Core Viewpoint - MEG Energy shareholders have approved the $8.6 billion takeover by Cenovus Energy, marking a significant shift in Canada's oil sands sector [1]. Group 1: Shareholder Approval - At a special meeting, 86% of MEG shareholders voted in favor of the acquisition, surpassing the two-thirds threshold required [2]. - The approval concludes a lengthy process that began when Strathcona Resources made a hostile bid for MEG, which was rejected by the board [2]. Group 2: Bid Details - Cenovus' initial bid was valued at C$7.9 billion (US$5.7 billion) and was increased to C$8.6 billion (US$6.2 billion) by late October, equating to approximately $29.80 per MEG share, with half in cash and half in Cenovus stock [3]. - MEG shareholders were given the option to choose between cash or shares in the new combined company [3]. Group 3: Regulatory Challenges - The acquisition faced regulatory scrutiny due to a separate transaction involving Cenovus and Strathcona, which delayed the shareholder vote multiple times [4]. - Strathcona, which holds a 14.2% stake in MEG, transitioned from an opponent to a supporter of the Cenovus takeover following the inquiry [4]. Group 4: Final Steps - The remaining steps for the merger include standard closing conditions such as regulatory approvals from Canada's Competition Bureau and Alberta's Energy Regulator, along with final court approval [5]. - These approvals are expected to be formalities, paving the way for the merger to proceed [5]. Group 5: Industry Impact - The merger will create one of North America's largest integrated oil producers, enhancing Cenovus' heavy oil operations in the Christina Lake region and solidifying its position in the Canadian oil sands [6].

Mergers and Acquisitions - MEG Energy shareholders agreed to be acquired by Cenovus Energy [1] - The acquisition followed a dramatic five-month bidding war [1] - Multiple attempts were made to secure enough support for deal approval [1]

Core Insights - Cenovus Energy Inc. reported third-quarter 2025 adjusted earnings per share of 52 cents, exceeding the Zacks Consensus Estimate of 40 cents, and up from 31 cents in the same quarter last year [1][9] - Total quarterly revenues reached $9.58 billion, slightly above the Zacks Consensus Estimate of $9.56 billion, but down from $10.45 billion year-over-year [1][9] Operational Performance - The Oil Sands unit's operating margin was C$2.29 billion, a decrease from C$2.47 billion a year ago, with daily oil sands production increasing by 9.3% to 640.6 thousand barrels [3] - The Conventional unit's operating margin improved significantly to C$41 million from C$12 million year-over-year, with daily production rising to 28 thousand barrels [4] - The Offshore segment's operating margin was C$256 million, slightly up from C$252 million, but daily liquid production fell to 16.1 thousand barrels from 18.9 thousand barrels [5] - Total upstream production for the quarter was 832.9 thousand barrels of oil equivalent per day, compared to 771.3 Mboe/d in the previous year [5] Downstream Performance - The Canadian Manufacturing unit's operating margin increased to C$111 million from C$60 million, processing 105.4 thousand barrels of crude oil per day [6] - The U.S. Refining unit reported an operating margin of C$253 million, a significant recovery from a negative margin of C$383 million in the prior-year quarter, with crude oil processed volumes rising to 605.3 MBbl/D from 543.5 MBbl/D [6][7] Expenses - Transportation and blending expenses decreased to C$2.54 billion from C$2.66 billion year-over-year, while expenses for purchased products fell to C$8 billion from $9.3 billion [8] Capital Investment & Balance Sheet - Cenovus made a total capital investment of C$1.15 billion in the quarter, with cash and cash equivalents of C$1.9 billion and long-term debt of C$7.2 billion as of September 30, 2025 [10] Guidance - The company provided full-year 2025 guidance for total upstream production in the range of 805-825 MBoe/d and updated U.S. downstream throughput guidance to 510-515 MBbl/d, with anticipated capital expenditure between $4.6-$5 billion [11]

Group 1 - MEG Energy shareholders approved a buyout by Cenovus Energy [1]

Core Viewpoint - Cenovus Energy (CVE) is identified as a strong value stock with a Zacks Rank of 1 (Strong Buy) and an "A" grade in the Value category, indicating it is likely undervalued in the current market [4][8]. Valuation Metrics - The Forward P/E ratio of CVE is 12.78, which is lower than the industry average of 14.60. Over the past 52 weeks, CVE's Forward P/E has fluctuated between 6.47 and 15.19, with a median of 10.45 [4]. - CVE's P/B ratio stands at 1.44, compared to the industry's average of 1.57. The P/B ratio has ranged from 0.93 to 1.57 in the past year, with a median of 1.27 [5]. - The P/S ratio for CVE is 0.81, which is lower than the industry average of 1.05. This ratio is favored by value investors as it is less susceptible to manipulation [6]. - CVE has a P/CF ratio of 5.63, which is attractive compared to the industry's average of 5.86. The P/CF ratio has varied from 3.46 to 5.82 over the last 12 months, with a median of 4.49 [7]. Investment Outlook - The combination of strong valuation metrics and a positive earnings outlook suggests that CVE is an impressive value stock at the moment, indicating potential for investment [8].

