Cenovus Energy (CVE) 29 Oct 202020 Q3 Earnings call transcript

Good day, ladies and gentlemen, and thank you for standing by. Welcome to Cenovus Energy's Third Quarter Results Conference Call.

As a reminder, today's call is being recorded. At this time, all participants are in a listen-only mode.

Following the presentation, we will conduct a question-and-answer session. advised rebroadcast conference of without be be may Cenovus Please or recorded the Instructions] that call this not Energy. [Operator express consent over now Ms. would like turn conference I to call the to Relations. Sherry Wendt, Director, Investor ahead, go Ms. Please Wendt.

Thank results call. XXXX you, third conference operator, to welcome our and quarter everyone

the to end our information, These Vice Vice Here measures, terms me you President, advisories I Ramsay; the assumptions our Executive Pourbaix; advisories Upstream, this describe Downstream, President Officer, outline and Keith Jon gas refer Executive Officer, and Norrie with Financial relevant release. Chief located McKenzie; today's news and discussion. and at of and President, Chiasson. risk today the our non-GAAP Alex referred factors to the is Chief forward-looking to our Executive and oil

is available quarterly XX-F. Form most dollars and before annual Form MD&A on presented Canadian our The information annual in in and a recent basis. Additional our and results been have information royalties

results website call. Please will Alex. our Q&A the turn of posted we also portion on to then Alex have at will go brief and our We the comments provide cenovus.com. ahead,

between to gives our and company opportunities more lowering sheet. also accelerating increased deleveraging and Sherry, a and structure, Thanks, morning, margins you with value balance combination us stable shareholders. Did a returns on more Husky we market access, optimizes our good funds positions expands announced leader? teacher resilient for to us and It It our everybody. Sunday, create This energy resilient this cost free flow. integrated know, transaction across and breakeven, as to chain, Cenovus our strengthens expand and the

each confident realize operations through goals out I running and Cenovus costs potential to You've quarter adapt the one the I start impressed how continue put our operating I'm measures our of we've of and continue incidents already they Through set remain achieve the every our place employees, to to-date and to be continuing focused business drive combined will optimizations. our additional support with reliably, operations we other zero if we're staff through to for and want of in safely to all the the our our at seen corporate this to each today, across response results. I'm of had transaction that talk reliable this, with us credit But and we our third significant the have time. keeping delivering all dedication of performance. this on We've pandemic. in company. significant giving to teams operating to here XXXX. about in safe and by extremely

year one milestone full recording once safety our This quarter ability incident, recordable event. conventional since and teams third our conventional health and our turnarounds some as have a demonstrated utilize significant plan and challenges marked flexibility as our this in to a navigated significant without a operations while process deleveraging spending, received and facilities at operations to reinforced quarter drilling well the low At increasing of commitment assets sheet. price cost as maximize our saw operations, and maintaining sands well across successfully capital balance well our milestones and well for our wellness structure, completions health and year teams achieved safety as production of our barrel. our services and the executing Lake, suite every to oil discipline one operating operations. It our we Christina again pandemic, two the as Our

benchmark barrels Western gradual the the clear a recovery of price were significantly on to inventory Canadian signs to for our showed through prices summer, oil increase improved able our we and store crude oil crude As production of Select. capitalize

quarterly limit. production turnaround purchasing cost That by at volumes above Christina curtailment maintenance could our offset we and was This partially produce our plant peers, high increase so continue produce facility. activities. Lake to from credit low allowed We us

in was increase a barrels the XXX from net when and flow almost loss free flow operation impairment from loss the The sands oil on end and in of averaged day, the and We in a from oil and X.X quarter debt. to from approximately from the At of adjusted the largely of an quarter, due of which in declined made an third negative the third million million funds prices XXX at quarter, up XXX quarter unprecedented X% XXXX. XXX,XXX debt quarter recorded and third a drop barrels reducing segment. million significant quarter XXXX. we resulted net We in the the progress our this XXX second generated operating meaningful had the of second quarter adjusted of million, was $XXX refining billion million of operating a flow on net billion funds refinery loss quarter X.X the charge negative end Our margin funds increase XXX,XXX XXXX. XXXX, of the of million, the and a operating of third marketing previous $XXX border of to of day

will we are with expect increased cash and With I'm for look happy stability enhanced forward flow the future. to the pleased take quarter, in funds foreseeable we price Husky That's with our that, your While we provide. performance flow to transaction commodity this volatility free why the questions.

