Claims extracted
18
sentences that state something as happening or true
Uncertain
0%
0 of 18 hedged
("reportedly", "may", "according to")
Leaning
not political
takes no side on a contested political question
Publisher signals
63/100
Global News's corrections and
hedging, across everything collected from it. Not a measure of accuracy.
Outlets on this story
1
Economy/Business
Same framing elsewhere
1
articles that frame the event the way this one does
Cenovus Energy Inc. is adding to its already hefty steam-driven oilsands holdings with a $5.7-billion cash-and-stock deal to buy Athabasca Oil Corp., and its chief executive says recent government policy shifts will help unlock production growth from the properties it’s acquiring.
asserted
it → add → properties
Athabasca has 40,000 barrels per day of oilsands production currently, but Cenovus sees the opportunity to ratchet that up to 115,000 by 2032.
asserted
Cenovus → have → 2032
“That represents one of the most significant organic growth opportunities available in Canadian oilsands today,” CEO Jon McKenzie told a conference call with analysts Monday.
asserted
McKenzie → represent → analysts
The deal comes days after the federal government deemed a proposed million-barrel-a-day pipeline from Alberta to British Columbia the first national-interest project under legislation passed last year.
asserted
pipeline → come → legislation
The designation means the pipeline will be subject to a streamlined regulatory review through the major projects office.
asserted
pipeline → mean → office
There have been questions over whether Cenovus and its oilsands peers would be willing to invest in enough production growth to fill that massive pipeline by the time it starts up around 2032, as well as several other pipeline expansions set to come online sooner.
asserted
it → invest → 2032
McKenzie said the federal and Alberta governments have taken “positive steps” toward boosting the sector’s competitiveness.
asserted
governments → say → competitiveness
“These steps will have a meaningful impact on our ability to advance growth projects, like the ones we are contemplating at Leismer and Corner,” he said, referring to two Athabasca assets that will be added to its portfolio.
asserted
that → have → portfolio
Last month, Prime Minister Mark Carney announced businesses will be able to immediately deduct the cost of a broader range of investments against their taxes than they had been previously.
asserted
they → announce → taxes
McKenzie said that move “is not immaterial” to its ability to speed up growth.
asserted
move → say → growth
He also cited upcoming royalty incentives the Alberta government has said it expects to announce in November to spur more oilsands production.
asserted
it → cite → production
“All of that fits together to draw capital back into the resource in the Athabasca Basin and probably accelerate growth as well,” McKenzie said.
asserted
McKenzie → fit → growth
Under the terms of the agreement, Athabasca shareholders will have the option to receive $12 in cash or 0.264 of a Cenovus common share for each share they hold, subject to limits on the total cash and shares available.
asserted
they → have → cash
The total cash available is capped at $4.3 billion, while the number of Cenovus shares available under the offer is limited to 44.4 million.
“While the transaction does not come cheap … we view the acquisition as strategically compelling given the scarcity value of top-tier long-duration thermal inventory and the increasingly constructive backdrop for oilsands development,” wrote Desjardins Securities analyst Robert Mann in a note.
asserted
Mann → cap → note
Just under a year ago, Cenovus closed another multibillion-dollar acquisition of a smaller oilsands peer.
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Cenovus → close → peer
After a bitter bidding war with Strathcona Resources Ltd., Cenovus bought MEG Energy for $8.6 billion.
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Cenovus → buy → billion
Cenovus shares were trading down four per cent at $44.41 midday Monday, while Athabasca’s were up almost 14 per cent at $12.04.
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Athabasca → trade → 12.04
Cenovus says it expects to close the deal in December, subject to customary closing conditions, including regulatory and shareholder approvals.
asserted
it → say → approvals
The Aporia
