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Cenovus Energy, Inc. (CVE)

  • Tue, Nov. 24, 12:49 PM
    • Canadian oil producers may say they are on board with Alberta’s new climate change policy goals, but the requirement that companies reduce their methane emissions by 45% will add costs "in the tens or hundreds of millions of dollars over the next five years," the Canadian Association of Petroleum Producers says.
    • Alberta’s oil and gas sector produced 30.4 megatons of methane emissions in 2013, accounting for 70% of the province’s overall methane emissions.
    • National Bank Financial analyst Kyle Preston calls Alberta’s climate change policy “fair and accommodating” for oil and gas companies, and says newer energy projects such as Canadian Natural Resources' (NYSE:CNQ) Horizon oil sands project and MEG Energy’s (OTCPK:MEGEF) Christina Lake facility emit less greenhouse gas than older facilities, which will be hit harder by the new policies.
    • Other related tickers: TRP, ENB, IMO, XOM, RDS.A, RDS.B, OTCQX:COSWF, OTCPK:HUSKF, CVE
    | Tue, Nov. 24, 12:49 PM | 17 Comments
  • Mon, Nov. 23, 8:19 AM
    • Alberta's government announces plans to cap oil sands emissions for producers, phase out coal power plants and implement a carbon tax in an effort to curb pollution.
    • The provincial government in impose a limit of 100 megatons/year of carbon emissions, above current annual emissions of ~70 megatons, phase out coal power plants by 2030, and set a carbon price of C$20/metric ton (US$15) by 2017 which rises to C$30 in 2018.
    • The Canadian Association of Petroleum Producers supports the initiative, saying it could help improve Alberta’s image in markets to which oil sands producers hope to expand access.
    • "This will create a wealth of opportunities and jobs for generations to come. We in Alberta want to take a leadership role on climate," says Suncor (NYSE:SU) CEO Steve Williams.
    • Coal producers criticized the new policy, however, saying it will raise electricity costs in Alberta and cost Canadian jobs.
    • Other relevant tickers: TRP, ENB, IMO, XOM, RDS.A, RDS.B, OTCQX:COSWF, OTCPK:HUSKF, CVE, CNQ
    | Mon, Nov. 23, 8:19 AM | 23 Comments
  • Thu, Nov. 12, 7:11 PM
    • Hard-hit Canadian energy producers, coming off a bleak Q3 earnings season, are signaling they will cut capital spending for a second straight year in 2016, Reuters reports.
    • The seven biggest Canadian producers cut 2015 capital spending by 39%, or a combined C$12B, from last year, and Eric Nuttall, portfolio manager at Sprott Asset Management, expects another 10%-20% reduction for 2016.
    • Of the seven, so far only Cenovus Energy (NYSE:CVE) and Canadian Natural Resources (NYSE:CNQ) have outlined 2016 budgets; CVE estimates 2016 capex of C$1.5B-C$2B vs. C$1.8B-$1.9B in 2015, and CNQ expects to spend C$4.5B-C$5B next year from C$5.44B in 2015.
    • Encana (NYSE:ECA) today bucked the trend a bit by speeding up investment in the U.S. Permian Basin this year but is using capital originally earmarked for 2016; the company suggested in its earnings conference call that 2016 spending will be carefully controlled.
    | Thu, Nov. 12, 7:11 PM | Comment!
  • Thu, Oct. 29, 11:54 AM
    • Cenovus Energy (CVE +3.8%) is higher after its unadjusted Q3 earnings rose more than fivefold due to a C$1.9B after-tax gain on the sale of its royalty business.
    • CVE says it plans to lay off another 700 employees in H2 of this year, up from 300-400 it forecast in July; CVE says that once the cuts have been made, it will have 24% fewer staff by year-end compared with the end of 2014, providing $100M in annual cost savings starting in 2016.
    • CVE says it cut oil sands per-unit operating costs by 23% Y/Y, with total 2015 savings of ~C$400M compared with a July forecast of C$280M.
    • Says it now projects total 2015 capital spending of C$1.8B-C$1.9B vs. a July estimate of C$1.8B-C$2B, and it projects 2016 capex of C$1.5B-C$2B.
    • Q3 total oil production rose 6% Y/Y to 210.4K bbl/day and natural gas output fell 12% to 430M cf/day.
    | Thu, Oct. 29, 11:54 AM | 3 Comments
  • Thu, Oct. 29, 8:25 AM
    | Thu, Oct. 29, 8:25 AM | Comment!
