Information contained in this Cenovus Energy Inc. website is for information purposes only. The website and the information (including changes to the terms herein) may be changed or updated from time to time without notice. In consideration for using Cenovus Energy Inc.'s website, the visitor agrees to hold Cenovus Energy Inc. and its affiliates and subsidiaries, and their respective directors, officers, employees and agents harmless against any claims for damages or costs or any loss of any kind arising out of the access to or use of this website or any information contained in or obtained through this website. As visitors access this website on a server in Alberta, Canada, the information contained in this website is deemed to be provided in Alberta and is subject to Alberta law and the laws of Canada applicable therein. If you access this website from outside of Canada, you do so at your own risk and are responsible for compliance with local, national or international laws including, without limitation, securities laws and import and export laws.
Disclaimer of Warranties
In addition to the above disclaimers of warranties, Cenovus Energy Inc. hereby expressly disclaims any liability for errors or omissions in the information contained in this website. Information contained in this website does not constitute a solicitation or an offering of securities in any jurisdiction. Information that may be or previously disclosed under corporate securities legislation of Canadian, U.S. or other jurisdictions applicable to Cenovus Energy Inc., e.g. Annual Report, Quarterly Reports, Annual Information Forms or press releases, is not intended in any way to be qualified, amended, modified or supplemented by information available in, through or on this Cenovus Energy Inc. website. Although Cenovus Energy Inc. believes this information to be correct at the time it is posted, Cenovus Energy Inc. does not warrant the accuracy, completeness or currency of this information at all times. All information contained in this website is provided on an as-is and as-available basis without any representations, warranties or endorsements whatsoever.
No warranty of any kind, implied, expressed or statutory, warranty of merchantability and non-infringement of intellectual property rights, third party rights, title, fitness for any particular purpose or freedom from computer viruses or other contaminating or destructive properties is given in conjunction with the information contained in this website.
This website may contain certain forward-looking statements and forward-looking information (collectively referred to as “forward-looking information”) within the meaning of applicable securities legislation, including the United States Private Securities Litigation Reform Act of 1995, about our current expectations, estimates and projections about the future, based on certain assumptions made by us in light of our experience and perception of historical trends. Although we believe that the expectations represented by such forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct.
Forward-looking information contained on this website is identified by words such as “aim”, “anticipate”, “believe”, “can”, “capacity”, “commit”, “commitment”, “committed”, “confident”, “continue”, “could”, “estimate", “expect”, “focus”, “forecast”, “forward”, “future”, “guide”, “implication”, “intend”, “line of sight”, “may”, “on track”, “outlook”, “plan”, “poised”, “position”, “potential”, “priority”, “project”, “pursue”, “should”, “strategy”, “target”, “upside”, “visibility”, “vision”, “will”, “would” or similar expressions and includes suggestions of future outcomes, including statements about: our strategy, business plans and related milestones and schedules, including expected timing for oil sands expansion phases and associated expected production capacities; projections for future years and our plans and strategies to realize such projections; our future development opportunities; forecast operating and financial results; targets for our level of indebtedness in relation to the capitalization and cash generating capacity of Cenovus; planned capital expenditures, including the amount, timing and financing thereof; ability to reduce and maintain reductions to sustaining capital expenditures; expected future production, including the timing, stability or growth thereof; project capacities; our ability to preserve our financial resilience and various plans and strategies with respect thereto; forecast cost savings and sustainability thereof; opportunities to improve reservoir performance; potential for development of emerging assets; expected ability for free funds flow generation by conventional oil and natural gas portfolio with moderate spending, and related ability to invest in growth opportunities; potential drilling opportunities; potential impacts of our hedging program; lender commitments to extend maturities of Cenovus's existing credit facility; our ability to successfully complete planned asset sales, including with desired transaction metrics and on targeted timelines; future access to and implementation of technology, including the development of a steam driven solvent process at our oil sands operations; development or implementation of technologies and their potential impacts on performance; potential for growth and value creation; projected shareholder return; Cenovus’s 2030 climate change and GHG related targets and further ambitions, including our ability to lower GHG emissions on both an absolute basis and in terms of intensity in our operations and in respect of Cenovus's target of reducing GHG emissions intensity by 30% and holding absolute emissions flat by 2030, and its ambition of reaching net-zero emissions by 2050 (which is inherently less certain due to the