Cenovus posted an upbeat set of Q1 results reaffirming our base case view of the company. For the second consecutive quarter it delivered net income. Total production continues to rise and was up 19% year on year. Our five year production CAGR estimate for Cenovus is the strongest in the Focused Canadian peer group. Cenovus continued to make progress with cost reductions in Q1. Lower costs increasing production and an almost three fold increase in Cenovus crude sales price drove up net earnings to Cdn$211 million for the quarter. The results were slightly overshadowed by some shareholder discontent regarding the ConocoPhillips deal. However Cenovus announced it remains confident in the long term potential for the acquisition to transform the company.