Cenovus raises 2026 production outlook as quarterly profit more than triples

The Calgary, Alberta-based company's quarterly net income rose to C$2.87 billion or C$1.53 per share, from C$851 million, or 45 Canadian cents per share, a year earlier.

Meanwhile, it also repaid a C$2.2 billion term loan used to finance part of the MEG acquisition, reducing net debt to C$5.4 billion from C$8.1 billion at the end of the first quarter, achieving its interim net debt target of C$6 billion.

While net debt remains between C$6 billion and C$4 billion, Cenovus said it will aim to return about 75% of excess free funds flow to shareholders.

Cenovus returned C$1.4 billion to shareholders during the quarter.

($1 = 1.4102 Canadian dollars)

The company raised its full-year upstream production forecast by 25,000 barrels of oil equivalent per day (boepd) to between 970,000 boepd and 1.01 million boepd, citing stronger-than-expected performance across its oil sands assets and optimized turnaround activity at Christina Lake and Foster Creek.

CEO Jon McKenzie said Cenovus delivered its best-ever quarterly financial results in the three months ended June 30.

Total quarterly upstream production climbed 27% to 970,400 boepd. Oil sands production reached 786,400 boepd, with record quarterly output at the company's Christina Lake and Sunrise facilities.

Downstream crude throughput totaled 451,500 barrels per day during the quarter, representing a unit utilization rate of 95%, while U.S. refining utilization reached 96%.

July 29 (Reuters) - Cenovus Energy raised its 2026 production outlook on Wednesday, after reporting a more than threefold jump in second-quarter profit helped by higher oil prices and record oil sands output, sending its U.S.-listed shares up 4% in premarket trading.