Cenovus Energy Inc T.CVE

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

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. Its Downstream segment consists of Canadian Manufacturing, and United States Manufacturing. The Company's upstream operations include oil sands projects in northern Alberta, thermal and conventional crude oil, natural gas and natural gas liquids (NGLs) projects across Western Canada, crude oil production offshore Newfoundland and Labrador and natural gas and NGLs production offshore China and Indonesia. The Company's downstream operations include upgrading and refining operations in Canada and the United States, and commercial fuel operations across Canada.

TSX:CVE - Post by User

Cenovus Energy Inc > RBC

<< Previous

Bullboard Posts

Next >>

Post by retiredcfon May 01, 2024 11:03am

236 Views

Post# 36017294

RBC

May 1, 2024

Cenovus Energy Inc.
1Q First Glance—Boosts Base Dividend 29%

TSX: CVE | CAD 28.28 | Outperform | Price Target CAD 32.00

Sentiment: Positive

Cenovus Energy made further progress on its balance sheet deleveraging journey to $4.0 billion—with net debt of $4.83 billion as of March 31 (vs. RBC at $4.82 billion)—during the first-quarter amid in-line production, 10% lower capital spending and 5% higher AFFO/share vis-a-vis Street consensus. The company boosted its common share base dividend 29% to an annualized rate of $0.72 per share (2.5% yield) and also declared a variable dividend of $0.135 per share to fulfill its first-quarter shareholder returns allocation. Cenovus also modified its shareholder returns framework (see details below).

Conference Call

• Time: 11:00 am ET on Wednesday, May 1 • Dial-In: (888) 664-6383

Key Points

• Cenovus generated $1.2 billion of free funds flow (before dividends) in the quarter with its net debt (company definition) down modestly to $4.83 billion (vs. RBC at $4.82 billion) as of March 31 in part due to a working capital build of about $370 million (vs. RBC with a build of $225 million).

Christina Lake production came in at 236,500 bbl/d (1% below RBC at 239,700 bbl/d), while Foster Creek production came in at 196,000 bbl/d (largely in-line with RBC at 197,000 bbl/d).
Sunrise production volumes were 48,800 bbl/d in the first-quarter (in-line with RBC at 49,000 bbl/d) as the asset continues along its redevelopment plan.
Atlantic Offshore production of 7,200 bbl/d (20% above RBC) reflected the non-operated Terra Nova FPSO vessel resuming operations. Sales volumes was 3,900 bbl/d in the first-quarter, impacted by a timing difference between production and sales due to storage at an onshore terminal.
Refining margin (US + Canadian manufacturing) of $560 million (including $195 million of FIFO gains in the US refining segment vs. RBC at $50 million gain), came in 8% above our $519 million estimate.
Cenovus reported a cash tax expense of $410 million in the first-quarter, slightly above the $370 million factored into our estimates ($0.02 per share impact).
Cenovus returned $436 million of capital to shareholders in the first-quarter.