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Cenovus Energy Inc. is selling liquids-rich natural gas assets in northwestern Alberta to NuVista Energy Ltd. for $625-million in the latest in its series of asset sales aimed at reducing debt.

NuVista is acquiring Cenovus’s Montney-formation assets in the Pipestone region, which produce 9,600 barrels of oil equivalent a day.

Cenovus has sold a number of holdings following its $17.7-billion takeover of oil sands and natural gas properties from ConocoPhillips in 2017, a deal that increased the company’s debt load and led to a steep fall in its share price. Proceeds now top $4.3-billion.

The company said it is evaluating other Alberta Deep Basin property sales, encouraged by interest from potential buyers.

To finance the deal, NuVista said it plans a $214-million private placement of subscription receipts and a concurrent $170-million offering of receipts at $8.10 apiece, for total proceeds of $384-million. The offering is being led by Canadian Imperial Bank of Commerce, Peters & Co. Ltd. and Royal Bank of Canada.

The company said it plans to issue another $35-million in flow-through shares.

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 30/05/24 0:55pm EDT.

SymbolName% changeLast
RY-N
Royal Bank of Canada
+4.96%107.95
CVE-T
Cenovus Energy Inc
+0.92%28.56
CVE-N
Cenovus Energy Inc
+1.36%20.92
NVA-T
Nuvista Energy Ltd
-0.37%13.58

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