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

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

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

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Post by retiredcf on Dec 14, 2023 8:51am

RBC

December 14, 2023

Cenovus Energy Inc. Announces 2024 Budget

TSX: CVE | CAD 21.88 | Outperform | Price Target CAD 32.00

Sentiment: Neutral

Cenovus released its 2024 budget which pointed towards broadly in-line upstream mid-point production of 790,000 boe/d and capital spending of $4.75 billion vis-a-vis Street consensus.

Key Points

• Capital expenditures of $4.5-$5.0 billion (including sustaining capital of approximately $3.0 billion) is in line with our estimate of $4.75 billion.

Cenovus expects to invest between $1.5-$2.0 billion in optimization and growth capital in 2024, including progressing the West White Rose project and pursuing incremental growth at Foster Creek, Christina Lake and Sunrise.
In the downstream, anticipates mid-point throughput volumes of 650,000 bbl/d (5% above RBC at 620,100 bbl/d) amid capital investment of $750-$850 million. This includes about $155 million of growth and optimization capital aimed at safety and reliability initiatives across Cenovus’ downstream asset base.
Oil Sands mid-point 2024 production guidance of 600,000 bbl/d (2% above RBC at 589,300 bbl/d) comes amid capital spending of $2.50-$2.75 billion, including $650 million of growth and optimization capital earmarked for advancing brownfield and multi- year growth opportunities to increase production across its oil sands portfolio. For more detail, please see Digging into Thermals with Jason Abbate.
Oil Sands operating costs of $12.00-$14.00/bbl (including $9.00-$10.00/bbl non-energy costs) reflects higher non-energy costs associated with the Christina Lake turnaround.
In the downstream, Cenovus anticipates operating costs of $18.00-$20.00/bbl in its Canadian refining segment during 2024, reflective of higher expensed turnaround costs at the Lloydminster Upgrader. In its US refining business, the company expects operating costs of $11.75-$13.75/bbl, decreasing 17% vis-a-vis the first nine months of 2023.
In regard to Cenovus’ involvement in the Pathways Alliance, the company anticipates forecasted investment of almost $100 million for targeted emissions reduction initiatives. This includes progressing carbon capture projects at the Lloydminster Upgrader and Christina Lake, methane reduction initiatives across its Conventional assets and continuing to improve energy efficiency on its offshore assets.

• The company anticipates G&A expenses (excluding stock-based compensation) of $625-$725 million.
• Cenovus expects cash taxes of between $1.3-$1.6 billion in 2024 (US$75 WTI, US$17 WCS-WTI, US$21 Chicago 3-2-1, 0.73 US $/C$).