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Cenovus announces amendment to agreement with MEG Energy and voting support agreement with Strathcona Resources Ltd.
CALGARY, Alberta, Oct. 27, 2025 (GLOBE NEWSWIRE) -- Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) to...
About this update from Cenovus Energy Inc.
[{"type":"text","content":"Cenovus announces amendment to agreement with MEG Energy and voting support agreement with Strathcona Resources Ltd.\n\n\n\n CALGARY, Alberta, Oct. 27, 2025 (GLOBE NEWSWIRE) -- Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) today announced that it has entered into a second amending agreement in respect of the arrangement agreement dated August 21, 2025 (as amended, the “Agreement”) to acquire MEG Energy Corp. (TSX: MEG) (“MEG”).\n \n\n Under the terms of the Agreement, each MEG shareholder will now have the option to elect to receive, for each MEG common share, (i) $30.00 in cash; or (ii) 1.255 Cenovus common shares, subject to rounding and pro-ration based on a maximum amount of $3.8 billion in cash and a maximum of 159.6 million Cenovus common shares. The pro-rated consideration represents a mix of 50% cash and 50% Cenovus common shares. On a fully pro-rated basis, the consideration per MEG common share represents approximately $15.00 in cash and 0.6275 of a Cenovus common share.\n \n\n The fully pro-rated consideration for MEG represents a value of approximately $30.00 per MEG share at Cenovus’s closing share price on October 24, 2025.\n \n\n In conjunction with the announcement of the amended terms of the Agreement, Strathcona Resources Ltd. (“Strathcona”) has entered into a voting support agreement with Cenovus under which Strathcona has agreed to vote its common shares of MEG in favour of the MEG transaction. Strathcona's obligations under the voting support agreement will terminate under certain circumstances, including upon completion of or termination of the MEG transaction, or upon termination of the asset sale transaction described below.\n \n\n The special meeting of MEG shareholders remains scheduled for October 30, 2025, at 9:00 a.m. (Calgary Time) and the deadline for submitting proxies remains October 29, 2025, at 9:00 a.m. (Calgary Time).\n \n\n Cenovus also announced today the sale of certain assets to Strathcona for total proceeds of up to $150 million, comprised of $75 million cash paid on closing and up to $75 million in contingent consideration dependent on future commodity prices. These include the Vawn thermal heavy oil asset in Saskatchewan and certain undeveloped lands in western Saskatchewan and Alberta. Production from the asset has averaged approximately 5...