Cenovus EnergyNYSE: CVE

Cenovus delivered a solid Q3 with upstream production above expectations as the turnaround at Christina Lake was finished ahead of time. Downstream remains a drag on group performance, yet management is actively adressing challenges, with key work at its Lima refinery done during the turnaround and feedstock cost effects likely easing. With relative valuation at its lowest in several years, we reiterate shares at Overweight and a ~84% upside to our US$30/sh price target.

A second Trump administration is likely to affect most, if not all, corners of the stock market, there are few areas expected to be impacted as significantly as the energy sector.

CALGARY, Alberta, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) announced today that the Toronto Stock Exchange (“TSX”) has approved the renewal of the company's normal course issuer bid (“NCIB”) to purchase up to 127,489,549 common shares during the 12-month period commencing November 11, 2024 and ending November 10, 2025.

Cenovus Energy should perform better as an integrated company than it did in the past when the business was mostly upstream during cyclical downturns. Earnings showed improvement over the past. The progress will become significant to the market. Heavy Oil and Oil Sands offer the most significant cost reduction potential.

Canada's rich reserves and export growth make Cenovus Energy a compelling dividend stock, especially with rising U.S. demand and expanded access to Asian markets. Cenovus' integration of upstream and downstream assets strengthens its profitability. Strategic pipelines and refinery access further boost its long-term value. With steady cash flow, a solid balance sheet, and aggressive shareholder returns, CVE is well-positioned for growth, making it a key pick for dividend income.

CVE's Q3 earnings lag estimates but revenues beat the same. Both the top and bottom lines decrease year over year.

Cenovus Energy Inc. (NYSE:CVE ) Q3 2024 Earnings Conference Call October 31, 2024 10:00 AM ET Company Participants Patrick Read - VP, IR Jon McKenzie - CEO Kam Sandhar - EVP, Strategy and Corporate Development Keith Chiasson - EVP, Downstream Geoff Murray - EVP, Commercial Conference Call Participants Dennis Fong - CIBC World Markets Greg Pardy - RBC Capital Markets John Royall - JPMorgan Menno Hulshof - TD Securities Neil Mehta - Goldman Sachs Manav Gupta - UBS Travis Wood - National Bank Financial Patrick O'Rourke - ATB Capital Markets Operator Good morning, ladies and gentlemen. Welcome to Cenovus Energy's Third Quarter Results Conference Call.

Cenovus Energy (CVE) came out with quarterly earnings of $0.31 per share, missing the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.72 per share a year ago.

CALGARY, Alberta, Oct. 31, 2024 (GLOBE NEWSWIRE) -- Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) today announced its financial and operating results for the third quarter of 2024. The company generated nearly $2.5 billion in cash from operating activities, $2.0 billion of adjusted funds flow and $614 million of free funds flow in the quarter. Upstream production of more than 771,000 barrels of oil equivalent per day (BOE/d)1 was slightly lower compared with the second quarter primarily because of turnaround activity at the Christina Lake oil sands facility. Turnaround impacts to production were lower than forecast, as Christina Lake completed its turnaround ahead of schedule. In the downstream, total throughput increased by about 20,000 barrels per day (bbls/d) from the second quarter to almost 643,000 bbls/d, and a major turnaround was successfully completed at the Lima Refinery.