Cenovus Energy: Another Dividend Increase

Summary

  • Cenovus Energy's rapidly growing dividend is well-supported by integrated operations and low-cost thermal assets.
  • Preferred share retirement, growing dividends, and share buybacks highlight strong shareholder returns.
  • There is financial flexibility to sustain dividends and capital spending.
  • Integration and optimization will continue.
  • Thermal companies often have free cash flow and cash flow well even when the company is losing money because of a sizable depreciation component caused by large upfront costs.
  • This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More »

Array of crude oil wells on background of a bar chart and line graph. Illustration of the concept of increasing prices of petroleum and other natural resources

Dragon Claws

Cenovus Energy (NYSE:CVE) (TSX:CVE:CA) increased the dividend yet again to C$.20 per share each quarter. This rapidly growing dividend is backed by the newly integrated operations of the company. Additionally, the thermal operations often require large

I analyze oil and gas companies like Cenovus Energy and related companies in my service, Oil & Gas Value Research, where I look for undervalued names in the oil and gas space. I break down everything you need to know about these companies -- the balance sheet, competitive position and development prospects. This article is an example of what I do. But for Oil & Gas Value Research members, they get it first and they get analysis on some companies that is not published on the free site. Interested? Sign up here for a free two-week trial.

This article was written by

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Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA.

He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.

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