06:40 AM EDT, 09/04/2025 (MT Newswires) -- Strathcona Resources ( STHRF ) said late Wednesday it will distribute about C$2.14 billion to shareholders as part of a previously disclosed special payout.

The company said the distribution, tied to a statutory plan of arrangement, will allow shareholders to elect to receive the payout as either a dividend or a return of capital.

"The special distribution will be paid in connection with the reorganization of Strathcona's business into a pure-play heavy oil company and discontinuance of its Montney business segment and derived from the cash proceeds received from the sale of such business segment," the company said.

Strathcona said it expects to mail shareholder materials in October 2025, with the shareholder meeting and payment of the distribution to follow in the fourth quarter of 2025. The terms remain subject to board, regulatory, and other approvals.

The update comes as Strathcona acquired additional MEG Energy ( MEGEF ) shares to block Cenovus Energy's ( CVE ) bid for the company.

Strathcona shares fell about 1.7% on the Toronto Stock Exchange Wednesday.