Broadens Sanctions On Russia-Led Nord Stream 2 Pipeline, Iraq Sees Oil Prices Recovering In Q2 2021, Russian Lukoil Looks To Boost Its Oil Production In Iraq, Oil Price Crash Crushes New Mexico’s Budget. . Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry. “The diverse portfolio will enable us to deliver stable cash flow through price cycles, while focusing capital on the highest-return assets and opportunities. Both Cenovus Energy and Suncor Energy reported millions of dollars in losses in the second quarter as they throttled back oil production amid a global crude market awash in surplus barrels. "As these companies are desperate for social license, only the very best in my opinion will receive any inkling of support from institutional investors," he said. What synergies forget have with Solar Panels and Wind Tirbines ? Receive our cutting-edge 3-part investor education series for FREE. We will not share your email address.You can unsubscribe at any time. Cenovus and Husky Energy have struck a deal to combine their businesses in an all-stock transaction worth US$17.92 billion (C$23.6 billion). The oilsands company says its loss amounted to 19 cents per share for the period ended June 30, compared with a profit of $1.45 per share or $1.78 billion a year earlier. MA: C$5.51 C$6.42. Majors Oil COs diversify into Renewables ? The industry had not yet recovered from the fallout of the last oil price crash and was struggling with a pipeline shortage that pressured their selling prices when the pandemic came on the scene and pushed a mot of them into negative earnings territory. The combined company will also have an efficient cost structure and ample liquidity.”, More Libyan Oil Set To Return To Market As Factions Sign Ceasefire, Oil Prices Sink Ahead Of Industry Reports, Venezuela Is Buying Iranian Oil With Planes Full Of Gold, Oil Prices Sink On Larger than Expected Crude Build, Church Of England Dumps All ExxonMobil Stock, Surprise Crude Build Sends WTI Prices Down, A Biden Presidency Could End The U.S. Oil Boom, The Big Oil Side Hustle: Where 'Renewable' Money Is Really Going, Why The Elections Aren’t Moving Oil Prices. How Will Exxon’s Big Bet On Oil Play Out? None ! Cenovus says it is cutting its capital spending plan for this year by 32 per cent due to the recent plunge in world oil prices. Merchant of Record: A Media Solutions trading as Oilprice.com, That email address is already in the database. Bushell was surprised Cenovus would acquire Husky given its poorer record on environmental social and governance (ESG) issues. Cenovus reported a fourth-quarter profit of $113 million compared with a loss of nearly $1.36 billion in the same quarter a year earlier. "You will continue to see stock-based deals with skinny premiums as companies scrape together enough accretion and cash flow to survive," said Ryan Bushell, President of Newhaven Asset Management, which holds Canadian Natural Resources shares. The combination has long been an idea that investment bankers pitched, matching Cenovus' Alberta heavy oil production to Husky's Midwest refineries, said Dan Tsubouchi, principal at SAF Group, a firm that invests in energy companies and lends to them. Now: C$4.83 C$5.05. Cenovus and Husky Energy both suffered their fair share of pain as the pandemic added to already considerable woes among Canadian oil producers. Husky's biggest investor, Hong Kong tycoon Li Ka-shing, is committed to being a long-term shareholder in the new company, Husky Chief Executive Rob Peabody said. Cenovus Energy Stock Forecast, Price & News C$4.83-0.24 (-4.73 %) (As of 10/16/2020 12:00 AM ET) Add. Oil Poised To Rebound, But What About The Long Term? Learn how to navigate energy markets. The combined company will produce some 750,000 bpd of oil equivalent daily and operate refining capacity of 660,000 bpd. The company noted that the two expected to save $1.2 billion from the tie-up, most of it during the first year after the transaction. The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice. The C$3.8 billion ($2.9 billion) combination announced Sunday, the largest Canadian oil and gas deal in nearly four years based on enterprise value, may pressure peers to get bigger or sell. Alberta energy company Cenovus intends on reclaiming 1,500 abandoned wells by 2030, and hitting net-zero emissions by 2050. The size of the deal includes debt, Cenovus said in a news release. Canada's problems, however, trace to 2014, the previous big price dip, as foreign oil companies have sold assets and investors withdrawn from a sector dogged by high costs and emissions. C$4.82. "We're like the dog that caught the car," he said. Such deals represent a need for greater access to capital, as lenders have little appetite to fund mid-sized producers, Bushell said. News. Crude-by-rail shipments by oilsands producer Cenovus Energy Inc. jumped to 120,000 barrels per day in January from 106,000 in December.

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