Cenovus Energy Q4 Earnings Top Estimates on Higher Upstream Production

Core Insights - Cenovus Energy Inc. reported fourth-quarter 2025 adjusted earnings per share of 36 cents, exceeding the Zacks Consensus Estimate of 28 cents, and a significant increase from 5 cents in the same quarter last year [1] - Total quarterly revenues were $7.8 billion, which fell short of the Zacks Consensus Estimate of $9.7 billion and decreased from $8.4 billion year-over-year [1] Operational Performance - The Oil Sands unit's operating margin was C$2.23 billion, down from C$2.34 billion a year ago, with daily oil sands production reaching 724.3 thousand barrels per day, a 15.6% increase year-over-year [3] - The Conventional unit's operating margin increased to C$159 million from C$88 million year-over-year, with daily conventional production at 26.2 thousand barrels compared to 24.5 thousand barrels a year ago [4] - The Offshore segment generated an operating margin of C$244 million, slightly up from C$242 million in the previous year, with daily offshore liquid production at 24 thousand barrels, higher than 19.5 thousand barrels a year ago [5] - Total upstream production for the quarter was 917.9 thousand barrels of oil equivalent per day, compared to 816 thousand barrels in the same quarter last year [5] Downstream Performance - The Canadian Refining unit's operating margin improved to C$68 million from C$47 million in the fourth quarter of 2024, processing 112.9 thousand barrels of crude oil per day [6] - The U.S. Refining unit reported an operating margin of C$81 million, a recovery from a negative operating margin of C$443 million in the prior-year quarter, with crude oil processed volumes totaling 352.6 thousand barrels per day [6] Expenses - Transportation and blending expenses rose to C$2.66 billion from C$2.61 billion in the fourth quarter of 2024 [7] - Expenses for purchased products decreased to C$4.1 billion from $6.3 billion in the prior-year quarter [7] Capital Investment & Balance Sheet - Cenovus made total capital investments of C$1.36 billion in the quarter, with cash and cash equivalents of C$2.7 billion and long-term debt of C$11 billion as of December 31, 2025 [9] Guidance - Cenovus provided guidance for 2026, projecting total upstream production between 945-985 thousand barrels of oil equivalent per day and U.S. downstream throughput of 430-450 thousand barrels per day, with anticipated capital expenditure ranging from $5 billion to $5.3 billion [10]