Canadian oil major Cenovus Energy announced that it will acquire Athabasca Oil for C$5.7 billion. The acquisition is expected to increase daily production, with the company targeting an increase to 115,000 barrels per day by 2032.
Canadian oil major Cenovus Energy announced plans to acquire fellow oil producer Athabasca Oil for approximately C$5.76 billion in a combination of cash and shares. The transaction is reportedly expected to close by year-end.
Athabasca is one of the few remaining independent companies in Alberta's oil sands industry. Cenovus is in a period of restructuring following its C$826 million acquisition of MEG Energy.
Following the acquisition, Cenovus's oil sands production using thermal recovery methods is expected to increase by approximately 45,000 barrels per day, potentially reaching 115,000 barrels per day. Total upstream production in the second quarter of FY2026 was approximately 970,000 barrels of oil equivalent per day.
The transaction will combine cash and shares, with Athabasca shareholders receiving 0.264 Cenovus shares for each share held. Reuters calculated the acquisition value at approximately C$5.76 billion. Completion is expected in December.