Market MoversYes it's a lousy market today but given this write-up, I'm surprised that the SP is down at all. GLTA
Cenovus Energy Inc. slid after it posted a more than 15-per-cent rise in its second-quarter profit on Thursday, as the oil and gas producer got a boost from higher crude prices, refining throughput volumes and production.
Brent crude averaged at US$85.58 per barrel in the second quarter, 7 per cent higher than the year earlier, buoyed by an extension of a production cut by OPEC+, forecast of strong travel demand and interest rate cuts by the U.S. Federal Reserve.
Calgary’s Cenovus raised its total upstream production forecast for the year by 7,500 barrels of oil equivalent per day (boepd) at the midpoint. It now expects output to be between 785,000 boepd and 810,000 boepd for 2024.
Its quarterly production rose nearly 10 per cent to 800,800 boepd, while downstream throughput climbed nearly 16 per cent to 622,700 barrels per day (bpd).
Cenovus CEO Jon McKenzie said the company is now in a position to substantially increase shareholder returns.
Beginning in the third quarter, Cenovus will begin returning 100 per cent of excess free funds flow to shareholders.
For full-year 2024, the company raised its downstream throughput projection to 640,000 bpd to 670,000 bpd, an increase of 5,000 bpd from its previous forecast at midpoint.
Net income rose to $1-billion, or 53 cents per share, in the April-June quarter, from $866-million, or 44 cents per share, a year earlier.