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Cenovus positioned for $11 billion of cumulative free funds flow through 2024

Company increases dividend by 25%

Calgary, Alberta (October 2, 2019) – Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) today announced its updated corporate strategy and five-year business plan. Building on the company’s excellent financial performance in the first half of 2019, Cenovus’s strategy through 2024 will focus on sustainably growing shareholder returns and further reducing net debt. The five-year business plan allows for disciplined production growth at Cenovus’s best-in-class oil sands assets, subject to improved market access, and provides potential for cumulative free funds flow of approximately $11 billion at mid-cycle West Texas Intermediate (WTI) prices averaging between US$57 and US$60 per barrel (bbl). In addition, Cenovus has reduced its 2019 capital budget guidance to between $1.1 billion and $1.2 billion, a $150 million reduction from the midpoint of the company’s April 23, 2019 guidance. 

“Our updated business plan is focused on maximizing the value of every barrel we produce,” said Alex Pourbaix, Cenovus President & Chief Executive Officer. “With the tremendous improvements we’ve made to our cost structure and balance sheet over the past few years, I’m confident we are in a strong position to generate significant value for shareholders through 2024 and beyond.”

Key highlights of the five-year business plan

  • Cumulative free funds flow of approximately $11 billion through 2024
  • Disciplined compound production growth of 2% to 3% per year, increasing total volumes to approximately 550,000 barrels of oil equivalent per day (BOE/d) by the end of 2024
  • 25% dividend increase for the fourth quarter of 2019
  • After achieving the company’s $5 billion net debt target, potential for approximately $9 billion in remaining free funds flow to finance opportunistic share repurchases, further dividend growth, additional debt reduction and disciplined investments