Cenovus announces closing of MEG Energy acquisition

Executive Summary

• Cenovus 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 is ~​$800 M.
• The deal will be reflected in Cenovus’s 2026 budget guidance (to be released Dec 11, 2025) and MEG shares will delist from the TSX on Nov 14, 2025.

Key Details

• Cash Paid – Open Market: $752 million for 25.0 million MEG shares acquired via open‑market transactions.
• Cash Paid – Other Shareholders: $3.44 billion cash paid to MEG shareholders other than Cenovus under the acquisition agreement.
• Equity Issuance: 143.9 million Cenovus common shares issued to those same MEG shareholders as part of consideration.
• Net Debt Assumed: Approximately $800 million of estimated net debt transferred to Cenovus at closing.
• Production Impact: Adds ~110,000 bbl/d of low‑cost, long‑life oil sands production to Cenovus’s portfolio, adjacent to the Christina Lake asset.
• Guidance Update: Cenovus will issue updated 2026 budget guidance on December 11, 2025 to incorporate the MEG acquisition effects.
• Delisting: MEG common shares are 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 addition of MEG assets and people will have an immediate positive impact on Cenovus,” said Jon McKenzie, Cenovus President & Chief Executive Officer. “The strategic fit is exceptional… the synergies we have identified will create significant value over both the short and long term.”