Cenovus Provides Updated Risk Management Program

0

Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) announces the suspension of its crude oil price risk management activities related to West Texas Intermediate (WTI). Given Cenovus’ balance sheet strength and liquidity position, the Company has determined that these programs are no longer necessary to support financial resiliency. Cenovus will remain well positioned to generate strong free cash flow over the long term. The company expects to announce on April 27, 2022 its first quarter results, details on its plan to increase shareholder returns and updated business guidance for 2022.

Realized losses across all risk management positions for the three months ending March 31, 2022 are expected to be approximately $970 million. Actual achievements for the first quarter of 2022 will be reported with Cenovus’ first quarter results. Based on futures prices as of March 31, 2022, estimated realized losses on all risk management positions for the three months ending June 30, 2022 are currently expected to be approximately $410 million. The actual gains or losses from such positions will depend on the market prices or rates, as applicable, at the time each such position is settled. Cenovus expects to close out the majority of its outstanding crude oil price risk management positions related to WTI over the next two months and does not expect any material financial exposure to these positions beyond the second quarter of 2022. .

Advisory
Forward-looking information
This press release contains certain forward-looking statements and information (collectively, “forward-looking information”) within the meaning of applicable securities laws, including the United States Private Securities Litigation Reform Act of 1995, regarding our current expectations. , estimates and projections about the future, based on certain assumptions we have made in light of our experience and our perception of historical trends. Although Cenovus believes that the expectations represented by such forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information, as actual results may differ materially from those expressed or implied. Cenovus assumes no obligation to update or revise any forward-looking information, except as required by law.

This forward-looking information is identified by words such as “estimate”, “expect”, “plan”, “position” and “will” or similar expressions and includes suggestions of future results, including statements about: Cenovus’s ability to generate long-term free cash flows following the suspension of its crude oil price risk management activities related to West Texas Intermediate (“WTI”); the announcement of Cenovus’ first quarter results, plan to increase shareholder returns and updated corporate guidance for 2022, including the content and timing of such announcements; expected and estimated realized losses on all risk management positions for the first and second quarters of 2022; and Cenovus’ intentions with respect to closing out its outstanding crude oil price risk management positions related to WTI, including the extent and timing thereof and the future financial exposure that may arise. reports there.

The forward-looking information in this press release also includes a financial outlook for Cenovus, including Cenovus’ expectations regarding the impact of the suspension of its WTI-related crude oil price risk management activities and its expected and estimated realized losses on all risk management positions. The purpose of the financial outlook contained in this press release is to provide management’s expectations regarding the effects of the suspension of Cenovus’ crude oil price risk management activities related to WTI and readers are cautioned that this outlook financial resources may not be appropriate for other purposes.

The development of forward-looking information involves making a number of assumptions and taking into account certain risks and uncertainties, including the assumptions set forth and inherent in Cenovus’s 2022 corporate guidance available at cenovus.com , some of which are unique to Cenovus and others that apply to the industry in general. In addition, the estimated amount of realized losses on all risk management positions for the second quarter of 2022 shown in this press release is based on forward prices applicable as of March 31, 2022. The actual realized gains or losses on these positions will fluctuate with the actual market prices or rates, as the case may be, at the time each such position is settled. These fluctuations could be significant and cause actual realized gains or losses to differ materially from the amounts disclosed in this press release.

Additional information about the risks, assumptions, uncertainties and other factors that could cause Cenovus’s actual results to differ materially from those expressed or implied by its forward-looking information can be found under “Risk Management and risk factors” of Annual management report or Form 40-F for the year ended December 31, 2021.

Cenovus Energy Inc.
Cenovus Energy Inc. is an integrated energy company with oil and natural gas production operations in Canada and the Asia-Pacific region, as well as upgrading, refining and marketing operations in Canada and the United States. . The company is focused on managing its assets in a safe, innovative and profitable manner, integrating environmental, social and governance considerations into its business plans. Cenovus’ common shares and warrants are listed on the Toronto and New York stock exchanges, and the company’s preferred shares are listed on the Toronto Stock Exchange. For more information, visit cenovus.com .

Find Cenovus on Facebook , Twitter , LinkedIn , Youtube and instagram .

Cenovus contact information
Investors
General line Investor Relations
403-766-7711
Media
General Line Press Relations
403-766-7751

main logo

Share.

About Author

Comments are closed.