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Cenovus (CVE) Receives Shareholder Approval for Husky Takeover
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Cenovus Energy Inc. (CVE - Free Report) confirms approvals from its shareholders for its merger agreement with rival Husky Energy Inc. Notably, on Oct 25, the Canadian oil sand producer and Husky Energy agreed to merge in a C$3.8 billion (around $2.9 billion) all-stock accord.
Most of the analysts opine that the approval follows the recent oil price recovery that has been leading energy shares to rally, which, in turn, has escalated the all-stock transaction value.
The agreement was approved by a sizable majority, with more than 90% of votes cast in favor of the merger. Furthermore, Cenovus and Husky Energy received the final approval from the Court of Queen’s Bench of Alberta to merge the two. However, the completion of the transaction remains subject to the satisfaction of a number of regulatory approvals and other customary closing conditions, and is expected to close in early 2021.
The merger will make the combined company — the third-largest Canadian oil and natural gas producer — with Cenovus shareholders holding a 61% stake and Husky shareholders owning the remaining shares. Notably, the combined entity will operate as Cenovus Energy and will remain headquartered in Calgary.
The new venture is expected to generate yearly savings of $1.2 billion within its first year of operation, excluding commodity prices. Meanwhile, the combined company plans to slash its workforce by nearly 20-25% of the overall 8,600 workers and contractors, currently employed at the two companies. The layoffs have come as yet another blow to Alberta's oil and gas sector, which is already reeling under job losses in recent months.
Notably, the merger is expected to create a more resilient and stronger Canadian integrated energy leader, with synergies greater than either company can create.
Company Profile
Headquartered in Calgary, AB, Cenovus is a leading integrated energy company.
Zacks Rank & Stocks to Consider
Cenovus currently carries a Zack Rank #4 (Sell).
Some better-ranked players in the energy space are Hess Midstream Partners LP (HESM - Free Report) , China Petroleum & Chemical Corporation and DCP Midstream Partners, LP , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Hess Midstream’s2020 earnings has been raised by 1462.5%, while that for China Petroleum’s 2020 earnings has been raised by 219.3%.
DCP Midstream is expected to see earnings growth of 202.4% in 2021.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Cenovus (CVE) Receives Shareholder Approval for Husky Takeover
Cenovus Energy Inc. (CVE - Free Report) confirms approvals from its shareholders for its merger agreement with rival Husky Energy Inc. Notably, on Oct 25, the Canadian oil sand producer and Husky Energy agreed to merge in a C$3.8 billion (around $2.9 billion) all-stock accord.
Most of the analysts opine that the approval follows the recent oil price recovery that has been leading energy shares to rally, which, in turn, has escalated the all-stock transaction value.
The agreement was approved by a sizable majority, with more than 90% of votes cast in favor of the merger. Furthermore, Cenovus and Husky Energy received the final approval from the Court of Queen’s Bench of Alberta to merge the two. However, the completion of the transaction remains subject to the satisfaction of a number of regulatory approvals and other customary closing conditions, and is expected to close in early 2021.
The merger will make the combined company — the third-largest Canadian oil and natural gas producer — with Cenovus shareholders holding a 61% stake and Husky shareholders owning the remaining shares. Notably, the combined entity will operate as Cenovus Energy and will remain headquartered in Calgary.
The new venture is expected to generate yearly savings of $1.2 billion within its first year of operation, excluding commodity prices. Meanwhile, the combined company plans to slash its workforce by nearly 20-25% of the overall 8,600 workers and contractors, currently employed at the two companies. The layoffs have come as yet another blow to Alberta's oil and gas sector, which is already reeling under job losses in recent months.
Notably, the merger is expected to create a more resilient and stronger Canadian integrated energy leader, with synergies greater than either company can create.
Company Profile
Headquartered in Calgary, AB, Cenovus is a leading integrated energy company.
Zacks Rank & Stocks to Consider
Cenovus currently carries a Zack Rank #4 (Sell).
Some better-ranked players in the energy space are Hess Midstream Partners LP (HESM - Free Report) , China Petroleum & Chemical Corporation and DCP Midstream Partners, LP , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Hess Midstream’s2020 earnings has been raised by 1462.5%, while that for China Petroleum’s 2020 earnings has been raised by 219.3%.
DCP Midstream is expected to see earnings growth of 202.4% in 2021.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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