08:11 AM EDT, 09/09/2025 (MT Newswires) -- Cenovus Energy ( CVE ) was at last look up 1.5% in US premarket after saying Tuesday it is selling its 50% interest in WRB Refining to its joint venture partner Phillips 66 for US$1.4 billion in cash.

The WRB joint venture includes the Wood River Refinery in Illinois and the Borger Refinery in Texas, with a combined crude throughput capacity of 247,500 bbls/d net to Cenovus. After divesting its interest in WRB, Cenovus's downstream business will consist of the Lloydminster Upgrader, Lloydminster Refinery, Lima Refinery, Toledo Refinery and Superior Refinery. Total crude throughput capacity of the business will be 472,800 bbls/d with 55% heavy oil throughput capacity, a statement said.

The company, which is currently battling with Strathcona Resources ( STHRF ) for the right to buy MEG Energy ( MEGEF ) , said the transaction aligns with its strategy of owning and operating core assets.

"After the sale of WRB, our downstream business will be more focused, comprised of assets we control, which provide physical integration and egress for our leading upstream heavy oil business," said Jon McKenzie, chief executive officer. "The proceeds from this transaction will allow us to accelerate shareholder returns over the near term."

Proceeds will be used to pay down debt and for share buybacks. Cenovus said that in the third quarter, up to the end of August, it had purchased 18.8 million shares for $388 million, at an average price of $20.59 per share.

The transaction is expected to close around the end of the third quarter.

Cenovus Energy ( CVE ) is up US$0.24, to US$16.25 in U.S. pre-market trade. It closed up $0.01, to $22.12, on the Toronto Stock Exchange yesterday.