Cenovus announces 2026 capital budget and corporate guidance

Core Viewpoint - Cenovus Energy Inc. has announced its 2026 capital budget and corporate guidance, focusing on production growth, cost control, and balancing debt reduction with shareholder returns [1][2][3] 2026 Guidance Highlights - Capital investment is projected to be between C$5.0 billion and C$5.3 billion, including approximately C$350 million for turnaround costs [6][7] - Excluding turnaround costs, capital investment is expected to be between C$4.7 billion and C$5.0 billion, with C$850 million allocated to the Christina Lake North asset [6][7] - Upstream production is forecasted to be between 945,000 BOE/d and 985,000 BOE/d, reflecting a year-over-year growth rate of approximately 4% [7][8] - Downstream crude throughput is expected to be between 430,000 bbls/d and 450,000 bbls/d, with a utilization rate of approximately 91% to 95% [7][14] Upstream Production and Costs - Oil sands production guidance for 2026 is set at 755,000 bbls/d to 780,000 bbls/d, with non-fuel operating costs expected to be between C$8.50/bbl and C$9.50/bbl [9][10] - Conventional production is anticipated to be between 120,000 BOE/d and 125,000 BOE/d, with operating costs ranging from C$11.00/BOE to C$12.00/BOE [11] - Offshore production is expected to be between 70,000 BOE/d and 80,000 BOE/d, including 20,000 bbls/d to 25,000 bbls/d from the Atlantic region [12][13] Downstream Operations - Total downstream capital investment is projected to be between C$600 million and C$700 million, with a focus on safety and reliability initiatives [14][16] - Canadian refining throughput is expected to be between 105,000 bbls/d and 110,000 bbls/d, while U.S. refining throughput is forecasted to be between 325,000 bbls/d and 340,000 bbls/d [15][16] Corporate Financial Framework - General and administrative expenses are expected to remain flat at C$625 million to C$675 million, with cost reductions offsetting the impact of the MEG acquisition [17][24] - The company aims to balance deleveraging with shareholder returns, targeting to return approximately 50% of excess free funds flow when net debt exceeds C$6.0 billion [24]