Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) continued to deliver
strong operational performance across the portfolio in the fourth
quarter of 2023. The company's upstream assets performed
exceptionally well, achieving the second-highest quarterly
production rates in Cenovus’s history. In its downstream business,
the company continued to build operating momentum at its
wholly-owned refineries. Upstream and downstream results were
negatively impacted by a rapid decline in commodity prices and
refinery crack spreads in the quarter. This was compounded by the
cost of processing crude oil in the downstream that was purchased
in prior periods at higher prices.
“As expected, upstream operating performance was excellent
through the final months of the year. This period also marked the
second full quarter that our full suite of operated refining assets
were available to us and I am very pleased with our progress,” said
Jon McKenzie, Cenovus President & Chief Executive Officer.
“With the work done in 2023, we are well positioned to continue
capturing more margin across our businesses.”
Fourth-quarter and year-end highlights
- Achieved a strong upstream exit rate in 2023, with fourth
quarter average production of 809,000 barrels of oil equivalent per
day (BOE/d)1.
- Returned a total of $731 million to shareholders in the fourth
quarter, including the payment of the remaining warrant purchase
liability. In 2023, returned $2.8 billion to shareholders,
including $1.1 billion through share buybacks, $1.0 billion through
common and preferred share dividends and $711 million on the
purchase and cancellation of common share warrants.
- Reduced net debt by $916 million in the fourth quarter, to $5.1
billion. Long-term debt, including the current portion, was $7.1
billion at the end of the fourth quarter, a reduction of $1.6
billion compared with year-end 2022, and reflects the continued
strengthening of our capital structure with the repurchase of US$1
billion of long-term debt in 2023.
Financial, production & throughput
summary |
For the period ended December 31 |
2023 Q4 |
2023 Q3 |
2022 Q4 |
2023 FY |
2022 FY |
|
Financial ($ millions, except per share
amounts) |
Cash from (used in) operating activities |
2,946 |
2,738 |
2,970 |
7,388 |
11,403 |
Adjusted funds flow2 |
2,062 |
3,447 |
2,346 |
8,803 |
10,978 |
Per share (diluted)2 |
1.09 |
1.81 |
1.19 |
4.57 |
5.47 |
Capital investment |
1,170 |
1,025 |
1,274 |
4,298 |
3,708 |
Free funds flow2 |
892 |
2,422 |
1,072 |
4,505 |
7,270 |
Excess free funds flow2 |
471 |
1,989 |
786 |
|
|
Net earnings (loss) |
743 |
1,864 |
784 |
4,109 |
6,450 |
Per share (diluted) |
0.39 |
0.97 |
0.39 |
2.12 |
3.20 |
Long-term debt, including current portion |
7,108 |
7,224 |
8,691 |
7,108 |
8,691 |
Net debt |
5,060 |
5,976 |
4,282 |
5,060 |
4,282 |
|
Production and throughput (before royalties, net to
Cenovus) |
Oil and NGLs (bbls/d)1 |
662,600 |
652,400 |
664,900 |
640,000 |
641,900 |
Conventional natural gas (MMcf/d) |
876.3 |
867.4 |
852.0 |
832.6 |
866.1 |
Total upstream production (BOE/d)1 |
808,600 |
797,000 |
806,900 |
778,700 |
786,200 |
Total downstream throughput (bbls/d) |
579,100 |
664,300 |
473,300 |
560,400 |
493,700 |
1 See Advisory for production by product type.2 Non-GAAP
financial measure or contains a non-GAAP financial measure. See
Advisory.
Fourth-quarter results
Operating
results1
Cenovus’s total revenues were approximately $13.1 billion in the
fourth quarter of 2023, down from $14.6 billion in the third
quarter. Upstream revenues were about $6.9 billion, a decrease from
$7.6 billion in the previous quarter, while downstream revenues
were approximately $8.4 billion, compared with $9.7 billion in the
third quarter of 2023. Total operating margin3 was about $2.2
billion, compared with $4.4 billion in the third quarter. Upstream
operating margin4 was approximately $2.5 billion, a decrease from
$3.4 billion in the previous quarter, primarily driven by a wider
light-heavy differential and lower Brent and West Texas
Intermediate (WTI) crude oil prices. Cenovus had a downstream
operating margin4 shortfall of $304 million, compared with an
operating margin of $922 million in the third quarter. Operating
margin in U.S. Refining was impacted by approximately $430 million
comprising first-in, first-out (FIFO) losses and a non-cash
write-down of refined product and crude oil inventory.
