Latest news with #StrathconaResources
Yahoo
25-07-2025
- Business
- Yahoo
Cenovus floated as potential competing bidder for hostile takeover target MEG Energy
CALGARY — Oilsands giant Cenovus Energy Corp. has been cited by industry watchers as one of the potential competing bidders for MEG Energy Corp., which has spurned an unsolicited offer from Strathcona Resources Ltd. and launched a formal review of alternative options. MEG and Cenovus have neighbouring flagship oilsands projects south of Fort McMurray, Alta., at Christina Lake that use steam wells to draw the bitumen from underground. So from an operational perspective, it would make sense for Cenovus to want to further scale up and capture cost-savings and efficiencies, said Dane Gregoris, managing director of Enverus's oil and gas research group. But whether or not an acquisition would work financially is another matter given relative weakness in Cenovus's stock, he said. Over the past year, Cenovus shares have fallen nearly 30 per cent to trade around the $20 mark. "It's kind of an interesting dynamic. I think in a normal market environment where Cenovus had strong equity currency … they would definitely be the logical buyer. I think it makes it a little more complicated, a little bit more of a wrinkle." Earlier this year, Strathcona offered a combination of 0.62 of one of its own shares and $4.10 in cash for each MEG share it doesn't already own. MEG shares have been trading higher than the implied offer price, suggesting investors think a better bid will emerge. MEG has urged shareholders to reject the bid, in part because it said combining with Strathcona would expose shareholders to inferior assets and capital market risk — assertions the would-be acquirer disputes. The Financial Post, citing unidentified sources, reported earlier this week that MEG has set a Monday deadline for alternative bids and that Cenovus was said to be working on an offer. Cenovus did not reply to a request for comment on Friday. MEG declined to comment. On a call with analysts after the unsolicited bid was announced in May, Strathcona executive chairman Adam Waterous said his company and MEG have assets so complementary they are like "doppelgangers" or "brothers from another mother." Gregoris said operationally, Strathcona is not as compelling a fit as Cenovus would be, though there would be some synergies. Part of Strathcona's pitch is that a combination with MEG would increase its share float, enabling more institutional investors to get in on the stock of the combined company, Gregoris said. In late May, Strathcona announced an equity commitment letter with Waterous Energy Fund, also led by Waterous. The fund owns almost 80 per cent of Strathcona shares, and the new investment is worth about $662 million. MEG has raised concerns over Waterous Energy Fund owning 51 per cent of the combined company post-takeover, but Waterous has said the fund has no intention of selling its stake after a deal is completed. It would be an "unworthy end" if MEG were to finish its more than quarter-century run through a "financial-engineering-styled transaction" at a modest premium, said Kevin Burkett, portfolio manager at Victoria-based Burkett Asset Management, whose firm owns Cenovus shares. "A competing Cenovus bid would underscore just how strategic MEG's contiguous oilsands assets have become in the broader consolidation story," he said. "It isn't just about paying a premium, it's about capturing immediate synergies in production, power and infrastructure that a financial buyer simply can't replicate. A tie-up with Cenovus would signal a new phase of operational consolidation in Alberta where scale and integration, not just capital, drive value." Other potential bidders floated by analysts include Suncor Energy Inc., Imperial Oil Ltd. and Canadian Natural Resources Ltd. This report by The Canadian Press was first published July 25, 2025. Companies in this story: (TSX: MEG) Lauren Krugel, The Canadian Press
Yahoo
24-07-2025
- Business
- Yahoo
Oilsands giant Cenovus Energy said to be preparing competing bid for MEG
Oilsands giant Cenvous Energy Inc. is said to be preparing a bid for MEG Energy Corp., setting up a potential challenge to Strathcona Resources' hostile takeover offer, sources tell the Financial Post. The sources, who have knowledge of the bidding process, said MEG has set a Monday deadline for companies to submit bids to buy the oilsands producer, valued at $6.8 billion on the stock market as of Wednesday's market close. Cenovus is believed to be seeking financing to support the bid, the sources said, but there is no guarantee it will proceed. Cenovus had previously downplayed speculation about a potential acquisition, and did not immediately respond to requests for comment Wednesday. MEG declined to comment. If Cenovus proceeds with a bid, it would represent a significant escalation in the battle for control of MEG, one of Canada's largest pure-play oilsands producers, which kicked off in earnest last May with Strathcona's announcement of a $6-billion cash-and-stock takeover offer. MEG has called Strathcona's unsolicited bid 'inadequate', urging shareholders last June to reject the proposal and launching a strategic review of alternatives, including the invitation of potential rival bids for the company. Earlier this month, Strathcona said in a release that MEG's board has refused to engage. Strathcona's offer remains open until Sept. 15. An analyst at Royal Bank of Canada said in May that Cenovus would be 'the most logical fit' to buy MEG, given that both companies have operations in the same oilsands region in northeastern Alberta, and could cut costs. Cenovus is still carrying debt from previous acquisitions and mergers — including the company's $3.8-billion merger with Husky Energy in 2021 — though analysts have said previously that the company had made progress in deleveraging towards a total net debt target of $4 billion. The company's net debt is estimated to be about $5.96 billion as of June 30, RBC Capital Markets wrote in a research note Tuesday previewing the company's second-quarter earnings and balance sheet. MEG was also the target of a hostile takeover attempt by Husky in 2018. Meg Energy urges shareholders to reject takeover offer by Strathcona Resources Strathcona's hostile bid for MEG Energy called the 'largest investment in the Canadian oilpatch in a decade' • Email: mpotkins@
Bloomberg
21-07-2025
- Business
- Bloomberg
Strathcona Plans Special Dividend If Takeover of Rival MEG Fails
Strathcona Resources Ltd. plans to issue a special dividend and increase the liquidity of shares traded should the company's takeover attempt of MEG Energy Corp. fall through. Buying MEG is not 'Plan A' for Strathcona, chairman Adam Waterous said Monday about the Canadian oil company's C$6.6 billion ($4.4 billion) hostile takeover attempt of the rival oil sands producer. But a failure won't be a major setback, he said.
