Wednesday, January 28, 2015

Cenovus Energy Inc. - CVE.t

Cenovus Energy Inc. - CVE.t operates two producing steam-assisted gravity drainage (SAGD) projects in the oil sands – Foster Creek and Christina Lake – as well as several emerging projects, which are in various stages of development.

Foster Creek and Christina Lake are 50 percent owned by ConocoPhillips. The company also produces heavy oil from the mobile Wabiskaw formation at Pelican Lake. Cenovus has a 50 percent interest in their Wood River (Illinois) and Borger (Texas) refineries which Phillips 66 operates.

On January 29, 2015 the company released News

"Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) is further reducing its 2015 capital spending in order to preserve cash and maintain the strength of its balance sheet. The company has identified approximately $700 million in additional capital expenditures originally planned for 2015 that can be deferred until crude oil prices recover.

“We have great assets, we’re in a strong financial position and we have the flexibility in our capital plan to make these additional spending reductions without compromising strategic growth projects,” said Brian Ferguson, Cenovus President & Chief Executive Officer. “Our plan is to continue to pursue our long-term growth strategy, but at a pace we believe is more in line with the current pricing environment.”

In December 2014, Cenovus announced a 2015 capital spending budget of between $2.5 billion and $2.7 billion, an approximate 15% reduction from 2014 levels. Since December, crude oil prices have continued to weaken and the company is anticipating prices may remain low through 2015. As a result, Cenovus has revised its 2015 capital budget and is now targeting capital spending this year of between $1.8 billion and $2.0 billion. As part of its prudent approach to financial management, the company will continue to assess its spending plans on a regular basis and has the ability to make further budget adjustments, if required. In addition to capital flexibility, Cenovus continues to evaluate other corporate and financial opportunities, including generating cash from its existing portfolio."