Cenovus Energy announces redemption of Series 1 & 2 Preferred Shares

Rhea-AI Summary

Cenovus Energy (TSX/NYSE: CVE) will redeem all outstanding 2.577% Series 1 and 3.948% Series 2 preferred shares on March 31, 2026 at $25.00 per share, for an aggregate redemption amount of $300 million, funded primarily from cash on hand.

The company also declared final quarterly dividends of $0.16106 per Series 1 share and $0.24337 per Series 2 share, payable March 31, 2026 to holders of record as of March 13, 2026.

Positive

• Redemption of preferred shares totaling $300 million
• Removes future dividend obligations on Series 1 and Series 2
• Final dividends declared for payment on March 31, 2026

Negative

• One-time cash outflow of $300 million funded primarily from cash on hand
• Holders may face withholding and must use intermediaries to claim proceeds

Key Figures

Series 1 coupon: 2.577% Series 2 coupon: 3.948% Redemption price: $25.00 per share +5 more

8 metrics

Series 1 coupon 2.577% Dividend rate on Series 1 Preferred Shares prior to redemption

Series 2 coupon 3.948% Dividend rate on Series 2 Preferred Shares prior to redemption

Redemption price $25.00 per share Cash consideration per Series 1 & 2 Preferred Share on redemption

Redemption total $300 million Aggregate amount payable to Series 1 & 2 Preferred holders

Series 1 final dividend $0.16106 per share Final quarterly dividend payable on March 31, 2026

Series 2 final dividend $0.24337 per share Final quarterly dividend payable on March 31, 2026

Redemption date March 31, 2026 Date on which all Series 1 & 2 Preferred Shares will be redeemed

Record date March 13, 2026 Shareholder record date for final preferred dividends

Market Reality Check

Price: $21.95 Vol: Volume 15,491,093 is mode...

normal vol

$21.95 Last Close

Volume Volume 15,491,093 is modestly above 20-day average 14,181,145 (relative volume 1.09x) ahead of this announcement. normal

Technical Shares at 21.95 are trading above the 200-day MA of 16.58, near the 52-week high of 23.39 and well above the 52-week low of 10.23.

Peers on Argus

CVE was down 1.88% pre-release while large peers showed mixed moves: BP and EQNR...

1 Up 2 Down

CVE was down 1.88% pre-release while large peers showed mixed moves: BP and EQNR were down (around -0.9%), and E was up about 1.78%. With multiple integrated names moving and no peer-specific headlines, this suggests broader energy-sector dynamics around the time of the news.

Historical Context

5 past events · Latest: Feb 19 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 19	Earnings results	Positive	+4.0%	Strong Q4 2025 cash generation, production and shareholder returns update.
Feb 12	Earnings call notice	Neutral	+3.0%	Announcement of timing and access details for Q4 and FY 2025 call.
Dec 11	Capital budget/guidance	Positive	-0.8%	2026 capex plan and upstream/downstream guidance with planned growth.
Nov 20	Debt refinancing	Neutral	-1.0%	Closing of $2.6B notes offering and redemption of multiple existing notes.
Nov 18	Debt offering	Neutral	-1.5%	$2.6B multi-tranche senior notes pricing for refinancing and corporate use.

Pattern Detected

Recent news often saw modest price reactions, with positive operational or guidance updates sometimes met with mild selling, while earnings and event notices tended to trade in line.

Recent Company History

Over the past six months, Cenovus has focused on strengthening operations and its balance sheet. On Nov 18, 2025 and Nov 20, 2025, it issued and then closed a $2.6 billion senior notes offering and announced related redemptions. On Dec 11, 2025, it released its 2026 capital budget and guidance, targeting production growth and disciplined capital. Most recently, Q4 and full‑year 2025 results on Feb 19, 2026 highlighted strong cash generation and shareholder returns. Today’s preferred share redemption continues that capital-structure optimization trend.

