Brief: Athabasca Oil Creates 'Duvernay Energy Corporation' With Cenovus Energy To Accelerate Value In The Prolific Kaybob Duvernay Play

Athabasca Oil

19/12/2023 23:33

Dec 19 (Reuters) - Athabasca Oil Corp  ATH.TO :
    * ATHABASCA OIL ANNOUNCES CREATION OF “DUVERNAY ENERGY
CORPORATION” WITH CENOVUS ENERGY TO ACCELERATE VALUE IN THE
PROLIFIC KAYBOB DUVERNAY PLAY
    * ATHABASCA OIL CORP - ATHABASCA WILL OWN A 70% EQUITY
INTEREST IN
DUVERNAY ENERGY
    * ATHABASCA OIL CORP - WILL MANAGE DUVERNAY ENERGY THROUGH A
MANAGEMENT AND OPERATING SERVICES AGREEMENT
    * ATHABASCA OIL CORP - DUVERNAY ENERGY'S BOARD OF DIRECTORS
WILL
INCLUDE THREE MEMBERS NOMINATED BY ATHABASCA AND ONE MEMBER
NOMINATED BY CENOVUS
    * ATHABASCA OIL CORP - ATHABASCA AND DUVERNAY ENERGY WILL BE
POSITIONED AS TWO SEPARATE COMPANIES WITH INDEPENDENT CAPITAL
ALLOCATION FRAMEWORKS
    * ATHABASCA OIL - NEW ENTITY WILL ACCELERATE VALUE CAPTURE
FOR
CO'S SHAREHOLDERS BY PROVIDING A CLEAR PATH FOR ACCRETIVE
PRODUCTION, CASH FLOW GROWTH
    * ATHABASCA OIL CORP - TRANSACTION IS ALIGNED WITH
ATHABASCA'S
STRATEGY TO MAXIMIZE CASH FLOW PER SHARE GROWTH AND RETURN
CAPITAL TO SHAREHOLDERS
    * ATHABASCA OIL CORP - TRANSACTION WILL HAVE AN EFFECTIVE
DATE OF
JANUARY 1, 2024, IS EXPECTED TO CLOSE IN Q1 OF 2024
    * ATHABASCA OIL CORP - TRANSACTION DOES NOT REDUCE
ATHABASCA'S
2024 FREE CASH FLOW FORECAST WHICH IS MAINTAINED AT ABOUT $325
MILLION
    * ATHABASCA OIL CORP - ON CLOSING OF TRANSACTION COMPANY
WILL
PROVIDE UPDATED GUIDANCE FOR DUVERNAY ENERGY AND ATHABASCA
    * ATHABASCA OIL CORP - MAINTAINS ITS 2024 RETURN OF CAPITAL
COMMITMENTS OUTLINED IN ITS BUDGET RELEASE ON DECEMBER 6, 2023
    * ATHABASCA OIL CORP - PRO FORMA TRANSACTION, FORECASTS
ADJUSTED
FUNDS FLOW OF ABOUT $460 MILLION IN 2024 EXCLUDING 70% EQUITY
INTEREST IN DUVERNAY ENERGY
    * ATHABASCA OIL CORP - TRANSACTION DOES NOT REDUCE
ATHABASCA'S
2024 FREE CASH FLOW FORECAST WHICH IS MAINTAINED AT ABOUT $325
MILLION
    * ATHABASCA OIL - ROBERT BROEN, PRESIDENT AND CEO OF
ATHABASCA OIL
CORPORATION, WILL ALSO ASSUME ROLE OF CHAIRMAN, PRESIDENT AND
CEO OF DUVERNAY ENERGY

Source text for Eikon:  ID:nGNXXbDKm 
Further company coverage:  ATH.TO 

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