Cenovus delivers strong first quarter operational performance

Financial results impacted by hedging and price differentials

Calgary, Alberta (April 25, 2018) – Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) had continued strong operational performance from its oil sands projects and Deep Basin natural gas assets in the first quarter of 2018. The company’s quarterly financial results were impacted by risk management losses, wider light-heavy oil differentials and planned refinery maintenance. As previously announced, Cenovus responded to the wider price differentials and transportation constraints by temporarily slowing oil sands production in February and March and storing excess barrels in its reservoirs. The company ramped oil sands production back up to normal levels after Western Canadian Select (WCS) prices improved. Cenovus also made good progress with its drilling program in the Deep Basin in the quarter.

First quarter highlights

  • Oil sands volumes nearly doubled compared with the same period a year earlier as a result of Cenovus’s May 2017 asset acquisition
  • Deep Basin unit operating costs decreased 18% from the third quarter of 2017, Cenovus’s first full quarter of ownership of the assets
  • Oil sands unit operating costs declined slightly from the first quarter of 2017
  • Major planned turnarounds at the Wood River and Borger refineries were carried out over several weeks during the quarter and were completed in April
  • The company incurred realized risk management losses of $469 million

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
Steam generators at Cenovus’s Foster Creek project in northern Alberta. The project uses a process called steam-assisted gravity drainage (SAGD) to produce oil, which 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