03-29-2017, 04:15 PM
Cenovus to buy ConocoPhillips' 50% stake in FCCL, other assets for C$17.7B
Mar. 29, 2017 4:25 PM ET|About: Cenovus Energy, Inc. (CVE)|By: Carl Surran, SA News Editor [/url]
Cenovus Energy (NYSE:[url=https://seekingalpha.com/symbol/CVE]CVE) agrees to acquire ConocoPhillips' (NYSE:COP) 50% interest in the Foster Creek Christina Lake partnership, the companies' jointly owned oil sands venture operated by CVE, and the majority of COP's Deep Basin conventional assets in Alberta and British Columbia, for C$17.7B (US$14.1B) in cash and stock.
CVE says the assets have a combined forecast 2017 production of ~298K boe/day, and should result in an 18% increase in 2018 adjusted funds flow per share compared with its original 2018 forecast.
COP also will receive five years of uncapped contingent payments, triggered when Western Canada Select crude prices exceed C$52/bbl.
To help fund the deal, CVE is launching a bought-deal offering to sell 187.5M common shares at C$16/share for ~C$3B in expected gross proceeds; the underwriters will have an over-allotment option to purchase up to an additional 28.125M shares.
CVE -8.2%, COP +6.1% AH.
https://seekingalpha.com/news/3254276-cenovus-buy-conocophillips-50-percent-stake-fccl-assets-c-17_7b
Mar. 29, 2017 4:25 PM ET|About: Cenovus Energy, Inc. (CVE)|By: Carl Surran, SA News Editor [/url]
Cenovus Energy (NYSE:[url=https://seekingalpha.com/symbol/CVE]CVE) agrees to acquire ConocoPhillips' (NYSE:COP) 50% interest in the Foster Creek Christina Lake partnership, the companies' jointly owned oil sands venture operated by CVE, and the majority of COP's Deep Basin conventional assets in Alberta and British Columbia, for C$17.7B (US$14.1B) in cash and stock.
CVE says the assets have a combined forecast 2017 production of ~298K boe/day, and should result in an 18% increase in 2018 adjusted funds flow per share compared with its original 2018 forecast.
COP also will receive five years of uncapped contingent payments, triggered when Western Canada Select crude prices exceed C$52/bbl.
To help fund the deal, CVE is launching a bought-deal offering to sell 187.5M common shares at C$16/share for ~C$3B in expected gross proceeds; the underwriters will have an over-allotment option to purchase up to an additional 28.125M shares.
CVE -8.2%, COP +6.1% AH.
https://seekingalpha.com/news/3254276-cenovus-buy-conocophillips-50-percent-stake-fccl-assets-c-17_7b