Cenovus Energy Inc. (CVE) reported third-quarter 2024 adjusted earnings per share of 31 cents, which missed the Zacks Consensus Estimate of 34 cents. The bottom line also declined from the year-ago figure of 72 cents.Total quarterly revenues of $10.45 billion topped the Zacks Consensus Estimate of $10.13 billion. The top line, however, decreased from the year-ago level of $10.87 billion.Weak quarterly earnings can be primarily attributed to a decline in contribution from the Oil Sands and U.S. Manufacturing ...

Cenovus Energy Inc. (NYSE:CVE) Q3 2024 Earnings Conference Call October 31, 2024 10:00 AM ET Company Participants Patrick Read - VP, IR Jon McKenzie - CEO Kam Sandhar - EVP, Strategy and Corporate Development Keith Chiasson - EVP, Downstream Geoff Murray - EVP, Commercial Conference Call Participants Dennis Fong - CIBC World Markets Greg Pardy - RBC Capital Markets John Royall - JPMorgan Menno Hulshof - TD Securities Neil Mehta - Goldman Sachs Manav Gupta - UBS Travis Wood - National Bank Financial Patrick ...

Financial Data and Key Metrics - The company generated an operating margin of $2.4 billion in Q3 2024, with adjusted funds flow of approximately $2 billion and free funds flow of about $600 million [21] - Upstream production was approximately 771,000 BOE per day, with an operating margin of $2.7 billion [8] - Oil sands segment delivered 586,000 barrels per day, with an operating margin of $2.5 billion [10] - Conventional gas production was about 118,000 BOE per day, impacted by turnaround activity [14] - Offshore production was approximately 66,000 BOE per day, with an operating margin of $242 million [15] - U S refining segment had a crude utilization rate of 89%, with a throughput of 544,000 barrels per day and an operating margin shortfall of $383 million [18] Business Line Performance - Oil sands segment exceeded production forecasts by 15,000 to 20,000 barrels per day due to early completion of the Christina Lake turnaround [9] - The Narrows Lake pipeline is 93% complete, expected to add 20,000 to 30,000 barrels per day by mid-2025 [11] - Conventional gas business deferred completion of some gas-weighted wells due to weak natural gas prices [14] - Offshore Liwan platform and onshore gas plant maintenance were successfully completed, with Asia-Pacific production exceeding forecasts [15] - The SeaRose FPSO life extension work was completed, extending its life to 2038, with production expected to resume by year-end [16] - Canadian refining utilization was 92%, impacted by turnaround activity at the Lloydminster upgrader [17] Market Performance - The TMX pipeline provided additional egress capacity, positively impacting Cenovus and the Canadian economy by narrowing the WCS differential [13] - U S refining segment faced challenges due to the Lima refinery turnaround, impacting profitability [18] - The company is focused on improving U S refining competitiveness through asset reliability and cost structure improvements [20] Strategic Direction and Industry Competition - The company is committed to maintaining a strong balance sheet and returning 100% of excess free funds flow to shareholders [22] - Growth projects in the oil sands, including Sunrise and Foster Creek Optimization, are expected to drive material growth over the next two years [12] - The West White Rose project is 85% complete, with first oil expected in 2026 [16] - The company is focused on improving downstream reliability and capturing more value from commercial opportunities [20] Management Commentary on Operating Environment and Future Outlook - The company expects increased upstream production and downstream reliability in Q4 2024 [24] - Management highlighted the importance of safety and operational execution during a heavy maintenance period [6][7] - The company remains focused on delivering growth projects and maintaining strong operational performance [24] Other Important Information - The company achieved its net debt target of $4 billion in July 2024, with net debt at approximately $4.2 billion at the end of Q3 [22] - Shareholders received $1.1 billion in cash returns through dividends and share buybacks, exceeding 100% of excess free funds flow [23] Q&A Session Summary Question: Downstream reliability improvements [26] - The company is addressing reliability issues in both Canadian and U S refineries, with progress seen in primary refining units but challenges in secondary units [28][29] - Targeted investments during turnarounds have addressed historical reliability issues, positioning refineries for improved performance [19] Question: Capital structure and preferred shares [32] - The company has five series of preferred shares outstanding, with one series resetting in December 2024 [33] - Market conditions will dictate whether the company extends or retires these shares [34] Question: Refining business volatility [36] - The company views its refineries as critical for egress and insulation against heavy oil differentials, with a focus on improving reliability to reduce volatility [38][40] Question: SeaRose FPSO timeline [43] - The SeaRose FPSO is en route to the site, with production expected to ramp up by year-end and into 2025 [43] - The life extension supports the West White Rose project, extending production capabilities for 14-15 years [44] Question: Christina Lake turnaround success [46] - The turnaround was completed eight days ahead of schedule, with production exceeding forecasts [47] - The Narrows Lake pipeline tie-in was completed, setting the stage for future growth [48] Question: Takeaway capacity and refined product egress [50] - The company has sufficient takeaway capacity for current production, with rail capacity as a backup option [51][52] - Efforts are underway to expand refined product placement beyond the Ohio Valley, including the Broadway 3 project [55] Question: 2025 capital expectations [59] - The company expects 2025 capital spending to remain in the $4.5 billion to $5 billion range, consistent with previous guidance [59] - Growth projects, including West White Rose, are expected to drive significant free cash flow starting in 2027 [62] Question: Break-even WTI prices [70] - The company's sustaining capital and base dividend are fully funded at $45 WTI, with a total break-even around $50 WTI when including growth capital [71][72] Question: Narrows Lake tieback progress [77] - The Narrows Lake pipeline is mechanically complete, with startup expected in April 2025 after winter weather passes [77][78] Question: Strategic advantage of downstream assets [80] - The company's refineries along the Enbridge mainline provide a strategic advantage in moving barrels at competitive rates [82][83] Question: TMX netbacks and marketing opportunities [84] - The TMX pipeline has shown robust operational performance, with netbacks covering full investment costs [84][85] Question: TMX overrun negotiations [87] - No update on the uncapped portion of the TMX overrun, with resolution expected in the spring [87]

