Cenovus Energy Inc T.CVE

Pre-Q3 Analyst Notes Published

[JohnSP]

Link: https://mc-ced23ebb-4707-4c95-9c94-3171-cdn-endpoint.azureedge.net/-/media/Project/WWW/docs/investors/2022/CVE-Q3-2022-analyst-preview-note.pdf?rev=2bfb49f28cc84baba5326e93478c67c3&sc_lang=en&hash=A8705BC60358261DB3BB8A253DFB0FBB

[Cabarete1]

Nothing new in there

[Quintessential1]

Maybe not new but certainly more relevant given the recent fire. • “Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE), through its U.S. operating business, has reached an agreement to purchase bp’s 50% interest in the bp-Husky Toledo Refinery in Ohio. Cenovus has owned the other 50% of the refinery since its combination with Husky Energy in 2021. Cenovus’s U.S. operating business will assume

[Cabarete1]

good point. i would imagine that BP / their insurance will have to pay for the repair, wonder if BP will have to lower the cost to satifsy lost production.  

[JohnSP]

Yep adjustments will be made, more interestingly, the fire will give BP more impetous to leave the refinery business, and there is a pipeline Connector from Cdn Trans Mountain Pipeline to BP's Cherry Point Refinery in Washington State, should be good synergy there for CVE.

[Cabarete1]

Wouldn't that be great - if BP wants to give away more refiery production, I'm sure CVE would jump at it.

[Quintessential1]

It would be great for CVE to lock up their upstream heavy oil production into their own downstream heavy oil processing given the WTI-WCS spread and crack spreads right now. The value added is incredible. GLTA Longs

[Quintessential1]

I would think think that BP will have to pony up half of everything lost not covered by insurance.   Only half as a partner is a partner, operating or not and is liable for their portion of costs. I could be wrong about that part. I just think asjustments to the deal will be forthcoming and in CVE's favour hopefully mitigating part of the loss from the fire. GLTA