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GlobeNewswire·

Cenovus announces 2026 capital budget and corporate guidance

CVE
  • Cenovus Energy Inc. announced a 2026 capital budget of $5.0 billion to $5.3 billion, including $350 million in capitalized turnaround costs, with $4.7 billion to $5.0 billion in non-turnaround investment.
  • Upstream production is guided between 945,000 and 985,000 barrels of oil equivalent per day, reflecting a 4% year-over-year growth rate adjusted for the MEG Energy Corp acquisition.
  • Downstream crude throughput is projected between 430,000 and 450,000 barrels per day, representing a utilization rate of 91% to 95%.
  • General and administrative costs excluding stock-based compensation are expected to remain flat at $625 million to $675 million, with synergies offsetting the MEG acquisition impact.
  • Oil sands production guidance for 2026 is 755,000 to 780,000 bbls/d, supported by $3.5 billion to $3.6 billion in capital investment for sustaining operations and growth projects like Christina Lake North.
  • Conventional assets are expected to produce 120,000 to 125,000 BOE/d with $450 million to $500 million in capital investment, while offshore production targets 70,000 to 80,000 BOE/d with first oil from West White Rose expected in Q2 2026.
  • Downstream capital investment is projected between $600 million and $700 million, including $300 million for turnarounds, with Canadian Refining throughput at 105,000 to 110,000 bbls/d and U.S. Refining at 325,000 to 340,000 bbls/d.
  • The company's shareholder returns framework targets returning 50% of excess free funds flow when net debt exceeds $6.0 billion, 75% when debt is between $6.0 billion and $4.0 billion, and 100% once the $4.0 billion net debt target is reached.
  • Q4 2025 upstream production is expected between 910,000 and 920,000 BOE/d, with approximately $80 million in transaction-related expenses incurred from the MEG acquisition closing on November 13, 2025.
  • Planned maintenance in 2026 includes turnarounds at Foster Creek and Christina Lake in the second and third quarters, a Lloyd Upgrader maintenance in Q2, and a major turnaround at the Lima Refinery in the fall.
  • Cenovus updated its social commitments regarding Indigenous reconciliation and acceptance, while maintaining its environmental action approach despite navigating amendments to Canada's Competition Act.
  • Financial guidance assumptions include Brent prices of $64/barrel, WTI at $60/barrel, WCS at $47.50/barrel, AECO gas at $2.50/Mcf, and an exchange rate of $0.72 US$/C$.