Proved bitumen reserves up 7%
"We had strong operating performance in our oil sands and conventional businesses in 2014, with significant growth in oil sands production and additions to our portfolio of regulatory-approved projects," said Brian Ferguson, Cenovus President & Chief Executive Officer. "With low oil prices expected to persist through 2015, we plan to continue building our production capacity, but at a slower pace, focusing on expansion projects at Foster Creek and Christina Lake that are already well advanced."
Production & financial summary |
||||||||
(for the period ended December 31) Production (before royalties) |
2014 Q4 |
2013 Q4 |
% change |
2014 Full Year |
2013 Full Year |
% change |
||
Oil sands (bbls/d) |
142,213 |
113,890 |
25 |
128,195 |
102,500 |
25 |
||
Conventional oil1 (bbls/d) |
73,964 |
74,853 |
-1 |
75,298 |
76,775 |
-2 |
||
Total oil (bbls/d) |
216,177 |
188,743 |
15 |
203,493 |
179,275 |
14 |
||
Natural gas (MMcf/d) |
479 |
514 |
-7 |
488 |
529 |
-8 |
||
Financial ($ millions, except per share amounts) |
||||||||
Cash flow2 |
401 |
835 |
-52 |
3,479 |
3,609 |
-4 |
||
Per share diluted |
0.53 |
1.10 |
4.59 |
4.76 |
||||
Operating earnings2 |
-590 |
212 |
-378 |
633 |
1,171 |
-46 |
||
Per share diluted |
-0.78 |
0.28 |
0.84 |
1.55 |
||||
Net earnings |
-472 |
-58 |
-714 |
744 |
662 |
12 |
||
Per share diluted |
-0.62 |
-0.08 |
0.98 |
0.87 |
||||
Capital investment |
786 |
898 |
-12 |
3,051 |
3,262 |
-6 |
||
1 Includes natural gas liquids (NGLs). |
||||||||
2 Cash flow and operating earnings are non-GAAP measures as defined in the Advisory. |
CALGARY, Feb. 12, 2015 /CNW/ - Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) achieved solid production growth in 2014, driven by strong performance at its oil sands projects in northern Alberta. In addition, while the average benchmark price for Brent crude and West Texas Intermediate (WTI) decreased year over year, the company's upstream operations benefited from higher average prices for its heavy crude oil sold as Western Canadian Select (WCS). These factors, along with a weakening in the Canadian dollar versus the U.S. dollar, contributed to 19% higher upstream operating cash flow compared with 2013. This increase was more than offset by a sharp decline in operating cash flow from refining, largely due to lower average market crack spreads and higher heavy crude oil feedstock costs. Cenovus also increased its reserves base in 2014, achieving 193% production replacement.
"These are challenging times for the oil and gas industry," said Ferguson. "Cenovus is taking steps to ensure we remain strong during this market downturn. We have a solid foundation supported by great assets that provide us with the opportunity to create long-term value for investors."
In 2014, Cenovus achieved 25% production growth from its Christina Lake and Foster Creek oil sands operations, averaging more than 128,000 bbls/d net (256,000 bbls/d gross). Oil sands production volumes exceeded the company's full-year guidance by approximately 4,000 bbls/d net to Cenovus. Christina Lake production increased 40% to average about 69,000 bbls/d net after expansion phase E reached design capacity in early 2014. The facility also achieved a consistently high utilization rate for the year.
Foster Creek production averaged more than 59,000 bbls/d net in 2014, up 11% from the previous year. The production increase was the result of improved plant performance, continued optimization efforts and increased production from wells using Cenovus's Wedge WellTM technology. The company achieved first production from the phase F wells in September. Phase F, which added 30,000 bbls/d of gross production capacity, was producing approximately 4,000 bbls/d net (8,000 bbls/d gross) at the end of the year.
"We're pleased with the strong performance of our oil sands projects. Both Christina Lake and Foster Creek delivered reliable production with lower non-fuel operating costs per barrel and improved safety performance compared with 2013," said John Brannan, Executive Vice-President & Chief Operating Officer. "During this current period of lower oil prices, we're focusing on achieving additional cost savings to help keep our projects among the most cost efficient in the industry."
