Cenovus Energy Inc T.CVE

Asset impairments

[soundandfury]

Go up and down with commodity price..........for example a refinery is worth alot more when oil prices are low then when oil is high........just like oil reserves are always changing value from year to year.........one year they are down next year they may be up........my point is asset impairments can be reversed and are a fluid kind of value

[RagingBull3]

That's why I'm surpised that such a large impairment booked when oil price ~$90 !!!!   I was even expecting Write-UPS!   A Negative way of looking at this is if this is all BS then "CASH FLOW" isn't really that Great.... $500 million more than it really should be, given your example. All just my opinion/view/thinking

[oilandgasmick]

Yes, reserves are written down and then added back in as the price of oil flutctuates. A definition of reserves is "oil that can be economically recovered" so as the price of oil drops the reserves are written down. They always do this at the bottom of the cycle because you want to get all the bad news out of the way all at once. Then, when the new cycle begins and the price of oil

[PabloLafortune]

Husky's book value for refining assets was $10.6B in 2018. If you think CVE could get that for Husky's refining assets today, I have a _________ to sell you.  In case of doubt, just go look at what Shell got for their Martinez refinery and their Deer Park refinery.