Cenovus: More Than Meets The Eye
Michael Fitzsimmons • 49 Comments
Michael Fitzsimmons • 49 Comments
Jul. 30, 2015, 6:14 AM
- Cenovus Energy (NYSE:CVE): Q2 EPS of $0.18 beats by $0.09.
Jul. 29, 2015, 5:30 PM
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Jul. 28, 2015, 1:12 PM
- Canada oil sands pipeline projects look doomed after the recent Nexen oil spill leaves "two big football fields of black goo," according to a Bloomberg analysis.
- A rupture in a line operated by the Cnooc (NYSE:CEO) unit that spewed 31K barrels of bitumen, waste water and sand has ignited outrage from communities along pipeline routes and is strengthening opposition that already has stalled every major crude export project from Canada and may lead to stricter regulations, the report says.
- The Alberta Energy Regulator could consider new requirements including scheduled and random inspections of pipelines during construction and while in operation, as well as better spill detection technology; meanwhile, the spill gets bad press in Canadian newspapers every day.
- Related tickers: TRP, ENB, SU, IMO, CNQ, CVE, TCK, OTCPK:HUSKF, OTCQX:COSWF
Jul. 24, 2015, 2:22 PM
- Total (TOT -2%) is aiming to sell a 50% stake in its sole U.S. refinery in Port Arthur, Tex., and has retained investment bank Lazard to advise on the deal, Reuters reports.
- TOT reportedly intends to remain operator of the 225K bbl/day plant, which it has owned for more than 40 years.
- Potential bidders could include companies from Canada's oil sands patch such as Cenovus Energy (CVE -1.4%), which are shipping growing volumes of heavy crude to the U.S. Gulf, according to the report.
Jul. 22, 2015, 2:56 PM
- In contrast to his upbeat analysis (I, II) of Exxon Mobil (XOM +1.2%), Goldman's Neil Mehta thinks investors should sell Chevron (CVX -0.2%) and Cenovus Energy (CVE -2.2%) on concerns about dividend sustainability.
- Believing too many investors are focusing on absolute yield when an ability to post dividend growth is more important long term, the analyst ranks CVX a Sell given low dividend growth, weak free cash flow and E&P volume risk, while CVE is a Sell because of limited dividend growth, lower returns and a premium valuation.
- XOM and Suncor Energy (SU -0.4%), on the other hand, "are set to deliver the highest dividend growth through the end of the decade - and now offer solid valuation upside from current levels."
Jul. 7, 2015, 6:43 PM
- Barclays’ Paul Cheng predicts all 10 Americas-based oil majors - XOM, CVX, COP, HES, MUR, SU, CVE, IMO, OTCPK:HUSKF, PBR - will beat earnings forecasts, benefiting from strong downstream and chemical performances as well as better than expected production volumes and a lower operating cost environment.
- Cheng estimates the oil majors will exceed the current EPS consensus by a median of 30% while the refiners will beat by 9%.
- Cheng raises his full-year EPS forecast for CVX to $3.75 from $3.55 and for COP to $0.25 from $0.20, but lowers his forecast for XOM to $4 from $4.05.
Jul. 7, 2015, 6:25 PM
- Low crude oil prices present an opportunity to drive down oil sands costs even further, adding to the 25% savings YTD, some of Canada's largest producers said today at a TD Bank conference in Calgary.
- Cenovus Energy (NYSE:CVE) executive VP of oil sands Harbir Chhina believes his company can cut costs by another 30%, adding that “the key thing that’s going to happen now, with this downturn, is really the cost structure in the oil sands is going to come down."
- It is a sentiment echoed by Canadian Oil Sands (OTCQX:COSWF) CEO Ryan Kubik, who expects 2015 operating costs of C$39.48/bbl vs. C$45.69 at the start of the year.
- Encana (NYSE:ECA) VP of strategy Corey Code said the oil price slide has provided the opportunity to cut costs not just in oil sands but across its shale oil holdings in Alberta and Texas.
- In addition to reducing operating costs, MEG Energy's (OTCPK:MEGEF) John Rogers said the company would grow its production solely by expanding existing oil sands plants for the foreseeable future.
Jun. 30, 2015, 7:23 AM
- Cenovus Energy (NYSE:CVE) confirms it has agreed to sell its royalty lands business to Ontario Teachers' Pension Plan for ~C$3.3B ($2.66B).
- Heritage Royalty Limited Partnership owns ~4.8M acres in Alberta, Saskatchewan and Manitoba.
- CVE says its consolidated production will be reduced by 7,800 boe/day of third-party royalty interest volumes.
Jun. 26, 2015, 4:58 PM
- Alberta's government names the top executive of a province-owned bank, ATB Financial CEO Dave Mowat, to head a panel to review oil and natural gas royalty payments and issue recommendations by year’s end.
- The announcement to move ahead with the royalty review, even as oil-rich Alberta struggles with sharply lower crude prices, comes a day after the province said it would double a carbon tax levied on large-scale emitters of greenhouse gases over the next two years.
- Alberta is home of the Canadian subsidiaries of energy giants Exxon Mobil (XOM, IMO), Royal Dutch Shell (RDS.A, RDS.B) and Total (NYSE:TOT), among others.