Cash flow was $3.5 billion in 2014, down 4% from the previous year, primarily due to an 82% decrease in operating cash flow from refining. In the fourth quarter of 2014, benchmark crude oil prices dropped sharply, and a narrowing of the Brent-WTI price differential contributed to lower average market crack spreads for the year. In addition, Cenovus's refining feedstock cost advantage - the price differential between WCS and WTI - narrowed in 2014 compared with the previous year, which increased heavy crude oil feedstock costs. As well, in the fourth quarter, refining operating cash flow was negatively impacted by an inventory writedown of $110 million and a $163 million adjustment related to accounting policy differences between Canada and the U.S. These adjustments were related to the decline in refined product and crude oil prices late in 2014.
Cenovus's operating and net earnings were negatively affected in 2014 by a $497 million non-cash goodwill impairment associated with Pelican Lake. The impairment was caused by a decline in forecast crude oil prices as well as a slowing of the development plan at Pelican Lake. There were no goodwill impairments in 2013. Cenovus also had non-cash asset impairments of $151 million related to tight oil exploration activities as well as to property, plant and equipment.
Cenovus had free cash flow of $428 million in 2014, 23% higher than in 2013, after capital investment of approximately $3.1 billion.
"We ended 2014 in a solid financial position with approximately $900 million in cash and cash equivalents on our balance sheet and debt ratios well within our target ranges," said Ferguson. "In the current challenging oil price environment, we're reducing capital spending in order to help preserve our financial resilience. As well, we have additional flexibility to further reduce capital spending if oil prices continue to fall or remain low for an extended period."
Cenovus is undertaking various measures to reduce its costs, including an expected 15% staff reduction, the bulk of which will come from its contract workforce. Employee salary increases have also been suspended for 2015 and the company is significantly reducing its discretionary spending, including spending on travel, conferences, offsite meetings and information technology upgrades.
Continued additions to reserves
Cenovus continued to add to its reserves in 2014. Proved bitumen reserves increased 7% in the year to almost two billion bbls, and proved plus probable bitumen reserves increased 30% to 3.3 billion bbls. Total proved reserves gained 4%, while total proved plus probable reserves increased 22%, according to the company's independent reserves and contingent resources evaluation. As a result of the large growth in proved plus probable bitumen reserves, economic bitumen best estimate contingent resources declined approximately 5% to 9.3 billion bbls from 2013.
Maximizing shareholder value
Cenovus has been evaluating opportunities to crystalize value for shareholders from its existing portfolio of assets. The options available to the company to maximize the value of its fee lands include a possible sale or initial public offering. Cenovus is market-ready to pursue various potential options with respect to its fee lands when the timing presents itself. In 2014, royalty interest production from these conventional oil and natural gas properties provided approximately 7,600 barrels of oil equivalent per day (BOE/d). This resulted in operating cash flow of about $150 million for Cenovus.
