Cenovus Energy Inc T.CVE

Next move up?

[oilandgasmick]

Probably in May after the 1st quarter results which should be an absolute blow out. 

Right now the same old skepticism seems to apply to stocks like CVE and SU.

Energy crisis in Europe and a shortage in North America (with declining inventories and possible bottoms up at Cushing) but the same old lukewarm response to the industry on the part of the Biden administration. Yes we desperately need more home produced oil but no we can't have Keystone expansion or fracking on federal leases. No way will they give up the greenie votes even if the price at the pumps quadrupled. Just plain silly and self serving.

The embargo on Russian imports will be felt by May which should also provide some upward momentum. Until then I don't see much upward movement but I hope I am wrong.

[meritmat]

Yup your spot on.  Plus in may they stop paying ConocoPhillips for the extra price per barrel. 

[oilandgasmick]

Can you please remind me that that extra price was because I have long since forgotten.

[meritmat]

They have to pay so much extra if the price of oil goes above a set price.  I can't remember.  I'll see if I can find it 

[meritmat]

Cenovus has also signed a five-year agreement that will see it make additional payments to ConocoPhillips if the average daily price of Western Canadian Select rises above C$52 per barrel. Western Canadian Select averaged C$39.14 per barrel last month, according to the Alberta government.

[JohnSP]

Ends 5 years after COP's sale to CVE on May 17, 2022.

[oilandgasmick]

Thanks for reminding me of some of the details. It is a miracle that CVE survived that disastrous deal courtesy of the "brilliant" Mr. Fergusson. It will go down as one of the worst deals in oil patch history. To take a company that had the best balance sheet in the industry and saddle it with a huge debt load was bad enough but to then add insult to injury by a offering a sweetner