Cenovus (TSX: CVE) boosts dividend after record Q1 2026 production

Rhea-AI Filing Summary

Cenovus Energy reported strong first-quarter 2026 results, with total revenues of $12.4 billion, adjusted funds flow of $3.4 billion and free funds flow of $2.2 billion. Net earnings rose to $1.6 billion, supported by higher benchmark oil prices, record upstream production and improved refining margins.

Upstream production reached a record 972,100 BOE/d, up 19% from Q1 2025, driven by the MEG Energy acquisition and oil sands growth projects. Downstream crude throughput averaged 458,500 bbls/d, with U.S. refining adjusted market capture of 114%. Net debt was $8.1 billion as of March 31, 2026, modestly lower than year-end.

The Board approved a 10% increase in the quarterly base dividend to $0.22 per share starting Q2 2026. In Q1, Cenovus returned $1.0 billion to shareholders through dividends, common share repurchases and preferred share redemptions, while continuing to advance major growth projects at Christina Lake North, Sunrise and West White Rose.

Positive

• Record upstream production and stronger margins: Total upstream output reached 972.1 MBOE/d, up 19% year over year, while total operating margin increased to $4.44 billion from $2.81 billion in Q1 2025, reflecting higher prices, MEG integration and improved refining performance.
• Robust cash generation and earnings growth: Adjusted funds flow rose to $3.38 billion from $2.21 billion a year earlier, free funds flow more than doubled to $2.21 billion, and net earnings climbed to $1.57 billion from $859 million.
• Increased shareholder returns and dividend growth: The company returned $1.0 billion in Q1 2026 via dividends, buybacks and preferred redemptions and approved a 10% increase in the quarterly base dividend to $0.22 per share starting in Q2 2026.
• Advancement of major growth projects: Christina Lake North, Sunrise and West White Rose all progressed, with West White Rose commissioning and drilling underway and first oil anticipated in Q3 2026, supporting the disclosed production growth plan through 2028.

Negative

• None.

Insights

Energy sector equity analyst

Q1 2026 shows stronger cash generation, record volumes and higher shareholder returns.

Cenovus delivered record upstream production of 972.1 MBOE/d, up 19% year over year, with oil sands volumes boosted by the MEG Energy acquisition and successful growth projects at Christina Lake, Foster Creek and Sunrise. Downstream performance also improved, with U.S. refining operating margin of $533 million and adjusted market capture of 114%.

Cash generation was robust: adjusted funds flow reached $3.38 billion and free funds flow $2.21 billion. Net earnings nearly doubled versus Q1 2025 to $1.57 billion. Despite higher long-term debt of $10.63 billion, net debt edged down to $8.06 billion as the company repaid a $500 million term loan while funding capital and shareholder returns.

Capital investment of $1.17 billion supported key growth, including Christina Lake North (targeting 40,000 bbls/d by 2028) and West White Rose, where first oil is anticipated in Q3 2026. The Board’s 10% base dividend increase to $0.22 per share and $1.0 billion of Q1 capital returns signal confidence in cash flow durability under the disclosed financial framework and commodity assumptions.

Key Figures

Total revenues: $12.4 billion Adjusted funds flow: $3.377 billion Free funds flow: $2.207 billion +5 more

8 metrics

Total revenues $12.4 billion Q1 2026 consolidated revenues

Adjusted funds flow $3.377 billion Q1 2026 non-GAAP cash flow metric

Free funds flow $2.207 billion Q1 2026 after capital investment

Net earnings $1.570 billion Q1 2026 consolidated net income

Net debt $8.058 billion As of March 31, 2026

Upstream production 972.1 MBOE/d Q1 2026 total upstream volumes

Shareholder returns $1.0 billion Q1 2026 dividends, buybacks, preferred redemptions

Quarterly base dividend $0.22 per share Approved for Q2 2026, 10% increase

Key Terms

Adjusted Funds Flow, Free Funds Flow, Adjusted Market Capture, Operating Margin, +2 more

6 terms

Adjusted Funds Flow financial

"Adjusted funds flow was $3.4 billion, compared with $2.7 billion in the prior quarter"

Adjusted funds flow is a company’s operating cash amount recalculated to remove accounting quirks and one-time items so it better reflects the cash a business actually generates from its core operations. Think of it as the money that would show up in a household bank account after ignoring bookkeeping entries and rare windfalls; investors use it to judge whether a company can sustain dividends, invest in growth, and service debt without relying on accounting gains.

Free Funds Flow financial

"Free funds flow 2 | 2,207 | 1,314 | 983"

Free funds flow is the cash a company generates from its operations that remains after paying the ordinary bills and making the investments needed to maintain or grow the business, like equipment or repairs. Investors watch it because it shows how much real money is available for dividends, share buybacks, paying down debt, or other uses — similar to the spare cash in a household budget after paying recurring bills and necessary repairs.

Adjusted Market Capture financial

"Adjusted market capture in U.S. Refining was 114%, compared with 106% in the prior quarter"

Operating Margin financial

"Total operating margin4 was $4.4 billion, compared with $2.8 billion in the prior quarter"

Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.

Net Debt financial

"Net debt was $8.1 billion as at March 31, 2026, a modest decrease from the prior quarter"

Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.

SeaRose asset life extension (ALE) project technical

"strong production from our Atlantic operations in the Offshore segment following the completion of the SeaRose asset life extension (“ALE”) project"

Form 6-K: How Foreign Companies Report to the SEC →

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 

under the Securities Exchange Act of 1934

For May 2026

Commission File Number:  1-34513

CENOVUS ENERGY INC.

(Translation of registrant’s name into English)

4100, 225 6 Avenue S.W.

Calgary, Alberta, Canada T2P 1N2

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☐    Form 40-F  ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):   ☐

DOCUMENTS FILED AS PART OF THIS FORM 6-K

See the Exhibit Index to this Form 6-K.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date:  May 6, 2026

CENOVUS ENERGY INC.

(Registrant)

By:

/s/ Amanda D. Pankiw

Name:

Amanda D. Pankiw

Title:

Assistant Corporate Secretary

Form 6-K Exhibit Index

Exhibit No.
99.1						News Release dated May 6, 2026
99.2						Management's Discussion and Analysis dated May 5, 2026 for the period ended March 31, 2026
99.3						Interim Consolidated Financial Statement (unaudited) for the period ended March 31, 2026
99.4						Form 52-109F2 Full Certificate, dated May 6, 2026, of Jonathan M. McKenzie, President & Chief Executive Officer
99.5						Form 52-109F2 Full Certificate, dated May 6, 2026, of Karamjit S. Sandhar, Executive Vice-President & Chief Financial Officer

						Exhibit 99.1
News release

Cenovus announces first-quarter 2026 results

Calgary, Alberta (May 6, 2026) – Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) today announced its first-quarter 2026 financial and operating results. In the quarter, the company generated approximately $3.4 billion of adjusted funds flow and $2.2 billion of free funds flow. Operating results in the quarter included Upstream production of 972,100 barrels of oil equivalent per day (BOE/d)1 and Downstream crude throughput of 458,500 barrels per day (bbls/d), representing an overall crude unit utilization rate of 97%.

The Board of Directors has approved a 10% increase in the quarterly base dividend to $0.22 per share, beginning in the second quarter of 2026. Consistent with Cenovus’s financial framework, the base dividend is underpinned by its growth plan and resilience at a US$45 West Texas Intermediate crude oil price.

Highlights

•Reached highest ever quarterly Upstream production of 972,100 BOE/d, an increase of 54,200 BOE/d or 6% from Q4 2025 and 153,200 BOE/d or 19% from Q1 2025.

•Accelerated the redevelopment well program at Christina Lake North. The first of 40 redevelopment wells was drilled in March with first oil processed in April.

•Increased Offshore production to 75,400 BOE/d in Q1 2026, an increase of 4,500 BOE/d or 6% from Q4 2025. With the West White Rose project now complete and drilling operations underway, first oil is expected in Q3 2026.

•Achieved a Downstream utilization rate of 97%, with crude throughput of 458,500 bbls/d. U.S. Refining adjusted market capture2 of 114% contributed to total Downstream operating margin3 of $734 million, including a $457 million inventory holding gain.

•Returned $1.0 billion to shareholders in the first quarter, including $379 million through common and preferred share dividends, $356 million through common share repurchases and $300 million in preferred share redemptions.

“Our people continued to deliver exceptional operating and financial results. From record Upstream production to seamless project execution and robust Downstream performance, the entire suite of integrated assets contributed to a terrific quarterly result,” said Jon McKenzie, Cenovus President & Chief Executive Officer. “Our focus remains squarely on safety and disciplined execution of our ambitious business plan.”

Financial summary

($ millions, except per share amounts)			2026 Q1			2025 Q4			2025 Q1
Cash from (used in) operating activities			2,181			2,408			1,315
Adjusted funds flow2			3,377			2,674			2,212
Per share (diluted)2			1.80			1.46			1.21
Capital investment			1,170			1,360			1,229
Free funds flow2			2,207			1,314			983
Excess free funds flow2			1,723			(1,597)			373
Net earnings (loss)			1,570			934			859
Per share (diluted)			0.83			0.50			0.47
Long-term debt, including current portion			10,633			11,032			7,524
Net debt			8,058			8,292			5,079

CENOVUS ENERGY NEWS RELEASE | 1

Production and throughput

(before royalties, net to Cenovus)			2026 Q1			2025 Q4			2025 Q1
Oil and NGLs (bbls/d)1			830,100			774,500			670,900
Conventional natural gas (MMcf/d)1			852.0			860.4			887.9
Total Upstream production (BOE/d)1			972,100			917,900			818,900
Total Downstream crude throughput (bbls/d)1			458,500			465,500			665,400

1 See Advisory for production by product type and by reporting segment.

2 Non-GAAP financial measure or contains a non-GAAP financial measure. See Advisory.

3Specified financial measure. See Advisory.

First-quarter results

Operating1

Cenovus’s total revenues were $12.4 billion in the first quarter, up from $10.9 billion in the fourth quarter of 2025. Upstream revenues were $9.4 billion, an increase from $7.6 billion in the prior quarter, while Downstream revenues were $5.6 billion, an increase from $5.3 billion in the prior quarter.

Total operating margin4 was $4.4 billion, compared with $2.8 billion in the prior quarter. Upstream operating margin5 was $3.7 billion, up from $2.6 billion in the prior quarter, as a result of higher benchmark oil prices and increased production. Downstream operating margin was $734 million, an increase from $149 million in the prior quarter, reflecting increased refined product prices and strong seasonal market capture. Operating margin in the U.S. Refining segment was $533 million, which included a $457 million inventory holding gain.

Total Upstream production was 972,100 BOE/d in the first quarter, up from 917,900 BOE/d in the fourth quarter of 2025. Christina Lake production was 358,900 bbls/d compared with 308,900 bbls/d in the prior quarter, as a result of the acquisition of MEG Energy Corp. (MEG) and strong well pad performance at Narrows Lake. Foster Creek production was 223,000 bbls/d, up from 220,100 bbls/d in the prior quarter, and Sunrise production was 59,400 bbls/d, similar to the fourth quarter.

Production from the Lloydminster thermal assets was 102,300 bbls/d compared with 106,900 bbls/d in the fourth quarter of 2025, reflecting the disposition of Vawn in December. Lloydminster conventional heavy oil output was 29,000 bbls/d, compared with 28,100 bbls/d in the prior quarter.

Production in the Conventional segment was 121,700 BOE/d, an increase from 120,400 BOE/d in the prior quarter.

In the Offshore segment, production was 75,400 BOE/d compared with 70,900 BOE/d in the fourth quarter of 2025. In Asia Pacific, production was 57,100 BOE/d, compared with 54,000 BOE/d in the prior quarter, and in the Atlantic region production was 18,300 bbls/d, up from 16,900 bbls/d in the prior quarter.

Total Downstream crude throughput in the first quarter was 458,500 bbls/d. Crude throughput in Canadian Refining was 115,300 bbls/d, representing a utilization rate of 107%, compared with 112,900 bbls/d in the prior quarter.

In U.S. Refining, crude throughput was 343,200 bbls/d, compared with 352,600 bbls/d in the fourth quarter of 2025. First-quarter crude throughput represents a crude unit utilization rate of 94%. U.S. Refining revenues were $4.2 billion, in line with the prior quarter. Adjusted market capture in U.S.

CENOVUS ENERGY NEWS RELEASE | 2

Refining was 114%, compared with 106% in the prior quarter, as a result of strong distillate cracks, widening heavy crude differentials and favourable secondary product pricing.

4Non-GAAP financial measure. Total operating margin is the total of Upstream operating margin plus Downstream operating margin. See Advisory.

5Specified financial measure. See Advisory.

Financial

Cash from operating activities in the first quarter declined to approximately $2.2 billion from $2.4 billion in the fourth quarter of 2025. Adjusted funds flow was $3.4 billion, compared with $2.7 billion in the prior quarter, and excess free funds flow was $1.7 billion, compared with a shortfall of $1.6 billion in the prior quarter as a result of the completion of the MEG acquisition. Net earnings increased to $1.6 billion from $934 million in the prior quarter. First-quarter financial results were driven by increases in benchmark crude oil prices, Upstream production and refined product pricing.

Long-term debt, including the current portion, was $10.6 billion as at March 31, 2026. Net debt was $8.1 billion as at March 31, 2026, a modest decrease from the prior quarter, as a result of strong financial results, partially offset by the redemption of all $300 million of Cenovus’s Series 1 and Series 2 preferred shares on March 31, 2026, and a $1.1 billion increase in non-cash working capital. The company continues to steward toward a long-term net debt target of $4.0 billion.

Growth projects

The Christina Lake North expansion project, which will increase production volumes by approximately 40,000 bbls/d by 2028, continued to progress in the first quarter. Production from the 40-well redevelopment program is expected to ramp up in the second half of 2026 and installation of the first new steam generator is ahead of schedule and expected to be brought online before year-end. At Foster Creek, the Amine Claus project was mechanically complete within the quarter and commissioning work is underway. At Sunrise, the first of four new well pads on the east development area began producing in April. A second pad is expected to come online later in 2026 as production continues to ramp up towards 70,000 bbls/d by 2028.

At West White Rose, commissioning and testing of the platform was completed, and drilling operations have commenced. First oil is now anticipated in the third quarter of 2026.

Sale of Canadian commercial fuels business

Cenovus entered into agreements to sell its Canadian commercial fuels business, which includes travel centres, cardlocks, retail sites and bulk plants. Total expected cash proceeds from the sales are $275 million. The transactions are expected to close in the second half of 2026, subject to approval under the Competition Act (Canada) and other customary closing conditions. TD Securities acted as exclusive financial advisor on the transactions.

Sustainability

Today, Cenovus released its 2025 Corporate Social Responsibility report, illustrating the company’s progress and performance related to safety, Indigenous reconciliation, and acceptance and belonging as well as its approach to governance. The report is available on the company's website at cenovus.com.

The report highlights how Cenovus advanced several major initiatives that strengthened competitiveness in 2025 and continued to position the company for long-term success, supporting both business performance and sustainability efforts. Cenovus delivered top-quartile process safety

CENOVUS ENERGY NEWS RELEASE | 3

performance, reached a record $860 million in Indigenous business spend in 2025 and refreshed its social commitments with clear, measurable ambitions and defined strategic actions.

The company is actively engaged with the governments of Alberta and Canada in 2026 to advance the shared goals of expanding the energy sector, increasing and diversifying market access and reducing emissions while maintaining global competitiveness for the oil sands industry.

“We have an unprecedented opportunity to produce more oil to meet global demand, and by doing so we will strengthen Canada’s economy,” McKenzie said. “Now is the time to create the conditions so industry can be globally competitive and Canada can take advantage of this moment.”

Dividend declarations and share purchases

The Board of Directors has declared a quarterly base dividend of $0.22 per common share, payable on June 30, 2026, to shareholders of record as of June 15, 2026.

All dividends paid on Cenovus’s common 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 first quarter, the company returned $1.0 billion to shareholders, composed of $356 million from its purchase of 11.5 million common shares through its normal course issuer bid, $379 million through common and preferred share dividends and $300 million through the redemption of Cenovus’s Series 1 and Series 2 preferred shares. With the redemptions, Cenovus no longer has preferred shares within its capital structure.

2026 planned maintenance

The following table provides details on planned maintenance activities at Cenovus assets in 2026 and anticipated production or throughput impacts.

Potential quarterly production/throughput impact (Mbbls/d or MBOE/d)

(MBOE/d or Mbbls/d)			Q2			Q3			Q4			Annual impact
Upstream
Oil Sands			5 - 9			23 - 28			2 - 4			8 - 10
Offshore			-			-			-			-
Conventional			-			-			-			-
Downstream
Canadian Refining			10 - 15			-			-			2 - 4
U.S. Refining			-			35 - 45			40 - 50			20 - 26

Conference call today

Cenovus will host a conference call today, May 6, 2026, starting at 9 a.m. MT (11 a.m. ET).

For analysts wanting to join the call, please register in advance.

CENOVUS ENERGY NEWS RELEASE | 4

To participate in the conference call, complete the online registration form in advance of the call start time. Once registered, you will receive a unique PIN to access the call by phone. You can either dial into the conference call using the unique PIN or select the "Call Me" option to receive an automated call.

A live audio webcast of the conference call will also be available and will remain archived for approximately 30 days.

Cenovus will also host its Annual Meeting of Shareholders today, May 6, 2026, in a virtual format beginning at 11 a.m. MT (1 p.m. ET). The webcast link to the Shareholders Meeting is available under Shareholder information in the Investors section of cenovus.com.

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 as issued by the International Accounting Standards Board (the IFRS Accounting Standards).

Barrels of Oil Equivalent

Natural gas volumes have been converted to 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 reporting segment			Three months ended March 31, 2026
Oil Sands
Bitumen (Mbbls/d)			743.6
Heavy crude oil (Mbbls/d)			29.0
Conventional natural gas (MMcf/d)			14.4
Total Oil Sands segment production (MBOE/d)			775.0
Conventional
Light crude oil (Mbbls/d)			6.0
Natural gas liquids (Mbbls/d)			22.9
Conventional natural gas (MMcf/d)			556.4
Total Conventional segment production (MBOE/d)			121.7
Offshore
Light crude oil (Mbbls/d)			18.3
Natural gas liquids (Mbbls/d)			10.3
Conventional natural gas (MMcf/d)			281.2

CENOVUS ENERGY NEWS RELEASE | 5

Total Offshore segment production (MBOE/d)			75.4
Total Upstream production (MBOE/d)			972.1

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”, “payable”, “plan”, “progress”, “steward”, and “will” or similar expressions and includes suggestions of future outcomes, including, but not limited to, statements about: focus on safety and disciplined execution of our business plan; stewarding towards our long-term net debt target; progressing the Foster Creek Amine Claus project; Christina Lake North expansion project progress; ramp-up of production growth at Sunrise; timing of first oil from the West White Rose project; timing of closing of and expected proceeds from the sale of the Canadian commercial fuels business; 2026 planned maintenance and production/throughput impacts; and future 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 assumptions inherent in Cenovus’s 2026 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: changes to general economic, market and business conditions; 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, 2025.

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, 2025 and March 31, 2026 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 NEWS RELEASE | 6

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 periods ended December 31, 2025 and March 31, 2026 (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 of 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)			Q1 2026			Q4 2025			Q1 2025			Q1 2026			Q4 2025			Q1 2025			Q1 2026			Q4 2025			Q1 2025
Revenues
Gross Sales			10,370			8,287			9,252			5,627			5,314			7,705			15,997			13,601			16,957
Less: Royalties			(983)			(670)			(906)			—			—			—			(983)			(670)			(906)
			9,387			7,617			8,346			5,627			5,314			7,705			15,014			12,931			16,051
Expenses
Purchased Product			1,244			1,271			1,167			4,378			4,574			7,082			5,622			5,845			8,249
Transportation and Blending			3,375			2,832			3,247			—			—			—			3,375			2,832			3,247
Operating			1,047			893			893			526			591			854			1,573			1,484			1,747
Realized (Gain) Loss on Risk Management			13			(7)			(9)			(11)			—			6			2			(7)			(3)
Operating Margin			3,708			2,628			3,048			734			149			(237)			4,442			2,777			2,811

6 Found in Note 1 of the March 31, 2026, or the December 31, 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.

CENOVUS ENERGY NEWS RELEASE | 7

			Three Months Ended
($ millions)			March 31, 2026			December 31, 2025			March 31, 2025
Cash From (Used in) Operating Activities (7)			2,181			2,408			1,315
(Add) Deduct:
Settlement of Decommissioning Liabilities			(53)			(82)			(36)
Net Change in Non-Cash Working Capital			(1,143)			(184)			(861)
Adjusted Funds Flow			3,377			2,674			2,212
Capital Investment			1,170			1,360			1,229
Free Funds Flow			2,207			1,314			983
Add (Deduct):
Base Dividends Paid on Common Shares			(377)			(376)			(327)
Purchase of Common Shares under    Employee Benefit Plan			(51)			(61)			(58)
Dividends Paid on Preferred Shares			(2)			(4)			(6)
Settlement of Decommissioning Liabilities			(53)			(82)			(36)
Principal Repayment of Leases			(90)			(84)			(83)
Acquisitions, Net of Cash Acquired			(10)			(3,430)			(100)
Acquisition of Ownership Interest in MEG (8)			—			(752)			—
Proceeds From Divestitures			99			1,878			—
Excess Free Funds Flow			1,723			(1,597)			373

7 Found in the March 31, 2026, or the December 31, 2025, interim Consolidated Financial Statements.

8Represents the acquired MEG common shares purchased prior to the closing of the MEG acquisition. For further information, refer to Note 3 of the December 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.

CENOVUS ENERGY NEWS RELEASE | 8

($ millions)			Three months ended March 31, 2026			Three months ended December 31, 2025
Revenues (9)			4,220			4,158
Purchased Product (9)			3,318			3,664
Gross Margin			902			494
Inventory Holding (Gain) Loss			(457)			134
Adjusted Gross Margin			445			628
Total Processed Inputs (Mbbls/d)			359.9			375.8
Adjusted Refining Margin ($/bbl)			13.74			18.17
Operable Capacity (Mbbls/d)			364.8			364.8
Operable Capacity by Regional Benchmark (percent)
Chicago 3-2-1 Crack Spread Weighting			88			88
Group 3 3-2-1 Crack Spread Weighting			12			12
Benchmark Prices and Exchange Rate
Chicago 3-2-1 Crack Spread (US$/bbl)			17.55			18.20
Group 3 3-2-1 Crack Spread (US$/bbl)			17.16			19.25
RINs (US$/bbl)			8.71			6.04
US$ per C$1 - Average			0.729			0.717
Weighted Average Crack Spread, Net of RINs ($/bbl)			12.06			17.14
Adjusted Market Capture (percent)			114			106

9 Found in Note 1 of the March 31, 2026, or the December 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 sustainability considerations into its business plans. Cenovus common shares are listed on the Toronto and New York stock exchanges. 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

CENOVUS ENERGY NEWS RELEASE | 9

Exhibit 99.2

Cenovus Energy Inc.

Management’s Discussion and Analysis (unaudited)

For the Period Ended March 31, 2026

(Canadian Dollars)

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the period ended March 31, 2026

TABLE OF CONTENTS

OVERVIEW OF CENOVUS						3
QUARTERLY RESULTS OVERVIEW						3
OPERATING AND FINANCIAL RESULTS						5
COMMODITY PRICES UNDERLYING OUR FINANCIAL RESULTS						9
OUTLOOK						12
REPORTABLE SEGMENTS						13
UPSTREAM						13
OIL SANDS						13
CONVENTIONAL						17
OFFSHORE						18
DOWNSTREAM						20
CANADIAN REFINING						20
U.S. REFINING						22
CORPORATE AND ELIMINATIONS						23
LIQUIDITY AND CAPITAL RESOURCES						24
RISK MANAGEMENT AND RISK FACTORS						28
CRITICAL ACCOUNTING JUDGMENTS, ESTIMATION UNCERTAINTIES AND ACCOUNTING POLICIES						28
CONTROL ENVIRONMENT						29
ADVISORY						29
ABBREVIATIONS AND DEFINITIONS						32
SPECIFIED FINANCIAL MEASURES						33

This Management’s Discussion and Analysis (“MD&A”) for Cenovus Energy Inc. (which includes references to “we”, “our”, “us”, “its”, the “Company”, or “Cenovus”, and means Cenovus Energy Inc., the subsidiaries of, joint arrangements, and partnership interests held directly or indirectly by, Cenovus Energy Inc.) dated May 5, 2026, should be read in conjunction with our March 31, 2026 unaudited interim Consolidated Financial Statements and accompanying notes (“interim Consolidated Financial Statements”), the December 31, 2025 audited Consolidated Financial Statements and accompanying notes (“Consolidated Financial Statements”) and the December 31, 2025 MD&A (“annual MD&A”). All of the information and statements contained in this MD&A are made as at May 5, 2026, unless otherwise indicated. This MD&A contains forward-looking information about our current expectations, estimates, projections and assumptions. See the Advisory for information on the risk factors that could cause actual results to differ materially and the assumptions underlying our forward-looking information. Cenovus management (“Management”) prepared the MD&A. The Audit Committee of the Cenovus Board of Directors (“the Board”) reviewed and recommended the MD&A for approval by the Board, which occurred on May 5, 2026. Additional information about Cenovus, including our quarterly and annual reports, Annual Information Form (“AIF”) and Form 40-F, is available on SEDAR+ at sedarplus.ca, on EDGAR at sec.gov and on our website at cenovus.com. Information on or connected to our website, even if referred to in this MD&A, do not constitute part of this MD&A.

