Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) is further increasing
shareholder returns on the strength of its balance sheet and
ongoing reliability of its operating performance. The company’s
Board of Directors has approved tripling the base dividend starting
with the second quarter of 2022, as well as a plan for additional
increases to shareholder returns. Beyond the base dividend
increase, Cenovus will target to return 50% of quarterly excess
free funds flow to shareholders when reported net debt is less than
$9 billion. The company will do this through share buybacks and/or
variable dividends while also continuing to pay down the balance
sheet. Cenovus has adopted an ultimate net debt target of $4
billion. When reported net debt is at the $4 billion floor, Cenovus
will target to return 100% of that quarter's excess free funds
flow to shareholders through share buybacks and/or variable
dividends.
“We have consistently delivered on our commitments to our
shareholders,” said Alex Pourbaix, Cenovus President & Chief
Executive Officer. “After rapidly deleveraging our balance sheet,
we are now able to provide a much clearer picture of how we will
position Cenovus for the longer term – as a leader in delivering
total shareholder returns.”
First-quarter results highlights
- Total upstream production of approximately 800,000 barrels of
oil equivalent per day (BOE/d)1.
- Total downstream throughput of 502,000 barrels per day
(bbls/d).
- $1.4 billion cash from operating activities, $2.6 billion
adjusted funds flow, $1.8 billion of free funds flow.
- Total long-term debt of $11.7
billion and net debt of $8.4 billion as at March 31, 2022.
Financial, production & throughput
summary |
(For the period ended March 31) |
2022 Q1 |
2021 Q4 |
|
% change |
2021 Q1 |
% change |
Financial ($ millions, except per share
amounts) |
Cash from operating activities |
1,365 |
2,184 |
|
(38) |
228 |
499 |
Adjusted funds flow2 |
2,583 |
1,948 |
|
33 |
1,141 |
126 |
Per share (basic)2 |
1.30 |
0.97 |
|
|
0.57 |
|
Capital investment |
746 |
835 |
|
(11) |
547 |
36 |
Free funds flow2 |
1,837 |
1,113 |
|
65 |
594 |
209 |
Net earnings (loss) |
1,625 |
(408) |
|
|
220 |
639 |
Per share (basic) |
0.81 |
(0.21) |
|
|
0.10 |
|
Long-term debt |
11,744 |
12,385 |
|
(5) |
13,947 |
(16) |
Net debt |
8,407 |
9,591 |
|
(12) |
13,340 |
(37) |
Production and throughput (before royalties, net to
Cenovus) |
Oil and NGLs (bbls/d)1 |
654,500 |
678,300 |
|
(4) |
620,100 |
6 |
Conventional natural gas
(MMcf/d) |
865 |
884 |
|
(2) |
895 |
(3) |
Total upstream
production (BOE/d)1 |
798,600 |
825,300 |
|
(3) |
769,300 |
4 |
Total downstream
throughput (bbls/d) |
501,800 |
469,900 |
|
7 |
469,100 |
7 |
1 See Advisory for production by product type. 2 Non-GAAP
financial measure or contains a non-GAAP financial measure. See
Advisory.
2022 capital budget and guidance updateTo
reflect significant changes in the commodity pricing environment as
well as the disposition of the Tucker and Wembley assets in the
first quarter, Cenovus has updated its 2022 corporate guidance. It
is available on Cenovus’s website under Investors.
Changes to 2022 guidance include a $300 million increase to
total capital expenditures for the year to an updated range of $2.9
billion to $3.3 billion, entirely related to an increase in
projected capital spend to complete the Superior Refinery rebuild
in 2022. The rebuild is now expected to cost a total of about
US$1.2 billion, up from approximately US$950 million due to several
factors, including higher labour costs, COVID-19 pandemic-related
expenses, inflation and supply chain constraints. As a result,
expected 2022 capital spend for the Superior rebuild has increased
to between C$500 million and C$550 million.