longer time frame and certain factors outside of our control as outlined in more detail below); Cenovus’s ability to achieve its targets and ambitions while maintaining a low-cost structure and focus on free funds flow and growing shareholder returns and its options and opportunities to achieve such targets and ambitions; our ability to maintain low steam to oil ratios; our expectations regarding emissions compliance costs; Cenovus's plans with respect to continued Indigenous engagement, including its target to spend $1.5 billion with Indigenous owned or operated businesses over the next 10 years and the expected benefits to neighbouring communities; Cenovus’s plans with respect to land restoration, including its commitment to reclaim 1,500 decommissioned well sites over the next 10 years; strategy and related milestones and schedules as they relate to our four ESG focus areas; references to Cenovus's 2030 ESG targets and commitments and further ambitions, including the areas of focus which Cenovus will take to achieve such targets, commitments and ambitions and the impacts of working towards such targets, commitments and ambitions; the opportunities related to setting and achieving targets, commitments and ambitions for ESG focus areas; the capital costs associated with achieving the ESG focus area targets, commitments and ambitions; our ability to remain financially resilient, create value for shareholders and thrive in a lower-carbon future; laws and government policy, including those relating to climate change, and the impact thereof; effective risk management; and our expectations regarding emissions compliance costs. Readers are cautioned not to place undue reliance on forward-looking information as our actual results may differ materially from those expressed or implied.
Developing forward-looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to Cenovus and others that apply to the industry generally. The factors or assumptions on which the forward-looking information is based include:
In general, and in respect of our targets, commitments, ambitions, strategy and related milestones and schedules as they relate to our four ESG focus areas, we have assumed: continuing collaboration with certain regulatory and environmental groups; the accuracy of reserves and resources estimates; commodity prices; demand levels for oil, natural gas, gasoline, diesel and other energy sources; the availability of transportation for our products; certain levels of future energy use and consumption of oil and gas; Cenovus’s carbon price outlook; the performance of assets and equipment; cost reductions and sustainability improvements position for resiliency at bottom of the cycle commodity prices of about US$45/bbl WTI and C$44/bbl WCS; applicable laws and government policies, including royalty rates, and laws and policies relating to climate change; future production rates; the sufficiency of budgeted capital expenditures in carrying out planned activities; Cenovus's ability to successfully pursue NPV-positive capital investment opportunities and other operational measures, including the successful application to Cenovus's current and future operations of existing technology and new technology that is expected to be commercial in the near term; Cenovus's ability to otherwise access and implement all technology necessary to achieve our 2030 targets, the development and performance of technology and technological innovations and the future use and development of technology and associated expected future results; Cenovus’s ability to, either internally or by working with external partners, develop cost effective technologies to reduce freshwater use and/or reduce overall steam requirements; the accuracy of third-party data upon which we rely; the availability and cost of labour and services; the availability of Indigenous-owned or operated businesses; forecast oil and natural gas prices and other assumptions inherent in Cenovus’s guidance as provided from time to time, available at cenovus.com; our projected capital investment levels, the flexibility of our capital spending plans and the associated source of funding; the achievement of further cost reductions and sustainability thereof; expected condensate prices; estimates of quantities of oil, bitumen, natural gas and liquids from properties and other sources not currently classified as proved; the receipt, in a timely manner, of regulatory and partner approvals, as applicable; the successful and timely implementation of capital projects or stages thereof; our ability to generate sufficient funds flow to meet current and future obligations; estimated abandonment and reclamation costs, including associated levies and regulations applicable thereto; our ability to obtain and retain qualified staff and equipment in a timely and cost-efficient manner; our ability to access sufficient capital to pursue sustainability and development plans; our ability to successfully complete the planned asset sales, including with desired transaction metrics and on targeted timelines; forecast crude oil and natural gas prices, forecast inflation and other assumptions inherent in our guidance; our projected capital investment levels, the flexibility of capital spending plans and the associated sources of funding; sustainability of achieved cost reductions, achievement of future cost reductions and sustainability thereof; estimates of quantities of oil, bitumen, natural gas and NGLs from properties and other sources not currently classified as proved; our ability to access and implement all technology necessary to efficiently and effectively operate our assets and achieve and sustain cost reductions; and other risks and uncertainties described from time to time in the filings we make with securities regulatory authorities.
