Cenovus Energy Sells Heritage Royalty Limited Partnership - Quick Facts

(RTTNews) - Cenovus Energy Inc. (CVE.TO, CVE) announced it has reached an agreement to sell Heritage Royalty Limited Partnership, a wholly-owned subsidiary, to Ontario Teachers' Pension Plan for gross cash proceeds of approximately $3.3 billion. Heritage Royalty Limited Partnership holds approximately 4.8 million gross acres of royalty interest and mineral fee title lands in Alberta, Saskatchewan and Manitoba.

Brian Ferguson, Cenovus President & CEO said: "We believe this agreement captures significant value for Cenovus shareholders from our royalty and fee lands business. The proceeds from this sale will strengthen our balance sheet and provide us with greater resilience during these uncertain times as well as the flexibility to invest in organic projects with strong returns."

The company said its net debt to capitalization ratio, which was 27% at the end of the first quarter, will significantly improve with the transaction. Cenovus's consolidated production, on a pro forma basis, will be reduced by the 7,800 BOE/d of third-party royalty interest volumes, as a result of the transaction.