Cenovus announces second-quarter 2025 results
Cenovus Energy (NYSE:CVE) reported Q2 2025 results with $2.4 billion in operating cash flow, $1.5 billion in adjusted funds flow, and $355 million in free funds flow. The company achieved total upstream production of 765,900 BOE/d and downstream crude throughput of 665,800 bbls/d with 92% utilization rate.
Key operational milestones include first oil at Narrows Lake with expected production of 20,000-30,000 bbls/d by year-end, installation of the West White Rose project's concrete gravity structure, and completion of major turnarounds at Toledo, Sunrise, and Foster Creek facilities ahead of schedule. The company returned $819 million to shareholders through share purchases, dividends, and preferred share redemption.
Net earnings were $851 million ($0.45 per share), slightly down from $859 million in Q1. The company maintains $7.2 billion in long-term debt and $4.9 billion in net debt, working towards a $4.0 billion net debt target.
Cenovus Energy (NYSE:CVE) ha riportato i risultati del secondo trimestre 2025 con 2,4 miliardi di dollari di flusso di cassa operativo, 1,5 miliardi di dollari di flusso di fondi rettificato e 355 milioni di dollari di flusso di fondi libero. L'azienda ha raggiunto una produzione totale a monte di 765.900 BOE/g e un flusso di greggio a valle di 665.800 barili/giorno con un tasso di utilizzo del 92%.
I principali traguardi operativi includono il primo petrolio a Narrows Lake con una produzione prevista di 20.000-30.000 barili/giorno entro fine anno, l'installazione della struttura in cemento a gravità del progetto West White Rose e il completamento anticipato delle principali revisioni presso gli impianti di Toledo, Sunrise e Foster Creek. L'azienda ha restituito 819 milioni di dollari agli azionisti attraverso riacquisti di azioni, dividendi e il riscatto di azioni privilegiate.
L'utile netto è stato di 851 milioni di dollari (0,45 dollari per azione), leggermente inferiore agli 859 milioni del primo trimestre. La società mantiene un debito a lungo termine di 7,2 miliardi di dollari e un debito netto di 4,9 miliardi, lavorando per raggiungere un obiettivo di debito netto di 4,0 miliardi.
Cenovus Energy (NYSE:CVE) reportó resultados del segundo trimestre de 2025 con un flujo de caja operativo de 2.4 mil millones de dólares, 1.5 mil millones en flujo de fondos ajustado y 355 millones en flujo de fondos libre. La compañía alcanzó una producción total upstream de 765,900 BOE/d y un procesamiento de crudo downstream de 665,800 barriles/día con una tasa de utilización del 92%.
Los hitos operativos clave incluyen el primer petróleo en Narrows Lake con una producción esperada de 20,000-30,000 barriles/día para fin de año, la instalación de la estructura de gravedad de concreto del proyecto West White Rose y la finalización anticipada de importantes paradas en las instalaciones de Toledo, Sunrise y Foster Creek. La compañía devolvió 819 millones de dólares a los accionistas mediante recompras de acciones, dividendos y redención de acciones preferentes.
Las ganancias netas fueron de 851 millones de dólares (0.45 dólares por acción), ligeramente por debajo de los 859 millones del primer trimestre. La empresa mantiene una deuda a largo plazo de 7.2 mil millones de dólares y una deuda neta de 4.9 mil millones, trabajando para alcanzar un objetivo de deuda neta de 4.0 mil millones.
Cenovus Energy (NYSE:CVE)는 2025년 2분기 실적을 발표하며 24억 달러의 영업 현금 흐름, 15억 달러의 조정 자금 흐름, 3억 5,500만 달러의 자유 자금 흐름을 기록했습니다. 회사는 상류 생산량 총 765,900 배럴 석유 등가량/일과 하류 원유 처리량 665,800 배럴/일, 92% 가동률을 달성했습니다.
주요 운영 이정표로는 연말까지 20,000-30,000 배럴/일의 생산이 예상되는 Narrows Lake 첫 원유 생산, West White Rose 프로젝트의 콘크리트 중력 구조물 설치, Toledo, Sunrise 및 Foster Creek 시설의 주요 정비 작업 조기 완료가 포함됩니다. 회사는 주식 매입, 배당금 및 우선주 상환을 통해 8억 1,900만 달러를 주주에게 환원했습니다.
