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Employees torque a pipe at a wedge well at Christina Lake, an oil production facility half owned by Cenovus Energy Inc. and ConocoPhillips, in Conklin, Alta. in August, 2013. (Brent Lewin)
Employees torque a pipe at a wedge well at Christina Lake, an oil production facility half owned by Cenovus Energy Inc. and ConocoPhillips, in Conklin, Alta. in August, 2013. (Brent Lewin)

Cenovus piling on debt to complete ConocoPhillips deal Add to ...

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Cenovus Energy Inc. is paying a steep price and piling on debt as it seeks scale in one of the world’s most expensive places to pump crude.

Cenovus’s $17.7-billion cash-and-stock deal for most of ConocoPhillips Co.’s oil-sands assets will transform the Calgary-based company into Canada’s fourth-largest oil and gas producer by enterprise value. But it comes at a hefty cost: the company has arranged $10.5-billion in loans to help fund the deal, with plans to sell $3.6-billion in assets in a market analysts and investment bankers say remains spotty.

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