Basis of Presentation

This MD&A and the interim Consolidated Financial Statements were prepared in Canadian dollars (which includes references to “dollar” or “$”), except where another currency is indicated, and in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) (the “IFRS Accounting Standards”). Production volumes are presented on a before royalties basis. Refer to the Abbreviations and Definitions section for commonly used oil and gas terms.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis 2

OVERVIEW OF CENOVUS

We are a Canadian-based integrated energy company headquartered in Calgary, Alberta. We are one of the largest Canadian-based crude oil and natural gas producers, with upstream operations in Canada and the Asia Pacific region, and one of the largest Canadian-based refiners and upgraders, with downstream operations in Canada and the United States (“U.S.”).

Our upstream operations include oil sands projects in northern Alberta; thermal and conventional crude oil, natural gas and natural gas liquids (“NGLs”) projects across Western Canada; crude oil production offshore Newfoundland and Labrador; and natural gas and NGLs production offshore China and Indonesia. Our downstream operations include upgrading and refining operations in Canada and the U.S.

Our operations involve activities across the full value chain to develop, produce, refine, transport and market crude oil, natural gas and refined petroleum products in North America and internationally. Our physically and economically integrated upstream and downstream operations help us mitigate the impact of volatility in light-heavy crude oil price differentials and contribute to our net earnings by capturing value from crude oil, natural gas and NGLs production through to the sale of finished products such as transportation fuels.

QUARTERLY RESULTS OVERVIEW

In the first quarter of 2026, we continue to deliver strong and reliable operations across all areas of our business through the disciplined execution of our business plan. Our financial results reflect solid operational performance and an overall improvement in the commodity price environment compared with the fourth quarter of 2025.

•Ongoing commitment to safety. Safety is our top value. Strengthening our safety record and maintaining reliable operations throughout our portfolio continues to be our focus.

•Strong upstream production. Total upstream production increased to 972.1 thousand BOE per day, primarily due to a full quarter of additional production from the acquisition of MEG Energy Corp. (“MEG”) through a plan of arrangement that closed on November 13, 2025 (the “MEG Acquisition”).

•Integration of MEG. Following the MEG Acquisition, we accelerated our redevelopment program at Christina Lake North, with the first redevelopment wells achieving first oil in April. In parallel, we executed a delineation program to further progress the expansion project and continued advancing optimization activities at the Christina Lake North facility. By the end of the first quarter of 2026, corporate integration and initial synergy capture initiatives were substantially complete.

•Advanced key Oil Sands growth projects. Our results in the first quarter reflect the success of key growth projects completed in the second half of 2025, including the continued ramp-up of production from the Narrows Lake tie-back to Christina Lake and incremental volumes from the Foster Creek optimization project. We continued to progress the heavy oil drilling program at our Lloydminster conventional heavy oil assets. In April 2026, the first of the new well pads in the east development area was brought online for the Sunrise growth project and production commenced. The Foster Creek Amine Claus project was mechanically completed and commissioning work is underway.

•Progressed the West White Rose project. Subsequent to March 31, 2026, we completed systems integration testing and commenced drilling operations. We are now on track to deliver first oil in the third quarter of 2026.

•Strong downstream operations. Average crude oil throughput (“throughput”) across our downstream assets was 458.5 thousand barrels per day, representing crude unit utilization of 97 percent. Our Canadian assets continue to run at or above capacity, while our U.S. assets continue to demonstrate reliable operations, allowing us to capture opportunities from changing market conditions.

•Reported solid financial results. Adjusted Funds Flow increased to $3.4 billion from $2.7 billion in the fourth quarter of 2025, driven by higher commodity prices, increased Oil Sands sales volumes and strong operational performance across our assets. Cash from operating activities was $2.2 billion, a decrease from $2.4 billion in the fourth quarter of 2025, mainly due to changes in non-cash working capital.

•Reduced long-term debt. We repaid $500 million under our term loan facility, which was obtained to fund a portion of the cash consideration for the MEG Acquisition.

•Delivered significant returns to shareholders. We returned $1.0 billion to common and preferred shareholders, including $379 million through common and preferred share dividends, $356 million through the purchase of 11.5 million common shares under our normal course issuer bid (“NCIB”) and $300 million for the redemption of the Company’s series 1 and 2 preferred shares.

•Base dividend increase. On May 5, 2026, the Board declared a second quarter base dividend of $0.220 per common share, an increase of 10 percent from the first quarter dividend declared in February 2026.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  3

Summary of Quarterly Results

									2026						2025																								2024
($ millions, except where indicated)															Q1																		Q4						Q3						Q2						Q1						Q4						Q3						Q2
Upstream Production Volumes (1) (2) (MBOE/d)															972.1																		917.9						832.9						765.9						818.9						816.0						771.3						800.8
Downstream Total Processed Inputs (3) (4) (Mbbls/d)															484.4																		498.4						757.6						714.9						700.5						700.5						674.4						652.9
Crude Oil Unit Throughput (3) (Mbbls/d)															458.5																		465.5						710.7						665.8						665.4						666.7						642.9						622.7
Downstream Production Volumes (1) (3) (Mbbls/d)															509.3																		527.5						770.3						729.4						722.4						722.6						685.2						659.5
Revenues (5)															12,356																		10,883						13,195						12,319						13,299						12,813						13,819						14,582
Operating Margin (6)															4,442																		2,777						2,954						2,066						2,811						2,274						2,408						2,936
Operating Margin – Upstream (7)															3,708																		2,628						2,590						2,137						3,048						2,670						2,731						3,089
Operating Margin – Downstream (7)															734																		149						364						(71)						(237)						(396)						(323)						(153)
Cash From (Used In) Operating Activities															2,181																		2,408						2,131						2,374						1,315						2,029						2,474						2,807
Adjusted Funds Flow (6)															3,377																		2,674						2,466						1,519						2,212						1,601						1,960						2,361
Per Share – Basic (6) ($)															1.80																		1.47						1.38						0.84						1.21						0.88						1.06						1.27
Per Share – Diluted (6) ($)															1.80																		1.46						1.38						0.84						1.21						0.87						1.05						1.26
Capital Investment															1,170																		1,360						1,154						1,164						1,229						1,478						1,346						1,155
Free Funds Flow (6)															2,207																		1,314						1,312						355						983						123						614						1,206
Excess Free Funds Flow (6)															1,723																		(1,597)						745						(306)						373						(416)						146						735
Net Earnings (Loss)															1,570																		934						1,286						851						859						146						820						1,000
Per Share – Basic ($)															0.84																		0.51						0.72						0.47						0.47						0.08						0.44						0.53
Per Share – Diluted ($)															0.83																		0.50						0.72						0.45						0.47						0.07						0.42						0.53
Total Assets															64,848																		63,424						53,573						55,820						56,380						56,539						54,680						56,000
Long-Term Debt, Including Current Portion															10,633																		11,032						7,156						7,241						7,524						7,534						7,199						7,275
Net Debt															8,058																		8,292						5,255						4,934						5,079						4,614						4,196						4,258
Cash Returns to Common and Preferred Shareholders															1,035																		1,094						1,274						819						595						706						1,070						1,034
Common Shares – Base Dividends															377																		376						356						364						327						330						329						334
Base Dividends Per Common Share ($)															0.200																		0.200						0.200						0.200						0.180						0.180						0.180						0.180
Common Shares – Variable Dividends															—																		—						—						—						—						—						—						251
Variable Dividends Per Common Share ($)															—																		—						—						—						—						—						—						0.135
Purchase of Common Shares Under NCIB															356																		714						918						301						62						108						732						440
Dividends Paid on Preferred Shares															2																		4						—						4						6						18						9						9
Preferred Share Redemptions															300																		—						—						150						200						250						—						—

(1)Refer to the Operating and Financial Results section of this MD&A for a summary of total production by product type.

(2)Includes results of the MEG Acquisition from November 13, 2025.

(3)Represents Cenovus’s net interest in refining operations. On September 30, 2025, Cenovus divested its entire 50 percent interest in the jointly-owned Wood River and Borger refineries held through WRB Refining LP (“WRB”) (the “WRB Divestiture”). Following the WRB Divestiture, all refining operations are wholly-owned.

(4)Total processed inputs include crude oil and other feedstocks. Blending is excluded.

(5)2024 comparative periods reflect certain revisions. See the Prior Period Revisions section in our annual MD&A for the year ended December 31, 2024, for further details.

(6)Non-GAAP financial measure or contains a non-GAAP financial measure. See the Specified Financial Measures Advisory of this MD&A.

(7)Specified financial measure. See the Specified Financial Measures Advisory of this MD&A.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  4

OPERATING AND FINANCIAL RESULTS

Selected Operating Results — Upstream

									Three Months Ended March 31,
																											Percent Change
																		2026												2025
Production Volumes by Segment (1) (MBOE/d)
Oil Sands (2)																					775.0						24						626.2
Conventional (3)																					121.7						(2)						123.9
Offshore (3)																					75.4						10						68.8
Total Production Volumes																					972.1						19						818.9
Production Volumes by Product (1)
Bitumen (Mbbls/d)																					743.6						23						602.5
Heavy Crude Oil (Mbbls/d)																					29.0						33						21.8
Light Crude Oil (Mbbls/d)																					24.3						45						16.8
NGLs (Mbbls/d)																					33.2						11						29.8
Conventional Natural Gas (MMcf/d)																					852.0						(4)						887.9
Total Production Volumes (MBOE/d)																					972.1						19						818.9

(1)Refer to the Oil Sands, Conventional and Offshore reportable segments section of this MD&A for a summary of production by product type.

(2)Results for the three months ended March 31, 2026, include the MEG Acquisition, which closed on November 13, 2025.

(3)Reported production volumes in the Conventional and Offshore segments include Cenovus’s 30 percent equity interest in the Duvernay Energy Corporation (“Duvernay”) joint venture and 40 percent equity interest in the Husky-CNOOC Madura Limited (“HCML”) joint venture, respectively. Our equity interests in Duvernay and HCML are accounted for using the equity method in the interim Consolidated Financial Statements.

Production

Total upstream production increased in the first quarter of 2026 compared with the first quarter of 2025, primarily due to:

•Additional production at Christina Lake from the MEG Acquisition and the continued ramp-up of production following the completion of the Narrows Lake tie-back to Christina Lake in the third quarter of 2025.

•Incremental production from the completion of the Foster Creek optimization project in the fourth quarter of 2025 and successful base well optimization activities.

•Successful results from redevelopment and sustaining programs at Sunrise.

•Strong production from our Atlantic operations in the Offshore segment following the completion of the SeaRose asset life extension (“ALE”) project in the first quarter of 2025.

Selected Operating Results — Downstream

									Three Months Ended March 31,
																											Percent Change
																		2026												2025
Crude Oil Unit Throughput by Segment (Mbbls/d)
Canadian Refining																					115.3						3						111.9
U.S. Refining																					343.2						(38)						553.5
Total Crude Oil Unit Throughput																					458.5						(31)						665.4
Production Volumes by Product (1) (Mbbls/d)
Gasoline																					185.1						(35)						284.7
Distillates (2)																					138.5						(38)						224.3
Synthetic Crude Oil																					52.0						(1)						52.4
Asphalt																					34.7						(18)						42.3
Ethanol																					5.5						28						4.3
Other																					93.5						(18)						114.4
Total Production Volumes																					509.3						(29)						722.4

(1)Refer to the Canadian Refining and U.S. Refining reportable segments section of this MD&A for a summary of production by product type.

(2)Includes diesel and jet fuel.

In the first quarter of 2026, total downstream throughput and refined product production decreased compared with the same period in 2025, primarily due to the WRB Divestiture completed on September 30, 2025. The decreases were partially offset by our Canadian Refining assets running at, or above, full capacity, and reliable operations at our U.S. Refining assets.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  5

Selected Consolidated Financial Results

Revenues

During the first quarter of 2026, revenues decreased seven percent compared with the first quarter of 2025, primarily due to lower sales volumes from our U.S. Refining segment as a result of the WRB Divestiture. The decrease was partially offset by higher Oil Sands sales volumes following the MEG Acquisition and our downstream results being positively impacted by higher distillate pricing.

Operating Margin

Operating Margin is a non-GAAP financial measure and is used to provide a consistent measure of the cash-generating performance of our assets for comparability of our underlying financial performance between periods.

									Three Months Ended March 31,
($ millions)															2026						2025
Gross Sales
External Sales															13,339						14,205
Intersegment Sales															2,658						2,752
															15,997						16,957
Royalties															(983)						(906)
Revenues															15,014						16,051
Expenses
Purchased Product															5,622						8,249
Transportation and Blending															3,375						3,247
Operating Expenses															1,573						1,747
Realized (Gain) Loss on Risk Management															2						(3)
Operating Margin															4,442						2,811

Operating Margin by Segment

Three Months Ended March 31, 2026 and 2025

Operating Margin increased in the first quarter of 2026 compared with the first quarter of 2025, primarily due to:

•Higher Gross Margin in our downstream segments, due to the benefit of processing feedstock purchased at lower prices and higher distillate pricing.

•Higher Operating Margin in our Oil Sands segment, primarily due to a full quarter of operations from the MEG Acquisition.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  6

Cash From (Used in) Operating Activities and Adjusted Funds Flow

Adjusted Funds Flow is a non-GAAP financial measure commonly used in the oil and gas industry to assist in measuring a company’s ability to finance its capital programs and meet its financial obligations.

									Three Months Ended March 31,
($ millions)															2026						2025
Cash From (Used in) Operating Activities															2,181						1,315
(Add) Deduct:
Settlement of Decommissioning Liabilities															(53)						(36)
Net Change in Non-Cash Working Capital															(1,143)						(861)
Adjusted Funds Flow															3,377						2,212

Adjusted Funds Flow was higher in the first quarter of 2026 compared with the same period in 2025, primarily due to increased Operating Margin, partially offset by higher current tax expense.

Cash from operating activities increased in the first quarter of 2026 compared with the first quarter of 2025, primarily due to increased Operating Margin, partially offset by changes in non-cash working capital and higher current tax expense. The net change in non-cash working capital was a use of cash of $1.1 billion, compared with $861 million in first quarter of 2025, primarily due to an increase in accounts receivable and inventories, partially offset by higher accounts payable and lower income tax receivable.

Net Earnings (Loss)

Net earnings in the first quarter of 2026 was $1.6 billion, compared with $859 million in first quarter of 2025, due to higher Operating Margin, as discussed above, partially offset by higher income tax expense, general and administrative expense, and DD&A expense.

Net Debt

As at			March 31, 2026												December 31, 2025
Current Portion of Long-Term Debt			—												—
Long-Term Portion of Long-Term Debt			10,633												11,032
Total Debt			10,633												11,032
Less: Cash and Cash Equivalents			(2,575)												(2,740)
Net Debt			8,058												8,292

Total Debt decreased $399 million from December 31, 2025, primarily due to the repayment of $500 million under our term loan facility, partially offset by unrealized foreign exchange losses on U.S. dollar denominated long-term debt due to the weakening of the Canadian dollar.

Net Debt decreased $234 million from December 31, 2025, due to cash from operating activities of $2.2 billion and net proceeds on repurchase agreements of $294 million, partially offset by capital investment of $1.2 billion and returns to shareholders of $1.0 billion. For further details, see the Liquidity and Capital Resources section of this MD&A.

Capital Investment (1)

															Three Months Ended March 31,
($ millions)																		2026						2025
Upstream
Oil Sands																					851						763
Conventional																					93						122
Offshore																					142						241
Total Upstream																					1,086						1,126
Downstream
Canadian Refining																					24						22
U.S. Refining																					58						77
Total Downstream																					82						99
Corporate and Eliminations																					2						4
Total Capital Investment																					1,170						1,229

(1)Includes expenditures on property, plant and equipment (“PP&E”), exploration and evaluation (“E&E”) assets, and capitalized interest. Excludes capital expenditures related to joint ventures accounted for using the equity method in the interim Consolidated Financial Statements.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  7

Capital investment in the first quarter of 2026 was primarily related to:

•Sustaining activities in our Oil Sands segment including the delivery of our integrated winter program.

•Drilling, completion, tie-in and infrastructure projects in the Conventional segment.

•Sustaining activities in our refining segments.

•The support and progression of growth projects.

During the first quarter of 2026, we advanced key growth projects across our business:

•At Christina Lake, we accelerated our redevelopment program at Christina Lake North, with the first redevelopment wells achieving first oil in April. In parallel, we executed a delineation program to further progress the expansion project and continued advancing optimization activities at the Christina Lake North facility.

•At Lloydminster, the conventional heavy oil drilling program continued to progress with new production brought online during the quarter.

•As part of the Sunrise growth project, we brought the first of the new well pads online in the east development area in April 2026.

•We achieved mechanical completion for the Foster Creek Amine Claus project and commissioning work is underway.

Subsequent to March 31, 2026, we completed systems integration testing and commenced drilling operations at the West White Rose project. We are now on track to deliver first oil in the third quarter of 2026.

Drilling Activity

			Net Stratigraphic Test Wells and Observation Wells												Net Production Wells (1)
Three Months Ended March 31,			2026						2025						2026						2025
Foster Creek			78						73						5						8
Christina Lake (2)			111						65						19						5
Sunrise			18						21						—						—
Lloydminster Thermal			2						—						11						2
Lloydminster Conventional Heavy Oil			—						—						6						9
			209						159						41						24

(1)Steam-assisted gravity drainage (“SAGD”) well pairs in the Oil Sands segment are counted as a single producing well.

(2)Results for the three months ended March 31, 2026, include the MEG Acquisition, which closed on November 13, 2025.

Stratigraphic test wells were drilled to help identify future well pad locations and to further evaluate our assets. Observation wells were drilled to gather information and monitor reservoir conditions.

Three Months Ended March 31, 2026

Three Months Ended March 31, 2025

(net wells)

Drilled

Completed

Tied-in

Drilled

Completed

Tied-in

Conventional (1)

15

7

7

13

14

13

(1)Includes values attributable to Cenovus’s 30 percent equity interest in the Duvernay joint venture.

In the Offshore segment, no wells were drilled or completed in the first quarter of 2026 or 2025.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  8

COMMODITY PRICES UNDERLYING OUR FINANCIAL RESULTS

The following table shows selected market benchmark prices and average exchange rates to assist in understanding our financial results. For a full discussion of our commodity prices and related key performance drivers, refer to our 2025 annual MD&A.

Selected Benchmark Prices and Exchange Rates (1)

(Average US$/bbl, unless otherwise indicated)									Q1 2026						Percent Change																					Q1 2025						Q4 2025
Dated Brent									80.61						7																					75.66						63.69
WTI									71.93						1																					71.42						59.14
Differential Dated Brent – WTI									8.68						105																					4.24						4.55
WCS at Hardisty									57.76						(2)																					58.75						47.94
Differential WTI – WCS at Hardisty									14.17						12																					12.67						11.20
WCS at Hardisty (C$/bbl)									79.21						(6)																					84.31						66.89
WCS at Nederland									65.21						(4)																					67.74						55.63
Differential WTI – WCS at Nederland									6.72						83																					3.68						3.51
Condensate (C5 at Edmonton)									71.40						2																					69.88						57.01
Differential Condensate – WTI Premium/(Discount)									(0.53)						(66)																					(1.54)						(2.13)
Differential Condensate – WCS at Hardisty Premium/(Discount)									13.64						23																					11.13						9.07
Condensate (C$/bbl)									97.91						(2)																					100.29						79.54
Synthetic at Edmonton									71.54						4																					69.07						57.84
Differential Synthetic – WTI Premium/(Discount)									(0.39)						(83)																					(2.35)						(1.30)
Synthetic at Edmonton (C$/bbl)									98.10						(1)																					99.12						80.69
Refined Product Prices
Chicago Regular Unleaded Gasoline (“RUL”)									81.24						(2)																					83.08						70.66
Chicago Ultra-low Sulphur Diesel (“ULSD”)									105.95						19																					89.12						90.70
Refining Benchmarks
Chicago 3-2-1 Crack Spread (2)									17.55						28																					13.68						18.20
Group 3 3-2-1 Crack Spread (2)									17.16						4																					16.48						19.25
Renewable Identification Numbers (“RINs”)									8.71						83																					4.76						6.04
Upgrading Differential (3) (C$/bbl)									18.55						26																					14.69						13.53
Natural Gas Prices
AECO (4) (C$/Mcf)									2.01						(7)																					2.17						2.23
NYMEX (5) (US$/Mcf)									5.04						38																					3.65						3.55
Differential AECO – NYMEX (US$/Mcf)									(3.58)						67																					(2.14)						(1.94)
Foreign Exchange Rates
US$ per C$1 – Average									0.729						5																					0.697						0.717
US$ per C$1 – End of Period									0.717						3																					0.696						0.730
Chinese Yuan (“RMB”) per C$1 – Average									5.048						—																					5.069						5.084

(1)These benchmark prices are not our Realized Sales Prices and represent approximate values. For our Realized Sales Prices refer to the Netback tables in the upstream reportable segments section of this MD&A.

(2)The average 3-2-1 crack spread is an indicator of the adjusted refining margin and is valued on a last-in, first-out accounting basis.

(3)The upgrading differential is the difference between synthetic crude oil at Edmonton and Lloydminster Blend crude oil at Hardisty. The upgrading differential does not precisely mirror the configuration and the product output of our Canadian Refining assets; however, it is used as a general market indicator.

(4)Alberta Energy Company (“AECO”) 5A natural gas daily index.

(5)New York Mercantile Exchange (“NYMEX”) natural gas monthly index.

Crude Oil and Condensate Benchmarks

In the first quarter of 2026, global crude oil benchmark prices, Brent and WTI, increased compared with the first quarter of 2025. Prices entered 2026 at lower levels than the previous year, as global supply exceeded demand, leading to a continued building of inventory globally. However, prices spiked following the commencement of the U.S.-Iran conflict as markets rapidly priced in a higher risk of supply disruption. The effective closure of the Strait of Hormuz, a narrow maritime choke point crucial to large volumes of global crude and refined products trade, stranded volumes resulting in a near-term shortfall in global supply. Markets continue to experience very high volatility as this conflict evolves.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  9

The WTI-WCS differential at both Hardisty and Nederland widened in the first quarter of 2026, compared with the same period in 2025. Heavy crude weakened relative to WTI due to high global supply of heavy grades as OPEC+ continued to unwind production cuts, with further downward pressure due to incremental Venezuelan heavy barrels re-entering the export market following the capture of former Venezuela President Nicolas Maduro.

In Canada, we upgrade heavy crude oil and bitumen into a sweet synthetic crude oil, the Husky Synthetic Blend (“HSB”), at the Upgrader. The price realized for HSB is primarily driven by the price of WTI, and by the supply and demand of sweet synthetic crude oil from Western Canada, which influences the WTI-Synthetic differential.

In the first quarter of 2026, synthetic crude oil at Edmonton strengthened relative to WTI compared with the same period in 2025. The strength in pricing relative to the first quarter of 2025 was driven in part by strong diesel pricing, as synthetic crude yields a higher proportion of diesel than other crude grades.

In the first quarter of 2026, the average Edmonton condensate benchmark traded at a smaller discount to WTI compared with the first quarter of 2025, due to tight Canadian supply and strong demand for heavy crude blending.

Crude Oil Benchmark Prices (1)

(1)Forward pricing as at March 31, 2026.

Refining Benchmarks

RUL and ULSD benchmark prices are representative of inland refined product prices and are used to derive the Chicago 3-2-1 market crack spread. The 3-2-1 market crack spread is an indicator of the adjusted refining margin generated by converting three barrels of crude oil into two barrels of regular unleaded gasoline and one barrel of ultra-low sulphur diesel, using current-month WTI-based crude oil feedstock prices and valued on a last-in, first-out basis.

In the first quarter of 2026, refined product crack spreads in Chicago and Group 3 increased compared with the first quarter of 2025. The increase is largely a result of sharp price spikes for diesel following the U.S.-Iran conflict, which has limited global supply of refined products, as well as crude. The average cost of RINs was higher in the first quarter of 2026, compared with the same period in 2025, due to weaker U.S. production and imports of renewable diesel and biodiesel causing a decline in RINs generation.