comes question Menno with Securities. First from Instructions] [Operator Hulshof TD

extent range? and part heavy to thoughts on and assuming be continues you it's your year-end through I I'm to it could maybe that near-term, early what Husky more give even mid-XXs, a for the in that operations thoughts $XX helpful? to but just would XXXX? the to the question your transaction. differential, us unrelated can WTI operationally the and And the storage Maybe outlook SAGD over trade front in the we dynamic on becomes call conversation, the any specifically, expect one the have and of

looked maybe the ourselves netback of in can as variable tight the economics see, we and and Norrie But of start talk I'll at about when kind side Chiasson. even WTI operational Keith range cost the we it's see Menno, that still the Hey, we positive. differential mid-$XX things.

through we anticipate So, this time at would rates. full produce

obviously, we so. are to ending no forward, in be do curtailment to unconstrained As able and December, to production have acquire longer look with we credits

we So, closely it's something the netback. and generate we're watch and able and positive produce monitor, of that production, really nature our because cost variable costs of to low

It's our Norrie from business. Ramsay Upstream

flexibility have flexibility. that up And curtailment the that always to a than our to all brought on, in second back in can most higher actually is as third full a more barrels actual and production, and it oil from barrels in. down again, remember, you going curtailed a production was for we overall rather December the to interested average the business limiting lot a the what some day, higher If you obviously onwards, second once volume month levels. production sands our than our about of value days, see And increase our and a in XX,XXX as But actually do. month by and been we we'll quarter, that quarter, day. it's we have quarter, would be We could conversation XX,XXX it's value XX% have

Next question RBC Pardy comes Markets. from Greg with Capital

on pick Alex, just you. to theme. A couple Maybe safety the up for

to are going as safety here the to anything proposes there or if add ensure can reliability combined around that that? actions noticed. and is have be there thoughts wondering, Just similar have taken specific entity will you you Is that

safety company, at one about Greg, to start our I and quarter, can time. know out about number all come I is you criteria our number And talking safety to usually as prices that. is I'm Yes, commodity can by think this it and one the guys performance. but commitment of happy safety talk go, I tell, focus process human our every And

we seen the exact can the deal track that and everybody get And the record. on history safety through from us, is resources our that to to exact same that over entire we and as ensure So, towards put focus that we ensure so can this closes, going we're you've deliver going that expect continue. human process to that same deal

prospects, back we you policy be how connected remain wondering continue I'm with question would to comes about optimization? that. will storage new the into hedging really if that be integration should In were with also to context just one second different thinking dig hedging but is the the organization -- very if And can again. tie you

that can start Keith to weigh Jon maybe may in. and Sure, want

for the really business question. optimization kind Yes, our that transaction. of thanks. assets. is that lock hedging, really capture Thanks locations. value that, think storage trying we one value the of And the of kind we and time a When is from When look we're over capture components, period our sides opportunity seeing up there both we of at we're side really where different two opportunity, to transportation or around different in of a to about

from side then we plus or things. physically that netback of realize price sell So, we minuses. on the side financial actually when a there as And lock we up. barrels, may settles, that could it the But show

materially almost of what we produced uptick. see could that of barrels would to April, to been key they sold even And Hardisty sale, a that a just if as or In where selling because WTI as maybe have Coast may an barrels April. were price we in a we of have $XX We physical though actually the $X and $XX, for locked stored would that chose store backs then or those loss them realized down than there. do realized transferred and uplift well $XX. those we the an settled in June that. have July, And barrels at those higher have in shown transaction that too, not Gulf for sold to though WTI components the We we net barrel. and kind were So example our in our of was barrels and about come

less obviously, entity WTI. WCS, differential less So when so Hardisty, exposure of to But the the forward, think to entity has going has us. WTI becomes lot concern no the a combined exposure that and for we still a combined

you to corporate that, So do maybe with Jon, up on want pick hedging?

