Cenovus Energy Inc. (CVE) reported that the combined oil sands production averaged over 128,000 barrels per day or bbls/d net in 2014, up 25% from 2013. Total oil production averaged more than 203,000 bbls/d net, up 14% from 2013. Capital investment was $3.1 billion, 6% lower than in 2013.
The company apprehends that oil prices will remain low throughout 2015. It plans to continue building its production capacity, but at a slower pace, focusing on expansion projects at Foster Creek and Christina Lake that are already well advanced.
Cenovus Energy achieved solid production growth in 2014, driven by strong performance at its oil sands projects in northern Alberta. Further, while the average benchmark price for Brent crude and West Texas Intermediate decreased year over year, the company's upstream operations benefited from higher average prices for its heavy crude oil sold as Western Canadian Select.
Cenovus continued to add to its reserves in 2014. Proved bitumen reserves increased 7% to almost two billion bbls, and proved plus probable bitumen reserves increased 30% to 3.3 billion bbls. Total proved reserves gained 4%, while total proved plus probable reserves increased 22%.
Headquartered in Calgary, Alberta, Cenovus is an integrated oil company with ownership interest in two high-quality refineries in Illinois and Texas. Cenovus’ operations include increasing oil projects and growing natural gas and crude oil production in Alberta and Saskatchewan.
Cenovus enjoys the benefits of industry-leading oil sands assets that position it for long-term growth. We believe that the company will remain focused on improving its operational efficiency throughout 2014.
Currently, Cenovus carries a Zacks Rank #3 (Hold). Better-ranked players in the energy sector include InterOil Corp. (IOC), Golar LNG Partners LP (GMLP) and Tesoro Corp. (TSO). InterOil and Golar LNG sport a Zacks Rank #1 (Strong Buy) while Tesoro carries a Zacks Rank #2 (Buy).
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