Cenovus Energy Inc. · TSX:CVE
Cenovus Energy — Corporate Update (December 2015)
13 slides from Cenovus Energy's corporate update, Dec 10, 2015
Slide 1: Welcome to 2016 budget discussion
Speaker: Kam Sandhar, Director, Investor Relations • Thank you and welcome to our discussion of Cenovus’s 2016 budget. • In addition to this morning’s news release, we have posted guidance and a presentation package on our website. • Throughout today’s conference call, we will reference the midpoint
Slide 2: Forward-looking information advisory
Speaker: Kam Sandhar, Director, Investor Relations • I would like to refer you to the advisory on forward-looking information and non-GAAP measures in today’s news release and associated documents. In particular, I draw your attention to the risk factors and assumptions outlined in the advisory and
Slide 3: Call speakers and format
Speaker: Kam Sandhar, Director, Investor Relations • Brian Ferguson, President & Chief Executive Officer, will begin with some opening messages and then turn the call over to Ivor Ruste, Executive Vice-President & Chief Financial Officer, who will discuss details of our budget. Following that, Drew
Slide 4: Opening remarks: 2016 budget priorities
Speaker: Brian Ferguson, President & Chief Executive Officer • Thank you Kam. Good morning. • Our 2016 budget announced today is one that focuses on maintaining our financial strength, capital discipline and pursuit of further cost improvements. • We continue to focus on our cost structure in this c
Slide 5: 2016 capital budget overview
Speaker: Ivor Ruste, Executive Vice-President & Chief Financial Officer • Thank you Brian. I’ll begin with a quick overview. • The midpoint of our capital budget for 2016 is $1.5 billion, about 19% less than 2015 levels. • Oil sands capital represents about 60% of that total spend. As Brian mentione
Slide 6: Financial strength and hedging
Speaker: Ivor Ruste, Executive Vice-President & Chief Financial Officer • From a long-term planning perspective, we continue to rank and compare all of our projects using a flat US$60 per barrel Brent or US$55 WTI price. • However, given where spot and strip prices are today, we continue to run seve
Slide 7: 2016 production expectations
Speaker: Drew Zieglgansberger, Executive Vice-President, Oil Sands Manufacturing • Thank you Ivor. • When we take a look at production, our total liquids volumes for the year are expected to be comparable to 2015: • Production from both the new Foster Creek and Christina Lake expansions are expected
Slide 8: Christina Lake outlook
Speaker: Drew Zieglgansberger, Executive Vice-President, Oil Sands Manufacturing • Looking at Christina Lake closer, it continues to prove it’s an industry-leading SAGD project. And in 2016, we are looking forward to the expected ramp up of our optimization project and the completion and start up of
Slide 9: Foster Creek outlook
Speaker: Drew Zieglgansberger, Executive Vice-President, Oil Sands Manufacturing • Over at Foster Creek, the ramp up of phase F continues to proceed well. Although it’s only one year in, we believe the 90-day steam circulation process at start up should greatly improve our project operations through
Slide 10: Closing comments
Speaker: Brian Ferguson, President & Chief Executive Officer • Thank you Drew. • Our 2016 budget focuses on maintaining financial resilience, allocating capital in a disciplined manner and pursuing further cost reductions. • If oil prices were to weaken significantly, we have the flexibility to redu
Slide 11: Supplemental information: Hedging summary
Supplemental information Hedging summary Volume % hedged Hedges at December 8, 2015 Volume hedged Hedge price Production 2016F (2016F) Crude – Brent Fixed Price, 2016 January – December 10,000 bbls/d US$66.93/bbl January – June 9,000 bbls/d US$69.63/bbl January – June 17,000 bbls/d C$75.80/bbl 208 M
Slide 12: Capital spending and cash flow sensitivity
Capital spending ($ millions) 2012 2013 2014 2015F 2016F Oil sands Foster Creek 735 797 796 415 – 435 350 – 400 Christina Lake 593 688 794 685 – 705 425 – 475 Narrows Lake 44 152 175 45 – 50 15 – 25 New resource plays 302 226 196 70 – 80 60 – 70 Conventional oil 1,319 1,167 812 250 – 270 175 – 225 N
Slide 13: Investor relations contacts
Investor relations contacts Kam Sandhar Director, Investor Relations kam.sandhar@cenovus.com 403.766.4751 Graham Ingram Manager, Investor Relations graham.ingram@cenovus.com 403.766.2849 Steve Murray Senior Analyst, Investor Relations steven.murray@cenovus.com 403.766.3382 Michelle Cheyne Analyst, I