The $2.5-$3.0 billion valuation for CVE’s royalty lands suggested by a recent media report does not seem unreasonable to us if the acquirer is tax-exempt. If CVE receives $2.5 billion in net proceeds for these assets, we estimate that this will lower CVE’s DACF and Net Debt to Cash Flow multiples by 0.5x+ going forward. We continue to advocate owning Cenovus shares.