Cenovus Energy acquires additional MEG Energy shares, now holds 9.8%

CALGARY - Cenovus Energy Inc. (TSX:CVE) (NYSE:CVE), currently trading near its 52-week high at $17.24 and commanding a market capitalization of $31 billion, has acquired an additional 3,276,460 common shares of MEG Energy Corp. through the Toronto Stock Exchange and other Canadian trading venues, according to a press release issued Wednesday.

Following this acquisition, Cenovus now owns 25,000,000 MEG common shares, representing 9.8% of MEG’s 254,378,035 outstanding shares. The company has accumulated its entire stake since October 8, 2025. InvestingPro data shows Cenovus has demonstrated strong momentum, with a remarkable 55% price return over the past six months.

The share purchases support Cenovus’s previously announced transaction with MEG Energy. Cenovus stated it intends to vote any acquired shares in favor of the transaction, subject to applicable securities laws.

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

Cenovus Energy is an integrated energy company with oil and natural gas operations in Canada and the Asia Pacific region, as well as upgrading, refining and marketing operations in Canada and the United States.

The announcement comes as part of Cenovus’s ongoing strategic activities in the Canadian energy sector. The company did not disclose the financial terms of the share acquisitions in its statement.

In other recent news, Cenovus Energy has made significant moves in the market, starting with its acquisition of an 8.5% stake in MEG Energy. This acquisition involved purchasing over 21 million common shares of MEG Energy. Furthermore, Cenovus Energy has entered into a definitive agreement to fully acquire MEG Energy in a deal valued at $7.9 billion, which includes assumed debt. This transaction offers MEG shareholders $27.25 per share, with a payment structure of 75% cash and 25% Cenovus shares, although shareholders have the option to choose a full cash payment or Cenovus shares, subject to pro-ration.

Additionally, Cenovus has raised its offer for MEG Energy to $29.80 per share, up from the original proposal, with a total consideration capped at $3.8 billion in cash and 157.7 million Cenovus shares. In another strategic move, Cenovus Energy has agreed to sell its 50% stake in WRB Refining LP to Phillips 66 for $1.4 billion in cash. This sale includes the Wood River and Borger Refineries, which have a combined crude throughput capacity of 495,000 barrels per day.

In light of these developments, Raymond James has upgraded Cenovus Energy’s stock rating to Strong Buy, reflecting confidence in the company’s acquisition strategy. The firm also raised its price target for Cenovus Energy, signaling optimism about the company’s future performance. These recent activities highlight Cenovus Energy’s strategic positioning in the energy sector.

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