North American refining crack spreads are expressed on a WTI basis, while refined products are generally set by global prices. The strength of refining market crack spreads in the U.S. Midwest and Midcontinent generally reflects the differential between Brent and WTI benchmark prices.

Our adjusted refining margin is affected by various other factors such as the quality and purchase location of crude oil feedstock, refinery configuration and product output. The benchmark market crack spreads do not precisely mirror the configuration and product output of our refineries, or the location we sell product; however, they are used as a general market indicator. Refer to the Specified Financial Measures Advisory of this MD&A for further details.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  10

Refined Product Benchmarks (1)

(1)Forward pricing as at March 31, 2026.

Natural Gas Benchmarks

In the first quarter of 2026, AECO prices decreased while NYMEX prices increased, compared with the same period in 2025. The increase in NYMEX prices was supported by strong liquified natural gas (“LNG”) demand and winter-driven heating demand, while the decrease in AECO prices was impacted by limited Western Canadian takeaway capacity, causing the AECO discount to NYMEX to widen. In the first quarter of 2026, both Western Canadian and U.S. natural gas production increased compared with the first quarter of 2025. The price received for our Asia Pacific natural gas production is largely based on long-term contracts.

Foreign Exchange and Interest Rate Benchmarks

Our revenues are subject to foreign exchange exposure as the sales prices of our crude oil, NGLs, natural gas and refined products are determined by reference to U.S. dollar benchmark prices. In the first quarter of 2026, on average, the Canadian dollar strengthened relative to the U.S. dollar compared with the first quarter of 2025, negatively impacting our reported revenues and positively impacting our U.S. Refining operating expenses.

A portion of our long-term sales contracts in the Asia Pacific region are priced in RMB. An increase in the value of the Canadian dollar relative to the RMB will decrease the revenues received in Canadian dollars from the sale of natural gas commodities in the region. In the first quarter of 2026, on average, the Canadian dollar remained relatively consistent to the RMB, compared with the first quarter of 2025.

Our interest income, floating rate borrowing costs, reported decommissioning liabilities and fair value measurements are impacted by fluctuations in interest rates. A change in interest rates could change our net finance costs, affect how certain liabilities are measured, and impact our cash flow and financial results.

As at March 31, 2026, the Bank of Canada’s policy interest rate was 2.25 percent. On April 29, 2026, the Bank of Canada held the policy interest rate at 2.25 percent.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  11

OUTLOOK

Commodity Price Outlook

Global crude oil prices entered 2026 lower than the first quarter of 2025, as supply growth outpaced demand following the unwinding of OPEC+ voluntary cuts, with risks that oversupply was likely to continue throughout the year and weigh on prices. The U.S.-Iran conflict resulted in an immediate spike in global prices and altered the short-to-medium-term outlook for all aspects of the energy industry. The effective closure of the Strait of Hormuz introduced high volatility across crude, refined products and natural gas prices, stranding energy supply and introducing a wide range of potential outcomes. Price direction remains highly uncertain and dependent on any deescalation or intensification of the conflict, damage to infrastructure, inventory constraints, production shut-ins, refinery curtailment in the Middle East and other areas dependent on supply from that region and the impact to the economy amongst other unpredictable variables. OPEC+ policy continues to remain crucial to global oil supply and demand balances and prices amid this conflict. Policy and sanction uncertainty related to Venezuelan crude exports continues to influence global heavy crude oil supply and trade flows. The global trade war and ongoing geopolitical tensions may reduce global GDP growth and oil demand, while increasing recessionary risks and potentially having additional knock-on effects to the economy.

In addition to the above, our commodity pricing outlook for the next 12 months is influenced by the following:

•OPEC+ policy and the pace at which OPEC+ unwinds production cuts.

•In the near-term, there is a higher risk of a tariff-induced global economic slowdown that could slow oil demand.

•We expect the WTI-WCS at Hardisty differential will remain largely tied to global supply factors and heavy crude oil processing capacity, as long as supply does not exceed Canadian crude oil export capacity.

•Refined product prices and market crack spreads are likely to continue to fluctuate, adjusting for seasonal trends and refinery utilization in North America and globally.

•Condensate prices will fluctuate seasonally with oil sands blending demand, import pipeline utilization, and global supply and demand factors.

•AECO and NYMEX natural gas prices are expected to remain volatile, impacted by LNG export capacity and weather-driven demand factors.

•We expect the Canadian dollar to continue to be impacted by the pace at which the U.S. Federal Reserve Board and the Bank of Canada raise or lower benchmark lending rates relative to each other, the U.S. Administration’s policies toward Canada-U.S. trade, crude oil prices and emerging macro-economic factors.

While we expect to see volatility in crude oil prices, we have the ability to partially mitigate the impact of crude oil and refined product differentials through the following:

•Transportation commitments and arrangements – using our existing firm service commitments for takeaway capacity and supporting transportation projects that move crude oil from our production areas to consuming markets, including tidewater markets.

•Integration – heavy oil refining capacity allows us to capture value from both the WTI-WCS differential for Canadian crude oil and spreads on refined products.

•Monitoring market fundamentals and optimizing run rates at our refineries accordingly.

•Traditional crude oil storage tanks in various geographic locations.

2026 Corporate Guidance

Our 2026 corporate guidance dated December 10, 2025, remains unchanged and is available on our website at cenovus.com.

The following table is a sub-set of our full guidance for 2026:

			Capital Investment ($ millions)						Production (MBOE/d)						Crude Oil Unit Throughput (Mbbls/d)
Upstream
Oil Sands			3,500 - 3,600						755 - 780
Conventional			450 - 500						120 - 125
Offshore			450 - 500						70 - 80
Upstream Total			4,400 - 4,600						945 - 985
Downstream
Canadian Refining															105 - 110
U.S. Refining															325 - 340
Downstream Total			600 - 700												430 - 450
Corporate and Eliminations			Up to 25

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  12

REPORTABLE SEGMENTS

For a description of our reportable segments, refer to Note 1 of the interim Consolidated Financial Statements.

UPSTREAM

Oil Sands

Financial Results

									Three Months Ended March 31,
($ millions)															2026						2025
Gross Sales
External Sales															6,892						5,904
Intersegment Sales															1,892						1,953
															8,784						7,857
Royalties															(940)						(861)
Revenues															7,844						6,996
Expenses
Purchased Product															617						632
Transportation and Blending															3,283						3,151
Operating															826						677
Realized (Gain) Loss on Risk Management															23						(8)
Operating Margin															3,095						2,544
Unrealized (Gain) Loss on Risk Management															(90)						(7)
Depreciation, Depletion and Amortization															1,027						834
Exploration Expense															1						4
(Income) Loss from Equity-Accounted Affiliates															—						—
Segment Income (Loss)															2,157						1,713

Operating Results

									Three Months Ended March 31,
															2026						2025
Total Sales Volumes (1) (MBOE/d)															766.2						636.8
Crude Oil Production by Asset (Mbbls/d)
Foster Creek															223.0						202.7
Christina Lake (2)															358.9						237.8
Sunrise															59.4						52.1
Lloydminster Thermal															102.3						109.9
Lloydminster Conventional Heavy Oil															29.0						21.8
Total Crude Oil Production (3) (Mbbls/d)															772.6						624.3
Natural Gas (1) (MMcf/d)															14.4						11.4
Total Production (MBOE/d)															775.0						626.2
Effective Royalty Rate (4) (percent)															19.2						21.1
Netback (5) ($/bbl)
Realized Sales Price															79.80						80.99
Royalties															13.57						15.03
Transportation and Blending															8.86						9.85
Operating															11.92						11.77
Total Netback ($/bbl)															45.45						44.34

(1)Bitumen, heavy crude oil and natural gas. Natural gas is a conventional natural gas product type.

(2)Results for the three months ended March 31, 2026, include the MEG Acquisition, which closed on November 13, 2025.

(3)Crude oil production is primarily bitumen, except for Lloydminster conventional heavy oil, which is heavy crude oil.

(4)Effective royalty rates are equal to royalty expense divided by product revenue, net of transportation expenses, excluding realized (gain) loss on risk management.

(5)Contains a non-GAAP financial measure. See the Specified Financial Measures Advisory of this MD&A.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  13

Revenues

Gross sales increased in the first quarter of 2026 compared with the same period in 2025, due to higher sales volumes, partially offset by a slightly lower Realized Sales Price.

Price

Our bitumen and heavy oil production is blended with condensate in order to transport it to market through pipelines. In our Netback calculations, Realized Sales Price excludes the impact of purchased condensate but is influenced by condensate pricing. As the cost of condensate increases relative to the price of blended crude oil or our blend ratio increases, our realized bitumen and heavy oil sales price decreases.

Our Realized Sales Price in the first quarter of 2026 decreased slightly compared with the same period in 2025, reflecting a wider WTI-WCS differential, partially offset by slightly higher WTI benchmark prices.

Sales by Location

In the first quarter of 2026, approximately 31 percent of our sales volumes were sold to third-parties at destinations outside of Alberta, which includes the West Coast of Canada, PADD II and USGC. Approximately 23 percent of our sales volumes were sold to our downstream operations in the quarter.

Production Volumes

Oil Sands crude oil production increased in the first quarter of 2026, compared with the same period in 2025, primarily due to:

•Additional production at Christina Lake from the MEG Acquisition and the continued ramp-up of production following the completion of the Narrows Lake tie-back to Christina Lake in the third quarter of 2025.

•Incremental production from the completion of the Foster Creek optimization project in the fourth quarter of 2025 and successful base well optimization activities.

•Successful redevelopment at our Lloydminster assets resulting in higher reservoir performance.

•Successful results from the redevelopment and sustaining programs at Sunrise.

The increases were partially offset by the ramp-up of production at our Rush Lake facilities following an incident in the second quarter of 2025. In the fourth quarter of 2025, we successfully restarted production and ramp-up activities are progressing.

Royalties

Royalty calculations for our Oil Sands segment are based on government prescribed royalty regimes in Alberta and Saskatchewan. Refer to our 2025 annual MD&A for further details.

In the first quarter of 2026, Oil Sands royalties increased compared with the same period in 2025, primarily due to higher sales volumes as a result of the MEG Acquisition, partially offset by lower Alberta sliding scale oil sands royalty rates. The Oil Sands effective royalty rate in the first quarter of 2026 decreased compared with the same period in 2025, mainly due to lower Alberta sliding scale oil sands royalty rates.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  14

Expenses

Transportation and Blending

In the first quarter of 2026, blending expenses increased compared with the same period in 2025, primarily due to higher sales volumes, partially offset by the use of lower priced condensate purchased in prior periods.

In the first quarter of 2026, transportation expenses increased compared with the same period in 2025, primarily due to higher sales volumes, partially offset by a decrease in per-unit transportation expenses.

Per-Unit Transportation Expenses (1)

									Three Months Ended March 31,
($/bbl)															2026						2025
Foster Creek															12.28						15.85
Christina Lake															8.08						6.12
Sunrise															13.55						18.07
Lloydminster (2)															2.87						3.42
Total Oil Sands															8.86						9.85

(1)Specified financial measure. See the Specified Financial Measures Advisory of this MD&A.

(2)Includes Lloydminster thermal and Lloydminster conventional heavy oil assets.

Per-unit transportation expenses decreased in the first quarter of 2026 compared with first quarter of 2025, due to:

•Lower per-unit transportation expenses at Foster Creek, primarily due to lower sales volumes on TMX and lower rail costs. In the first quarter of 2026, 24 percent and 35 percent of our sales volumes were sold at West Coast and U.S. destinations, respectively (2025 – 32 percent and 35 percent, respectively).

•Lower per-unit transportation expenses at Sunrise, primarily due to lower sales volumes on TMX, partially offset by higher sales volumes to U.S. destinations. In the first quarter of 2026, 28 percent and 37 percent of our sales volumes were sold at West Coast and U.S. destinations, respectively (2025 – 73 percent and 27 percent, respectively).

•Lower per-unit transportation expenses at Lloydminster, primarily due to lower sales volumes sold at U.S. destinations. During the first quarter of 2026, no sales volumes were sold at U.S. destinations (2025 – two percent).

Lower Oil Sands per-unit transportation expenses, as discussed above, were partially offset by higher per-unit transportation expenses at Christina Lake, primarily due to higher sales volumes on TMX following the MEG Acquisition. During the first quarter of 2026, we shipped eight percent and 16 percent of our total sales volumes at West Coast and U.S. destinations, respectively (2025 – nil and 15 percent, respectively).

Operating

Primary drivers of our operating expenses in the three months ended March 31, 2026, were energy, workforce, and repairs and maintenance. Total operating expenses in the first quarter of 2026 increased compared with the first quarter of 2025, primarily due to higher overall operating costs at our Christina Lake assets related to the additional production from the MEG Acquisition.

Per-Unit Operating Expenses (1)

									Three Months Ended March 31,
($/bbl)																					2026						Percent Change						2025
Foster Creek
Fuel																					2.53						5						2.41
Non-Fuel																					7.75						5						7.41
Total																					10.28						5						9.82
Christina Lake
Fuel																					3.03						21						2.50
Non-Fuel																					6.20						(1)						6.26
Total																					9.23						5						8.76

(1)Specified financial measure. See the Specified Financial Measures Advisory of this MD&A.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  15

Per-Unit Operating Expenses (1) — Continued

									Three Months Ended March 31,
($/bbl)																					2026						Percent Change						2025
Sunrise
Fuel																					4.18						(3)						4.33
Non-Fuel																					13.57						3						13.22
Total																					17.75						1						17.55
Lloydminster (2)
Fuel																					3.19						(13)						3.68
Non-Fuel																					16.09						9						14.78
Total																					19.28						4						18.46
Total Oil Sands
Fuel																					3.00						5						2.85
Non-Fuel																					8.92						—						8.92
Total																					11.92						1						11.77

(1)Specified financial measure. See the Specified Financial Measures Advisory of this MD&A.

(2)Includes Lloydminster thermal and Lloydminster conventional heavy oil assets.

Total Oil Sands per-unit fuel expenses increased in the first quarter of 2026, compared with the same period in 2025, primarily due to higher natural gas consumption from the MEG Acquisition, partially offset by lower average AECO benchmark pricing and lower natural gas consumption at our Lloydminster thermal assets.

Total Oil Sands per-unit non-fuel expenses were consistent between the first quarter of 2026 and 2025 as the increases in per-unit non-fuel operating expenses at our Foster Creek, Sunrise and Lloydminster assets were offset by the decrease in per-unit non-fuel operating expenses at Christina Lake.

•Increased per-unit non-fuel costs at our Lloydminster assets were driven by higher workover and GHG compliance costs.

•Increased per-unit non-fuel costs at Foster Creek primarily due to higher GHG compliance costs, partially offset by slightly higher sales volumes.

•Slight increase in per-unit non-fuel costs at Sunrise primarily due to higher repairs and maintenance, waste management and workforce costs, partially offset by higher sales volumes.

•Slight decrease in per-unit non-fuel costs at Christina Lake primarily due to higher sales volumes, partially offset by higher workforce, repairs and maintenance, and chemicals costs.

Depreciation, Depletion and Amortization

In the first quarter of 2026, Oil Sands DD&A expense increased $193 million compared with first quarter of 2025, primarily as a result of the MEG Acquisition.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  16

Conventional

Financial Results

									Three Months Ended March 31,
($ millions)															2026						2025
Gross Sales
External Sales															568						443
Intersegment Sales															469						501
															1,037						944
Royalties															(18)						(20)
Revenues															1,019						924
Expenses
Purchased Product															623						535
Transportation and Blending															85						90
Operating															110						127
Realized (Gain) Loss on Risk Management															(10)						(1)
Operating Margin															211						173
Unrealized (Gain) Loss on Risk Management															4						—
Depreciation, Depletion and Amortization															134						120
Exploration Expense															—						—
(Income) Loss From Equity-Accounted Affiliates															(1)						—
Segment Income (Loss)															74						53

Operating Results (1)

									Three Months Ended March 31,
															2026						2025
Total Sales Volumes (MBOE/d)															120.5						123.9
Realized Sales Price (2) ($/BOE)
Light Crude Oil ($/bbl)															91.25						89.17
NGLs ($/bbl)															53.98						64.91
Conventional Natural Gas ($/Mcf)															4.31						4.11
Production by Product
Light Crude Oil (Mbbls/d)															6.0						5.2
NGLs (Mbbls/d)															22.9						20.5
Conventional Natural Gas (MMcf/d)															556.4						589.3
Total Production (MBOE/d)															121.7						123.9
Conventional Natural Gas Production (percentage of total)															76						79
Crude Oil and NGLs Production (percentage of total)															24						21
Effective Royalty Rate (3) (percent)															8.8						9.0
Netback (2) ($/BOE)
Realized Sales Price															34.49						34.01
Royalties															1.77						1.83
Transportation and Blending															4.22						5.49
Operating															9.60						10.92
Total Netback ($/BOE)															18.90						15.77

(1)Reported production volumes, sales volumes, associated per-unit values and effective royalty rates include Cenovus’s 30 percent equity interest in the Duvernay joint venture.

(2)Contains a non-GAAP financial measure. See the Specified Financial Measures Advisory of this MD&A.

(3)Effective royalty rates are equal to royalty expense divided by product revenue, net of transportation expenses, excluding realized (gain) loss on risk management.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  17

Revenues

Gross sales increased in the first quarter of 2026, compared with the first quarter of 2025, due to higher commodity trading volumes sourced from third parties and a higher Realized Sales Price, partially offset by lower sales volumes.

Price

Our Realized Sales Price increased slightly in the first quarter of 2026 compared with the same period in 2025, primarily reflecting increased sales volumes to U.S. destinations and a higher average NYMEX natural gas benchmark price, partially offset by lower AECO pricing. In the first quarter of 2026, 30 percent of our natural gas sales volumes were sold at U.S. destinations (2025 – 27 percent) where NYMEX natural gas benchmark prices increased to US$5.04 per Mcf (2025 – US$3.65 per Mcf). The increase was partially offset by AECO natural gas benchmark prices decreasing to $2.01 per Mcf (2025 – $2.17 per Mcf).

Production Volumes

Production volumes decreased slightly in the first quarter of 2026, compared with the same period in 2025. In the first quarter of 2026, we focused on liquids-rich production resulting in higher oil and NGL volumes, offset by lower natural gas volumes.

Royalties

The Conventional assets are subject to royalty regimes in Alberta and British Columbia. Royalties decreased in the first quarter of 2026 compared with the same period in 2025, primarily due to lower benchmark prices used to calculate our royalties. The effective royalty rate in the first quarter of 2026 was relatively consistent with the same period in 2025.

Expenses

Transportation

In the first quarter of 2026, transportation expenses and per-unit transportation expenses decreased compared with the first quarter of 2025, due to lower NGL delivery costs and natural gas tolls.

Operating

Primary drivers of operating expenses in the first quarter of 2026 were repairs and maintenance, workforce and property tax costs. Total operating expenses and per-unit operating expenses decreased compared with the first quarter of 2025, primarily due to lower repairs and maintenance costs.

Offshore

Financial Results

			Three Months Ended March 31,
			2026																		2025
($ millions)			Atlantic						Asia Pacific						Offshore						Atlantic						Asia Pacific						Offshore
Gross Sales
External Sales			252						297						549						146						305						451
Intersegment Sales			—						—						—						—						—						—
			252						297						549						146						305						451
Royalties			(2)						(23)						(25)						(2)						(23)						(25)
Revenues			250						274						524						144						282						426
Expenses
Purchased Product			4						—						4						—						—						—
Transportation and Blending			7						—						7						6						—						6
Operating			82						29						111						64						25						89
Operating Margin (1)			157						245						402						74						257						331
Depreciation, Depletion and Amortization															129																		130
Exploration Expense															11																		1
(Income) Loss from Equity-Accounted Affiliates															(15)																		(8)
Segment Income (Loss)															277																		208

(1)Atlantic and Asia Pacific Operating Margin are non-GAAP financial measures. See the Specified Financial Measures Advisory of this MD&A.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  18

Operating Results

									Three Months Ended March 31,
															2026						2025
Sales Volumes
Atlantic (Mbbls/d)															23.1						15.8
Asia Pacific (MBOE/d)
China															41.5						42.0
Indonesia (1)															15.6						15.2
Total Asia Pacific															57.1						57.2
Total Sales Volumes (MBOE/d)															80.2						73.0
Production by Product
Atlantic – Light Crude Oil (Mbbls/d)															18.3						11.6
Asia Pacific (1)
NGLs (Mbbls/d)															10.3						9.3
Conventional Natural Gas (MMcf/d)															281.2						287.2
Total Asia Pacific (MBOE/d)															57.1						57.2
Total Production (MBOE/d)															75.4						68.8
Effective Royalty Rate (2) (percent)
Atlantic															0.9						1.0
Asia Pacific (1)															11.3						12.6

(1)Reported sales volumes, production volumes and royalty rates reflect Cenovus’s 40 percent equity interest in the HCML joint venture.

(2)Effective royalty rates are equal to royalty expense divided by product revenue, net of transportation expenses, excluding realized (gain) loss on risk management.

Netbacks (1)

			Three Months Ended March 31, 2026
($/BOE, except where indicated)			Atlantic ($/bbl)									China			Indonesia						Total Offshore (2)
Realized Sales Price						117.24						79.38						58.75						86.27
Royalties						1.03						6.02						14.51						6.24
Transportation and Blending						3.56						—						—						1.02
Operating Expenses						39.36						7.43						9.03						16.93
Netback						73.29						65.93						35.21						62.08

			Three Months Ended March 31, 2025
($/BOE, except where indicated)			Atlantic ($/bbl)									China			Indonesia						Total Offshore (2)
Realized Sales Price						102.63						81.01						64.65						82.26
Royalties						1.04						6.13						19.44						7.81
Transportation and Blending						4.25						—						—						0.92
Operating Expenses						45.47						6.00						10.67						15.50
Netback						51.87						68.88						34.54						58.03

(1)Contains a non-GAAP financial measure. See the Specified Financial Measures Advisory of this MD&A.

(2)Reported per-unit values reflect Cenovus’s 40 percent equity interest in the HCML joint venture.

Revenues

Gross sales increased in the first quarter of 2026, compared with the same period in 2025, primarily due to higher sales volumes and higher Realized Sales Prices in our Atlantic operations.

Price

Our Atlantic Realized Sales Price increased in the first quarter of 2026, compared with the first quarter of 2025, due to higher benchmark Brent pricing. The prices we receive for natural gas sold in Asia Pacific are set under long-term contracts.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  19

Production Volumes

Atlantic production increased in the first quarter of 2026, compared with the same period in 2025, due to strong production from the White Rose field. In the first and second quarters of 2025, production at the White Rose field was ramping up following the completion of the SeaRose ALE project in the first quarter of 2025.

Asia Pacific production in the first quarter of 2026 was consistent with the same period in 2025.

Royalties

Atlantic royalties were consistent in the first quarter of 2026 compared with the first quarter of 2025. The Atlantic effective royalty rate was 0.9 percent in the first quarter of 2026 (2025 – one percent).

The Asia Pacific effective royalty rate decreased for the first quarter of 2026 compared with the same period in 2025, due to Indonesian government-issued gas price adjustments applied in the period.

Expenses

Transportation

Transportation expenses include the costs of transporting crude oil from the SeaRose and Terra Nova floating production, storage and offloading units (“FPSO”) to onshore terminals and storage costs. Transportation expenses for the three months ended March 31, 2026, increased to $7 million (2025 – $6 million), primarily due to higher Atlantic sales volumes.

Operating

Primary drivers of our Atlantic operating expenses in the first quarter of 2026 were repairs and maintenance, and workforce costs. Operating expenses increased compared with the same period in 2025, primarily due to higher sales volumes, and higher repairs and maintenance costs.

Per-unit operating expenses decreased compared with the first quarter of 2025, due to higher Atlantic sales volumes, partially offset by the increase in operating expenses, as discussed above.

Primary drivers of our China operating expenses in the first quarter of 2026 were repairs and maintenance, workforce and insurance costs. Per-unit operating expenses increased in the first quarter of 2026, compared with the same period in 2025, primarily due to higher repairs and maintenance, and workforce costs.

Primary drivers of our Indonesia operating expenses in the first quarter of 2026 were repairs and maintenance, and workforce costs. Per-unit operating expenses decreased compared with the same period in 2025, due to lower vessel and workforce costs.

DOWNSTREAM

Canadian Refining

Financial Results

									Three Months Ended March 31,
($ millions)															2026						2025
Revenues															1,407						1,282
Purchased Product															1,060						1,076
Gross Margin (1)															347						206
Expenses
Operating															146						138
Operating Margin															201						68
Depreciation, Depletion and Amortization															45						47
Segment Income (Loss)															156						21

(1)Non-GAAP financial measure. See the Specified Financial Measures Advisory of this MD&A.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  20

Financial Results — Continued

									Three Months Ended March 31,
($ millions, except where indicated)															2026						2025
Gross Margin															347						206
Add (Deduct):
Inventory Holding (Gain) Loss (1)															(47)						3
Adjusted Gross Margin (2)															300						209
Adjusted Refining Margin (3) ($/bbl)															24.27						17.33

(1)Inventory holding (gain) loss reflects the difference between the cost of volumes produced at current-period costs and the cost of volumes produced under the first-in, first-out (“FIFO”) or weighted average cost basis, as required by IFRS Accounting Standards.

