Latest news with #Cenovus Energy
Yahoo
5 days ago
- Business
- Yahoo
Cenovus & Indigenous Partners Consider Joint Bid for MEG Energy
Cenovus Energy CVE is in advanced discussions with a coalition of Canadian Indigenous groups to join forces in acquiring oil sands producer MEG Energy, according to Bloomberg sources. According to the proposed arrangement, First Nations and Métis communities — including Chipewyan Prairie First Nation and Heart Lake First Nation — will have a C$2 billion ($1.45 billion) equity stake, supported by federal and provincial financing, while Cenovus will hold the remaining shares. CVE Eyes Strategic Fit With MEG's Christina Lake Asset The talks followed as MEG fend off a hostile C$6 billion offer from Strathcona Resources, which the company's board urged shareholders to reject in June. Instead, MEG launched a strategic review to explore alternatives. CVE Stresses Importance of Canadian Crude for US For Cenovus, MEG's 100%-owned Christina Lake oil sands operation offers a natural fit, sitting adjacent to its own Christina Lake site in Alberta. Cenovus recently resumed operations there after wildfire-related downtime in June. Merging the two sites would form a leading SAGD corridor in the oil sands, offering cost savings and supporting Cenovus' long-term production growth. The bid comes as MEG resists a hostile C$6 billion offer from Strathcona Resources, which its board urged shareholders to reject in June while initiating a strategic review. MEG's 100%-owned Christina Lake oil sands operation sits adjacent to Cenovus' own Christina Lake site, offering the potential for operating synergies, lower costs, and a stronger long-term oil sands production profile. The combined footprint would consolidate one of Alberta's most prolific steam-assisted gravity drainage (SAGD) corridors. Indigenous Stake May Ease CVE's Approval Process The proposed Indigenous ownership aligns with Ottawa's push for greater equity participation in resource projects. If successful, it would represent one of the largest Indigenous-backed energy transactions in Canada, while potentially easing regulatory approvals. Cenovus CEO Jon McKenzie has highlighted Canada's vital role in supplying U.S. energy, underscoring the deeply interconnected crude trade between the two countries. CVE's Timing May Be Key Whether the joint approach can outmaneuver Strathcona's hostile bid could depend on how quickly Cenovus and its Indigenous partners can formalize terms. It may also depend on how MEG's board views the strategic and political benefits of Indigenous participation paired with Cenovus' scale of operation. CVE's Zacks Rank and Key Picks CVE currently carries a Zacks Rank #3 (Hold). Investors interested in the energy sector may look at a couple of better-ranked stocks like Antero Midstream Corporation AM, Flotek Industries, Inc. FTK and Enbridge Inc. ENB, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream's higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns. AM's earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 1.13%. Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. In the oil and gas sector, Flotek serves major and independent energy producers and oilfield service companies, both domestic and international. Flotek's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 65.2%. The Zacks Consensus Estimate for FTK's 2025 earnings indicates 94% year-over-year growth. Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts that act as a protection against big oil price swings or changes in shipment. ENB's earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 5.61%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Antero Midstream Corporation (AM) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report Cenovus Energy Inc (CVE) : Free Stock Analysis Report Flotek Industries, Inc. (FTK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Cenovus and Indigenous Partners Eye Joint MEG Energy Takeover
Cenovus Energy Inc. is in discussions with a coalition of Indigenous groups in Canada to jointly acquire MEG Energy Corp., an oil sands producer currently fending off an unsolicited takeover bid. Bloomberg notes that the group — which includes Chipewyan Prairie First Nation and Heart Lake First Nation — is exploring a C$2 billion ($1.45 billion) stake in MEG, backed by potential federal and provincial financing. Cenovus would acquire the remaining shares, people familiar with the talks said. A joint offer could come as soon as September, though negotiations could still collapse. Neither Cenovus, MEG, nor the Indigenous groups responded to requests for comment. Natural Resources Canada declined to weigh in, and the Alberta Indigenous Opportunities Corp., which finances Indigenous energy investments, did not respond. If completed, the deal would mark the first large, direct Indigenous ownership stake in an oil sands producer, uniting two Calgary-based operators in Alberta's oil-rich northeast. MEG's Christina Lake project spans 200 square kilometres and is approved to produce up to 210,000 barrels per day. MEG became a takeover target in May when Strathcona Resources Ltd., led by tycoon Adam Waterous, launched an unsolicited cash-and-stock bid valuing the company at C$6 billion after building a 9.2% stake. MEG's board urged shareholders to reject the C$23.27-per-share offer as inadequate and began a strategic review to seek better options. Shares recently traded at C$25.85, suggesting investors anticipate a higher bid. For Alberta's First Nations, the bid aligns with a growing push to own major energy infrastructure — from pipelines to storage facilities — to secure long-term revenue and greater control over local projects. Energy companies have increasingly sought such partnerships to strengthen community relations and avoid environmental or legal conflicts. Cenovus, Canada's third-largest crude producer, operates near MEG's Christina Lake site. The company produced about 800,000 barrels of oil equivalent per day in 2023, primarily bitumen. The Financial Post previously reported that Cenovus was preparing a bid for MEG. Read this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
6 days ago
- Business
- Bloomberg
Cenovus Said to Be in Talks With Indigenous Groups for MEG Bid
Cenovus Energy Inc. is in talks with Indigenous groups in Canada to jointly buy MEG Energy Corp., an oil sands producer that faces an unsolicited $4 billion takeover bid from a Canadian oil tycoon. A group of First Nations and Metis communities including Chipewyan Prairie First Nation and Heart Lake First Nation are in talks with Cenovus about taking a C$2 billion ($1.45 billion) stake in MEG, according to people familiar with the discussions. The Indigenous stake would be backed by financial support from the federal and provincial governments, while Cenovus would bid for the rest, the people said.
