Business
Cenovus oil production anticipated to grow 10% in 2014
Capital investment reduced; focus remains on oil sands CALGARY , Dec. 12, 2013 ...
About this update from Cenovus Energy Inc.
[{"type":"text","content":"\n\n\n\n\n\nCapital investment reduced; focus remains on oil sands\n\n\nCALGARY, Dec. 12, 2013 /CNW/ - Cenovus Energy Inc. (TSX: CVE) (NYSE:\n CVE) expects to invest between $2.8 billion and $3.1 billion in 2014, a\n 13% decrease when compared with the previous year. The company is\n focusing its capital on oil projects that are anticipated to provide\n production growth over the next four years.\n\n\n\"Since our launch in late 2009, Cenovus has concentrated on gaining\n regulatory approvals for our robust inventory of oil sands\n opportunities while also growing oil reserves,\" said Brian Ferguson,\n Cenovus President & Chief Executive Officer. \"In 2014, we will focus on\n investment that will achieve cash flow and earnings growth from our\n approved projects in order to create the greatest value possible for\n shareholders.\"\n\n\nThe company's business strategy, which plans for 525,000 barrels per day\n (bbls/d) of net oil production within the next decade, remains\n unchanged. Since its inception four years ago, Cenovus has grown oil\n production by approximately 50% and expects to deliver continued\n profitable oil production and reserves growth over the next year.\n Production growth is primarily driven by added volumes from Christina\n Lake phase E and the planned start-up of Foster Creek phase F in the\n third quarter of 2014.\n\n\nCenovus anticipates its conventional oil, natural gas and refining\n operations will continue to generate strong operating cash flow to\n support the growth of its oil sands projects. The company's two\n producing oil sands operations, Christina Lake and Foster Creek, are\n also expected to generate operating cash flow in excess of capital\n investment in 2014. The company expects overall cash flow in 2014 to be\n between $3.0 billion and $3.7 billion.\n\n\n\"Cenovus is well-positioned as we head into our fifth year as a\n company,\" said Ferguson. \"Our strong financial position allows us to\n continue our focus on delivering solid total shareholder return. That\n includes our plans to increase our dividend over time as the company\n grows.\"\n\n\n\n\n \n\n\n \n\n\n \n\n\n \n\n\n\n\nBudget forecast\n\n\n\n\n   \n\n\n2014 budget\n\n\n2013 guidance\n\n\n% change3\n\n\n\n\nCash flow1,2 ($ billions)\n  Per share diluted ($/share)\n\n\n3.0 - 3.7\n3.95 -...