Oil Projects |
||||||||||||
Daily production1 |
||||||||||||
(Before royalties) (Mbbls/d) |
2014 |
2013 |
2012 |
|||||||||
Full Year |
Q4 |
Q3 |
Q2 |
Q1 |
Full Year |
Q4 |
Q3 |
Q2 |
Q1 |
Full Year |
||
Oil sands |
||||||||||||
Christina Lake |
69 |
74 |
68 |
68 |
66 |
49 |
61 |
53 |
38 |
44 |
32 |
|
Foster Creek |
59 |
68 |
57 |
57 |
55 |
53 |
52 |
49 |
55 |
56 |
58 |
|
Oil sands total |
128 |
142 |
125 |
125 |
120 |
103 |
114 |
102 |
94 |
100 |
90 |
|
Conventional oil |
||||||||||||
Pelican Lake |
25 |
26 |
24 |
25 |
25 |
24 |
25 |
25 |
24 |
24 |
23 |
|
Weyburn |
16 |
16 |
16 |
16 |
16 |
16 |
16 |
16 |
16 |
17 |
16 |
|
Other conventional2 |
34 |
32 |
34 |
36 |
36 |
36 |
34 |
34 |
37 |
39 |
37 |
|
Conventional total |
75 |
74 |
74 |
77 |
76 |
77 |
75 |
75 |
77 |
80 |
76 |
|
Total oil |
203 |
216 |
199 |
202 |
197 |
179 |
189 |
177 |
171 |
180 |
165 |
1 Totals may not add due to rounding. |
2 Includes NGLs production. |
Oil sands
Cenovus has a substantial portfolio of oil sands assets in northern Alberta with the potential to provide decades of production growth. The two operations currently producing, Christina Lake and Foster Creek, use steam-assisted gravity drainage (SAGD), which involves drilling into the reservoir and injecting steam at low pressures to soften the thick oil so it can be pumped to the surface. Cenovus has a third major oil sands project under initial development at Narrows Lake, which is part of the Christina Lake region. These projects are operated by Cenovus and jointly owned with ConocoPhillips. Cenovus has a significant opportunity to deliver increased shareholder value over the long term through production growth from several identified emerging projects and additional future developments.
Christina Lake
Production
Expansions
Foster Creek
Production
Expansions
Narrows Lake
Emerging projects
Grand Rapids
Telephone Lake
Conventional Oil
Cenovus has tight oil opportunities in Alberta as well as the established Weyburn operation in Saskatchewan that uses carbon dioxide injection to enhance oil recovery. Cenovus also produces conventional heavy oil from the Wabiskaw formation at its 100%-owned Pelican Lake operation in northern Alberta. Cenovus has been injecting polymer since 2006 to enhance production from the reservoir, which is also under waterflood.
Natural Gas |
|||||||||||
Daily production |
|||||||||||
(Before royalties) (MMcf/d) |
2014 |
2013 |
2012 |
||||||||
Full Year |
Q4 |
Q3 |
Q2 |
Q1 |
Full Year |
Q4 |
Q3 |
Q2 |
Q1 |
Full Year |
|
Natural gas |
488 |
479 |
489 |
507 |
476 |
529 |
514 |
523 |
536 |
545 |
594 |
Cenovus has a solid base of established, reliable natural gas properties in Alberta. These properties are managed as financial assets, not production assets, generating operating cash flow well in excess of their ongoing capital investment requirements. The natural gas business also acts as an economic hedge against price fluctuations because natural gas fuels the company's oil sands and refining operations.
Market Access
Cenovus is concentrating on finding new customers in North America and around the world and is working to enhance its ability to move its oil to these customers. The company continues to support proposed pipelines to Canada's east and west coasts as well as to the U.S. to provide additional shipping capacity for its expected production growth. To complement its pipeline strategy, Cenovus takes a portfolio approach to marketing and transportation that also includes rail.
Refining
Cenovus's refining operations allow the company to capture value from crude oil production through to refined products such as diesel, gasoline and jet fuel. This integrated strategy provides a natural economic hedge to discounted crude oil prices by providing lower feedstock costs to the Wood River Refinery in Illinois and the Borger Refinery in Texas, which Cenovus jointly owns with the operator, Phillips 66.
Financial
Operations
Reserves and Contingent Resources
All of Cenovus's reserves and resources are evaluated each year by independent qualified reserves evaluators (IQREs).
