Cenovus Energy Inc T.CVE

No significant hedges so higher prices move right to results

[Margin321]

Don't forget that Cenovus made decision to end hedging in April 2022 after their disastrous one quarter near billion dollar (970 million)  hedging losses in Q1 2022. . They have less than 10 mm barrels a day hedged for blending operations but really minimal. So the increase in oil price will show up in financial performance very quickly.

That is very different than Ovintiv which jumped right back in and has 80% of production hedged at max of $84 through Q2 2024. That is still a great high margin price for OVV, but they will show some hedging losses. That difference is one reason I favor CVE over OVV for new money going to energy sector.

[autofocus111]

OVV where are you getting 80%? Per the Q2 report I see only ~50% of oil and condensate production hedged.

[ztransforms173]

- they do NOT NEED to hedge as they have LARGE DOWNSTREAM REFINING operations that can CAPTURE the FULL BARREL VALUE - H2/2023 will be a GREAT SECOND HALF  for Cenovus Energy as their refineies PULL THEIR FULL WEIGHT and GENERATE SUBSTANTIAL OPERATING MARGINS as the UPSTREAM properties GO ON CRUISE CONTROL - CVE is TURNING INTO a MONSTER CASH FLOW MACHINE with WTI is hitting USD 90 per

[Margin321]

That was my point. At this particular time point it is very good to get full impact of the higher oil prices. That cash shold help them reduce debt to $4 B quicker and start off on the promised path of bigger shareholder returns.