Cenovus Energy (CVE) 3 Nov 212021 Q3 Earnings call transcript

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

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 to now would like turn conference I to over the Ms. Vice Wendt, President, Relations. Sherry Investor Ms. ahead, go Please Wendt.

to quarter gas Thank you, operator, the and the assumptions call. information, welcome today the everyone end to measures terms of will you oil located release. non-GAAP results These discussion. forward risk XXXX refer describe the to I advisories factors conference to Cenovus’ relevant and referred third and at today’s and outline news looking and this

We Additional annual XX-F. will Pourbaix, and Chief recent All and most brief after one available please unless dollars information modeling directly will that form presented our annual President with team comments, are Relations royalties is questions take Alex Canadian of in in And to a MD&A and please provide then stated. one maximum Officer instead figures and Executive question we keep off detailed with and follow-up and Cenovus’ ask information your on form before those if you our the otherwise on Investor any could follow-up. questions. you call. our hold

ahead. any for questions. can the rejoin You queue Alex, please other go

everybody. Thanks, Sherry and good morning,

First, remains response current a update the let which where me we operate. everyone to challenge of COVID-XX, on our jurisdictions in all

other health field full are latest encourage all locations our includes for and and government able were of at rapid That for do a to health vaccination public who and advice by our so work-from-home mandatory from number required continued to the continue health are local experts. We office safety our own officials. following and staff and staff we of testing officials,

scheduled proof aircraft company with alignment Cenovus flights. as full and vaccination travel ad requiring and from including October of addition, Canadian charter, hoc owned In sites, now our on to recent XX direction all for and flights we of the are government, from in helicopter

modify performance closely and immediately from and have we third foundational protocols we was we rapid disappointed strengthen that I deal. our actions and people. process Husky second safety industries will we and follow We in then the to operations performance. governments safety learned work continue authorities, closing significant these with our our and our to after performance guidance particularly and safety the is operate. seen protect our safety took our combined improvement As health culture. Since events Safety how throughout quarters, public health to by to

in these first the recordable have process the cut For not the our incidents nine-months year. conventional example, did this a of of example, frequency safety to business in occupational injury first single half as we periods quarter, compared another in

very important make safety day. a safety At improvements, However, safely everything incidents despite had concerning goes reinforcement of in and we Cenovus these must These no we every we couple sure is serve as to do safety more top continuing important be tier journey. priority everyone than there unrelenting can that to home have recently. our

I’m you we returns, this we wells before the about drove is now, our redevelopment quarter. high set coming short in production to all by By operating our performance announcement. wells in strong online re-drill prior and results. Foster total this is financial a reflected segment, rates shareholder exist have records over plans per though incredibly increase turn deliver we operating in and Christina have increase I’m the year led the Lake. opportunities quarter day accomplishment quarterly the average third to of teams This our cycle year-to-date. In to why results assets and XXX,XXX this kind led quarter’s production day returns in that to increase are more Christina X% the reflect record that third about with capital that sure X% an continue talk operations day was redevelopment at the consistent quarter. lake Creek Production Christina of of nearly at in with the quarter BOE both barrels of quarter. production These proud and returns, the included and the projects now XXX,XXX quarter, upstream average This to increase quarter, and second that second bit little to and Turning per that don’t we shareholder budget lake. and and results third of the the seen single a for keen everybody start over

