Cenovus Energy acquires 8.5% stake in MEG Energy

CALGARY - Cenovus Energy Inc. (TSX:CVE) (NYSE:CVE), a prominent player in the Oil, Gas & Consumable Fuels industry with a market capitalization of $31.1 billion, has acquired 21,723,540 common shares of MEG Energy Corp., representing an 8.5% stake in the company, according to a press release issued Tuesday. According to InvestingPro data, Cenovus has demonstrated strong momentum, with a 53% return over the past six months.

The shares were purchased through the Toronto Stock Exchange and other Canadian alternative exchanges since October 8, 2025. Following the acquisition, Cenovus now owns and controls 8.5% of MEG’s 254,378,035 outstanding common shares.

Cenovus stated that the share purchases were made in connection with its previously announced transaction with MEG Energy. The company intends to vote any acquired shares in favor of the transaction, subject to applicable securities laws.

The energy company indicated it may either increase or decrease its ownership stake in MEG common shares depending on market conditions.

Cenovus Energy is an integrated energy company with operations spanning oil and natural gas production in Canada and the Asia Pacific region, as well as upgrading, refining and marketing operations in Canada and the United States. Trading near its 52-week high with a P/E ratio of 17x, the company maintains a "GOOD" financial health score according to InvestingPro’s comprehensive analysis, which offers over 10 additional key insights about the company’s performance and outlook.

The announcement was made in accordance with section 5.4 of National Instrument 62-104 Take-Over Bids and Issuer Bids, according to the press release statement.

In other recent news, Cenovus Energy Inc. has announced significant developments regarding its acquisition of MEG Energy Corp. The company has raised its offer for MEG Energy to approximately $29.80 per share, with the total consideration capped at $3.8 billion in cash and 157.7 million Cenovus shares. This acquisition deal is valued at $7.9 billion, including assumed debt, and offers MEG shareholders options for cash or Cenovus shares, subject to pro-ration. Additionally, Cenovus Energy has agreed to sell its 50% stake in WRB Refining LP to Phillips 66 for $1.4 billion in cash.

In terms of analyst ratings, Raymond James has upgraded Cenovus Energy from Outperform to Strong Buy, citing confidence in the MEG Energy acquisition. The firm also raised its price target to C$32.00. Meanwhile, TD Cowen has reiterated its Buy rating on Cenovus Energy with a price target of C$27.00, noting that the company’s second-quarter results have addressed most investor concerns. These recent developments highlight Cenovus Energy’s strategic moves in the energy sector.

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