Cenovus Energy strengthens position with MEG Energy share purchase

Core Viewpoint - Cenovus Energy is strengthening its position in the acquisition of MEG Energy by purchasing shares ahead of a merger vote, with a revised bid of C$8.6 billion ($6.11 billion) including debt [1][2][3]. Group 1: Acquisition Details - Cenovus has acquired approximately 21.7 million common shares of MEG Energy, representing about 8.5% of MEG's 254.4 million outstanding shares [1]. - The revised bid values MEG at approximately C$29.80 per share, which is declared as Cenovus' "best and final" offer [2]. - The deal requires support from at least two-thirds of MEG's investors to proceed, with the shareholder meeting rescheduled to 22 October [2]. Group 2: Competitive Landscape - Strathcona Resources, which owns 14% of MEG, previously made a bid valuing MEG at C$30.86 per share but has since withdrawn its offer [2][4]. - Cenovus' revised offer structure has shifted from 75% cash and 25% stock to a 50-50 split, aimed at providing MEG investors with more potential upside [3]. Group 3: Operational Impact - A successful acquisition of MEG, which produces approximately 100,000 barrels of crude oil per day, would enhance Cenovus' position as a major operator in Alberta's Christina Lake region [4]. - Cenovus reported upstream production of around 832,000 barrels of oil equivalent per day in Q3 2025, indicating strong operational performance [5].