Total upstream production was 808,600 BOE/d in the fourth
quarter, an increase of approximately 12,000 barrels per day
(bbls/d) from the third quarter, as the company progressed the
start-up of new oil sands well pads and the Terra Nova field
returned to production in November. Foster Creek volumes increased
to 198,800 bbls/d, from 189,300 bbls/d in the third quarter and
Christina Lake production was 239,600 bbls/d, in line with the
third quarter. Sunrise produced 50,100 bbls/d and continued to show
strong results from its redevelopment program. At the Lloydminster
thermal projects, production of 106,600 bbls/d was in line with the
prior quarter. Overall, Oil Sands operating costs per barrel were
$10.96, a reduction of 13% from the third quarter of 2023,
reflecting higher sales volumes and lower natural gas prices.
Production in the Conventional segment was 123,800 BOE/d in the
fourth quarter, a decrease from 127,200 BOE/d in the third quarter.
Cenovus experienced higher production rates from certain wells in
the third quarter following shut-ins that occurred in the second
quarter of 2023 due to the Alberta wildfires.
In the Offshore segment, production was 70,200 BOE/d compared
with 66,400 BOE/d in the third quarter. In Asia Pacific, sales
volumes increased in the fourth quarter, reflecting production from
the MAC field in Indonesia that began in the third quarter of 2023.
In the Atlantic region, production was 9,700 bbls/d compared with
8,900 bbls/d in the prior quarter as the non-operated Terra Nova
floating production, storage and offloading (FPSO) vessel resumed
production offshore Newfoundland and Labrador.
Crude throughput in the Canadian Refining segment was 100,300
bbls/d in the fourth quarter, compared with crude throughput of
108,400 bbls/d in the third quarter. Throughput was reduced
primarily due to an unplanned outage at the Lloydminster Upgrader
in October, which returned to full rates in November.
In U.S. Refining, crude throughput was 478,800 bbls/d in the
fourth quarter, compared with crude throughput of 555,900 bbls/d in
the third quarter. Throughput was reduced primarily due to planned
turnaround activity at the non-operated Borger Refinery and an
unplanned outage delaying the start-up of the refinery
post-turnaround. The Lima Refinery also underwent planned
maintenance in the fourth quarter and a temporary unplanned outage.
In response to the exceptionally weak refined products pricing
environment in December, the company took the opportunity to
economically optimize throughput across its refining network.
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.
Financial results
Fourth-quarter cash from operating activities, which includes
changes in non-cash working capital, was about $2.9 billion,
compared with $2.7 billion in the third quarter of 2023. Adjusted
funds flow was approximately $2.1 billion, compared with $3.4
billion in the prior period and free funds flow was $892 million, a
decrease from $2.4 billion in the third quarter. Fourth-quarter
financial results were impacted by lower refined product pricing in
the U.S. and lower price realizations in the Oil Sands segment,
driven by wider light-heavy crude oil differentials. The December
2023 average Chicago 3-2-1 crack was US$7.65 per barrel, the lowest
monthly average since 2020.
Net earnings in the fourth quarter were $743 million, compared
with $1.9 billion in the previous quarter. The decrease in net
earnings was primarily due to lower operating margin, which
includes a non-cash write-down of $89 million in refined product
inventory and crude oil inventory as a result of lower market
pricing anticipated in the first quarter of 2024. These factors
were partially offset by lower income taxes, lower general and
administrative expenses due to lower long-term incentive costs and
an unrealized foreign exchange gain compared with an unrealized
loss in the third quarter.
Long-term debt, including the current portion, was reduced to
$7.1 billion at December 31, 2023 compared with $7.2 billion at
September 30, 2023 and $8.7 billion at December 31, 2022, mainly as
a result of the company’s purchase of US$1.0 billion of outstanding
notes in the third quarter of 2023. Net debt was approximately $5.1
billion at December 31, 2023, a decrease from $6.0 billion at
September 30, 2023, primarily due to a draw in non-cash working
capital in the quarter as a result of decreasing commodity prices
and a volumetric draw of product in inventory as well as free funds
flow of $892 million offset by shareholder returns of $731 million.
