Cenovus CEO to step down; company to sell up to $5 bln in assets


UPDATE 2-Cenovus CEO to step down; company to sell up to $5 bln in assets

(Adds details, background)
    June 20 (Reuters) - Cenovus Energy Inc <CVE.TO> said on
Tuesday Chief Executive Brian Ferguson will step down in October
and the Canadian oil company also laid out plans to sell $4
billion to $5 billion in non-core assets by the end of the year.
    Ferguson has led Cenovus since its inception in 2009. The
board will begin a global search for a new CEO, Cenovus said.
    The proceeds of the asset sale will be used to reduce debt
after Cenovus paid about C$17 billion ($12.8 billion) last month
to buy ConocoPhillips' <COP.N> western Canadian oil sands
assets. [nGNXNXIRQa]
    The ConocoPhillips deal effectively doubled Cenovus's
assets, a move the company has said would allow it to utilize
economies of scale to lower costs.
    But some investors have complained that the deal was too
pricey. Cenovus is holding a shareholder meeting on Tuesday to
convince investors of the value of the deal.
    The company may sell its Palliser and Weyburn assets in a
deal that could be announced in the fourth quarter, outgoing CEO
Ferguson said on a conference call with investors.
    Other possible sales include undeveloped oil sands and the
Marten Hills assets, Ferguson said.
    Cenovus's shares have fallen about 40 percent since the
ConocoPhillips deal to just above C$10, wiping out $6.7 billion
in market value. [nL1N1JD12T]

($1 = 1.3247 Canadian dollars)

Cenovus Energy's market capitalization    http://reut.rs/2rQspdH
 (Reporting by Yashaswini Swamynathan in Bengaluru and Ethan Lou
in Calgary; Editing by Sai Sachin Ravikumar)
 ((yashaswini.swamynathan@thomsonreuters.com; within U.S. +1 646
223 8780, outside U.S. +91 80 6749 2405; Reuters Messaging:


This article appears in: Politics , World Markets , Stocks , Oil
Referenced Symbols: COP

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