Cenovus announces sale of Tucker assets for $ 800 million

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The product will further accelerate net debt reduction and support increased shareholder returns

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CALGARY, Alta., December 16, 2021 (GLOBE NEWSWIRE) – Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) has entered into a deal to sell its Tucker thermal asset for total cash proceeds of $ 800 million. The proceeds of this transaction will further accelerate the reduction of the Company’s net debt and improve its ability to increase returns to shareholders. Including this transaction, the company expects to realize nearly $ 2 billion of the total proceeds from the asset sales announced in 2021.

“This is another example of Cenovus seizing opportunities to generate added value for shareholders,” said Alex Pourbaix, President and CEO of Cenovus. “With Tucker and the other divestitures announced this year, we have delivered on our asset sale commitment for 2021, thus positioning the company to focus on higher yield opportunities in the portfolio and continue to drive returns. for shareholders. “

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Located in northeastern Alberta, Tucker’s forecast 2022 average production is between 18,000 barrels per day and 21,000 barrels per day. The transaction is expected to close at the end of January, subject to customary closing conditions.

Orientation 2022
Cenovus’ business forecast dated December 7, 2021 does not reflect this asset sale. The company plans to update its forecast with its fourth quarter results in February 2022.

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Presentation basis
All financial figures and information have been prepared in Canadian dollars (including references to “dollars” and “$”), except where another currency has been indicated, and in accordance with International Financial Reporting Standards (“IFRS Or “GAAP”) published by the International Accounting Standards Board. Production volumes are presented before royalties.

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Forward-looking information
This press release contains certain forward-looking statements and forward-looking information (collectively, “forward-looking information”) within the meaning of applicable securities laws, including the United States Private Securities Litigation Reform Act of 1995, regarding our current expectations. , estimates and projections for the future, based on certain assumptions we have made in light of our experience and our perception of historical trends. Although Cenovus believes that the expectations represented by such forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information, as actual results may differ materially from those expressed or implied. Cenovus assumes no obligation to update or revise any forward-looking information, except as required by law.

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This forward-looking information is identified by words such as “accelerate”, “commitment”, “continue”, “achieve”, “improve”, “expect”, “orient”, “plan”, “position” and “” or similar expressions and includes suggestions for future results, including statements about: using the proceeds of the sale to accelerate the reduction of net debt and improve the ability to increase returns to shareholders; focus on higher yielding opportunities in the portfolio; realize the proceeds from asset disposals announced in 2021; Tucker’s average production forecast for 2022; close the transaction; and our schedule for updating our corporate directions.

The development of forward-looking information involves the use of a number of assumptions and the consideration of certain risks and uncertainties, some of which are specific to Cenovus and others that apply to the industry generally.

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Additional information about the risks, assumptions, uncertainties and other factors that could cause Cenovus’ actual results to differ materially from those expressed or implied by its forward-looking statements can be found under “Risk Management and Risk Factors” in the Cenovus annual report. Management report and analysis (MD&A) or Form 40-F for the fiscal year ended December 31, 2020 and in updates to the “Risk management and risk factors” section of the Management report for the period ended September 30, 2021.

Cenovus Energy Inc.

Cenovus Energy Inc. is an integrated energy company that operates oil and natural gas production activities in Canada and the Asia-Pacific region, as well as upgrader, refining and marketing activities in Canada and the United States. United States. The company focuses on managing its assets in a safe, innovative and profitable manner, integrating environmental, social and governance considerations into its business plans. Cenovus common shares and warrants are listed on the Toronto and New York stock exchanges, and the company’s preferred shares are listed on the Toronto Stock Exchange. For more information visit cenovus.com .

Find Cenovus on Facebook , Twitter , LinkedIn , Youtube and Instagram .

Cenovus contacts:

Investors Media
General Investor Relations Line General Press Relations Line
403-766-7711 403-766-7751

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