Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Cenovus Energy Inc T.CVE

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

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

Comment by mrbbon May 31, 2022 3:03pm
271 Views
Post# 34720906

RE:It will be interesting

RE:It will be interesting

the market viewed the news positively.
cve down ~1.3%, SU down ~2.1%, MEG down ~3.5%, WTI down ~1.8%

All prior cost on WWR are sunk down in business accounting and economics, it had been written off by husky and priced in by CVE during the takeover already. Since the project is ~60% completed, cve got a  ~60% price discount  of WWR project compared to starting from scratch PLUS as mentioned by other, ~$1.6 billion decommision liability (in the red) has turned into another 1.6 billion (in the black) in captial saving.  These unanticipated bonuses more than cover the inflation on the completion of the remaining 40% of the project. Ask any oil major in canada today (if not north america), flush with cash, will they propose a brand new multi billion oil project given today's red tape, ESG, anti oil anti pipeline environment. Analogy is CVE is buying a 60% completed beach front house in vancouver with all the permit and approval in place while saving a pending demolition cost. 

divime1 wrote: to see how the market views this news . A few years ago the stock price would jump . Now with everyone wanting dividend increases the prospect of loading up on more debt in this inflationary enviroment may not be what shareholders want .

It will be interesting to see what Nuttall does . CVE is a major holding in both of his funds .

 

<< Previous
Bullboard Posts
Next >>