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