Canada: Cenovus sells Tucker for $800 million

The company will use the proceeds of the transaction to accelerate net debt reduction and support increasing shareholder returns.

Cenovus Energy Inc. announced it has reached an agreement to sell its Tucker thermal asset for total cash proceeds of $800 million. Profit from the transaction will further accelerate the company’s reduction of net debt as well as enhancing its capacity to increase shareholder returns.

“This is yet another example of Cenovus seizing opportunities to generate incremental value for shareholders. With Tucker and the other divestitures announced this year, we have delivered on our asset sales commitment for 2021, positioning the company well to focus on higher-return opportunities in the portfolio and continue increasing returns to shareholders,” said Alex Pourbaix, Cenovus’s President & Chief Executive Officer.

With this recent transaction, the company is expecting to amount almost $2 billion of total proceeds from the sales of assets announced previously. The purchase is expected to close in late January and is currently subject to customary closing conditions. Tucker, an Alberta-located company, is expecting an average production between 18,000 and 21,000 barrels per day for 2022.