Strathcona Resources Cancels Acquisition Proposal for MEG Energy
Written by Emily J. Thompson, Senior Investment Analyst
Source: WSJ
Strathcona Resources Terminates Bid: Strathcona Resources has ended its takeover bid for MEG Energy following a competitive move by Cenovus Energy, which increased its offer to acquire the Canadian oil-sands producer.
Revised Standstill Agreement: The termination was influenced by changes in the standstill agreement between MEG's board and Cenovus, allowing Cenovus to purchase up to 9.9% of MEG's shares to strengthen its position against Strathcona's influence.
Analyst Views on CVE
Wall Street analysts forecast CVE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVE is 22.66 USD with a low forecast of 20.00 USD and a high forecast of 32.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 18.490
Low
20.00
Averages
22.66
High
32.00
Current: 18.490
Low
20.00
Averages
22.66
High
32.00
About CVE
Cenovus Energy Inc. is a Canada-based integrated energy company. The Company has 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's segments include Upstream and Downstream. Its Upstream segment includes Oil Sands, Conventional, and Offshore. Its Downstream segment consists of Canadian Manufacturing and the United States Manufacturing. The Company's Upstream operations include oil sands projects in northern Alberta, in-situ thermal oil production at Christina Lake in northeast Alberta, thermal and conventional crude oil, natural gas and natural gas liquids (NGLs) projects across Western Canada, crude oil production offshore Newfoundland and Labrador and natural gas and NGLs production offshore China and Indonesia. Its Downstream operations include upgrading and refining operations in Canada and the United States, and commercial fuel operations across Canada.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
