Cenovus Raises Full-Year Production Guidance on Strong Oil Sands Performance
Cenovus Energy (CVE) reported Q2 earnings on Wednesday, raising its full-year upstream production guidance after stronger-than-expected performance from its oil sands operations helped offset maintenance-related disruptions elsewhere in its portfolio.The Canadian oil producer said it now expects total upstream production of between 970,000 million barrels of oil equivalent per day and 1.01 mmboe/d in 2026, an increase of 25,000 boe/d at the midpoint from its previous forecast.The company also said it remains on track to surpass more than 1 million boe/d of upstream production during July.Total upstream production averaged 970.4 mmboe/d in Q2, compared to 765.9 mmboe/d for the corresponding period a year ago.Output at Cenovus' flagship Christina Lake oil sands project rose to 372.1 million barrels per day in Q2, supported by strong well performance at Narrows Lake and continued progress on redevelopment drilling at Christina Lake North.The company said production at Foster Creek declined to 214.5 million b/d in Q2 after an unplanned operational disruption in late May, while output from the Sunrise project rose to 65.7 million b/d as production ramped up from its first well pad in the East development area.Production from Cenovus' Lloydminster thermal assets increased to 103.1 million b/d, while conventional heavy oil production in the region slipped to 28.4 million b/d.Production from the energy firm's conventional segment fell to 118.2 million boe/d, due to third-party maintenance activities.Offshore production declined to 65.8 million boe/d in Q2, due to planned maintenance in China and Indonesia that reduced Asia Pacific production to 51.2 million boe/d, while turnaround work at the Terra Nova field lowered Atlantic region output to 14.6 million b/d.On the downstream side, total crude throughput averaged 451.5 million b/d in Q2, down from 665.8 million b/d a year ago.Canadian refining throughput declined to 101.7 million b/d, representing a 94% utilization rate, after turnaround work at the Lloydminster Upgrader.The company lowered expected oil sands operating costs to $10.75-$11.75/boe/d, from $11.25-$12.75, while conventional operating cost guidance was reduced to $10.00-$10.50/boe/d from $11.00-$12.00.Cenovus also increased its Canadian refining throughput guidance to 110 million -115 million b/d, while lowering expected Canadian refining operating expenses to $10.50-$11.50/bbl, citing strong year-to-date operating performance.The company updated its commodity price assumptions and cash tax guidance but left its 2026 capital spending forecast unchanged at $5 billion to $5.3 billion.Price: $29.11, Change: $+1.45, Percent Change: +5.22%