Cenovus’ (NYSE:CVE) stock declined both because of falling oil prices and because of the company’s agreement to buy a material package of assets from ConocoPhillips. Cenovus knew the assets well because it already operated there in partnership with ConocoPhillips, and we think the price it paid was fair. But to complete the deal, Cenovus had to issue stock at a depressed valuation.
From the First Eagle Global Value Fund first quarter 2017 commentary.
