RE:RE:RE:Earnings this weekThanks for replies, longest position = CVE.TO.
Also RBC's Update with COO Jon McKenzie on Jun 29, 2021, Lttle dated but some good stuff: https://www.rbcinsight.com/WM/ResearchViewer/1924-611858-1/1654?docType=PDF&
Link may not work, so my summary:
1) "the company is on-track to achieve its interim target (Net Debt CAD10 bln) via organic free cash flow generation in the third or fourth-quarters of 2021" "Achievement of Cenovus’ interim net debt target opens the door to incremental flexibility and shareholder returns. This could include a normal course issuer bid aimed at mopping-up the ongoing disposition of Conoco’s 10.3% stake (208 million shares) in Cenovus (2Q 2021- end 2022)."
2) "Non-core asset dispositions could accelerate the pace at which Cenovus’ balance sheet deleverages" "The company mentioned that it is quite advanced on several (undisclosed) non-core dispositions, and still could potentially see hundreds of millions of proceeds in 2021."
3) "At current levels, Cenovus is trading at a discount debt- adjusted cash flow multiple of 3.8x (vs. our global integrated peer group avg. of 4.9x) in 2021, and an elevated free cash flow yield of 21% (vs. our peer group avg. of 15%)" "As a point of reference, our net asset value for Cenovus sits at $20.32 per share (under a long-term WTI price of US$55)."
4) "In our eyes, there is no company in our coverage group undergoing as favorable a rate of change as Cenovus."
5) Several synergies with Husky Assets.
6) "It would not surprise us to see Cenovus realign its downstream refining footprint over time away from 50% non-operated interests, which provide synthetic integration, towards complexes where it also has influence over pipelines and storage."