Past year: ▲ 84%(23.22 – 44.52 CAD)
Each one in plain English, with the numbers worked through for a shareholder.
30 July 2020capital raising announcement● Neutral
Cenovus closed a US$1 billion public offering of 5.375% senior unsecured notes due 2025, issued under its September 19, 2019 shelf prospectus. The proceeds will repay short-term debt under its $4.5 billion committed credit facility and other short-term debt, so this replaces bank borrowing with longer-dated notes rather than adding net new debt (inference). The risk section mentions the coronavirus pandemic and depressed oil prices.
14 July 2020regulatory community update● Neutral
Cenovus published its 2019 ESG report, describing the work behind the ESG targets announced January 9, 2020 and the $50 million Indigenous housing program announced January 30, 2020. It contains no financial or transaction news.
30 Jan 2020regulatory community update● Neutral
Cenovus committed $10 million a year for five years to build about 200 homes in six First Nations and Métis communities near its Christina Lake and Foster Creek oil sands operations, with a possible extension to 10 years and $100 million total. It is the largest community investment in the company's history, and has no stated effect on the company's financial position.
2 Oct 2019capital raising announcement▲ GoodMajor
At its Investor Day, Cenovus set a five-year plan through 2024 with about $11 billion of cumulative free funds flow (at mid-cycle WTI of US$57-60), 2-3% yearly production growth to about 550,000 BOE/d, and a 25% dividend increase to $0.0625 per share for Q4 2019, payable Dec 31, 2019. It lowered 2019 capital guidance to $1.1-1.2 billion and says it still aims for a $5 billion net debt target, which it believes is achievable in 12 to 18 months. After that, it says it would consider share repurchases, possibly including a monetization of the Cenovus shares ConocoPhillips holds. This follows through on the 2017 promise to consider dividend growth and buybacks once debt came down, though the debt target is not yet reached.
24 July 2019regulatory community update● Neutral
Cenovus published its 2018 environmental, social and governance report. It cites improvements such as the lowest-ever injury rate, 64% fewer spills and 30% lower sulphur dioxide emissions versus 2017, partly credited to the sale of the legacy conventional assets in 2017 and early 2018. It contains no financial or deal news.
9 Aug 2018asset acquisition disposition▲ GoodMajor
Cenovus agreed to sell the general partnership holding its Pipestone and Wembley natural gas and liquids business in northwestern Alberta, including a 39% operated interest in the Wembley gas plant, for C$625 million cash, expected to close in Q3 2018. It produced about 8,800 BOE/d on average in the first half of 2018, 55% natural gas. Proceeds will be used to further reduce debt. Cenovus says it is evaluating and marketing other non-core Deep Basin assets for sale, so this is part of trimming the Deep Basin position it bought from ConocoPhillips.
21 Mar 2018business combination● NeutralMajor
Cenovus filed its 2017 annual report. The CEO letter says the ConocoPhillips acquisition nearly doubled production and reserves, but the share price fell more than 40% in 2017, and results have lagged peers. The C$3.6 billion bridge facility was repaid and retired before the end of 2017 using legacy asset sale proceeds, resolving that thread. Alex Pourbaix became CEO in November 2017 after Brian Ferguson retired. He kept the 2018 capital budget at 2017 levels, cut staff by about 15%, and moved the goal of cutting at least $1 billion of cumulative costs to the end of 2019 (previously 2020). Christina Lake phase G first oil is expected in the second half of 2019, and 2018 Deep Basin development has been scaled back because of weak gas prices and the focus on debt paydown. The sale closings for Suffield, Palliser and Weyburn are not stated in the visible text, though the bridge retirement implies proceeds came in (inference).
2 Feb 2018business combination● Neutral
Cenovus refiled its report on the ConocoPhillips acquisition as an amended and restated version (dated December 8, 2017). The change only incorporates by reference certain oil and gas information from the April 5, 2017 material change report and updates related cross-references. It says it does not change other information from the July 2017 original or reflect later events, so it carries no new deal terms (the figures restated, such as about US$10.6 billion cash and 208 million shares, are the same as before).
14 Nov 2017asset acquisition disposition▲ GoodMajor
Cenovus agreed to sell its majority interest in the Weyburn carbon-dioxide enhanced oil recovery operation in Saskatchewan for C$940 million cash, expected to close in Q4 2017. The asset produces about 11,500 BOE/d net, all liquids. The release says Weyburn plus the Pelican Lake, Palliser and Suffield sales will position Cenovus to retire the entire C$3.6 billion bridge facility by end of 2017. This is the Weyburn sale agreement that earlier filings said was expected in Q4. Alex Pourbaix is now named President & CEO, replacing Brian Ferguson as CEO in the running context.
