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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