We feel Cenovus received fair value for this transaction, although we are unclear as to why GORRs on Weyburn and Pelican Lake were added to the sale. The royalty sale gives the Company flexibility on the balance sheet and optionality of best use of proceeds, which in our view, likely entails accelerating the capital program at Foster Creek and Christina Lake. We have maintained our target price of $25.00/share and Outperform ranking.
