At Cenovus, we’re committed to developing our resources responsibly and safely. We apply fresh, progressive thinking to create value by responsibly providing energy the world wants. And we take great pride in what we do and how we do it.
Our strategy is to increase cash flows through disciplined production growth from our vast portfolio of oil sands and Deep Basin natural gas and liquids assets in Western Canada. We are focused on maximizing shareholder value through cost leadership and realizing the best margins for our products to help us maintain financial resilience and deliver sustainable dividend growth.
We plan to achieve our strategy by drawing on the expertise of our people and leveraging our strategic differentiators: premium asset quality, executional excellence, focused innovation, value-added integration and trusted reputation.
In March of 2017, we reached an agreement to purchase ConocoPhillips' 50 percent share of our FCCL oil sands projects in northern Alberta as well as most of their Deep Basin conventional assets in western Alberta and British Columbia. This acquisition provides Cenovus with two attractive growth platforms. We’re focused on creating value by developing our vast portfolio of 100 percent-owned oil sands assets using a drilling method called steam-assisted gravity drainage. Our long-term oil sands development opportunities are complemented by our short-cycle, high-return potential liquids-rich natural gas opportunities in the Deep Basin. Concurrent with our acquisition and integration of the ConocoPhillips assets, Cenovus put its legacy conventional oil and natural gas assets in northern and southern Alberta and Saskatchewan up for sale. Cenovus also has 100 percent operated ownership in a crude-by-rail terminal located in Alberta and 50 percent non-operated ownership in two U.S. refineries.
Having both upstream and downstream operations helps us mitigate the impact of volatility in light-heavy crude oil differentials. Being involved in various steps of the value chain helps our bottom line by allowing us to capture value from the production of oil through to the output of finished products like transportation fuels.
Cenovus shares trade on the Toronto and New York stock exchanges under the symbol CVE. We’re based in Calgary, Alberta and in 2016, had about 3,500 staff members across our operations.
2016 quick facts:
- Oil production: about 206,000 barrels/day net
- Natural gas production: about 400 million cubic feet/day
- Refining throughput: 444,000 barrels/day gross
- Capital expenditures: about $1 billion
- Adjusted funds flow: about $1.4 billion
- Revenues: about $12.1 billion
Our value chain
Our operations involve activities across the full value chain to develop, produce and market crude oil and natural gas in Canada.
See below for descriptions on each segment of our value chain.
|Value chain segment||Activities||Scope of CR report|
|Unlock and develop||We undertake seismic and exploratory drilling programs to identify the value and location of reserves and inform our business and development plans.||We report on activities for which we are the operator.|
|Execution (construction)||We undertake stakeholder consultation and design work to obtain regulatory approvals that permit development of our facilities. Once an approval is obtained, construction and commissioning of new facilities, well pads, wells and on-lease pipelines are permitted. We also plan for abandonment and reclamation costs and requirements.||We report on activities for which we are the operator.|
|Production and operations||We extract the oil or natural gas resource, process it and then transport it to a third party (i.e. pipeline operator). Once a project has reached the end of its life, we remove equipment from the site and undertake reclamation and remediation activities.||We report on activities for which we are the operator.|
|Marketing and transportation||Our marketing activities are focused on ensuring safe and efficient transport to the nearest market hub and on maximizing the value we receive for our products using Cenovus’s portfolio of market access assets and capabilities (i.e. pipe, rail, waterborne and storage). Cenovus’s marketing team works closely with upstream teams to ensure adequate capabilities are in place to mitigate risks from unplanned outages related to assets or transportation logistics.||We report on activities related to our Bruderheim crude-by-rail terminal which we operate. We do not report on activities for pipelines which we do not operate.|
|Refining and upgrading||Refining converts crude oil into usable products such as gasoline or petroleum by-products. We have 50 percent ownership in two U.S. refineries – Wood River, located in Roxana, Illinois, and Borger, located in Borger, Texas – that are jointly owned and operated by Phillips 66. Ownership in these two refineries reduces the risk of price fluctuations in the oil market by allowing us to capture value from the production of oil through to the output of finished products, such as gasoline, diesel and jet fuel.||We do not report on refineries as we are not the operator.|
Buyers of our product are located all around the world. This includes end use fuel products such as gasoline, diesel or jet fuel, as well as products made from petro-chemicals.
|We report on activities we undertake that are aimed at reducing emissions from the end use of oil.|