Cenovus Energy Inc. · TSX:CVE
Cenovus Energy — Investor Day (June 2013)
14 slides from Cenovus Energy's investor day presentation, Jun 18, 2013
Slide 1: Expanding margin through market access & integration
Expanding margin through market access & integration Don Swystun, Executive Vice-President, Refining, Marketing, Transportation & Development Investor Day | Calgary | June 18, 2013 Expanding margin through market access & integration Pursuing higher value markets through pipeline & rail commitments
Slide 2: Expanding margin through market access & integration
Expanding margin through market access & integration Production Alberta pricing Participating in the value chain to Transportation expand margin North American & global crude pricing Refining Global product pricing Pursuing higher value markets through pipeline & rail commitments Addressing takeaway
Slide 3: Ensuring market access through firm pipeline & rail capacity
Pursuing higher value markets through pipeline & rail commitments Ensuring market access through firm pipeline & rail capacity Total marketable production Our target: Mbbls/d 1,400 • Committing to transportation 1,200 solutions for up to 50% of marketable production 1,000 • includes growing rail cap
Slide 4: Committing to pipeline expansions for market access
Pursuing higher value markets through pipeline & rail commitments Committing to pipeline expansions for market access Current pipeline access • West coast: Trans Mountain - 11,500 bbls/d Alberta • US Gulf Coast: Kitimat Edmonton Hardisty Pegasus, rail, barge - 30,000 bbls/d Vancouver Montreal Adding
Slide 5: Ensuring market access through firm pipeline & rail capacity
Pursuing higher value markets through pipeline & rail commitments Ensuring market access through firm pipeline & rail capacity Mbbls/d Total marketable production vs. targeted transportation 1,400 1,200 1,000 800 600 400 200 0 2013F 2014F 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F 2023F ex-WCSB
Slide 6: Increasing profitability through high complexity
Integration continues to deliver value & reduces cash flow volatility Increasing profitability through high complexity US refining complexity 35 Baker & O’Brien complexity index 30 25 Borger 20 Wood River 15 10 5 Integration continues to deliver value & reduces cash flow volatility Delivering signif
Slide 7: Reducing volatility in operating cash flow through integration
Integration continues to deliver value & reduces cash flow volatility Reducing volatility in operating cash flow through integration Operating cash flow $ billion 5.0 4.0 3.0 2.0 1.0 0.0 2010 2011 2012 2013F Upstream Downstream 2013F based on commodity price assumptions as outlined in the December 1
Slide 8: Supplemental information
Expanding margin through market access & integration Pursuing higher value markets through pipeline & rail commitments • portfolio approach to markets provides optionality • production growth supports commitments to multiple transportation solutions • targeting to move up to 50% of marketable produc
Slide 9: Wood River and Borger refinery benefits
Wood River benefits from heavy processing capacity • Top 10 US by capacity* Wood River Refinery • Refinery capacity • 311 Mbbls/d total crude • 200 - 220 Mbbls/d Canadian heavy • 83 Mbbls/d coking • Heavy crude debottleneck opportunities *Source: US EIA 2012. Borger benefits from discounted sour cru
Slide 10: Refining margin sensitivities for 2013F
Refining margin sensitivities for 2013F Operating cash flow $ billion 2013F: $1.1 - $1.7 billion 2.0 L /H diff - $30/bbl 1.5 L /H diff - $20/bbl 1.0 0.5 0.0 15.00 20.00 25.00 Market crack spread - $/bbl $1 change in crack spread = ~$70 million change in refining operating cash flow Based on US$91.00
Slide 11: Typical crude slate & product yields
Typical crude slate & product yields Crude feedstock Refined products 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% Wood River Borger Wood River Borger Heavy Medium sour Light Gasoline Distillate Other Understanding refinery performance Market vs. realized crack spreads 3 bbls 1 bbl 0.45 bbl 0.90
Slide 12: Market vs. realized crack spreads
Market vs. realized crack spreads $/bbl 25 20 15 10 5 0 Market crack Crude advantage 3-2-1 discount Other products Realized crack Crude advantage increases total margin available Realized blended prices vs. WCS benchmark Blended price C$/bbl Started shipping on Trans Mountain Pipeline $100 $90 $80 $
Slide 13: North American condensate balance
North American condensate balance Mbbls/d 600 400 200 0 -200 -400 -600 2012 2013F 2014F 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F 2023F Canadian demand US supply Net balance Canada will likely source most of its condensate from the US Source: Cenovus, Reuters, IHS. Forward looking information
Slide 14: 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