(2)Non-GAAP financial measure. See the Specified Financial Measures Advisory of this MD&A.

(3)Contains a non-GAAP financial measure. See the Specified Financial Measures Advisory of this MD&A. Revenues from the Upgrader, the Lloydminster Refinery and the commercial fuels business for the three months ended March 31, 2026, were $1.3 billion (2025 – $1.2 billion).

Revenues, Adjusted Gross Margin and Adjusted Refining Margin

Revenues increased in the first quarter of 2026 compared with the first quarter of 2025, due to higher refined product pricing, mainly driven by an increase in diesel pricing, and higher sales volumes. Sales from the Lloydminster Refinery are seasonal and increase during paving season, which typically runs from May through October each year.

Adjusted Gross Margin and Adjusted Refining Margin increased in the first quarter of 2026, compared with the first quarter of 2025, primarily due to the widening of the WTI-WCS differential, higher refined product pricing, as discussed above, and higher sales volumes.

Operating Results

									Three Months Ended March 31,
(Mbbls/d, except where indicated)															2026						2025
Operable Capacity															108.0						108.0
Total Processed Inputs															124.5						119.5
Crude Oil Unit Throughput															115.3						111.9
Crude Unit Utilization (percent)															107						104
Total Production															132.5						126.5
Synthetic Crude Oil															52.0						52.4
Asphalt															17.8						16.6
Diesel															16.9						15.5
Other															40.3						37.7
Ethanol															5.5						4.3

During the first quarter of 2026, throughput and total production increased slightly compared with the same period in 2025, as our assets continue to run at, or above full capacity, reflecting high reliability.

In the first quarter of 2026, approximately 12 percent of our Oil Sands segment’s sales volumes were purchased by our Canadian Refining segment as a source of crude oil feedstock (2025 – 14 percent).

Operating Expenses (1)

									Three Months Ended March 31,
($ millions, except where indicated)															2026						2025
Operating Expenses – Upgrading and Refining															125						116
Per-Unit Operating Expenses (2) ($/bbl)															11.16						10.81

(1)Represents expenses associated with the Upgrader, the Lloydminster Refinery and the commercial fuels business.

(2)Specified financial measure. See the Specified Financial Measures Advisory of this MD&A.

Primary drivers of operating expenses were workforce, and repairs and maintenance.

In the first quarter of 2026, total operating expenses and per-unit operating expenses increased compared with the first quarter of 2025, mainly due to higher repairs and maintenance, including routine tank maintenance. The per-unit increase was partially offset by higher total processed inputs, compared with the first quarter of 2025.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  21

U.S. Refining

Financial Results

									Three Months Ended March 31,
($ millions)															2026						2025
Revenues															4,220						6,423
Purchased Product															3,318						6,006
Gross Margin (1)															902						417
Expenses
Operating															380						716
Realized (Gain) Loss on Risk Management															(11)						6
Operating Margin															533						(305)
Unrealized (Gain) Loss on Risk Management															30						(8)
Depreciation, Depletion and Amortization															112						158
Segment Income (Loss)															391						(455)

(1)Non-GAAP financial measure. See the Specified Financial Measures Advisory of this MD&A.

									Three Months Ended March 31,
($ millions, except where indicated)															2026						2025
Gross Margin															902						417
Add (Deduct):
Inventory Holding (Gain) Loss (1)															(457)						23
Adjusted Gross Margin (2)															445						440
Adjusted Refining Margin (2) ($/bbl)															13.74						8.41
Weighted Average Crack Spread, Net of RINs (US$/bbl)															8.79						9.46
Weighted Average Crack Spread, Net of RINs (C$/bbl)															12.06						13.58
Adjusted Market Capture (2) (percent)															114						62

(1)Inventory holding (gain) loss reflects the difference between the cost of volumes produced at current-period costs and the cost of volumes produced under the FIFO or weighted average cost basis, as required by IFRS Accounting Standards.

(2)Non-GAAP financial measure or contains a non-GAAP financial measure. See the Specified Financial Measures Advisory of this MD&A.

Revenues

Revenues decreased in the first quarter of 2026, compared with the first quarter of 2025, primarily due to lower sales volumes as a result of the WRB Divestiture, partially offset by higher refined product pricing, mainly driven by strong distillate pricing.

Adjusted Gross Margin, Adjusted Refining Margin and Adjusted Market Capture

Adjusted Gross Margin increased in the first quarter of 2026, compared with the first quarter of 2025, primarily due to:

•Achieving safe and reliable operations across our refineries, while maximizing our ability to process heavy crude volumes and capture value from wider WTI-WCS differentials.

•Business improvement initiatives which began in 2025 and continued to deliver value into 2026, improving our capability to optimize our product yields as market dynamics shifted in a seasonally weaker gasoline pricing environment. This allowed us to benefit from the strong distillate pricing, as discussed above.

•Seasonal commercial and blending opportunities.

•Optimization across the portfolio provided greater margin through various regional synergies.

This was partially offset by the impact of the WRB Divestiture and a lower weighted average market crack spread, net of RINs. In the first quarter of 2026, the Group 3 3-2-1 crack spread increased four percent while the Chicago 3-2-1 crack spread increased 28 percent, compared with the first quarter of 2025. The increase in crack spreads was more than offset by an 83 percent increase in the average cost of RINs, compared with the same period in 2025.

Adjusted Refining Margin and Adjusted Market Capture increased in the first quarter of 2026, compared with the same period in 2025, due to the increase in Adjusted Gross Margin discussed above, and lower total processed inputs.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  22

Operating Results

									Three Months Ended March 31,
(Mbbls/d, except where indicated)															2026						2025
Operable Capacity (1)															364.8						612.3
Total Processed Inputs															359.9						581.0
Crude Oil Unit Throughput															343.2						553.5
Heavy Crude Oil															152.2						226.3
Light/Medium Crude Oil															191.0						327.2
Crude Unit Utilization (percent)															94						90
Total Refined Product Production															376.8						595.9
Gasoline															185.1						284.7
Distillates (2)															121.6						208.8
Asphalt															16.9						25.7
Other															53.2						76.7

(1)Reported operable capacity reflects the impact of the WRB Divestiture completed on September 30, 2025.

(2)Includes diesel and jet fuel.

Throughput and refined product production decreased in the first quarter of 2026, compared with the same period in 2025, primarily due to the WRB Divestiture, partially offset by reliable operations across our assets.

Operating Expenses

									Three Months Ended March 31,
($ millions, except where indicated)															2026						2025
Operating Expenses															380						716
Per-Unit Operating Expenses (1) ($/bbl)															11.74						13.69

(1)Specified financial measure. See the Specified Financial Measures Advisory of this MD&A.

Primary drivers of operating expenses were workforce, and repairs and maintenance.

Overall, operating expenses decreased in the first quarter of 2026, compared with the first quarter of 2025, due to the WRB Divestiture.

Operating expenses and related per-unit metrics decreased across our operated assets in the first quarter of 2026, compared with the first quarter of 2025, primarily due to lower repairs and maintenance costs, partially offset by higher electricity costs.

CORPORATE AND ELIMINATIONS

Financial Results

									Three Months Ended March 31,
($ millions)															2026						2025
Realized (Gain) Loss on Risk Management															8						(5)
Unrealized (Gain) Loss on Risk Management															55						38
General and Administrative															411						197
Finance Costs, Net															194						136
Integration, Transaction and Other Costs															32						2
Foreign Exchange (Gain) Loss, Net															179						—
(Gain) Loss on Divestiture of Assets															(86)						—
Other (Income) Loss, Net															(38)						(6)

General and Administrative

Primary drivers of our general and administrative expense in the first quarter of 2026 were long-term incentive costs and workforce costs. General and administrative expense increased in the first quarter of 2026, compared with the same period in 2025, primarily due to higher long-term incentive costs, as our closing common share price increased to $36.92 on March 31, 2026, from $23.22 on December 31, 2025.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  23

Finance Costs, Net

Net finance costs were higher in the first quarter of 2026, compared with the same period in 2025, primarily due to increased interest expense from higher average debt. Refer to the Liquidity and Capital Resources section of this MD&A for further details on long-term debt.

The annualized weighted average interest rate on outstanding debt for the three months ended March 31, 2026, was 4.4 percent (2025 – 4.5 percent).

Foreign Exchange (Gain) Loss, Net

									Three Months Ended March 31,
($ millions)															2026						2025
Unrealized Foreign Exchange (Gain) Loss															180						19
Realized Foreign Exchange (Gain) Loss															(1)						(19)
															179						—

Unrealized foreign exchange losses were primarily due to the translation of U.S. dollar denominated debt. As at March 31, 2026, the Canadian dollar weakened slightly relative to the U.S. dollar as at December 31, 2025.

Income Taxes

									Three Months Ended March 31,
($ millions)															2026						2025
Current Tax
Canada															479						279
United States															6						—
Asia Pacific															54						45
Other International															8						13
Total Current Tax Expense (Recovery)															547						337
Deferred Tax Expense (Recovery)															(33)						(66)
															514						271

For the three months ended March 31, 2026, we recorded current tax expense related to operations in all jurisdictions in which we operate. The increase in current tax expense is due to higher earnings compared with the same period in 2025. The effective tax rate for the first three months was 24.7 percent, relatively consistent with 24.0 percent in the first quarter of 2025.

Tax interpretations, regulations and legislation in the various jurisdictions in which Cenovus and its subsidiaries operate are subject to change. We believe that our provision for income taxes is adequate. There are usually a number of tax matters under review, and with consideration of the current economic environment, income taxes are subject to measurement uncertainty. The timing of the recognition of income and deductions for the purpose of current tax expense is determined by relevant tax legislation.

LIQUIDITY AND CAPITAL RESOURCES

Our capital allocation framework enables us to preserve our balance sheet, provide flexibility in both high and low commodity price environments, and deliver value to shareholders.

We expect to fund our near-term cash requirements through cash from operating activities, the prudent use of our cash and cash equivalents, and other sources of liquidity. Our other sources of liquidity include draws on our committed credit facility, draws on our uncommitted demand facilities, and other corporate and financial opportunities, which provide timely access to funding to supplement cash flow. The cost and availability of borrowing, and access to sources of liquidity and capital are dependent on current credit ratings and market conditions.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  24

									Three Months Ended March 31,
($ millions)															2026						2025
Cash From (Used In)
Operating Activities															2,181						1,315
Investing Activities															(1,070)						(1,348)
Net Cash Provided (Used) Before Financing Activities															1,111						(33)
Financing Activities															(1,335)						(294)
Effect of Foreign Exchange on Cash and Cash Equivalents															59						2
Increase (Decrease) in Cash and Cash Equivalents															(165)						(325)
															March 31,						December 31,
As at ($ millions)															2026						2025
Cash and Cash Equivalents															2,575						2,740
Total Debt															10,633						11,032

Cash From (Used in) Operating Activities

In the first quarter of 2026, cash from operating activities increased compared with the same period in 2025, primarily due to increased Operating Margin, partially offset by changes in non-cash working capital and higher current tax expense. Non-cash working capital decreased cash from operating activities by $1.1 billion, primarily due to an increase in accounts receivable and inventories, partially offset by higher accounts payable and lower income tax receivable.

Cash From (Used in) Investing Activities

Cash used in investing activities decreased in the first quarter of 2026 compared with the same period in 2025, primarily due to higher proceeds from divestitures and lower acquisition capital. Cash used in investing activities primarily relates to capital investment.

Cash From (Used in) Financing Activities

In the first quarter of 2026, cash used in financing activities was $1.3 billion, compared with $294 million in the first quarter of 2025, primarily due to the repayment of $500 million under the term loan facility, higher share purchases under the Company’s NCIB, and the issuance of $150 million in short-term borrowings in the first quarter of 2025, compared with no issuances in the first quarter of 2026.

Working Capital

Working capital as at March 31, 2026, was $4.1 billion (December 31, 2025 – $3.6 billion). The increase was primarily driven by higher accounts receivable and inventories, partially offset by an increase in accounts payable.

We anticipate that we will continue to meet our payment obligations as they come due.

Short-Term Borrowings

As at March 31, 2026, the Company had uncommitted demand facilities of $1.5 billion (December 31, 2025 – $1.5 billion) in place, of which $1.4 billion may be drawn for general purposes, or the full amount may be available to issue letters of credit. There were no direct borrowings on our uncommitted demand facilities as at March 31, 2026, or December 31, 2025.

Long-Term Debt, Including Current Portion

						March 31,						December 31,
As at ($ millions)						2026						2025
Term Loan Facility						2,200						2,700
U.S. Dollar Denominated Senior Unsecured Notes						5,988						5,887
Canadian Dollar Senior Unsecured Notes						2,450						2,450
Total Debt Principal						10,638						11,037

As at March 31, 2026, the Company had in place a $2.2 billion term loan facility maturing on February 28, 2029. In the first quarter of 2026, we repaid $500 million under the term loan facility. Subsequent to March 31, 2026, we repaid an additional $700 million under the term loan facility.

As at March 31, 2026, we were in compliance with all of the terms of our debt agreements, which includes the terms of our committed credit facility and term loan facility. We are required to maintain a debt to capitalization ratio, as defined in the debt agreements, not to exceed 65 percent. We are below this limit.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  25

Available Sources of Liquidity

The following sources of liquidity are available as at March 31, 2026:

($ millions)

Maturity

Amount Available

Cash and Cash Equivalents

n/a

2,575

Committed Credit Facility (1)

Revolving Credit Facility – Tranche A

September 19, 2029

3,300

Revolving Credit Facility – Tranche B

September 19, 2028

2,200

Uncommitted Demand Facilities (2)

n/a

1,083

(1)No amounts were drawn on the committed credit facility as at March 31, 2026 (December 31, 2025– $nil).

(2)Represents amounts available for cash draws. Our uncommitted demand facilities include $1.5 billion, of which $1.4 billion may be drawn for general purposes, or the full amount can be available to issue letters of credit. As at March 31, 2026, there were outstanding letters of credit aggregating to $372 million (December 31, 2025 – $341 million) and no direct borrowings (December 31, 2025 – $nil).

As at March 31, 2026, the Company had in place a committed credit facility that consists of a $3.3 billion tranche maturing on September 19, 2029, and a $2.2 billion tranche maturing on September 19, 2028. As at March 31, 2026, no amount was drawn on the credit facility (December 31, 2025 – $nil).

Base Shelf Prospectus

On November 28, 2025, Cenovus filed a base shelf prospectus that allows the Company to offer, from time to time, debt securities, common shares, preferred shares, subscription receipts, warrants, share purchase contracts and units in Canada, the U.S. and elsewhere as permitted by law. The base shelf prospectus will expire in December 2028. Offerings under the base shelf prospectus are subject to market conditions on terms set forth in one or more prospectus supplements.

Financial Metrics

We monitor our capital structure and financing requirements using, among other things, Total Debt, the Net Debt to Adjusted EBITDA ratio, the Net Debt to Adjusted Funds Flow ratio and the Net Debt to Capitalization ratio. Refer to Note 12 of the interim Consolidated Financial Statements for further details, including definitions and calculations of these metrics.

As at			March 31, 2026						December 31, 2025
Net Debt to Adjusted EBITDA Ratio (times)			0.7						0.9
Net Debt to Adjusted Funds Flow Ratio (times)			0.8						0.9
Net Debt to Capitalization Ratio (percent)			20						21

Our Net Debt to Adjusted EBITDA ratio and our Net Debt to Adjusted Funds Flow ratio targets are approximately 1.0 times and Net Debt at or below $4.0 billion over the long-term at a WTI price of US$45.00 per barrel. These measures may fluctuate periodically outside this range due to factors such as persistently high or low commodity prices or the strengthening or weakening of the Canadian dollar relative to the U.S. dollar. Our objective is to maintain a high level of capital discipline and manage our capital structure to help ensure we have sufficient liquidity through all stages of the economic cycle. To ensure financial resilience, we may, among other actions, adjust capital and operating spending, steward working capital, draw down on our credit facilities or repay existing debt, adjust dividends paid to shareholders, purchase our common shares for cancellation, issue new debt, or issue new shares. Our Net Debt to Adjusted EBITDA ratio, Net Debt to Adjusted Funds Flow ratio and Net Debt to Capitalization ratio as at March 31, 2026, decreased compared with December 31, 2025, primarily as a result of higher Operating Margin and lower Net Debt. See the Operating and Financial Results section of this MD&A for more information on changes in Operating Margin and Net Debt.

Share Capital and Stock-Based Compensation Plans

Our common shares are listed on the Toronto Stock Exchange and New York Stock Exchange. On March 31, 2026, Cenovus exercised its right to redeem all 10.7 million of the Company’s series 1 preferred shares and all 1.3 million of the Company’s series 2 preferred shares. The preferred shares were redeemed at a price of $25.00 per share, for a total of $300 million. Following the redemptions on March 31, 2026, the Company no longer has preferred shares outstanding within its capital structure.

As at March 31, 2026, there were approximately 1,875.0 million common shares outstanding (December 31, 2025 – 1,883.4 million common shares).

For the three months ended March 31, 2026, the employee benefit plan trust (the “Trust”), through an independent trustee, purchased 1.8 million common shares for a total of $51 million and distributed 3.6 million common shares for a total of $80 million under the employee benefit plan. As at March 31, 2026, there were 3.5 million common shares held by the Trust (December 31, 2025 – 5.3 million common shares). Refer to Note 15 of the interim Consolidated Financial Statements for further details.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  26

The common share purchase warrants expired on January 1, 2026. Refer to Note 15 of the interim Consolidated Financial Statements for further details.

Refer to Note 17 of the interim Consolidated Financial Statements for further details on our stock option plans and our performance share unit, restricted share unit and deferred share unit plans. Our outstanding share data is as follows:

As at May 1, 2026			Units Outstanding (thousands)						Units Exercisable (thousands)
Common Shares			1,868,318						n/a
Stock Options			10,591						4,125
Other Stock-Based Compensation Plans			20,749						2,079

Returns to Shareholders

For a full discussion of our returns to shareholders target, refer to the Liquidity and Capital Resources section of our 2025 annual MD&A.

In the first quarter of 2026, we returned $1.0 billion to common and preferred shareholders, including $379 million through common and preferred share dividends, $356 million through the purchase of 11.5 million common shares under our NCIB program and $300 million for the redemption of the Company’s series 1 and 2 preferred shares.

The allocation of Excess Free Funds Flow to shareholder returns may be accelerated, deferred or reallocated between quarters at Management’s discretion.

Dividends

Common Share Dividends

In the first quarter of 2026, we declared and paid base dividends of $377 million or $0.200 per common share (2025 – $327 million or $0.180 per common share).

On May 5, 2026, the Board declared a second quarter base dividend of $0.220 per common share, an increase of 10 percent from the first quarter dividend declared in February 2026. The dividend is payable on June 30, 2026, to common shareholders of record as at June 15, 2026.

The declaration of common share dividends is at the sole discretion of the Board and is considered quarterly.

Cumulative Redeemable Preferred Share Dividends

In the first quarter of 2026, the Company paid preferred share dividends of $2 million (2025 – $6 million).

Share Repurchases

We have an NCIB program to purchase up to 120.3 million common shares from November 11, 2025, to November 10, 2026.

									Three Months Ended March 31,
															2026						2025
Common Shares Purchased and Cancelled Under NCIB (millions of common shares)															11.5						3.0
Weighted Average Price per Common Share ($)															30.35						20.68
Purchase of Common Shares Under NCIB ($ millions)															356						62

From April 1, 2026, to May 1, 2026, the Company purchased an additional 7.3 million common shares for $264 million. As at May 1, 2026, the Company can further purchase up to 94.1 million common shares under the NCIB.

Contractual Commitments and Obligations

We have obligations for goods and services entered into in the normal course of business. Obligations that have original maturities of less than one year are excluded from our total commitments disclosed below. For further information, see Note 22 of the interim Consolidated Financial Statements.

Our total commitments were $39.4 billion as at March 31, 2026 (December 31, 2025 – $39.7 billion), of which $36.7 billion are for various transportation and storage commitments. Transportation commitments include $7.8 billion that are subject to regulatory approval or were approved but are not yet in service. Terms are up to 15 years on commencement.

As at March 31, 2026, our total commitments included commitments with Husky Midstream Limited Partnership (“HMLP”) of $1.8 billion related to long-term transportation and storage commitments (December 31, 2025 – $1.7 billion).

As at March 31, 2026, outstanding letters of credit issued as security for performance under certain contracts totaled $372 million (December 31, 2025 – $341 million).

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  27

Legal Proceedings

We are involved in a limited number of legal claims associated with the normal course of operations. We believe that any liabilities that might arise from such matters, to the extent not provided for, are not likely to have a material effect on our interim Consolidated Financial Statements.

Transactions with Related Parties

Husky Midstream Limited Partnership

The Company holds a 35 percent interest in and is the operator of HMLP. The Company charges HMLP for construction and management services, and incurs costs for the use of HMLP’s pipeline systems, as well as transportation and storage services. Access fees and transportation and storage services are based on contractually agreed rates with HMLP.

The following table summarizes revenues and associated expenses related to HMLP:

															Three Months Ended March 31,
($ millions)															2026						2025
Revenues from Construction and Management Services															33						29
Transportation Expenses															65						68

RISK MANAGEMENT AND RISK FACTORS

For a full understanding of the risks that impact us, the following discussion should be read in conjunction with the Risk Management and Risk Factors section of our 2025 annual MD&A.

We are exposed to a number of risks through the pursuit of our strategic objectives. Some of these risks impact the energy industry as a whole and others are unique to our operations. The impact of any risk or a combination of risks may adversely affect, among other things, our business, reputation, financial condition, results of operations and cash flows, which may, without limitation, reduce or restrict our ability to pursue our strategic priorities, meet our targets or outlooks, goals, initiatives and ambitions, respond to changes in our operating environment, repurchase our shares, pay dividends to our shareholders and fulfill our obligations (including debt servicing requirements) and may materially affect the market price of our securities.

CRITICAL ACCOUNTING JUDGMENTS, ESTIMATION UNCERTAINTIES AND ACCOUNTING POLICIES

Management is required to make estimates and assumptions, as well as use judgment, in the application of accounting policies that could have a significant impact on our financial results. Actual results may differ from estimates and those differences may be material. The estimates and assumptions used are subject to updates based on experience and the application of new information. Our material accounting policies are reviewed annually by the Audit Committee of the Board. Further details on the basis of preparation and our material accounting policies can be found in the notes to the Consolidated Financial Statements for the year ended December 31, 2025.

Critical Judgments in Applying Accounting Policies and Key Sources of Estimation Uncertainty

Critical judgments are those judgments made by Management in the process of applying accounting policies that have the most significant effect on the amounts recorded in our annual and interim Consolidated Financial Statements. A full list of the critical judgments used in applying accounting policies and key sources of estimation uncertainty can be found in the notes to the Consolidated Financial Statements for the year ended December 31, 2025.

Update to Accounting Policies

Effective January 1, 2026, the Company adopted the amendments to IFRS 9, “Financial Instruments” (“IFRS 9”) and IFRS 7, “Financial Instruments: Disclosures” (“IFRS 7”). The amendments clarify the derecognition of financial liabilities and the classification of certain financial assets. The adoption of the amendments to IFRS 9 and IFRS 7 did not have a material impact on the Company’s interim Consolidated Financial Statements.

New Accounting Standards and Interpretations Not Yet Adopted

On April 9, 2024, the IASB issued IFRS 18, “Presentation and Disclosure in Financial Statements” (“IFRS 18”), which will replace International Accounting Standard 1, “Presentation of Financial Statements”. IFRS 18 will establish a revised structure for the Consolidated Statements of Comprehensive Income (Loss), including new defined subtotals, enhanced principles on aggregation and disaggregation, and additional disclosure requirements related to management-defined performance measures (“MPMs”).

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  28

The objective of the standard is to improve comparability across entities and reporting periods. IFRS 18 will not impact recognition or measurement of income and expenses.

Cenovus has executed a parallel system environment to reflect the new presentation requirements. The changes will primarily reflect a re-mapping of line items on the Consolidated Statements of Comprehensive Income (Loss) to newly defined categories. Items such as foreign exchange gains and losses will require segregation. The primary impact on the Consolidated Statements of Cash Flows will be the movement of certain finance costs from operating activities to financing activities. The Company has also identified metrics anticipated to be defined as MPMs.

The Company will continue to evaluate the impacts until adoption on January 1, 2027. The standard will be applied retrospectively, with certain transition provisions.

