Cenovus delivers strong second quarter

Record operating results; solid financial performance

Calgary, Alberta (July 26, 2018) – Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) achieved record production and delivered solid financial performance in the second quarter of 2018. The company had adjusted funds flow of $774 million, even after a realized risk management loss of $697 million, and generated free funds flow of $482 million. Cenovus ramped up its oil sands operations in the second quarter and achieved record high production volumes and record low per-barrel oil sands operating costs after using the dynamic storage capability of its reservoirs to strategically slow oil sands production in the first quarter due to market conditions. Following major planned turnarounds in the first quarter, Cenovus’s Refining and Marketing segment also performed very well.

Second quarter highlights

  • Adjusted funds flow of $0.63 per share compared with a shortfall of $0.03 per share in the first quarter of 2018. Adjusted funds flow was $0.67 per share in the second quarter of 2017.
  • Cash from operating activities of $533 million, compared with a shortfall of $123 million in the first quarter of 2018. Cash from operating activities was $1.2 billion in the second quarter of 2017.
  • Oil sands production of almost 390,000 barrels per day (bbls/d), 49% higher than the same period of 2017, and record low oil sands operating costs of $7.32/bbl
  • Refining and marketing operating margin of $357 million, compared with $20 million in the second quarter of 2017
  • Corporate hedge positions reduced to 37% of forecast liquids production for the rest of 2018

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