Bullboard - Stock Discussion Forum Cenovus Energy Inc T.CVE.WT

Primary Symbol: T.CVE Alternate Symbol(s): CNVEF | CVE | T.CVE.PR.A | T.CVE.PR.B | T.CVE.PR.C | T.CVE.PR.E | T.CVE.PR.G | CVE.WS

Energy Oil & Gas Integrated

Cenovus Energy Inc. is a Canada-based integrated energy company. The Company has 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's segments include Upstream, Downstream, and Corporate and Eliminations. Its Upstream segment includes Oil Sands, Conventional, and Offshore.... see more

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TSX:CVE - Post Discussion

Cenovus Energy Inc > RBC Report

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Post by retiredcf on Jul 27, 2023 11:58am

RBC Report

July 27, 2023

Cenovus Energy Inc.
2Q First Glance— In-Line Quarter

TSX: CVE | CAD 23.81 | Outperform | Price Target CAD 27.00

Sentiment: Neutral

From where we sit, Cenovus Energy’s largely in-line second-quarter results are not indicative of the company’s execution capability —which we believe should surface in the second-half of this year. The company reported broadly in-line AFFO/share, capital spending and upstream production vs. Street consensus. Cenovus’ net debt (company definition) stood at $6.4 billion as of June 30. The company also provided updated guidance and announced several organizational changes to its executive team.

Conference Call

• Time: 11:00 am ET on Thursday, July 27 • Dial-In: (888) 664-6383

Key Points

• Cenovus generated $897 million of free funds flow (before dividends) in the quarter with its net debt down around $265 million to $6.4 billion (vs. RBC at $6.5 billion) as of June 30.

Christina Lake production came in at 234,900 bbl/d (vs. RBC at 235,150 bbl/d), while Foster Creek production came in at 167,000 bbl/d (vs. RBC at 163,500 bbl/d), reflecting a planned three-week turnaround completed in the quarter.
Canada gas volumes were 504.3 mmcf/d in the quarter (vs. RBC at 467.5 mmcf/d), reflective of shut-ins due to Alberta wildfires.
The company drew 4,000 boe/d of upstream inventories in the second-quarter.
Refining margin (US + Canadian manufacturing) of $143 million (including a $170 million expense related to processing crude

purchased in prior periods at higher prices and inventory adjustments vs. RBC at $150 million) came in below our $265 million estimate. This included Canadian manufacturing margins of $116 million in the second-quarter and $27 million in the US Manufacturing segment, reflective of the impact of lower sales volumes than production volumes due to inventory build-up at the Lima refinery and a normal lag time expected on sales with the ramp-up of the Toledo and Superior refineries.
Cenovus reported a cash tax expense of $226 million in the second quarter, slightly below the $288 million factored into our estimate ($0.03 per share impact).
The company announced that it has completed the concrete pour at West White Rose on the offshore platform’s conical slip.