Cenovus Energy Inc. - Suffield Asset Opportunity April 2017


Opportunity Overview

BMO Capital Markets has been engaged by Cenovus Energy to assist with the sale of its Suffield and Alderson assets in southern Alberta.

This oil & gas business is uniquely attractive:

  • Commanding, difficult to replicate land position (~1 million acres with 100% operatorship)
  • Established production of 26,400(1) boe/d with a ~10% decline rate (~30% oil / ~70% gas)
  • Attractive inventory of low-risk investment opportunities; supported by large in-place resource and existing infrastructure
  • Substantial cash flow generation, even at low oil & gas prices, driven by low costs; strong leverage to higher prices
  • Long-term constructive relationship with the DND
  1. 2016 annual average production