Cenovus Energy to sell interest in WRB Refining to Phillips 66
Cenovus Energy (NYSE:CVE) has announced an agreement to sell its 50% stake in WRB Refining LP to Phillips 66 for US$1.4 billion (approximately C$1.9 billion). The WRB joint venture includes the Wood River Refinery in Illinois and Borger Refinery in Texas, with a combined crude throughput capacity of 495,000 barrels per day.
Following the divestment, Cenovus's downstream operations will focus on its wholly-owned assets, including the Lloydminster Upgrader, Lloydminster Refinery, Lima Refinery, Toledo Refinery, and Superior Refinery, with a total crude throughput capacity of 472,800 barrels per day. The transaction proceeds will be used to reduce net debt and accelerate shareholder returns through increased share repurchases. The company has already purchased 18.8 million common shares for $388 million in Q3 up to August.
Cenovus Energy (NYSE:CVE) ha annunciato un accordo per vendere la sua quota del 50% in WRB Refining LP a Phillips 66 per 1,4 miliardi di dollari USA (circa 1,9 miliardi di CAD). La joint venture WRB comprende il Wood River Refinery in Illinois e il Borger Refinery in Texas, con una capacità complessiva di lavorazione del greggio di 495.000 barili al giorno.
Dopo la cessione, le attività downstream di Cenovus si concentreranno sugli asset interamente di proprietà della società, tra cui l'Lloydminster Upgrader, il Lloydminster Refinery, il Lima Refinery, il Toledo Refinery e il Superior Refinery, con una capacità totale di trattamento del greggio di 472.800 barili al giorno. Il ricavato della transazione sarà impiegato per ridurre l'indebitamento netto e accelerare i ritorni per gli azionisti tramite un aumento dei riacquisti di azioni. La società ha già comprato 18,8 milioni di azioni ordinarie per 388 milioni di dollari nel terzo trimestre fino ad agosto.
Cenovus Energy (NYSE:CVE) ha anunciado un acuerdo para vender su participación del 50% en WRB Refining LP a Phillips 66 por 1.400 millones de dólares (aprox. 1.900 millones de CAD). La joint venture WRB incluye la refinería Wood River en Illinois y la refinería Borger en Texas, con una capacidad conjunta de procesamiento de crudo de 495.000 barriles por día.
Tras la desinversión, las operaciones downstream de Cenovus se centrarán en sus activos de plena propiedad, entre ellos el Lloydminster Upgrader, la refinería Lloydminster, la refinería Lima, la refinería Toledo y la refinería Superior, con una capacidad total de procesamiento de 472.800 barriles por día. Los ingresos de la transacción se destinarán a reducir la deuda neta y a acelerar los retornos a los accionistas mediante un aumento de las recompras de acciones. La compañía ya ha adquirido 18,8 millones de acciones ordinarias por 388 millones de dólares en el tercer trimestre hasta agosto.
Cenovus Energy (NYSE:CVE)는 WRB Refining LP 지분 50%를 필립스66에 미화 14억 달러(약 19억 캐나다달러)에 매각하는 계약을 체결했다고 발표했습니다. WRB 합작법인은 일리노이의 우드리버 정유공장과 텍사스의 보거 정유공장을 포함하며, 총 원유 처리 능력은 일일 495,000배럴입니다.
매각 후 Cenovus의 다운스트림 사업은 전액 보유 자산에 집중할 예정이며, 여기에는 로이드민스터 업그레이더, 로이드민스터 정유공장, 리마 정유공장, 톨리도 정유공장, 슈피리어 정유공장이 포함되어 총 원유 처리 능력은 일일 472,800배럴입니다. 거래 대금은 순부채 상환과 자사주 매입 확대를 통한 주주 환원 가속화에 사용될 예정입니다. 회사는 이미 3분기(8월까지)에 보통주 1,880만주를 3억8,800만 달러에 매입했습니다.
Cenovus Energy (NYSE:CVE) a annoncé un accord visant à céder sa participation de 50 % dans WRB Refining LP à Phillips 66 pour 1,4 milliard de dollars US (environ 1,9 milliard de CAD). La coentreprise WRB inclut la raffinerie de Wood River dans l'Illinois et celle de Borger au Texas, avec une capacité combinée de traitement du pétrole brut de 495 000 barils par jour.
Après cette cession, les activités aval de Cenovus se concentreront sur ses actifs en pleine propriété, notamment le Lloydminster Upgrader, la raffinerie de Lloydminster, la raffinerie de Lima, la raffinerie de Toledo et la raffinerie de Superior, pour une capacité totale de traitement du brut de 472 800 barils par jour. Le produit de la transaction sera utilisé pour réduire la dette nette et accélérer le retour aux actionnaires par des rachats d'actions accrus. La société a déjà racheté 18,8 millions d'actions ordinaires pour 388 millions de dollars au troisième trimestre jusqu'en août.
Cenovus Energy (NYSE:CVE) hat eine Vereinbarung zum Verkauf seines 50%-Anteils an WRB Refining LP an Phillips 66 für 1,4 Milliarden US-Dollar (ca. 1,9 Milliarden CAD) bekanntgegeben. Das WRB-Joint-Venture umfasst die Wood River Raffinerie in Illinois und die Borger Raffinerie in Texas mit einer kombinierten Rohöldurchsatzkapazität von 495.000 Barrel pro Tag.
