Cenovus Energy Inc. · TSX:CVE
Cenovus Energy — Peters & Co. Limited 2012 North American Oil and Gas Conference
24 slides from Cenovus Energy's conference presentation, Sep 11, 2012
Slide 1: Peters & Co. Limited 2012 North American Oil and Gas Conference
Peters & Co. Limited 2012 North American Oil and Gas Conference Harbir Chhina, Executive Vice-President, Oil Sands September 11, 2012 | Toronto
Slide 2: A different kind of oil sands
A different kind of oil sands Focus on total shareholder return & building net asset value • Top-tier oil sands portfolio generates predictable, reliable growth • Strong project execution & innovation drives performance • Strategic integration & market access enhances cash flow • Solid & conservativ
Slide 3: Providing sustainable, predictable oil growth
Providing sustainable, predictable oil growth Mbbls/d 500 Bitumen Pelican Lake Other oil & NGLs GR 400 CA 21F 1 4% 2 0 1– 201 300 200 100 0 2010 2011 2012F 2013F 2014F 2015F 2016F 2017F 2018F 2019F 2020F 2021F Volumes are shown before royalties and net to CVE. 2012F based on midpoints of April 25, 2
Slide 4: Identifying our keys to success
Identifying our keys to success • Top quality reservoirs • Manufacturing approach & project execution • Operational excellence • Experienced team • Technological innovations • Stakeholder relationships & environmental track record Reservoir quality drives performance Steam-to-oil ratio Low SOR means
Slide 5: Leading capital efficiency
Leading capital efficiency Foster Creek Christina Lake $/bbl/d 30,000 20,000 10,000 0 A B C D&E FG&H* A&B CD&E FG&H 20Mbbls/d 10Mbbls/d 30Mbbls/d 60Mbbls/d 125Mbbls/d 18 MMbls/d 120MMbls/d 150MMbls/d Actual costs Projected costs Actual costs Projected costs Capital efficiency is calculated based on
Slide 6: Focusing on operational excellence
Focusing on operational excellence Mbbls/d Foster Creek daily production Capacity Turnaround Production is shown on a gross basis. Industry leading start-up Mbbls/d Christina Lake phases A, B & ramp up of C Capacity Production is shown on a gross basis. 5
Slide 7: Focus on innovation
Focus on innovation Commercializing one technology per year Solvent processes ESP (phase 1) Wedge WellTM t echnology Accelerat ed st art -up Chemical Looping Combust ion Blowdown boiler Conf ident ial project Conf ident ial project Warm Lime Sof t ening Conf ident ial project Conf ident ial project
Slide 8: Telephone Lake – world class resource
Telephone Lake – world class resource • Reservoir quality, thickness and homogeneity is comparable to Foster Creek and Christina Lake • 2.1 billion bbls of bitumen contingent resources (December 31, 2011) • 150 strat wells drilled (December 2011) • EIA and joint application submitted December 2011 •
Slide 9: Supplemental information
Supplemental information
Slide 10: Strong integrated oil portfolio
Strong integrated oil portfolio Tickers | TSX, NYSE - CVE Enterprise value $28 billion Shares outstanding 756 MM 2012F production Oil & NGLs 163 Mbbls/d Natural gas 588 MMcf/d 2011 proved & 2.7 BBOE probable reserves Bitumen Economic contingent 8.2 Bbbls resources* Discovered bitumen 56 Bbbls initia
Slide 11: Advancing oil growth with strong execution
Advancing oil growth with strong execution 2012 milestones Grow reserves & contingent resources Q1 Drill 400 to 500 stratigraphic test wells and assess results Connect Bakken central facilities to pipeline to support tight oil production growth in the area (previously Q1) Q2 Demonstrate stable & rel
Slide 12: Telephone Lake – dewatering pilot
Wedge WellTM technology commercialized in 2010 Well producer • Technology details: • < 0.1 average SOR • first year production rate of 600 – 800 bbls/d at Foster Creek, Standard SAGD well pair and current average of 400 bbls/d; steam chambers 300 – 400 bbls/d at Christina Lake coalesce • acceleratio
Slide 13: Managing our conventional assets
