Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) today launched a major
initiative aimed at addressing one of the most pressing issues
facing Indigenous communities in Canada – the lack of adequate
housing that is forcing many families to live in overcrowded and
unsafe conditions. Cenovus is committing $10 million per year for
five years to build much-needed new homes in six First Nations and
Métis communities closest to its oil sands operations in northern
Alberta, with the potential to extend the project to 10 years. The
company sees this initiative as an important way to contribute to
reconciliation with Indigenous peoples.
“Investing in Indigenous communities near our operations and
ensuring they share in the benefits of resource development has
always been part of how we do business. Today, we see an
opportunity to step up and do more,” said Alex Pourbaix, Cenovus
President & Chief Executive Officer. “We can’t solve the
Indigenous housing crisis by ourselves, but through this
initiative, we have the opportunity to significantly improve the
lives of many families currently living in overcrowded and unsafe
conditions.”
Developed as part of Cenovus’s recent 10th anniversary
celebration, the housing initiative is the single largest community
investment in the company’s history. It’s a testament to the strong
positive relationships Cenovus has built over many years working
with Indigenous communities near its Christina Lake and Foster
Creek oil sands projects. Cenovus has met with leaders from Beaver
Lake Cree Nation, Chard Métis (Local 218), Chipewyan Prairie Dene
First Nation, Cold Lake First Nations, Conklin Métis (Local 193)
and Heart Lake First Nation to begin planning the implementation of
the housing program starting this year.
Cenovus plans to work with leaders from the six communities to
determine the most effective ways of delivering new homes based on
the specific needs of each community. It’s anticipated the
communities will be able to build about 200 new houses in total
over five years. Cenovus will also work with the communities to
develop training programs, so that local residents can participate
in the building and maintenance of the new homes. This will
potentially create valuable education and employment opportunities
for them in the long term. Depending on the success of the
initiative, including meeting Cenovus’s performance expectations,
the company may consider extending the program to 10 years with a
total investment amount of $100 million.
“In addition to creating training and employment opportunities
and funding the construction of new houses, Cenovus will also work
with communities to raise awareness about the Indigenous housing
shortage and help advocate for solutions,” said Pourbaix.
“Communities have done an admirable job in managing their housing
with limited resources. But this is a complex issue that will
require new ideas and collaboration among many stakeholders. We
hope to inspire other companies, governments and organizations to
get involved.”
Separately, Cenovus has engaged its Indigenous Inclusion
Advisory Committee, created in 2017 and comprised of senior leaders
from various company functions, to help increase Indigenous
inclusion in the company’s business. Since its inception in 2009,
Cenovus has signed nine long-term benefits agreements with
Indigenous communities near its oil sands operations and spent
almost $3 billion with Indigenous owned and operated businesses. On
January 9, 2020, Cenovus announced ambitious new targets in four
environmental, social and governance (ESG) focus areas, including
Indigenous engagement, climate & greenhouse gas emissions, land
& wildlife, and water stewardship. A significant element of the
Indigenous engagement ESG target commits Cenovus to spend at least
an additional $1.5 billion with Indigenous businesses through 2030.
Cenovus also continues to provide scholarships to Indigenous youth
who are pursuing a full-time degree, diploma or certified trade
program. More than 190 scholarships have been awarded since the
Indigenous scholarship program started in 2013.
Shirley Paradis, Councillor, Beaver Lake Cree
Nation“Beaver Lake Cree Nation has always had housing
issues. We’re at a capacity where we are trying to keep up with
families’ needs. The most crucial thing is understanding that we
have help now. Cenovus is stepping forward and saying: ‘We’re here
to help, how do we help your community?’ There is going to be a
sigh of relief for us.”
Justin Herman, CEO, Chard Métis (Local
218)“What I am taking away from Cenovus’s announcement
about the new housing initiative – it’s absolutely amazing and
groundbreaking, and I hope it sets a precedent for the rest of the
industry to follow the lead of Cenovus. We are excited and honoured
to be part of this housing initiative.”
Vern Janvier, Chief, Chipewyan Prairie Dene First
Nation“We’re getting to the point where we have two
families living in one house, and in some cases three. On top of
the houses that are in disrepair, we have demand for another 50
houses. That’s how it builds up on us. And that’s just our
reserve.”
Roger Marten, Chief, Cold Lake First Nations
“We have about 3,000 band members and only 300 homes. So, the
crisis is always there and is always ongoing. The relationship has
always been a great one with Cenovus; they have always listened and
try to do the best they can to help us along the way.”
Val Quintal, Board member, Conklin Resource Development
Advisory Committee, representing Conklin Métis
(Local 193)“Housing is a critical need for Conklin, and we
are so pleased that Cenovus has come forward to help our community
address this issue.”
Curtis Monias, Chief, Heart Lake First Nation“I
am really excited for Heart Lake. I look forward to working with
all the surrounding communities, with industry, and I’m excited to
build homes back home for my people.”
For more information about Cenovus’s Indigenous housing
initiative, watch this video.