  • Wed, Oct. 28, 5:30 PM
  • Tue, Oct. 27, 7:37 PM
    • Energy-dependent Alberta today unveiled its 2015 budget, the first under the new NDP government, projecting a record deficit on falling revenue linked to the sharp slump in crude oil prices.
    • It's a spend and borrow budget that will see the province borrowing for operating for the first time in two decades, promising to spend an additional C$4.5B above previous commitments over the next five years for infrastructure such as new transportation projects and hospitals.
    • As for the oil sector, which is pleading for a three-year lag before royalties are changed, Finance Minister Ceci indicated no letup from the NDP's promise of royalty increases and tougher climate change regulations once reviews now underway are completed over the next few months.
    • Relevant tickers: SU, ENB, TRP, KMI, IMO, CVE, CNQ, OTCPK:HUSKF, OTCQX:COSWF.
    | Tue, Oct. 27, 7:37 PM | 41 Comments
  • Wed, Oct. 21, 6:48 PM
    • Cenovus Energy (NYSE:CVE) CEO Brian Ferguson dismisses speculation that the company may be a takeover target, WSJ reports, in an attempt to curb speculation CVE’s depressed stock price could lure outside suitors.
    • "We’re not involved” in any M&A deals as a target or buyer, Ferguson says in response to talk that has ratcheted up since Suncor launched its hostile bid for Canadian Oil Sands early this month.
    • Desjardins Capital Markets recently tabbed CVE as a potential target, saying "high-quality assets are especially at risk, and that’s food for thought when it comes to other high-quality assets - Cenovus is one such company."
    • The CEO also says that while the company remains committed to projects designed to lower carbon emissions, CVE has been forced to reduce its R&D budget in line with broader cost cuts.
    • CVE +2.2% AH.
    | Wed, Oct. 21, 6:48 PM | 5 Comments
  • Tue, Oct. 20, 2:30 PM
    • Canada's oil patch may have lost a major energy opportunity with the defeat of the Conservative government, but Canadian energy stocks are mostly higher despite the surprise mandate won by Justin Trudeau's Liberals that promises less favorable energy policies and increased environmental stewardship.
    • The Liberal majority at least removes the uncertainty of a widely speculated minority government and gives the changing industry political stability in Ottawa, the president of the Canadian Association of Petroleum Producers says.
    • Energy proponents in Alberta may be relieved that last May’s provincial NDP victory did not translate into a federal win by Tom Mulcair’s NDP, which would have brought far tougher anti-oil policies that the winning Liberals.
    • Trudeau is opposed to Enbridge's (ENB +1.1%) Northern Gateway pipeline, but has expressed qualified support for TransCanada's (TRP +1.4%)Keystone XL and Energy East and Kinder Morgan’s (KMI +0.5%) TransMountain projects, though he would also bring in tougher environmental review processes and a national plan to tackle greenhouse gases.
    • Some say an Obama administration veto for Keystone XL would make the job easier for the new Prime Minister in an effort to reset a relationship with the U.S. he says was damaged by the outgoing Stephen Harper.
    • Also: SU +1.3%, IMO +1.1%, CVE +1.1%, CNQ +3%, OTCPK:HUSKF +0.6%, CNI +1.9%, CP +3.8%.
    • Earlier: Canadian energy stocks to turn red if Harper fails to win upcoming election (Oct. 14)
    | Tue, Oct. 20, 2:30 PM | 40 Comments
  • Fri, Oct. 16, 2:32 PM
    • Canadian energy companies Cenovus Energy (CVE -0.3%), Husky Energy (OTCPK:HUSKF -0.5%), Lightstream Resources (OTCPK:LSTMF -2.2%) and Bellatrix Exploration (BXE -3.8%) suffer reduced ratings or outlooks by Standard & Poor’s as slumping commodities prices put pressure on their businesses.
    • CVE’s credit rating was downgraded to two levels above junk at BBB from BBB+ with a stable outlook, and BXE was downgraded to B from B+ with a stable outlook, the ratings agency says.
    • Husky's outlook on its BBB+ ranking was lowered to negative from stable, while Lightstream's outlook was reduced to negative from stable.
    | Fri, Oct. 16, 2:32 PM | Comment!
  • Thu, Oct. 15, 6:45 PM
    • Canadian National Railway (NYSE:CNI) and Canadian Pacific Railway (NYSE:CP) are cutting rates for shipping crude oil by as much as 25%, shippers and terminal operators tell Reuters, as the railroads struggle to compete with pipelines for a share of shrinking crude shipments across Canada, where an anticipated boom in oil sands traffic has fizzled with lower oil prices.
