Cenovus to Divest Assets for $660M

Cenovus to Divest Assets for $660M

Cenovus Energy Inc. (CVE) has agreed to divest its Husky retail fuels network and the Wembley assets in its Conventional business for an all-cash deal of nearly $660 million. The company involves in the development, production and marketing of crude oil, natural gas liquids (NGLS) and natural gas in Canada.

CVE plans to use proceeds from this sale to repay net debt towards its longer-term target of $8 billion and enhance capacity to increase shareholder returns. (See Cenovus stock charts on TipRanks)

Cenovus will be selling 337 gas stations to Parkland Corporation and Federated Co-operatives Limited for $420 million. Meanwhile, the company will be keeping its commercial fuels business, which includes about 170 cardlock, bulk plant and travel centre locations.