The merger between Husky Energy and Cenovus Energy has been completed.
Both companies announced the all-stock transaction closed on January 4 with Husky common shares being delisted at the Toronto Stock Exchange (TSX) at the market closing on January 5. Cenovus warrants and preferred shares are expected to start trading on the TSX and the New York Stock Exchange on January 6.
The merger was announced on October 25 with Husky shareholders approving the transaction on December 15. The combined company will continue under the Cenovus Energy name and remain headquartered in Calgary.
Cenovus President and CEO Alex Pourbaix says it’s an exciting day for the company as they become a more fully integrated oil and gas company better positioned to become an energy leader in the future.
“With the closing of this transaction, we will focus on safely and efficiently integrating the assets and teams of these two great companies while working to realize the $1.2 billion in synergies we’ve identified. These cost and capital efficiencies, combined with our strong portfolio of well-matched upstream production, midstream and downstream assets as well as improved financial strength, are expected to generate strong value for our shareholders.”
Cenovus notes they are now Canada’s third-largest crude oil and natural gas producer with about 750,000 barrels of oil equivalent per day production. They also say they are the second-largest Canadian-based refiner and upgrader with a capacity of about 660,000 bbls/d.
“I want to thank and congratulate everyone at Cenovus and Husky for their dedication and hard work in bringing this transaction to a successful conclusion. This is truly one of the most significant developments in the history of our two companies, and in the history of the Canadian energy industry, for that matter.”
The company will be providing more details about its future plans in the release of the 2021 capital budget in late January. Fourth-quarter and year-end financial and operating reports for both Cenovus and Husky are scheduled to release in mid-February.
Written by Nikita Ganovicheff, MyLloydminsterNow.com