Proved reserves reconciliation |
||||
(Before royalties) |
Bitumen (MMbbls) |
Heavy Oil (MMbbls) |
Light & Medium Oil & NGLs (MMbbls) |
Natural Gas & CBM (Bcf) |
Start of 2014 |
1,846 |
179 |
115 |
865 |
Extensions & improved recovery |
108 |
14 |
17 |
23 |
Technical revisions |
63 |
(13) |
1 |
98 |
Economic factors |
0 |
0 |
0 |
(12) |
Acquisitions |
0 |
0 |
0 |
2 |
Divestitures |
0 |
(10) |
(1) |
(5) |
Production1 |
(47) |
(14) |
(12) |
(175) |
End of 2014 |
1,970 |
156 |
120 |
796 |
% Change |
7 |
(13) |
4 |
(8) |
Developed Undeveloped |
238 1,732 |
116 40 |
98 22 |
792 4 |
Total proved |
1,970 |
156 |
120 |
796 |
Total probable |
1,330 |
123 |
46 |
260 |
Total proved plus probable |
3,300 |
279 |
166 |
1,056 |
1 Production used for the reserves reconciliation differs from reported production as it includes Cenovus |
Proved reserves costs1 |
|||
(Before royalties) |
2014 |
2013 |
3 Year |
Capital Investment ($ millions) |
|||
Finding and Development |
2,782 |
3,026 |
8,821 |
Finding, Development and Acquisitions |
2,800 |
3,058 |
8,985 |
Proved Reserves Additions2 (MMBOE) |
|||
Finding and Development |
208 |
208 |
749 |
Finding, Development and Acquisitions |
208 |
208 |
751 |
Proved Reserves Costs2 ($/BOE) |
|||
Finding and Development3 |
13.39 |
14.51 |
11.77 |
Finding, Development and Acquisitions4 |
13.46 |
14.67 |
11.97 |
1 Finding and Development Cost calculations presented in the table do not include changes in future development costs. |
|||
2 Reserves Additions for Finding and Development are calculated by summing technical revisions, extensions and improved |
|||
3 Finding and Development Costs without changes in future development costs is equal to Finding and Development Capital |
|||
4 Finding, Development and Acquisitions without changes in future development costs is equal to Finding, Development |
Financial
Dividend
The Cenovus Board of Directors declared a first quarter dividend of $0.2662 per share, payable on March 31, 2015 to common shareholders of record as of March 13, 2015. Based on the February 11, 2015 closing share price on the Toronto Stock Exchange of $24.68, this represents an annualized yield of about 4.3%. Declaration of dividends is at the sole discretion of the Board. Cenovus's continued commitment to a meaningful dividend is an important aspect of its strategy to focus on increasing total shareholder return.
To help further support balance sheet flexibility, the company has approved an update to its dividend reinvestment plan (DRIP), which permits shareholders to automatically reinvest cash dividends paid on their common shares in additional common shares. Cenovus intends to offer shareholders who wish to take advantage of the DRIP a 3% discount to the average market price for its shares. The company plans to issue common shares under the DRIP from treasury.
Cash flow, earnings and capital investment
Risk management, G&A expenses and financial ratios
Operating earnings1 |
|||||
(for the period ended December 31) ($ millions, except per share amounts) |
2014 Q4 |
2013 Q4 |
2014 Full Year |
2013 Full Year |
|
Earnings (loss) before income tax Add back (deduct): |
(520) |
(22) |
1,195 |
1,094 |
|
Unrealized risk management (gains) losses2 |
(416) |
219 |
(596) |
415 |
|
Non-operating unrealized foreign exchange (gains) losses3 |
186 |
(39) |
458 |
52 |
|
Realized foreign exchange loss on Partnership contribution |
- |
146 |
- |
146 |
|
(Gains) losses on divestiture of assets |
1 |
- |
(156) |
1 |
|
Operating earnings (loss), before income tax |
(749) |
304 |
901 |
1,708 |
|
Income tax expense (recovery) |
(159) |
92 |
268 |
537 |
|
Operating earnings |
(590) |
212 |
633 |
1,171 |
|
1 Operating earnings is a non-GAAP measure as defined in the Advisory. |
|||||
2 The unrealized risk management (gains) losses include the reversal of unrealized (gains) losses recognized |
|||||
3 Includes unrealized foreign exchange (gains) losses on translation of U.S. dollar denominated notes issued |
Conference Call Today |
ADVISORY
FINANCIAL INFORMATION
Basis of Presentation Cenovus reports financial results in Canadian dollars and presents production volumes on a net to Cenovus before royalties basis, unless otherwise stated. Cenovus prepares its financial statements in accordance with International Financial Reporting Standards (IFRS).
