Cenovus Delivers Strong Results, Returns Capital to Shareholders

Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) has announced its fourth-quarter and full-year 2024 financial and operating results, showcasing a strong performance across its Upstream and Downstream businesses. The company generated over $2.0 billion in cash from operating activities, $1.6 billion of adjusted funds flow, and $123 million of free funds flow in the quarter. Cenovus' Upstream business continued to deliver impressive results, with production of 816,000 barrels of oil equivalent per day (BOE/d) in the quarter, including a new quarterly Oil Sands production record of 628,500 BOE/d. In the Downstream, total crude throughput increased by almost 24,000 barrels per day (bbls/d) from the previous quarter to 666,700 bbls/d, representing an aggregate utilization rate of 93%.



Cenovus' industry-leading Oil Sands assets set production records and achieved record annual rates at both Foster Creek and the Lloydminster thermal assets. The company's Downstream business demonstrated improvements in reliability and unit costs, with utilization rates of 97% in Canadian Refining and 92% in U.S. Refining. U.S. Refining operating expenses, excluding turnaround costs, were down 18% relative to the fourth quarter of 2023. Cenovus achieved significant milestones on its major Upstream growth projects, including mechanical completion of the Narrows Lake pipeline, executing the SeaRose floating production, storage, and offloading (FPSO) vessel life extension dry dock, and reaching mechanical completion of both the concrete gravity structure (CGS) and topsides for the West White Rose project.



Cenovus returned $706 million to shareholders in the fourth quarter, including $108 million through share purchases, $348 million through common and preferred share dividends, and $250 million through the redemption of Cenovus Series 3 preferred shares on December 31, 2024. The company's strong financial performance and cash flow generation have allowed it to invest in growth projects and return capital to shareholders while maintaining a strong balance sheet.

Cenovus' focus on stable profits and cash flows in the energy sector has contributed to its impressive financial performance in 2024. The company's growth plan, including major projects and upstream and downstream maintenance activities, has positively impacted its production and cash flow. Cenovus' strategy of returning cash to shareholders, including share purchases and dividends, has influenced its stock performance and investor sentiment, as evidenced by the company's positive stock price performance and the increase in its shareholder base.



In conclusion, Cenovus Energy Inc. has delivered strong operating performance in the fourth quarter of 2024, with record production and cash flow generation. The company's focus on stable profits and cash flows, growth plan, and shareholder-friendly policies have contributed to its impressive financial performance and positive investor sentiment. As Cenovus continues to execute its growth plan and return capital to shareholders, investors can expect the company to maintain its strong financial performance and create long-term value for shareholders.