CONTROL ENVIRONMENT

Management, including our President & Chief Executive Officer and Executive Vice-President & Chief Financial Officer, assessed the design and effectiveness of Internal Control Over Financial Reporting (“ICFR”) and Disclosure Controls and Procedures (“DC&P”) as at March 31, 2026. In making its assessment, Management used the Committee of Sponsoring Organizations of the Treadway Commission Framework in Internal Control – Integrated Framework (2013) to evaluate the design and effectiveness of ICFR. Based on our evaluation, Management has concluded that both ICFR and DC&P were effective as at March 31, 2026.

On November 13, 2025, Cenovus completed the MEG Acquisition. As permitted by, and in accordance with, National Instrument 52‑109, “Certification and Disclosure in Issuers’ Annual and Interim Filings”, and guidance issued by the U.S. Securities and Exchange Commission, Management has limited the scope and design of ICFR and DC&P to exclude the controls, policies and procedures in respect of the business acquired from MEG. Such scope limitation is primarily due to the time required for Management to assess the ICFR and DC&P relating to the business acquired from MEG in a manner consistent with our other operations. Further integration will take place throughout the remainder of 2026 as processes and systems align.

Assets attributable to MEG as at March 31, 2026, represented approximately 15 percent of Cenovus’s total assets, and revenues attributable to MEG for the period of January 1, 2026, to March 31, 2026, represented approximately nine percent of Cenovus’s total revenues for the three months ended March 31, 2026.

Internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

ADVISORY

Oil and Gas Information

Barrels of Oil Equivalent – natural gas volumes are converted to BOE on the basis of six Mcf to one 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.

Light crude oil – Light crude oil corresponds to light crude oil and medium crude oil combined as defined by National Instrument 51-101 “Standards of Disclosure for Oil and Gas Activities” (“NI 51-101”). Cenovus does not produce medium crude oil.

Forward-looking Information

This document contains forward-looking statements and other information (collectively “forward-looking information”) about the Company’s current expectations, estimates and projections, made in light of the Company’s experience and perception of historical trends. Although the Company 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.

This forward-looking information is identified by words such as “allocate”, “anticipate”, “believe”, “commit”, “continue”, “could”, “deliver”, “expect”, “F”, “focus”, “grow”, “maintain”, “may”, “maximize”, “mitigate”, “on track”, “objective”, “ongoing”, “opportunities”, “optimize”, “plan”, “potential”, “priority”, “progress”, “steward”, “target”, and “will”, or similar expressions and includes suggestions of future outcomes, including, but not limited to, statements about: our strategic objectives; shareholder returns; commitment to safety and strengthening our safety record while maintaining reliable operations throughout our portfolio; capital allocation framework enabling us to preserve our balance sheet, provide flexibility in both high and low commodity price environments and deliver value to shareholders; our physically and economically integrated upstream and downstream operations helping us mitigate the impact of volatility in light-heavy crude oil price

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differentials and contribute to our net earnings by capturing value from crude oil, natural gas and NGLs production through the sale of finished products such as transportation fuels; market and commodity price volatility and stability; price alignment and volatility management strategies; dividends; liquidity; funding our near-term cash requirements through cash from operating activities, the prudent use of our cash and cash equivalents, and other sources of liquidity; our 2026 corporate guidance; factors influencing commodity price outlook; the impact of the global trade war and geopolitical tensions, including the closure of the Strait of Hormuz; capturing on opportunities from changing market conditions; allocating Excess Free Funds Flow to shareholder returns; progressing key growth projects, including continued development of Christina Lake North expansion project with production to come online in the second quarter of 2026, commissioning work at the Foster Creek Amine Claus project, and timing for first oil at West White Rose; heavy oil refining capacity allows us to capture value from both the WTI-WCS differential for Canadian crude oil and spreads on refined products monitoring market fundamentals and optimizing run rates at our refineries; safe and reliable operations; being best-in-class operators; maintaining a strong balance sheet; costs; margins; provision for income taxes; funding near-term cash requirements; credit ratings; meeting payment obligations; general outlook for crude oil and refined product prices; price volatility and geopolitical risks; impact of current and future economic arrangements between Canada and the U.S. including tariffs and other measures and countermeasures and responses thereto on market access and transportation; Net Debt to Adjusted EBITDA, Net Debt to Adjusted Funds Flow and Net Debt to Capitalization ratios; maintaining capital discipline to ensure sufficient liquidity; financial resilience; liabilities from legal proceedings; transportation and storage commitments; and the Company’s outlook for commodities and the Canadian dollar, the factors that affect such outlook, and the influences and effects on Cenovus.

Readers are cautioned not to place undue reliance on forward-looking information as the Company’s actual results may differ materially from those expressed or implied. Developing forward-looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to the Company and others that apply to the industry generally. The factors or assumptions on which the forward-looking information is based include, but are not limited to: forecast bitumen, crude oil and natural gas, NGLs, condensate and refined products prices, and light-heavy and light-medium crude oil price differentials; the Company’s ability to realize the anticipated benefits of acquisitions; the accuracy of any assessments undertaken in connection with acquisitions; forecast production and crude throughput volumes and timing thereof; forecast prices and costs, projected capital investment levels, the flexibility of capital spending plans and associated sources of funding; the absence of significant adverse changes to government policies, legislation and regulations (including related to climate change Indigenous relations, title or rights claims, royalty regimes, interest rates, inflation, foreign exchange rates, global economic activity, competitive conditions, trade sanctions, restrictive trade measures or countermeasures, and the supply and demand for bitumen, crude oil and natural gas, NGLs, condensate and refined products and the political, economic and social stability of jurisdictions in which the Company operates; the absence of significant disruption of operations, including as a result of harsh weather, natural disaster, accident, third-party actions, civil unrest or other similar events; the prevailing climatic conditions in the Company’s operating locations; achievement of further cost reductions and sustainability thereof; applicable royalty regimes, including expected royalty rates; future improvements in availability of product transportation capacity; increase to the Company’s share price and market capitalization over the long-term; opportunities to purchase shares for cancellation at prices acceptable to the Company; the Company’s ability to use financial risk management activities and physical positions to manage its exposure to fluctuations in commodity prices and, foreign exchange and interest rates, optimize supply costs or sales of production; the Company’s ability to use fixed-price commitments for the purchase or sale of commodities; the sufficiency of cash balances, internally generated cash flows, existing credit facilities, management of the Company’s asset portfolio and access to capital and insurance coverage to pursue and fund future investments and development plans and dividends, including any increase thereto; realization of expected capacity to store within the Company’s oil sands reservoirs barrels not yet produced, including that the Company will be able to time production and sales of its inventory at later dates when demand has increased, pipeline and/or storage capacity has improved and future crude oil differentials have narrowed; the WTI-WCS differential in Alberta remains largely tied to global supply factors and heavy crude oil processing capacity, as long as supply does not exceed Canadian crude oil export capacity; the Company’s ability to produce from oil sands facilities on an unconstrained basis; estimates of quantities of oil, bitumen, NGLs from properties and other sources not currently classified as proved; the accuracy of accounting estimates and judgments; the Company’s ability to obtain necessary regulatory and partner approvals; the successful, timely and cost effective implementation of capital projects, development projects or stages thereof; the Company’s ability to meet current and future obligations; estimated abandonment and reclamation costs, including associated levies and regulations applicable thereto; the Company’s ability to obtain and retain qualified staff and equipment in a timely and cost-efficient manner; the Company’s ability to complete acquisitions and divestitures, including with desired transaction metrics and within expected timelines; the accuracy of climate scenarios and assumptions, including third-party data on which the Company relies; ability to access and implement all technology and equipment necessary to achieve expected future results, including in respect of sustainability commitments and the Oil Sands Alliance Pathways project, and the commercial viability and scalability of related technology and products; expected benefits of investments in sustainability focus areas; collaboration with the government, Oil Sands Alliance and other industry organizations; market and business conditions; forecast inflation and other assumptions inherent in the Company’s 2026 guidance available on cenovus.com and as set out below; and other risks and uncertainties described from time to time in the filings the Company makes with securities regulatory authorities.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  30

2026 guidance dated December 10, 2025, and available on cenovus.com, assumes: Brent prices of US$64.00 per barrel, WTI prices of US$60.00 per barrel; WCS of US$47.50 per barrel; Differential WTI-WCS of US$12.50 per barrel; AECO natural gas prices of $2.50 per Mcf; Chicago 3-2-1 crack spread of US$20.00 per barrel; RINs of US$6.00 per barrel; and an exchange rate of $0.72 US$/C$.

The risk factors and uncertainties that could cause the Company’s actual results to differ materially from the forward-looking information, include, but are not limited to: the Company’s ability to realize the anticipated benefits of acquisitions in a timely manner or at all; the Company’s ability to successfully integrate acquired business with its own in a timely and cost effective manner or at all; unforeseen or underestimated liabilities associated with acquisitions; risks associated with acquisitions and divestitures; the Company’s ability to access or implement some or all of the technology necessary to efficiently and effectively operate its assets and achieve expected future results including in respect of sustainability commitments and the Oil Sands Alliance and the commercial viability and scalability of related technology and products; the effect of new significant shareholders; volatility of and other assumptions regarding commodity prices; the duration and impact of any market downturn; the Company’s ability to integrate upstream and downstream operations to help mitigate the impact of volatility in light-heavy crude oil differentials and contribute to its net earnings; foreign exchange risk, including related to agreements denominated in foreign currencies; the Company’s continued liquidity being sufficient to sustain operations through a prolonged market downturn; WTI-WCS differential at Hardisty does not remain largely tied to global supply factors and heavy crude processing capacity; the Company’s ability to realize the expected impacts of its capacity to store within its oil sands reservoirs barrels not yet produced, including possible inability to time production and sales at later dates when pipeline and/or storage capacity and crude oil differentials have improved; the effectiveness of the Company’s risk management program; the accuracy of the Company’s outlook for commodity prices and currency and interest rates; changes in laws or enforcement of existing laws, exchange rate fluctuations, trade disputes, trade agreements or treaties, new or increased tariffs, economic sanctions and other restrictive trade measures or countermeasures, and responses thereto; product supply and demand; the accuracy of the Company’s share price and market capitalization assumptions; market competition, including from alternative energy sources; risks inherent in the Company’s marketing operations, including credit risks, exposure to counterparties and partners, including the ability and willingness of such parties to satisfy contractual obligations in a timely manner; risks inherent in the operation of the Company’s crude-by-rail terminal, including health, safety and environmental risks; the Company’s ability to maintain desirable ratios of Net Debt to Adjusted EBITDA and Net Debt to Adjusted Funds Flow; the Company’s ability to access various sources of debt and equity capital, generally, and on acceptable terms; the Company’s ability to finance growth and sustaining capital expenditures; the ability to complete and optimize drilling, completion, tie in and infrastructure projects; the ability of the Company to ramp-up activities at its refineries on its anticipated timelines; changes in credit ratings applicable to the Company or any of its securities; changes to the Company’s dividend plans; the Company’s ability to utilize tax losses in the future; tax audits and reassessments; the accuracy of the Company’s reserves, future production and future net revenue estimates; the accuracy of factors influencing decisions on the priority and timing of development of undeveloped reserves; potential disruptions and risks associated with the adoption, development and integration of AI; the accuracy of the Company’s accounting estimates and judgements; the Company’s ability to replace and expand crude oil and natural gas reserves; the costs to acquire exploration rights, undertake geological studies, appraisal drilling and project developments; potential requirements under applicable accounting standards for impairment or reversal of estimated recoverable amounts of some or all of the Company’s assets or goodwill from time to time; the Company’s ability to maintain its relationships with its partners and to successfully manage and operate its integrated operations and business; reliability of the Company’s assets including in order to meet production targets; potential disruption or unexpected technical difficulties in developing new products and refining processes; the occurrence of unexpected events resulting in operational interruptions, including at facilities operated by our partners or third parties, such as blowouts, fires, explosions, railcar incidents or derailments, aviation incidents, iceberg collisions, gaseous leaks, migration of harmful substances, loss of containment, releases or spills, including releases or spills from offshore facilities and shipping vessels at terminals or hubs and as a result of pipeline or other leaks, corrosion, epidemics and pandemics; and catastrophic events, including, but not limited to, war, adverse sea conditions, extreme weather events, natural disasters, acts of activism, vandalism and terrorism, and other accidents or hazards that may occur at or during transport to or from commercial or industrial sites and other accidents or similar events; refining and marketing margins; cost escalations, including inflationary pressures on operating costs, such as labour, materials, natural gas and other energy sources used in oil sands processes and downstream operations and increased insurance deductibles or premiums; the cost and availability of equipment necessary to the Company’s operations; potential failure of products to achieve or maintain acceptance in the market; risks associated with the energy industry’s and the Company’s reputation, social licence to operate and litigation related thereto; legal challenges or opposition to infrastructure projects associated with Indigenous title or other rights claims; unexpected cost increases or technical difficulties in operating, constructing or modifying refining or refining facilities; unexpected difficulties in producing, transporting or refining bitumen and/or crude oil into petroleum and chemical products; risks associated with technology and equipment and its application to the Company’s business, including potential cyberattacks; geo-political and other risks associated with the Company’s international operations; risks associated with climate change and the Company’s assumptions relating thereto; the timing and the costs of well and pipeline construction; the Company’s ability to access markets and to secure adequate and cost effective product transportation including sufficient pipeline, crude-by-rail, marine or alternate transportation, including to address any gaps

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  31

caused by constraints in the pipeline system or storage capacity; availability of, and the Company’s ability to attract and retain, critical talent and integrate new personnel acquired in transactions; possible failure to obtain and retain qualified leadership and personnel, and equipment in a timely and cost efficient manner; changes in labour demographics and relationships, including with any unionized workforces; unexpected abandonment and reclamation costs; changes in the regulatory frameworks, permits and approvals in any of the locations in which the Company operates or to any of the infrastructure upon which it relies; climate change-related regulatory, climactic transition risks; failure to achieve our sustainability goals, or a perception among key stakeholders that our actions or goals are insufficient or unattainable; government actions or regulatory initiatives to curtail energy operations or pursue broader climate change agendas; changes to regulatory approval processes and land use designations, royalty, tax, environmental, GHG, carbon, climate change and other laws or regulations, or changes to the interpretation of such laws and regulations, as adopted or proposed, the impact thereof and the costs associated with compliance; the expected impact and timing of various accounting pronouncements, rule changes and standards on the Company’s business, its financial results and Consolidated Financial Statements; changes in general economic, market and business conditions; OPEC+ policy; actions of OPEC and non-OPEC members, including compliance or non-compliance with agreed upon quotas and decisions to impose production quotas; the political, social and economic conditions in the jurisdictions in which the Company operates or supplies; the status of the Company’s relationships with the communities in which it operates, including with Indigenous communities; the occurrence of unexpected events such as protests, pandemics, war, terrorist threats and the instability resulting therefrom; and risks associated with existing and potential future lawsuits, shareholder proposals and regulatory actions against the Company. In addition, there are risks that the effect of actions taken by us in attempting to achieve goals for sustainability focus areas may have a negative impact on our existing business, growth plans and future results from operations, or that the benefits may be less than expected.

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 our actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking information. For a full discussion of the Company’s material risk factors, see Risk Management and Risk Factors in the Company’s most recently filed annual MD&A, and the risk factors described in other documents the Company files from time to time with securities regulatory authorities in Canada, available on SEDAR+ at sedarplus.ca, and with the U.S. Securities and Exchange Commission on EDGAR at sec.gov, and on the Company’s website at cenovus.com.

Information on or connected to the Company’s website at cenovus.com does not form part of this MD&A unless expressly incorporated by reference herein.

ABBREVIATIONS AND DEFINITIONS

Abbreviations

The following abbreviations and definitions are used in this document:

Crude Oil and NGLs

Natural Gas

Other

bbl

barrel

Mcf

thousand cubic feet

BOE

barrel of oil equivalent

Mbbls/d

thousand barrels per day

MMcf

million cubic feet

MBOE/d

thousand barrels of oil    equivalent per day

MMbbls

million barrels

MMcf/d

million cubic feet per day

MMBOE

million barrels of oil equivalent

WCS

Western Canadian Select

Bcf

billion cubic feet

DD&A

depreciation, depletion and    amortization

WTI

West Texas Intermediate

GHG

greenhouse gas

FPSO

floating production, storage and    offloading vessel

NCIB

normal course issuer bid

AECO

Alberta Energy Company

NYMEX

New York Mercantile Exchange

OPEC

Organization of Petroleum    Exporting Countries

OPEC+

OPEC and a group of 11    non-OPEC members

PADD II

Petroleum Administration for    Defense District II

USGC

U.S. Gulf Coast

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  32

SPECIFIED FINANCIAL MEASURES

Certain financial measures in this document do not have a standardized meaning as prescribed by IFRS Accounting Standards including Operating Margin, Operating Margin by asset, Adjusted Funds Flow, Adjusted Funds Flow Per Share – Basic, Adjusted Funds Flow Per Share – Diluted, Free Funds Flow, Excess Free Funds Flow, Realized Sales Price, Conventional, Offshore and Asia Pacific Per-Unit Operating Expenses, Netbacks (including the total Netback per BOE), Gross Margin, Adjusted Gross Margin, Adjusted Refining Margin and Adjusted Market Capture.

These measures may not be comparable to similar measures presented by other issuers. These measures are described and presented in order to provide shareholders and potential investors with additional measures for analyzing our ability to generate funds to finance our operations and information regarding our liquidity. This additional information should not be considered in isolation, or as a substitute for, measures prepared in accordance with IFRS Accounting Standards. The definition and reconciliation, if applicable, of each specified financial measure is presented in this Advisory and may also be presented in the Operating and Financial Results section of this MD&A. Refer to the Specified Financial Measures Advisory of the relevant period’s MD&A for reconciliations of Operating Margin, Adjusted Funds Flow, Free Funds Flow and Excess Free Funds Flow for prior period information from 2025 and 2024 that is not found below.

Non-GAAP Financial Measures and Non-GAAP Ratios

Operating Margin

Operating Margin and Operating Margin by asset are non-GAAP financial measures, and Operating Margin for upstream or downstream operations are specified financial measures. These are used to provide a consistent measure of the cash-generating performance of our operations and assets for comparability of our underlying financial performance between periods. Operating Margin is defined as revenues less purchased product, transportation and blending expenses, operating expenses, plus realized gains less realized losses on risk management activities. Items within the Corporate and Eliminations segment are excluded from the calculation of Operating Margin. The following tables provide a reconciliation to our interim Consolidated Financial Statements.

Operating Margin

			Three Months Ended March 31,
			2026						2025						2026						2025						2026						2025
($ millions)			Upstream (1)												Downstream (1)												Total
Gross Sales
External Sales			8,009						6,798						5,330						7,407						13,339						14,205
Intersegment Sales			2,361						2,454						297						298						2,658						2,752
			10,370						9,252						5,627						7,705						15,997						16,957
Royalties			(983)						(906)						—						—						(983)						(906)
Revenues			9,387						8,346						5,627						7,705						15,014						16,051
Expenses
Purchased Product			1,244						1,167						4,378						7,082						5,622						8,249
Transportation and Blending			3,375						3,247						—						—						3,375						3,247
Operating			1,047						893						526						854						1,573						1,747
Realized (Gain) Loss on Risk Management			13						(9)						(11)						6						2						(3)
Operating Margin			3,708						3,048						734						(237)						4,442						2,811

(1)Found in Note 1 of the interim Consolidated Financial Statements.

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Operating Margin by Asset

									Three Months Ended March 31, 2026
($ millions)																					Atlantic						Asia Pacific						Offshore (1)
Gross Sales																					252						297						549
Royalties																					(2)						(23)						(25)
Revenues																					250						274						524
Expenses
Purchased Product																					4						—						4
Transportation and Blending																					7						—						7
Operating																					82						29						111
Operating Margin																					157						245						402

									Three Months Ended March 31, 2025
($ millions)																					Atlantic						Asia Pacific						Offshore (1)
Gross Sales																					146						305						451
Royalties																					(2)						(23)						(25)
Revenues																					144						282						426
Expenses
Purchased Product																					—						—						—
Transportation and Blending																					6						—						6
Operating																					64						25						89
Operating Margin																					74						257						331

(1)Found in Note 1 of the interim Consolidated Financial Statements.

Adjusted Funds Flow, Free Funds Flow and Excess Free Funds Flow

Adjusted Funds Flow is a non-GAAP financial measure commonly used in the oil and gas industry to assist in measuring a company’s ability to finance its capital programs and meet its financial obligations, in total and on a per-share basis. Adjusted Funds Flow is defined as cash from (used in) operating activities, excluding settlement of decommissioning liabilities and net change in operating non-cash working capital. Operating non-cash working capital is composed of accounts receivable and accrued revenues, income tax receivable, inventories (excluding non-cash inventory write-downs and reversals), accounts payable and accrued liabilities, and income tax payable. Adjusted Funds Flow Per Share – Basic is defined as Adjusted Funds Flow divided by the basic weighted average number of shares. Adjusted Funds Flow Per Share – Diluted is defined as Adjusted Funds Flow divided by the diluted weighted average number of shares.

Free Funds Flow is a non-GAAP financial measure used to assist in measuring the available funds the Company has after financing its capital programs. Free Funds Flow is defined as cash from (used in) operating activities, excluding settlement of decommissioning liabilities and net change in operating non-cash working capital, minus capital investment.

Excess Free Funds Flow is a non-GAAP financial measure used by the Company to deliver shareholder returns and allocate capital according to our shareholder returns and capital allocation framework. Excess Free Funds Flow is defined as Free Funds Flow minus base dividends paid on common shares, dividends paid on preferred shares, net purchases of common shares under the employee benefit plan, other uses of cash (including settlement of decommissioning liabilities and principal repayment of leases), and expenditures for acquisitions net of cash acquired, plus proceeds from, or payments related to, divestitures.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  34

									Three Months Ended March 31,
($ millions)															2026						2025
Cash From (Used in) Operating Activities															2,181						1,315
(Add) Deduct:
Settlement of Decommissioning Liabilities															(53)						(36)
Net Change in Non-Cash Working Capital															(1,143)						(861)
Adjusted Funds Flow															3,377						2,212
Capital Investment															1,170						1,229
Free Funds Flow															2,207						983
Add (Deduct):
Base Dividends Paid on Common Shares															(377)						(327)
Dividends Paid on Preferred Shares															(2)						(6)
Purchase of Common Shares Under Employee Benefit Plan															(51)						(58)
Settlement of Decommissioning Liabilities															(53)						(36)
Principal Repayment of Leases															(90)						(83)
Acquisitions, Net of Cash Acquired															(10)						(100)
Proceeds From Divestitures															99						—
Excess Free Funds Flow															1,723						373

Gross Margin, Adjusted Gross Margin, Adjusted Refining Margin and Adjusted Market Capture

Gross Margin and Adjusted Gross Margin are non-GAAP financial measures that are used to evaluate the performance of our downstream operations. We define Gross Margin as revenues less purchased product and Adjusted Gross Margin as revenues less purchased product, excluding the impact of inventory holding gains or losses.

Inventory holding gains or losses reflects the difference between the cost of volumes produced at current-period costs, which is an indication of current market conditions, and the cost of volumes produced under the FIFO or weighted average cost basis as required by IFRS Accounting Standards, which generally reflects the market conditions at the time feedstock was purchased. The purchase and sale of inventories creates a timing difference that could be anywhere from several weeks to several months. This measure is an estimate of the impact of current-period costs to FIFO or weighted average cost, and assumes that all opening volumes are sold in the current period. Cenovus uses inventory holding gains or losses to analyze the performance of our assets and increase comparability with refining peers.

Adjusted Refining Margin and Adjusted Market Capture contain non-GAAP financial measures. Adjusted Refining Margin is used to evaluate our downstream operations after adjusting for inventory holding gains or losses. Adjusted Market Capture is used in our U.S. Refining segment to provide an indication of margin captured relative to what was available in the market based on widely-used benchmarks. These measures are useful to consistently measure the performance of our downstream operations.

We define Adjusted Refining Margin as Adjusted Gross Margin divided by total processed inputs and Adjusted Market Capture as Adjusted Refining Margin 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.

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Canadian Refining

			Three Months Ended March 31, 2026
($ millions, except where indicated)			Lloydminster Upgrader and Lloydminster Refinery Total						Other (1)						Total Canadian Refining (2)
Revenues			1,327						80						1,407
Purchased Product			1,008						52						1,060
Gross Margin			319						28						347
Add (Deduct):
Inventory Holding (Gain) Loss			(47)						—						(47)
Adjusted Gross Margin			272						28						300
Total Processed Inputs (Mbbls/d)			124.5
Adjusted Refining Margin ($/bbl)			24.27

(1)Includes ethanol operations and crude-by-rail operations.

(2)Revenues and purchased product are found in Note 1 of the interim Consolidated Financial Statements.

