Canadian oil firms Cenovus and Husky Energy complete merger

Cenovus and Husky Energy have announced the closing of their previously announced merger, creating Canada’s third-largest crude oil and natural gas player.

Cenovus’ strategic combination with Husky Energy was closed through a definitive arrangement agreement announced last October.

According to the companies, the combined entity will operate as Cenovus Energy, with headquarters in Calgary, Alberta.

The new entity is expected to produce nearly 750,000 barrels of oil equivalent per day (boepd).

Cenovus is also now the second-largest refiner and upgrader in Canada, with total North American refining and upgrading capacity of 660,000bpd.

Cenovus common shares will remain listed on the TSX and NYSE under the ticker symbol CVE while Husky’s common and preferred shares will be delisted by the TSX by 5 January.

In a press statement, Husky Energy stated: “The Cenovus warrants have been listed on the Toronto and New York exchanges under the ticker symbols TSX: CVE.WT and NYSE: CVE WS. The Cenovus preferred shares Series 1, Series 2, Series 3, Series 5 and Series 7 have been listed on the TSX under the ticker symbols CVE.PR.A, CVE.PR.B, CVE.PR.C, CVE.PR.E and CVE.PR.G.

“The Cenovus warrants and Cenovus preferred shares are expected to commence trading on the TSX at the opening of market on 6 January 2021 and the Cenovus warrants are expected to begin trading on the NYSE at the opening of market on 6 January 2021.”

The combined company also has access to 265,000bpd of ‘current takeaway capacity’ from Alberta on existing major pipelines, 305,000bpd of ‘committed capacity’ on planned pipelines, as well as 16 million barrels of crude oil storage capacity.

With the closing of the merger transaction, Husky has become a fully owned subsidiary of Cenovus. It will remain as such until the completion of a planned amalgamation among the two firms.

Last month, Cenovus Energy’s shareholders approved the acquisition of Husky Energy.