The Investor
27 Oct 2025, 19:18
Cenovus Amends MEG Energy Deal, Secures Voting Support from Strathcona Resources
Cenovus Energy Inc. (TSX: CVE, NYSE: CVE) announced an amendment to its agreement to acquire MEG Energy Corp. (TSX: MEG), allowing MEG shareholders to elect to receive either $30.00 in cash or 1.255 Cenovus shares per MEG share, subject to proration. On a fully pro-rated basis, the offer equates to roughly $15.00 in cash and 0.6275 Cenovus shares, representing a total value of about $30.00 per MEG share based on Cenovus’s October 24, 2025 closing price.
Cenovus also entered into a voting support agreement with Strathcona Resources Ltd., which has agreed to vote its MEG shares in favor of the transaction. The MEG shareholder meeting remains set for October 30, 2025.
In a related move, Cenovus will sell certain thermal oil and undeveloped assets to Strathcona for up to $150 million, including $75 million in cash and up to $75 million in contingent payments tied to future commodity prices. The sale, expected to close in Q4 2025, includes the Vawn thermal heavy oil asset in Saskatchewan, which has averaged 5,000 barrels per day of production this year.
Cenovus Energy Inc. (TSX: CVE, NYSE: CVE) announced an amendment to its agreement to acquire MEG Energy Corp. (TSX: MEG), allowing MEG shareholders to elect to receive either $30.00 in cash or 1.255 Cenovus shares per MEG share, subject to proration. On a fully pro-rated basis, the offer equates to roughly $15.00 in cash and 0.6275 Cenovus shares, representing a total value of about $30.00 per MEG share based on Cenovus’s October 24, 2025 closing price.
Cenovus also entered into a voting support agreement with Strathcona Resources Ltd., which has agreed to vote its MEG shares in favor of the transaction. The MEG shareholder meeting remains set for October 30, 2025.
In a related move, Cenovus will sell certain thermal oil and undeveloped assets to Strathcona for up to $150 million, including $75 million in cash and up to $75 million in contingent payments tied to future commodity prices. The sale, expected to close in Q4 2025, includes the Vawn thermal heavy oil asset in Saskatchewan, which has averaged 5,000 barrels per day of production this year.