Cenovus $ 1.9B Selling Station in WRB Refining for Joint Enterprise Partner Filips 66 for 66
Cenovus Energy Inc. The joint venture partner Philips 66 is trying to trim its refinery business with a $ 1.9 billion deal to sell half interests in two American refineries.
“This transaction aligns with the owner of assets and our strategy of operations for our business and our strategy of operating,” CENOVAS Chief Executive Officer John McKenzie said in a news release on Tuesday.
After the sale of its 50 percent stake in the WRB refining LP, Cenovus will have a refinery business that controls it and is well integrated with its huge oysand operations in Alberta, McCenzie said.
“The income from this transaction will allow us to accelerate shareholder returns in the near period,” McKenzie said.
Operations in Wood River, Il., And Borgar, Texas, can churn 495,000 barrels per day, 247,500, of which the Sanovus is.
Once the deal was completed, Senovas said that its downstream business would have a total raw throw capacity of 472,800 barrels per day. Business still includes a refinery and oysands upgrader, on the Alberta-Saskechewan border, as well as one in two refineries in Ohio and Visconsin.
The deal is expected to close around the end of the third quarter, subject to the customary closing conditions.
Sanovas shares rose by about 2.6 percent to $ 22.70 in the morning trading at the Toronto Stock Exchange.
The refinery deal comes when the Senovus feels its small oils to handle the Pir Meg Energy Inc., with a cash-end-stock offer of about 8 billion dollars, including a loan. The two companies have side-by-side operations to the south of Christina Lake, Fort McMare, Alta, and have postponed cost savings and abilities that can be obtained by joining the army.
Meg has agreed to offer friendly Senovas, but still facing a hostile dialect from fellow oilseed operator Strathakona Resources. Before the announcement on Monday, the offering of a sweet stratchon was about 11 percent more than one of the Senovas of Senovus per share.