    • Shipments from Canada to the U.S. have plunged by more than a third this year to 112K bbl/day in July, thwarting industry forecasts made before the oil price crash that total Canadian crude by rail volumes could hit 700K bbl/day by year-end 2016.
    • Canadian oil sands producers that ship their crude by rail include Cenovus Energy (NYSE:CVE) and Suncor Energy (NYSE:SU).
    | Thu, Oct. 15, 6:45 PM | 1 Comment
  • Mon, Oct. 5, 5:49 PM
    • Investors rushed back into Canadian oil companies today in hopes of picking up the next takeover target following news of Suncor's unsolicited $4.3B bid for Canadian Oil Sands.
    • MEG Energy (OTCPK:MEGEF) jumped 22% on speculation it could be the next in line to be taken over, perhaps by Imperial Oil (NYSEMKT:IMO), which has been considered a possible suitor for Canadian Oil Sands.
    • Penn West (NYSE:PWE) also surged 22% as investors "clearly are positioning themselves into the next potential target, and both of them [MEG and PWE] make some sense,” says TriVest's Martin Pelletier. "They both have stretched balance sheets, both have been beaten up in the market, and they are a heck of a lot cheaper than last year.”
    • Other oil sands stocks also climbed following the Suncor offer: CVE +3.3%, OTCPK:ATHOF +14.5%, CNQ +8.8%.
    | Mon, Oct. 5, 5:49 PM | 14 Comments
  • Wed, Sep. 16, 11:31 AM
    • Canadian Natural Resources (CNQ +5.8%) is the latest Canadian oil sands producer looking to cut costs, saying it plans to cut operating costs by $390M more than currently budgeted this year.
    • CNQ, which has operating costs of ~US$30/bbl, hopes to lower that figure to $25-$27 within the next few years, to shield itself from U.S. crude prices that have been stuck below $50 in recent months.
    • Cenovus Energy (CVE +6.5%) also says it is looking to aggressively slash costs, not satisfied with total costs of $11-$14/bbl and targeting a $1-$2/bbl reduction.
    • Suncor Energy (SU +4.2%) has seen its cash operating costs fall to $28.20/bbl in H1 of the year, compared to $33.80 last year.
    | Wed, Sep. 16, 11:31 AM | 9 Comments
  • Thu, Sep. 3, 5:57 PM
    • Cenovus Energy (NYSE:CVE) looks prescient in its just-completed $75M acquisition of the Bruderheim Energy Terminal, as delivering crude oil by rail may be making a comeback after losing steam in H1.
    • The latest data from Canadian Pacific Railway (NYSE:CP) shows weekly crude carloads exceeding 2,000 units in the last two weeks of August, the first time this year since January.
    • Amid oil volatility, discounts for Western Canadian Select have widened to ~US$15.6/bbl over the past six weeks, allowing companies to jump back on to rail.
    • Despite skepticism even within the industry about rail’s relevance if major pipelines get built, Cenovus Energy (CVE) says it has already fielded nearly a dozen calls from producers to discuss transporting oil through its newly-acquired terminal that gives it ready access to 70K bbl/day in rail capacity.
    | Thu, Sep. 3, 5:57 PM | 3 Comments
  • Thu, Sep. 3, 10:34 AM
    • Cenovus Energy (CVE +2.7%) secured a crude oil export license from the U.S. earlier this year and has completed some transactions within the past month to export from the Gulf coast, Bob Pease, executive VP of corporate strategy and downstream president, tells the Financial Post.
    • CVE also is building on its exports to Asia through Kinder Morgan’s Trans Mountain pipeline in British Columbia, Pease says, without revealing the destination or volume of the barrels CVE is set to export.
    • Canadian oil and gas companies have been seeking out new markets in an effort to reduce their dependence on U.S. refineries following years of growth in U.S. shale oil production.
    | Thu, Sep. 3, 10:34 AM | Comment!
  • Fri, Aug. 28, 2:28 PM
    • Alberta's new government launches its royalty review panel, and says it will not raise oil and gas royalty rates until the end of 2016.
    • The specter of a higher government take is spooking the industry, especially with oil prices recently hitting more than six-year lows; some have argued the royalty review should be deferred until the outlook improves, while others would prefer to just get it over with.
    | Fri, Aug. 28, 2:28 PM | 34 Comments
Company Description
Cenovus Energy Inc is an integrated oil company. The Company is in the business of developing, producing and marketing crude oil, NGLs and natural gas in Canada with refining operations in the United States.