Cenovus continues to make progress towards its net debt target of
$4.0 billion.
Capital investment of $1.2 billion in the fourth quarter was
primarily directed towards sustaining production in the Oil Sands
segment, tie-ins and infrastructure projects in the Conventional
business and sustaining activities in the Downstream segments. In
addition, the company continues to progress its growth and
optimization projects, including the West White Rose project, the
tie-back of Narrows Lake to Christina Lake and Sunrise and Foster
Creek optimizations.
Full-year results
In 2023, Cenovus’s total upstream production averaged 778,700
BOE/d, compared with 786,200 BOE/d in 2022, which reflects the
impact of wildfire activity in Alberta in the second quarter of
2023 as well as the timing of sustaining well pads in the Oil Sands
segment. Oil Sands crude oil production was 593,400 bbls/d,
including 186,300 bbls/d at Foster Creek and 237,400 bbls/d at
Christina Lake. Full-year production from the Lloydminster thermal
projects was 104,100 bbls/d compared with 99,900 bbls/d in 2022,
reflecting a full year of production from the company’s Spruce Lake
North facility. Production from Sunrise was 48,900 bbls/d compared
with 31,300 bbls/d in 2022, with the increase largely driven by the
acquisition of the remaining 50% working interest in Sunrise, which
closed in August 2022. Conventional production was 119,900 BOE/d
compared with 127,200 BOE/d in 2022, with the decrease mainly
related to the wildfire activity in Alberta in 2023. Offshore total
production was 63,400 BOE/d, compared with 70,300 BOE/d in the
prior year, reflecting lower production from the Atlantic region
primarily due to turnaround work in 2023 and the unplanned outage
in China in the second quarter of 2023.
U.S. Refining crude oil throughput increased to 459,700 bbls/d
in 2023 compared with 400,800 bbls/d in 2022, reflecting the
acquisition of the remaining 50% working interest in the Toledo
Refinery and the restart of the Superior Refinery in 2023. In
addition, 2022 throughput was impacted by higher levels of planned
and unplanned maintenance.
Total revenues were about $52.2 billion in 2023 and total
operating margin was $11.0 billion compared with revenues of
$66.9 billion and total operating margin of $14.3 billion
in 2022. Year-over-year decreases in both total revenues and total
operating margin were largely related to lower commodity
prices.
Cash from operating activities was $7.4 billion for 2023
compared with $11.4 billion in 2022. Adjusted funds flow was
$8.8 billion and free funds flow was $4.5 billion. Total
capital investment for 2023 was $4.3 billion, primarily
concentrated on sustaining production at the company’s upstream
assets, the construction of the West White Rose project and
refining reliability initiatives. Full-year net earnings for 2023
were about $4.1 billion compared with $6.5 billion in
2022, primarily due to lower commodity prices.
Reserves
Cenovus’s proved and probable reserves are evaluated each year
by independent qualified reserves evaluators. At the end of 2023,
Cenovus’s total proved and total proved plus probable reserves were
approximately 5.9 billion BOE and 8.7 billion BOE
respectively, relatively unchanged compared to the prior year.
Total proved and total proved plus probable bitumen reserves were
approximately 5.4 billion barrels and approximately
7.9 billion barrels respectively, both relatively unchanged
compared to the prior year. At year-end 2023, Cenovus had a proved
reserves life index of approximately 21 years and a proved plus
probable reserves life index of approximately 31 years.
More details about Cenovus’s reserves and other oil and gas
information are available in the Advisory and the Management’s
Discussion & Analysis (MD&A), Annual Information Form (AIF)
and Annual Report on Form 40-F for the year ended December 31,
2023, available on SEDAR+ at sedarplus.ca, EDGAR at sec.gov and
Cenovus’s website at cenovus.com.