Non-GAAP Measures This news release contains references to non-GAAP measures as follows:
These measures have been described and presented in this news release in order to provide shareholders and potential investors with additional information regarding Cenovus's liquidity and its ability to generate funds to finance its operations. For further information, refer to Cenovus's most recent Management's Discussion & Analysis (MD&A) available at cenovus.com.
OIL AND GAS INFORMATION
The estimates of reserves and resources data and related information were prepared effective December 31, 2014 by independent qualified reserves evaluators ("IQREs"), based on the Canadian Oil and Gas Evaluation Handbook and in compliance with the requirements of National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. Estimates are presented using McDaniel & Associates Consultants Ltd. ("McDaniel") January 1, 2015 price forecast. Cenovus holds significant fee title rights which generate production for the company's account from third parties leasing those lands. The before royalties volumes presented in the reserves reconciliation (i) do not include reserves associated with this production and (ii) the production differs from other publicly reported production as it includes Cenovus gas volumes provided to the FCCL Partnership for steam generation, but does not include royalty interest production.
Resources Information
Best estimate is considered to be the best estimate of the quantity of resources that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. Those resources that fall within the best estimate have a 50% probability that the actual quantities recovered will equal or exceed the estimate. Contingent resources are those quantities of bitumen estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include such factors as economic, legal, environmental, political and regulatory matters or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Contingent resources are further classified in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by their economic status. The McDaniel estimates of contingent resources have not been adjusted for risk based on the chance of development. There is no certainty that it will be commercially viable to produce any portion of the contingent resources.
Economic contingent resources are those contingent resources that are currently economically recoverable based on specific forecasts of commodity prices and costs. Economic contingent resources are estimated using volumetric calculations of the in-place quantities, combined with performance from analog reservoirs. Existing SAGD projects that are producing from the McMurray-Wabiskaw formations are used as performance analogs at Foster Creek and Christina Lake. Other regional analogs are used for contingent resources estimation in the Cretaceous Grand Rapids formation at the Grand Rapids property in the Pelican Lake region, in the McMurray formation at the Telephone Lake property in the Borealis region and in the Clearwater formation in the Foster Creek region.
Contingencies which must be overcome to enable the reclassification of contingent resources as reserves can be categorized as economic, non-technical and technical. The Canadian Oil and Gas Evaluation Handbook identifies non-technical contingencies as legal, environmental, political and regulatory matters or a lack of markets. Technical contingencies include available infrastructure and project justification. The outstanding contingencies applicable to our disclosed economic contingent resources do not include economic contingencies.
Our bitumen contingent resources are located in four general regions: Foster Creek, Christina Lake, Borealis and Greater Pelican. Further information in respect of contingencies faced in these four regions is included in our Annual Information Form.
Barrels of Oil Equivalent Certain natural gas volumes have been converted to barrels of oil equivalent (BOE) on the basis of six Mcf to one bbl. BOE may be misleading, particularly if used in isolation. A conversion ratio of one bbl to six Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent value equivalency at the wellhead.
Netbacks reported in this news release are calculated as set out in the AIF. Heavy oil prices and transportation and blending costs exclude the costs of purchased condensate, which is blended with heavy oil. For 2014, the cost of condensate on a per barrel of unblended crude oil basis was as follows: Christina Lake - $45.45 and Foster Creek - $42.01.
Finding and Development Costs Finding and development costs disclosed in this news release and used for calculating our recycle ratio do not include the change in estimated future development costs. Cenovus uses finding and development costs without changes in estimated future development costs as an indicator of relative performance to be consistent with the methodology accepted within the oil and gas industry.