Group 1 - Cenovus Energy (CVE) reported a significant earnings beat, generating substantial cash flow from operations [2] - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] - The focus is on identifying undervalued and under-followed oil companies, as well as out-of-favor midstream companies that present compelling investment opportunities [2] Group 2 - The analysis includes a comprehensive breakdown of companies' balance sheets, competitive positions, and development prospects [1] - Members of the Oil & Gas Value Research group receive early access to analysis and insights not available on public platforms [1]

Core Insights - Cenovus Energy (CVE) reported a significant earnings beat, generating substantial cash flow from its operations [2] Group 1: Company Analysis - Cenovus Energy is identified as an undervalued player in the oil and gas sector, with a focus on its balance sheet, competitive position, and development prospects [1] - The company operates in a cyclical industry characterized by boom and bust cycles, requiring patience and experience for successful investment [2] Group 2: Investment Community - The investing group Oil & Gas Value Research, led by a retired CPA with an MBA and MA, seeks out under-followed oil companies and midstream companies that present compelling investment opportunities [2] - The group provides an active chat room for investors to discuss recent information and share ideas related to oil and gas investments [2]

Core Viewpoint - Cenovus Energy Inc. is confident in its takeover bid for MEG Energy Corp., despite a recent regulatory inquiry related to a complaint from a former MEG employee holding approximately 4,000 shares [1][2]. Group 1: Takeover Bid Details - 86% of MEG shareholders have voted in favor of the deal or indicated their intention to do so, surpassing the required two-thirds threshold [2]. - The deal, valued at $8.6 billion including assumed debt, is anticipated to close in November [2]. - The acquisition will add 110,000 barrels of daily oilsands production to Cenovus' portfolio, increasing total production to 720,000 barrels of oil equivalent per day (boe/d), with potential growth to 850,000 boe/d by 2028 [5]. Group 2: Competitive Landscape - MEG accepted Cenovus's takeover offer in August after rejecting a hostile bid from Strathcona Resources Ltd., which holds a 14.2% stake in MEG [6]. - Strathcona Resources has since withdrawn from the bidding process and pledged support for Cenovus's offer [6]. Group 3: Financial Performance - Cenovus reported a third-quarter profit of $1.29 billion, an increase from $820 million a year ago, translating to 72 cents per diluted share, up from 42 cents [8]. - Revenue for the quarter was $13.20 billion, down from $13.82 billion in the same quarter last year [9]. - Total upstream production for the quarter was 832,900 boe/d, an increase from 771,300 boe/d in the previous year [9].

Exhibit 99.2 Cenovus Energy Inc. Management's Discussion and Analysis (unaudited) For the Periods Ended September 30, 2025 (Canadian Dollars) MANAGEMENT'S DISCUSSION AND ANALYSIS For the periods ended September 30, 2025 TABLE OF CONTENTS | OVERVIEW OF CENOVUS | 3 | | --- | --- | | QUARTERLY RESULTS OVERVIEW | 4 | | OPERATING AND FINANCIAL RESULTS | 6 | | COMMODITY PRICES UNDERLYING OUR FINANCIAL RESULTS | 11 | | OUTLOOK | 15 | | REPORTABLE SEGMENTS | 17 | | UPSTREAM | 17 | | OIL SANDS | 17 | | CONVENTIONAL ...

Financial Data and Key Metrics Changes - The company generated $3 billion of operating margin and approximately $2.5 billion of adjusted funds flow in the third quarter [11] - Operating margin in the upstream was approximately $2.6 billion, an increase of around $450 million from the second quarter, driven by strong operating performance and higher realized pricing in the oil sands [11] - Net debt at the end of the third quarter was approximately $5.3 billion prior to the receipt of $1.8 billion from the sale of WRB Refining [14] Business Line Data and Key Metrics Changes - Upstream production reached a record high of 833,000 BOE/d, with oil sands assets contributing 643,000 bbl/d [7] - Christina Lake production was 252,000 bbl/d, supported by the ramp-up of volumes from Narrows Lake [7] - Downstream business demonstrated strong performance with an operating margin of $364 million, despite $88 million of inventory holding losses [12] Market Data and Key Metrics Changes - Canadian refining business had a crude throughput of 105,000 barrels per day with a utilization rate of about 98% [10] - U.S. refining delivered record production with crude throughput of 605,000 barrels per day and a utilization rate of 99% [10] - Adjusted market capture for the U.S. refining business was 65% in the quarter, supported by a capture rate of 69% from operated assets [12] Company Strategy and Development Direction - The company is focused on completing the MAG acquisition, which is expected to close in November, and is committed to capturing identified synergies [6] - The sale of WRB Refining allows the company to have full operational control of its downstream business [17] - The company aims to align its strategy and business plans to build on quarter-over-quarter growth and value [17] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as an inflection point where investments in people, assets, and business growth will start to yield results [6] - The company is optimistic about sustaining high production levels in the coming quarters and is focused on cost control and operational efficiency [11][12] - Management expressed confidence in the strength of the balance sheet and the ability to support near-term growth plans [15] Other Important Information - The company completed significant work at the West White Rose project, including subsea connections and turnaround of the Sea Rose FPSO [4] - The company expects to safely ramp up production at Rush Lake prior to the end of the year, subject to regulatory approval [9] - The company plans to return 100% of excess free cash flow to shareholders, primarily through share repurchases [36] Q&A Session Summary Question: Thoughts on asset sale potential in the context of a more levered balance sheet post-MAG deal - Management is comfortable with the level of debt taken on for the MAG transaction and does not see an urgent need for asset sales [22] Question: U.S. downstream setup for Q4 and market capture impact from Wood River Border assets - Management noted that market capture was higher in operated assets and emphasized ongoing focus on improving market capture [26] Question: Flexibility in product slate with the fully operated portfolio - Management highlighted the potential for optimizing product yield across the entire portfolio and accessing premium markets [31] Question: Free cash flow allocation priorities post-MAG transaction - Management plans to return 100% of excess free cash flow to shareholders while balancing deleveraging and shareholder returns [36] Question: Progress on organic growth projects delivering additional volume - Management guided for about 150,000 barrels of growth from various projects, with significant contributions expected from Christina Lake and Foster Creek [50]