The 2022 guidance changes also include increases to expected
unit operating expenses across the Upstream business, reflecting
impacts of anticipated continued strength in the outlook for
natural gas prices. At the same time, higher gas prices are
expected to drive improved realized pricing in Cenovus’s
Conventional business, with this offset reflected in the company’s
relatively low overall sensitivity to AECO natural gas prices. The
guidance range for expected cash taxes for the year has increased
to between $1.4 billion and $1.7 billion, reflecting higher
commodity price assumptions.
Shareholder returns plan and capital allocation
frameworkThe company has further defined its capital
allocation framework to ensure continued balance sheet strength and
increased clarity around delivering returns to shareholders across
price environments.
Capital allocation
frameworkMaintaining a strong balance sheet with
the resilience to withstand price volatility and capitalize on
opportunities throughout the commodity cycle is a key element of
Cenovus’s capital allocation framework. As such, up to 50% of
excess free funds flow will continue to be allocated towards
reducing net debt until Cenovus reaches its net debt floor of $4
billion, which represents approximately one times net debt to
adjusted funds flow at about US$45 West Texas Intermediate
(WTI).
Excess free funds flow will be calculated as free funds
flow:
- minus base dividends paid on common
shares in the quarter,
- minus dividends paid on preferred
shares in the quarter,
- minus other uses of cash (including
decommissioning liabilities and principal repayment of leases) in
the quarter,
- minus any acquisition costs from
acquisition activities closing in the quarter,
- plus any proceeds from divestiture
activities closing in the quarter.
Cenovus will continue to maintain capital discipline, with the
five-year business plan outlined at the company’s Investor Day in
December 2021 remaining in place and instrumental to growing
shareholder returns. The company will also continue to ensure the
business is appropriately funded and reinvestment in the business
will continue to be evaluated under the company’s existing capital
framework.
Shareholder returns Beginning with the second
quarter of 2022, the base dividend will increase from $0.14 per
share to $0.42 per share annually, and will continue to be declared
and paid quarterly, at the discretion of the Board. The base
dividend continues to be a structural component of the financial
framework and is set at a level that Cenovus is confident can be
sustainably covered at bottom of the cycle pricing of about US$45
WTI, with ample room to grow over the next five years.
Based on the capital allocation framework described above, in
addition to base dividends Cenovus plans to deliver incremental
shareholder returns as follows:
- When quarter-end net debt is less than $9 billion, the company
will target to deliver to shareholders 50% of that quarter’s
excess free funds flow in the form of share buybacks and/or
variable dividends.
- When quarter-end net debt is at the $4 billion floor, the
company will target to deliver to shareholders 100% of that
quarter’s excess free funds flow in the form of share buybacks
and/or variable dividends.
- Share buybacks will be the preferred mechanism and will
continue to be executed opportunistically, driven by return
thresholds. Where the value of share buybacks in a quarter is less
than the targeted value of returns, the remainder will be delivered
through variable dividends paid in the following quarter. Where the
value of share buybacks in a quarter is greater than the targeted
value of returns, no variable dividend will be paid for that
quarter.
Any variable dividends will be paid to shareholders on a
quarterly basis, one month following the declaration date. This
shareholder returns framework will start with the second quarter of
2022.
First-quarter resultsIn the first quarter of
2022, Cenovus continued to deliver strong operating and financial
results, driven by the company’s top-tier asset base, the safe and
reliable performance of its facilities, the company’s low cost
structure and the rise in benchmark commodity prices.
Operating results1Cenovus’s
total revenues in the first quarter increased to $16.2 billion from
$13.7 billion in the previous quarter, driven by higher average
realized sales prices for the company’s products across the
Upstream and Downstream businesses. Total operating margin3 was
$3.5 billion, compared with $2.6 billion in the fourth quarter.
