Cenovus Energy's Operating Plan for 2026 and Beyond Seen as Achievable — Market Talk

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(16:32 GMT) Cenovus Energy Inc. Price Target Raised to C$33.50/Share From C$33.00 by Desjardins Securities

Ratings actions from Baystreet: http://www.baystreet.ca

Cenovus Energy's 2026 outlook for upstream production, refining throughput, and capital spending is broadly in line with expectations, according to Scotiabank analyst Kevin Fisk. He notes capital guidance of C$5.0-C$5.3 billion, or C$4.7-C$5.0 billion excluding turnaround costs, are about 2% above consensus. Operating costs in the oil sands and integration expenses are projected to be slightly higher than anticipated, tempering the otherwise steady guidance. (adriano.marchese@wsj.com)

OTTAWA (dpa-AFX) - Cenovus Energy Inc. (CVE), an oil and gas company, Thursday announced its capital budget for 2026 and provided an update for the fourth quarter of 2025.

The company expects capital investment of between $5 billion and $5.3 billion, including around $350 million of capitalized turnaround costs. Excluding the turnaround costs capital investment is expected to be between $4.7 billion and $5 billion.

Upstream production of between 945,000 BOE/d and 985,000 BOE/d, showing a year-over-year growth rate of approximately 4.1 percent.

Downstream crude throughput of between 430,000 bbls/d or barrels per day and 450,000 bbls/d, representing a crude utilization rate of approximately 91 percent to 95 percent.

Looking forward to the fourth quarter of 2025, the company is considering the impact of the MEG acquisition, which closed on November 13, 2025, and is expecting upstream production in the fourth quarter to be between 910 MBOE/d and 920 MBOE/d.

In addition, certain one-time benefits related to the MEG acquisition are expected to be accelerated, shifting a portion of that benefit from 2026 into 2025, Cenovus said in a statement.

In pre-market activity, CVE shares were trading at $17.80, down 0.34% on the New York Stock exchange.

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By Adriano Marchese

Cenovus Energy plans to ramp up production across its portfolio, part of its new capital plan for 2026.

The Canadian energy company on Thursday said it has earmarked between 5 billion Canadian dollars (US$3.62 billion) and C$5.3 billion to put toward its new 2026 budget plan.

The Calgary, Alberta, company is forecasting upstream production of between 945,000 and 985,000 barrels of oil equivalent a day, which would represent a growth rate of about 4% over the prior year.

The new production figures include the contributions from its recent acquisition of MEG Energy, which closed last month after a high-profile bidding war in which Cenovus outmaneuvered Canadian rival Strathcona Resources. The cash-and-stock deal, worth about C$7.9 billion, secured MEG's Christina Lake oil-sands assets for Cenovus and created one of Canada's largest oil-sands producers.

From its oil-sands portfolio, Cenovus is guiding for production of 755,000 to 780,000 barrels a day while conventional production is expected to contribute about 120,000 to 125,000 barrels a day. Offshore production is projected to be between 70,000 and 80,000 barrels a day.

Downstream production, which involves refining crude oil and gas, is expected to have a crude throughput of between 430,000 and 450,000 barrels a day, representing a crude-utilization rate of about 91% to 95%.

General and administrative costs, excluding stock-based compensation, are expected to remain flat relative to 2025 at C$625 million to C$675 million, with cost reductions and synergies offsetting the impact of the MEG acquisition.

Chief Executive Jon McKenzie said Cenovus is ready to boost production at its Foster Creek oil-sands project in northeastern Alberta and the West White Rose offshore field off Newfoundland and Labrador, and that it is also positioned to move forward with the expansion of its newly acquired Christina Lake North oil-sands asset in northeastern Alberta.

For the current fourth quarter, Cenovus said it expects to produce between 910,000 and 920,000 barrels of oil equivalent a day, including contributions from MEG Energy.

Write to Adriano Marchese at adriano.marchese@wsj.com