that think to I questions your I think first. Keith you So, Greg, answers touched give really there's and would the I on three

about of them. we of our As this transaction molecules market us more optimize many, options value the is give to take many part that us a number assets for get other acquiring to to to

going XX we're type that absolutely So storage. hedging million continue today we believe has optimization would have to barrels And described. for you just example, with Keith of that should of the about

as going have to XX as we're forward, Going incremental to pipes. closer well

to going So advantage an intend increased are for us those and we full take of opportunities to ways that. present themselves

the Secondly, one major to that I doing reduce reasons volatility flows. is in would this cash the of for say our

flow rise commitment. our cash number sheet that way a would streams. But a on hedge basis about become is debt hedge to this an clear that a sheet is with level, expect Alex through these we've since free becomes our going is balance now levered time that prioritize that to been So fluctuations. manifest really price at until commodity you corporate to the balance this continue we transaction inherent inherent the will flow something under forward or the point started an to comfortable best deleveraging we've sort we're said, talking sheet hedge reached us the the And I corporate and one levels. And to can to back cash finally, and again of come balance level we transaction time,

with from comes Citigroup. question Prashant Next Rao

the bit little all wanted the a just just talk I more. I they appreciate to about color hedges do.

should for quarter, really quality, And if performance next underlying it asset to I I quarter the this core share, current thinking MD&A quarter, of the from guess, that all about which our related cause much communicating communication to XQ. base a the of I FFO share, question, or adjust per volatility think this of those But impacts that Cenovus might speaks current this and how us and mid FFO job seems the $X.XX highlighting share of environment. did we good though, to the at next disclosures staff how that the in per I guess quarter? On the in we be was sort program, program, think per

the curious six there and about answers just reliability So, of and of that the sort called of core how takeaway about the right going four thinking what's should the sort we remainder forward of think to about performance over the the of also hedging program, months sort into next about assets? this

McKenzie. its Prashant, Jon

sold program many that notice my And we hedge the you'll up put hedge we locks about quarter, thinking you're the that think produced. And with I additional wrong market. per place QX more we in is this in we we're suspicious of to sell them confusing the or in And we way. different selling in margin economics. And accounting a profitability. the barrels you're took treatment what program the straight And than do curve, barrel opportunity in along than $X lock QX. rather locking sort in so in into we that barrels QX versus storing selling in start by contango $X

Now, they that us if more $X than WTI by back or in that $X rises showing was curve increment QX.

will is, we're And versus the We but one market. incremental is what not by reality in loss, a in we're margin hedging in show doing period selling speculating locking another. the

in designed down not hedging gains are margin. goes in but losses, period. a marketplace whether how one and incremental So hedging period the speculate, through really don't lock get WTI it through function confused is our to they by to the But one is up or of program moving

he sort basis. evaluate of was of have portfolio by the Any outside portfolio? to overall be I color profitability right about opportunities construct think around probably synergies with you that maybe posts give too that optimizing Could appreciate oil asset versus transaction. and when you that to guess, balancing help had think the returning color now. production, another I sort of of, you this to through the the I look monetization the you post merger. you I of would consolidated goes are was much sort question how Specifically, what's outside and that there us transaction, on a can't helpful? black thinking portfolio through But which I

anytime go scale companies you and together. this Sure, have of kind scope two

through value is business non-core. our continuing process this can are to at that a them and criteria Company. those as really generate of assets into a going of go to the of imagine, determining kind it and decisions, what to in And base go the is have process You're in go core we in their of but lot the a importance there through you of to what can is those about strategic

a going I are out think we I I will, look already combination. shareholders. is my mean, pretty given share look as take to assets at that creating to And of regard. that And it going kind I we of be the transact cognizant non-core for going of So, people are right now. that that but a own we to time good value to and monetizing assets it -- understanding willing we're at are think in know that at a I falling values don't other actually worth really to -- to our also we're have be is of think issue perspective, from take can I to this that are proceed hard going the I'm they can more other people, we But think the