Upstream first-quarter revenues were $9.7 billion, compared with
$7.4 billion in the previous quarter. Upstream operating margin4
was more than $2.9 billion, compared with about $2.6 billion in the
fourth quarter, with the difference driven by higher realized sales
prices and sales volumes, and, as condensate prices continued to
rise through the first quarter, the ability to process condensate
purchased earlier in the quarter. Downstream revenues were $8.2
billion in the quarter, compared with $8.1 billion in the fourth
quarter of 2021. Downstream operating margin4 was up, to $544
million in the first quarter from $42 million in the fourth
quarter, with the difference due to U.S. Manufacturing operating
margin of $423 million in the quarter compared to an operating
margin shortfall of $97 million for that segment in the fourth
quarter of 2021.
__________________________________3 Non-GAAP financial measure.
Total operating margin is the total of Upstream operating margin
plus Downstream operating margin. See Advisory.4 Specified
financial measure. See Advisory.
Cenovus produced nearly 800,000 BOE/d in the first quarter, in
line with fourth-quarter production of just over 825,000 BOE/d
after adjusting for the January 31 sale of the company’s Tucker oil
sands asset. Christina Lake production continued to increase,
reaching 254,100 bbls/d in the quarter from 250,900 bbls/d in the
previous quarter as the company’s ongoing redrill and redevelopment
program brought new volumes online. Foster Creek production of
197,900 bbls/d in the first quarter, compared with 211,800 bbls/d
in the fourth quarter, reflected expected reductions in volumes
from new wells brought on in late 2021 and was in line with the
company’s full-year production guidance for 2022. At the
Lloydminster thermal projects, first-quarter production was in line
with the previous quarter, and the 10,000 bbls/d Spruce Lake North
facility remains on track for start-up later this
year. Conventional production was 125,000 BOE/d in the
quarter, down from 133,000 BOE/d in the fourth quarter, with the
difference reflecting the disposition of the Wembley assets in the
first quarter. Offshore production was 76,400 BOE/d in the first
quarter compared with 73,100 BOE/d in the fourth quarter.
The Canadian Manufacturing segment had crude utilization of 89%
and throughput of 98,100 bbls/d, compared with 98% and 108,300
bbls/d in the fourth quarter. The decreased throughput was mainly
due to ramping down activity in preparation for planned maintenance
in April at the Lloydminster Upgrader, as well as an unplanned
outage in March. The Lloydminster Refinery continued to deliver
reliable performance during the first quarter and will undergo a
turnaround following maintenance at the Upgrader. Canadian
Manufacturing had first-quarter operating margin of $114 million
compared with $131 million in the fourth quarter due to the lower
throughput.
In the U.S. Manufacturing segment, crude utilization of 80% and
throughput of 403,700 bbls/d were both up from 72% and 361,600
bbls/d in the fourth quarter of 2021 when there was a planned
turnaround at the Lima Refinery. The increase in throughput from
the previous quarter, combined with strategic optimization
activities, higher sales volumes and rising market crack spreads,
drove a significantly improved operating margin of $423 million in
the first quarter compared with an operating margin shortfall of
$97 million in the fourth quarter. The significant improvement in
operating margin from the previous quarter was somewhat offset by
the impact of turnaround activity that commenced in March at the
Wood River and Borger refineries, and the Lima Refinery running at
less than full rates through January following the turnaround, as
well as a reduced slate of refined products in February. The Lima
Refinery returned to normal operations in March, positioning it for
continued growth for the rest of the year.
The turnaround activity underway at the Wood River and Borger
refineries is expected to be completed in the middle of the second
quarter. A scheduled turnaround at the Toledo Refinery began in
mid-April. After the second quarter, Cenovus expects to have
completed most of its planned major maintenance this year,
positioning the company for even stronger operational momentum in
the second half of the year. Further information on Cenovus’s
significant planned maintenance activity in 2022 is provided below
under 2022 planned maintenance.
