Including expansion phases already under construction and those with regulatory approval, Cenovus is on track to add approximately 400,000 bbls/d of additional gross oil sands production (approximately 200,000 bbls/d net) over the next five years. The company expects to bring on new phases at Foster Creek and Christina Lake at a cost of $22,000 to $25,000 per flowing barrel. Cenovus is also focused on maintaining industry-leading supply costs. At Foster Creek and Christina Lake, supply costs are approximately $35 to $45 per barrel. Supply costs are calculated as the long-term average West Texas Intermediate (WTI) oil price required to achieve a 9% after-tax return after all capital, operating and maintenance costs are considered.Solid financial performanceTotal third quarter cash flow surpassed $1.1 billion, a 41% increase from the same period a year earlier. The increase was due to higher oil production and improved operating cash flow from Cenovus’s refining business. Third quarter operating cash flow from refining more than doubled to $530 million, compared with the same period in 2011, driven by strong refining margins and increased refinery throughput. Cenovus’s third quarter operating earnings were $432 million, a 43% increase over 2011.
An Aerial Of Cenovus's Foster Creek Operation In Northern Alberta (Photo: Business Wire)
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