Cenovus year-end disclosure documents
Today, Cenovus is filing its audited Consolidated Financial
Statements, MD&A and AIF with Canadian securities regulatory
authorities. The company is also filing its Annual Report on Form
40-F for the year ended December 31, 2023 with the U.S. Securities
and Exchange Commission. Copies of these documents will be
available on SEDAR+ at sedarplus.ca, EDGAR at sec.gov and the
company's website at cenovus.com under Investors. They can also be
requested free of charge by emailing
investor.relations@cenovus.com.
Dividend declarations and share purchases
The Board of Directors has declared a quarterly base dividend of
$0.14 per common share, payable on March 28, 2024, to shareholders
of record as of March 15, 2024. In addition, the Board has declared
a quarterly dividend on each of the Cumulative Redeemable First
Preferred Shares – Series 1, Series 2, Series 3, Series 5 and
Series 7 – payable on April 1, 2024, to shareholders of record as
of March 15, 2024 as follows:
Preferred shares dividend summary |
Share series |
Rate (%) |
Amount ($/share) |
Series 1 |
2.577 |
0.16106 |
Series 2 |
6.772 |
0.42094 |
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’s shareholder returns framework has a target of
returning 50% of excess free funds flow to shareholders for
quarters where the ending net debt is between $9.0 billion and $4.0
billion. In the fourth quarter, the company returned $731 million
to shareholders, composed of $111 million for the remaining payment
of the common share warrants obligation, $350 million through its
normal course issuer bid (NCIB) and $270 million through common and
preferred share dividends. In 2023, the company returned $2.8
billion to shareholders through its NCIB, common and preferred
share dividends and the purchase and cancellation of common
share warrants.
2024 planned maintenance
The following table provides details on planned maintenance
activities at Cenovus assets through 2024 and anticipated
production or throughput impacts.
2024 planned maintenance |
Potential quarterly production/throughput impact
(Mbbls/d) |
|
Q1 |
Q2 |
Q3 |
Q4 |
Annualized impact |
Upstream |
|
|
|
|
|
Oil
Sands |
— |
2 - 3 |
50 - 60 |
— |
13 - 16 |
Atlantic |
8 - 10 |
8 - 10 |
8 - 10 |
— |
5 - 7 |
Conventional |
— |
3 - 5 |
4 - 6 |
— |
2 - 4 |
Downstream |
|
|
|
|
Canadian
Refining |
— |
42 - 46 |
— |
— |
10 - 12 |
U.S.
Refining |
20 - 24 |
12 - 16 |
30 - 34 |
56 - 60 |
30 - 35 |
|
|
|
|
|
|
Sustainability
In 2023, Cenovus made progress in several of its environmental,
social and governance focus areas. The company announced a new
milestone to reduce absolute methane emissions in its upstream
operations by 80 percent by year-end 2028, from a 2019 baseline. In
addition, Cenovus has reached its target of spending at least $1.2
billion with Indigenous businesses between 2019 and year-end 2025
and has achieved its aspiration to have at least 40% representation
from designated groups among non-management members of the Board of
Directors, including at least 30% women, by year-end 2025.
Cenovus continues to work with its peers in the Pathways
Alliance to advance company-specific projects in order to achieve
its overall emissions reduction target. Additional certainty about
shared funding commitments from governments is required for Cenovus
and the Pathways Alliance to move forward with the large-scale
capital investments necessary to meet their emissions reduction
goals.
Chief Sustainability Officer update
Cenovus Chief Sustainability Officer & Executive
Vice-President, Stakeholder Engagement, Rhona DelFrari, will be
taking a one-year sabbatical starting May 2, 2024. Jeff Lawson,
Cenovus Senior Vice-President, Corporate Development, will take on
Rhona’s responsibilities and join the executive team during her
absence.
Conference call
today9 a.m. Mountain Time (11 a.m. Eastern
Time)Cenovus will host a conference call today, February
15, 2024, starting at 9 a.m. MT (11 a.m. ET).To join the conference
call without operator assistance, please register here
approximately 5 minutes in advance to receive an automated
call-back when the session begins.Alternatively, you can dial
888-664-6383 (toll-free in North America) or 416-764-8650 to reach
a live operator who will join you into the call. A live audio
webcast will also be available and will be archived for
approximately 90 days. |
|
Advisory
Basis of Presentation
Cenovus 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) Accounting Standards.
