Canadian oil company,
Cenovus Energy Inc.
) announced the completion of its debt refinancing activity
announced on Jun 6. Under the refinancing activity, the company
offered senior notes of $800 million in two equal series,
carrying coupon rates of 3.8% and 5.2% with maturity in 2023 and
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The proceeds from this offering, along with its existing cash and
borrowings will be utilized to redeem an equivalent amount of
senior notes bearing an interest rate of 4.5%, due in 2014.
Headquartered in Calgary, Alberta, Cenovus is an integrated oil
company with ownership interest in two high-quality refineries in
Illinois and Texas. Cenovus' operations include increasing oil
projects and growing natural gas and crude oil production in
Alberta and Saskatchewan. The company has four top-quality
enhanced oil projects, namely, Foster Creek, Christina Lake,
Pelican Lake and Weyburn.
Cenovus enjoys the benefits of industry-leading oil sands assets
that position it for long-term growth. We believe the company
will remain focused on improving its operational efficiency
However, Cenovus reported weaker-than-expected second quarter
2013 results due to lower crude oil price realizations. Earnings
per share came in at 20 cents, missing the Zacks Consensus
Estimate of 48 cents.
Cenovus currently carries a Zacks Rank #5 (Strong Sell), implying
that it will underperform the broader U.S. equity market over the
next one to three months.
Meanwhile, in the energy sector, firms that are expected to
significantly outperform the broader U.S. equity market over the
same time frame are
Matador Resources Company
Seacor Holdings Inc.
Magellan Midstream Partners LP
). All three firms sport a Zacks Rank #1 (Strong Buy).