Cenovus delivers strong second quarter performance

Planned divestitures and Deep Basin asset integration on track

Calgary, Alberta (July 27, 2017) – Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) had a strong second quarter that reflected 45 days of results from the assets recently acquired from ConocoPhillips. The acquisition gives Cenovus 100% ownership of its oil sands operations and a new production platform in the liquids-rich Deep Basin. Integration of the Deep Basin assets is on track. To further optimize its portfolio and deleverage its balance sheet, the company is pursuing the sale of its legacy conventional oil and natural gas assets, and the sale processes are proceeding well. Cenovus continues to target between $4 billion and $5 billion in announced asset sale agreements during 2017.

Key highlights

  • Increased second quarter adjusted funds flow by 80% to $792 million or $0.71 per share compared with the same period in 2016
  • Increased free funds flow by 128% from the second quarter of 2016 to $465 million
  • Reduced planned 2017 capital spending by approximately $200 million to $1.7 billion at the midpoint, with no expected impact to forecast production volumes

Read the complete news release

Photos

Cenovus’s Christina Lake project in northern Alberta uses steam-assisted gravity drainage (SAGD) technology to produce oil. The process involves drilling into the reservoir and injecting steam at a low pressure to soften the oil so it can be pumped to the surface.
Courtesy Cenovus Energy
Cenovus’s Wolf Lake Natural Gas Plant in the Deep Basin in west central Alberta.
Courtesy Cenovus Energy