Latest news with #JonMcKenzie
Globe and Mail
6 hours ago
- Business
- Globe and Mail
Cenovus cuts production guidance after Alberta wildfire, Rush Lake blowout
Cenovus Energy Inc. CVE-T has cut its production guidance as it deals with the fallout from a northern Alberta wildfire and a blowout at its Rush Lake facility in Lloydminster, Sask. Chief executive Jon McKenzie told analysts on a Thursday morning earnings call that Cenovus has completely removed Rush Lake production volumes for the rest of the year 'out of an abundance of caution and conservatism.' The company now expects to produce between 805,000 and 825,000 barrels of oil equivalent per day this year, down by 10,000 boe/d. Second-quarter production came in at 765,900 barrels of oil equivalent per day, compared with 800,000 boe/d for the same quarter last year. Cenovus has yet to complete its investigation into the cause of the May 7 incident at Rush Lake, but Mr. McKenzie said the company is confident that it was because of a casing failure on a well. It resulted in billowing clouds of steam at the surface of the site and the closing of both Rush Lake assets. Prior to the shut in, the facilities had been producing about 18,000 barrels a day. In mid-June, the company said in a statement it had stabilized the well. Mr. McKenzie said Thursday that Cenovus had moved to the recovery phase of the incident. 'We'll work with the regulator and convince ourselves that we've got a good, safe startup plan,' he said. Mr. McKenzie said the hit to production from the Rush Lake closing was partially offset by strong performance from the company's other Lloydminster assets. In late May, the Caribou Lake wildfire in northern Alberta forced the evacuation of more than 2,000 workers from the company's Foster Creek and Christina Lake oil sands operations. The blaze came within a couple of kilometres of Christina Lake, resulting in the shutdown of the facility, Mr. McKenzie said. The site was down for about four days. Mr. McKenzie said restarting the facility was a monumental effort, which included draining and restarting more than 50 kilometres of steam pipelines, bringing 26 boilers back online, returning the co-generation power facility back to service and remobilizing all 2,000 workers. It took 11 days to go 'from a standing start to 250,000 barrels a day,' he said, which lost the company about two million barrels of production. On the other side of Canada, Cenovus is getting ever closer to completing its West White Rose project off the coast of St. John's, with first oil expected early in the second quarter of 2026. The White Rose field sits around 350 kilometres east of St. John's. It produces roughly 26,000 barrels a day, but that number is falling as its oil reserves decline. The expansion project will add about 75,000 barrels a day to production and extend the life of the field to 2038. Cenovus floated a massive gravity-based structure for the project in May, and last month towed it to the field and attached it to the seabed floor - a milestone that Mr. McKenzie called 'a feat of engineering.' He said commissioning and hooking up the equipment will take about three months, with the first well drilled prior to the end of the year. Cenvous reported it made $851-million in the second quarter, down from an even $1-billion in the same quarter last year. With a report from The Canadian Press
Reuters
13 hours ago
- Business
- Reuters
Canada's Cenovus says US refinery outlook improving, cuts 2025 production forecast
July 31 (Reuters) - Canada's Cenovus Energy ( opens new tab said on Thursday that recently completed maintenance work will improve future results from its U.S. refinery assets, as the company also lowered the upper end of its full-year oil and gas production forecast. The Calgary, Alberta-based company has struggled recently with underperformance from its U.S. refineries. But Cenovus completed a major turnaround at its Toledo, Ohio, refinery in the second quarter, 11 days ahead of schedule, and said it anticipates being able to drive down costs there and at its other refining assets. "We think there's probably another $2 per barrel that we can get out of our U.S. refining assets through time," said CEO Jon McKenzie on a conference call to discuss second-quarter results. Analysts described Cenovus' results as positive thanks to the company's improved refinery performance and outlook, despite its lower oil and gas output forecast. TD Cowen said in a note to clients that the company's 58% share of market capture in its U.S. refinery division was significantly better than expected. Cenovus is now forecasting its 2025 upstream production will be between 805,000 barrels of oil equivalent per day and 825,000 boepd, compared with 805,000 to 845,000 boepd projected previously, because of the temporary shut-in of its Rush Lake thermal facility in west-central Saskatchewan. A casing failure in an injection well in early May led to a steam release at Rush Lake, and the facility remains shut down. For the second