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Cenovus Energy Management Discusses Q2 2012 Results - Earnings Call Transcript

Brian C. Ferguson

Thanks, Susan. Good morning. I'm pleased to report another solid quarter from the Cenovus team. We continue to deliver predictable, reliable oil growth and benefit from our integrated oil operations. We remain focused on building net asset value. This quarter we achieved a number of operational milestones. When you look at our second quarter results, you will see continued strong execution of our 10-year plan. In particular, you will note that despite substantially lower realized oil and gas prices in the quarter, our cash flow is essentially unchanged year-over-year. Our oil growth strategy is delivering, and this, combined with our downstream integration, is providing solid financial performance. John and Ivor will provide a more in-depth review of our operating and financial results, but I want to reiterate that our 2012 plans are unchanged. Our low-cost oil sands project, our strong balance sheet, our flexible conventional capital programs and our downstream integration allow us to be resilient in times of commodity price volatility.

Overall, we continued to deliver on our operating and financial objective and we remain on track with our development plans that we'll see expected oil production grow to 500,000 barrels per day net to Cenovus by the end of 2021.

I'll now turn the call over to our Chief Operating Officer, John Brannan.

John K. Brannan

Thank you, Brian, and good morning. I'm pleased to say that our momentum continued during the second quarter. Our oil sands operations posted strong production volumes with net production at Foster Creek and Christina Lake averaging more than 80,000 barrels per day at an average steam to oil ratio of 2.0. At Foster Creek, we safely completed our plant turnaround as planned, while maintaining the production impact to approximately 7,400 barrels net, or 14,800 barrels gross per day for the quarter.

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