Financial resultsCash from operating activities
was $1.4 billion and adjusted funds flow was $2.6 billion in the
quarter. Free funds flow of more than $1.8 billion included capital
investment of $746 million, primarily to sustain production and
throughput levels and continue work on the Superior Refinery
rebuild project. Long-term debt was reduced to $11.7 billion as at
March 31, 2022, down from $12.4 billion at the end of the fourth
quarter of 2021. Net debt was reduced to $8.4 billion as at March
31, 2022, down nearly $1.2 billion from December 31, 2021, and the
company expects to reach its interim net debt target of below $8
billion imminently. A build in non-cash working capital of $1.2
billion, mainly attributable to an increase in accounts receivable
and the impact of higher commodity prices on product inventory,
affected the extent of debt reduction in the quarter.
Cash flows were impacted in the first quarter by a previously
announced realized risk management loss of $974 million related to
Cenovus’s risk management program. With the significant
deleveraging of its balance sheet over the past year and its strong
liquidity position, Cenovus announced on April 4, 2022 that its
crude oil sales price risk management activities related to WTI are
no longer required to support financial resilience by providing
increased cash flow certainty. The company expects to close the
bulk of its outstanding WTI price risk management positions related
to crude oil sales over the next month and anticipates no
significant financial exposure to WTI sales price risk management
contracts beyond the second quarter of 2022.
Cenovus closed the sale of its Tucker asset in the Oil Sands
segment for net proceeds of $730 million and its Wembley assets in
the Conventional business for net proceeds of approximately $220
million in the quarter. The previously announced $420 million sale
of the company’s retail fuels network continues to progress through
regulatory approvals, with an anticipated close in the third
quarter of 2022.
Cenovus recorded net earnings of $1.6 billion in the first
quarter, compared with a net loss of $408 million in the fourth
quarter. The difference in net earnings was primarily due to
fourth-quarter earnings being impacted by an impairment of $1.9
billion recorded at December 31, 2021, as well as increased
operating margin, higher gains on asset divestitures and income of
$269 million from Superior rebuild insurance proceeds in the first
quarter, as well as lower general and administrative costs
partially offset by unrealized risk management losses and a higher
re-measurement loss on the contingent payment in the first
quarter.
2022 planned maintenanceThe following table
provides details on planned turnaround activities at Cenovus assets
in 2022 and anticipated production or throughput impacts. These
planned turnarounds were already reflected in Cenovus’s original
2022 Corporate Guidance announced in December 2021 and remain
reflected in the updated guidance.
2022 Planned maintenance |
Potential quarterly production/throughput impact
(Mbbls/d) |
|
Q2 |
Q3 |
Q4 |
Upstream |
Foster Creek |
|
11 - 14 |
5 - 8 |
Christina Lake |
14 - 17 |
|
|
Lloydminster Thermals |
2 - 3 |
1 - 2 |
|
Downstream |
Lloydminster Upgrader |
9 - 14 |
|
|
Lloydminster Refinery |
11 - 16 |
|
|
U.S. Manufacturing |
60 - 70 |
20 - 25 |
10 - 15 |
Dividend declarations and share purchasesGiven
the strength of Cenovus’s balance sheet, the Board has declared a
dividend of $0.105 per share, payable on June 30, 2022 to common
shareholders of record as of June 15, 2022.
The Board also declared a second-quarter dividend on each of the
Cumulative Redeemable First Preferred Shares – Series 1, Series 2,
Series 3, Series 5 and Series 7 – payable on June 30, 2022 to
shareholders of record as of June 15, 2022 as follows:
Preferred shares dividend summary |
|
Rate (%) |
Amount ($/share) |
Share series |
Series 1 |
2.577 |
0.16106 |
Series 2 |
2.348 |
0.14635 |
Series 3 |
4.689 |
0.29306 |
Series 5 |
4.591 |
0.28694 |
Series 7 |
3.935 |
0.24594 |
All dividends paid on Cenovus’s common and preferred shares will
be designated as “eligible dividends” for Canadian federal income
tax purposes. Declaration of dividends is at the sole discretion of
the Board and will continue to be evaluated on a quarterly
basis.
