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.
Oct. 23, 2014, 6:26 AM
Oct. 22, 2014, 5:30 PM
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Oct. 1, 2014, 2:39 PM
- Suncor Energy (SU +0.1%) is upgraded to Buy from Neutral at Citi, which sees 7%/year production growth during 2015-20 generating an average free cash flow yield of ~8% vs. a yield forecast of ~5.6% for global oil majors.
- The firm notes that SU has enhanced returns on its existing $25B of capital-in-place oil sands assets over the past 18-24 months, and is streamlining its operations to lower sustaining capital spending and operating expenses while producing more from its existing project.
- SU has cut 2014 capex by ~$1B, but the firm estimates further cuts to annual spending of $500M-$1B through 2020 which should generate another 20%-25% in free cash flow, allowing the company to achieve its return on capital employed goal of 15%.
- Citi now has Buy ratings on all four major integrated oil producers in Canada, which also includes Cenovus Energy (NYSE:CVE), Husky Energy (OTCQB:HUSKF) and Imperial Oil (NYSEMKT:IMO).
Sep. 17, 2014, 5:48 PM
- Cenovus Energy (NYSE:CVE) says it achieved first oil production at its recently-completed Foster Creek phase F expansion earlier this month.
- CVE expects Phase F to add 30K bbl/day of capacity, with production ramping up over the next 12 to 18 months; phases G and H are under construction and are expected to add another 30K bbl/day each with first production anticipated in late 2015 and 2016, respectively, bringing total expected gross production capacity at Foster Creek to 210K bbl/day.
- Foster Creek is 50%-owned by ConocoPhillips (NYSE:COP).
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.
Jul. 30, 2014, 6:14 AM
Jul. 29, 2014, 5:30 PM
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Jul. 25, 2014, 3:42 PM
- Exxon Mobil (XOM -1.2%) is downgraded to Underweight from Equal Weight at Barclays, primarily due to its relative valuation in the belief that potential upside is limited compared to peers.
- XOM will continue to face relative headwinds concerning the lack of meaningful near-term production growth and the likelihood of a relatively steady high oil price environment, Barclays believes.
- The firm recommends switching out of XOM to ConocoPhillips (COP -0.3%), Imperial Oil (IMO -1.3%) or Suncor (SU -0.3%).
- Barclays also cuts Cenovus Energy (CVE -1.7%) to Equal Weight from Overweight, seeing operating issues at Foster Creek and Pelican Lake remaining a drag on shares over the next several quarters (Briefing.com).
Jul. 12, 2014, 8:25 AM
- The problem facing Canada isn't the Keystone pipeline or Pres. Obama or environmentalists - it's the oil sands, and they've got to be cleaned up and the head-in-the-sand denials chased way or the country will be stuck with a "baby seal hunt" image, Diane Francis writes in the Financial Post.
- The columnist thinks she knows the right person to lead the clean-up: Jeff Immelt - "an American leader with stature in Washington, on Wall Street, in the oil patch and in Silicon Valley" - who said this week that GE will help companies clean up the oil sands.
- The only way to stop the environmental excuses, Immelt believes, is for the industry to collaborate and voluntarily establish lower emissions targets that would make the oil sands competitive with any other fuel source in the world - without such a promise to provide cleaner energy, "all bets are off."
- Some related companies: XOM, IMO, SU, RDS.A, RDS.B. ENB, TRP, CNQ, CVE, CVX, COP, BP, KMP, WPZ, TOT, STO, CEO, SNP, PTR, HUSKF, ATHOF, COSWF.
Jul. 9, 2014, 11:29 AM
- Cenovus Energy (CVE -0.8%) CEO Brian Ferguson raps Liberal Party leader Justin Trudeau and NDP leader Thomas Mulcair for opposing the proposed Northern Gateway (ENB) pipeline for "political gain."
- "What they are saying [about] the most scrutinized project that we ever had the National Energy Board look at [is that] they would chose to ignore this very stringent regulatory process for what I think is their own political gain,” Ferguson says.
- Ferguson, whose company is one of Northern Gateway's funding partners, says shippers remain supportive and will follow up with more specific commitments in the future.
Jun. 17, 2014, 6:56 PM
- Enbridge (ENB) gained approval for its Northern Gateway pipeline, but now the real work begins, since it first must nail down oil shipping contracts that meet the 200-plus conditions attached to the project.
- ENB needs firm transportation contracts covering at least 60% of the pipeline’s capacity prior to starting construction, and some analysts say the many competing export projects and the sharp growth of oil shipments by rail could make shoring up commercial support for the pipeline difficult, and even delay construction into next decade.
- If built, Northern Gateway would serve as an important link between the Alberta oil sands deposits and energy-thirsty Asian markets, but If TransCanada’s (TRP) Keystone XL and Energy East projects are approved, “Gateway gets shelved for a very, very long time, because [ENB] won’t be able to fill it," says one industry analyst.
- Suncor (SU), Cenovus (CVE), Cnooc (CEO), Total (TOT) and others have signed so-called precedent agreements to ship oil on the pipeline, but legal experts say those agreements aren’t binding, giving producers wiggle room to choose alternatives.
Apr. 30, 2014, 6:04 AM
Apr. 29, 2014, 5:30 PM
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Apr. 16, 2014, 10:48 AM
- Alberta looks likely to implement energy efficiency measures when it revamps its climate-change policy to win support for its oil sector, an about-face on the former premier’s vow that the province wouldn’t enact new rules until the U.S. did.
- The province plans to have new regulations on emissions in the near future and may include a higher carbon price, Alberta's environment minister says.
- The struggle by Alberta’s oil producers for access to new markets, as reflected in U.S. delays in approving the Keystone XL (TRP) pipeline, comes amid opposition to oil sands bitumen because of its higher carbon intensity and concerns around air and water pollution.
- Relevant companies include ECA, ENB, EEP, STO, XOM, IMO, SU, CVE, PGH, BP, CNQ, BTE, DVN, IVAN, AAV, RDS.A, RDS.B, PTR, ATHOF
Feb. 13, 2014, 6:12 AM
CVE vs. ETF Alternatives
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.
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