late January and is currently subject to customary closing conditions. Tucker, a company located in Alberta, expects average production between 18,000 and 21,000 barrels per day for 2022.