Montrose Environmental(US:MEG) Prnewswireยท2025-10-10 20:47Core Viewpoint - Strathcona Resources Ltd. has terminated its takeover bid for MEG Energy Corp due to changes in the arrangement with Cenovus Energy Inc, and plans to distribute $10.00 per share to its shareholders as part of a corporate update [1][2][6]. Termination of MEG Offer - The termination of the takeover bid is attributed to the revised agreement between MEG's board and Cenovus, which Strathcona believes makes the conditions for its offer unachievable [2]. - The MEG Board's actions, including allowing Cenovus to vote shares acquired after the record date, are seen as unprecedented and anti-competitive, leading Strathcona to conclude that a better offer is impractical [3]. Special Distribution - Strathcona plans to pay a special distribution of $10.00 per share to its common shareholders, which will be part of a statutory plan of arrangement [6]. - Shareholders of record as of October 17, 2025, will vote on the plan at a special meeting scheduled for November 27, 2025, with support expected from significant shareholders [7]. Corporate Update - Following the sale of MEG, Strathcona will be the only pure play oil company in North America producing over 50,000 barrels per day without mines or refineries [9]. - The company aims for organic growth from 120,000 barrels per day to 195,000 barrels per day by 2031, with a capital budget of $1.0 billion for 2026 [10]. Financial Position - After the special distribution, Strathcona expects to have approximately $2.0 billion in debt net of marketable securities and over $1.0 billion in available liquidity [11]. - Excess free cash flow will be allocated between debt repayment, mergers and acquisitions, and further shareholder returns [11]. Share Pass-Through - Waterous Energy Fund intends to distribute up to approximately 13% of Strathcona's outstanding shares to its limited partners in two stages, reducing its ownership from 79.6% to approximately 66.6% [12].