Cenovus to slow down spending in 2014, grow production 10 per cent
CALGARY - Cenovus Energy Inc. (TSX:CVE) will focus in 2014 on developing the oilsands properties it already has in the hopper rather than seeking regulatory approvals to add new ones to its portfolio.
"Our strategy has not changed in any way," CEO Brian Ferguson said during a conference call to discuss the company's plans and outlook for next year.
"It's simply we have now hit the point in the evolution of that strategy where, rather than focusing on building the portfolio, what we're now focusing on is developing the portfolio over the next four- to five-year period."
Since splitting off from Encana Corp. (TSX:ECA) four years ago, Cenovus has been concentrating on winning regulatory approvals for a host of oilsands projects. It now believes it has enough on the go to keep itself busy over the next four or five years.
"We are putting less emphasis on delineation and approvals and more on the execution of projects that are expected to deliver increased cash flow and earnings in the near to medium term," said Ferguson.
Cenovus is on track to hit 525,000 barrels per day of net oil production within the next decade.
Oil production for 2014 is expected to average between 190,000 and 208,000 barrels a day, a 10 per cent increase from its 2013 forecast.
Cenovus plans to spend between $2.8 billion and $3.1 billion in 2014, a 13 per cent decrease compared with this year.
"This is to maintain capital discipline and also to live more within our current cash flow expectations for the year," said Ferguson.
Executives on the call also said they haven't been happy with operating costs at Cenovus oilsands projects and will be making changes in 2014 that they expect will lead to sustained reductions.
Cenovus shares fell 33 cents to $29.87 on Thursday on the Toronto Stock Exchange.
Read more Business News
- Charged with 1st degree murderBC
- Rockets teeter on the brinkSports
- Fired for not getting flu shotPenticton / S. Okanagan
- Snow plow issue ongoingVernon / N. Okanagan
|QHR Technologies Inc||1.22||+0.01|
|Anavex Life Sciences||0.38||-0.005|
|Copper Mountain Mining||2.33||-0.05|
|Sunrise Resources Ltd||0.025||-0.005|
|Mission Ready Services||0.25||0.00|
Our ability to live beyond our years has nothing to do with medical science; we will all live longer than our physical bodies, each of us will leave behind a personal legacy made up of our deeds, our ...
With all of the adventure activities I have done and still do, I wonder sometimes if the edge still exists. The systematic approach to learning a new adventure or extreme activity combined with the r...
How much time should you put into prospecting? The question is a bit of a puzzle. Ideally, there would be a reference book that lists, by industry, how much time you should invest in prospecting acti...