Cenovus and Husky Combine to Create Integrated Energy Leader

Cenovus Energy Inc. and Husky Energy Inc. announced a transaction to create a new integrated Canadian oil and natural gas company with an upstream and downstream portfolio that is expected to provide enhanced free funds flow generation and superior return opportunities for investors.

A combination of complementary businesses will result in $1.2 billion in cost and capital synergies, enhance free funds flow generation and support investment-grade credit profile.

The companies have entered into a definitive arrangement agreement under which Cenovus and Husky will combine in an all-stock transaction valued at $23.6 billion, inclusive of debt. The combined company will operate as Cenovus Energy Inc. and remain headquartered in Calgary, Alberta. The transaction has been unanimously approved by the Boards of Directors of Cenovus and Husky and is expected to close in the first quarter of 2021.