Canadian traders ought to pay shut consideration to the TSX’s power sector as year-end approaches. It has gained 16% within the final six months and the momentum ought to carry over into 2026. A robust purchase among the many sector heavyweights is Cenovus Power (TSX:CVE).
The big-cap CVE (+40%) has outperformed the sector and the broader market (+21%) throughout the identical interval. This $44.6 billion firm will quickly be Canada’s second-largest oil and fuel producer after rising victorious in an intense bidding warfare. Trade specialists suppose the five-month-long battle has reshaped the nation’s oil patch.
On November 6, 2025, MEG Power shareholders authorised Cenovus Power’s proposed takeover. The transaction is price $8.6 billion. Market analysts’ suggestions are “purchase” to “robust purchase” following the authorised merger. A lot of them raised their value targets.
As of this writing, CVE trades at $25.40 per share and pays a 3.1% dividend. The 12-month excessive value goal is $32 (+26%). A $6,985 funding (275 shares) will generate $218.63 in passive revenue in a single yr.
Beneficial transaction
The frequent sentiment concerning the transaction is that Cenovus Power will profit from the longer-term momentum and powerful upside. Each corporations consider the shut proximity of their oilsands properties will end in substantial price financial savings and operational efficiencies. It’s a consolidation of the highest-quality assets throughout the oil sands.
Cenovus expects 720,000 barrels of oil equal (boe/d) day by day oil sands manufacturing post-merger. The MEG Power portfolio provides 110,000 barrels. Administration stated output might develop to 850,000 boe/d in 2028.
Strathcona, the erstwhile rival to win MEG Power, has thrown in its assist for the deal. Below a voting assist settlement, the corporate has agreed to vote its MEG frequent shares in favour of the transaction. In the meantime, Cenovus will promote sure property to Strathcona and acquire proceeds of as much as $150 million.
Monetary highlights
This yr has been particular for Cenovus Power, particularly in upstream manufacturing and crude refining. Its Upstream manufacturing of 832,900 boe/d in Q3 2025 was the best ever recorded by the Oil Sands section. The U.S. Refining crude throughput of 605,300 barrels per day, with a 99% utilization charge, was additionally an all-time excessive.
Jon McKenzie, Cenovus President & CEO, stated, “We delivered document volumes in each our Upstream and Downstream companies this quarter, whereas sustaining our dedication to protected, dependable and cost-effective operations.”
Within the three months ending September 30, 2025, revenues dipped 4.5% year-over-year to $13.2 billion, whereas web earnings rose 56.8% to $1.3 billion in comparison with Q3 2024.
“Our main development tasks are all approaching completion and our Downstream enterprise is reaching its potential with constantly robust working efficiency this quarter,” McKenzie added. Cenovus Power will consider additional upside alternatives.
Cenovus pays quarterly dividends and boasts a formidable monitor document. It has by no means missed a cost in 52 consecutive quarters or 13 years.
The Spine
The oil sands enterprise is the spine of Cenovus Power. Via asset improvement and working technique, it could keep and develop its aggressive benefit. Extra importantly, the long-life, low-decline oil sands property present predictable, high-margin manufacturing. This must be a serious consideration for potential traders.
