Cenovus Energy - President & CEO, Alex Pourbaix
President & CEO, Alex Pourbaix
Source: CBC News
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  • Cenovus Energy Inc. (CVE) has agreed to purchase BP PLC’s interest in the BP-Husky Toledo Refinery in Ohio worth at least US$300 million
  • The total purchase consideration includes US$300 million, plus the value of inventory
  • The transaction is expected to close by the end of this year
  • This transaction will bring Cenovus’ total refining capacity to 740,000 barrels per day
  • Cenovus Energy Inc. (CVE) is up 4.28 per cent trading at $22.17 per share as of 3:25 p.m. ET

Cenovus Energy (CVE) has agreed to purchase BP PLC’s 50 per cent interest in the BP-Husky Toledo Refinery in Ohio.

Cenovus has owned the other 50 per cent of the refinery since its combination with Husky Energy in 2021. The company’s U.S. operating business will assume operatorship from BP after closing the transaction, which Cenovus expects by the end of this year.

The total purchase consideration includes US$300 million in cash, plus inventory value. The involved parties have also signed a multi-year product supply agreement.

“Fully owning the Toledo Refinery provides a unique opportunity to further integrate our heavy oil production and refining capabilities… the refinery will open up additional synergies and capital efficiency opportunities, including connectivity with our nearby Lima Refinery,” Alex Pourbaix, Cenovus’ President and CEO, said.

According to Cenovus, the transaction will give it an additional 80,000 barrels per day of downstream throughput capacity, including 45,000 barrels per day of heavy oil refining capacity.

The company believes this transaction will also provide opportunities to further optimize its heavy oil value chain through integration with its upstream assets. This transaction will bring Cenovus’s total refining capacity to 740,000 barrels daily.

Cenovus stated it expects to realize synergies over the next few years because of the transaction, primarily related to the optimization of feedstock and refined product sales, and the longer-term potential to connect the Toledo Refinery with Cenovus’ U.S. refining network.

Cenovus Energy Inc. (CVE) is up 4.28 per cent trading at $22.17 per share as of 3:25 p.m. ET.


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