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CALGARY - Cenovus Energy Inc. (TSX:CVE) (NYSE:CVE), a prominent player in the Oil, Gas & Consumable Fuels industry with a market capitalization of $31.28 billion, announced Wednesday it has amended its agreement to acquire MEG Energy Corp. (TSX:MEG), increasing the value of its offer to approximately $29.80 per MEG share, up $1.32 from the original proposal. According to InvestingPro analysis, Cenovus maintains a GOOD financial health score, positioning it well for this strategic acquisition.
Under the revised terms, MEG shareholders can choose to receive either $29.50 in cash or 1.240 Cenovus common shares for each MEG share, subject to pro-ration. The total consideration is capped at $3.8 billion in cash and 157.7 million Cenovus shares, representing a 50% cash and 50% share mix.
Cenovus described the amended offer as its "best and final" for MEG. The company stated that while it had received support from most MEG shareholders, many preferred greater share consideration to participate in the combined company’s future performance.
"We listened to these comments and have changed the consideration under our offer to a maximum of 50% cash and 50% Cenovus shares, while increasing the aggregate purchase price," said Jon McKenzie, Cenovus President & Chief Executive Officer, according to the press release.
The special meeting of MEG shareholders has been postponed from October 9 to October 22, 2025, to allow shareholders time to consider the new terms.
Cenovus also reported that key regulatory approvals have been received from the Canadian Competition Bureau and the United States Federal Trade Commission.
Separately, Cenovus announced record third-quarter production of approximately 832,000 barrels of oil equivalent per day and record downstream crude throughput of approximately 712,000 barrels per day. These strong operational results complement the company’s robust financial performance, with InvestingPro data showing trailing twelve-month revenue of $38.36 billion and an EBITDA of $6.18 billion. For investors seeking deeper insights, InvestingPro offers 12 additional key tips about Cenovus’s performance and prospects.
The company completed the previously announced sale of its 50% interest in WRB Refining LP to Phillips 66 on October 1, receiving approximately $1.8 billion in proceeds. Net debt at quarter-end was approximately $5.3 billion before the proceeds, or about $3.5 billion after. InvestingPro analysis indicates that Cenovus operates with a moderate level of debt, maintaining a healthy current ratio of 1.32 and a debt-to-equity ratio of 0.36. Based on InvestingPro’s Fair Value analysis, the stock currently appears to be fairly valued in the market.
In September, Cenovus purchased approximately 21.5 million of its common shares for $512 million, bringing total third-quarter share repurchases to approximately 40.4 million shares for $900 million.
In other recent news, Cenovus Energy reported impressive financial results for the second quarter of 2025, with earnings per share reaching $0.33, significantly beating the forecasted $0.09. The company’s revenue also surpassed expectations, coming in at $10.51 billion compared to the anticipated $8.68 billion. In a strategic move, Cenovus Energy announced an agreement to sell its 50% interest in WRB Refining LP to Phillips 66 for $1.4 billion in cash. This transaction includes the Wood River Refinery in Illinois and Borger Refinery in Texas, with a combined throughput capacity of 495,000 barrels per day. Additionally, Cenovus has entered into a definitive agreement to acquire MEG Energy in a $7.9 billion cash-stock deal, including assumed debt. Under this agreement, MEG shareholders can choose to receive either cash or Cenovus shares. TD Cowen has reiterated its Buy rating for Cenovus Energy, setting a price target of C$27.00, citing the company’s strong second-quarter results as a factor. These developments highlight significant strategic and financial activities for Cenovus Energy.
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