“Consistent with our commitment to balance sheet strength, we’re exercising our flexibility to reduce discretionary capital while maintaining our base business and delivering safe and reliable operations.”. An error has occurred while trying to update your details. Cenovus says capital spending to edge higher in 2020, production to rise, CBC's Journalistic Standards and Practices. Cenovus revises 2020 capital spending plan in face of oil plunge March 10, 2020 Cenovus Energy Inc. is reducing its 2020 capital spending by approximately 32 percent in order to maintain the strength of its balance sheet in the face of recent oil price weakness. On Monday, when oil prices collapsed and financial markets crashed the Cenovus stock price dove by 51.65 per cent to $3.82. After seeing its shares lose more than half their value on Monday, Calgary-based Cenovus announced Tuesday it would cut its capital spending plan for 2020 by 32 per cent. Per-barrel oilsands non-fuel operating costs are expected to decrease by approximately five per cent. THE CANADIAN PRESS/Jeff McIntosh, {* backButton *} Under the terms of Cenovus’s committed credit facility, the company is required to maintain a debt to capitalization ratio, as defined in the agreement, not to exceed 65 per cent. Home General Interest Companies Cenovus reduces 2020 capital spend, defers new project sanctions Considering low oil prices, Cenovus Energy Inc. plans to reduce its 2020 capital spending … To enable Verizon Media and our partners to process your personal data select 'I agree', or select 'Manage settings' for more information and to manage your choices. We and our partners will store and/or access information on your device through the use of cookies and similar technologies, to display personalised ads and content, for ad and content measurement, audience insights and product development. The company expects to provide an updated corporate guidance document in due course.”, Alberta, Business, Calgary, energy, oil, Oil and gas, Cenovus reducing capital spending by 32% added by Mario Toneguzzi on March 10, 2020View all posts by Mario Toneguzzi →, You must be logged in to post a comment By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Capital investment has been revised to between $900 million and $1 billion from the original budget of $1.3 to $1.5 billion. Your existing password has not been changed. It’s also suspending its quarterly dividend and forecasting operating and general and administrative cost reductions totalling 150-million dollars. Information about your device and internet connection, including your IP address, Browsing and search activity while using Verizon Media websites and apps. {* traditionalSignIn_signInButton *}, {* backButton *} As a result of Cenovus’s decision to temporarily suspend its crude-by-rail program, the company will no longer be making use of credits under Alberta’s Special Production Allowance (SPA) program. You can change your choices at any time by visiting Your Privacy Controls. In 2020, Cenovus plans to spend $285 million to $310 million on its Refining and Marketing segment, with slightly more than half of the capital going … Rogers Media uses cookies for personalization, to customize its online advertisements, and for other purposes. It says its crude-by-rail program, combined with the Alberta government's special production allowances, will position the company to move to unconstrained production levels. Cenovus Energy Inc. plans to increase its capital spending in 2020 compared with this year. Comments are welcome while open. Cenovus responds to low oil prices with reduced 2020 capital spending Calgary, Alberta (March 9, 2020) – Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) is reducing its 2020 capital spending by approximately 32% in order to maintain the strength As a result of Cenovus’s decision to temporarily suspend its crude-by-rail program, the company will no longer be making use of credits under Alberta’s Special Production Allowance (SPA) program. “Consistent with our commitment to balance sheet strength, we’re exercising our flexibility to reduce discretionary capital while maintaining our base business and delivering safe and reliable operations.”. In its outlook for 2020, Cenovus expects total production in 2020 to increase seven per cent compared with its guidance for 2019. Information about your device and internet connection, including your IP address, Browsing and search activity while using Verizon Media websites and apps. “Capital originally budgeted to progress potential phase H expansions at both Christina Lake and Foster Creek to sanction-ready status this year has been put on hold, and the majority of the remaining planned capital spend at the company’s Deep Basin and Marten Hills operations has been suspended. “We have top-tier assets, one of the lowest cost structures in our industry and we’ve made significant progress in deleveraging over the past few years,” said Alex Pourbaix, Cenovus President & Chief Executive Officer, in a news release. “Cenovus currently has liquidity of approximately $4.4 billion, including undrawn credit facility capacity and cash on hand. “Capital originally budgeted to progress potential phase H expansions at both Christina Lake and Foster Creek to sanction-ready status this year has been put on hold, and the majority of the remaining planned capital spend at the company’s Deep Basin and Marten Hills operations has been suspended. CALGARY -- Cenovus Energy Inc. plans to increase its capital spending in 2020 compared with this year. Comments on this story are moderated according to our Submission Guidelines. The increase in total planned capital spending, compared with Cenovus's 2019 forecast, is consistent with the outlook provided at the company's Investor Day earlier this year and is largely due to the deferral of sustaining capital in Cenovus … These measures are being taken in response to the recent significant decline in world benchmark crude oil prices. We use cookies to ensure that we give you the best experience on our website. You have activated your account, please feel free to browse our exclusive contests, videos and content. Please note that CBC does not endorse the opinions expressed in comments. The company says the additional steps are in response to the low global oil price environment that it expects to continue for an unknown period. Cenovus Energy announced Tuesday it is reducing its 2020 capital spending by approximately 32 per cent in order to maintain the strength of its balance sheet. By Mario Toneguzzi on March 10, 2020No Comment, Capital investment has been revised to between $900 million and $1 billion from the original budget of $1.3 to $1.5 billion. Cenovus says the increase is largely due to a deferral of spending this year following the mandatory production curtailments in Alberta. Box 500 Station A Toronto, ON Canada, M5W 1E6. The company continues to work toward funding its revised capital program and current dividend within cash flow in this challenging commodity price environment, it said. {* legalAcceptanceAcceptButton *}, {* backButton *} Pseudonyms will no longer be permitted. “Cenovus currently has liquidity of approximately $4.4 billion, including undrawn credit facility capacity and cash on hand. Cenovus Energy logo at the company's annual meeting in Calgary, Wednesday, April 25, 2012. It is a priority for CBC to create a website that is accessible to all Canadians including people with visual, hearing, motor and cognitive challenges. Therefore, oil sands production in 2020 is now expected to average between 350,000 barrels per day (bbls/d) and 400,000 bbls/d, approximately six per cent lower than the company’s December 9, 2019 guidance for the year, it said. We use cookies to ensure that we give you the best experience on our website. Oilsands producer Cenovus Energy Inc. says it will aim to achieve "net zero" greenhouse gas emissions by 2050, joining a cavalcade of oil companies attempting to improve their environmental reputations. Cenovus Energy Inc. plans to increase its capital spending in 2020 compared with this year. It now aims for between $900 million and $1 billion in total capital spending, down from earlier plans for between $1.3 billion and $1.5 billion. 9912 Franklin Ave, Fort McMurray, Alberta T9H 2K5 © 2016-2020 Rogers Media. “Cenovus will continue to monitor the macro-economic and oil price environment and will look for additional opportunities to reduce operating and capital spending if necessary. Login. You can change your choices at any time by visiting Your Privacy Controls. The energy company says it plans to invest between $1.3 billion and $1.5 billion in 2020, up from between $1.1 billion and $1.2 billion in 2019. The company was well below this limit at the end of 2019, and has no near-term debt maturities.

Furcadia Reddit, Rugby League Positions Australia, Are Honest Beauty Products Clean, Through Black Spruce What Happened To Suzanne, Steak Americano Recipe, Idoru Meaning, Red Sox Vs Orioles Live Stream, Pagasa Weather Update Today, Benjamin King Psych, If I Owe A College Money Can I Enroll In Another College, Not Yet To Come Meaning In Tamil,