Cenovus Energy(CVE) - 2024 Q4 - Annual Report

Financial Performance - Revenues for Q4 2024 were $12,813 million, a decrease of 2.4$13,134 million[3] - Net earnings for Q4 2024 were $146 million, down 80.4$743 million in Q4 2023[3] - The company reported a comprehensive income of $898 million for Q4 2024, compared to$497 million in Q4 2023, marking an increase of 80.8%[3] - The basic net earnings per share for 2024 were $1.68, down from$2.15 in 2023, a decrease of 21.8%[3] - Net earnings for Q4 2024 were $146 million, a decrease of 80$743 million in Q4 2023[13] - Total revenues for Q4 2024 increased to $7,326 million, up 6.3$6,895 million in Q4 2023[21] - Total external sales for the twelve months ended December 31, 2024, increased to $57,726 million, up 4.5$55,474 million in 2023[26] - Segment income for the twelve months ended December 31, 2024, was $5,863 million, a decrease of 7.0$6,300 million in 2023[26] Assets and Liabilities - Total assets increased to $56,539 million in 2024, up from$53,915 million in 2023, representing a growth of 4.8%[7] - Total liabilities increased to $26,770 million in 2024, compared to$25,203 million in 2023, reflecting a rise of 6.2%[7] - The company’s inventories increased to $4,496 million in 2024, up from$4,030 million in 2023, reflecting an increase of 11.6%[7] - The company’s total current tax expense for 2024 was $1,403 million, an increase from$1,181 million in 2023[65] - The total non-current assets as of December 31, 2024, amounted to $44,452 million, up from$43,058 million in 2023, indicating a growth of 3.2%[34] - Total current liabilities rose to $7,362 million as of December 31, 2024, compared to$6,210 million in 2023[137] Cash Flow and Investments - Cash and cash equivalents rose to $3,093 million, an increase of 39$2,227 million in 2023[7] - Cash from operating activities for the twelve months ended December 31, 2024, was $9,235 million, an increase of 25$7,388 million in 2023[13] - Capital investment for the twelve months ended December 31, 2024, was $5,015 million, an increase of 16.6$4,298 million in 2023[13] - Capital expenditures for Q4 2024 totaled $1,481 million, compared to$1,172 million in Q4 2023, marking a 26.3% increase[36] - The company reported a net finance cost of $514 million for the twelve months ended December 31, 2024, slightly down from$538 million in 2023[46] Debt and Equity - The company’s long-term debt increased to $7,342 million in 2024 from$7,108 million in 2023, a growth of 3.3%[7] - Long-term debt rose to $7,534 million in 2024 from$7,108 million in 2023, an increase of 6%[79] - Net debt decreased to $4,614 million as of December 31, 2024, down from$5,060 million in 2023, a reduction of 8.8%[85] - The net debt to adjusted EBITDA ratio remained stable at 0.5 times for both 2024 and 2023[85] - The company repurchased and canceled 55.9 million common shares in 2024 at an average price of $25.38 per share, totaling$1.4 billion, which reduced paid-in surplus by $966 million[96] Operational Metrics - Operating expenses for Q4 2024 were$1,627 million, slightly up from $1,563 million in Q4 2023, indicating a rise of 4.1$2,670 million in Q4 2024, compared to $2,455 million in Q4 2023, reflecting a 8.8$11,121 million, up 12.7% from $9,870 million in 2023[24] Foreign Exchange and Risk Management - The company reported a foreign exchange gain of$462 million for the twelve months ended December 31, 2024, compared to a loss of $67 million in 2023[26] - The company had foreign exchange contracts with a notional value of$250 million as of December 31, 2024, compared to $nil in 2023[124] - The unrealized loss on risk management for the twelve months ended December 31, 2024, was$12 million, a significant improvement from a loss of $52 million in 2023[122] Commitments and Future Outlook - As of December 31, 2024, total commitments amount to$27.28 billion, with significant future payments in transportation and storage commitments totaling $24.26 billion[140] - The company has$1.8 billion related to transportation and storage commitments with HMLP, and outstanding letters of credit totaling $355 million[141] - The forward commodity prices for West Texas Intermediate (WTI) crude oil are projected to increase to$79.22 per barrel by 2029, with an average annual increase of 2% thereafter[53]