Market Pulse Summary

This announcement details Cenovus’s plan to redeem all Series 1 and 2 Preferred Shares at $25.00 per...

Analysis

This announcement details Cenovus’s plan to redeem all Series 1 and 2 Preferred Shares at $25.00 per share for a total of $300 million, funded primarily from cash on hand, with final dividends of $0.16106 and $0.24337 per share on March 31, 2026. It continues a broader capital-structure streamlining alongside prior debt refinancings. Investors should watch future disclosures on cash usage, leverage, and shareholder returns to understand how this fits longer-term capital priorities.

Key Terms

preferred shares, forward-looking statements, forward-looking information, Registrar and Transfer Agent, +2 more

6 terms

preferred shares financial

"the company’s preferred shares are listed on the Toronto Stock Exchange."

Preferred shares are a type of investment that gives investors priority over common shareholders when it comes to receiving dividends and getting their money back if a company is sold or liquidated. Think of them as a safer, more predictable way to earn income from a company's profits, similar to a fixed-return investment, but without voting rights. This makes preferred shares appealing to those seeking stable income with a higher claim on assets than regular stockholders.

forward-looking statements regulatory

"This news release contains certain forward-looking statements and forward-looking information"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

forward-looking information regulatory

"forward-looking statements and forward-looking information (collectively referred to as “forward-looking information”)"

Forward-looking information are predictions, plans, estimates or expectations about a company’s future performance, results or events, such as sales forecasts, project timelines, or anticipated costs. It matters to investors because these statements guide expectations but rely on assumptions and uncertain factors—like a weather forecast for a business—so investors should treat them as informed guesses rather than guarantees and consider the risks and possible changes behind the numbers.

Registrar and Transfer Agent financial

"should be directed to Cenovus’s Registrar and Transfer Agent, Computershare Investor Services Inc."

A registrar and transfer agent is the third-party service that keeps the official list of a company's shareholders and carries out changes to ownership — issuing or cancelling shares, recording trades, and handling name or address updates. Think of them as a combination of a secure records office and a mail carrier for stock ownership: they make sure who owns what is correct, process transfers smoothly, and handle dividend or corporate-action payments, which protects investors and preserves clear, trustworthy ownership records.

SEDAR+ regulatory

"available on SEDAR+ at sedarplus.ca, on EDGAR at sec.gov"

SEDAR+ is Canada’s centralized online system where publicly traded companies submit required regulatory documents such as financial reports, prospectuses and disclosure statements. It gives investors a single, searchable place — like a public library or online filing cabinet — to check a company’s official records for transparency, compare performance, and verify material information before making investment decisions.

EDGAR regulatory

"available on SEDAR+ at sedarplus.ca, on EDGAR at sec.gov"

EDGAR is a system used by companies to share important financial and business information with the public. It functions like an online filing cabinet where investors can access official reports and documents that help them understand a company's financial health and operations. This transparency allows investors to make more informed decisions, much like checking a company's report card before investing.

AI-generated analysis. Not financial advice.

CALGARY, Alberta, Feb. 26, 2026 (GLOBE NEWSWIRE) -- Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) today announced it will exercise its right to redeem its 2.577% Series 1 Preferred Shares (the “Series 1 Preferred Shares”) and its 3.948% Series 2 Preferred Shares (the “Series 2 Preferred Shares”, collectively, the “Series 1 & 2 Preferred Shares”) on March 31, 2026 (the “Redemption”). All of the Series 1 & 2 Preferred Shares outstanding will be redeemed at the price of $25.00 per share, for an aggregate amount payable to holders of $300 million, less required withholdings, if any, funded primarily from cash on hand.

As previously announced, the Company’s Board of Directors has declared quarterly dividends of $0.16106 per Series 1 Preferred Share and $0.24337 per Series 2 Preferred Share, each payable on March 31, 2026, to shareholders of record as of March 13, 2026. These will be the final dividends paid on the Series 1 & 2 Preferred Shares.