Barrels of Oil Equivalent
Natural 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 endedDecember 31,
2023 |
Full year endedDecember 31,
2023 |
Oil Sands |
|
Bitumen (Mbbls/d) |
595.1 |
576.7 |
Heavy crude oil (Mbbls/d) |
17.5 |
16.7 |
Conventional natural gas (MMcf/d) |
12.3 |
11.9 |
Total Oil Sands segment production (MBOE/d) |
614.6 |
595.4 |
Conventional |
|
|
Light crude oil (Mbbls/d) |
6.1 |
5.9 |
Natural gas liquids (Mbbls/d) |
22.8 |
21.7 |
Conventional natural gas (MMcf/d) |
569.6 |
554.1 |
Total Conventional segment production
(MBOE/d) |
123.8 |
119.9 |
Offshore |
|
|
Light crude oil (Mbbls/d) |
9.7 |
8.2 |
Natural gas liquids (Mbbls/d) |
11.4 |
10.8 |
Conventional natural gas (MMcf/d) |
294.4 |
266.6 |
Total Offshore segment production (MBOE/d) |
70.2 |
63.4 |
Total upstream production (MBOE/d) |
808.6 |
778.7 |
Forward‐looking Information
This 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 about Cenovus’s current expectations,
estimates and projections about the future of the company, based on
certain assumptions made in light of the company’s 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 “anticipate”, “continue”, “deliver”, “focus”,
“progress”, and “will” or similar expressions and includes
suggestions of future outcomes, including, but not limited to,
statements about: performance for the rest of 2024 and beyond;
market pricing; capturing margin; achieving net debt of $4.0
billion; excess free funds flow under the shareholder returns
framework; progressing growth and optimization projects; planned
turnaround activities; dividend payments; advancing
company-specific and Pathways Alliance emissions reductions
projects; and Cenovus’s 2024 corporate guidance available on
cenovus.com.
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; 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 2024 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 production and operating expenses,
inflation, taxes, royalties, capital costs and currency and
interest rates; risks inherent in the operation of Cenovus’s
business; and risks associated with climate change and Cenovus’s
assumptions relating thereto and other risks identified under “Risk
Management and Risk Factors” and “Advisory” in Cenovus’s
Management’s Discussion and Analysis (MD&A) for the year ended
December 31, 2023.
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
MD&A for the period ended December 31, 2023, 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 sedarplus.ca, 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 Cenovus’s MD&A for the period
ended December 31, 2023 (available on SEDAR+ at sedarplus.ca, 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(1) |
|
Downstream(1) |
|
Total |
($ millions) |
Q4 2023 |
|
Q3 2023 |
|
|
Q4 2022 |
|
Q4 2023 |
|
|
Q3 2023 |
|
Q4 2022 |
|
|
Q4 2023 |
|
Q3 2023 |
|
Q4 2022 |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Sales |
7,797 |
|
8,783 |
|
|
8,251 |
|
8,404 |
|
|
9,658 |
|
8,302 |
|
|
16,201 |
|
18,441 |
|
16,553 |
Less: Royalties |
902 |
|
1,135 |
|
|
875 |
|
— |
|
|
— |
|
— |
|
|
902 |
|
1,135 |
|
875 |
|
6,895 |
|
7,648 |
|
|
7,376 |
|
8,404 |
|
|
9,658 |
|
8,302 |
|
|
15,299 |
|
17,306 |
|
15,678 |
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased Product |
663 |
|
900 |
|
|
1,079 |
|
7,888 |
|
|
7,947 |
|
6,993 |
|
|
8,551 |
|
8,847 |
|
8,072 |
Transportation and Blending |
2,894 |
|
2,397 |
|
|
2,984 |
|
— |
|
|
— |
|
— |
|
|
2,894 |
|
2,397 |
|
2,984 |
Operating |
864 |
|
914 |
|
|
955 |
|
826 |
|
|
778 |
|
759 |
|
|
1,690 |
|
1,692 |
|
1,714 |
Realized (Gain) Loss on Risk
Management |
19 |
|
(10 |
) |
|
134 |
|
(6 |
) |
|
11 |
|
(8 |
) |
|
13 |
|
1 |
|
126 |
Operating
Margin |
2,455 |
|
3,447 |
|
|
2,224 |
|
(304 |
) |
|
922 |
|
558 |
|
|
2,151 |
|
4,369 |
|
2,782 |
(1) Found in the December 31, 2023, or the
September 30, 2023, interim Consolidated Financial Statements.
