11:10 AM EDT, 09/09/2025 (MT Newswires) -- Tudor, Pickering, Holt on Tuesday maintained its buy rating on the shares of Cenovus Energy ( CVE ) with a C$28.00 price target after the company agreed to sell its stake in the WRB refining joint venture to partner Phillips 66 (PSX) for US$1.4 billion.

"Neutral. CVE this morning announced that it's entered into an agreement to sell its 50% interest in the WRB JV to its partner and the operator PSX. We like the deal in the context of CVE monetizing non-core / non-integrated downstream assets and bringing cash in the door (all-cash deal), especially with the potential MEG acquisition looming. The one offset we'd flag is that the $1.4B / C$1.9B valuation screens shy of the low end of our estimated ~C$1.6-3.0B, with the high-end based on 8.5x rough math on TPHe WRB FY'24 EBITDA and the low-end potentially more reflective of CVE's US downstream earnings in H1'25 (full disclosure unavailable). However, this may not come as a surprise given PSX's position as the natural buyer. The assets consist of the 345mbpd Wood River and 149mbpd Borger refineries," analyst Jeoffrey Lambujon wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 22.97, Change: +0.85, Percent Change: +3.84