We view this acquisition as strategically valuable to Cenovus, potentially well beyond the ~$75 mm purchase price. Canexus had invested over $500 mm in this terminal, at which Cenovus will now have the option to have greater control over its crude-by-rail shipments, with opportunities to expand transloading capacity and crude oil storage capacity, as well as room to accommodate a diluent recovery unit.

05 Jun 2015
$75 mm Acquisition of Bruderheim Rail Terminal

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$75 mm Acquisition of Bruderheim Rail Terminal
Cenovus Energy Inc. (CVE:TSE) | 0 0 (-5.3%) | Mkt Cap: 11,501m
- Published:
05 Jun 2015 -
Author:
Michael P. Dunn -
Pages:
4 -
We view this acquisition as strategically valuable to Cenovus, potentially well beyond the ~$75 mm purchase price. Canexus had invested over $500 mm in this terminal, at which Cenovus will now have the option to have greater control over its crude-by-rail shipments, with opportunities to expand transloading capacity and crude oil storage capacity, as well as room to accommodate a diluent recovery unit.