- Among other top Alberta oil producers: SU, OTCPK:HUSKF, CVE, CNQ, ECA, TLM, OTCQX:COSWF, CPG, OTCPK:PEGFF
Jun. 25, 2015, 1:04 PM
- Alberta's new government says it will raise the province's existing carbon tax on industrial emitters starting next year, the first step in revamping regulations to curb rising greenhouse gas output from surging oil sands production.
- The price will rise to C$20/metric ton in 2016 from C$15 now, and increase to C$30 in 2017, when the rules will expire, the environment ministry says; large emitters will be required to reduce emissions by 15% next year and 20% in 2017, compared with a 12% reduction this year.
- Alberta’s oil sands have become a target for environmentalists because of their significant carbon footprint, and the new NDP government had campaigned on a promise to toughen the province’s environmental standards.
- Among Alberta's top oil producers: SU, IMO, XOM, OTCPK:HUSKF, CVE, CNQ, ECA, TLM, OTCQX:COSWF, CPG, OTCPK:PEGFF
Jun. 19, 2015, 9:09 AM
- Cenovus Energy (NYSE:CVE) confirms it is in talks about the potential sale of its royalty interest and mineral fee title lands but provides no details of the other party’s identity or the estimated value of the deal.
- The announcement follows a report yesterday that CVE was holding exclusive talks with the Ontario Teachers Pension Plan about a deal that could be worth C$2.5B-C$3B.
- CVE says there is no assurance of a deal and has no plan to comment further on the discussions.
- Given the likely size of the proceeds, CVE would need to sell both third-party and company-owned lands in one large transaction, a CIBC analyst says.
Jun. 18, 2015, 5:10 PM
- Cenovus Energy (NYSE:CVE) surged to a 4% gain in today's trade, nearly all of it in the final half-hour, after Reuters reported the Canadian company is in advanced talks to sell its package of royalty lands to Ontario Teachers’ Pension Plan.
- The royalty lands, which generate revenue from drilling by other companies and are located across Alberta, Saskatchewan and Manitoba, are said to be worth C$2.5B-C$3B.
- The fund manager had said it was seeking energy assets as it looks to trim positions in oil and gas derivatives and invest instead directly in producing assets.
Jun. 16, 2015, 5:14 PM
- Cenovus Energy (NYSE:CVE) recently appointed Danish shipping executive Claus Thornberg to lead its marine shipping strategy, in a newly created position to help move more of the company’s crude offshore for transport to refineries in Asia, WSJ reports.
- The appointment reportedly is a first among landlocked Canadian oil sands producers looking to diversify their markets beyond the U.S., which takes up almost all Canadian crude exports.
- CVE has committed to ship more crude to the west coast on a proposed expansion of Kinder Morgan's Trans Mountain pipeline, and Asian markets could soon receive a sizable amount of its crude if crude-by-rail trans-loading facilities are built along U.S. and Canadian west coast ports.
Jun. 11, 2015, 9:41 AM
- Cenovus Energy (CVE -0.7%) says it has returned to normal operations at its Foster Creek oil sands project in northern Alberta after a forest fire led to a precautionary 11-day shutdown of the operation.
- CVE says it expects Q2 production to be reduced by ~10.5K bbl/day due to the shutdown, with a full-year production impact estimated at 2.6K bbl/day.
- CVE expects full-year production from Foster Creek to remain within its previously announced annual guidance of 62K-68K bbl/day; Foster Creek is jointly owned with ConocoPhillips (COP -0.1%).
- CVE also says its Athabasca natural gas operation, whose gas is used as fuel for Foster Creek and which also was shut down due to the fire, has returned to normal operations.
Jun. 9, 2015, 8:22 AM
- Canadian Natural Resources (NYSE:CNQ) and Cenovus Energy (NYSE:CVE) have resumed production at sites shut by a two-week-old wildfire in northern Alberta.
- CNQ says it expects to resume full production later this week at its 80K bbl/day Primrose site and its 30K bbl/day Kirby South site; the Primrose site had been evacuated and shut down, while Kirby South was forced to cut output because of the temporary closure of a pipeline.
- CVE says it began increasing output at its 135K bbl/day Foster Creek location over the weekend, but has not said when output would return to normal.
- The fires had shut down ~10% of Canada’s oil sands output, or ~233K bbl/day.
Jun. 5, 2015, 8:20 AM
- Cenovus Energy (NYSE:CVE) agrees to acquire a rail-loading terminal in Alberta to ship crude oil from Canexus Corp. for C$75M (~US$60M), in a move designed to cope with limited pipeline capacity in western Canada.
- The terminal has the capacity to handle 10 unit trains/week, or ~70K bbl/day, and an additional 30K bbl/day can be shipped by truck from the site.
- Canexus spent C$356M on the terminal before deciding to seek a buyer for it last year; it was built in anticipation of rising demand for crude-by-rail shipments, but lower oil prices have led to a sharp drop in shipments from western Canada.
Cenovus Energy, Inc. is an oil company. Its operations include oil sands properties and established crude oil and natural gas production in Alberta and Saskatchewan. The company operates through the following four segments: Oil Sands, Conventional, Refining & Marketing and Corporate &... More
Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
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