CENOVUS ENERGY INC earnings calls

solvent-assisted SAGD use

Q (Greg Pardy · RBC): Analyst asked how broadly Cenovus will use solvent-assisted SAGD and why they sanctioned the Spruce Lake project. He also asked how they shortened turnaround durations and what changed operationally.

A: Management said solvent-assisted SAGD is a targeted tool for parts of the portfolio and that Spruce Lake is the first commercial use. They said solvents can cut SOR and raise production in some reservoirs. They also explained shorter turnaround impact comes from decades of design, interconnects, bypasses and spreading work over time.

"So Greg, we believe that solvent assisted SAGD has targeted application in some of the areas that we have within our portfolio." — Jonathan McKenzie (CEO)

Christina Lake links and Sunrise capacity

Q (Dennis Fong · CIBC): Analyst asked about plans to interconnect Christina Lake North and South, plant limits, and how that affects well plans. He also asked how Sunrise can ramp beyond current rates and where constraints lie.

A: They said they are studying physical connections between the two Christina Lake plants and will show details at Investor Day in January. They noted Christina Lake production is ramping and plant limits may be higher than expected. On Sunrise, they said the facility has more room, the team has debottlenecked and they need more steam rather than treatment capacity to grow.

"We're seeing that ramp up to probably towards 125,000 barrels a day by year-end, and that's a function of the redevelopment wells and as well the fifth OTSG coming on stream in Q4." — P. Dahlin

2026 production outlook and condensate

Q (Menno Hulshof · TD Cowen): Analyst wanted to know what would push Cenovus to the top or bottom of the new production guidance range. He also asked how much condensate Cenovus produces versus uses and if future supply is a concern.

A: They said the guidance reflects a P50 view and is driven by redevelopment, better reservoirs and well pads. They highlighted July jumps at Christina Lake and Foster Creek and ongoing growth at Sunrise and other areas. They said they consume far more condensate than they produce and cited about 20,000 barrels a day produced versus about 240,000 barrels a day consumed.

"What we try and give you, Menno, is a view to where we think P50 lies in terms of the future production guidance that we're giving you." — Jonathan McKenzie (CEO)

condensate supply solutions

Q (Jeffery Lawson): Analyst asked about short- and medium-term ways to meet condensate needs and longer-term industry options if demand grows.

A: Management said there are many short-term shock absorbers like blending, adding light into the condensate pool, and choices by upgraders. For the longer term they expect price to drive more local condensate production and noted options such as pipeline capacity increases, recycling (DRU) and, if needed, rail or projects brought forward with faster growth.

policy MOU and West White Rose

Q (Neil Mehta · Goldman Sachs): Analyst asked what the trilateral MOU could mean for Cenovus in the early 2030s. He also asked what remains to reach first oil at West White Rose.

A: They said a competitive regulatory and policy environment is needed to attract capital and that the agreements under discussion can make the oil sands investable again. They called this a large national investment opportunity but did not give specifics. For West White Rose they said they are drilling the first production well now, need to drill and complete it to reach first oil, and will follow with a series of six other wells.

"I think that where we are today and what's been discussed and agreed on unlocks this business in terms of its investability." — Jonathan McKenzie (CEO)

Lima turnaround scope and Montney strategy

Q (Patrick O'Rourke · ATB Cormark): Analyst asked what the Lima refinery turnaround will cover and whether scope or timing might change. He also asked if new Montney licenses could become a larger part of conventional business or just fill spare capacity.

A: They said the Lima turnaround is a large, planned scope focusing on the crude unit, VAC unit, isocracker, hydrocracker, reformer and back tower work to maximize heavy crude throughput. They plan to execute it safely and are prepared. On Montney, they said this year more conventional capital is being directed to Montney, focusing on liquids-rich and top zones, and that will continue over time based on economics.

"I really getting after the crude unit, the VAC unit, the isocracker the hydrocracker reformer and then a couple of the units." — Eric Zimpfer

Canada crude flows and downstream progress

Q (Manav Gupta · UBS): Analyst asked if U.S. refineries will pull more Canadian crude given Strait of Hormuz risks. He then asked how downstream targets set last year are tracking and where more improvement can come.

A: They said aging Canadian crude naturally flows to the U.S., pipelines are running full and that steady pull continues. Pricing and physical egress options govern flows. On downstream, they said safety and reliability have improved, which unlocks many low-capital commercial opportunities like moving product via Great Lakes and placing more jet fuel into markets.

conference call closing

Q (Jeffery Lawson): No analyst question. This is the call wrap and closing remarks.

A: Management thanked attendees and closed the call. They said they appreciate everyone's interest in the company.

"I'd just like to thank everybody for joining us." — Jonathan McKenzie (CEO)