quarter, Cenovus' total upstream production was 765,900 boepd, down from 800,800 boepd a year earlier. Wildfires in Alberta disrupted the company's operations, prompting Cenovus to temporarily shut down and evacuate its Christina Lake oil sands site and resulting in the loss of 2 million barrels of production during the quarter. The company's share price jumped as much as 4.2% in early trade before settling back to last trade at C$20.95, a 0.08% increase on the day. Cenovus' name has been floated by analysts and in media reports as a possible white-knight buyer for rival oil sands producer MEG Energy ( opens new tab, which is the subject of a hostile takeover attempt by Strathcona Resources ( opens new tab. McKenzie declined to comment on the matter on Thursday. He said the company likes its existing asset portfolio and sees no holes in it. Cenovus posted a net income of C$851 million ($614.57 million), or 45 Canadian cents per share, during the three months ended June 30, compared with C$1.0 billion, or 53 Canadian cents per share, a year earlier. ($1 = 1.3847 Canadian dollars)
CTV News
18 hours ago
- Business
- CTV News
Cenovus makes $851 million in Q2, down from $1B last year
The Cenovus Christina Lake oilsands facility steam-assisted gravity drainage pad southeast of Fort McMurray, Alta., is shown on Wednesday, April 24, 2024. THE CANADIAN PRESS/Amber Bracken CALGARY — Cenovus Energy Inc. says it made $851 million in the second quarter, down from an even $1 billion in the same quarter last year, as it slightly revised down its production outlook for the year. The Calgary-based oil producer says it now expects to produce between 805,000 and 825,000 barrels of oil equivalent per day this year, down by 10,000 boe/d, in part because of a well leak at its Rush Lake facilities in western Saskatchewan. Second quarter production came in at 765,900 barrels of oil equivalent per day, compared with 800,000 boe/d last year. Revenues for the three months ended June 30 was $12.3 billion, down from $14.6 billion in the second quarter of 2024. Cenovus says it had $355 million of free funds flow during the quarter, down from $1.21 billion in the same quarter last year. Chief executive Jon McKenzie says the company is nearing completion of numerous growth and maintenance projects that, once complete, should clear the way for increased free funds flow. This report by The Canadian Press was first published July 31, 2025. Companies in this story: (TSX: CVE) The Canadian Press
Winnipeg Free Press
18 hours ago
- Business
- Winnipeg Free Press
Cenovus reports $851 million second quarter profit
CALGARY – Cenovus Energy Inc. says it made $851 million in the second quarter, down from an even $1 billion in the same quarter last year, as it slightly revised down its production outlook for the year. The Calgary-based oil producer says it now expects to produce between 805,000 and 825,000 barrels of oil equivalent per day this year, down by 10,000 boe/d, in part because of a well leak at its Rush Lake facilities in western Saskatchewan. Second quarter production came in at 765,900 barrels of oil equivalent per day, compared with 800,000 boe/d last year. Revenues for the three months ended June 30 was $12.3 billion, down from $14.6 billion in the second quarter of 2024. Cenovus says it had $355 million of free funds flow during the quarter, down from $1.21 billion in the same quarter last year. Chief executive Jon McKenzie says the company is nearing completion of numerous growth and maintenance projects that, once complete, should clear the way for increased free funds flow. Monday Mornings The latest local business news and a lookahead to the coming week. This report by The Canadian Press was first published July 31, 2025. Companies in this story: (TSX: CVE)
Yahoo
19 hours ago
- Business
- Yahoo
Cenovus reports $851 million second quarter profit
CALGARY — Cenovus Energy Inc. says it made $851 million in the second quarter, down from an even $1 billion in the same quarter last year, as it slightly revised down its production outlook for the year. The Calgary-based oil producer says it now expects to produce between 805,000 and 825,000 barrels of oil equivalent per day this year, down by 10,000 boe/d, in part because of a well leak at its Rush Lake facilities in western Saskatchewan. Second quarter production came in at 765,900 barrels of oil equivalent per day, compared with 800,000 boe/d last year. Revenues for the three months ended June 30 was $12.3 billion, down from $14.6 billion in the second quarter of 2024. Cenovus says it had $355 million of free funds flow during the quarter, down from $1.21 billion in the same quarter last year. Chief executive Jon McKenzie says the company is nearing completion of numerous growth and maintenance projects that, once complete, should clear the way for increased free funds flow. This report by The Canadian Press was first published July 31, 2025. Companies in this story: (TSX: CVE) The Canadian Press Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