Finding and development costs for proved reserves, excluding the effects of acquisitions and dispositions but including the change in estimated future development costs were $31.65/BOE for the year ended December 31, 2014, $32.97/BOE for the year ended December 31, 2013 and averaged $29.27/BOE for the three years ended December 31, 2014. Finding and development costs for proved plus probable reserves, excluding the effects of acquisitions and dispositions but including the change in estimated future development costs were $19.38/BOE for the year ended December 31, 2014, $40.85/BOE for the year ended December 31, 2013 and averaged $22.98/BOE for the three years ended December 31, 2014. These finding and development costs were calculated by dividing the sum of exploration costs, development costs and changes in future development costs in the particular period by the reserves additions (the sum of extensions and improved recovery, discoveries, technical revisions and economic factors) in that period. The aggregate of the exploration and development costs incurred in a particular period and the change during that period in estimated future development costs generally will not reflect total finding and development costs related to reserves additions for that period.
FORWARD-LOOKING INFORMATION
This document contains certain forward-looking statements and other information (collectively "forward-looking information") about Cenovus's current expectations, estimates and projections, made in light of the company's experience and perception of historical trends. Forward-looking information in this document is identified by words such as "anticipate", "believe", "expect", "plan", "forecast" or "F", "target", "projected", "future", "could", "should", "focus", "proposed", "schedule", "potential", "capacity", "may", "strategy" or similar expressions and includes suggestions of future outcomes, including statements about: growth strategy and related schedules; projections contained in the company's 2015 guidance; anticipated finding and development costs; expected reserves and resources additions; forecast operating and financial results; planned capital expenditures; project capacities; expected future production, including the timing, stability or growth thereof; future cost savings and project costs, including relative to the industry; potential options with respect to maximizing the value of the company's royalty fee lands; forecast natural gas use at operations; expected SOR; expected increase in production capacity through optimization activity; operating cash flow relative to ongoing capital investment requirements for properties; expected future refining capacity; broadening market access; improving cost structures; dividend plans and dividend strategy, including with respect to the dividend reinvestment plan; anticipated timelines for future regulatory, partner or internal approvals; future impact of regulatory measures; forecasted commodity prices; future use and development of technology; targeted future debt to capitalization and debt to adjusted EBITDA; and projected shareholder value and total shareholder return. Readers are cautioned not to place undue reliance on forward-looking information as the company's actual results may differ materially from those expressed or implied.
Developing forward-looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to Cenovus and others that apply to the industry generally.
The factors or assumptions on which the forward-looking information is based include: assumptions disclosed in Cenovus's current guidance, available at cenovus.com; projected capital investment levels, the flexibility of capital spending plans and the associated source of funding; estimates of quantities of oil, bitumen, natural gas and liquids from properties and other sources not currently classified as proved; the company's ability to obtain necessary regulatory and partner approvals; the successful and timely implementation of capital projects or stages thereof; the company's ability to generate sufficient cash flow from operations to meet the company's current and future obligations; and other risks and uncertainties described from time to time in the filings Cenovus makes with securities regulatory authorities.
2015 guidance, available at cenovus.com, is based on an average diluted number of shares outstanding of approximately 760 million. It assumes: Brent US$53.50/bbl, WTI US$50.50/bbl; Western Canada Select US$36.25/bbl; NYMEX US$3.00/MMBtu; AECO $2.70/GJ; Chicago 3-2-1 Crack Spread US$11.75/bbl; Exchange Rate of $0.83 US$/C$.
Underlying assumptions in Cenovus's calculation of supply costs include: price forecast and associated royalties, capital costs, operating expenses, reservoir performance and discount rates. The company's supply costs are estimated using these assumptions to generate a long-term WTI price that provides a project-specific after-tax rate of return of at least 9% on future capital investment.