CORPORATE PRESENTATION October 2024 CENOVUS AT A GLANCE TSX, NYSE | CVE Market capitalization $43 billion 2024 production 797.5 MBOE/d • Oil Sands 605 Mbbls/d • Conventional 122.5 MBOE/d • Offshore 70 MBOE/d 720 Mbbls/d Upgrading and refining operable capacity 2023 proved & probable 8.7 BBOE reserves ~31 years Reserves life index Note: Market capitalization as at October 30, 2024. Values are approximate. Expected production based on July 31, 2024 guidance midpoints. Refining capacity represents net operable ...

Cenovus Energy (CVE) came out with quarterly earnings of $0.31 per share, missing the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.72 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -8.82%. A quarter ago, it was expected that this oil company would post earnings of $0.52 per share when it actually produced earnings of $0.39, delivering a surprise of -25%.Over the last four quarters, the company ...

CALGARY, Alberta, Oct. 31, 2024 (GLOBE NEWSWIRE) -- Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) today announced its financial and operating results for the third quarter of 2024. The company generated nearly $2.5 billion in cash from operating activities, $2.0 billion of adjusted funds flow and $614 million of free funds flow in the quarter. Upstream production of more than 771,000 barrels of oil equivalent per day (BOE/d)1 was slightly lower compared with the second quarter primarily because of turnaround a ...

The market expects Cenovus Energy (CVE) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be relea ...

CALGARY, Alberta, Oct. 24, 2024 (GLOBE NEWSWIRE) -- Cenovus Energy Inc. (TSX:CVE) (NYSE: CVE) will release its third-quarter 2024 results on Thursday, October 31. The news release will provide consolidated third-quarter operating and financial information. The company’s financial statements will be available on Cenovus’s website, cenovus.com. Conference call: 8 a.m. MT (10 a.m. ET) To join the conference call, please dial 1-888-307-2440 (toll-free in North America) or 647-694-2812 to reach a live operator w ...

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Cenovus Energy (CVE) ended the recent trading session at $17.11, demonstrating a -0.64% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.19%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq decreased by 0.36%. The oil company's shares have seen a decrease of 8.06% over the last month, not keeping up with the OilsEnergy sector's loss of 1.95% and the S&P 500's gain of 2.06%. Analysts and investors alike wil ...