Cenovus Energy Maintained at Buy at TPH as Q4 Results Top Expectations; Price Target Kept at C$30.00
09:40 AM EST, 02/15/2024 (MT Newswires) -- Tudor, Pickering, Holt on Thursday reiterated its buy rating on the shares of Cenovus Energy (CVE.TO, CVE) and its C$30.00 price target after the oil producer and refiner released better than expected fourth-quarter results.
"Positive. Adjusted funds flow beat expectations (as did cash conversion aided by a working capital) and supported in-line shareholder returns, with upstream offsetting downstream financial results. For the quarter, adjusted funds flow per share of C$1.09 came in better vs. TPHe/Street C$1.02/C$1.01 on lighter-than-expected cash taxes, with an operating margin shortfall in combined downstream (-C$300MM vs. TPHe -C$117MM; inclusive of ~C$430MM in FIFO headwinds and non-cash refined products and crude inventory write downs) more than offseting an operating margin beat in combined upstream (C$2.46B vs. TPHe C$2.43B). Operationally, 613mbpd Oil Sands production was in-line with consensus (TPHe/Survey 612mbpd), while combined downstream throughput of 579mbpd fell short of expectations (TPHe/Street 604/620)," analyst Jeoffrey Lambujon wrote.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 22.56, Change: +0.59, Percent Change: +2.69
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