Latest news with #MEGEnergy
Yahoo
5 days ago
- Business
- Yahoo
Cenovus floated as potential competing bidder for hostile takeover target MEG Energy
CALGARY — Oilsands giant Cenovus Energy Corp. has been cited by industry watchers as one of the potential competing bidders for MEG Energy Corp., which has spurned an unsolicited offer from Strathcona Resources Ltd. and launched a formal review of alternative options. MEG and Cenovus have neighbouring flagship oilsands projects south of Fort McMurray, Alta., at Christina Lake that use steam wells to draw the bitumen from underground. So from an operational perspective, it would make sense for Cenovus to want to further scale up and capture cost-savings and efficiencies, said Dane Gregoris, managing director of Enverus's oil and gas research group. But whether or not an acquisition would work financially is another matter given relative weakness in Cenovus's stock, he said. Over the past year, Cenovus shares have fallen nearly 30 per cent to trade around the $20 mark. "It's kind of an interesting dynamic. I think in a normal market environment where Cenovus had strong equity currency … they would definitely be the logical buyer. I think it makes it a little more complicated, a little bit more of a wrinkle." Earlier this year, Strathcona offered a combination of 0.62 of one of its own shares and $4.10 in cash for each MEG share it doesn't already own. MEG shares have been trading higher than the implied offer price, suggesting investors think a better bid will emerge. MEG has urged shareholders to reject the bid, in part because it said combining with Strathcona would expose shareholders to inferior assets and capital market risk — assertions the would-be acquirer disputes. The Financial Post, citing unidentified sources, reported earlier this week that MEG has set a Monday deadline for alternative bids and that Cenovus was said to be working on an offer. Cenovus did not reply to a request for comment on Friday. MEG declined to comment. On a call with analysts after the unsolicited bid was announced in May, Strathcona executive chairman Adam Waterous said his company and MEG have assets so complementary they are like "doppelgangers" or "brothers from another mother." Gregoris said operationally, Strathcona is not as compelling a fit as Cenovus would be, though there would be some synergies. Part of Strathcona's pitch is that a combination with MEG would increase its share float, enabling more institutional investors to get in on the stock of the combined company, Gregoris said. In late May, Strathcona announced an equity commitment letter with Waterous Energy Fund, also led by Waterous. The fund owns almost 80 per cent of Strathcona shares, and the new investment is worth about $662 million. MEG has raised concerns over Waterous Energy Fund owning 51 per cent of the combined company post-takeover, but Waterous has said the fund has no intention of selling its stake after a deal is completed. It would be an "unworthy end" if MEG were to finish its more than quarter-century run through a "financial-engineering-styled transaction" at a modest premium, said Kevin Burkett, portfolio manager at Victoria-based Burkett Asset Management, whose firm owns Cenovus shares. "A competing Cenovus bid would underscore just how strategic MEG's contiguous oilsands assets have become in the broader consolidation story," he said. "It isn't just about paying a premium, it's about capturing immediate synergies in production, power and infrastructure that a financial buyer simply can't replicate. A tie-up with Cenovus would signal a new phase of operational consolidation in Alberta where scale and integration, not just capital, drive value." Other potential bidders floated by analysts include Suncor Energy Inc., Imperial Oil Ltd. and Canadian Natural Resources Ltd. This report by The Canadian Press was first published July 25, 2025. Companies in this story: (TSX: MEG) Lauren Krugel, The Canadian Press
Yahoo
24-07-2025
- Business
- Yahoo
Oilsands giant Cenovus Energy said to be preparing competing bid for MEG
Oilsands giant Cenvous Energy Inc. is said to be preparing a bid for MEG Energy Corp., setting up a potential challenge to Strathcona Resources' hostile takeover offer, sources tell the Financial Post. The sources, who have knowledge of the bidding process, said MEG has set a Monday deadline for companies to submit bids to buy the oilsands producer, valued at $6.8 billion on the stock market as of Wednesday's market close. Cenovus is believed to be seeking financing to support the bid, the sources said, but there is no guarantee it will proceed. Cenovus had previously downplayed speculation about a potential acquisition, and did not immediately respond to requests for comment Wednesday. MEG declined to comment. If Cenovus proceeds with a bid, it would represent a significant escalation in the battle for control of MEG, one of Canada's largest pure-play oilsands producers, which kicked off in earnest last May with Strathcona's announcement of a $6-billion cash-and-stock takeover offer. MEG has called Strathcona's unsolicited bid 'inadequate', urging shareholders last June to reject the proposal and launching a strategic review of alternatives, including the invitation of potential rival bids for the company. Earlier this month, Strathcona said in a release that MEG's board has refused to engage. Strathcona's offer remains open until Sept. 15. An analyst at Royal Bank of Canada said in May that Cenovus would be 'the most logical fit' to buy MEG, given that both companies have operations in the same oilsands region in northeastern Alberta, and could cut costs. Cenovus is still carrying debt from previous acquisitions and mergers — including the company's $3.8-billion merger with Husky Energy in 2021 — though analysts have said previously that the company had made progress in deleveraging towards a total net debt target of $4 billion. The company's net debt is estimated to be about $5.96 billion as of June 30, RBC Capital Markets wrote in a research note Tuesday previewing the company's second-quarter earnings and balance sheet. MEG was also the target of a hostile takeover attempt by Husky in 2018. Meg Energy urges shareholders to reject takeover offer by Strathcona Resources Strathcona's hostile bid for MEG Energy called the 'largest investment in the Canadian oilpatch in a decade' • Email: mpotkins@
Bloomberg
21-07-2025
- Business
- Bloomberg
Strathcona Plans Special Dividend If Takeover of Rival MEG Fails
Strathcona Resources Ltd. plans to issue a special dividend and increase the liquidity of shares traded should the company's takeover attempt of MEG Energy Corp. fall through. Buying MEG is not 'Plan A' for Strathcona, chairman Adam Waterous said Monday about the Canadian oil company's C$6.6 billion ($4.4 billion) hostile takeover attempt of the rival oil sands producer. But a failure won't be a major setback, he said.