순이익은 8억 5,100만 달러(주당 0.45달러)로 1분기 8억 5,900만 달러보다 약간 감소했습니다. 회사는 72억 달러의 장기 부채와 49억 달러의 순부채를 유지하며 40억 달러 순부채 목표를 향해 나아가고 있습니다.
Cenovus Energy (NYSE:CVE) a annoncé ses résultats du deuxième trimestre 2025 avec 2,4 milliards de dollars de flux de trésorerie opérationnel, 1,5 milliard de dollars de flux de fonds ajusté et 355 millions de dollars de flux de fonds libre. La société a atteint une production totale en amont de 765 900 BOE/j et un débit de brut en aval de 665 800 barils/j avec un taux d'utilisation de 92 %.
Les principales étapes opérationnelles comprennent le premier pétrole à Narrows Lake avec une production attendue de 20 000 à 30 000 barils/j d'ici la fin de l'année, l'installation de la structure en béton à gravité du projet West White Rose, et l'achèvement anticipé des grandes opérations de maintenance dans les installations de Toledo, Sunrise et Foster Creek. La société a reversé 819 millions de dollars aux actionnaires par le rachat d'actions, les dividendes et le rachat d'actions privilégiées.
Le bénéfice net s'est élevé à 851 millions de dollars (0,45 dollar par action), en légère baisse par rapport à 859 millions au premier trimestre. La société maintient une dette à long terme de 7,2 milliards de dollars et une dette nette de 4,9 milliards, travaillant à un objectif de dette nette de 4,0 milliards.
Cenovus Energy (NYSE:CVE) meldete Ergebnisse für das zweite Quartal 2025 mit 2,4 Milliarden US-Dollar operativem Cashflow, 1,5 Milliarden US-Dollar bereinigtem Mittelzufluss und 355 Millionen US-Dollar freiem Mittelzufluss. Das Unternehmen erreichte eine gesamte Upstream-Produktion von 765.900 BOE/Tag und eine Downstream-Rohöldurchsatzmenge von 665.800 Barrel/Tag bei einer Auslastungsrate von 92 %.
Wichtige operative Meilensteine umfassen das erste Öl bei Narrows Lake mit einer erwarteten Produktion von 20.000-30.000 Barrel/Tag bis Jahresende, die Installation der Betongravitationsstruktur des West White Rose-Projekts sowie den vorzeitigen Abschluss großer Wartungsarbeiten in den Anlagen Toledo, Sunrise und Foster Creek. Das Unternehmen gab 819 Millionen US-Dollar an die Aktionäre zurück durch Aktienrückkäufe, Dividenden und die Rückzahlung von Vorzugsaktien.
Der Nettogewinn betrug 851 Millionen US-Dollar (0,45 US-Dollar pro Aktie), leicht rückläufig gegenüber 859 Millionen im ersten Quartal. Das Unternehmen hält langfristige Schulden in Höhe von 7,2 Milliarden US-Dollar und eine Nettoverschuldung von 4,9 Milliarden, wobei es auf ein Nettoverschuldungsziel von 4,0 Milliarden hinarbeitet.
- Achieved first oil at Narrows Lake with 20,000-30,000 bbls/d production expected by year-end
- Successfully completed major turnarounds ahead of schedule at multiple facilities
- Generated $2.4 billion in operating cash flow and $355 million in free funds flow
- Returned $819 million to shareholders through dividends and share buybacks
- Maintained strong 92% downstream utilization rate with 665,800 bbls/d throughput
- West White Rose project 92% complete with successful installation milestones
- Net earnings declined to $851 million from $859 million in previous quarter
- Production decreased to 765,900 BOE/d from 818,900 BOE/d in Q1
- Rush Lake facilities temporarily shut-in due to steam release incident
- Downstream operating margin showed $71 million shortfall
- Excess free funds flow showed $306 million shortfall compared to $373 million surplus in Q1
Insights
Cenovus delivered solid Q2 results despite planned maintenance and wildfire disruptions, with strategic projects advancing on schedule toward increased future production.
Cenovus reported
The company's strategic growth projects are progressing well, with several significant milestones achieved. Narrows Lake reached first oil in July, expected to add 20,000-30,000 bbls/d by year-end. The West White Rose project hit key construction targets with the concrete gravity structure installed and topsides placed, keeping the project on track for first oil in Q2 2026. Foster Creek's optimization project is 87% complete, with four new boilers online that will add 80,000 bbls/d of steam capacity.
