Cenovus announces agreement to acquire MEG Energy

Cenovus Energy Inc.

CALGARY, Alberta, Aug. 22, 2025 (GLOBE NEWSWIRE) -- Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) today announced that it has entered into a definitive arrangement agreement to acquire MEG Energy Corp. (TSX: MEG) (“MEG”) in a cash and stock transaction valued at $7.9 billion, inclusive of assumed debt.

Under the terms of the agreement, Cenovus will acquire all of the issued and outstanding common shares of MEG for $27.25 per share, which will be paid 75% in cash and 25% in Cenovus common shares. Each MEG shareholder will have the option to elect to receive, for each MEG common share (i) $27.25 in cash; or (ii) 1.325 Cenovus common shares, subject to pro-ration based on a maximum amount of $5.2 billion in cash and a maximum of 84.3 million Cenovus common shares. On a fully pro-rated basis, the consideration per MEG common share represents approximately $20.44 in cash and 0.33125 of a Cenovus common share.

Transaction Highlights

Reinforces Cenovus’s position as the pre-eminent SAGD oil sands producer – The acquisition brings together two leading SAGD oil sands producers with combined oil sands production of over 720,000 barrels per day (bbls/d), the lowest steam-to-oil ratio and the largest land base in the best quality resource area in the basin. Exceptional asset fit – Consolidates adjacent, fully contiguous and highly complementary assets at Christina Lake, enabling integrated development of the region and unlocking significantly accelerated access to previously stranded resource. Over $400 million of annual synergies – Cenovus expects to realize approximately $150 million of near-term annual synergies, growing to over $400 million per year in 2028 and beyond. This includes corporate and commercial synergies as well as development and operating synergies which leverage both companies’ technical expertise and the ability to integrate future development across the Christina Lake region. Immediately accretive – The acquisition is expected to be immediately accretive to adjusted funds flow per share and free funds flow per share. Maintains strong balance sheet and continued focus on shareholder returns – The transaction has been structured to preserve Cenovus’s strong balance sheet and investment grade credit ratings, with expected pro forma net debt of