In respect of our 2030 GHG targets, we have assumed: Cenovus's ability to successfully pursue NPV-positive capital investment opportunities and other operational measures, including the successful application to Cenovus's current and future operations of existing technology and new technology that is expected to be commercial in the near term; the successful implementation of our proposed or potential strategies and plans to reduce emissions; projected capital investment levels, the flexibility of our capital spending plans and the associated source of funding; and Cenovus's ability to otherwise access and implement all technology necessary to achieve our 2030 GHG targets, the development and performance of technology and technological innovations and the future use and development of technology and associated expected future results.
In respect of our 2050 net-zero GHG ambition, we have assumed the same factors as in respect of our 2030 GHG targets applied over a longer term and will also rely on certain other factors and events coming to fruition, which are, to a large extent, outside of our control and thus less certain than those assumptions and factors that relate solely to our 2030 GHG targets, which includes continued development of commercial feasible carbon capture, utilization and storage (CCUS) technology and its future economic viability in Alberta; additional infrastructure to be built by industry or government sources to support CCUS and other technologies; and collaboration with partners to fund R&D into cost improvements and novel approaches to carbon capture.
Unless otherwise specifically stated or the context dictates otherwise, the financial outlook and forward-looking metrics on our website, in addition to the generally applicable assumptions described above, do not include or account for the effects or impacts of planned asset sales.
The risk factors and uncertainties that could cause our actual results to differ materially, include: (i) impediments generally to our business and in respect of Cenovus meeting its targets, commitments, ambitions, strategy and related milestones and schedules as they relate to our four ESG focus areas and the other forward looking information on our website, including: possible failure to successfully complete planned asset sales, including with desired transaction metrics and on targeted timelines; ability to develop, access or implement some or all of the technology necessary to efficiently and effectively achieve expected future results, including on a commercial scale, operate our assets and achieve and sustain future cost reductions; volatility of and other assumptions regarding commodity prices; the effectiveness of our risk management program, including the impact of derivative financial instruments, the success of our hedging strategies and the sufficiency of our liquidity position; the accuracy of cost estimates; commodity prices, currency and interest rates; possible lack of alignment of realized WCS prices and WCS prices as calculated under the contingent payment arrangement between Cenovus and a subsidiary of ConocoPhillips; product supply and demand; market competition, including from alternative energy sources; risks inherent in our marketing operations, including credit risks; exposure to counterparties and partners, including ability and willingness of such parties to satisfy contractual obligations in a timely manner; risks inherent in the operation of our crude-by-rail terminal, including health, safety and environmental risks; maintaining desirable ratios of indebtedness to capitalization and to our capacity to generate cash; ability to access various sources of debt and equity capital, generally, and on terms acceptable to Cenovus; ability to finance growth and sustaining capital expenditures; changes in credit ratings applicable to Cenovus or any of its securities; changes to dividend plans or strategy; accuracy of reserves, resources, future production and future net revenue estimates; ability to replace and expand oil and gas reserves; ability to maintain relationships with Cenovus's partners and to successfully manage and operate its integrated business; reliability of assets including in order to meet production targets; potential disruption or unexpected technical difficulties in developing new products and manufacturing processes; the occurrence of unexpected events such as fires, severe weather conditions, explosions, blow-outs, equipment failures, transportation incidents and other accidents or similar events; refining and marketing margins; inflationary pressures on operating