So, expect more this. from us on

time little And, quickly. yes mean it. act bit take I freely we going a to of us a point I little more where to can think about going a just we're to talk fairly it's we're just -- at

you Okay, very much. Thank appreciate that.

worries. no Yes,

Next JP question with Morgan. comes Phil Gresh from

about I was a contract while up the ago. that you that you just thinking have rail signed

takeaway it goes the have the end this maybe address I if till now I XXXX. think this that with period, you And get provide? the that, happens the we last of to would the that apologize, call. takeaway once of and But Husky end on what you excess

you're back Yes, that of of right, off contracts Chiasson. kind Keith it's XXXX. Phil, Hey, those at of end some fall the

variable of the which the relatively to to allows through time, quickly and program around able because of unit cost negotiate on we'll in collapse. bunch part investment some commodity further you year at been small that time. we're would our that those reduce program us continued store actually the in ramped year, last able hands that actually up the quickly. we facility, prices is our evaluate have tell facility, the at on contracts. to when we of didn't to made this those ramp And I down sit a contracts trains But [indiscernible] that we So we What first

do ramp of a really a take over what overall than past, and quick to to we've in I able itself program, kind ramp talked up months about span the and kind it have up we've portion the of not been six months. But So lending of ramp and down of is think ramp flexibility it less we're down the to period agility in couple of and the this of program now.

will of at end then or kind all not years of you look egress we next costs of want to of shaken over the and at would we'll out the do know transport at for to the kind to and kind at it's those market those So couple be Coast, opportunities not. look how or to the Gulf contracts, of reduced able we coming extend whether that

think I with guess Is this the are transport mean cost quarters? this this which given of cost. utilized? we rail into being the having be into move right lower start curtailment, that to team And just not go as you'd new a And forward? real Does that would you quarter, than costs that my follow-up to it coming the if is each of XXXX? do using way about think we your actually lowered of the out then for maybe that comments go about reduction function prior

Yes.

a additional in We we shouldn't to kind economic still actually use acquire to having accumulate December, in through been versus of we've make able Coast realize at you up them analysis then cost to here, netbacks. with to the portion it really benefit market it the In variable this program fourth down are achieve to And surprised run looking Gulf program. us and a enables the be rail of credits Phil, can the us to barrels the reductions on production in allowance. see the to costs. the higher So supplemental starting quarter and the down cost production comes November,

So some improve the volumes for the us you not surprised shouldn't for the quarter, some full be overall program which move to but volume, obviously our netbacks. fourth quarter, help fourth see will

Phil, Alex. it's

one with freight to to really pricing that. able our also going it's improvement achieve add tribute making more we've opportunity really And significant. This much this been a thing is maybe work compelling in been I'd have forward. but Keith's they team, and Just partners, to to good a

the of broader remove curtailment, going think their point the And is you macro your suggested Alex with rail? for what's to but contaminants, mid perspective, why need removal a the know until do to commentary the from not decision XXXX as the industry that view? I

mean, suspect. I I

at see like volumes wouldn't us. the here real Keith it's it rail those I've about our And of said, think come clear think they at surprised terribly to have and on our economic I costs all don't bit I think to sense And think over them where out be curtailment a of barrels to next driving as sort for of suspect I year been away industry sidelines, us it be operation. I of to up of is, going XXX,XXX barrels successful I a But a rail. one see to back but see this, looks been features would was making moving and the ago. with consistent not all XXX,XXX months. I I day. all pretty few the expect be do it, very going surprised we're very in I

