Oct. 29, 2015, 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.
Oct. 21, 2015, 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.
Sep. 16, 2015, 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.
Sep. 3, 2015, 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.
Aug. 13, 2015, 12:45 PM
- A key pipeline for delivering Canadian oil to the U.S. remains shut for a third day, leaving heavy crude stranded in Alberta and keeping its price in the cash market at ~$20 below the WTI benchmark.
- A small leak near Shelbina, Mo., coming from Enbridge’s (ENB -1.1%) Spearhead pipeline, which runs from Flanagan, Ill., to the Cushing, Okla., crude hub forced the shutdown Tuesday of the 193.3K bbl/day pipeline as well as a closing of the parallel Flanagan South pipeline, an even larger 585K bbl/day line that runs from Pontiac, Ill., to Cushing.
- ENB expects operations at Flanagan South to resume today, but does not know when Spearhead may return to service, as it continues to investigate the cause of the spill in Missouri.
- Operational problems at BP's (BP -1.5%) Whiting, Ind., refinery also keep the pressure on prices for Canada’s heavy crude as barrels continue to get backed up.
- Other related tickers: SU, IMO, TRP, CNQ, CVE, TCK, CEO, OTCPK:HUSKF, OTCQX:COSWF
- Earlier: Canadian oil sands price nears $20/bbl, cut in half since July 1
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."
May 26, 2015, 10:18 AM
- Canadian Natural Resources (CNQ -2.7%) shut production yesterday from its Kirby South oil sands operation in Alberta, raising the amount of production brought offline because of the nearby forest fire that began earlier in the weekend to 233K bbl/day, or ~10% of the province’s total oil sands output.
- CNQ already had shut 80K bbl/day of production at its Primrose facility, and Cenovus Energy (CVE -2.7%) had closed its 135K bbl/day Foster Creek operations in Alberta.
- MEG Energy (OTCPK:MEGEF) also said it had suspended operations at its Christina Lake oil sands project and moved non-essential staff from the site due to the potential risk of the fires.
May 6, 2015, 2:36 PM
- Canadian energy stocks are broadly lower after the shocking election result in Alberta raised questions about the future of the country's oil industry: SU -3.3%, ENB -2.8%, TRP -2.6%, IMO -2.3%, CNQ -2.3%, CVE -5.8%, OTCQB:HUSKF -1%, TCK -1.6%, TAC -4.1%, OTCQX:COSWF -6%.
- "Energy is such a critical issue to Alberta, I’m really not that concerned," ENB CEO Al Monaco says, but investors and analysts disagree.
- "It’s completely devastating" for energy companies and investors, saysCanoe Financial's Rafi Tahmazian of stated plans by the newly elected government to raise corporate taxes, review the government’s take of energy revenue, scale back advocacy for pipelines and phase out coal power more quickly.
- “If you are invested in energy stocks, you should be concerned,” says AltaCorp’s Jeremy McCrea, noting that drillers already face higher costs to extract oil and gas in Alberta than in many jurisdictions, so an increase in royalties would make the province even less competitive.
Apr. 23, 2015, 3:09 PM
- Cenovus Energy (CVE +4.2%) has hired TD Bank to explore the possible sale or IPO of its royalty lands in western Canada, Bloomberg reports.
- The royalty lands, located across Alberta, Saskatchewan and Manitoba, could fetch as much as C$1.6B ($1.3B) in a sale, according to RBC analyst Shailender Randhawa, who says CVE has 3.1M net acres of royalty lands that produce 7,600 boe/day and generated C$150M in pre-tax operating cash flow for the company.
- Potential bidders are speculated to include other royalty companies such as PrairieSky (OTC:PREKF), Freehold Royalties (OTCPK:FRHLF) or Franco-Nevada (NYSE:FNV), as well as pension plans or P-E players.
Feb. 18, 2015, 9:15 AM
Feb. 17, 2015, 6:25 PM
- Cenovus Energy (NYSE:CVE) -4.9% AH Cenovus Energy on news it entered into a bought-deal financing agreement to sell 67.5M common shares at $22.25/share.
- CVE says the net proceeds of the offering, combined with its $3B of undrawn committed credit lines, will result in a stronger balance sheet and financial flexibility to help fund its planned $1.8B-$2B 2015 capex program.
- CVE says it will continue expansion projects already under way at its core Foster Creek and Christina Lake projects in Alberta’s oil sands, and expects to produce up to 212K bbl/day of oil in 2015, up from 203K last year and 179K in 2013.
Oct. 23, 2014, 10:54 AM
- Cenovus Energy (CVE +6.1%) opens strong after Q3 earnings slip 4% but beat expectations, and cash flow climbed 6% on higher oil sands production and stronger natural gas prices.
- CVE says cash flow reached C$985M (US$876M), or C$1.30/share, but the improvement was partly offset by weaker crude prices and lower refined product output.
- Refining operating cash flow fell 53% due to an unplanned coker outage in July at its Borger refinery in Texas and a planned turnaround at the Wood River refinery in Illinois; CVE owns a 50% stake in the two U.S. refineries operated by Phillips 66 (NYSE:PSX).
- CVE, which co-owns the Foster Creek and Christina Lake oil sands projects with ConocoPhillips (NYSE:COP), says its total oil production rose 13% to ~199K bbl/day, driven by a 23% jump in oil sands production to ~125K bbl/day.
Jul. 30, 2014, 9:44 AM
- Cenovus Energy (CVE +2.6%) opens higher after its Q2 earnings more than tripled, helped by increased production at its Christina Lake oil sands project in Alberta.
- CVE's Q2 oil sands production averaged nearly 125K bbl/day, with Christina Lake up 77% to 68K bbl/day following completion of another phase of development.
- Total oil production rose 18% to 201,688 bbl/day; natural gas production fell 5% in the quarter.
- Cash flow of C$1.19B ($1.57/share) was 37% higher than a year earlier, fueled by higher oil sands production and improved commodity prices.
Aug. 16, 2013, 10:33 AM
- Warren Buffett’s new 17.7M-share stake in Suncor (SU +1.7%) could spark investor interest in the battered stocks of Canadian oil sands companies, analysts say.
- Canadian Natural Resources (CNQ), Cenovus Energy (CVE) and Imperial Oil (IMO) - with "scale and access to market and cost discipline" - may get a second look from investors as Wall Street reviews oil and gas plays beyond prolific shale plays in their own backyard.
- SU produced a record 390K bbl/day in July, and its "new normal" would see output shoot up to 420K, First Energy Capital says.
- SU is trading at some of the lowest cash flow multiples and, at 80 years, has one of the longest reserve lives in its peer group.
Jul. 24, 2013, 10:32 AM
Cenovus (CVE -4%) shares slide after its Q2 misses estimates by a wide margin and the company says 2013 operating costs will be higher than forecast in previous guidance. Total oil output was up 10% Y/Y, but CVE recorded a $57M expense related to the sale of its Shaunavon light oil assets. Guidance on operating costs at its oilsands operations jumps to $3-$3.30/bbl vs. $2.70-$3 earlier.| Jul. 24, 2013, 10:32 AM