Financially, Cenovus returned
The quarterly results show resilience in the face of temporary operational challenges. The temporary shut-in of Rush Lake facilities due to a steam release from a casing failure and the Christina Lake wildfire disruption were efficiently managed, with Christina Lake returning to full production in about a week. Production guidance was modestly reduced by 10,000 BOE/d at the midpoint to 805,000-825,000 BOE/d for 2025, primarily reflecting the Rush Lake situation.
The downstream segment showed improvement with a narrowed operating margin shortfall of
The company maintained its quarterly base dividend of
CALGARY, Alberta, July 31, 2025 (GLOBE NEWSWIRE) -- Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) today announced its second-quarter 2025 financial and operating results. The company generated approximately
Highlights
- Achieved first oil at Narrows Lake in July, with production expected to ramp up to peak incremental rates of 20,000 bbls/d - 30,000 bbls/d by the end of the year.
- Delivered major milestones on the West White Rose project, with the concrete gravity structure (CGS) installed on the seabed in June and the topsides placed atop the CGS in mid-July. Hookup and commissioning work has commenced, with drilling expected to begin by year end.
- Advanced the Foster Creek optimization project, with four new boilers brought online in July, which will add approximately 80,000 bbls/d of steam capacity to the facility.
- Completed major turnarounds at Toledo, Sunrise and Foster Creek in the quarter, with exceptional execution, resulting in production at all assets resuming ahead of schedule.
- Returned
$819 million to shareholders, including$301 million through common share purchases,$368 million through common and preferred share dividends and$150 million through the redemption of Cenovus’s Series 7 preferred shares on June 30, 2025.
“Operating performance this quarter was exceptional, with turnaround execution exceeding our targets, major project milestones achieved on time and on budget, and our staff safely and efficiently restoring Christina Lake production following disruption from a wildfire,” said Jon McKenzie, Cenovus President & Chief Executive Officer. “Through the hard work and determination of our people, we have arrived at an inflection point, nearing completion of numerous growth projects and successfully concluding significant maintenance events. As investment in these initiatives is completed, we expect to generate increasing free funds flow.”
Financial summary
| ($ millions, except per share amounts) | 2025 Q2 | 2025 Q1 | 2024 Q2 |
| Cash from (used in) operating activities | 2,374 | 1,315 | 2,807 |
| Adjusted funds flow2 | 1,519 | 2,212 | 2,361 |
| Per share (diluted)2 | 0.84 | 1.21 | 1.26 |
| Capital investment | 1,164 | 1,229 | 1,155 |
| Free funds flow2 | 355 | 983 | 1,206 |
| Excess free funds flow2 | (306) | 373 | 735 |
| Net earnings (loss) | 851 | 859 | 1,000 |
| Per share (diluted) | 0.45 | 0.47 | 0.53 |
| Long-term debt, including current portion | 7,241 | 7,524 | 7,275 |
| Net debt | 4,934 | 5,079 | 4,258 |
Production and throughput
| (before royalties, net to Cenovus) | 2025 Q2 | 2025 Q1 | 2024 Q2 |
| Oil and NGLs (bbls/d)1 | 624,000 | 670,900 | 656,300 |
| Conventional natural gas (MMcf/d) | 851.4 | 887.9 | 867.2 |
| Total upstream production (BOE/d)1 | 765,900 | 818,900 | 800,800 |
| Total downstream crude throughput (bbls/d) | 665,800 | 665,400 | 622,700 |
1 See Advisory for production by product type and by operating segment.
2 Non-GAAP financial measure or contains a non-GAAP financial measure. See Advisory.
Second-quarter results
Operating1
Cenovus’s total revenues were
Total operating margin3 was
Total Upstream production was 765,900 BOE/d in the second quarter, a decrease from 818,900 BOE/d in the first quarter. Christina Lake production was 217,900 bbls/d compared with 237,800 bbls/d in the prior quarter, as a wildfire near the facility temporarily impacted production in the second quarter. The field was shut in on May 29 and operations were restarted safely on June 3, with a return to full production about one week later. Foster Creek production was 186,100 bbls/d compared with 202,700 bbls/d in the first quarter, reflecting planned maintenance during the quarter that was successfully completed with production returning earlier than forecasted. Sunrise production was 50,300 bbls/d compared with 52,100 bbls/d in the first quarter due to planned maintenance at the facility.
