“Capital originally budgeted to progress potential phase H expansions at both Christina Lake and Foster Creek to sanction-ready status this year has been put on hold, and the majority of the remaining planned capital spend at the company’s Deep Basin and Marten Hills operations has been suspended. {* traditionalSignIn_signInButton *}, {* backButton *} THE CANADIAN PRESS/Jeff McIntosh, {* backButton *} Please confirm the information below before signing up. “Consistent with our commitment to balance sheet strength, we’re exercising our flexibility to reduce discretionary capital while maintaining our base business and delivering safe and reliable operations.”. Enter your email below and we'll send you another email. These measures are being taken in response to the recent significant decline in world benchmark crude oil prices. These measures are being taken in response to the recent significant decline in world benchmark crude oil prices. To enable Verizon Media and our partners to process your personal data select 'I agree', or select 'Manage settings' for more information and to manage your choices. You can change your choices at any time by visiting Your Privacy Controls. Capital investment has been revised to between $900 million and $1 billion from the original budget of $1.3 to $1.5 billion. We didn't recognize that password reset code. Sorry we could not verify that email address. On Monday, when oil prices collapsed and financial markets crashed the Cenovus stock price dove by 51.65 per cent to $3.82. The company was well below this limit at the end of 2019, and has no near-term debt maturities. Under the terms of Cenovus’s committed credit facility, the company is required to maintain a debt to capitalization ratio, as defined in the agreement, not to exceed 65 per cent. 9912 Franklin Ave, Fort McMurray, Alberta T9H 2K5 © 2016-2020 Rogers Media. The energy company says it plans to invest between $1.3 billion and $1.5 billion in 2020, up from between $1.1 billion and $1.2 billion in 2019. Cenovus Energy Inc. said on Wednesday it would cut its planned 2015 capital spending by another 27% from targets set last month because of the continued slump in oil prices. Rogers Media uses cookies for personalization, to customize its online advertisements, and for other purposes. It is also temporarily suspending its crude-by-rail program and deferring final investment decisions on major growth projects. As a result of Cenovus’s decision to temporarily suspend its crude-by-rail program, the company will no longer be making use of credits under Alberta’s Special Production Allowance (SPA) program. “Cenovus will continue to monitor the macro-economic and oil price environment and will look for additional opportunities to reduce operating and capital spending if necessary. Cenovus … “Consistent with our commitment to balance sheet strength, we’re exercising our flexibility to reduce discretionary capital while maintaining our base business and delivering safe and reliable operations.”. Cenovus Energy Inc. is reducing its 2020 capital spending by approximately 32 percent in order to maintain the strength of its balance sheet in the face of recent oil price weakness. Cenovus revises 2020 capital spending plan in face of oil plunge March 10, 2020 Cenovus Energy Inc. is reducing its 2020 capital spending by approximately 32 percent in order to maintain the strength of its balance sheet in the face of recent oil price weakness. Cenovus responds to low oil prices with reduced 2020 capital spending Calgary, Alberta (March 9, 2020) – Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) is reducing its 2020 capital spending by approximately 32% in order to maintain the strength The company was well below this limit at the end of 2019, and has no near-term debt maturities. It is also temporarily suspending its crude-by-rail program and deferring final investment decisions on major growth projects. Cenovus says capital spending to edge higher in 2020, production to rise, CBC's Journalistic Standards and Practices. By checking this box, I agree to the terms of service and privacy policy of Rogers Media. It’s also suspending its quarterly dividend and forecasting operating and general and administrative cost reductions totalling 150-million dollars. To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). “We have top-tier assets, one of the lowest cost structures in our industry and we’ve made significant progress in deleveraging over the past few years,” said Alex Pourbaix, Cenovus President & Chief Executive Officer, in a news release. “Cenovus currently has liquidity of approximately $4.4 billion, including undrawn credit facility capacity and cash on hand. On Monday, when oil prices collapsed and financial markets crashed the Cenovus stock price dove by 51.65 per cent to $3.82. Box 500 Station A Toronto, ON Canada, M5W 1E6. Enter your email address to get a new one. Pseudonyms will no longer be permitted. “Capital originally budgeted to progress potential phase H expansions at both Christina Lake and Foster Creek to sanction-ready status this year has been put on hold, and the majority of the remaining planned capital spend at the company’s Deep Basin and Marten Hills operations has been suspended. Modest spending on engineering and permitting for a potential diluent recovery unit (DRU) will be completed, however, in the current environment, Cenovus does not intend to sanction any new projects,” added Cenovus. Please contact us. CALGARY -- Cenovus Energy Inc. plans to increase its capital spending in 2020 compared with this year. We use cookies to ensure that we give you the best experience on our website. Cenovus Energy expects a 2016 capital budget of between $1.4 billion and $1.6 billion, about 19 per cent below this year's level, as the integrated oil company prepares to … I understand that I can withdraw my consent at any time. By Mario Toneguzzi on March 10, 2020No Comment, Capital investment has been revised to between $900 million and $1 billion from the original budget of $1.3 to $1.5 billion. Get breaking news weather and traffic stories in your inbox. Login. “Cenovus will continue to monitor the macro-economic and oil price environment and will look for additional opportunities to reduce operating and capital spending if necessary. Therefore, oil sands production in 2020 is now expected to average between 350,000 barrels per day (bbls/d) and 400,000 bbls/d, approximately six per cent lower than the company’s December 9, 2019 guidance for the year, it said.