costs, including labour, natural gas and other energy sources used in oil sands processes; potential failure of products to achieve or maintain market acceptance; risks associated with fossil fuel industry reputation, including among stakeholders and government, and litigation related thereto; the inability to receive necessary regulatory approvals in a timely manner; maintenance of key relationships with government and other regulatory bodies; increasing stakeholder consideration of ESG factors and risks, including among credit rating agencies, lenders and investors, which may impact Cenovus's ability to access capital required to finance growth and sustaining capital expenditures; unexpected cost increases or technical difficulties in constructing or modifying manufacturing or refining facilities; unexpected difficulties in producing, transporting or refining of crude oil into petroleum and chemical products; risks associated with technology and its application to our business; risks associated with climate change and our assumptions relating thereto; the timing and the costs of well and pipeline construction; ability to secure adequate and cost-effective product transportation including sufficient pipeline, crude-by-rail, marine or alternate transportation, including to address any gaps caused by constraints in the pipeline system; availability of, and our ability to attract and retain, critical talent; our possible failure to obtain and retain qualified staff and equipment in a timely and cost-efficient manner; changes in labour relationships; changes in the regulatory framework in any of the locations in which we operate, including changes to the regulatory approval process and land-use designations, royalty, tax, environmental, greenhouse gas, carbon, climate change and other laws or regulations, or changes to the interpretation of such laws and regulations, as adopted or proposed, the impact thereof and the costs associated with compliance; the expected impact and timing of various accounting pronouncements, rule changes and standards on our business, its financial results and its consolidated financial statements; changes in general economic, market and business conditions; the political and economic conditions in the countries in which we operate or supply; occurrence of unexpected events such as war, terrorist threats and the instability resulting therefrom; and risks associated with existing and potential future lawsuits and regulatory actions against Cenovus; and (ii) impediments to Cenovus meeting its 2030 climate and GHG emissions targets and further ambitions, including: the effects of the implementation of cogeneration and potential increases in our steam-to-oil ratio on our overall emissions; Cenovus's ability to develop, access or implement some or all of the technology necessary to efficiently and effectively operate assets and achieve expected future results, including in respect of climate and GHG emissions targets and ambitions, the commercial viability and scalability of emission reduction strategies and related technology and products; the development and execution of implementing strategies to meet climate and GHG emissions targets and ambitions, including uncertainty over solvent supply and transportation, reservoir performance and capital spending estimates; uncertainty regarding the status of offsets, including due to cogeneration and renewable energy generation, recognition under future government policies and by ESG rating organizations and the measurability of offsets to count as emissions reductions; and uncertainty in respect of CCUS regarding the eligibility of the credit generating pathways and the volatility of the price-signal in the credit market and the durability of the related policy through government changes.
In addition, there are risks that the effect of actions taken by us in implementing targets, commitments and ambitions for ESG focus areas may have a negative impact on our existing business, growth plans and future results from operations.
Readers are cautioned that the foregoing lists are not exhaustive and are made as at the date hereof. Events or circumstances could cause our actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking information. For a full discussion of Cenovus's material risk factors, see “Risk Management and Risk Factors” in our most recently filed annual Management’s Discussion and Analysis (MD&A) or Form 40-F and the updates under "Risk Management" in the company's most recently filed quarterly MD&A available on SEDAR at sedar.com, on EDGAR at sec.gov and on Cenovus's website at cenovus.com.