Cenovus continues to execute share purchases under its ongoing
normal course issuer bid (NCIB) program, approved in the fourth
quarter of 2021, which allows the company to purchase up to 146.5
million of its common shares. As of April 26, 2022, Cenovus has
purchased approximately 58 million common shares, delivering over
$1 billion in returns to shareholders under its NCIB to date.
SustainabilityCenovus plans to release its 2021
environmental, social and governance (ESG) report mid-year,
providing more details about how the company expects to achieve the
targets for its five ESG focus areas: climate & greenhouse gas
(GHG) emissions, water stewardship, biodiversity, Indigenous
reconciliation and inclusion & diversity.
The Oil Sands Pathways to Net Zero Alliance, jointly founded by
Cenovus, continued work on its foundational carbon capture,
utilization and storage project. Discussions are ongoing with the
federal government to determine how the recently announced
investment tax credit for carbon capture projects will be
implemented. Based on the Pathways Alliance’s initial assessment,
the tax credit is a positive step in the Alliance’s efforts to work
collaboratively with governments to help Canada achieve its climate
goals and ensure the country can be the world’s preferred supplier
of responsibly produced oil. The Alliance is also progressing work
to assess the feasibility of multiple other GHG-reducing
technologies.
In addition, Cenovus is progressing work on three new carbon
capture and storage projects at the Lloydminster Upgrader,
Minnedosa Ethanol Plant and Elmworth gas plant, which are outlined
in the company’s five-year plan and expected to be operating in the
next five years.
Conference call
today9 a.m. Mountain Time (11 a.m. Eastern
Time)Cenovus will host a conference call today, April 27,
2022, starting at 9 a.m. MT (11 a.m. ET). To participate, please
dial 888-204-4368 (toll-free in North America) or 647-794-4605
approximately 10 minutes prior to the conference call. A live audio
webcast of the conference call will also be available. The webcast
will be archived for approximately 90 days. 1 p.m. Mountain
Time (3 p.m. Eastern Time)Cenovus will host its Annual
Meeting of Shareholders today, April 27, 2022, in a virtual format
beginning at 1 p.m. MT (3 p.m. ET). The webcast link to the
Shareholders Meeting will be available under Presentations and
Events in the Investors section of cenovus.com. |
AdvisoryBasis
of PresentationCenovus reports
financial results in Canadian dollars and presents production
volumes on a net to Cenovus before royalties basis, unless
otherwise stated. Cenovus prepares its financial statements in
accordance with International Financial Reporting Standards
(IFRS).
Barrels of Oil
EquivalentNatural gas volumes have been
converted to barrels of oil equivalent (BOE) on the basis of six
thousand cubic feet (Mcf) to one barrel (bbl). BOE 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
represent value equivalency at the wellhead. Given that the value
ratio based on the current price of crude oil compared with natural
gas is significantly different from the energy equivalency
conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is
not an accurate reflection of value.