Cenovus Energy logo at the company's annual meeting in Calgary, Wednesday, April 25, 2012. Therefore, oil sands production in 2020 is now expected to average between 350,000 barrels per day (bbls/d) and 400,000 bbls/d, approximately six per cent lower than the company’s December 9, 2019 guidance for the year, it said. By Mario Toneguzzi on March 10, 2020No Comment, Capital investment has been revised to between $900 million and $1 billion from the original budget of $1.3 to $1.5 billion. We and our partners will store and/or access information on your device through the use of cookies and similar technologies, to display personalised ads and content, for ad and content measurement, audience insights and product development.
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Your existing password has not been changed. Login. Yahoo is part of Verizon Media. We reserve the right to close comments at any time. Cenovus plans to invest between $1.3 billion and $1.5 billion in 2020, about 70% of which is sustaining capital primarily to maintain base production at … Cenovus Energy announced Tuesday it is reducing its 2020 capital spending by approximately 32 per cent in order to maintain the strength of its balance sheet. Yahoo is part of Verizon Media. {* forgotPassword_sendButton *}, {* backButton *} CALGARY, Alberta, March 10, 2020 (GLOBE NEWSWIRE) -- Cenovus Energy Inc. (CVE.TO) (CVE.TO) is reducing its 2020 capital spending by approximately 32% in … The company says the additional steps are in response to the low global oil price environment that it expects to continue for an unknown period. In its outlook for 2020, Cenovus expects total production in 2020 to increase seven per cent compared with its guidance for 2019. Cenovus says the increase is largely due to a deferral of spending this year following the mandatory production curtailments in Alberta. Please note that CBC does not endorse the opinions expressed in comments.
It’s reducing capital spending by another 150-million dollars on top of a 450-million cut announced on March 9th. Closed Captioning and Described Video is available for many CBC shows offered on CBC Gem. Home General Interest Companies Cenovus reduces 2020 capital spend, defers new project sanctions Considering low oil prices, Cenovus Energy Inc. plans to reduce its 2020 capital spending … The company expects to provide an updated corporate guidance document in due course.”, Alberta, Business, Calgary, energy, oil, Oil and gas, Cenovus reducing capital spending by 32% added by Mario Toneguzzi on March 10, 2020View all posts by Mario Toneguzzi →, You must be logged in to post a comment You can change your choices at any time by visiting Your Privacy Controls. We use cookies to ensure that we give you the best experience on our website. Cenovus Energy (CVE) is set to cut its 2020 capital spending and production guidance by 32% and 5%, respectively. “Cenovus currently has liquidity of approximately $4.4 billion, including undrawn credit facility capacity and cash on hand. The increase in total planned capital spending, compared with Cenovus's 2019 forecast, is consistent with the outlook provided at the company's Investor Day earlier this year and is largely due to the deferral of sustaining capital in
C-E-O Alex Pourbaix’s annual base salary is also being cut by 25 per cent as of May 1st, with graduated cuts of 15 to 12 per cent for other executives and employees. It says its crude-by-rail program, combined with the Alberta government's special production allowances, will position the company to move to unconstrained production levels. Cenovus Energy is cutting salaries and its capital spending plan as global oil prices have plummeted due to the COVID-19 outbreak and a Saudi-Russia price war.
{* createAccountButton *}, You may have created a profile with another. Information about your device and internet connection, including your IP address, Browsing and search activity while using Verizon Media websites and apps. After seeing its shares lose more than half their value on Monday, Calgary-based Cenovus announced Tuesday it would cut its capital spending plan for 2020 by 32 per cent. It is a priority for CBC to create a website that is accessible to all Canadians including people with visual, hearing, motor and cognitive challenges. An error has occurred while trying to update your details.
To enable Verizon Media and our partners to process your personal data select 'I agree', or select 'Manage settings' for more information and to manage your choices. It now aims for between $900 million and $1 billion in total capital spending, down from earlier plans for between $1.3 billion and $1.5 billion. Capital investment has been revised to between $900 million and $1 billion from the original budget of $1.3 to $1.5 billion. Audience Relations, CBC P.O. The company continues to work toward funding its revised capital program and current dividend within cash flow in this challenging commodity price environment, it said. All rights reserved.
The company expects to provide an updated corporate guidance document in due course.”, Alberta, Business, Calgary, energy, oil, Oil and gas, Cenovus reducing capital spending by 32% added by Mario Toneguzzi on March 10, 2020View all posts by Mario Toneguzzi →, You must be logged in to post a comment In 2020, Cenovus plans to spend $285 million to $310 million on its Refining and Marketing segment, with slightly more than half of the capital going … Comments on this story are moderated according to our Submission Guidelines. It is also temporarily suspending its crude-by-rail program and deferring final investment decisions on major growth projects.