Cenovus’s intention to launch a share buyback program, along with its recently announced dividend increase, are consistent with the company’s capital allocation framework, which supports enhancing value for investors by returning cash to shareholders, generating strong returns on capital investment and deleveraging. Cenovus believes there are times when the market price of its common shares may not fully reflect the underlying value of its business and future prospects. Depending on the trading price of its common shares and other relevant factors, the company believes purchasing common shares represents an attractive investment opportunity and is in the best interest of Cenovus and its shareholders.
The number of shares authorized for purchase represents 10% of Cenovus's public float, as defined by the TSX, as of
Cenovus has also entered into an automatic share purchase plan (“ASPP”), with
The actual number of common shares that may be purchased under the NCIB and the timing of any such purchases will be determined by Cenovus. The average daily trading volume through the facilities of the TSX during the most recently completed six-month period was 5,765,664 common shares. Consequently, daily purchases through the facilities of the TSX will be limited to 1,441,416 common shares, which is equal to 25% of the average daily trading volume, other than block purchase exceptions. Purchases over the NYSE will be made in compliance with the volume limitations in Rule 10b-18 in relation to average daily trading volume and block trades. All common shares acquired by Cenovus under the NCIB will be cancelled.
Advisory
Forward-looking Information
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, including the
Forward-looking information in this news release is identified by words such as “intention” or “will” or similar expressions and includes suggestions of future outcomes, including, but not limited to, statements about launching a share buyback program under an NCIB and acquiring and cancelling Cenovus common shares under such program.
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.
Readers are cautioned that other events or circumstances, although not listed above, could cause Cenovus’s actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking statements. For a full discussion of material risk factors, refer to "Risk Management and Risk Factors" in Cenovus’s Management’s Discussion and Analysis of the financial and operating results for the year ended
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