			Three Months Ended March 31, 2025
($ millions, except where indicated)			Lloydminster Upgrader and Lloydminster Refinery Total						Other (1)						Total Canadian Refining (2)
Revenues			1,221						61						1,282
Purchased Product			1,037						39						1,076
Gross Margin			184						22						206
Add (Deduct):
Inventory Holding (Gain) Loss			3						—						3
Adjusted Gross Margin			187						22						209
Total Processed Inputs (Mbbls/d)			119.5
Adjusted Refining Margin ($/bbl)			17.33

(1)Includes ethanol operations and crude-by-rail operations.

(2)Revenues and purchased product are found in Note 1 of the interim Consolidated Financial Statements.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  36

U.S. Refining

									Three Months Ended March 31,
($ millions, except where indicated)															2026						2025
Revenues (1)															4,220						6,423
Purchased Product (1)															3,318						6,006
Gross Margin															902						417
Add (Deduct):
Inventory Holding (Gain) Loss															(457)						23
Adjusted Gross Margin															445						440
Total Processed Inputs (Mbbls/d)															359.9						581.0
Adjusted Refining Margin ($/bbl)															13.74						8.41
Operable Capacity (Mbbls/d)															364.8						612.3
Operable Capacity by Regional Benchmark (percent)
Chicago 3-2-1 Crack Spread Weighting															88						81
Group 3 3-2-1 Crack Spread Weighting															12						19
Benchmark Prices and Exchange Rate
Chicago 3-2-1 Crack Spread (US$/bbl)															17.55						13.68
Group 3 3-2-1 Crack Spread (US$/bbl)															17.16						16.48
RINs (US$/bbl)															8.71						4.76
US$ per C$1 – Average															0.729						0.697
Weighted Average Crack Spread, Net of RINs ($/bbl)															12.06						13.58
Adjusted Market Capture (percent)															114						62

(1)Found in Note 1 of the interim Consolidated Financial Statements.

Netback Reconciliations and Realized Sales Price

Netback is a non-GAAP financial measure commonly used in the oil and gas industry to assist in measuring operating performance. Our Netback calculation is substantially aligned with the definition found in the Canadian Oil and Gas Evaluation Handbook. Netback is defined as gross sales less royalties, transportation and blending, and operating expenses. Netbacks do not reflect non-cash write-downs or reversals of product inventory until it is realized when the product is sold and exclude risk management activities. Condensate or butane (diluent) is blended with crude oil to transport it to market. Netback per barrel of oil equivalent contains a non-GAAP measure. Netbacks per barrel of oil equivalent reflect our margin on a per-barrel of oil equivalent basis. Per-unit measures are divided by sales volumes.

Netback calculations reflect our proportionate share of revenues and expenses for joint ventures that are accounted for using the equity method of accounting. Offshore and Asia Pacific Netbacks include HCML, and the Conventional Netback includes Duvernay, resulting in non-GAAP measures when line items are presented independently and containing non-GAAP measures when presented on a per-unit basis.

Realized Sales Price contains a non-GAAP measure. It includes our gross sales, purchased diluent costs and profit from optimization activities, such as cogeneration, third-party processing and trading.

The following tables provide a reconciliation of Netback to Operating Margin found in our interim Consolidated Financial Statements.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  37

Oil Sands

			Basis of Netback Calculation
Three Months Ended March 31, 2026 ($ millions)			Foster Creek			Christina Lake			Sunrise			Lloydminster (1)																		Total Oil Sands (2)
Gross Sales			1,756			2,440			434			864																		5,494
Royalties			(333)			(519)			(11)			(71)																		(934)
Revenues			1,423			1,921			423			793																		4,560
Expenses
Purchased Product			—			—			—			—																		—
Transportation and Blending			251			253			72			34																		610
Operating			210			290			94			226																		820
Netback			962			1,378			257			533																		3,130
Realized (Gain) Loss on Risk Management																														23
Operating Margin																														3,107

			Basis of Netback Calculation			Adjustments
Three Months Ended March 31, 2026 ($ millions)			Total Oil Sands (2)						Condensate			Third-party Sourced			Other (3)						Total Oil Sands (4)
Gross Sales			5,494						2,629			547			114						8,784
Royalties			(934)						—			—			(6)						(940)
Revenues			4,560						2,629			547			108						7,844
Expenses
Purchased Product			—						—			547			70						617
Transportation and Blending			610						2,629			—			44						3,283
Operating			820						—			—			6						826
Netback			3,130						—			—			(12)						3,118
Realized (Gain) Loss on Risk Management			23						—			—			—						23
Operating Margin			3,107						—			—			(12)						3,095

(1)Includes Lloydminster thermal and Lloydminster conventional heavy oil assets.

(2)Includes bitumen and heavy oil.

(3)Other includes reclassification of costs primarily related to third-party cogeneration and transportation and blending.

(4)These amounts, excluding Netback, are found in Note 1 of the interim Consolidated Financial Statements.

			Basis of Netback Calculation
Three Months Ended March 31, 2025 ($ millions)			Foster Creek			Christina Lake			Sunrise			Lloydminster (1)																		Total Oil Sands (2)
Gross Sales			1,717			1,619			389			910																		4,635
Royalties			(342)			(398)			(20)			(99)																		(859)
Revenues			1,375			1,221			369			811																		3,776
Expenses
Purchased Product			—			—			—			—																		—
Transportation and Blending			312			132			80			39																		563
Operating			193			189			78			213																		673
Netback			870			900			211			559																		2,540
Realized (Gain) Loss on Risk Management																														(8)
Operating Margin																														2,548

(1)Includes Lloydminster thermal and Lloydminster conventional heavy oil assets.

(2)Includes bitumen and heavy oil.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  38

			Basis of Netback Calculation			Adjustments
Three Months Ended March 31, 2025 ($ millions)			Total Oil Sands (1)						Condensate			Third-party Sourced			Other (2)						Total Oil Sands (3)
Gross Sales			4,635						2,575			553			94						7,857
Royalties			(859)						—			—			(2)						(861)
Revenues			3,776						2,575			553			92						6,996
Expenses
Purchased Product			—						—			553			79						632
Transportation and Blending			563						2,575			—			13						3,151
Operating			673						—			—			4						677
Netback			2,540						—			—			(4)						2,536
Realized (Gain) Loss on Risk Management			(8)						—			—			—						(8)
Operating Margin			2,548						—			—			(4)						2,544

(1)Includes bitumen and heavy oil.

(2)Other includes construction, transportation and blending.

(3)These amounts, excluding Netback, are found in Note 1 of the interim Consolidated Financial Statements.

Conventional

			Basis of Netback Calculation						Adjustments
Three Months Ended March 31, 2026 ($ millions)			Conventional (1)						Third-party Sourced			Other (1) (2)						Conventional (3)
Gross Sales			374						623			40						1,037
Royalties			(19)						—			1						(18)
Revenues			355						623			41						1,019
Expenses
Purchased Product			—						623			—						623
Transportation and Blending			46						—			39						85
Operating			104						—			6						110
Netback			205						—			(4)						201
Realized (Gain) Loss on Risk Management			(10)						—			—						(10)
Operating Margin			215						—			(4)						211

(1)Includes revenues and expenses related to the Duvernay joint venture.

(2)Other includes reclassification of costs primarily related to third-party cogeneration, processing and transportation.

(3)These amounts, excluding Netback, are found in Note 1 of the interim Consolidated Financial Statements.

			Basis of Netback Calculation						Adjustments
Three Months Ended March 31, 2025 ($ millions)			Conventional (1)						Third-party Sourced			Other (1) (2)						Conventional (3)
Gross Sales			379						534			31						944
Royalties			(20)						—			—						(20)
Revenues			359						534			31						924
Expenses
Purchased Product			—						534			1						535
Transportation and Blending			61						—			29						90
Operating			122						—			5						127
Netback			176						—			(4)						172
Realized (Gain) Loss on Risk Management			(1)						—			—						(1)
Operating Margin			177						—			(4)						173

(1)Includes revenues and expenses related to the Duvernay joint venture.

(2)Other includes reclassification of costs primarily related to third-party cogeneration, processing and transportation.

(3)These amounts, excluding Netback, are found in Note 1 of the interim Consolidated Financial Statements.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  39

Offshore

			Basis of Netback Calculation																					Adjustments
Three Months Ended March 31, 2026 ($ millions)			Atlantic			China			Indonesia (1)			Total Asia Pacific						Total Offshore						Equity Adjustment (1)			Other (2)						Total Offshore (3)
Gross Sales			243			297			82			379						622						(82)			9						549
Royalties			(2)			(23)			(20)			(43)						(45)						20			—						(25)
Revenues			241			274			62			336						577						(62)			9						524
Expenses
Purchased Product			—			—			—			—						—						—			4						4
Transportation and Blending			7			—			—			—						7						—			—						7
Operating			82			28			13			41						123						(11)			(1)						111
Netback			152			246			49			295						447						(51)			6						402
Realized (Gain) Loss on Risk Management																		—						—			—						—
Operating Margin																		447						(51)			6						402

(1)Revenues and expenses related to the HCML joint venture.

(2)Includes other activities not attributable to the production of crude oil and natural gas.

(3)These amounts, excluding Netback, are found in Note 1 of the interim Consolidated Financial Statement

			Basis of Netback Calculation																					Adjustments
Three Months Ended March 31, 2025 ($ millions)			Atlantic			China			Indonesia (1)			Total Asia Pacific						Total Offshore						Equity Adjustment (1)			Other (2)						Total Offshore (3)
Gross Sales			146			305			89			394						540						(89)			—						451
Royalties			(2)			(23)			(27)			(50)						(52)						27			—						(25)
Revenues			144			282			62			344						488						(62)			—						426
Expenses
Purchased Product			—			—			—			—						—						—			—						—
Transportation and Blending			6			—			—			—						6						—			—						6
Operating			64			23			15			38						102						(13)			—						89
Netback			74			259			47			306						380						(49)			—						331
Realized (Gain) Loss on Risk Management																		—						—			—						—
Operating Margin																		380						(49)			—						331

(1)Revenues and expenses related to the HCML joint venture.

(2)Includes other activities not attributable to the production of crude oil and natural gas.

(3)These amounts, excluding Netback, are found in Note 1 of the interim Consolidated Financial Statements.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  40

Upstream Sales Volumes (1)

The following table provides the sales volumes used to calculate Netback:

									Three Months Ended March 31,
(MBOE/d)															2026						2025
Oil Sands (2)
Foster Creek															226.8						218.6
Christina Lake															348.7						239.6
Sunrise															58.9						49.5
Lloydminster															130.5						128.1
Total Oil Sands															764.9						635.8
Conventional (3)															120.5						123.9
Offshore
Atlantic															23.1						15.8
Asia Pacific
China															41.5						42.0
Indonesia (4)															15.6						15.2
Total Asia Pacific															57.1						57.2
Total Offshore															80.2						73.0

(1)Sales volumes exclude the impact of purchased condensate.

(2)Includes bitumen and heavy crude oil sales.

(3)Reported sales volumes reflect Cenovus’s 30 percent equity interest in the Duvernay joint venture.

(4)Reported sales volumes reflect Cenovus’s 40 percent equity interest in the HCML joint venture.

Other Specified Financial Measures

Per-Unit Operating Expenses

Per-unit operating expenses are specified financial measures used to evaluate the performance of our upstream and downstream operations. Our upstream per-unit operating expenses are defined as total operating expenses divided by sales volumes and are part of our Netback calculation, which can be found above.

We define Canadian Refining per-unit operating expenses as total operating expenses from the Upgrader, the Lloydminster Refinery and the commercial fuels business, divided by total processed inputs. We define U.S. Refining per-unit operating expenses as operating expenses divided by total processed inputs.

Per-Unit Transportation Expenses

Per-unit transportation expenses are specified financial measures used to measure transportation expenses on a per-unit basis in our upstream segments. We define per-unit transportation expenses as the total transportation expenses divided by sales volumes. Our upstream per-unit transportation expenses are part of the transportation and blending line in our Netback calculation, which can be found above.

Cenovus Energy Inc. – Q1 2026 Management's Discussion and Analysis  41

Exhibit 99.3

Cenovus Energy Inc.

Interim Consolidated Financial Statements (unaudited)

For the Period Ended March 31, 2026

(Canadian Dollars)

CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

For the period ended March 31, 2026

TABLE OF CONTENTS

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)						3
CONSOLIDATED BALANCE SHEETS (UNAUDITED)						4
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)						5
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)						6
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)						7
1. DESCRIPTION OF BUSINESS AND SEGMENTED DISCLOSURES						7
2. BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE						11
3. UPDATES TO ACCOUNTING POLICIES						11
4. MEG ENERGY CORP. ACQUISITION						12
5. FINANCE COSTS, NET						12
6. FOREIGN EXCHANGE (GAIN) LOSS, NET						12
7. INCOME TAXES						13
8. PER SHARE AMOUNTS						13
9. EXPLORATION AND EVALUATION ASSETS, NET						13
10. PROPERTY, PLANT AND EQUIPMENT, NET						14
11. LEASES						14
12. DEBT AND CAPITAL STRUCTURE						15
13. DECOMMISSIONING LIABILITIES						17
14. OTHER LIABILITIES						17
15. SHARE CAPITAL AND WARRANTS						18
16. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)						19
17. STOCK-BASED COMPENSATION PLANS						20
18. RELATED PARTY TRANSACTIONS						21
19. FINANCIAL INSTRUMENTS						21
20. RISK MANAGEMENT						22
21. SUPPLEMENTARY CASH FLOW INFORMATION						24
22. COMMITMENTS AND CONTINGENCIES						26

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited)

For the period ended March 31,

($ millions, except per share amounts)

															Three Months Ended
			Notes																		2026						2025
Revenues			1																		12,356						13,299
Expenses			1
Purchased Product, Transportation and Blending																					6,628						8,870
Operating																					1,475						1,629
(Gain) Loss on Risk Management			19																		9						15
Depreciation, Depletion, Amortization and Exploration Expense			9,10,11																		1,483						1,319
(Income) Loss From Equity-Accounted Affiliates																					(15)						7
General and Administrative																					411						197
Finance Costs, Net			5																		194						136
Integration, Transaction and Other Costs			4																		32						2
Foreign Exchange (Gain) Loss, Net			6																		179						—
(Gain) Loss on Divestiture of Assets																					(86)						—
Other (Income) Loss, Net																					(38)						(6)
Earnings (Loss) Before Income Tax																					2,084						1,130
Income Tax Expense (Recovery)			7																		514						271
Net Earnings (Loss)																					1,570						859
Other Comprehensive Income (Loss), Net of Tax			16
Items That Will not be Reclassified to Profit or Loss:
Actuarial Gain (Loss) Relating to Pension and Other Post-Employment Benefits																					4						2
Change in the Fair Value of Equity Instruments at FVOCI (1)			19																		1						(2)
Items That may be Reclassified to Profit or Loss:
Foreign Currency Translation Adjustment																					244						(10)
Total Other Comprehensive Income (Loss), Net of Tax																					249						(10)
Comprehensive Income (Loss)																					1,819						849
Net Earnings (Loss) Per Common Share ($)			8
Basic																					0.84						0.47
Diluted																					0.83						0.47

(1)Fair value through other comprehensive income (loss) (“FVOCI”).

See accompanying Notes to the interim Consolidated Financial Statements (unaudited).

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 3

CONSOLIDATED BALANCE SHEETS (unaudited)

As at

($ millions)

									March 31,						December 31,
			Notes						2026						2025
Assets
Current Assets
Cash and Cash Equivalents									2,575						2,740
Accounts Receivable and Accrued Revenues									4,734						3,435
Income Tax Receivable									41						366
Inventories									4,127						3,349
Total Current Assets									11,477						9,890
Restricted Cash									266						256
Exploration and Evaluation Assets, Net			1,9						596						575
Property, Plant and Equipment, Net			1,10						45,097						45,260
Right-of-Use Assets, Net			1,11						2,105						2,153
Income Tax Receivable									25						25
Investments in Equity-Accounted Affiliates									291						295
Other Assets									538						464
Deferred Income Taxes									1,541						1,594
Goodwill			1						2,912						2,912
Total Assets									64,848						63,424
Liabilities and Equity
Current Liabilities
Accounts Payable and Accrued Liabilities									6,691						5,847
Income Tax Payable									265						98
Lease Liabilities			11						374						369
Total Current Liabilities									7,330						6,314
Long-Term Debt			12						10,633						11,032
Lease Liabilities			11						2,745						2,806
Decommissioning Liabilities			13						4,901						4,872
Other Liabilities			14						942						889
Deferred Income Taxes									5,764						5,873
Total Liabilities									32,315						31,786
Shareholders’ Equity									32,517						31,622
Non-Controlling Interest									16						16
Total Liabilities and Equity									64,848						63,424
Commitments and Contingencies			22

See accompanying Notes to the interim Consolidated Financial Statements (unaudited).

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 4

CONSOLIDATED STATEMENTS OF EQUITY (unaudited)

($ millions)

			Shareholders’ Equity
			Common Shares						Treasury Shares						Preferred Shares						Warrants						Paid in Surplus						Retained Earnings						AOCI (1)						Total
			(Note 15)						(Note 15)						(Note 15)						(Note 15)																		(Note 16)
As at December 31, 2024			15,659						(43)						356						12						944						10,513						2,313						29,754
Net Earnings (Loss)			—						—						—						—						—						859						—						859
Other Comprehensive Income    (Loss), Net of Tax			—						—						—						—						—						—						(10)						(10)
Total Comprehensive Income (Loss)			—						—						—						—						—						859						(10)						849
Common Shares Issued Under Stock Option Plans			4						—						—						—						(1)						—						—						3
Purchase of Common Shares Under NCIB (2)			(25)						—						—						—						(37)						—						—						(62)
Purchase of Common Shares Under Employee Benefit Plan			—						(58)						—						—						—						—						—						(58)
Common Shares Issued Under Employee Benefit Plan			—						81						—						—						(6)						—						—						75
Preferred Shares Redeemed			—						—						(140)						—						(60)						—						—						(200)
Warrants Exercised			2						—						—						(1)						—						—						—						1
Stock-Based Compensation Expense			—						—						—						—						3						—						—						3
Base Dividends on Common Shares			—						—						—						—						—						(327)						—						(327)
Dividends on Preferred Shares			—						—						—						—						—						(6)						—						(6)
As at March 31, 2025			15,640						(20)						216						11						843						11,039						2,303						30,032
As at December 31, 2025			18,599						(116)						113						4						298						12,323						401						31,622
Net Earnings (Loss)			—						—						—						—						—						1,570						—						1,570
Other Comprehensive Income (Loss), Net of Tax			—						—						—						—						—						—						249						249
Total Comprehensive Income (Loss)			—						—						—						—						—						1,570						249						1,819
Common Shares Issued Under Stock Option Plans			54						—						—						—						(10)						—						—						44
Purchase of Common Shares Under NCIB (2)			(114)						—						—						—						—						(242)						—						(356)
Purchase of Common Shares Under Employee Benefit Plan			—						(51)						—						—						—						—						—						(51)
Common Shares Issued Under Employee Benefit Plan			—						80						—						—						—						31						—						111
Preferred Shares Redeemed			—						—						(113)						—						—						(187)						—						(300)
Warrants Exercised			5						—						—						(2)						—						—						—						3
Warrants Expired			—						—						—						(2)						—						2						—						—
Stock-Based Compensation Expense			—						—						—						—						4						—						—						4
Base Dividends on Common Shares			—						—						—						—						—						(377)						—						(377)
Dividends on Preferred Shares			—						—						—						—						—						(2)						—						(2)
As at March 31, 2026			18,544						(87)						—						—						292						13,118						650						32,517

(1)Accumulated other comprehensive income (loss) (“AOCI”).

(2)Normal course issuer bid (“NCIB”). Includes taxes payable on purchase of shares.

See accompanying Notes to the interim Consolidated Financial Statements (unaudited).

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 5

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

For the period ended March 31,

($ millions)

												Three Months Ended
			Notes															2026						2025
Operating Activities
Net Earnings (Loss)																		1,570						859
Depreciation, Depletion and Amortization			10,11															1,471						1,314
Deferred Income Tax Expense (Recovery)			7															(33)						(66)
Unrealized (Gain) Loss on Risk Management			19															(1)						23
Unrealized Foreign Exchange (Gain) Loss			6															180						19
(Gain) Loss on Divestiture of Assets																		(86)						—
Unwinding of Discount on Decommissioning Liabilities			13															64						58
(Income) Loss From Equity-Accounted Affiliates																		(15)						7
Distributions Received From Equity-Accounted Affiliates																		22						25
Stock-Based Compensation, Net of Payments																		210						7
Other																		(5)						(34)
Settlement of Decommissioning Liabilities			13															(53)						(36)
Net Change in Non-Cash Working Capital			21															(1,143)						(861)
Cash From (Used in) Operating Activities																		2,181						1,315
Investing Activities
Acquisitions, Net of Cash Acquired																		(10)						(100)
Capital Investment			1															(1,170)						(1,229)
Proceeds From Divestitures																		99						—
Net Change in Investments and Other																		12						4
Net Change in Non-Cash Working Capital			21															(1)						(23)
Cash From (Used in) Investing Activities																		(1,070)						(1,348)
Net Cash Provided (Used) Before Financing Activities																		1,111						(33)
Financing Activities			21
Net Issuance (Repayment) of Short-Term Borrowings																		—						150
Repayment of Long-Term Debt			12															(500)						(12)
Principal Repayment of Leases			11															(90)						(83)
Net Proceeds (Repayments) on Repurchase Agreements																		294						300
Common Shares Issued Under Stock Option Plans																		44						3
Purchase of Common Shares Under NCIB			15															(356)						(62)
Purchase of Common Shares Under Employee Benefit Plan			15															(51)						(58)
Redemption of Preferred Shares			15															(300)						(200)
Proceeds From Exercise of Warrants																		3						1
Dividends Paid			8															(379)						(333)
Cash From (Used in) Financing Activities																		(1,335)						(294)
Effect of Foreign Exchange on Cash and Cash Equivalents																		59						2
Increase (Decrease) in Cash and Cash Equivalents																		(165)						(325)
Cash and Cash Equivalents, Beginning of Period																		2,740						3,093
Cash and Cash Equivalents, End of Period																		2,575						2,768

See accompanying Notes to the interim Consolidated Financial Statements (unaudited).

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 6

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

1. DESCRIPTION OF BUSINESS AND SEGMENTED DISCLOSURES

Cenovus Energy Inc. (“Cenovus” or the “Company”) is an integrated energy company with crude 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 (“U.S.”).

Cenovus is incorporated under the Canada Business Corporations Act and its common shares are listed on the Toronto Stock Exchange (“TSX”) and the New York Stock Exchange. The executive and registered office is located at 4100, 225 6 Avenue S.W., Calgary, Alberta, Canada, T2P 1N2. Information on the Company’s basis of preparation for these interim Consolidated Financial Statements is found in Note 2.

Management has determined the operating segments based on information regularly reviewed for the purposes of decision making, allocating resources and assessing operational performance by Cenovus’s chief operating decision maker. The Company’s operating segments are aggregated based on their geographic locations, the nature of the businesses or a combination of these factors. The Company evaluates the financial performance of its operating segments primarily based on operating margin.

The Company operates through the following reportable segments:

Upstream Segments

•Oil Sands, includes the development and production of bitumen and heavy oil in northern Alberta and Saskatchewan. Cenovus’s oil sands assets include Foster Creek, Christina Lake, Sunrise, Lloydminster thermal and Lloydminster conventional heavy oil assets. Cenovus jointly owns and operates pipeline gathering systems and terminals through the equity-accounted investment in Husky Midstream Limited Partnership (“HMLP”). The sale and transportation of Cenovus’s production and third-party commodity trading volumes are managed and marketed through access to capacity on third-party pipelines and storage facilities in both Canada and the U.S. to optimize product mix, delivery points, transportation commitments and customer diversification.

•Conventional, includes assets rich in natural gas liquids (“NGLs”) and natural gas in Alberta and British Columbia in the Edson, Clearwater and Rainbow Lake operating areas, in addition to the Northern Corridor, which includes Elmworth and Wapiti. The segment also includes interests in numerous natural gas processing facilities. Cenovus’s NGLs and natural gas production is marketed and transported, with additional third-party commodity trading volumes, through access to capacity on third-party pipelines, export terminals and storage facilities. These provide flexibility for market access to optimize product mix, delivery points, transportation commitments and customer diversification.

•Offshore, includes offshore operations, exploration and development activities in the east coast of Canada and the Asia Pacific region, representing China and the equity-accounted investment in Husky-CNOOC Madura Limited (“HCML”), which is engaged in the exploration for, and production of, NGLs and natural gas in offshore Indonesia.

Downstream Segments

•Canadian Refining, includes the owned and operated Lloydminster upgrading and asphalt refining complex, which converts heavy oil and bitumen into synthetic crude oil, diesel, asphalt and other ancillary products. Cenovus also owns and operates the Bruderheim crude-by-rail terminal and two ethanol plants. Cenovus markets its production and third-party commodity trading volumes in an effort to use its integrated network of assets to maximize value.

