Cenovus Energy (CVE) Considers Selling Conventional Assets in Alberta

The share price of Cenovus Energy Inc. (NYSE:CVE) surged by 7.47% between January 22 and January 29, 2026, putting it among the Energy Stocks that Gained the Most This Week.

Cenovus Energy Inc. (NYSE:CVE) is an integrated energy company with oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining, and marketing operations in Canada and the United States.

A Reuters report on January 21 revealed that Cenovus Energy Inc. (NYSE:CVE) is considering divesting its conventional oil and gas assets in the Deep Basin of Alberta, as the company looks to reduce debt following its C$8.5 billion acquisition of MEG Energy in November 2025. Cenovus has recently contacted potential buyers to gauge interest in the assets, which are expected to sell for approximately C$3 billion ($2.17 billion). However, the plans are not final yet, and the company may ultimately decide to retain the said assets.

The strategic move comes as Cenovus Energy Inc. (NYSE:CVE) sharpens its focus on its core oil sands business, especially after its takeover of MEG, which added the highly coveted Christina Lake project to its portfolio. Last month, the company also revealed plans to invest C$3.6 billion in its oil sands business this year, up from around C$2.8 billion allocated in the 2025 budget. Moreover, the divestment will allow Cenovus to strengthen its balance sheet after its net debt soared to around C$10.7 billion following the MEG acquisition. The company is aiming to bring its net debt down to C$4 billion over time.

Cenovus Energy Inc. (NYSE:CVE) was recently included in our list of the 10 Best Natural Gas Stocks to Buy Right Now.

While we acknowledge the potential of CVE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 High Yield Utility Stocks to Buy in 2026 and 10 Best American Oil and Gas Stocks to Buy

Disclosure: None.