Cenovus Energy provides operations update on impact of Alberta wildfires

Rhea-AI Summary

Cenovus Energy has temporarily suspended operations at its Christina Lake oil sands facility due to wildfire activity in northern Alberta, impacting approximately 238,000 barrels per day of production. The company began a safe and methodical shutdown on May 29, 2025, and currently maintains only essential personnel at the site. While no infrastructure damage has been reported based on initial inspections, operations will resume only when safety conditions permit. The company is actively monitoring the wildfire situation and expects to fully restart Christina Lake operations in the near term. The decision prioritizes the safety of personnel and asset integrity, with all staff reported safe during this precautionary measure.

Positive

• No damage reported to infrastructure based on initial inspections
• Company expects full restart of Christina Lake operations in the near term
• Well-executed safety protocols with all staff reported safe

Negative

• Temporary shutdown of Christina Lake operations affecting 238,000 barrels per day of production
• Limited operations with only essential personnel on site
• Uncertain timeline for full operational restart due to ongoing wildfire threats

Insights

Energy Sector Analyst

Cenovus shut down 238,000 barrels/day at Christina Lake due to Alberta wildfires; expects full restart soon with no infrastructure damage.

Cenovus Energy has temporarily halted production at its Christina Lake oil sands operations due to wildfire activity in northern Alberta, impacting approximately 238,000 barrels per day of production. This represents a significant portion of the company's oil sands output, as Christina Lake is one of Cenovus's core assets. Based on initial inspections, no infrastructure damage has been identified, which is crucial positive news for shareholders concerned about potential long-term production impacts.

The shutdown began on May 29 as a precautionary measure, with the company currently operating with only essential personnel on site. While production disruptions of this magnitude typically raise concerns, the company's indication of an anticipated "full restart... in the near term" suggests this will likely be a short-term impact rather than a prolonged production issue. This temporary disruption will affect second-quarter production volumes, but the absence of infrastructure damage means the financial impact should be limited to the actual days of lost production rather than costly repairs or reconstruction.

This type of precautionary shutdown is standard industry practice during wildfire season in Alberta's oil sands region. The company's methodical approach to safety and operations integrity demonstrates proper risk management protocols. Investors should monitor for Cenovus's follow-up announcement regarding the restart timeline, as this will determine the actual production and financial impact for Q2 2025 results.

CALGARY, Alberta, June 01, 2025 (GLOBE NEWSWIRE) -- Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) is providing an update on its Oil Sands operations following ongoing wildfire activity in northern Alberta. Cenovus is focused on the safety of its people and the integrity of its assets, and all staff are safe. Based on the inspections the company has completed to date, it is not aware of any damage to its infrastructure and would anticipate a full restart of Christina Lake operations in the near term.

As a precaution, currently only essential personnel are at the Christina Lake oil sands asset, where the company began safely and methodically shutting in production on May 29. Operations will resume as soon as it’s safe to do so. Approximately 238,000 barrels per day of production have been impacted, and the company will provide an update when it is in a position to restart.

Cenovus is closely monitoring the overall wildfire situation in Alberta. The company is grateful for the efforts of its teams who are working tirelessly to keep the company’s people and assets safe, and for the provincial emergency management teams and firefighters keeping communities safe.

Advisory
Forward-looking Information
This news release contains certain forward-looking statements and forward-looking information (collectively referred to as “forward-looking information”) about Cenovus’s current expectations, estimates and projections about the future, based on certain assumptions made in light of experience and perception of historical trends. Forward-looking information in this news release is identified by words such as “focus”, “anticipate” and “will” or similar expressions, including, but not limited to, statements about: safety; asset integrity; production impacts; and resumption of operations.

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 Management's Discussion and Analysis for the periods ended December 31, 2024 and March 31, 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).

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.

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FAQ

How many barrels of daily production are affected by Cenovus Energy's (CVE) wildfire-related shutdown?

The shutdown has impacted approximately 238,000 barrels per day of production at Cenovus Energy's Christina Lake facility.

When did Cenovus Energy (CVE) begin shutting down its Christina Lake operations?

Cenovus Energy began safely and methodically shutting in production at Christina Lake on May 29, 2025.

Has the Alberta wildfire caused any damage to Cenovus Energy's (CVE) infrastructure?

Based on initial inspections, Cenovus Energy has not reported any damage to its infrastructure at the Christina Lake facility.

When will Cenovus Energy (CVE) resume operations at Christina Lake?

While Cenovus anticipates a full restart in the near term, operations will only resume when it's deemed safe to do so, with no specific date provided.

What safety measures has Cenovus Energy (CVE) implemented during the wildfire situation?

Cenovus has reduced staff to essential personnel only at Christina Lake, implemented a methodical shutdown process, and is closely monitoring the wildfire situation to ensure safety of people and assets.