Cenovus Energy Inc. · TSX:CVE
Cenovus Energy — Investor Day (June 2013)
17 slides from Cenovus Energy's investor day presentation, Jun 18, 2013
Slide 1: Premier SAGD operator with a proven track record
Premier SAGD operator with a proven track record John Brannan, Executive Vice-President & Chief Operating Officer Investor Day | Calgary | June 18, 2013 Premier SAGD operator with a proven track record Committed to safe & responsible development Delivering on operational commitments year after year
Slide 2: Committed to safe & responsible development
Committed to safe & responsible development Safety is our first priority Committed to safe & responsible development We are developing our oil sands safely & responsibly Christina Lake SAGD project 2
Slide 3: Delivering on operational commitments year after year
Delivering on operational commitments year after year We have predictable, reliable oil sands growth Mbbls/d 500 Emerging plays Narrows Lake Christina Lake Foster Creek 400 Actual 300 200 100 0 2010 2011 2012 2013F 2014F 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F 2023F Actual volumes are shown
Slide 4: Industry leading ramp-up at Christina Lake
Delivering on operational commitments year after year Industry leading ramp-up at Christina Lake Mbbls/d 100 90 80 70 60 50 40 30 20 10 0 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Production is shown on a gross basis. Improving our low cost structure Industry leading steam to oi
Slide 5: Achieving cost efficiency through project scale
Improving our low cost structure Achieving cost efficiency through project scale Mbbls/d Project design capacity 350 Peer Producing CVE project Emerging CVE project 300 250 200 150 100 50 0 NL GR TL FC CL Production capacity is shown before royalties on a gross basis. Peers include: CLL, CNQ, COP, D
Slide 6: Among the lowest oil sands operating costs in peer group
Improving our low cost structure Among the lowest oil sands operating costs in peer group Operating costs, 2012 $/bbl 30 20 10 0 SAGD SAGD SAGD Thermal Thermal SAGD CVE SAGD Thermal Peers include: CNQ, COP, DVN, HSE, IMO, MEG, SU. Source: Public documents. Improving our low cost structure Cenovus SA
Slide 7: SAGD supply costs improve as projects advance & technology is developed
Improving our low cost structure SAGD supply costs improve as projects advance & technology is developed Light-heavy Supply cost (US$/bbl) at Investor Day: differential Project 2010 2013 Blending & transport Royalties Foster Creek 40 - 50 35 - 45 Operating costs Christina Lake 45 - 55 35 - 45 Narrow
Slide 8: Committed to maintaining low capital cost structure
Improving our low cost structure Committed to maintaining low capital cost structure Growth capital: • Phase expansion (includes all infrastructure & initial $2 - $3/bbl wells) • Phase debottlenecking & optimization • Numerator for capital efficiency calculation Sustaining capital: • All wells, pads
Slide 9: Generating near term cash flow from conventional oil & gas
Supporting oil sands growth with conventional oil & gas Generating near term cash flow from conventional oil & gas Upstream operating cash flow 100% Natural gas 80% Conventional oil 60% 40% Oil sands 20% 0% 2010 2011 2012 2013F 2014F 2015F Conventional oil includes Pelican Lake and NGLs. 2013F based
Slide 10: Demonstrating growth from our conventional oil assets
Supporting oil sands growth with conventional oil & gas Demonstrating growth from our conventional oil assets Mbbls/d 100 75 50 25 0 2012 2013F 2014F 2015F Conventional oil & NGLs Pelican Lake Production capacity is shown before royalties on a gross basis. 2013F based on midpoints of the December 12
Slide 11: Natural gas – a natural hedge with significant cash flow
Supporting oil sands growth with conventional oil & gas Natural gas – a natural hedge with significant cash flow $ billion Capital Operating cash flow Natural gas 1.2 1.0 • Significant cash flow with minimal capital 0.8 investment & low operating costs 0.6 • Primarily fee lands 0.4 • CBM recompletio
Slide 12: Supplemental information
Supplemental information Conventional oil & gas production volumes Area 2011 2012 Wainwright 4.2 4.2 Heavy oil Suffield 11.5 11.7 Southern Alberta 10.8 13.4 Light, medium oil Weyburn 16.2 16.3 Lower Shaunavon & Bakken 3.6 6.4 NGLs Alberta & Saskatchewan 1.1 1.0 Total conventional oil & NGLs (Mbbls/d
Slide 13: Advancing oil sands projects
Advancing oil sands projects Expected production capacity (bbls/d) Project phase Regulatory status First production target gross Foster Creek1 A – E 120,000 F Approved2 Q3-2014F 45,000 G Approved 2015F 40,000 H Approved 2016F 40,000 J Submitted Q1-2013 2019F 50,000 Future optimization 15,000 Total c
Slide 14: Pelican Lake production history
Pelican Lake production history bbls/d 40,000 Recovery Cenovus expected mechanism cumulative recovery factor 35,000 Primary ~6% 30,000 Waterflood 7 - 15% Polymer/infill 16 - 30% 25,000 20,000 15,000 10,000 5,000 ‐ 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 P
Slide 15: Weyburn summary
Weyburn summary 2011 2012 2013F Production (Mbbls/d) 16.2 16.3 16 - 18 Capital ($ MM) 125 135 180 - 200 Operating cash flow ($ MM) 289 269 210 - 250 Operating costs ($/bbl) 13.60 14.62 14.50 - 15.50 Land (year-end, MM net acres) 0.5 0.5 0.5 Average royalty (%) 24 21 18 - 20 Operating cash flow is a
Slide 16: Natural gas summary
Natural gas summary 2011 2012 2013F Production (MMcf/d) 656 594 490 - 540 Recompletions 1,097 951 500 - 600 Capital ($ MM) 116 51 25 - 30 Operating cash flow ($ MM) 777 513 440 - 490 Operating costs ($/Mcf) 1.10 1.10 1.15 - 1.30 Land (year-end, MM net acres) 3.5 3.5 3.5 Average royalty (%) 1.7 1.2 1
Slide 17: Oil & gas information
Oil & gas information OIL & GAS INFORMATION The contingent resources estimates, effective December 31, 2012, and the discovered bitumen initially-in-place estimates, effective December 31, 2009, were prepared by McDaniel & Associates Consultants Ltd., an independent qualified reserves evaluator, and