Production from the Lloydminster thermal assets was 97,800 bbls/d, a decrease from 109,900 bbls/d in the prior quarter due to an unplanned outage at the Rush Lake facilities in west-central Saskatchewan. The company responded in early May to a steam release from a casing failure in an injection well and as a result, the Rush Lake facilities have been temporarily shut-in. The well has been brought under control, and the company is undertaking an investigation and developing a plan to safely restart production. Lloydminster conventional heavy oil output of 25,000 bbls/d increased from 21,800 bbls/d in the first quarter. Production in the Conventional segment was 119,800 BOE/d, down from 123,900 BOE/d in the previous quarter due in part to third-party outages.
In the Offshore segment, production was 66,300 BOE/d compared with 68,800 BOE/d in the first quarter. In Asia Pacific, production volumes were 53,800 BOE/d, lower than the 57,200 BOE/d in the previous quarter, primarily due to planned maintenance at the Liwan Gas Project. In the Atlantic region, production was 12,500 bbls/d, an increase from 11,600 bbls/d in the prior quarter, due to a full quarter of production from the White Rose field, offset in part by maintenance at the partner-operated Terra Nova field in June.
Total Downstream crude throughput in the second quarter was 665,800 bbls/d, up from 665,400 bbls/d in the first quarter. Crude throughput in Canadian Refining was 112,400 bbls/d, representing a utilization rate of
In U.S. Refining, crude throughput was 553,400 bbls/d, representing a utilization rate of
3 Non-GAAP financial measure. Total operating margin is the total of Upstream operating margin plus Downstream operating margin. See Advisory.
4 Specified financial measure. See Advisory.
5 Adjusted market capture excludes the impact of inventory holding gains or losses. Contains a non-GAAP financial measure. See Advisory.
Financial
Cash from operating activities in the second quarter increased to approximately
Long-term debt, including the current portion, was
Growth projects
In the Oil Sands segment, Narrows Lake achieved first oil in mid-July and will continue ramping up through the remainder of the year. The optimization project at Foster Creek is approximately
Significant progress has been made on the West White Rose project. The CGS was towed out and installed on the seabed ahead of schedule during the second quarter and the project’s topsides were safely lifted and set in place atop the CGS in mid-July. Hookup and commissioning have commenced, and the project is approximately
2025 guidance update
Cenovus has revised its 2025 corporate guidance to reflect the company’s updated outlook for the remainder of the year. It is available on cenovus.com under Investors.
Changes to the company’s 2025 guidance include:
- Total upstream production of 805,000 BOE/d to 825,000 BOE/d, a decrease of 10,000 BOE/d at the midpoint. This includes the impacts of the temporary shut in of the Rush Lake facilities.
- Canadian downstream throughput of 105,000 bbls/d to 110,000 bbls/d, an increase of 5,000 bbls/d at the midpoint, reflecting strong year-to-date performance.
- Reducing the range of Canadian Refining per-unit operating expenses, excluding turnaround costs, to
$11.00 /bbl to$12.00 /bbl, as a result of higher throughput rates and lower expected costs. - Downstream turnaround expenses of
$420 million to$450 million have been reduced by$45 million at the midpoint, primarily due to early completion of the Toledo turnaround.
The company has also updated its commodity price assumptions and guidance range for cash taxes. Cenovus continues to execute its capital program and there has been no change to the expected capital investment range of
Sustainability
Cenovus’s 2024 Corporate Social Responsibility report, highlighting the company’s performance in safety, Indigenous reconciliation, and acceptance and belonging, was released today and is now available on the company’s website.
Dividend declarations and share purchases
The Board of Directors has declared a quarterly base dividend of
In addition, the Board has declared a quarterly dividend on each of the Cumulative Redeemable First Preferred Shares – Series 1 and Series 2 – payable on October 1, 2025 to shareholders of record as of September 15, 2025, as follows:
Preferred shares dividend summary
| Share series | Rate (%) | Amount ($/share) |
| Series 1 | 2.577 | 0.16106 |
| Series 2 | 4.374 | 0.27562 |
All dividends paid on Cenovus’s common and preferred shares will be designated as “eligible dividends” for Canadian federal income tax purposes. Declaration of dividends is at the sole discretion of the Board and will continue to be evaluated on a quarterly basis.
In the second quarter, the company returned
2025 planned maintenance
The following table provides details on planned maintenance activities at Cenovus assets in 2025 and anticipated production or throughput impacts.