Product types
Product type by operating segment |
|
Three months ended March 31,
2022 |
Oil Sands |
Bitumen (Mbbls/d) |
578.8 |
Heavy crude oil (Mbbls/d) |
16.2 |
Conventional natural gas (MMcf/d) |
12.8 |
Total Oil Sands segment production (BOE/d) |
597.0 |
Conventional |
Light crude oil (Mbbls/d) |
8.2 |
Natural gas liquids (Mbbls/d) |
24.5 |
Conventional natural gas (MMcf/d) |
555.0 |
Total Conventional segment production (BOE/d) |
125.2 |
Offshore |
Light crude oil (Mbbls/d) |
13.7 |
Natural gas liquids (Mbbls/d) |
13.1 |
Conventional natural gas (MMcf/d) |
297.5 |
Total Offshore segment production (BOE/d) |
76.4 |
Total upstream production (BOE/d) |
798.6 |
Forward‐looking
InformationThis news release contains certain
forward‐looking statements and forward‐looking information
(collectively referred to as “forward‐looking information”) within
the meaning of applicable securities legislation, including the
U.S. Private Securities Litigation Reform Act of 1995, about
Cenovus’s current expectations, estimates and projections about the
future of the company, based on certain assumptions made in light
of experiences and perceptions of historical trends. Although
Cenovus believes 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 in this document is identified by
words such as “achieve”, “anticipate”, “commit”, “continue”,
“deliver”, “expect”, “focus”, “positioned”, “target”, and “will” or
similar expressions and includes suggestions of future outcomes,
including, but not limited to, statements about: general and 2022
priorities; allocation of excess free funds flow to shareholder
returns and net debt reduction; net debt, long-term debt and
maintaining the net debt floor; timing of the Superior rebuild;
timing of planned maintenance turnarounds and throughput impact;
closing outstanding WTI price risk management positions; closing of
the retail fuels network sale; upstream production, downstream
operations and performance; maintaining capital discipline while
growing total shareholder returns beyond the base dividend through
share buybacks under the NCIB and variable dividends; ESG focus
areas and targets, including GHG emissions reductions through the
Oilsands Pathways to Net Zero Alliance; and progressing
GHG-reducing technologies, including carbon capture and storage
projects.
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 in this news release are
based include, but are not limited to: the allocation of free funds
flow to reducing net debt to between $9 billion and $4 billion;
compliance costs, commodity prices, inflation and supply chain
constraints; Cenovus’s ability to produce on an unconstrained
basis; Cenovus’s ability to access sufficient insurance coverage to
pursue development plans; Cenovus’s ability to deliver safe and
reliable operations and demonstrate strong governance; and the
assumptions inherent in Cenovus’s updated 2022 Guidance available
on cenovus.com.
The risk factors and uncertainties that could cause actual
results to differ materially from the forward‐looking information
in this news release include, but are not limited to: the accuracy
of estimates regarding commodity prices, operating and capital
costs and currency and interest rates; risks inherent in the
operation of Cenovus’s business; ability to successfully complete
development plans and improve asset performance; and risks
associated with climate change and Cenovus’s assumptions relating
thereto.
Except as required by applicable securities laws, Cenovus
disclaims any intention or obligation to publicly update or revise
any forward‐looking statements, whether as a result of new
information, future events or otherwise. Readers are cautioned that
the foregoing lists are not exhaustive and are made as at the date
hereof. Events or circumstances could cause actual results to
differ materially from those estimated or projected and expressed
in, or implied by, the forward‐looking information. For additional
information regarding Cenovus’s material risk factors, the
assumptions made, and risks and uncertainties which could cause
actual results to differ from the anticipated results, refer to
“Risk Management and Risk Factors” and “Advisory” in
Cenovus’s Management’s Discussion and Analysis
(MD&A) for the periods ended December 31, 2021 and March
31, 2022, and to the risk factors, assumptions and uncertainties
described in other documents Cenovus files from time to time with
securities regulatory authorities in Canada (available on SEDAR at
sedar.com, on EDGAR at sec.gov and Cenovus’s website at
cenovus.com).
SPECIFIED FINANCIAL MEASURES This news release
contains references to certain specified financial measures that do
not have standardized meanings prescribed by IFRS. Readers should
not consider these measures in isolation or as a substitute for
analysis of the company’s results as reported under IFRS. These
measures are defined differently by different companies and,
therefore, might not be comparable to similar measures presented by
other issuers. For information on the composition of these
measures, as well as an explanation of how the company uses these
measures, refer to the Specified Financial Measures Advisory
located in our MD&A for the period ended March 31, 2022,
(available on SEDAR at sedar.com, on EDGAR at sec.gov and on
Cenovus's website at cenovus.com) which is incorporated by
reference into this news release.