The risk factors and uncertainties that could cause Cenovus's actual results to differ materially include: volatility of and assumptions regarding oil and gas prices; the effectiveness of the company's risk management program, including the impact of derivative financial instruments, the success of the company's hedging strategies and the sufficiency of the company's liquidity position; the accuracy of cost estimates; fluctuations in commodity prices, currency and interest rates; fluctuations in product supply and demand; market competition, including from alternative energy sources; risks inherent in the company's marketing operations, including credit risks; maintaining desirable ratios of debt to adjusted EBITDA as well as debt to capitalization; the company's ability to access various sources of debt and equity capital, generally, and on terms acceptable to Cenovus; changes in credit ratings applicable to Cenovus or any of its securities; changes to the company's dividend plans or strategy, inclduing the dividend reinvestment plan; accuracy of reserves, resources and future production estimates; Cenovus's ability to replace and expand oil and gas reserves; Cenovus's ability to maintain its relationships with its partners and to successfully manage and operate its integrated heavy oil business; reliability of the company's assets; potential disruption or unexpected technical difficulties in developing new products and manufacturing processes; refining and marketing margins; potential failure of new products to achieve acceptance in the market; unexpected cost increases or technical difficulties in constructing or modifying manufacturing or refining facilities; unexpected difficulties in producing, transporting or refining crude oil into petroleum and chemical products; risks associated with technology and its application to Cenovus's business; the timing and the costs of well and pipeline construction; the company's ability to secure adequate product transportation, including sufficient crude-by-rail or other alternate transportation; changes in the regulatory framework in any of the locations in which Cenovus operates, including changes to the regulatory approval process and land-use designations, royalty, tax, environmental, greenhouse gas, carbon and other laws or regulations, or changes to the interpretation of such laws and regulations, as adopted or proposed, the impact thereof and the costs associated with compliance; the expected impact and timing of various accounting pronouncements, rule changes and standards on Cenovus's business, financial results and its Consolidated Financial Statements; changes in the general economic, market and business conditions; the political and economic conditions in the countries in which Cenovus operates; the occurrence of unexpected events such as war, terrorist threats and the instability resulting therefrom; and risks associated with existing and potential future lawsuits and regulatory actions against Cenovus.
Readers are cautioned that the foregoing lists are not exhaustive and are made as at the date hereof. For a full discussion of our material risk factors, see "Risk Factors" in Cenovus's most recent Annual Information Form/Form 40-F, "Risk Management" in Cenovus's current and annual MD&A and risk factors described in other documents Cenovus files from time to time with securities regulatory authorities, all of which are available on SEDAR at sedar.com, EDGAR at sec.gov and the company's website at cenovus.com.
TM denotes a trademark of Cenovus Energy Inc.
Cenovus Energy Inc.
Cenovus Energy Inc. is a Canadian integrated oil company. It is committed to applying fresh, progressive thinking to safely and responsibly unlock energy resources the world needs. Operations include oil sands projects in northern Alberta, which use specialized methods to drill and pump the oil to the surface, and established natural gas and oil production in Alberta and Saskatchewan. The company also has 50% ownership in two U.S. refineries. Cenovus shares trade under the symbol CVE, and are listed on the Toronto and New York stock exchanges. Its enterprise value is approximately $24 billion. For more information, visit cenovus.com.
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SOURCE Cenovus Energy Inc.
Image with caption: "Steam generators at Cenovus's Foster Creek project in northern Alberta. The project uses a process called steam-assisted gravity drainage (SAGD) to produce oil, which involves drilling into the reservoir and injecting steam at a low pressure to soften the oil so it can be pumped to the surface. (CNW Group/Cenovus Energy Inc.)". Image available at: http://photos.newswire.ca/images/download/20150212_C8832_PHOTO_EN_12019.jpg
Image with caption: "Cenovus's Christina Lake project in northern Alberta uses steam-assisted gravity drainage (SAGD) to produce oil. The process involves drilling into the reservoir and injecting steam at a low pressure to soften the oil so it can be pumped to the surface. (CNW Group/Cenovus Energy Inc.)". Image available at: http://photos.newswire.ca/images/download/20150212_C8832_PHOTO_EN_12020.jpg
For further information: CENOVUS CONTACTS: Investor Relations, Susan Grey, Director, Investor Relations, 403-766-4751; Media: Brett Harris, Media Lead, 403-766-3420; Graham Ingram, Senior Analyst, Investor Relations, 403-766-2849; Reg Curren, Senior Media Advisor, 403-766-2004; Anna Kozicky, Senior Analyst, Investor Relations, 403-766-4277; General media line: 403-766-7751; Steve Murray, Senior Analyst, Investor Relations, 403-766-3382
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