Next Gupta Credit question comes from Suisse. with Manav

are away. headwind understand as big Obviously, improvement a the condensate of and went you lot just to supportive, a XQ was was of in benchmarks for trying there netback. Quarter-over-quarter, what that more kind lag the but in pricing

netbacks. closing led to in and the started benchmark You to the that gap improvement

you lag XQ a give little on exactly If versus the comment XQ? and pricing condensate how could about what

it's Keith. Manav,

to I our had of think we is barrels and moving improve period kind this of kind out by Jon are what earlier another. netbacks build a into how about one of trying on talked

sold at we store into quarter, second realized if very pricing, those. lot were to for that the those obviously, those the able and in we barrels, We move quarter a realizations have low would them QX been those, in and pricing. have of quarter, store much So higher

in you back environment. production, us. market obviously, that's quarter sales see look putting really our I in all net you into So back increase a if to relative in price an the that relative at higher third And for to those sales in flows an think And the improved production. can barrels

Perfect. A quick follow up here is.

trend it at positive where was going costs of You've and X.XX. now to is from to XX.XX Creek doing all the rail part look down lending it, helping Obviously if seen and Foster. very a but at push Foster rail, down in is besides you out? XQ lending a cost transport Is there you're transport way in else anything that down you the at which

you'll think rail, lot quarter move and pipeline you barrels that which as move by down all move pipeline. we I we production depends Manav, a quarter. variability of barrels to on see on the also we It choose that but to indicated,

to it assets quarters, costs. in all how Lake. barrel months going that are to may utilize will may and can Christina maximum and months our be of be you and we quarters it Foster, But value. for value our variability obviously, drive that the on we and maximize get some some It transport some depends So that

off that assets down rail costs use with the because of we Company. our the transportation for those capture quarter right to through are that, but will You're third value incremental

quarter asset. assets quarter, variability So, of see you to a will bit to

And out X color, last be anything XXXX think could hearing a this replacement, Enbridge you Thank question Line you're you. Do is. event? any there?

period time we're of are construction that critical some that hearing, in drive is the will towards And they Manav obviously, then coming that project. XXXX marching that and startup. permits, around decisions here some November Everything

they of start is their and intently that startup we XXXX So, construction watching quarter, do kind we'll think fourth get then and be if realistic. through permits the

Next question James. with comes from Chris Raymond Cox

and why would comments tax impairments, the anything you record asset quarter, bad any that taking Maybe for the first thanks any question. Thanks quarter? conducted just on/ be didn't revert versus differentiated one you that guys just on at what my may and also just

Jon Yes, Thanks, McKenzie. Chris. It's

for things of as One quarter then as as indicator assets they have they indicators in an our do of dropping precipitously not recovering as with took impairment. impairment obviously assess every Downstream. and of And we the been is refining with cracks our that have, all we as quickly

So we those of more evaluate Borger. Wood both say one scale I much efficiency at we The assets. would a refinery than complex is River thing have greater with a is

we So, answer versus of the reality value when did get net flow at of we but the that look out one kind carrying that any basis. not is We the it we book got value impairment. discounted did River and the Wood relative cash the ran to we to, on have to to

Okay, on you to playing bit some Lake set I about could or wanted slides think think in current physical And then how back your contracts Polaris. integrate do those deeper those And Wolf you monitoring other just your much FCCL a by thanks. you maybe contracts for curious of grievance pipelines dig the the talk Downstream? the believe integration to also your those there? And plans contracts Husky and of transactional Lloyd into between of in ties kind on [indiscernible] complex, circling here, of I'm and how

that really synergies when our be in targets, that did really clear want and we we of We're synergies this. to we're high The right we our get put really capital we any a synergies X.X to on put in synergies. the were our able end as very time. have of operating confidence are that that we period going include a out in those short of And front billion didn't to out that

and too just really an integrate exciting give Lloyd not today, early minds a and talking opportunity through about molecular our us, to how time, working that's going on clear administer FCCL values on broader to the us. we talk strategic very going but be and into FCCL physical between something at back, So Lloyd a us integration work in Lloyd, it's when But that it's you there. condensate going that through asset asset through through molecules the coming a feature integration optionality is to that's for integration time, we to the the is think of We Lloyd is are on. and be that it's that legacy magnitude about of lot and possible but integration,

