Cenovus to cut capex 13%, expects oil production to rise 10%

|About: Cenovus Energy, Inc. (CVE)|By:, SA News Editor

Cenovus Energy (CVE) plans a capital budget in the $2.8B-$3.1B range for 2014, a 13% Y/Y decrease, as it cuts back on exploration activities while projecting a 9% drop in operating cash flow to $3B-$3.7B.

~90% of CVE's capex will be invested in its upstream oil assets; it plans to invest $680M-$760M to expand Foster Creek, a 12% Y/Y decrease, and $750M-$820M at Christina Lake, a 15% Y/Y increase.

CVE still expects oil output to rise 10% Y/Y to 190K-208K bbl/day, driven by Foster Creek and Christina Lake.