The sale, conducted through Cenovus’ wholly owned subsidiaries, is expected to generate $1.4 billion in cash, with final figures subject to standard closing adjustments.
Cenovus Energy Inc. (CVE) announced on Tuesday that it has entered into an agreement to divest its 50% stake in WRB Refining LP to its joint venture partner, Phillips 66 (PSX).
The sale, conducted through its wholly owned subsidiaries, is expected to generate $1.4 billion in cash for Cenovus, with final figures subject to standard closing adjustments.
Cenovus Energy stock inched 0.3% higher in Tuesday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘neutral’ territory amid ‘normal’ message volume levels.
The WRB partnership comprises two major refineries: the Wood River facility in Illinois and the Borger plant in Texas. Together, these refineries process 495,000 barrels of crude oil per day, with Cenovus’s share totaling 247,500 barrels daily.
Once the sale is finalized, Cenovus’s refining footprint will include the Lloydminster Upgrader and Refinery, as well as plants in Lima, Toledo, and Superior. Collectively, these facilities will be capable of processing 472,800 barrels per day, with heavy oil accounting for approximately 55% of that capacity.
“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 President and CEO Jon McKenzie. “The proceeds from this transaction will allow us to accelerate shareholder returns over the near term.”
The transaction is anticipated to be completed by the end of the third quarter. Cenovus plans to use proceeds from the sale to pay down debt and enhance returns to shareholders.
Cenovus Energy stock has gained over 5% in 2025 and has shed over 3% in the last 12 months.
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