COLD LAKE – As of Dec. 16, Cenovus Energy Inc. reached a deal with Strathcona Resources Ltd. to sell its Tucker thermal asset for total cash proceeds of $800 million.
When the deal was first announced by the Calgary-based company, the purchaser was not identified but was revealed a short time later.
“Proceeds from this transaction will further accelerate the company’s reduction of net debt and enhance its capacity to increase shareholder returns,” reads a statement released by Cenovus announcing the multimillion-dollar deal.
Based on information released by the company, the Tucker thermal deal and selling of its assets are related to a debt to asset ratio and the company’s overall stock market value.
“This is yet another example of Cenovus seizing opportunities to generate incremental value for shareholders,” said Alex Pourbaix, Cenovus’s president and chief executive officer.
“With Tucker and the other divestitures announced this year, we have delivered on our asset sales commitment for 2021, positioning the company well to focus on higher-return opportunities in the portfolio and continue increasing returns to shareholders.”
The statement released by Cenovus also notes that along with the Tucker thermal transaction, the company expects to generate almost $2 billion of total proceeds from asset sales announced in 2021.
“The transaction is expected to close in late January, subject to customary closing conditions,” reads a statement provided to Lakeland This Week from a communications representative from Cenovus Energy.
Operations are expected to continue as normal through the transition notes the statement.
However, the company did not provide information on the current number of employees and contractors currently working at the Tucker thermal facility.
“We are not able to provide any other information beyond what is contained in the news release,” it states.