8 Nov 2017debt financing● Neutral
Cenovus filed the registration rights agreement (dated April 7, 2017) for the US$2.9 billion of notes issued to help fund the ConocoPhillips purchase (US$1.2B 4.25% due 2027, US$700M 5.25% due 2037, US$1.0B 5.40% due 2047). It requires Cenovus to offer holders registered notes in exchange for the privately placed ones, filing the registration statement within 325 days of issue. The filing also lists a letter of transmittal and a notice of guaranteed delivery, which are exchange offer forms. It adds no new borrowing and changes no terms; it is paperwork for swapping the April 2017 notes into registered form.
19 Oct 2017asset acquisition disposition▲ GoodMajor
Cenovus agreed to sell its Palliser assets in southeastern Alberta to Torxen Energy and Schlumberger for C$1.3 billion cash, expected to close in Q4 2017. The Pelican Lake sale closed Sept 29, 2017, and its proceeds retired the first tranche of the C$3.6 billion bridge facility and paid down part of the second. Palliser and Suffield proceeds will go against the remaining balance. Weyburn is still expected to reach a sale agreement in Q4, and the C$4-5 billion target for announced sales by year-end is reaffirmed.
25 Sept 2017asset acquisition disposition▲ GoodMajor
Cenovus agreed to sell its Suffield oil and gas operations to International Petroleum Corporation for C$512 million cash, expected to close in Q4 2017. It could also receive up to C$36 million more from a two-year arrangement starting Jan 1, 2018, paid in months when WTI is above US$55 or Henry Hub gas is above US$3.50. Proceeds, with those from Pelican Lake, will reduce the C$3.6 billion bridge facility. Sale agreements for Palliser and Weyburn are expected in Q4 2017.
5 Sept 2017asset acquisition disposition▲ GoodMajor
Cenovus agreed to sell its Pelican Lake heavy oil operations and some miscellaneous northern Alberta assets for C$975 million cash, expected to close by Sept 30, 2017. The money goes against the C$3.6 billion asset-sale bridge facility, with the first tranche to be retired on closing; the other two tranches mature November 2018 and May 2019. This is the first of the legacy conventional sales announced at Investor Day in June.
19 July 2017business combination● NeutralMajor
Cenovus filed the formal report on its ConocoPhillips purchase, which closed May 17, 2017 (effective Jan 1, 2017). It paid about US$10.6 billion cash before adjustments and issued 208 million shares to ConocoPhillips, which now holds more than 10% of the voting rights. The cash was financed by the April share and note sales, C$3.6 billion drawn on the asset-sale bridge facility, US$900 million drawn on the credit facility and cash on hand. A five-year contingent payment deal also requires Cenovus to pay ConocoPhillips C$6 million times the amount by which the quarterly average WCS price exceeds C$52/bbl, with no cap. This fills in the price and share terms that were missing from the earlier closing filing.
20 June 2017asset acquisition disposition● NeutralMajor
At its Investor Day, Cenovus set a five-year plan targeting 14% annual free funds flow growth through 2021 (at US$55 WTI) and said it is targeting $4-5 billion of announced asset sale agreements by end of 2017, expected to more than cover the $3.6 billion asset-sale bridge facility used for the ConocoPhillips deal. It aims to sell its whole legacy conventional portfolio (Pelican Lake and Suffield sales already underway; Palliser and Weyburn being prepared), which together produce about 112,000 BOE/d in 2017. Debt reduction is called the top priority, with dividend growth and buybacks to be considered only after sales and deleveraging; it also raised its hedging limit to 75% of forecast crude volumes. Christina Lake phase G is expected to start in 2019.
18 May 2017business combination● NeutralMajor
Cenovus announced it closed its purchase of Western Canada assets from ConocoPhillips (the filing's news release is dated May 17, 2017), resolving the deal financed by the April 2017 notes and share sale. The filing's exhibits include an amending agreement under which US$300 million is held in escrow and a further US$300 million interim adjustment is deducted from the closing payment over environmental defects the buyer flagged (claimed at US$263.9 million), plus an investor agreement and registration rights agreement effective May 17, 2017. The visible text does not show the purchase price or the terms of the investor and registration rights agreements, and the document is truncated.
6 Apr 2017capital raising announcement● NeutralMajor
Cenovus closed a bought-deal sale of 187.5 million common shares at $16.00 each, raising $3.0 billion, to fund part of the cash price for the ConocoPhillips Western Canada asset purchase. If the purchase does not complete, it may use the money for debt reduction, growth, capital spending, buybacks or general purposes. Existing shareholders are diluted by the new shares (inference from the share issue; total shares outstanding not stated in the filing).