Potential quarterly production/throughput impact (Mbbls/d or MBOE/d)
| (MBOE/d or Mbbls/d) | Q3 | Q4 | Annualized impact |
| Upstream | |||
| Oil Sands | 5 - 7 | - | 7 - 9 |
| Offshore | 2 - 4 | - | 1 - 2 |
| Conventional | - | - | - |
| Downstream | |||
| Canadian Refining | - | - | - |
| U.S. Refining | - | 10 - 15 | 12 - 14 |
Potential turnaround expenses
| ($ millions) | Q3 | Q4 | Annualized impact |
| Downstream | |||
| Canadian Refining | - | - | - |
| U.S. Refining | 55 - 70 | 45 - 60 | 420 - 450 |
Conference call today
Cenovus will host a conference call today, July 31, 2025, starting at 9 a.m. MT (11 a.m. ET).
For analysts wanting to join the call, please register in advance.
To participate in the live conference call, you must complete the online registration form in advance of the conference call start time. Register ahead of time to receive a unique PIN to access the conference call via telephone. Once registered, participants can dial into the conference call from their telephone via the unique PIN or click on the "Call Me" option to receive an automated call directly on their telephone.
An audio webcast will also be available and archived for approximately 30 days.
Advisory
Basis of Presentation
Cenovus reports financial results in Canadian dollars and presents production volumes on a net to Cenovus before royalties basis, unless otherwise stated. Cenovus prepares its financial statements in accordance with International Financial Reporting Standards (IFRS) Accounting Standards.
Barrels of Oil Equivalent
Natural gas volumes have been converted to barrels of oil equivalent (BOE) on the basis of six thousand cubic feet (Mcf) to one barrel (bbl). BOE may be misleading, particularly if used in isolation. A conversion ratio of one bbl to six Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil compared with natural gas is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is not an accurate reflection of value.
Product types
| Product type by operating segment | Three months ended June 30, 2025 |
| Oil Sands | |
| Bitumen (Mbbls/d) | 552.1 |
| Heavy crude oil (Mbbls/d) | 25.0 |
| Conventional natural gas (MMcf/d) | 16.5 |
| Total Oil Sands segment production (MBOE/d) | 579.8 |
| Conventional | |
| Light crude oil (Mbbls/d) | 4.5 |
| Natural gas liquids (Mbbls/d) | 20.4 |
| Conventional natural gas (MMcf/d) | 569.2 |
| Total Conventional segment production (MBOE/d) | 119.8 |
| Offshore | |
| Light crude oil (Mbbls/d) | 12.5 |
| Natural gas liquids (Mbbls/d) | 9.5 |
| Conventional natural gas (MMcf/d) | 265.7 |
| Total Offshore segment production (MBOE/d) | 66.3 |
| Total Upstream production (MBOE/d) | 765.9 |
Forward‐looking Information
This news release contains certain forward‐looking statements and forward‐looking information (collectively referred to as “forward‐looking information”) within the meaning of applicable securities legislation about Cenovus’s current expectations, estimates and projections about the future of the company, based on certain assumptions made in light of the company’s experiences and perceptions of historical trends. Although Cenovus believes that the expectations represented by such forward‐looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Forward‐looking information in this document is identified by words such as “anticipate”, “continue”, “deliver”, “expect”, “plan”, “steward”, and “will” or similar expressions and includes suggestions of future outcomes, including, but not limited to, statements about: Net Debt target; returning Excess Free Funds Flow to shareholders; growth plans and projects; maximizing value; production guidance; timing of startup of the Foster Creek optimization project; ramping up production at Narrows Lake; investigating the Rush Lake incident and developing a plan to restart production; the Sunrise drilling program; the hookup and commissioning of, and timing of drilling at the West White Rose project; executing the capital program; 2025 planned maintenance; and dividend payments.
Developing forward‐looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to Cenovus and others that apply to the industry generally. The factors or assumptions on which the forward‐looking information in this news release are based include, but are not limited to: the allocation of free funds flow; commodity prices, inflation and supply chain constraints; Cenovus’s ability to produce on an unconstrained basis; Cenovus’s ability to access sufficient insurance coverage to pursue development plans; Cenovus’s ability to deliver safe and reliable operations and demonstrate strong governance; and the assumptions inherent in Cenovus’s updated 2025 corporate guidance available on cenovus.com.