Pelican Lake – tremendous growth opportunity Mbbls/d 100 Opportunity to apply Grand Rapids + hot water flood technology to grow Polymer/infill production 80 Waterflood Primary 60 40 20 0 1998 2000 2002 2004 2006 2008 2010 2012F 2014F 2016F 2018F 2020F Volumes are shown before royalties. 2012F based
Slide 14: Advancing tight oil opportunities
Advancing tight oil opportunities Lower Shaunavon – 42 wells • 54 net sections, • 109 producing wells • ~4,100 bbls/d (Q2 2012) • ~5 - 10% recovery factor • 20 - 25° API medium oil Bakken – 4 wells • 140+ undeveloped sections (fee & crown land) • 27 producing wells • ~2,000 bbls/d (Q2 2012) • 40 - 4
Slide 15: Refining assets are key to integration
Refining assets are key to integration • Wood River • 306 Mbbls/d crude capacity • 200 - 220 Mbbls/d heavy crude • 85% clean product yield • Borger New coker and associated facilities • 146 Mbbls/d crude capacity • 35 Mbbls/d heavy crude • 89% clean product yield • 2012F operating cash flow* of $0.9
Slide 16: Managing risk through a balanced approach
Increasing heavy oil processing & clean product yield % Crude* % Refined products* 100 100 80 80 60 60 40 40 20 20 0 0 2011 AVG 2012 JUN YTD 2011 AVG 2012 JUN YTD Heavy Medium sour Light Gasoline Distillate Other *Illustrative crude slates and product yields. Includes Wood River and Borger refinerie
Slide 17: Capital investment focused on oil growth
Capital investment focused on oil growth 2012 capital budget: $3.1 - $3.4 B Foster Creek Christina Lake • 91% oil-directed* 21% 15% CVE wide New • ~65% contributes to resource 6% plays growth beyond 2012 Natural gas 12% 3% Refining • ~$2.0 billion or 60% Pelican Lake 5% Conventional 17% is committed
Slide 18: Our dividend commitment
Our dividend commitment • Dividend growth requires: • strong financial health • sustainable pace of development • reliable, predictable cash flow to support payments Dividend yield comparison 7% 6% Full year 2011 2012F 5% 4% 3% 2% 1% 0% COS HSE CENOVUS SU CNQ IMO 2011 yield based on actual dividends
Slide 19: Key credit metrics & ratings
Key credit metrics & ratings Credit metrics Target Q2 2012 Q2 2011 Range Debt to capitalization* 27% 28% 30 – 40% Debt to adjusted EBITDA* 1.0x 1.1x 1.0 – 2.0x Total debt $3,745 $3,417 Credit ratings Long-term Short-term S&P BBB+ Stable A-1 (Low) Moody’s Baa2 Stable P-2 DBRS A (low) Stable R-1 (Low)
Slide 20: Forward-looking information
FORWARD-LOOKING INFORMATION This presentation contains certain forward-looking statements and other information (collectively “forward-looking information”) about our current expectations, estimates and projections, made in light of our experience and perception of historical trends. Forward-looking
Slide 21: 2012 guidance: oil sands, Pelican Lake, conventional
April 25, 2012 - C$, before royalties OIL SANDS Foster Creek Christina Lake Total Production (Mbbls/d) 53 - 57 26 - 29 79 - 86 Operating cash flow ($ millions) (1) 850 - 950 300 - 340 1,150 - 1,290 Capital expenditures ($ millions) 650 - 700 475 - 525 1,125 - 1,225 Operating costs ($/bbl) Fuel 2.05
Slide 22: Consolidated cash flow sensitivities
April 25, 2012 - C$, before royalties CONSOLIDATED Total cash flow ($ billions) (1) 3.3 - 3.9 - per common share, diluted ($/share) 4.35 - 5.15 Operating cash flow ($ billions) (1) 4.0 - 4.7 (5) Total capital expenditures ($ billions) 3.1 - 3.4 Administrative expenses ($ millions) 345 - 375 Upstream
Slide 23: Cenovus land map
T100 R1W5 R20W4 R15W4 R10W4 R5W4 R1W4 T100 T95 T95 Grosmont Wabiskaw/ McMurray Telephone Lake Steepbank T90 T90 East McMurray Fort McMurray GREATER PELICAN REGION BOREALIS REGION T85 Saskatchewan Wabiskaw T85 Alberta Grand Rapids Grosmont T80 CHRISTINA LAKE REGION T80 Leismer Hardy Narrows Lake T75
Slide 24: Investor relations contacts
INVESTOR RELATIONS CONTACTS Susan Grey Director, Investor Relations susan.grey@cenovus.com 403.766.4751 Graham Ingram Senior Analyst, Investor Relations graham.ingram@cenovus.com 403.766.2849 Bill Stait Senior Analyst, Investor Relations bill.stait@cenovus.com 403.766.6348 Cenovus Energy Inc. 421 –
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