5 Apr 2017debt financing● NeutralMajor
Cenovus priced a US$2.9 billion senior note offering (US$1.2B 4.25% due 2027, US$700M 5.25% due 2037, US$1.0B 5.40% due 2047) to help pay for buying assets in Western Canada from ConocoPhillips, including ConocoPhillips' 50% of the FCCL oil sands partnership and most of its Deep Basin assets. This ends the 50/50 partnership structure if the deal closes (expected Q2 2017). Proceeds go into escrow and the notes must be redeemed at 101% if the acquisition does not close by March 22, 2018. The offering was expected to close around April 7, 2017.
30 June 2015asset acquisition disposition▲ GoodMajor
Cenovus agreed to sell Heritage Royalty Limited Partnership, its wholly-owned royalty and mineral-rights subsidiary, to Ontario Teachers' Pension Plan for about $3.3 billion cash. The company says this strengthens its balance sheet (pro forma cash of $5.1 billion, or $6.16 per share, at end of Q1 2015); closing is expected by end of July 2015, subject to conditions, and it will explain use of the proceeds once the deal closes. Cenovus keeps leases on its own working-interest production on these lands plus an option on more than 800,000 acres. Pro forma production falls from 295,000 to 287,200 BOE/d.
3 Mar 2015capital raising announcement● NeutralMajor
Cenovus closed a bought-deal share sale of 67.5 million common shares at $22.25 each, raising about $1.5 billion. It plans to use the proceeds to partly fund its previously announced $1.8-2.0 billion 2015 capital program, repay commercial paper as it matures, and for general corporate purposes. Existing shareholders are diluted by the new shares (inference from the share issue; the filing does not give total shares outstanding).
What it means for a shareholder
67.5m new shares at C$22.25 to raise about C$1.50bn. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
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15 Aug 2013capital raising announcement● NeutralMajor
Cenovus closed a US$800 million bond sale (US$450 million 3.8% notes due 2023 and US$350 million 5.2% notes due 2043). The proceeds will partly fund redeeming its US$800 million 4.5% notes due 2014, which were the notes issued in September 2009 and covered by the 2010 exchange offer; redemption is payable September 16, 2013. This swaps near-term debt for longer-dated debt.
12 June 2013asset acquisition disposition● NeutralMajor
Cenovus agreed to sell its Shaunavon tight oil asset in southern Saskatchewan to Surge Energy for $240 million cash, expected to close by mid-July 2013. The asset was producing about 3,600 barrels a day in May 2013. It was one of two assets (Shaunavon and Bakken) put up for sale after a portfolio review, and the Bakken asset remains on the market.
17 Aug 2012capital raising announcement● NeutralMajor
Cenovus completed a US$1.25 billion public bond sale: US$500 million of 3% notes due August 15, 2022 and US$750 million of 4.45% notes due September 15, 2042, issued under its June 6, 2012 shelf prospectus. The CFO said the offering supports its financial position and flexibility as it executes its growth plan. The filing does not state a use of proceeds.
31 May 2011regulatory community update● Neutral
Cenovus is investing $6.3 million through its Environmental Opportunity Fund: $2.5 million in Saltworks Technologies (water desalination) and $3.8 million in General Fusion (fusion energy technology). It committed about $16 million to the fund from 2003 to 2010 and has budgeted $10 million for 2011. These are small relative to the company's size.
10 Jan 2011business combination● Neutral
Effective January 1, 2011, Cenovus merged its subsidiary Cenovus Marketing Holdings Ltd. into itself under a court-approved plan of arrangement. The subsidiary's legal existence ended and its property became Cenovus Energy's; no new securities were issued and the parent's stated capital is unchanged. This is an internal tidy-up with no change to shareholders' holdings.
20 Sept 2010regulatory community update▲ GoodMajor
Alberta's regulator (ERCB) approved three Foster Creek expansion phases (F, G, H), each designed to add 30,000 barrels a day, lifting capacity from 120,000 to 210,000 barrels a day. Phase F is expected to start production in 2014 and the other two in 2016-2017. The next step is endorsement from the Foster Creek/Christina Lake partnership with ConocoPhillips, in which Cenovus holds 50%. The filing also gives timing for Christina Lake phases C (second half of 2011) and D (2013), and says an application for Narrows Lake is with regulators.
29 June 2010debt financing● Neutral
Cenovus pushed back the deadline of its offer to swap privately issued US dollar notes (4.50% due 2014, 5.70% due 2019, 6.75% due 2039) for identical SEC-registered ones, from June 28 to June 30, 2010. By June 28, about US$799.9 million of the US$800 million 4.50% notes, US$1.2995 billion of the US$1.3 billion 5.70% notes and all US$1.4 billion of the 6.75% notes had been tendered; the extension was to give time for the rest of the 4.50% and 5.70% notes. The filing describes a swap of existing notes for registered ones, not new borrowing.
