Cenovus Energy Sees Capital Investment Of Up To $3.53B In 2025: Retail Sentiment Takes A Hit
By Stocktwits Inc | First Published Dec 12, 2024, 6:49 PM ISTThe firm expects a 4% year-over-year (YoY) increase in its downstream crude throughput of between 650,000 barrels per day (bbls/d) and 685,000 bbls/d.
Canadian oil and natural gas firm Cenovus Energy Inc. (CVE) announced its 2025 corporate guidance on Thursday, which includes capital investment of C$4.6 billion to C$5.0 billion (US$3.25 billion to US$3.53), upstream production of 805,000 barrels of oil equivalent per day (BOE/d) to 845,000 BOE/d, and downstream crude unit utilization of 90% to 95%.
Of the total capital investment figure announced, C$3.2 billion will go toward sustaining capital to maintain base production and support continued safe and reliable operations while an additional C$1.4 billion to C$1.8 billion will be directed towards advancing the company’s upstream growth projects.
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The firm expects a 4% year-over-year (YoY) increase in its downstream crude throughput of between 650,000 barrels per day (bbls/d) and 685,000 bbls/d.
CEO Jon McKenzie said the firm is entering the final year of a three-year investment cycle, which will drive planned production growth of 150,000 BOE/d by the end of 2028 and enable significant expansion of free funds flow.
“We will continue to be focused on controlling costs, improving the profitability of our strategic downstream business and optimizing our advantaged portfolio to deliver value for our shareholders,” he said.
The firm is anticipating a 7% YoY drop in its U.S. refining operating expenses to C$10.00/bbl to C$12.00/bbl, excluding turnaround costs.
It expects general and administrative (G&A) costs to remain flat relative to 2024, while expenses related to IT systems upgrades are expected to decline significantly as the project will be recalibrated through 2025.
Following the announcement, retail sentiment on Stocktwits inched lower into the ‘bearish’ territory (42/100) from ‘neutral’ a day ago, accompanied by high message volume.
NYSE-listed shares of Cenovus Energy have lost over 7% since the beginning of the year.
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