Cenovus Energy delivered strong operational performance across its portfolio in the second quarter of 2024, with solid production from its upstream assets and improved crude throughput at the company’s U.S. refineries, which operated at an overall utilization rate of 93%. Net debt was $4.26 billion at June 30, 2024, and in July the company achieved its net debt target of $4.0 billion. As a result, beginning in the third quarter, Cenovus will begin returning 100% of excess free funds flow (EFFF) to shareholders, as per the company’s shareholder returns framework.
'With the achievement of this significant financial milestone, we are now in a position to substantially increase our shareholder returns,' said Jon McKenzie, Cenovus President & Chief Executive Officer. 'We will continue our focus on safely delivering profitable and predictable operations, while progressing our growth projects to further improve the resiliency of the company.'
Recent highlights
- Achieved net debt target of $4.0 billion in July, immediately shifting to returning 100% excess free funds flow to shareholders.
- As a result of strong first half performance, increased the midpoint of Upstream production guidance to 797,500 barrels of oil equivalent per day (BOE/d)1 and the midpoint of Downstream throughput guidance to 655,000 barrels per day (bbls/d). Capital investment range is unchanged.
- The Narrows Lake tie-back pipeline to Christina Lake is expected to achieve mechanical completion by the end of the year, and remains on schedule to deliver first oil mid-2025.
- At Sunrise, the company began steaming two well pads which will be brought on production in the third and fourth quarters of this year.
- Achieved significant milestones on the West White Rose project as the concrete gravity structure reached its final height and topsides were structurally completed.
- Safely completed the largest turnaround in the Lloydminster Upgrader’s history, with the facility now returned to full operations.
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Source: Cenovus Energy
