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Bullboard - Stock Discussion Forum 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.... see more

TSX:CVE - Post Discussion

Cenovus Energy Inc > Q2 Adj Funds Flow Forecast Ballpark Estimate - Revisited
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Post by JohnSP on Jul 09, 2021 3:58pm

Q2 Adj Funds Flow Forecast Ballpark Estimate - Revisited

Latest CVE Corp presentation forecasts CAD13.3 bln net debt end Q1 declining to ~CAD10 bln by 2021 year end (page 6), ie declining by CAD1.1 bln per quarter, and that sensitivity to WTI is USD1 = CAD250 in Adjusted Funds Flow (page 13).

For these forecasts the assumption for WTI is USD46.50 (page 17) and the slide pack also references the MD&A (Management’s Discussion and Analysis) notes as filed on Sedar.com, which also says Assumption is WTI46.50 at bottom of page 39 (can't link directly to that file, go to Sedar.com > Search > Company > Cenovus and date May 7, 2021).

WTI started Q2 at USD60 and ended Q2 at USD75, with a fairly straight line inbetween, so average USD67.50, USD21.0 above CVE's assumption for forecasts.

21 x CAD250mln = CAD5.25bln annualized > CAD1.3 extra Adj Free Cash Fiow bln for Q2.

CVE's forecast net debt for end Q2 is CAD13.3 - 1.1 = 12.2 bln, if all the extra Adj FCF is applied to debt, we exit Q2 at CAD10.9 bln, almost 6 months ahead of schedule.

Rough calculation, but Q2 results later in July should be spectacular.
Comment by TopStockBuy on Jul 10, 2021 12:16pm
I think your bang on with your predictions...we'll soon find out.  Good DD OPEC is a sideshow.  The existing deal is good till April 2022.  UAE doesn't have the barrels to move the market long term.   Demand currently outstrips supply and I think it will get worse once airline and cruise travel picks up towards year end.  Latest EIA report shows a 6+ million ...more  
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