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27 Pages

Cenovus Energy corporate - reported results analysis


Cenovus Energy corporate - reported results analysis

Report summary

Following the start-up of two growth projects in Q3 (Foster Creek Phase G and Christina Lake Phase F), production was up quarter on quarter. But full year 2016 production trended down on 2015 by about 3%. Oil sands production increased 7% on 2015. The company posted a net loss for the year.

The company’s cost-cutting initiative has enabled it to reduce its cash-flow breakeven to between US$45/bbl and US$50/bbl WTI. This allows for roughly 30% of the 2017 budget to be allocated to growth projects, notably Christina Lake phase G and the development of the short-cycle tight oil Palliser Block in southern Alberta.

However, as a result of Cenovus’ strong liquidity position there are now calls for the board to prioritise shareholder returns. Management has signalled that any increase to shareholder value will need to be sustainable, even at the bottom of the price cycle.


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Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Reported Results Analysis report provides rapid response analysis on company quarterly results and strategy presentations. Use it to gain the upper hand with Wood Mackenzie's opinion on the latest corporate developments.

Widely used by both the energy and financial sectors, our report gives you a unique perspective on key strategic and financial challenges, as well as opportunities facing this oil and gas company.

Wood Mackenzie provides an independent evaluation and expert opinion on the operational performance, strategy and future of the world's top oil and gas companies. Our unique, objective analysis helps you understand, validate, compare and challenge market and corporate views so you can assess strategic opportunities.

  • Q4 2016
    • Operational performance
    • Financial performance
  • Q3 2016
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
  • Q2 2016
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
  • Q1 2016
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
  • Q4 2015
    • Strategy / investment
    • Operational performance
    • Financial performance
    • M&A
  • Q3 2015
    • Strategy / investment
    • Operational performance
    • Financial performance
    • M&A
  • Q2 2015
    • Strategy / investment
    • Operational performance
    • Financial performance
    • M&A
  • Q1 2015
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
  • Q4 2014
    • Overview
    • Strategy / investment
    • Operational performance
    • Financial performance
  • Q3 2014
    • Overview
    • Strategy / Investment
    • Operational Performance
    • Financial Performance
    • M&A
  • Q2 2014
    • Overview
    • Strategy / Investment
    • Operational Performance
    • Financial Performance
  • Q1 2014
    • Overview
    • Strategy / Investment
    • Operational Performance
    • Financial Performance
    • M&A
  • Q4 2013
    • Overview
    • Strategy / Investment
    • Operational Performance
    • Financial Performance
  • Q3 2013
    • Overview
    • Strategy / investment
    • Operational Performance
    • Financial Performance
  • Q2 2013
    • Overview
    • Strategy / investment
    • Operational Performance
    • Financial Performance
  • Q1 2013
    • Overview
    • Strategy / investment
    • Operational Performance
    • Financial Performance
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