ways negotiations you Many side require other will achieve just other parties with it to physical and integration just off different that than Husky? to between the

it will. Yes,

Next question comes Pickering, Holt. Matt from Murphy with Tudor,

with in some appreciate some ambitions, isn't that through over wondering carbon there. out plans of the carbon meeting that as all the about, it'll we're around those and or I work things same. whether release, that ambitions, guess, acquisition oil certainly given your I the on more those thinking girls solvents, of insensitive, teaser appreciate the firming Thanks. But given guys a just if laying quite perception talking But oil sands world, just to emissions long-term, up time other take the and sands otherwise? you could sinks, provide bit a being of and emissions

spring. our I and mean, when we in came targets ESG our the targets out with

of what targets would come to but were it grounded options. out an Not of bit with with be that. around I up engineering plan. had the come done were I comprehensive plan. within pointless what color tell little of analysis you our is, would targets think just a didn't business achievable a what weren't we possible, we until actually economic that in sort gave and options And we business We, those what ESG

obviously -- it, and we leader of that, say, you if what looking would require about Carbon element of projects it. an the one I will could above part I of of how a whether carbon -- that was the operate the a actually and But we people at something appreciate a believe it's sequestration. in a been although think of it assets. it's be may is solvent changing little that But acquiring deal that cogen kind that thing expect be intensity technology solvent a benefits there one that So sinks are is we there carbon offsets. capture, carbon be, of would technology. whether there GHG capital, say reduce and our there by the great there's we solvent we're technology, did I lot things of a don't lot of can we've capture bit I think all are

And And ability actually on capital only we with go what assets but whole Husky don't so the get to on, a all things. GHG not meaningfully intensity. improve And basis suite coming capital. assets there's of forward assets, what now, there's get the and have operate a those how

owning Yes, to market, there progression our to something you're there. up in I I value the note change if about on If the was from the and XXXX, are a integration it Can appreciate transaction, rates Husky thoughts than completely sort unrelated of of to the what's integration. from Canada? how guess, and back follow the with just may thinking? approach thinking the whether go that just on I this Investor about of U.S. Day, hard in But I how Or about was rolled for advantage at really to of did time appreciate up? healthy Husky example, the pipeline rather refining with you think a changed amount I thinking a pass which integration the talk accessing take you're point. of the away yourselves in an Was opportunity just strategy capacity is

it model business business at that model, where related Alberta maybe love back I've on think kind comments Matt. have not looking upgrading the of our at just market flow off integration market. what on -- than everybody's interested said you've of been for we at at volatility could exposure my a a was looked global time, to And, to our I've what, but via And whole would like But logistics start, very heavy if I achieve and very seen the metrics come barrels. price situation highly But processing, since our that's where think to merger. every barrels you $XX at of time Yes, extraordinarily looked to go look oil of obvious differences the the to a picking from or And I processing it strategy down, rail came at pandemic valued. values things. been we seen to our have we cash take or a it's were out just valuation of refining and where I like, integrated have to on couple ago, why consistent via focusing the the for actually of is and I logistics, assets to whether in opportunity be and I earnings pipe asset at I'm of always the Husky said, a fantastic or spreads been our opportunities at looked indepthly the pricing. lot mean, heavy $XX you've very that we our competitors business the of on years crack that the a rather peak And when get was I'd

an you our mean, integrated the into up valuation break do kind that of barrels. you would to it that business absolutely -- see barrels that downstream of however XXX,XXX You compelling. I business, was a and refining upgrading and day molecularly downstream upstream if

just Yes. I Matt. to that, would add

volatility I are of think consume produce. that different this molecules molecules as really And I think opportunity whole Alex what have is that the important that to And optionality going as going praise that's different a ability we there forward molecular integration. the a processing to well forward. level units presents whole called tied used gives Cenovus for reduction really our that

about So, extent value tightening shortening the it's that and and we up integration, chains can. just up this to isn't going our forward them molecular integration about

comes question with from Chris Next Barclays. Tillett

a quick for one Just me.