Yahoo
17-07-2025
- Business
- Yahoo
MEG Energy Announces Second Quarter of 2025 Results and Conference Call
CALGARY, AB, July 17, 2025 /CNW/ - Results Release: Thursday, July 31, 2025 after market close Conference Call Details: Friday, August 1, 2025 8:30am ET / 6:30am MT Dial-in Numbers: Toll Free: 1.800.715.9871 International: 1.647.932.3411 Replay: For those unable to dial-in to the conference call, an archived version will be available by 2:00pm ET / 12:00pm MT on Friday, August 1, 2025 at: About MEG MEG is the leading pure-play in situ thermal oil producer in Canada. Our purpose is to meet the growing demand for energy, produced safely and reliably, while generating long-term value for all our stakeholders. MEG produces, transports and sells our oil (AWB) to customers throughout North America and internationally. Our common shares are listed on the Toronto Stock Exchange under the symbol "MEG" (TSX: MEG). Learn more at For further information, please contact: Investor RelationsT 403.767.0515E invest@ Media RelationsT 403.775.1131E media@ SOURCE MEG Energy Corp. View original content to download multimedia: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-07-2025
- Business
- Yahoo
Hodgson mum on carbon capture mega-deal, but announces millions for smaller projects
Canada's energy minister was in southern Alberta Friday to announce millions in new funds for projects that would store carbon from oil and gas operations underground. But he was unwilling to disclose any progress on the single-largest proposal to capture the industry's emissions. Tim Hodgson, minister of energy and natural resources, said the five projects getting federal funds will advance the government's agenda to deliver cleaner energy to global markets. But they pale in comparison to the giant $16.5-billion carbon capture network proposed by the Pathways Alliance, a group of the country's largest oilsands producers. 'Those conversations are going on; they're going to happen in private,' Hodgson told a small crowd gathered outside a natural gas facility northwest of Calgary. 'When there's a transaction, we'll let everybody know, but you should assume that everyone is focused on trying to make that happen.' Hodgson is looking to repair Ottawa's strained relationship with the oilpatch after 10 years of Liberal rule under Justin Trudeau that executives widely viewed as hostile to their industry. A former board member at MEG Energy Corp., Hodgson said Canada will remain a global supplier of oil for decades. 'The real challenge is not whether we produce, but whether we can get the best products to market before someone else does,' he said. The 'best' kind of oil, according to Hodgson, is the cheapest with the lowest levels of risk and carbon, which underscores the urgent need for cleaner technologies. To that end, the government will spend $21.5 million supporting five projects that are involved in capturing carbon from Alberta energy plants and storing it deep underground, rather than allowing the pollution to reach the atmosphere. Inter Pipeline Ltd., which hosted Friday's event, said its joint project with Entropy Inc. would use their share of the funds to create a system that would capture 40,000 tonnes of carbon a year at a natural gas facility near Calgary, which the partners said is equivalent to the emissions of more than 12,200 cars. The Pathways Alliance's signature project would create a 400-kilometre pipeline connecting more than 20 oilsands facilities in northern Alberta to an underground storage hub. The alliance was first announced in 2022, but the oilsands partners have still not made a final investment decision. The Liberal government in Ottawa recently passed legislation that empowers Prime Minister Mark Carney and his cabinet to fast-track large infrastructure projects that they consider to be in the national interest. Alberta Premier Danielle Smith recently told Bloomberg News she expects a company will emerge in the coming weeks with a proposal to build a new oil pipeline from Alberta to the northern coast of British Columbia. Enbridge Inc. had spent millions on its proposed Northern Gateway pipeline from Alberta to B.C.'s coastal community of Kitimat. But the former Trudeau government effectively cancelled the project and banned large oil tankers from stopping in the area because of its proximity to the Great Bear Rainforest. New era of nation building in Canada fuels surge in oil and gas support How does Canada's burgeoning LNG industry measure up to its ambitions? Hodgson said Friday he is not aware of any companies that may be looking to build an oil pipeline to the northern coast. And he would not say whether the government would lift or override the tanker ban, known as Bill C-48, to allow a project to move ahead. 'When (proposals) come forward, they will be evaluated against the criteria,' he said. • Email: rsouthwick@ Sign in to access your portfolio