•U.S. Refining, includes the refining of crude oil to produce gasoline, diesel, jet fuel, asphalt and other products at the wholly-owned Lima, Superior and Toledo refineries. Cenovus markets its own and third-party refined products.

Corporate and Eliminations

Corporate and Eliminations, includes Cenovus-wide costs for general and administrative, financing activities, gains and losses on risk management for corporate-related derivative instruments and foreign exchange. Eliminations include adjustments for feedstock and internal usage of crude oil, natural gas, condensate, other NGLs and refined products between segments; transloading services provided to the Oil Sands segment by the Company’s crude-by-rail terminal; the sale of condensate extracted from blended crude oil production in the Canadian Refining segment and sold to the Oil Sands segment; and unrealized profits in inventory. Eliminations are recorded based on market prices.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 7

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

A) Results of Operations – Segment and Operational Information

			Upstream
For the three months ended			Oil Sands												Conventional												Offshore												Total
March 31,			2026						2025						2026						2025						2026						2025						2026						2025
Gross Sales
External Sales			6,892						5,904						568						443						549						451						8,009						6,798
Intersegment Sales			1,892						1,953						469						501						—						—						2,361						2,454
			8,784						7,857						1,037						944						549						451						10,370						9,252
Royalties			(940)						(861)						(18)						(20)						(25)						(25)						(983)						(906)
Revenues			7,844						6,996						1,019						924						524						426						9,387						8,346
Expenses
Purchased Product			617						632						623						535						4						—						1,244						1,167
Transportation and Blending			3,283						3,151						85						90						7						6						3,375						3,247
Operating			826						677						110						127						111						89						1,047						893
Realized (Gain) Loss on Risk    Management			23						(8)						(10)						(1)						—						—						13						(9)
Operating Margin			3,095						2,544						211						173						402						331						3,708						3,048
Unrealized (Gain) Loss on Risk    Management			(90)						(7)						4						—						—						—						(86)						(7)
Depreciation, Depletion and    Amortization			1,027						834						134						120						129						130						1,290						1,084
Exploration Expense			1						4						—						—						11						1						12						5
(Income) Loss From Equity-    Accounted Affiliates			—						—						(1)						—						(15)						(8)						(16)						(8)
Segment Income (Loss)			2,157						1,713						74						53						277						208						2,508						1,974

			Downstream
			Canadian Refining												U.S. Refining												Total
For the three months ended March 31,			2026						2025						2026						2025						2026						2025
Gross Sales
External Sales			1,110						985						4,220						6,422						5,330						7,407
Intersegment Sales			297						297						—						1						297						298
			1,407						1,282						4,220						6,423						5,627						7,705
Royalties			—						—						—						—						—						—
Revenues			1,407						1,282						4,220						6,423						5,627						7,705
Expenses
Purchased Product			1,060						1,076						3,318						6,006						4,378						7,082
Transportation and Blending			—						—						—						—						—						—
Operating			146						138						380						716						526						854
Realized (Gain) Loss on Risk Management			—						—						(11)						6						(11)						6
Operating Margin			201						68						533						(305)						734						(237)
Unrealized (Gain) Loss on Risk Management			—						—						30						(8)						30						(8)
Depreciation, Depletion and Amortization			45						47						112						158						157						205
Exploration Expense			—						—						—						—						—						—
(Income) Loss From Equity-Accounted Affiliates			—						—						—						—						—						—
Segment Income (Loss)			156						21						391						(455)						547						(434)

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 8

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

									Corporate and Eliminations												Consolidated
For the three months ended March 31,																		2026						2025						2026						2025
Gross Sales
External Sales																								—						—						13,339						14,205
Intersegment Sales																								(2,658)						(2,752)						—						—
																								(2,658)						(2,752)						13,339						14,205
Royalties																								—						—						(983)						(906)
Revenues																								(2,658)						(2,752)						12,356						13,299
Expenses
Purchased Product																								(2,129)						(2,370)						3,493						5,879
Transportation and Blending																								(240)						(256)						3,135						2,991
Purchased Product, Transportation and Blending																								(2,369)						(2,626)						6,628						8,870
Operating																								(98)						(118)						1,475						1,629
Realized (Gain) Loss on Risk Management																								8						(5)						10						(8)
Unrealized (Gain) Loss on Risk Management																								55						38						(1)						23
Depreciation, Depletion and Amortization																								24						25						1,471						1,314
Exploration Expense																								—						—						12						5
(Income) Loss From Equity-Accounted Affiliates																								1						15						(15)						7
Segment Income (Loss)																								(279)						(81)						2,776						1,459
General and Administrative																								411						197						411						197
Finance Costs, Net																								194						136						194						136
Integration, Transaction and Other Costs																								32						2						32						2
Foreign Exchange (Gain) Loss, Net																								179						—						179						—
(Gain) Loss on Divestiture of Assets																								(86)						—						(86)						—
Other (Income) Loss, Net																								(38)						(6)						(38)						(6)
																								692						329						692						329
Earnings (Loss) Before Income Tax																																				2,084						1,130
Income Tax Expense (Recovery)																																				514						271
Net Earnings (Loss)																																				1,570						859

B) External Sales by Product

			Upstream
For the three months ended			Oil Sands												Conventional												Offshore												Total
March 31,			2026						2025						2026						2025						2026						2025						2026						2025
Crude Oil			6,604						5,423						109						38						247						146						6,960						5,607
Natural Gas and Other			166						78						398						304						222						228						786						610
NGLs (1)			122						403						61						101						80						77						263						581
External Sales			6,892						5,904						568						443						549						451						8,009						6,798

			Downstream
			Canadian Refining												U.S. Refining												Total
For the three months ended March 31,			2026						2025						2026						2025						2026						2025
Gasoline			55						49						1,970						3,114						2,025						3,163
Distillates (2)			421						356						1,672						2,485						2,093						2,841
Synthetic Crude Oil			425						404						—						—						425						404
Asphalt			45						70						124						194						169						264
Other Products and Services			164						106						454						629						618						735
External Sales			1,110						985						4,220						6,422						5,330						7,407

(1)Third-party condensate sales are included within NGLs.

(2)Includes diesel and jet fuel.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 9

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

C) Geographical Information

															Revenues (1)
For the three months ended March 31,															2026						2025
Canada															7,601						6,184
United States															4,481						6,833
China															274						282
Consolidated															12,356						13,299

(1)Revenues from external customers by country are classified based on the jurisdiction in which the selling entities are located.

			Non-Current Assets (1)
			March 31,						December 31,
As at			2026						2025
Canada			47,501						47,641
United States			2,506						2,514
China			884						939
Indonesia			198						203
Consolidated			51,089						51,297

(1)Includes exploration and evaluation (“E&E”) assets, property, plant and equipment (“PP&E”), right-of-use (“ROU”) assets, income tax receivable, investments in equity-accounted affiliates, precious metals, intangible assets and goodwill.

D) Assets by Segment

			E&E Assets												PP&E												ROU Assets
			March 31,						December 31,						March 31,						December 31,						March 31,						December 31,
As at			2026						2025						2026						2025						2026						2025
Oil Sands			594						568						33,994						34,149						1,174						1,204
Conventional			—						—						2,166						2,202						40						44
Offshore			2						7						4,054						4,008						169						180
Canadian Refining			—						—						2,434						2,452						51						50
U.S. Refining			—						—						2,239						2,238						283						287
Corporate and Eliminations			—						—						210						211						388						388
Consolidated			596						575						45,097						45,260						2,105						2,153

			Goodwill												Total Assets
			March 31,						December 31,						March 31,						December 31,
As at			2026						2025						2026						2025
Oil Sands			2,912						2,912						43,603						42,505
Conventional			—						—						2,525						2,579
Offshore			—						—						4,860						4,756
Canadian Refining			—						—						2,925						2,831
U.S. Refining			—						—						5,237						4,698
Corporate and Eliminations			—						—						5,698						6,055
Consolidated			2,912						2,912						64,848						63,424

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 10

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

E) Capital Expenditures (1)

For the three months ended March 31,															2026						2025
Capital Investment
Oil Sands															851						763
Conventional															93						122
Offshore
Atlantic															119						227
Asia Pacific															23						14
Total Upstream															1,086						1,126
Canadian Refining															24						22
U.S. Refining															58						77
Total Downstream															82						99
Corporate and Eliminations															2						4
															1,170						1,229
Acquisitions
Oil Sands															3						92
Conventional															1						—
															4						92
Total Capital Expenditures															1,174						1,321

(1)Includes expenditures on PP&E, E&E assets and capitalized interest.

2. BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE

In these interim Consolidated Financial Statements, unless otherwise indicated, all dollars are expressed in Canadian dollars. All references to C$ or $ are to Canadian dollars and references to US$ are to U.S. dollars.

These interim Consolidated Financial Statements were prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) (the “IFRS Accounting Standards”) applicable to the preparation of interim financial statements, including International Accounting Standard 34, “Interim Financial Reporting”. These interim Consolidated Financial Statements were prepared following the same accounting policies and methods of computation as the annual Consolidated Financial Statements for the year ended December 31, 2025, except for income taxes. Income taxes on earnings or loss in the interim period are accrued using the income tax rate that would be applicable to the expected annual earnings or loss.

Certain information and disclosures normally included in the notes to the annual Consolidated Financial Statements were condensed. Accordingly, these interim Consolidated Financial Statements should be read in conjunction with the annual Consolidated Financial Statements for the year ended December 31, 2025, which were prepared in accordance with IFRS Accounting Standards.

These interim Consolidated Financial Statements were approved by the Board of Directors effective May 5, 2026.

3. UPDATES TO ACCOUNTING POLICIES

A) Adoption of Amendments to Financial Instruments

Effective January 1, 2026, the Company adopted the amendments to IFRS 9, “Financial Instruments” (“IFRS 9”) and IFRS 7, “Financial Instruments: Disclosures” (“IFRS 7”). The amendments clarify the derecognition of financial liabilities and the classification of certain financial assets. The adoption of the amendments to IFRS 9 and IFRS 7 did not have a material impact on the Company’s Consolidated Financial Statements.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 11

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

B) Recent Accounting Pronouncements

On April 9, 2024, the IASB issued IFRS 18, “Presentation and Disclosure in Financial Statements” (“IFRS 18”), which will replace International Accounting Standard 1, “Presentation of Financial Statements”. IFRS 18 will establish a revised structure for the Consolidated Statements of Comprehensive Income (Loss), including new defined subtotals, enhanced principles on aggregation and disaggregation, and additional disclosure requirements related to management-defined performance measures (“MPMs”). The objective of the standard is to improve comparability across entities and reporting periods. IFRS 18 will not impact recognition or measurement of income and expenses.

Cenovus has executed a parallel system environment to reflect the new presentation requirements. The changes will primarily reflect a re-mapping of line items on the Consolidated Statements of Comprehensive Income (Loss) to newly defined categories. Items such as foreign exchange gains and losses will require segregation. The primary impact on the Consolidated Statements of Cash Flows will be the movement of certain finance costs from operating activities to financing activities. The Company has also identified metrics anticipated to be defined as MPMs.

The Company will continue to evaluate the impacts until adoption on January 1, 2027. The standard will be applied retrospectively, with certain transition provisions.

4. MEG ENERGY CORP. ACQUISITION

On November 13, 2025, Cenovus completed the acquisition of MEG Energy Corp. (“MEG”) through a plan of arrangement (the “MEG Acquisition”), pursuant to which Cenovus acquired all the issued and outstanding common shares of MEG, other than common shares of MEG already owned by Cenovus, for total purchase consideration of $7.1 billion, consisting of $3.4 billion in cash, 143.9 million Cenovus common shares and $32 million of assumed stock-based compensation. The MEG Acquisition provided Cenovus with additional oil sands assets that are directly adjacent to the Company’s Christina Lake asset and are reported under the Christina Lake results in the Oil Sands segment.

The preliminary purchase price allocation was based on Management’s best estimate of the assets acquired and liabilities assumed. The Company will finalize the value of net assets acquired by November 13, 2026, and adjustments to initial estimates, including goodwill, may be required. No adjustments were made to the preliminary purchase price allocation as at March 31, 2026. For further details, see Note 4 of the annual Consolidated Financial Statements for the year ended December 31, 2025.

For the three months ended March 31, 2026, integration and transaction costs related to the MEG Acquisition of $12 million were recognized in net earnings (loss).

5. FINANCE COSTS, NET

For the three months ended March 31,															2026						2025
Interest Expense – Short-Term Borrowings and Long-Term Debt															123						79
Interest Expense – Lease Liabilities (Note 11)															46						43
Unwinding of Discount on Decommissioning Liabilities (Note 13)															64						58
Other															12						6
Capitalized Interest															(25)						(17)
Finance Costs															220						169
Interest Income															(26)						(33)
															194						136

6. FOREIGN EXCHANGE (GAIN) LOSS, NET

For the three months ended March 31,															2026						2025
Unrealized Foreign Exchange (Gain) Loss on Translation of:
U.S. Dollar Debt												Other			100						(5)
Other															80						24
Unrealized Foreign Exchange (Gain) Loss															180						19
Realized Foreign Exchange (Gain) Loss															(1)						(19)
															179						—

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 12

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

7. INCOME TAXES

For the three months ended March 31,															2026						2025
Current Tax
Canada															479						279
United States															6						—
Asia Pacific															54						45
Other International															8						13
Total Current Tax Expense (Recovery)															547						337
Deferred Tax Expense (Recovery)															(33)						(66)
															514						271

8. PER SHARE AMOUNTS

A) Net Earnings (Loss) Per Common Share – Basic and Diluted

For the three months ended March 31,															2026						2025
Net Earnings (Loss)															1,570						859
Effect of Cumulative Dividends on Preferred Shares															(2)						(6)
Net Earnings (Loss) – Basic															1,568						853
Effect of Stock-Based Compensation															—						1
Net Earnings (Loss) – Diluted															1,568						854
Basic – Weighted Average Number of Shares (thousands)															1,874,914						1,821,325
Dilutive Effect of Warrants															—						2,505
Dilutive Effect of Stock-Based Compensation															4,139						7,435
Diluted – Weighted Average Number of Shares (thousands)															1,879,053						1,831,265
Net Earnings (Loss) Per Common Share – Basic ($)															0.84						0.47
Net Earnings (Loss) Per Common Share – Diluted (1) ($)															0.83						0.47

(1)For the three months ended March 31, 2026, 24.8 million (2025 — 13.4 million) common shares related to the assumed exercise of stock-based compensation were excluded from the calculation of dilutive net earnings (loss) per share, as the effect was anti-dilutive.

B) Common Share Dividends

For the three months ended March 31, 2026, the Company paid dividends of $377 million or $0.200 per common share (2025 – $327 million or $0.180 per common share). The declaration of common share dividends is at the sole discretion of the Company’s Board of Directors and is considered quarterly.

On May 5, 2026, the Company’s Board of Directors declared a second quarter base dividend of $0.220 per common share, payable on June 30, 2026, to common shareholders of record as at June 15, 2026.

C) Preferred Share Dividends

For the three months ended March 31, 2026, the Company declared and paid preferred share dividends of $2 million (2025 – $6 million).

9. EXPLORATION AND EVALUATION ASSETS, NET

			Total
As at December 31, 2025			575
Acquisitions			3
Additions			23
Write-downs			(5)
Exchange Rate Movements and Other			—
As at March 31, 2026			596

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 13

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

10. PROPERTY, PLANT AND EQUIPMENT, NET

			Crude Oil and Natural Gas Properties						Processing, Transportation and Storage Assets						Refining Assets						Other Assets (1)						Total
COST
As at December 31, 2025			65,567						275						7,147						1,959						74,948
Acquisitions			1						—						—						—						1
Additions			1,063						—						82						2						1,147
Change in Decommissioning Liabilities			8						—						—						—						8
Divestitures			(5)						—						—						(4)						(9)
Exchange Rate Movements and Other			38						—						76						12						126
As at March 31, 2026			66,672						275						7,305						1,969						76,221
ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION
As at December 31, 2025			25,208						143						2,834						1,503						29,688
Depreciation, Depletion and Amortization			1,240						2						131						18						1,391
Divestitures			(4)						—						—						(3)						(7)
Exchange Rate Movements and Other			14						—						39						(1)						52
As at March 31, 2026			26,458						145						3,004						1,517						31,124
CARRYING VALUE
As at December 31, 2025			40,359						132						4,313						456						45,260
As at March 31, 2026			40,214						130						4,301						452						45,097

(1)Includes assets within the commercial fuels business, office furniture, fixtures, leasehold improvements, information technology and aircraft.

11. LEASES

A) Right-of-Use Assets, Net

			Real Estate						Transportation and Storage Assets (1)						Refining Assets						Other Assets (2)						Total
COST
As at December 31, 2025			611						2,635						148						122						3,516
Additions			—						12						—						2						14
Modifications			1						5						—						—						6
Exchange Rate Movements and Other			(2)						23						4						—						25
As at March 31, 2026			610						2,675						152						124						3,561
ACCUMULATED DEPRECIATION
As at December 31, 2025			223						977						92						71						1,363
Depreciation			9						63						2						6						80
Exchange Rate Movements and Other			1						7						2						3						13
As at March 31, 2026			233						1,047						96						80						1,456
CARRYING VALUE
As at December 31, 2025			388						1,658						56						51						2,153
As at March 31, 2026			377						1,628						56						44						2,105

(1)Includes a pipeline, storage tanks, terminals, railcars, vessels, a natural gas processing plant and caverns.

(2)Includes assets in the commercial fuels business, fleet vehicles, camps and other equipment.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 14

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

B) Lease Liabilities

			Total
As at December 31, 2025			3,175
Additions			13
Interest Expense (Note 5)			46
Lease Payments			(136)
Modifications			6
Exchange Rate Movements and Other			15
As at March 31, 2026			3,119
Less: Current Portion			374
Long-Term Portion			2,745

12. DEBT AND CAPITAL STRUCTURE

A) Short-Term Borrowings

As at March 31, 2026, the Company had uncommitted demand facilities of $1.5 billion (December 31, 2025 – $1.5 billion) in place, of which $1.4 billion may be drawn for general purposes, or the full amount may be available to issue letters of credit. As at March 31, 2026, there were outstanding letters of credit aggregating to $372 million (December 31, 2025 – $341 million) and no direct borrowings (December 31, 2025 – $nil).

B) Long-Term Debt

												March 31,						December 31,
As at												2026						2025
Committed Credit Facility												—						—
Term Loan Facility												2,200						2,700
U.S. Dollar Denominated Senior Unsecured Notes (1)												5,988						5,887
Canadian Dollar Senior Unsecured Notes												2,450						2,450
Total Debt Principal												10,638						11,037
Debt Premiums (Discounts), Net, and Transaction Costs												(5)						(5)
Long-Term Debt												10,633						11,032
Less: Current Portion												—						—
Long-Term Portion												10,633						11,032

(1)Total U.S. dollar denominated unsecured notes as at March 31, 2026, was US$4.3 billion (December 31, 2025 — US$4.3 billion).

As at March 31, 2026, the Company had in place a committed credit facility that consists of a $3.3 billion tranche maturing on September 19, 2029, and a $2.2 billion tranche maturing on September 19, 2028. As at March 31, 2026, no amount was drawn on the credit facility (December 31, 2025 – $nil).

As at March 31, 2026, the Company had in place a $2.2 billion term loan facility maturing on February 28, 2029. In the three months ended March 31, 2026, the Company repaid $500 million under the term loan facility. Subsequent to March 31, 2026, the Company repaid an additional $700 million under the term loan facility.

The committed credit facility and term loan facility may include Canadian Overnight Repo Rate Average loans, Secured Overnight Financing Rate loans, prime rate loans and U.S. Base Rate loans.

As at March 31, 2026, the Company was in compliance with all of the terms of its debt agreements. Under the terms of Cenovus’s committed credit facility and term loan facility, the Company is required to maintain a total debt to capitalization ratio, as defined in the agreements, not to exceed 65 percent. The Company is below this limit.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 15

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

C) Capital Structure

Cenovus’s capital structure consists of shareholders’ equity and Net Debt. Net Debt includes the Company’s short-term borrowings, and the current and long-term portions of long-term debt, net of cash and cash equivalents, and short-term investments. Net Debt is used in managing the Company’s capital structure. The Company’s objectives when managing its capital structure are to maintain financial flexibility, preserve access to capital markets, ensure its ability to finance internally generated growth and to fund potential acquisitions, while maintaining the ability to meet the Company’s financial obligations as they come due. To ensure financial resilience, Cenovus may, among other actions, adjust capital and operating spending, steward working capital, draw down on its credit facilities or repay existing debt, adjust dividends paid to shareholders, purchase the Company’s common shares for cancellation, issue new debt, or issue new shares.

Cenovus monitors its capital structure and financing requirements using, among other things, Total Debt, Net Debt to adjusted earnings before interest, taxes and depreciation, depletion and amortization (“Adjusted EBITDA”), Net Debt to Adjusted Funds Flow and Net Debt to Capitalization. These measures are used to steward Cenovus’s overall debt position as measures of Cenovus’s overall financial strength.

Cenovus targets a Net Debt to Adjusted EBITDA ratio and a Net Debt to Adjusted Funds Flow ratio of approximately 1.0 times and Net Debt at or below $4.0 billion over the long-term at a West Texas Intermediate (“WTI”) price of US$45.00 per barrel. These measures may fluctuate periodically outside this range due to factors such as persistently high or low commodity prices or the strengthening or weakening of the Canadian dollar relative to the U.S. dollar.

Net Debt to Adjusted EBITDA

			March 31,						December 31,
As at			2026						2025
Current Portion of Long-Term Debt			—						—
Long-Term Portion of Long-Term Debt			10,633						11,032
Total Debt			10,633						11,032
Less: Cash and Cash Equivalents			(2,575)						(2,740)
Net Debt			8,058						8,292
Net Earnings (Loss)			4,641						3,930
Add (Deduct):
Finance Costs, Net			627						569
Income Tax Expense (Recovery)			790						547
Depreciation, Depletion and Amortization			5,349						5,192
Exploration and Evaluation Asset Write-downs			30						25
(Income) Loss From Equity-Accounted Affiliates			(75)						(53)
Unrealized (Gain) Loss on Risk Management			(39)						(15)
Foreign Exchange (Gain) Loss, Net			(182)						(361)
(Gain) Loss on Divestiture of Assets			(173)						(87)
Other (Income) Loss, Net			(147)						(115)
Adjusted EBITDA (1)			10,821						9,632
Net Debt to Adjusted EBITDA (times)			0.7						0.9

(1)Calculated on a trailing twelve-month basis.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 16

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

Net Debt to Adjusted Funds Flow

			March 31,						December 31,
As at			2026						2025
Net Debt			8,058						8,292
Cash From (Used in) Operating Activities			9,094						8,228
(Add) Deduct:
Settlement of Decommissioning Liabilities			(297)						(280)
Net Change in Non-Cash Working Capital			(645)						(363)
Adjusted Funds Flow (1)			10,036						8,871
Net Debt to Adjusted Funds Flow (times)			0.8						0.9

(1)Calculated on a trailing twelve-month basis.

Net Debt to Capitalization

			March 31,						December 31,
As at			2026						2025
Net Debt			8,058						8,292
Shareholders’ Equity			32,517						31,622
Capitalization			40,575						39,914
Net Debt to Capitalization (percent)			20						21

13. DECOMMISSIONING LIABILITIES

			Total
As at December 31, 2025			4,872
Liabilities Incurred			8
Liabilities Settled			(53)
Unwinding of Discount on Decommissioning Liabilities (Note 5)			64
Exchange Rate Movements			10
As at March 31, 2026			4,901

As at March 31, 2026, the undiscounted amount of estimated future cash flows required to settle the obligation was discounted using a credit-adjusted risk-free rate of 5.5 percent (December 31, 2025 – 5.5 percent) and assumes an inflation rate of two percent (December 31, 2025 – two percent).

14. OTHER LIABILITIES

			March 31,						December 31,
As at			2026						2025
Renewable Volume Obligation, Net (1)			282						235
Pension and Other Post-Employment Benefit Plan			259						260
Employee Long-Term Incentives			155						169
Provisions for Onerous and Unfavourable Contracts			76						83
Other			170						142
			942						889

(1)The gross amounts of the renewable volume obligation and renewable identification numbers (“RINs”) asset were $1.1 billion and $837 million, respectively (December 31, 2025 – $853 million and $618 million, respectively).

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 17

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

15. SHARE CAPITAL AND WARRANTS

A) Authorized

Cenovus is authorized to issue an unlimited number of common shares, and first and second preferred shares not exceeding, in aggregate, 20 percent of the number of issued and outstanding common shares. The first and second preferred shares may be issued in one or more series with rights and conditions to be determined by the Board of Directors prior to issuance and subject to the Company’s articles.