Inquiries from registered holders of Series 1 & 2 Preferred Shares should be directed to Cenovus’s Registrar and Transfer Agent, Computershare Investor Services Inc. at 1-866-332-8898 or (514) 982-8717 outside North America. Beneficial holders, who are not directly registered holders of Series 1 & 2 Preferred Shares, should contact the financial institution, broker or other intermediary through which they hold these shares to confirm how they will receive their redemption proceeds.

Advisory

This news release contains certain forward-looking statements and forward-looking information (collectively referred to as “forward-looking information”), within the meaning of applicable securities legislation, about Cenovus’s current expectations, estimates and projections about the future, based on certain assumptions made in light of the Company's experiences and perceptions of historical trends. Although Cenovus believes that the expectations represented by such forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Forward-looking information in this news release is identified by words such as “payable”, “should”, “will” or similar expressions and includes suggestions of future outcomes, including, but not limited to, statements about: the completion of the Redemption, including the timing and funding thereof and the dividend payments with respect to the Series 1 & 2 Preferred Shares.

Developing forward-looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to Cenovus and others that apply to the industry generally.

Except as required by applicable securities laws, Cenovus disclaims any intention or obligation to publicly update or revise any forward‐looking information, whether as a result of new information, future events or otherwise. Readers are cautioned that the foregoing lists are not exhaustive and are made as at the date hereof. Events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward‐looking information. Accordingly, readers are cautioned not to place undue reliance on forward-looking information. For additional information regarding Cenovus’s material risk factors, the assumptions made, and risks and uncertainties which could cause actual results to differ from the anticipated results, refer to “Risk Management and Risk Factors” and “Advisory” in Cenovus’s Management’s Discussion and Analysis for the period ended December 31, 2025, and to the risk factors, assumptions and uncertainties described in other documents Cenovus files from time to time with securities regulatory authorities in Canada, which are available on SEDAR+ at sedarplus.ca, on EDGAR at sec.gov and Cenovus’s website at cenovus.com.

Cenovus Energy Inc.

Cenovus Energy Inc. is an integrated energy company with oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States. The company is committed to maximizing value by developing its assets in a safe, responsible and cost-efficient manner, integrating sustainability considerations into its business plans. Cenovus common shares are listed on the Toronto and New York stock exchanges, and the company’s preferred shares are listed on the Toronto Stock Exchange. For more information, visit cenovus.com.

Find Cenovus on Facebook, LinkedIn, YouTube and Instagram.

Cenovus contacts:

Investors
Investor Relations general line
403-766-7711

Media
Media Relations general line
403-766-7751

FAQ

What exactly is Cenovus (CVE) redeeming on March 31, 2026?

Cenovus is redeeming all outstanding 2.577% Series 1 and 3.948% Series 2 preferred shares at $25.00 per share. According to the company, the redemption totals $300 million and will be funded primarily from cash on hand.

Will CVE pay any dividends on Series 1 and Series 2 before redemption?

Yes. Cenovus declared final quarterly dividends of $0.16106 for Series 1 and $0.24337 for Series 2, payable March 31, 2026. According to the company, these will be the last dividends on those preferred series.

How will Cenovus (CVE) fund the $300 million preferred share redemption?

The company plans to fund the $300 million redemption primarily from cash on hand. According to the company, required withholdings, if any, will be deducted from amounts payable to holders.

What should Cenovus preferred holders (CVE) do to receive redemption proceeds?

Registered holders should contact Computershare; beneficial holders should contact their broker or intermediary. According to the company, Computershare Investor Services Inc. can assist registered holders with redemption inquiries.

Does the Series 1 and 2 redemption affect Cenovus common shareholders (CVE)?

The redemption retires the preferred shares and eliminates future preferred dividends, which may modestly affect capital allocation decisions. According to the company, the action reduces preferred obligations and involves a $300 million cash outflow.