Cenovus agrees to buy Athabasca in C$5.7B deal

Cenovus Energy has agreed to acquire Athabasca Oil in a cash-and-stock transaction valued at about C$5.7 billion, a proposed deal that would add production and long-term oil sands development opportunities but still requires shareholder and regulatory approval. Cenovus expects the transaction to close in December 2026, subject to those approvals and other closing conditions. The agreement values Athabasca shares at about C$12 each. Shareholders can elect to receive cash or Cenovus shares, subject to limits on the total consideration available. The cash portion is capped at about C$4.3 billion, while the offer limits the number of Cenovus shares available. The companies’ boards approved the transaction, according to reports on the agreement, but Athabasca shareholders and regulators have yet to decide. Cenovus says the acquisition would add about 45,000 barrels of oil equivalent per day of production. Athabasca’s thermal oil sands assets currently produce about 40,000 barrels per day, and Cenovus forecasts that output could reach 115,000 barrels per day by 2032. That figure is a company projection, not a production result already achieved.