Cenovus Drops Most Ever as $13.3 Billion Deal Ramps Up Risks
- Company acquires Conoco joint venture and Deep Basin assets
- Conoco using proceeds to trim debt to $20 billion in 2017
at Cenovus Energy's Christina Lake in situ oil production facility in Conklin, Alberta, Canada, on Tuesday, August 13, 2013.
Photographer: Brent Lewin/BloombergCenovus Energy Inc. fell the most since its trading debut more than seven years ago after agreeing to buy Canadian oil assets from ConocoPhillips for C$17.7 billion ($13.3 billion) in a deal that increases its risks at a time of uncertain oil prices.
Cenovus is paying Conoco C$14.1 billion in cash and 208 million shares for its 50 percent stake in their Foster Creek and Christina Lake oil-sands venture, plus most of its conventional assets in the Deep Basin of Alberta and British Columbia. The deal is the latest sale of energy assets in Canada by international companies gravitating toward higher-profit drilling in U.S. shale basins.