The risk factors and uncertainties that could cause actual results to differ materially from the forward‐looking information in this news release include, but are not limited to: the accuracy of estimates regarding commodity production and operating expenses, inflation, taxes, royalties, capital costs and currency and interest rates; risks inherent in the operation of Cenovus’s business; and risks associated with climate change and Cenovus’s assumptions relating thereto and other risks identified under “Risk Management and Risk Factors” and “Advisory” in Cenovus’s Management’s Discussion and Analysis (MD&A) for the year ended December 31, 2024.
Except as required by applicable securities laws, Cenovus disclaims any intention or obligation to publicly update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned that the foregoing lists are not exhaustive and are made as at the date hereof. Events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward‐looking information. For additional information regarding Cenovus’s material risk factors, the assumptions made, and risks and uncertainties which could cause actual results to differ from the anticipated results, refer to “Risk Management and Risk Factors” and “Advisory” in Cenovus’s MD&A for the periods ended December 31, 2024 and June 30, 2025 and to the risk factors, assumptions and uncertainties described in other documents Cenovus files from time to time with securities regulatory authorities in Canada (available on SEDAR+ at sedarplus.ca, on EDGAR at sec.gov and Cenovus’s website at cenovus.com).
Specified Financial Measures
This news release contains references to certain specified financial measures that do not have standardized meanings prescribed by IFRS Accounting Standards. Readers should not consider these measures in isolation or as a substitute for analysis of the company’s results as reported under IFRS Accounting Standards. These measures are defined differently by different companies and, therefore, might not be comparable to similar measures presented by other issuers. For information on the composition of these measures, as well as an explanation of how the company uses these measures, refer to the Specified Financial Measures Advisory located in Cenovus’s MD&A for the period ended June 30, 2025 (available on SEDAR+ at sedarplus.ca, on EDGAR at sec.gov and on Cenovus's website at cenovus.com) which is incorporated by reference into this news release.
Upstream Operating Margin and Downstream Operating Margin
Upstream Operating Margin and Downstream Operating Margin, and the individual components thereof, are included in Note 1 to the interim Consolidated Financial Statements.
Total Operating Margin
Total Operating Margin is the total of Upstream Operating Margin plus Downstream Operating Margin.
| Upstream (6) | Downstream (6) | Total | |||||||
| ($ millions) | Q2 2025 | Q1 2025 | Q2 2024 | Q2 2025 | Q1 2025 | Q2 2024 | Q2 2025 | Q1 2025 | Q2 2024 |
| Revenues | |||||||||
| Gross Sales | 7,394 | 9,252 | 8,715 | 7,743 | 7,705 | 8,750 | 15,137 | 16,957 | 17,465 |
| Less: Royalties | (621) | (906) | (859) | — | — | — | (621) | (906) | (859) |
| 6,773 | 8,346 | 7,856 | 7,743 | 7,705 | 8,750 | 14,516 | 16,051 | 16,606 | |
| Expenses | |||||||||
| Purchased Product | 1,111 | 1,167 | 815 | 6,878 | 7,082 | 7,796 | 7,989 | 8,249 | 8,611 |
| Transportation and Blending | 2,621 | 3,247 | 3,043 | — | — | — | 2,621 | 3,247 | 3,043 |
| Operating | 896 | 893 | 889 | 947 | 854 | 1,099 | 1,843 | 1,747 | 1,988 |
| Realized (Gain) Loss on Risk Management | 8 | (9) | 20 | (11) | 6 | 8 | (3) | (3) | 28 |
| Operating Margin | 2,137 | 3,048 | 3,089 | (71) | (237) | (153) | 2,066 | 2,811 | 2,936 |
6Found in Note 1 of the June 30, 2025, or the March 31, 2025, interim Consolidated Financial Statements. Revenues and purchased product for Q2 2024 Downstream operations were revised. See Note 21 of our June 30, 2025, interim Consolidated Financial Statements.
Adjusted Funds Flow, Free Funds Flow and Excess Free Funds Flow
The following table provides a reconciliation of cash from (used in) operating activities found in Cenovus’s interim Consolidated Financial Statements to Adjusted Funds Flow, Free Funds Flow and Excess Free Funds Flow. Adjusted Funds Flow per Share – Basic and Adjusted Funds Flow per Share – Diluted are calculated by dividing Adjusted Funds Flow by the respective basic or diluted weighted average number of common shares outstanding during the period and may be useful to evaluate a company’s ability to generate cash.
