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Cenovus makes strong progress on Husky integration and synergies

Generates $1.1 billion in adjusted funds flow in first quarter 2021

Calgary, Alberta (May 7, 2021) – Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) delivered solid operating and financial performance in the company’s inaugural quarter of operations following the acquisition of Husky Energy Inc. on January 1. With its disciplined and methodical approach to integrating Husky’s assets, the company has made significant progress in the first three months of the year and is firmly on track to deliver on its targeted acquisition synergies and 2021 budget and production guidance. Cenovus produced nearly 770,000 barrels of oil equivalent per day (BOE/d) in the quarter, and generated adjusted funds flow of more than $1.1 billion, cash from operating activities of $228 million, free funds flow of $594 million and net earnings of $220 million.

“With the extensive due diligence we undertook prior to the acquisition of Husky, and our experience since the close of the acquisition, we’re highly confident we’ll deliver at least $1 billion in synergies this year and reach our planned $1.2 billion in annual run-rate synergies by the end of 2021,” said Alex Pourbaix, Cenovus President & Chief Executive Officer. “If the current commodity price environment is sustained, we expect to approach our $10 billion net debt target this year, prior to the benefit of any asset sales.”

Cenovus’s Christina Lake project

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.

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Steam generators at Cenovus’s Foster Creek project in northern Alberta.

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.

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The Rush Lake Thermal Project in Saskatchewan is located east of Lloydminster.

The Rush Lake Thermal Project in Saskatchewan is located east of Lloydminster.

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