Authorization

Cenovus delivers strong 2019 financial and operating performance

CALGARY, Alberta, Feb. 12, 2020 (GLOBE NEWSWIRE) -- Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) continued to gain momentum in 2019, generating free funds flow of $361 million in the fourth quarter and approximately $2.5 billion for the year, reducing net debt by 22% year-over-year and completing construction on its Christina Lake phase G oil sands expansion in March. In the fourth quarter of 2019, Cenovus increased its dividend by 25% and reached full ramp-up of its crude-by-rail shipping capacity.
a??We continued to deliver on our commitments to shareholders last year,a?? said Alex Pourbaix, Cenovus President & Chief Executive Officer. a??While running safe and reliable operations, we maintained our industry-leading low cost structure, exercised capital discipline and enhanced shareholder value. And through increased rail capacity, we further improved our market access position, providing greater exposure to global oil pricing.a??Key fourth-quarter and 2019 developments

Reduced net debt by a further $289 million to $6.5 billion in the fourth quarter



Generated cash from operating activities of $740 million in the fourth quarter and $3.3 billion for the full year as well as adjusted funds flow of $678 millionA in the fourth quarter and $3.7 billionA for the full year



Reduced year-over-year upstream operating expenses through focused cost leadership



Exceeded crude-by-rail shipping target, achieving 106,000 barrels per day (bbls/d) loaded in December



Achieved fourth-quarter oil sands production of more than 374,000 bbls/d, up from 355,000 bbls/d in the third quarter of 2019 mainly due to reduced curtailment levels



2019 production & financial summary1



(for the period ended December 31)



2019
Q4



2018
Q4



% change



2019
Full year



2018
Full year



% change



Financial ($ millions, except per share amounts)























Cash from operating activities



740



485



53



3,285



2,154



53



Adjusted funds flow2



678



-36







3,724



1,674



122



Per share diluted



0.55



-0.03







3.03



1.36







Free funds flow2



361



-312







2,548



311



719



Operating earnings (loss) from continuing operations2



-164



-1,670







456



-2,755







Per share diluted



-0.13



-1.36







0.37



-2.24







Net earnings (loss) from continuing operations



113



-1,350







2,194



-2,916







Per share diluted



0.09



-1.10







1.78



-2.37







Capital investment



317



276



15



1,176



1,363



-14



Production (from continuing operations)3
(before royalties)























Oil sands (bbls/d)



374,132



326,481



15



354,257



362,996



-2



Deep Basin liquids3 (bbls/d)



26,197



28,111



-7



26,673



32,454



-18



Total liquids production from
continuing operations3 (bbls/d)



400,329



354,592



13



380,930



395,450



-4



Total natural gas (MMcf/d)



403



469



-14



424



528



-20



Total production from continuing operations (BOE/d)



467,448



432,713



8



451,680



483,458



-7

1 Cenovus adopted IFRS 16, a??Leases,a?? effective January 1, 2019; see full note in the Advisory.
2 Adjusted funds flow, free funds flow and operating earnings/loss are non-GAAP measures. See Advisory.
3 Includes oil and natural gas liquids (NGLs).
Financial highlights
In 2019, Cenovus increased cash from operating activities to approximately $3.3 billion from $2.2 billion the previous year and adjusted funds flow to about $3.7 billion from $1.7 billion in 2018. Cenovus had free funds flow of approximately $2.5 billion in 2019, an eight-fold increase from a year earlier, driven by higher adjusted funds flow andA disciplined capital spending. Fourth-quarter free funds flow was $361 million compared with a shortfall of $312 million in the same period of 2018.
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