Cenovus Energy Stock Price, News & Analysis

Cenovus Energy Inc. (TSX: CVE) issued an update on its downstream operations following extreme winter storms and pipeline outages that affected refinery throughput in the U.S. and Canada. The Lloydminster Refinery performed well, but operational issues led to reduced throughput in December. Current estimates for Q4 2022 show Canadian throughput at 90-95 Mbbls/d and U.S. throughput at 370-380 Mbbls/d. The Lima Refinery is back at full rates, while the Lloydminster Upgrader and Borger Refinery are expected to follow by mid-January. Q1 2023 throughput is anticipated to be lower than expected.

Cenovus Energy Inc. (CVE) announced its disciplined 2023 budget, planning to invest between $4.0 billion and $4.5 billion to maintain operations and boost growth. The projection includes $2.8 billion for sustaining capital and $1.2 billion to $1.7 billion for optimization and growth projects. Upstream production is expected between 800,000 and 840,000 BOE/d, with downstream throughput increasing by 28%. Operating costs for oil sands remain stable, while decreasing in U.S. manufacturing by 22%. The company aims to reach a net debt floor of $4 billion by year-end 2022.

Cenovus Energy has renewed its normal course issuer bid (NCIB) to buy back up to 136,717,741 common shares from November 9, 2022, to November 8, 2023. This buyback aligns with the company's capital allocation framework, aimed at enhancing shareholder value and reflects the belief that the market price of its shares may not fully represent their underlying value. Cenovus's prior NCIB permitted the repurchase of 146,451,823 shares, with 117,993,150 shares repurchased at an average price of $21.19 before its expiration.

Cenovus Energy reported strong third-quarter 2022 results with over $4 billion in cash from operating activities and nearly $2.1 billion in free funds flow. Upstream production reached approximately 778,000 BOE/d, while downstream throughput averaged 533,500 bbls/d.

The Board declared a variable dividend of $0.114 per share, payable on December 2, 2022, and reduced net debt to about $5.3 billion. However, revenues dropped to $17.5 billion from $19.2 billion, primarily due to lower benchmark prices.

Cenovus Energy Inc. (TSX:CVE) will announce its third-quarter results on November 2, 2022. The press release will detail consolidated operating and financial information for the quarter. Interested parties can access financial statements on Cenovus's website. A conference call is scheduled for 9 a.m. MT (11 a.m. ET) on the same day, with dial-in options provided for live listening, including a toll-free number for North America. The company focuses on safe and cost-efficient management of its energy assets in Canada and the Asia Pacific region.

Cenovus Energy announced its cash tender offers for up to $2.2 billion in Notes, with two pools: Pool 1, for $1.7 billion in various Notes due between 2025 and 2047, and Pool 2, for $500 million in Notes due between 2037 and 2039. The Early Tender Date was September 9, 2022, with the Early Settlement Date set for September 13, 2022. The company plans to accept Notes based on priority levels and proration factors, with significant demand exceeding available amounts. The offers will expire on September 23, 2022, unless extended.

Cenovus Energy Inc. (CVE) announced early tender results for its cash tender offers on various series of notes. The Pool 1 Maximum Amount has been increased from $1 billion to a total cash amount sufficient to purchase specific notes due between 2025 and 2043. The Pool 2 Maximum Amount remains at $500 million, with a prorated acceptance expected for the 6.750% Notes due 2039. Validly tendered notes prior to the Early Tender Date will be accepted for purchase, with a settlement date set for September 13, 2022.

Cenovus Energy Inc. (TSX: CVE) announced its tender offers to purchase up to $1.5 billion of certain outstanding notes. The offers include multiple series of notes with varying due dates, including 4.250% Notes due 2027 and 6.750% Notes due 2039. Tender offers will expire on September 23, 2022, with an early tender date of September 9, 2022. The company plans to fund the purchase with cash and short-term borrowings. Notably, all notes accepted will be retired, ceasing to remain outstanding obligations of the company.

Cenovus Energy reported robust second-quarter results for 2022, achieving upstream production of 762,000 BOE/d and downstream throughput of over 457,000 bbls/d. The company generated cash flow from operations of nearly $3.0 billion and adjusted funds flow of $3.1 billion. Notably, Cenovus returned over $1 billion to shareholders via share buybacks, in line with its commitment to return 50% of excess free funds flow. The company reduced net debt to $7.5 billion and expects improved performance in the second half of 2022 following significant maintenance activities.