ADVISORY
Forward-looking InformationThis document
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 United States Private Securities
Litigation Reform Act of 1995, about our current expectations,
estimates and projections about the future, based on certain
assumptions made by us in light of our experience and perception 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. Readers are cautioned not to place undue reliance on
forward-looking information as actual results may differ materially
from those expressed or implied.
Forward-looking information in this document is identified by
words such as “aim”, “anticipate”, “commit”, “opportunity”, “plan”,
“potential”, “target”, “will” or similar words or expressions and
includes suggestions of future outcomes, including statements
about: Cenovus’s commitment of $10 million per year for five
years to build new houses in Indigenous communities; the potential
to extend the project to 10 years with a total investment amount of
$100 million; the potential impact of the housing project, and
Cenovus's plans and expectations regarding the housing project;
Cenovus's plans with respect to continued Indigenous engagement,
including its target to spend at least an additional $1.5 billion
with Indigenous owned or operated businesses over the next 10 years
and the expected benefits to neighbouring communities; and the
opportunities related to setting and achieving targets, commitments
and ambitions for ESG focus areas.
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 is based include the
following: commodity prices; demand levels for oil, natural gas,
gasoline, diesel and other energy sources; the availability of
transportation for our products; certain levels of future energy
use and consumption of oil and gas; cost reductions and
sustainability improvements position us for resiliency at bottom of
the cycle commodity prices of about US$45/bbl West Texas
Intermediate and C$44/bbl Western Canadian Select; future
production rates; the sufficiency of budgeted capital expenditures
in carrying out planned activities; the receipt, in a timely
manner, of regulatory and partner approvals, as applicable;
Cenovus's ability to generate sufficient cash flow to meet current
and future obligations; the availability and cost of labour and
services; Cenovus's ability to obtain and retain qualified staff
and equipment in a timely and cost-efficient manner; the
availability of Indigenous owned or operated businesses; Cenovus's
ability to access sufficient capital to pursue sustainability and
development plans; assumptions disclosed in Cenovus’s current
guidance, available at cenovus.com; and other risks and
uncertainties described from time to time in the filings Cenovus
makes with securities regulatory authorities.
The risk factors and uncertainties that could cause our actual
results to differ materially, include: volatility of and other
assumptions regarding commodity prices; market competition,
including from alternative energy sources; potential failure of
products to achieve or maintain market acceptance; risks associated
with fossil fuel industry reputation and litigation related
thereto; changes in general economic, market and business
conditions; the effectiveness of Cenovus's risk management program;
Cenovus's ability to develop, access or implement some or all of
the technology necessary to efficiently and effectively achieve
expected future results, including on a commercial scale; the
occurrence of unexpected events such as fires, severe weather
conditions, explosions, blow-outs, equipment failures,
transportation incidents and other accidents or similar events;
increasing stakeholder consideration of ESG factors and risks,
including among credit rating agencies, lenders and investors,
which may impact Cenovus's ability to access capital required to
finance growth and sustaining capital expenditures; the inability
to receive necessary regulatory approvals in a timely manner;
maintenance of key relationships with government and other
regulatory bodies; availability of, and our ability to attract and
retain, critical talent; our possible failure to obtain and retain
qualified staff and equipment in a timely and cost-efficient
manner; risks associated with climate change and our assumptions
relating thereto; changes in the regulatory framework in any of the
locations in which we operate, including changes to the regulatory
approval process and land-use designations, royalty, tax,
environmental, greenhouse gas, carbon, climate change and other
laws or regulations, or changes to the interpretation of such laws
and regulations, as adopted or proposed, the impact thereof and the
costs associated with compliance; and the political and economic
conditions in the countries in which we operate or supply.
Additional information about risks, assumptions, uncertainties
and other factors that could influence Cenovus’s actual results is
provided in Cenovus’s Management’s Discussion and Analysis for the
year ended December 31, 2018 and its MD&A for the period ended
September 30, 2019 as well as its Annual Information Form and Form
40-F for the year ended December 31, 2018 (all available on SEDAR
at sedar.com, on EDGAR at sec.gov and Cenovus's website at
cenovus.com).
Readers are cautioned that the foregoing lists are not
exhaustive and are made as at the date hereof. Events or
circumstances could cause Cenovus's actual results to differ
materially from those estimated, projected, expressed, or implied
by the forward-looking information. Cenovus undertakes no
obligation to update or revise any forward-looking information
except as required by law.
Cenovus Energy Inc. Cenovus Energy Inc. is a
Canadian integrated oil and natural gas company. It is committed to
maximizing value by sustainably developing its assets in a safe,
innovative and cost-efficient manner, integrating environmental,
social and governance considerations into its business plans.
Operations include oil sands projects in northern Alberta, which
use specialized methods to drill and pump the oil to the surface,
and established natural gas and oil production in Alberta and
British Columbia. The company also has 50% ownership in two U.S.
refineries. Cenovus shares trade under the symbol CVE, and are
listed on the Toronto and New York stock exchanges. For more
information, visit cenovus.com.Find Cenovus on Facebook, Twitter,
LinkedIn, YouTube and Instagram.
CENOVUS
CONTACTS: Investor RelationsInvestor
Relations general line403-766-7711
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Media RelationsSonja FranklinSenior Media
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