Nach dem Verkauf wird sich Cenovus’ Downstream-Geschäft auf vollständig im Besitz befindliche Anlagen konzentrieren, darunter das Lloydminster Upgrader, die Lloydminster Raffinerie, die Lima Raffinerie, die Toledo Raffinerie und die Superior Raffinerie, mit einer gesamten Rohöldurchsatzkapazität von 472.800 Barrel pro Tag. Die Erlöse aus der Transaktion sollen zur Reduzierung der Nettoverschuldung und zur Beschleunigung der Aktionärsrenditen durch erhöhte Aktienrückkäufe verwendet werden. Das Unternehmen hat bereits im dritten Quartal bis August 18,8 Millionen Stammaktien für 388 Millionen Dollar zurückgekauft.
- Sale of WRB stake for US$1.4 billion in cash strengthens balance sheet
- Proceeds to be used for debt reduction and increased share repurchases
- Strategic focus on fully-controlled downstream assets with 55% heavy oil throughput capacity
- Already executed $388 million in share buybacks in Q3 2025
- Reduction in total refining capacity by 247,500 barrels per day
- Loss of strategic partnership with Phillips 66
Insights
Cenovus's $1.9B WRB divestiture streamlines operations while boosting shareholder returns through accelerated share repurchases.
Cenovus Energy's
The divestiture aligns perfectly with CEO Jon McKenzie's vision of concentrating on assets where Cenovus has operational control while ensuring physical integration with its core heavy oil production. The remaining downstream assets - Lloydminster Upgrader, Lloydminster Refinery, Lima Refinery, Toledo Refinery, and Superior Refinery - will provide approximately
Financially, this move strengthens Cenovus's balance sheet by directing proceeds toward debt reduction while simultaneously accelerating shareholder returns through enhanced share repurchases. The company has already demonstrated commitment to capital returns by repurchasing 18.8 million shares for
The decision to exit WRB while maintaining substantial downstream capacity suggests Cenovus is prioritizing operational efficiency and direct control over its value chain rather than simply maximizing refining scale. By focusing on assets that process their own production, Cenovus creates a more resilient, integrated model that should provide more consistent margins across commodity price cycles.
CALGARY, Alberta, Sept. 09, 2025 (GLOBE NEWSWIRE) -- Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) today announced it has reached an agreement for the sale, indirectly through wholly-owned subsidiaries, of its
“This transaction aligns with our strategy of owning and operating the assets that are core to our business. After the sale of WRB, our downstream business will be more focused, comprised of assets we control, which provide physical integration and egress for our leading upstream heavy oil business,” said Jon McKenzie, Cenovus President & Chief Executive Officer. “The proceeds from this transaction will allow us to accelerate shareholder returns over the near term.”
The WRB joint venture includes the Wood River Refinery in Illinois and the Borger Refinery in Texas, which have combined crude throughput capacity of 495,000 barrels per day (bbls/d), or 247,500 bbls/d net to Cenovus. After divesting its interest in WRB, Cenovus’s downstream business will be comprised of the Lloydminster Upgrader, Lloydminster Refinery, Lima Refinery, Toledo Refinery and Superior Refinery. Total crude throughput capacity of the business will be 472,800 bbls/d with approximately
The transaction is expected to close around the end of the third quarter, subject to the satisfaction of customary closing conditions.
Use of proceeds and shareholder returns update
Proceeds from this transaction will be used to reduce the company’s net debt and to accelerate returns to shareholders in the form of increased share repurchases. In the third quarter, up to the end of August, the company purchased approximately 18.8 million of its common shares for
Advisory
Forward‐looking Information
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 of Cenovus based on certain assumptions made in light of Cenovus’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 document is identified by words such as “continue”, “expect”, “increasing”, “opportunity”, and “will”, or similar expressions and includes suggestions of future outcomes, including, but not limited to, statements about: the sale of Cenovus’s interest in WRB; reduction of net debt; a more focused downstream business; physical integration and egress for upstream assets; throughput capacity; and timing of closing of the transaction.
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. The factors or assumptions on which the forward‐looking information in this news release are based include, but are not limited to: the completion of the transaction on anticipated terms and timing, or at all; the satisfaction of customary closing conditions; general economic, market and business conditions; commodity prices; ability to increase shareholder returns; and the assumptions inherent in Cenovus’s 2025 corporate guidance available on cenovus.com.
The risk factors and uncertainties that could cause actual results to differ materially from the forward‐looking information in this news release include, but are not limited to: changes to general economic, market and business conditions; not completing the transaction on anticipated terms and timing, or at all, including the satisfaction of customary closing conditions; inability to increase shareholder returns; volatility of, and other assumptions regarding, commodity prices; product supply and demand and other risks identified under “Risk Management and Risk Factors” and “Advisory” in Cenovus’s Management’s Discussion and Analysis (MD&A) for the year ended December 31, 2024.
Except as required by applicable securities laws, Cenovus disclaims any intention or obligation to publicly update or revise any forward‐looking statements, 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. 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 MD&A for the periods ended December 31, 2024 and June 30, 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 (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 environmental, social and governance considerations into its business plans. Cenovus common shares and warrants 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.
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FAQ
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