B) Issued and Outstanding – Common Shares

			March 31, 2026												December 31, 2025
			Number of Common Shares (thousands)						Amount						Number of Common Shares (thousands)						Amount
Outstanding, Beginning of Year			1,883,400						18,599						1,825,038						15,659
Issued Under the MEG Acquisition, Net of Issuance Costs (Note 4)			—						—						143,935						3,667
Issued Upon Exercise of Warrants			536						5						2,471						24
Issued Under Stock Option Plans			2,599						54						1,394						20
Purchase of Common Shares Under NCIB			(11,534)						(114)						(89,438)						(771)
Outstanding, End of Period			1,875,001						18,544						1,883,400						18,599

As at March 31, 2026, there were 22.2 million common shares available for future issuance under the stock option plan.

C) Normal Course Issuer Bid

On November 7, 2025, the Company received approval from the TSX to renew the Company’s NCIB program to purchase up to 120.3 million common shares during the period from November 11, 2025, to November 10, 2026.

For the three months ended March 31, 2026, the Company purchased and cancelled 11.5 million common shares through the NCIB. The common shares were purchased at a volume weighted average price of $30.35 per common share for a total of $350 million. Retained earnings was reduced by $242 million, of which $236 million represents the excess of the purchase price of the common shares over their average carrying value and $6 million relates to share buyback tax.

From April 1, 2026, to May 1, 2026, the Company purchased an additional 7.3 million common shares for $264 million. As at May 1, 2026, the Company can further purchase up to 94.1 million common shares under the NCIB.

D) Treasury Shares

Cenovus has an employee benefit plan trust (the “Trust”). The Trust, through an independent trustee, acquires Cenovus’s common shares on the open market, which are held to satisfy the Company’s obligations under certain stock-based compensation plans.

			March 31, 2026												December 31, 2025
			Number of Common Shares (thousands)						Amount						Number of Common Shares (thousands)						Amount
Outstanding, Beginning of Year			5,258						116						2,000						43
Purchased Under Employee Benefit Plan			1,800						51						7,100						155
Distributed Under Employee Benefit Plan			(3,559)						(80)						(3,842)						(82)
Outstanding, End of Period			3,499						87						5,258						116

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 18

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

E) Issued and Outstanding – Preferred Shares

			March 31, 2026												December 31, 2025
			Number of Preferred Shares (thousands)						Amount						Number of          Preferred               Shares (thousands)						Amount
Outstanding, Beginning of Year			12,000						113						26,000						356
Preferred Shares Redeemed			(12,000)						(113)						(14,000)						(243)
Outstanding, End of Period			—						—						12,000						113

On March 31, 2026, Cenovus exercised its right to redeem all 10.7 million of the Company’s series 1 preferred shares, and all 1.3 million of the Company’s series 2 preferred shares. The preferred shares were redeemed at a price of $25.00 per share, for a total of $300 million. Retained earnings was reduced by $187 million, representing the excess of the purchase price of the preferred shares over their carrying value.

F) Issued and Outstanding – Warrants

			March 31, 2026												December 31, 2025
			Number of Warrants (thousands)						Amount						Number of Warrants (thousands)						Amount
Outstanding, Beginning of Year			1,172						4						3,643						12
Exercised			(536)						(2)						(2,471)						(8)
Expired			(636)						(2)						—						—
Outstanding, End of Period			—						—						1,172						4

The exercise price of the warrants was $6.54 per share. The warrants expired on January 1, 2026.

16. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

			Pension and Other Post-Employment Benefits						Private Equity Investments						Foreign Currency Translation Adjustment						Total
As at December 31, 2024			69						156						2,088						2,313
Other Comprehensive Income (Loss), Before Tax			3						(2)						(10)						(9)
Income Tax (Expense) Recovery			(1)						—						—						(1)
As at March 31, 2025			71						154						2,078						2,303
As at December 31, 2025			86						131						184						401
Other Comprehensive Income (Loss), Before Tax			5						1						244						250
Income Tax (Expense) Recovery			(1)						—						—						(1)
As at March 31, 2026			90						132						428						650

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 19

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

17. STOCK-BASED COMPENSATION PLANS

Cenovus has a number of stock-based compensation plans that include net settlement rights (“NSRs”), performance share units (“PSUs”), restricted share units (“RSUs”) and deferred share units.

The following tables summarize information related to the Company’s stock-based compensation plans:

			Units Outstanding						Units Exercisable
As at March 31, 2026			(thousands)						(thousands)
Stock Options With Associated Net Settlement Rights			10,948						4,414
Performance Share Units			7,810						—
Restricted Share Units			11,256						—
Deferred Share Units			2,080						2,080

The weighted average exercise price of NSRs outstanding as at March 31, 2026, was $22.73.

			Units Granted						Units Vested and Exercised/ Paid Out
For the three months ended March 31, 2026			(thousands)						(thousands)
Stock Options With Associated Net Settlement Rights			2,685						2,599
Performance Share Units			2,368						1,982
Restricted Share Units			2,561						3,035
Deferred Share Units			356						122

			Weighted Average Exercise Price						Units Exercised
For the three months ended March 31, 2026			($/unit)						(thousands)
Stock Options With Associated Net Settlement Rights Exercised for Net Cash Payment			17.51						2,344
Stock Options With Associated Net Settlement Rights Exercised and Net Settled for Common Shares (1)			11.53						255

(1)NSRs were net settled for 255 thousand common shares.

The following table summarizes the stock-based compensation expense (recovery) recorded for all plans:

For the three months ended March 31,															2026						2025
Stock Options With Associated Net Settlement Rights															4						3
Cenovus Replacement Stock Options															—						(2)
Performance Share Units															98						10
Restricted Share Units															113						14
Deferred Share Units															37						1
Stock-Based Compensation Expense (Recovery)															252						26

PSUs and RSUs granted under the Performance Share Unit Plan and Restricted Share Unit Plan for Local Employees in the Asia Pacific region may only be settled in cash.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 20

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

18. RELATED PARTY TRANSACTIONS

Husky Midstream Limited Partnership

The Company jointly owns and is the operator of HMLP and applies the equity method of accounting. The Company charges HMLP for construction and management services, and incurs costs for the use of HMLP’s pipeline systems, as well as transportation and storage services. Access fees and transportation and storage services are based on contractually agreed rates with HMLP.

The following table summarizes revenues and associated expenses related to HMLP:

For the three months ended March 31,															2026						2025
Revenues from Construction and Management Services															33						29
Transportation Expenses															65						68

19. FINANCIAL INSTRUMENTS

Cenovus’s financial assets and financial liabilities consist of cash and cash equivalents, accounts receivable and accrued revenues, restricted cash, risk management assets and liabilities, accounts payable and accrued liabilities, lease liabilities, long-term debt, certain portions of other assets and certain portions of other liabilities. Risk management assets and liabilities arise from the use of derivative financial instruments.

A) Fair Value of Non-Derivative Financial Instruments

The fair values of cash and cash equivalents, accounts receivable and accrued revenues, and accounts payable and accrued liabilities approximate their carrying amount due to the short-term maturity of these instruments.

The fair values of restricted cash, certain portions of other assets and certain portions of other liabilities approximate their carrying amount due to the specific non-tradeable nature of these instruments.

Long-term debt is carried at amortized cost. The estimated fair value of long-term debt was determined based on period-end trading prices of long-term debt on the secondary market (Level 2). As at March 31, 2026, the carrying value of Cenovus’s long-term debt was $10.6 billion and the fair value was $10.2 billion (December 31, 2025, carrying value – $11.0 billion; fair value – $10.6 billion).

The Company classifies certain private equity investments as FVOCI as they are not held for trading and fair value changes are not reflective of the Company’s operations. These assets are carried at fair value in other assets. Fair value is determined based on recent market activity which may include equity transactions of the entity when available (Level 3).    

The following table provides a reconciliation of changes in the fair value of private equity investments held and classified as FVOCI during the period:

			Total
As at December 31, 2025			193
Acquisitions			1
Changes in Fair Value			1
As at March 31, 2026			195

B) Fair Value of Risk Management Assets and Liabilities

Risk management assets and liabilities are carried at fair value in accounts receivable and accrued revenues, accounts payable and accrued liabilities (for short-term positions), and other assets and other liabilities (for long-term positions). Changes in fair value are recorded in (gain) loss on risk management.

The Company’s risk management assets and liabilities consist of condensate and refined product futures; crude oil and natural gas futures and swaps; and renewable power, power and foreign exchange contracts. The Company may also enter into forwards and options to manage commodity, foreign exchange and interest rate exposures.

Crude oil, natural gas, condensate, refined products and power contracts are recorded at their estimated fair value based on the difference between the contracted price and the period-end forward price for the same commodity, using quoted market prices or the period-end forward price for the same commodity, extrapolated to the end of the term of the contract (Level 2). The fair value of foreign exchange rate contracts is calculated using external valuation models that incorporate observable market data and foreign exchange forward curves (Level 2).

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 21

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

The fair value of renewable power contracts is calculated using internal valuation models that incorporate broker pricing for relevant markets, some observable market prices and extrapolated market prices with inflation assumptions (Level 3). The fair value of renewable power contracts are calculated by Cenovus’s internal valuation team, which consists of individuals who are knowledgeable and have experience in fair value techniques.

Summary of Risk Management Positions

			March 31, 2026																		December 31, 2025
			Risk Management																		Risk Management
As at			Asset						Liability						Net						Asset						Liability						Net
Crude Oil, Condensate, Natural Gas and Refined Products			437						385						52						27						30						(3)
Power Contracts			3						—						3						2						—						2
Renewable Power Contracts			—						41						(41)						17						6						11
Foreign Exchange Rate Contracts			—						2						(2)						—						—						—
			440						428						12						46						36						10

The following table presents the Company’s fair value hierarchy for risk management assets and liabilities carried at fair value:

			March 31,						December 31,
As at			2026						2025
Level 2 – Prices Sourced From Observable Data or Market Corroboration			53						(1)
Level 3 – Prices Sourced From Partially Unobservable Data			(41)						11
			12						10

The following table provides a reconciliation of changes in the fair value of Cenovus’s risk management assets and liabilities:

			Total
As at December 31, 2025			10
Change in Fair Value of Contracts in Place, Beginning of Year			(21)
Change in Fair Value of Contracts Entered Into During the Period			13
Fair Value of Contracts Realized During the Period			10
As at March 31, 2026			12

C) Earnings Impact of (Gains) Losses From Risk Management Positions

For the three months ended March 31,															2026						2025
Realized (Gain) Loss															10						(8)
Unrealized (Gain) Loss															(1)						23
(Gain) Loss on Risk Management															9						15

Realized and unrealized gains and losses on risk management are recorded in the reportable segment to which the derivative instrument relates.

20. RISK MANAGEMENT

Cenovus is exposed to financial risks, including market risk related to commodity prices, foreign exchange rates, interest rates and commodity power prices, as well as credit risk and liquidity risk.

As at March 31, 2026, the fair value of risk management positions was a net asset of $12 million. As at March 31, 2026, there were foreign exchange contracts with a notional value of US$235 million and no interest rate contracts outstanding. As at December 31, 2025, there were no foreign exchange contracts or interest rate contracts outstanding.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 22

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

Net Fair Value of Risk Management Positions

As at March 31, 2026

Notional Volumes (1) (2)

Terms

Weighted Average Price (2)

Fair Value Asset (Liability)

WTI Contracts Related to Blending (3)

WTI Fixed – Sell

9.7 MMbbls

April 2026 - June 2027

US$63.57/bbl

(351)

WTI Fixed – Buy

0.8 MMbbls

April 2026 - December 2027

US$73.96/bbl

3

Power Contracts

3

Renewable Power Contracts

(41)

Other Financial Positions (4)

400

Foreign Exchange Rate Contracts

(2)

Total Fair Value

12

(1)    Million barrels (“MMbbls”).

(2)    Notional volumes and weighted average price are based on multiple contracts of varying amounts and terms over the respective time period; therefore, the notional volumes and weighted average price may fluctuate from month to month.

(3)    WTI futures contracts are used to help manage price exposure to condensate used for blending. Includes individual WTI contracts with varying terms, the longest of which is 21 months.

(4)    Includes risk management positions related to Western Canadian Select at Hardisty (“WCS”), heavy oil, light oil and condensate differentials, benchmark delivery location spreads, Belvieu and heating oil fixed price contracts, natural gas basis and fixed price contracts, and reformulated blendstock for oxygenate blending gasoline contracts.

A) Commodity Price and Foreign Exchange Rate Risk

Sensitivities

The following table summarizes the sensitivity of the fair value of Cenovus’s risk management positions to independent fluctuations in commodity prices and foreign exchange rates, with all other variables held constant. Management believes the fluctuations identified in the table below are a reasonable measure of volatility.

The impact of fluctuating commodity prices and foreign exchange rates on the Company’s open risk management positions could have resulted in an unrealized gain (loss) impacting earnings before income tax as follows:

As at March 31, 2026			Sensitivity Range			Increase						Decrease
Crude Oil and Condensate Commodity Price			± US$30.00/bbl Applied to WTI, Condensate and Related Hedges			—						—
Crude Oil and Condensate Differential Price (1)			± US$2.50/bbl Applied to Differential Hedges Tied to Production			5						(5)
WCS (Hardisty) Differential Price			± US$2.50/bbl Applied to WCS Differential Hedges Tied to Production			(5)						5
Refined Products Commodity Price			± US$30.00/bbl Applied to Heating Oil and Gasoline Hedges			(17)						17
Natural Gas Commodity Price			± US$0.50/Mcf (2) Applied to Natural Gas Hedges			—						—
Natural Gas Basis Price			± US$0.50/Mcf Applied to Natural Gas Basis Hedges			(3)						3
Power Commodity Price			± C$10.00/MWh (3) Applied to Power Hedges			38						(38)
U.S. to Canadian Dollar Exchange Rate			± $0.05 in the U.S. to Canadian Dollar Exchange Rate			21						(24)

(1)Excluding WCS at Hardisty.

(2)One thousand cubic feet (“Mcf”).

(3)One thousand kilowatts of electricity per hour (“MWh”).

B) Credit Risk

Credit risk arises from the potential that the Company may incur a financial loss if a counterparty to a financial instrument fails to meet its financial or performance obligations in accordance with agreed terms. Cenovus assesses the credit risk of new counterparties and continues risk-based monitoring of all counterparties on an ongoing basis. A substantial portion of Cenovus’s accounts receivable are with customers in the oil and gas industry and are subject to normal industry credit risks.

As at March 31, 2026, approximately 82 percent (December 31, 2025 – 81 percent) of the Company’s accounts receivable and accrued revenues were with investment grade counterparties, and 99 percent of the Company’s accounts receivable were outstanding for less than 60 days. The associated average expected credit loss on these accounts was 0.3 percent as at March 31, 2026 (December 31, 2025 – 0.3 percent).

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 23

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

C) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet all of its financial obligations as they become due. Liquidity risk also includes the risk of not being able to liquidate assets in a timely manner at a reasonable price.

As disclosed in Note 12, over the long term, Cenovus targets a Net Debt to Adjusted EBITDA ratio and a Net Debt to Adjusted Funds Flow ratio of approximately 1.0 times at a WTI price of US$45.00 per barrel to manage the Company’s overall debt position.

Undiscounted cash outflows relating to financial liabilities are:

As at March 31, 2026			Less than 1 Year						Years 2 and 3						Years 4 and 5						Thereafter						Total
Accounts Payable and Accrued Liabilities			6,691						—						—						—						6,691
Long-Term Debt (1)			475						4,349						1,627						9,072						15,523
Lease Liabilities (1)			521						906						671						2,653						4,751

(1)Principal and interest, including current portion, if applicable.

21. SUPPLEMENTARY CASH FLOW INFORMATION

A) Working Capital

			March 31,						December 31,
As at			2026						2025
Total Current Assets			11,477						9,890
Total Current Liabilities			7,330						6,314
Working Capital			4,147						3,576

B) Changes in Non-Cash Working Capital

For the three months ended March 31,															2026						2025
Accounts Receivable and Accrued Revenues															(1,188)						(95)
Income Tax Receivable															323						(78)
Inventories															(754)						160
Accounts Payable and Accrued Liabilities															308						(541)
Income Tax Payable															167						(330)
Total Change in Non-Cash Working Capital															(1,144)						(884)
Net Change in Non-Cash Working Capital – Operating Activities															(1,143)						(861)
Net Change in Non-Cash Working Capital – Investing Activities															(1)						(23)
Total Change in Non-Cash Working Capital															(1,144)						(884)

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 24

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

C) Reconciliation of Liabilities

The following table provides a reconciliation of liabilities to cash flows arising from financing activities:

			Dividends Payable																		Repurchase Agreements Payable												Short-Term Borrowings						Long-Term Debt						Lease Liabilities
As at December 31, 2024			—																		—												173						7,534						2,927
Acquisition			—																		—												—						12						—
Changes From Financing Cash Flows:
Net Issuance (Repayment) of Short-Term Borrowings			—																		—												150						—						—
Proceeds on Repurchase Agreements			—																		300												—						—						—
Repayment of Long-Term Debt			—																		—												—						(12)						—
Principal Repayment of Leases			—																		—												—						—						(83)
Dividends Paid			(333)																		—												—						—						—
Non-Cash Changes:
Finance and Transaction Costs			—																		—												—						(5)						—
Lease Additions			—																		—												—						—						22
Base Dividends Declared on Common Shares			327																		—												—						—						—
Dividends Declared on Preferred Shares			6																		—												—						—						—
Exchange Rate Movements and Other			—																		—												—						(5)						59
As at March 31, 2025			—																		300												323						7,524						2,925
As at December 31, 2025			—																		401												—						11,032						3,175
Changes From Financing Cash Flows:
Repayment of Long-Term Debt			—																		—												—						(500)						—
Principal Repayment of Leases			—																		—												—						—						(90)
Proceeds on Repurchase Agreements (1)			—																		723												—						—						—
Repayment of Repurchase Agreements (1)			—																		(429)												—						—						—
Dividends Paid			(379)																		—												—						—						—
Non-Cash Changes:
Finance and Transaction Costs			—																		—												—						2						—
Lease Additions			—																		—												—						—						13
Lease Modifications			—																		—												—						—						6
Base Dividends Declared on Common Shares			377																		—												—						—						—
Dividends Declared on Preferred Shares			2																		—												—						—						—
Exchange Rate Movements and Other			—																		17												—						99						15
As at March 31, 2026			—																		712												—						10,633						3,119

(1)Includes proceeds and repayments of $464 million and $269 million, respectively, that primarily relate to RINs.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 25

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

22. COMMITMENTS AND CONTINGENCIES

A) Commitments

Cenovus has entered into various commitments in the normal course of operations. Commitments that have original maturities less than one year are excluded from the table below. Future payments for the Company’s commitments are below:

As at March 31, 2026			Remainder of Year						2 Years						3 Years						4 Years						5 Years						Thereafter						Total
Transportation and Storage (1) (2)			1,976						2,658						2,835						2,853						2,578						23,783						36,683
Real Estate			48						64						66						70						70						474						792
Obligation to Fund HCML			76						95						55						43						42						59						370
Other Long-Term Commitments			472						188						153						123						118						489						1,543
Total Commitments			2,572						3,005						3,109						3,089						2,808						24,805						39,388

(1)Includes transportation commitments that are subject to regulatory approval or were approved but are not yet in service of $7.8 billion. Terms are up to 15 years on commencement.

(2)As at March 31, 2026, includes $1.8 billion related to transportation and storage commitments with HMLP.

There were outstanding letters of credit aggregating to $372 million (December 31, 2025 – $341 million) issued as security for financial and performance conditions under certain contracts.

B) Contingencies

Legal Proceedings

Cenovus is involved in a limited number of legal claims associated with the normal course of operations. Cenovus believes that any liabilities that might arise from such matters, to the extent not provided for, are not likely to have a material effect on its interim Consolidated Financial Statements.

Income Tax Matters

The tax regulations and legislation and interpretations thereof in the various jurisdictions in which Cenovus operates are continually changing. As a result, there are usually a number of tax matters under review. Management believes that the provision for taxes is adequate.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements 26

Exhibit 99.4

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

FULL CERTIFICATE

I, Jonathan M. McKenzie, President & Chief Executive Officer of Cenovus Energy Inc., certify the following:

1.Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Cenovus Energy Inc. (the “issuer”) for the interim period ended March 31, 2026.

2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (“DC&P”) and internal control over financial reporting (“ICFR”), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1    Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) framework in Internal Control – Integrated Framework.

5.2    ICFR - material weakness relating to design: N/A

5.3    Limitation on scope of design: The issuer has disclosed in its interim MD&A

(a)    the fact that the issuer's other certifying officer(s) and I have limited the scope of our design of DC&P and ICFR to exclude controls, policies and procedures of a business that the issuer acquired not more than 365 days before the last day of the period covered by the interim filings; and

(b)    summary financial information about the business that the issuer acquired that has been proportionately consolidated or consolidated in the issuer's financial statements.

6.    Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on January 1, 2026 and ended on March 31, 2026 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: May 6, 2026

/s/ Jonathan M. McKenzie        

Jonathan M. McKenzie

President & Chief Executive Officer

Exhibit 99.5

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

FULL CERTIFICATE

I, Karamjit S. Sandhar, Executive Vice-President & Chief Financial Officer of Cenovus Energy Inc., certify the following:

1.Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Cenovus Energy Inc. (the “issuer”) for the interim period ended March 31, 2026.

2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (“DC&P”) and internal control over financial reporting (“ICFR”), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1    Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) framework in Internal Control – Integrated Framework.

5.2    ICFR - material weakness relating to design: N/A

5.3    Limitation on scope of design: The issuer has disclosed in its interim MD&A

(a)    the fact that the issuer's other certifying officer(s) and I have limited the scope of our design of DC&P and ICFR to exclude controls, policies and procedures of a business that the issuer acquired not more than 365 days before the last day of the period covered by the interim filings; and

(b)    summary financial information about the business that the issuer acquired that has been proportionately consolidated or consolidated in the issuer's financial statements.

6.    Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on January 1, 2026 and ended on March 31, 2026 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: May 6, 2026

/s/ Karamjit S. Sandhar

Karamjit S. Sandhar

Executive Vice-President & Chief Financial Officer

FAQ

How did Cenovus Energy (CVE) perform financially in Q1 2026?

Cenovus generated strong Q1 2026 results, with revenues of about $12.4 billion, adjusted funds flow of $3.38 billion and free funds flow of $2.21 billion. Net earnings rose to $1.57 billion, driven by higher oil prices, record upstream production and stronger refining margins.

What were Cenovus Energy (CVE) production and refining volumes in Q1 2026?

Total upstream production reached 972.1 MBOE/d in Q1 2026, up 19% from Q1 2025. Oil Sands output was 775.0 MBOE/d, Conventional 121.7 MBOE/d and Offshore 75.4 MBOE/d. Downstream crude throughput averaged 458,500 bbls/d, with Canadian refining utilization at 107% and U.S. refining at 94%.

How much cash did Cenovus (CVE) return to shareholders in Q1 2026 and in what forms?

In Q1 2026, Cenovus returned $1.0 billion to shareholders. This included $379 million in common and preferred dividends, $356 million for repurchasing 11.5 million common shares under its NCIB, and $300 million to redeem Series 1 and 2 preferred shares.

What dividend changes did Cenovus Energy (CVE) announce for 2026?

The Board approved a 10% increase in the quarterly base dividend to $0.22 per common share starting in the second quarter of 2026. In Q1 2026, Cenovus paid base common dividends of $0.20 per share, totaling $377 million on common shares during the quarter.

What is Cenovus Energy’s (CVE) net debt position and target as of Q1 2026?

As of March 31, 2026, Cenovus reported long-term debt of $10.63 billion and net debt of $8.06 billion, slightly lower than year-end 2025. The company reiterated its intention to steward toward a long-term net debt target of $4.0 billion under its financial framework.

Which major growth projects is Cenovus (CVE) advancing following Q1 2026?

Cenovus is progressing the Christina Lake North expansion, targeting about 40,000 bbls/d of added output by 2028, ramping Sunrise toward 70,000 bbls/d by 2028, and advancing the West White Rose offshore project, where first oil is anticipated in the third quarter of 2026.

What asset sale did Cenovus Energy (CVE) announce related to its Canadian commercial fuels business?

Cenovus entered agreements to sell its Canadian commercial fuels business, including travel centres, cardlocks, retail sites and bulk plants, for expected cash proceeds of $275 million. Closing is expected in the second half of 2026, subject to Competition Act (Canada) approval and customary conditions.

Filing Exhibits & Attachments

5 documents

Press Releases

• EX-99.1 EX-99.1 174.6 KB
• EX-99.2 EX-99.2 1.5 MB
• EX-99.3 EX-99.3 1.0 MB
• EX-99.4 EX-99.4 12.9 KB
• EX-99.5 EX-99.5 13.2 KB