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Aerial View Of Cenovus's Christina Lake Plant Site. (Photo: Cenovus)

Cenovus Energy Inc. (TSX, NYSE: CVE):

Aerial view of Cenovus's Christina Lake plant site. (Photo: Cenovus)

Aerial view of Cenovus's Christina Lake plant site. (Photo: Cenovus)

  • Total oil production averaged more than 155,000 barrels per day (bbls/d), a 28% increase compared with the same period a year earlier.
  • Oil sands production at Foster Creek and Christina Lake averaged more than 80,000 bbls/d in the second quarter, a 38% increase compared with 2011.
  • Cenovus began injecting steam at Christina Lake phase D, with production anticipated in the third quarter.
  • Refining operations generated $344 million in operating cash flow, up $22 million from the second quarter in 2011.
  • Cash flow was $925 million in the second quarter, a slight decrease compared with the same period a year earlier due to weaker commodity prices during the quarter.
  • Capital investment in the quarter increased 39% to $660 million compared with the same period in 2011 as the company continued to expand the development of its oil assets.
  • Cenovus received regulatory approval for its Narrows Lake oil sands development, which is expected to have a gross production capacity of 130,000 bbls/d.

“Cenovus has a clearly defined 10-year growth plan, which is expected to deliver predictable, reliable performance,” said Brian Ferguson, Cenovus President & Chief Executive Officer. “We’re consistently growing oil production while maintaining our focus on low-cost operations and continuing to demonstrate the value of our integrated approach with strong refining margins.”

Financial & Production Summary

(for the period ended June 30)($ millions, except per share amounts)

 

 

2012 Q2

 

 

2011Q2

 

 

% change

Cash flow 1

Per share diluted

925

1.22

939

1.24

-1.5
Operating earnings 1

Per share diluted

283

0.37

395

0.52

-28
Net earnings

Per share diluted

396

0.52

655

0.86

-40
Capital investment 2 660 476 39
Production (before royalties)      
Foster Creek (bbls/d) 51,740 50,373 3
Christina Lake (bbls/d) 28,577 7,880 263
Total Foster Creek & Christina Lake (bbls/d) 80,317 58,253 38

Pelican Lake (bbls/d)

22,410 19,427 15
Other conventional oil 3 (bbls/d) 52,839 44,082 20
Total oil production (bbls/d) 155,566 121,762 28
Natural gas (MMcf/d) 596 654 -9

1 Cash flow and operating earnings are non-GAAP measures as defined in the Advisory. See also the Earnings Reconciliation Summary.

2 Includes expenditures on property, plant and equipment and exploration and evaluation assets, excluding acquisitions and divestitures.

3 Includes natural gas liquids (NGLs) production.

Cenovus Energy Inc. (TSX, NYSE: CVE) delivered strong performance during the second quarter, led by significant increases in oil production and favourable refining results. The company increased capital spending in the quarter and remained focused on expanding the development of its oil sands properties, as well as investing in the growth of its conventional oil assets in Alberta and Saskatchewan.

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