Cenovus Energy announces redemption of Series 1 & 2 Preferred Shares
MWN-AI** Summary
Cenovus Energy Inc. announced today its decision to redeem its 2.577% Series 1 Preferred Shares and 3.948% Series 2 Preferred Shares on March 31, 2026, a move valued at approximately $300 million. The preferred shares, collectively known as the Series 1 & 2 Preferred Shares, will be redeemed at a price of $25.00 per share. This redemption is expected to be funded primarily through cash on hand.
To shareholders, the company also declared final quarterly dividends prior to the redemption: $0.16106 for each Series 1 Preferred Share and $0.24337 for each Series 2 Preferred Share, both payable on March 31, 2026, to those on record by March 13, 2026. Investors holding the preferred shares are encouraged to contact Cenovus’s Registrar and Transfer Agent, Computershare Investor Services Inc., for details regarding the redemption process. Beneficial holders, who do not directly hold the shares, should reach out to their brokers or financial intermediaries for instructions on receiving their redemption payments.
In its statement, Cenovus acknowledged that the information is forward-looking and subject to various risks and uncertainties inherent in the energy sector. The company cautioned readers not to place undue reliance on its projections, which include the completion and funding of the redemption and the expected dividend payments. For further insights into risk factors and assumptions affecting the company's outlook, investors are referred to Cenovus’s Management’s Discussion and Analysis for the period ending December 31, 2025, as well as other regulatory filings available on SEDAR+ and the company’s website.
Cenovus Energy Inc., headquartered in Calgary, operates as an integrated energy company involved in oil and natural gas production, upgrading, refining, and marketing across Canada and the U.S. It continues to focus on maximizing value through responsible and sustainable practices.
MWN-AI** Analysis
Cenovus Energy's announcement regarding the redemption of its Series 1 and Series 2 Preferred Shares on March 31, 2026, signifies a strategic move aimed at optimizing capital structure and maximizing shareholder value. The redemption at a set price of $25.00 per share results in an aggregate payout of $300 million, primarily funded through cash on hand. This reflects Cenovus's commitment to maintaining robust liquidity and potentially reallocating resources to pursue growth opportunities or enhance shareholder returns.
For investors holding these preferred shares, this marks the conclusion of their investment, as the final dividends will be disbursed on the same redemption date. The dividends—$0.16106 for Series 1 and $0.24337 for Series 2—offer a modest yield until the shares are redeemed. While these dividends provide one last opportunity for income, investors should be aware of the limited upside as the redemption date approaches.
Market participants should consider the implications of this redemption on Cenovus's overall financial health. The use of cash for redemption, rather than debt financing, illustrates a prudent approach to liabilities, suggesting that the company may be in a strong liquidity position. This also can enhance earnings per share moving forward, as the preferred dividend obligations will cease.
Nevertheless, investors should remain vigilant about the operational landscape and the macroeconomic factors affecting Cenovus, including oil price volatility, regulatory challenges, and sustainability efforts that could influence profitability. As the energy market continues to evolve, prospective investors might want to evaluate Cenovus's common shares for potential growth and stability, while being mindful of the risks articulated in their forward-looking statements.
Overall, while the redemption provides clarity for existing preferred shareholders, it also encourages a reevaluation of Cenovus's equity for those looking to capture growth in the energy sector.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
CALGARY, Alberta, Feb. 26, 2026 (GLOBE NEWSWIRE) -- Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) today announced it will exercise its right to redeem its 2.577% Series 1 Preferred Shares (the “Series 1 Preferred Shares”) and its 3.948% Series 2 Preferred Shares (the “Series 2 Preferred Shares”, collectively, the “Series 1 & 2 Preferred Shares”) on March 31, 2026 (the “Redemption”). All of the Series 1 & 2 Preferred Shares outstanding will be redeemed at the price of $25.00 per share, for an aggregate amount payable to holders of $300 million, less required withholdings, if any, funded primarily from cash on hand.
As previously announced, the Company’s Board of Directors has declared quarterly dividends of $0.16106 per Series 1 Preferred Share and $0.24337 per Series 2 Preferred Share, each payable on March 31, 2026, to shareholders of record as of March 13, 2026. These will be the final dividends paid on the Series 1 & 2 Preferred Shares.
Inquiries from registered holders of Series 1 & 2 Preferred Shares should be directed to Cenovus’s Registrar and Transfer Agent, Computershare Investor Services Inc. at 1-866-332-8898 or (514) 982-8717 outside North America. Beneficial holders, who are not directly registered holders of Series 1 & 2 Preferred Shares, should contact the financial institution, broker or other intermediary through which they hold these shares to confirm how they will receive their redemption proceeds.
Advisory
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, based on certain assumptions made in light of the Company'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 news release is identified by words such as “payable”, “should”, “will” or similar expressions and includes suggestions of future outcomes, including, but not limited to, statements about: the completion of the Redemption, including the timing and funding thereof and the dividend payments with respect to the Series 1 & 2 Preferred Shares.
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.
Except as required by applicable securities laws, Cenovus disclaims any intention or obligation to publicly update or revise any forward?looking information, 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. Accordingly, readers are cautioned not to place undue reliance on 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 Management’s Discussion and Analysis for the period ended December 31, 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, which are 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 sustainability considerations into its business plans. Cenovus common shares 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.
Find Cenovus on Facebook, LinkedIn, YouTube and Instagram.
Cenovus contacts:
Investors
Investor Relations general line
403-766-7711
Media
Media Relations general line
403-766-7751
FAQ**
How will the redemption of the 2.577% Series 1 Preferred Shares and 3.948% Series 2 Preferred Shares impact Cenovus Energy Inc. (CVE) in terms of its cash flow and future capital projects?
What strategic reasons does Cenovus Energy Inc. (CVE) have for choosing to redeem its preferred shares rather than pursuing other financing options?
Given the final dividends to be paid on the Series 1 & 2 Preferred Shares, what can investors expect in terms of dividend policy moving forward for Cenovus Energy Inc. (CVE)?
How does the redemption of these preferred shares align with Cenovus Energy Inc. (CVE)'s overall long-term sustainability and growth strategy?
**MWN-AI FAQ is based on asking OpenAI questions about Cenovus Energy Inc. (TSXC: CVE:CC).
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