Cenovus announces closing of MEG Energy acquisition

Executive Summary

• Cenovus Energy completed its acquisition of MEG Energy, adding approximately 110,000 bbl/d of low‑cost, long‑life oil sands production.
• Total consideration comprised $752 M cash for 25 M MEG shares bought on the open market, $3.44 B cash to other MEG shareholders, and issuance of 143.9 M Cenovus common shares; net debt assumed was ~​$800 M.
• The deal will be reflected in Cenovus’s 2026 budget guidance (to be issued Dec 11, 2025) and MEG shares are slated for delisting on the TSX after market close on Nov 14, 2025.

Key Details

• Cash Paid – Open Market Shares: $752 million for 25.0 million MEG shares acquired via open‑market transactions.
• Cash Paid – Other Shareholders: $3.44 billion paid to MEG shareholders other than Cenovus under the acquisition agreement.
• Equity Issuance: 143.9 million Cenovus common shares issued to the same non‑Cenovus MEG shareholders as part of consideration.
• Net Debt Assumed: Approximately $800 million of estimated net debt transferred to Cenovus at closing.
• Production Impact: Immediate addition of ~110,000 bbl/d of low‑cost, long‑life oil sands production to Cenovus’s portfolio.
• Guidance Update: Cenovus will issue updated 2026 budget guidance on December 11, 2025 to incorporate the MEG acquisition.
• Delisting Schedule: MEG common shares expected to be delisted from the Toronto Stock Exchange at market close on November 14, 2025.
• Strategic Rationale (CEO Quote): “The addition of MEG assets and people will have an immediate positive impact… synergies we have identified will create significant value over both the short and long term.” – Jon McKenzie, President & CEO, Cenovus.

Notable Quotes

“The strategic fit is exceptional, the assets are of the highest quality and the synergies we have identified will create significant value over both the short and long term.” – Jon McKenzie, President & Chief Executive Officer, Cenovus Energy Inc.