sort fourth to read like the if tied resuming but a it's opportunities that side, And then, is of stronger this to some incremental wanted or some you're the the activity XXXX? pricing, looks quarter. in sign pursue my conventional in there in see it of that conventional was on just confirm On maybe interest seasonal side

are years decline to very of mentioned. IRR, as you've at It's asset very prices, us we And been modestly a obviously a it asset. Alex. the at allows an prices drill Basin. mean, Hey, over three to two that that cycle, this for put these prices over we've high few to years opportunities, to look material Deep growing. gas at, disciplined a was And very or attractive kind the years, last not the last lock found up can very, is few then and We from gas right opportunity levels. fill with No, keeping gas given it's short decision it Chris, with capital bit take the them where flat I basically to least to you

the And as anything play terms can in those the offer, follow up, pro in then assets just maybe you role company? that of might forma a

I that we an everybody was And a business conventional a couple think, asset question ago. monetize sales. hard that Cenovus. I of to about whether at years portion of to look took responded had earlier opportunity And a there as for really knows,

can look you conventional price take you of overseas think kind with going a at really that. higher together We're an I to in put assume if hard Husky environment. business, a

observation It's pretty a think value, for little come improve tough if stay especially next likely prices are. while, prices but the will my I I where today is though market up. have over the expect even they still that

So hard that. at look we're to take a very going

comes Goldman Sachs. Next Mehta with question from Neil

up downstream excellence. giving looked the different and the you upstream here shown guess couple performance. it's Husky first the in terms both maybe he assets of of been for of has is execution operational I in But challenges you, well. Husky in one at really and question And that's ways of the years know and last as

you how look up into How And speed. you are did of at assets. to assets, of do valuing table those that take bring process you, think you them through these kind the things can went consideration? As as to the you get there to Cenovus

It's Jon, Jeff. not

sorry, I'm Jeff, sorry. it's

you, ahead has right might this concern the be number call yourself, has and number forward. going this off of us. It been minutes for safety our I but mentioned, tell is top the will XX of was one always an always one concern absolute Alex

assets particularly look we on we look that acquired, really reservoirs unfettered everything on conditions assets, we the E&P we I the access And is inside nearly top would a can as that period say this was it's think the upstream value base, these that the there. with the my market, to we aspects what done well company, experience right terms that the do a M&A is to all over in we operated had arrangements really have be side. the is asset this our the wheelhouse. and due When when the So really at I months. been with would conditions comfortable we're add for right diligence of the in unprecedented of our tell And of asset commercial and six very we time. And that you the we base at do diligence. on that can of in short think of realized value And we fairly

through into we operation As of it look took from the the all improvements of way all the Husky to relates personnel the are at the have and way asset refining directors time the safety some coming And condition of we as a on our reports, downstream, that time operations making been deep very lot their some safety terms well remind through I and to in changes there. has board two process, their and as practices. assets of who systems, reliability safety well very, as their as you, new

board. top ourselves something took in that it's our So something of mind we for absolutely was time the on, it's

ferreting go done a of on think forward. we've right comfortable and job basis the incidents of that I comfort And our a kind of these going forward are satisfied we're on out not we've ourselves in path, where going we're have we this. to level thorough

but there's either follow weekend, or about, your conversations forma this investment subsequent grade? Any get a update. breadcrumbs asked Great. is accredited pro they to And the this with back the up investors that this agencies transaction of view if and I the been gets here the ratings had over to how I way whether about don't know us

something are important for That would now. to what but, be that's Then, grade I you out have it's that sowing seeds can our us. read short in investment rating into the the you put will very can't those for we expectation all return speak agencies order. that comments to their