|
Upstream(1) |
|
Downstream(1) |
|
Total |
($ millions) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Gross Sales |
31,082 |
|
41,142 |
|
32,626 |
|
38,010 |
|
63,708 |
|
79,152 |
Less: Royalties |
3,270 |
|
4,868 |
|
— |
|
— |
|
3,270 |
|
4,868 |
|
27,812 |
|
36,274 |
|
32,626 |
|
38,010 |
|
60,438 |
|
74,284 |
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Purchased Product |
3,152 |
|
6,741 |
|
28,273 |
|
32,409 |
|
31,425 |
|
39,150 |
Transportation and Blending |
11,088 |
|
12,301 |
|
— |
|
— |
|
11,088 |
|
12,301 |
Operating |
3,690 |
|
3,789 |
|
3,201 |
|
3,050 |
|
6,891 |
|
6,839 |
Realized (Gain) Loss on Risk
Management |
12 |
|
1,619 |
|
— |
|
112 |
|
12 |
|
1,731 |
Operating
Margin |
9,870 |
|
11,824 |
|
1,152 |
|
2,439 |
|
11,022 |
|
14,263 |
(1) Found in the December 31, 2023, Consolidated
Financial Statements.
Adjusted Funds Flow, Free Funds Flow and
Excess Free Funds Flow
The following table provides a reconciliation of cash from (used
in) operating activities found in Cenovus’s Consolidated Financial
Statements to Adjusted Funds Flow, Free Funds Flow and Excess Free
Funds Flow. Adjusted Funds Flow per Share – Basic and Adjusted
Funds Flow per Share – Diluted are calculated by dividing Adjusted
Funds Flow by the respective basic or diluted 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 |
|
Twelve Months Ended |
($ millions) |
Dec. 31, 2023 |
|
Sept. 30, 2023 |
|
Dec. 31, 2022 |
|
|
Dec. 31, 2023 |
|
Dec. 31, 2022 |
|
Cash From (Used in) Operating Activities(1) |
2,946 |
|
2,738 |
|
2,970 |
|
|
7,388 |
|
11,403 |
|
(Add) Deduct: |
|
|
|
|
|
|
Settlement of Decommissioning
Liabilities |
(65 |
) |
(68 |
) |
(49 |
) |
|
(222 |
) |
(150 |
) |
Net Change in Non-Cash Working
Capital |
949 |
|
(641 |
) |
673 |
|
|
(1,193 |
) |
575 |
|
Adjusted Funds
Flow |
2,062 |
|
3,447 |
|
2,346 |
|
|
8,803 |
|
10,978 |
|
Capital Investment |
1,170 |
|
1,025 |
|
1,274 |
|
|
4,298 |
|
3,708 |
|
Free Funds
Flow |
892 |
|
2,422 |
|
1,072 |
|
|
4,505 |
|
7,270 |
|
Add (Deduct): |
|
|
|
|
|
|
Base Dividends Paid on Common
Shares |
(261 |
) |
(264 |
) |
(201 |
) |
|
|
|
Dividends Paid on Preferred
Shares |
(9 |
) |
— |
|
— |
|
|
|
|
Settlement of Decommissioning
Liabilities |
(65 |
) |
(68 |
) |
(49 |
) |
|
|
|
Principal Repayment of
Leases |
(72 |
) |
(70 |
) |
(74 |
) |
|
|
|
Acquisitions, Net of Cash
Acquired |
(14 |
) |
(32 |
) |
(7 |
) |
|
|
|
Proceeds From Divestitures |
— |
|
1 |
|
45 |
|
|
|
|
Excess Free Funds Flow |
471 |
|
1,989 |
|
786 |
|
|
|
|
(1) Found in the December 31, 2023, or the September 30, 2023,
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, X, LinkedIn, YouTube and
Instagram.
Cenovus contacts
Investors |
Media |
Investor Relations general line403-766-7711 |
Media Relations general line403-766-7751 |
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