Cenovus Energy's Q3 Earnings Beat Estimates, Revenues Decline Y/Y

Core Insights - Cenovus Energy Inc. reported third-quarter 2025 adjusted earnings per share of 52 cents, exceeding the Zacks Consensus Estimate of 40 cents, and up from 31 cents in the same quarter last year [1][9] - Total quarterly revenues reached $9.58 billion, slightly above the Zacks Consensus Estimate of $9.56 billion, but down from $10.45 billion year-over-year [1][9] Operational Performance - The Oil Sands unit's operating margin was C$2.29 billion, a decrease from C$2.47 billion a year ago, with daily oil sands production increasing by 9.3% to 640.6 thousand barrels [3] - The Conventional unit's operating margin improved significantly to C$41 million from C$12 million year-over-year, with daily production rising to 28 thousand barrels [4] - The Offshore segment's operating margin was C$256 million, slightly up from C$252 million, but daily liquid production fell to 16.1 thousand barrels from 18.9 thousand barrels [5] - Total upstream production for the quarter was 832.9 thousand barrels of oil equivalent per day, compared to 771.3 Mboe/d in the previous year [5] Downstream Performance - The Canadian Manufacturing unit's operating margin increased to C$111 million from C$60 million, processing 105.4 thousand barrels of crude oil per day [6] - The U.S. Refining unit reported an operating margin of C$253 million, a significant recovery from a negative margin of C$383 million in the prior-year quarter, with crude oil processed volumes rising to 605.3 MBbl/D from 543.5 MBbl/D [6][7] Expenses - Transportation and blending expenses decreased to C$2.54 billion from C$2.66 billion year-over-year, while expenses for purchased products fell to C$8 billion from $9.3 billion [8] Capital Investment & Balance Sheet - Cenovus made a total capital investment of C$1.15 billion in the quarter, with cash and cash equivalents of C$1.9 billion and long-term debt of C$7.2 billion as of September 30, 2025 [10] Guidance - The company provided full-year 2025 guidance for total upstream production in the range of 805-825 MBoe/d and updated U.S. downstream throughput guidance to 510-515 MBbl/d, with anticipated capital expenditure between $4.6-$5 billion [11]