Cenovus Disclosure Policies
Cenovus's disclosure of reserves data and other oil and gas information is made in reliance on an exemption granted to Cenovus by Canadian securities regulatory authorities which permits it to provide such disclosure in accordance with U.S. disclosure requirements. The information provided by Cenovus may differ from the corresponding information prepared in accordance with Canadian disclosure standards under National Instrument 51-101 (NI 51-101). The reserves quantities disclosed in these websites represent net proved reserves calculated using the standards contained in Regulation S-X of the U.S. Securities and Exchange Commission. Further information about the differences between the U.S. requirements and the NI 51-101 requirements is set forth under the heading "Note Regarding Reserves Data and Other Oil and Gas Information" in Appendix "F" (Information Concerning Cenovus Post-Arrangement) of Encana Corporation's Information Circular relating to an Arrangement Involving Cenovus Energy Inc. dated October 20, 2009.
Certain crude oil and natural gas liquids ("NGLs") volumes that have been converted to millions of cubic feet equivalent ("MMcfe") or thousands of cubic feet equivalent ("Mcfe") on the basis of one barrel ("bbl") to six thousand cubic feet ("Mcf"). Also, certain natural gas volumes have been converted to barrels of oil equivalent ("BOE"), thousands of BOE ("MBOE") or millions of BOE ("MMBOE") on the same basis. MMcfe, Mcfe, BOE, MBOE and MMBOE may be misleading, particularly if used in isolation. A conversion ratio of one bbl to six Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not necessarily represent value equivalency at the well head.
Cenovus uses the terms resource play and estimated ultimate recovery, total petroleum initially-in-place, natural gas-in-place, crude oil-in-place, natural bitumen-in-place. Resource play is a term used by Cenovus to describe an accumulation of hydrocarbons known to exist over a large areal expanse and/or thick vertical section, which when compared to a conventional play, typically has a lower geological and/or commercial development risk and lower average decline rate. Total petroleum initially-in-place ("PIIP") is defined by the Society of Petroleum Engineers - Petroleum Resources Management System ("SPE-PRMS") as that quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production plus those estimated quantities in accumulations yet to be discovered (equivalent to "total resources"). Natural gas-in-place ("NGIP"), crude oil-in-place ("COIP") and natural bitumen-in-place ("NBIP") are defined in the same manner, with the substitution of "natural gas", "crude oil" and "natural bitumen" where appropriate for the word "petroleum". As used by Cenovus, estimated ultimate recovery ("EUR") has the meaning set out jointly by the Society of Petroleum Engineers and World Petroleum Congress in the year 2000, being those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from an accumulation, plus those quantities already produced therefrom.
In this website, Cenovus has provided information with respect to certain of its Key Resource Plays and emerging opportunities which is "analogous information" as defined in NI 51-101. This analogous information includes estimates of PIIP, NGIP, COIP or NBIP and/or EUR, all as defined in the Canadian Oil & Gas Evaluation Handbook ("COGEH") or by the SPE-PRMS, and/or production type curves. This analogous information is presented on a basin, sub-basin or area basis utilizing data derived from Cenovus's internal sources, as well as from a variety of publicly available information sources which are predominantly independent in nature. Some of this data may not have been prepared by qualified reserves evaluators or auditors and the preparation of any estimates may not be in strict accordance with COGEH. Regardless, estimates by engineering and geo-technical practitioners may vary and the differences may be significant. Cenovus believes that the provision of this analogous information is relevant to Cenovus's oil and gas activities, given its acreage position and operations (either ongoing or planned) in the areas in question.
A recovery project cannot be defined for stated volumes of discovered natural bitumen initially-in-place, natural gas initially-in-place or crude oil initially-in-place at this time. There is no certainty that it will be commercially viable to produce any portion of these resources.
Exclusion of Liability
In no event shall Cenovus Energy Inc. be liable for any damages, including without limitation, direct or indirect, special, incidental or consequential damages, loss of profits, opportunities or information arising in connection with the Cenovus Energy Inc. website or with any linked website even if Cenovus Energy Inc. is made aware of the possibility of such damages, losses, claims or expenses.
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