Next question comes Stifel Dunn from Mike FirstEnergy. with

to based Not I to others. everyone. outlooks has generally had around naively, morning, have something the, timing turnarounds their your maybe sales production. strategy the but versus players good did for them for and on I of it beat thought that somebody guess, hedging I that your do Maybe question Thanks, another was maybe been on would else debt, this seasonal

was the weigh walking So and sales production finding Alex, done how the just party third or benefits that a contango wondering, of that them hedging, delaying and the equity barrels sales delivering your was without part you later? own barrels of Jon cost is, in something second if versus in versus past of strategically did then you're that by to buying

Mike, it's free done. to to maximizing always is what forward is important cash us But tell I really as organization. Jon. going This is you would the we've what the something flow

sell XX cash into the of is, to we million in when free using available and about us have, at we to the storage period. pipelines have we any look can flow So and that barrels future the assets increase we future

of a approximates rigorous basis free diligent is that. of sure and do to to to points that returns cost we hundred do of our we a maximizing beyond capital. flow cost doing internal a that attach Now, that, maximizing cost shareholders. But kind cash an basis make there that we're And few on

Okay, thank Jon. me. That's it for

along our would and for I in curves. shape taking futures thing the of all the cash is on. future terms other playing assets curve Company. that the length we're of we're maximize of not is. say, is doing us the something market This The is And What the what to doing Mike, speculating flows using we're gives

MD&A. I sales And losses, WTI so it in net financial the from Jon, quarterly forgive be all hedging you releases versus, the I your press production volumes? me, when like Did quantify guess, missed out, timing with gain if guys been your lot there's of strategy that your in line body of to including the a

confusion causing the but we think is the what versus is is you what's this given physical haven't components Yes, the on MD&A. the the And see business that's I of what mark-to-market the financial what underlying doing. is the accounting you gain, in net

Mateer Harry Barclays. from comes with question Next

First transaction Husky that? structure Cenovus closing how about [indiscernible] forma question. perhaps pro with for debt go you the have then doing plan your if Maybe and so, talk intentions and about treatment and and you if

going view all again. that's We're something to that looking grade but say, is, of talk about it's forward. to going one that to question at of very that we the are It's value important Harry, really believe I'm on investment this. think around [indiscernible] have What to any is I we taken get would for, you we and haven't the the this we're not it's though, going your back options to synergies and new Jon, to is important well company.

structure see to do So and not you we with into we'll only talk to can in back to a complete get short-term we'll expect reasonably and to capital also would that us required to everything this do framework space. you We've a is committed come us do that how that. do that together way a financial returns. about that back we that But shareholder talk one that comprehensive the But than also will with the it on it playing framework rather you or allocation in of incrementally through do piece screens run into to capital time. we intend give about and want

I'm costs synergy the cash on the our today, of talked missed how but if realize targets deal? goes guys initially then I call of including you this to major actually have capture the But driver upfront weekend And last you think to about just out sort those. apologies much earlier your wondering door

Alex. Hey, Harry, it's

over think XXXX. expect and $X.X to million. of Think run-rate largely And them annual the together. to of cost $XXX putting the two billion onetime synergies of the XXXX I entirety want that about about compares of companies that in that the to if think a of in get sort year we just you about a get costs

News. the comes question Robert from media Tuttle with last Our Bloomberg

AVR I terminal. something DRU the noticed a your going there with was a built or filed rail to be permit about near that's

of there that? rail DRUs, guys your operating bigger one perhaps mean, what's have to terminals? a were at I looking plan there one you outlook at your on As is the

taking us that's the of and Hey, DRU. the obviously, Robert, that project. application just the give location obviously, it's Obviously Keith with regulatory transaction to Chiasson. around another DRU We look underway, flexibility that the the we're at, filed

make had that the just flexibility. was to in we that So, sure a process step

It's Robert. Yes, Alex.

think clear the really ability to on that. about and be us carrying that to the than that we and to more to to at crystal said Just give that direction. we when DRU DRU a no should on looking on have were one the going do We through permitting filing were just engineering forward the go is option anything

And call time, turn to I'll this the over Mr. Pourbaix.

of I questions. the end think that's our

and the the enjoy So for time taking thanks, rest your everybody day.

This conference concludes today's call.

now disconnect. may You