Cenovus sells Marten Hills royalty interest for more than $100 million

CALGARY, Alberta, Might 18, 2021 (GLOBE NEWSWIRE) — Cenovus Power Inc. (TSX: CVE) (NYSE: CVE) has offered its gross overriding royalty (GORR) within the Marten Hills space of Alberta to Topaz Power Corp. for gross money proceeds of $102 million. The sale efficiently closed right now with a Might 1, 2021 efficient date. Cenovus will use the sale proceeds to cut back web debt, per its dedication to make use of non-core asset gross sales to speed up deleveraging to realize the corporate’s interim web debt goal of $10 billion.

“This transaction demonstrates our capacity to strategically determine alternatives in our portfolio to speed up the deleveraging course of,” stated Alex Pourbaix, Cenovus President & Chief Govt Officer. “That is the primary transaction of our broader initiative and we’ll proceed to discover all choices to create worth for Cenovus shareholders and place our steadiness sheet for rising shareholder returns.” 

Cenovus retained the GORR as a part of the sale of its Marten Hills oil property to Headwater Exploration Inc. in December 2020 which additionally included money, frequent shares and buy warrants of Headwater. With the transaction introduced right now, Cenovus has generated incremental worth on the Marten Hills property and continues to take part within the upside improvement potential by means of its 50 million shares and 15 million buy warrants in Headwater. Cenovus stays supportive of Headwater’s early success at Marten Hills.

ADVISORY

Foundation of Presentation
All monetary figures and knowledge have been ready in Canadian {dollars} (which incorporates references to “{dollars}” and “$”), besides the place one other foreign money has been indicated, and in accordance with Worldwide Monetary Reporting Requirements (“IFRS” or “GAAP”) as issued by the Worldwide Accounting Requirements Board. Manufacturing volumes are offered on a earlier than royalties foundation.

Observe Concerning Ahead-looking Data
This information launch incorporates sure forward-looking statements and forward-looking info (collectively known as “forward-looking info”) throughout the that means of relevant securities laws, together with america Non-public Securities Litigation Reform Act of 1995, about our present expectations, estimates and projections concerning the future, based mostly on sure assumptions made by us in mild of our expertise and notion of historic tendencies. Though Cenovus believes that the expectations represented by such forward-looking info are affordable, there might be no assurance that such expectations will show to be appropriate. Readers are cautioned to not place undue reliance on forward-looking info as precise outcomes might differ materially from these expressed or implied. Cenovus undertakes no obligation to replace or revise any forward-looking info besides as required by regulation.

This forward-looking info is recognized by phrases comparable to “obtain”, “dedication”, “proceed”, “place” and “will”, or comparable expressions and contains options of future outcomes, together with statements about: the usage of sale proceeds to cut back debt and obtain the interim web debt goal of $10 billion; creating worth for shareholders; positioning our steadiness sheet to extend shareholder returns; and Cenovus collaborating within the upside improvement potential by means of its fairness curiosity in Headwater.

Growing forward-looking info includes reliance on quite a lot of assumptions and consideration of sure dangers and uncertainties, a few of that are particular to Cenovus and others that apply to the trade usually.

Further details about dangers, assumptions, uncertainties and different components that would trigger Cenovus’s precise outcomes to vary materially from these expressed or implied by its forward-looking statements is contained beneath “Danger Administration and Danger Elements” in Cenovus’s Annual MD&A or Type 40-F for the 12 months ended December 31, 2020 and within the updates within the “Danger Administration and Danger Elements” part of Cenovus’s MD&A for the interval ended March 31, 2021.

Cenovus Power Inc.
Cenovus Power Inc. is an built-in power firm with oil and pure fuel manufacturing operations in Canada and the Asia Pacific area, and upgrading, refining and advertising and marketing operations in Canada and america. The corporate is concentrated on managing its property in a secure, progressive and cost-efficient method, integrating environmental, social and governance concerns into its enterprise plans. Cenovus frequent shares and warrants are listed on the Toronto and New York inventory exchanges, and the corporate’s most popular shares are listed on the Toronto Inventory Alternate. For extra info, go to cenovus.com.

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