ConocoPhillips looking to sell $2.7bn stake in Cenovus Energy
Houston-based energy company ConocoPhillips is reportedly looking to sell its stake in Cenovus Energy according to Reuters, citing people familiar with the matter.
ConocoPhillips acquired the stake last year as part of a deal between the two companies, where Cenovus purchased oilsands and natural gas assets from ConocoPhillips in a deal worth $17bn, with 208mn Cenovus shares and $14.1bn in cash involved in the transaction.
Based on current share prices, the value of ConocoPhillips’ 208mn shares currently stands at $2.7bn. With this in mind, a potential deal would pose as one of the most significant asset sales this year across Canada.
The reports confirm previous statements made from the US firm itself, claiming that, despite the acquisition of the stake in Cenovus last year, it would not remain a long-term equity partner in the company.
In the wake of the news, Cenovus’ shares fell 7.7% to $12.4 per share on the Toronto Stock Exchange (TSE).