| Three Months Ended | |||
| ($ millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 |
| Cash From (Used in) Operating Activities (7) | 2,374 | 1,315 | 2,807 |
| (Add) Deduct: | |||
| Settlement of Decommissioning Liabilities | (68) | (36) | (48) |
| Net Change in Non-Cash Working Capital | 923 | (861) | 494 |
| Adjusted Funds Flow | 1,519 | 2,212 | 2,361 |
| Capital Investment | 1,164 | 1,229 | 1,155 |
| Free Funds Flow | 355 | 983 | 1,206 |
| Add (Deduct): | |||
| Base Dividends Paid on Common Shares | (364) | (327) | (334) |
| Purchase of Common Shares under Employee Benefit Plan | (15) | (58) | — |
| Dividends Paid on Preferred Shares | (4) | (6) | (9) |
| Settlement of Decommissioning Liabilities | (68) | (36) | (48) |
| Principal Repayment of Leases | (94) | (83) | (75) |
| Acquisitions, Net of Cash Acquired | (129) | (100) | (5) |
| Proceeds From Divestitures | 13 | — | — |
| Excess Free Funds Flow | (306) | 373 | 735 |
7 Found in the June 30, 2025, or the March 31, 2025, interim Consolidated Financial Statements.
Adjusted Market Capture
Adjusted market capture contains a non-GAAP financial measure and is used in the company’s U.S. Refining segment to provide an indication of margin captured relative to what was available in the market based on widely-used benchmarks. Cenovus defines adjusted market capture as refining margin, net of holding gains and losses, divided by the weighted average 3-2-1 market benchmark crack, net of RINs, expressed as a percentage. The weighted average crack spread, net of RINs, is calculated on Cenovus’s operable capacity-weighted average of the Chicago and Group 3 3-2-1 benchmark market crack spreads, net of RINs.
The company previously disclosed market capture which did not exclude the effect of inventory holding gains or losses. Cenovus replaced market capture with adjusted market capture to exclude the impact of inventory holding gains or losses. The company believes this metric provides more comparability and accuracy when measuring the cash generating performance of our downstream operations. Comparative periods were revised to conform with our current presentation.
| ($ millions) | Three months ended June 30, 2025 | Three months ended March 31, 2025 |
| Revenues (8) | 6,455 | 6,423 |
| Purchased Product (8) | 5,838 | 6,006 |
| Gross Margin | 617 | 417 |
| Inventory Holding (Gain) Loss | 62 | 23 |
| Adjusted Gross Margin | 679 | 440 |
| Total Processed Inputs (Mbbls/d) | 594.2 | 581.0 |
| Adjusted Gross Margin ($/bbl) | 12.57 | 8.41 |
| Operable Capacity (Mbbls/d) | 612.3 | 612.3 |
| Operable Capacity by Regional Benchmark (percent) | ||
| Chicago 3-2-1 Crack Spread Weighting | 81 | 81 |
| Group 3 3-2-1 Crack Spread Weighting | 19 | 19 |
| Benchmark Prices and Exchange Rate | ||
| Chicago 3-2-1 Crack Spread (US$/bbl) | 21.64 | 13.68 |
| Group 3 3-2-1 Crack Spread (US$/bbl) | 23.07 | 16.48 |
| RINs (US$/bbl) | 6.12 | 4.76 |
| US$ per C | 0.723 | 0.697 |
| Weighted Average Crack Spread, Net of RINs ($/bbl) | 21.86 | 13.58 |
| Adjusted Market Capture (percent) | 58 | 62 |
8 Found in Note 1 of the June 30, 2025, or the March 31, 2025, interim Consolidated Financial Statements.
Cenovus Energy Inc.
Cenovus Energy Inc. 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. The company is committed to maximizing value by developing its assets in a safe, responsible and cost-efficient manner, integrating environmental, social and governance considerations into its business plans. Cenovus common shares and warrants are listed on the Toronto and New York stock exchanges, and the company’s preferred shares are listed on the Toronto Stock Exchange. For more information, visit cenovus.com.
Find Cenovus on Facebook, LinkedIn, YouTube and Instagram.
Cenovus contacts
Investors
Investor Relations general line
403-766-7711
Media
Media Relations general line
403-766-7751
FAQ
What were Cenovus Energy's (CVE) key financial results for Q2 2025?
How much did Cenovus (CVE) return to shareholders in Q2 2025?
What was Cenovus's (CVE) production and throughput in Q2 2025?
What major operational milestones did Cenovus (CVE) achieve in Q2 2025?
What is Cenovus's (CVE) current debt position as of Q2 2025?