Upstream Operating Margin and Downstream
Operating Margin
Upstream Operating Margin and Downstream Operating Margin, and
the individual components thereof, are included in Note 1 to the
interim Consolidated Financial Statements.
Total Operating Margin
Total Operating Margin is the total of Upstream Operating Margin
plus Downstream Operating Margin.
|
Upstream |
|
Downstream |
|
Total |
Three Months Ended ($ millions) |
March 31, 2022 (1) |
|
December 31, 2021 (2) |
|
March 31, 2022 (1) |
|
December 31, 2021 (2) |
|
March 31, 2022 |
|
December 31, 2021 |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Gross Sales |
10,897 |
|
8,237 |
|
8,247 |
|
8,135 |
|
19,144 |
|
16,372 |
Less: Royalties |
1,185 |
|
815 |
|
- |
|
- |
|
1,185 |
|
815 |
|
9,712 |
|
7,422 |
|
8,247 |
|
8,135 |
|
17,959 |
|
15,557 |
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Purchased Product |
2,089 |
|
1,410 |
|
6,946 |
|
7,348 |
|
9,035 |
|
8,758 |
Transportation and Blending |
2,923 |
|
2,387 |
|
2 |
|
- |
|
2,925 |
|
2,387 |
Operating |
909 |
|
865 |
|
645 |
|
689 |
|
1,554 |
|
1,554 |
Realized (Gain) Loss on Risk Management |
871 |
|
202 |
|
110 |
|
56 |
|
981 |
|
258 |
Operating
Margin |
2,920 |
|
2,558 |
|
544 |
|
42 |
|
3,464 |
|
2,600 |
(1) Found in Note 1 of the March 31, 2022,
interim Consolidated Financial Statements.(2) Found in Note 1
of the December 31, 2021, interim Consolidated Financial
Statements.
Adjusted Funds Flow and Free Funds
Flow
The following table provides a reconciliation of cash from (used
in) operating activities found in our Consolidated Financial
Statements to Adjusted Funds Flow and Free Funds Flow. Adjusted
Funds Flow per share is calculated by dividing Adjusted Funds Flow
by the weighted average number of common shares outstanding during
the period and may be useful to evaluate a company’s ability to
generate cash.
Three Months Ended ($ millions) |
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
Cash From (Used in) Operating Activities (1) |
|
|
1,365 |
|
|
2,184 |
|
|
228 |
|
(Add) Deduct: |
|
|
|
|
|
|
|
Settlement of Decommissioning Liabilities |
|
|
(19 |
) |
|
(35 |
) |
|
(11 |
) |
Net Change in Non-Cash Working Capital |
|
|
(1,199 |
) |
|
271 |
|
|
(902 |
) |
Adjusted Funds
Flow |
|
|
2,583 |
|
|
1,948 |
|
|
1,141 |
|
Capital Investment |
|
|
746 |
|
|
835 |
|
|
547 |
|
Free Funds
Flow |
|
|
1,837 |
|
|
1,113 |
|
|
594 |
|
(1) Found in the March 31, 2022, or
December 31, 2021, interim Consolidated Financial Statements.
Cenovus Energy Inc.
Cenovus Energy Inc. is an integrated energy company with oil and
natural gas production operations in Canada and the Asia Pacific
region, and upgrading, refining and marketing operations in Canada
and the United States. The company is focused on managing its
assets in a safe, innovative and cost-efficient manner, integrating
environmental, social and governance considerations into its
business plans. Cenovus common shares and warrants are listed on
the Toronto and New York stock exchanges, and the company’s
preferred shares are listed on the Toronto Stock Exchange. For more
information, visit cenovus.com.
Find Cenovus on Facebook, Twitter, LinkedIn, YouTube and
Instagram.
Cenovus contacts
Investors |
Media |
Investor Relations general
line403-766-7711 |
Media Relations general
line403-766-7751 |
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