Cision Canada
21-07-2025
- Business
- Cision Canada
Strathcona Announces Q2 2025 Conference Call
CALGARY, AB, July 21, 2025 /CNW/ - Strathcona Resources Ltd. (" Strathcona" or the " Company") (TSX: SCR) will release its second quarter 2025 financial and operating results after market close on August 7, 2025. Strathcona will host a conference call on August 8, 2025, starting at 9:00AM MT (11:00AM ET), to review the Company's second quarter 2025 results. For those unable to participate in the conference call at the scheduled time, a recording of the conference call will be available for seven days following the call and can be accessed by dialing 1 (888) 660-6345 and entering the conference number 20959. Strathcona Resources Ltd. Strathcona Resources is one of North America's fastest growing oil and gas producers with operations focused on thermal oil, enhanced oil recovery and liquids-rich natural gas. Strathcona is built on an innovative approach to growth achieved through the consolidation and development of long-life oil and gas assets. Strathcona's common shares (symbol SCR) are listed on the Toronto Stock Exchange (TSX). For more information about Strathcona Resources, visit
National Post
27-06-2025
- Business
- National Post
Waterous Energy Fund Announces Purchase of Subscription Receipts of Strathcona Resources Ltd.
Article content Article content CALGARY, Alberta — Waterous Energy Fund Management Corp. (the ' WEF Manager '), in its capacity as manager of Waterous Energy Fund III (Canadian) LP, Waterous Energy Fund III (US) LP, Waterous Energy Fund III (International) LP, Waterous Energy Fund III (Canadian FI) LP and Waterous Energy Fund III (International FI) LP (collectively, the ' WEF Receiptholders ') and as manager of certain other limited partnerships, including but not limited to, Waterous Energy Fund (Canadian) LP, Waterous Energy Fund (US) LP, Waterous Energy Fund (International) LP and Waterous Energy Fund II Aggregator LP (together with the WEF Receiptholders and certain other entities managed by the WEF Manager, the ' WEF Funds '), today announced that on June 27, 2025 the WEF Receiptholders have purchased 21,400,000 subscription receipts (the ' Subscription Receipt ') of Strathcona Resources Ltd. (TSX: SCR) (the ' Issuer '), at a price of $30.92 per Subscription Receipt, for an aggregate purchase price of $661,688,000.00 (the ' Investment '). Immediately prior to the completion of the Investment, the WEF Funds collectively owned an aggregate of 170,536,718 common shares of the Issuer (the ' Common Shares '), representing approximately 79.6% of the issued and outstanding Common Shares. Following the completion of the Investment, the WEF Funds collectively own an aggregate of 170,536,718 Common Shares, representing approximately 79.6% of the issued and outstanding Common Shares, and 21,400,000 Subscription Receipts, representing all of the issued and outstanding Subscription Receipts. Article content The Subscription Receipts were purchased and are being held by the WEF Receiptholders for investment purposes and in connection with the Issuer's proposed acquisition of all of the issued and outstanding common shares of MEG Energy Corp. (TSX: MEG) not already owned by the Issuer or its affiliates, by way of a formal take-over bid (the ' Offer '). The proceeds from the Investment will be used to partially fund the cash consideration payable by the Issuer under the Offer. The completion of the Offer remains subject to the satisfaction of customary conditions, including obtaining all required regulatory and stock exchange approvals. The applicable WEF Funds hold the Common Shares for investment purposes. Article content The WEF Funds may, depending on market and other conditions and subject to applicable securities laws, change their beneficial ownership of the Subscription Receipts and/or the Common Shares, whether in the open market (solely with respect to the Common Shares), by privately negotiated agreements, or otherwise. Any transaction that any WEF Fund may pursue may be made at any time and from time to time without prior notice and will depend on a variety of factors, including, without limitation, the price and availability of the Issuer's securities, subsequent developments affecting the Issuer, its business and prospects, other investment and business opportunities available to the WEF Funds, general industry and economic conditions, the securities markets in general, tax considerations and other factors deemed relevant by the WEF Funds. Notwithstanding the foregoing, the WEF Funds and/or any of their affiliates may take such actions with respect to their investment in the Issuer as they deem appropriate, including developing plans or intentions or taking actions which relate to or would result in one or more of the transactions or matters referred to in paragraphs (a) through (k) of Item 5 of Form 62-103F1 – Required Disclosure Under the Early Warning Requirements. Article content This news release is issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues. The WEF Receiptholders will file an early warning report with the applicable securities commission in each jurisdiction where the Issuer is a reporting issuer and will be available on the SEDAR+ profile of the Issuer at A copy of the early warning report may also be obtained by contacting Waterous Energy Fund's Chief Executive Officer at 403-930-6048 or info@ Article content The head office of the Issuer is located at 1900, 421 – 7th Avenue SW, Calgary, Alberta T2P 4K9. The head office of the WEF Manager and the WEF Funds is located at 600, 301 – 8th Avenue SW, Calgary, Alberta T2P 1C5. Article content Article content Article content Article content Article content
