Cenovus to buy Athabasca Oil in $5.7-billion cash-and-stock deal

TD Securities reaffirmed its Buy rating for Cenovus Energy (CVE:CA) with a C$49.00 price target. The company agreed to acquire Athabasca Oil in a cash-and-share deal, pending approvals. Investors will monitor integration, funding, and synergies, with oil prices and debt reduction affecting value creation.

TD Cowen downgraded Athabasca Oil to Sell with a C$12 target, citing Cenovus' proposed acquisition as attractive. The analyst believes Cenovus is the best potential buyer, with a $200M termination fee providing deal protection. Athabasca's shares rose 2.1% on the news.

Cenovus Energy (TSX: CVE, NYSE: CVE) has agreed to acquire Athabasca Oil (TSX: ATH) in a $5.7B cash and stock deal. The transaction adds 45 MBOE/d to Cenovus's production and includes $85M in annual synergies. Cenovus aims to close the deal in December 2026, subject to regulatory and shareholder approvals.

National Bank Financial analyst Travis Wood commented on Cenovus Energy's $5.7B takeover of Athabasca Oil, noting the valuation is high but consistent with past deals. Wood maintained an 'outperform' rating on Cenovus (CVE) but lowered his target to $57 from $60. Other analysts also revised targets. TD Cowen recommended Athabasca (ATH) shareholders tender, with a target of $12.

Cenovus Energy (CVE) will acquire Athabasca Oil (ATH) in a C$5.7bn deal, offering ATH shareholders C$12 per share, a 14% premium. The transaction, approved by both boards, includes cash and stock options. Cenovus aims to add 45,000 boepd to its portfolio and expects C$85m in annual synergies. Completion is expected by December 2026, subject to regulatory approval and shareholder votes.

Cenovus Energy (CVE) is acquiring Athabasca Oil (ATH) for $5.7B in cash and stock, aiming to boost oilsands production to 115,000 barrels per day by 2032. The deal follows recent government policy shifts supporting the sector. Athabasca shares rose 13.5%, while Cenovus fell 3%.