Moving talked about might I impacted turnaround, quarter out we second issues Creek, call, into you of that now remember some July. our the conference which coming to Foster treating production had emulsion on

pleased the barrels As we the to deliver results, Creek With rates, asset to and not XXX,XXX September. the that to QX August Foster as day in return full over mid-July. Foster only discussed learnings in and on from quickly are our QX the call of teams per report full but recovered to went incorporated of teams of production we rates each

of remember, is per quality and an in XXX,XXX expertise our the industry, Foster with of asset Creek sands. the a barrels capacity day. This perspective, just another operating leading is For nameplate oil demonstration asset

operating increase Oil we brought performance XX,XXX assets techniques Lloydminster realized operating activity in the operating billion the quarter for the sands deliver applying of pricing operating in nearly combined quarter. Cenovus’ benefits mainly relative second turnaround due segment quarter. company’s strong pads second be day well average to total production quarter. Oil an per driving and continue online $X the to third to barrels of the to the from delivered billion, unit in demonstrated the costs decrease the of to thermal margin margin operating Turning sands $X.X with of projects, the about the

quarter Even unplanned of lower our volumes, production assets XX% held quarters relative costs increase sales the realized for the at time. primarily to higher than impact by X% as relative the delivered conventional production was the quarter, outage. to was second and to business, a business conventional margin. the Looking operating well million flat unit as production about second on plant operating driven of $XXX processing margin as increased prices nearly with with down This the due second high third-party operating

year. Our $X offshore operations over continue to operating contributor free be so to million of delivering a margin far and $XXX flow, operating the funds nearly strong quarter, totally margin this billion in

exiting the Asia as strong planned during And in liabilities in business, a Pacific third field. maintenance decommissioning about order, in announced of the Indonesia towards the future Atlantic China of in operations the daily of impacts Production quarter. day XX,XXX as contribution of partners line we per offsetting with Teranova the received the production during production assets well quarter. was in restructuring working BOE in performing continued second rose with to demand, response in previously our respect million with quarter from interests XX of which

Lloyd Canadian performance average with of Moving at manufacturing, asphalt downstream the operating reliable and upgrader to an refinery the In continued segments. utilization XX%.

the and to that Canadian in refining from about quarter utilization was average rims refinery unit operated for contract Unit million This by unit higher per amount quarter. quarter. X% the the that the in following nearly earlier included times of little detail $XX.XX we quarter, by the quarter, manufacturing, per While year. about operator. unit XX% utilization we the operating about second utilization the minor than lower second discuss at in quarter. to Bruderheim U.S. a million In remind the margin is cost rail quarter. crude the recorded upgrader in manufacturing. about This to third the achieved the third assets, for than U.S. refining outages and $XXX a operating cost to Refinery. unplanned X% up during some recall of at second moment a more QX than in activity a margin XX% average higher the $XX rates And the second impact averaged ramping customer everybody of a year-ago. At while take we in increased venture In of refinery were just and slightly for throughput refineries Total in barrel second our quarter will are which three settlement at XX% crude Lloyd flat outages quarter at relative Lima Refinery, RINs unplanned would second decreasing Lima joint difference still partner the the mind the about was the I $X.XX I of barrel. refining keep held where turnaround about in The began some quarter of the quarter included margins was the other to costs on unit terminal. our

at We preparation a end stabilizing performance refinery, on see alignment’s at the Lima to We the Refinery in reflects for operations. turnaround have been completing production focus in base September pleased quarter. the which the are fourth of we team slowed plan of

to remains rebuild to spend ramped to still have offset we up said it our in no pleased refining we be early U.S. as QX a superior turnaround, the that a continues refinery to be is discussion by well, fair expect XXXX. insurance. is Closing expectations this and large There proceed be result. lower construction previously, As to of refinery so is to throughputs costs and for on-track the will expect I’m report to out back the rebuild in capital change largely that,

Focusing hub. through which on net will to oil than and reduction sands storage Pathways storage on currently the emissions critical to oil operations from the by transport co-founded carbon have capacity XX work foundational its to sands phased industry Cenovus. sustainability, more a our for and we safe initiative, advancing continue carbon project, capture pathways broader company utilization zero is

analyzing policy with address to financial to the place sands. support other ensure pathways achieve the the forward and levels at focus opportunities be virtual achieve recovery addition, and climate are Meanwhile, both to look emissions vision to and its necessary In and in we help ESG economic our oil We Xth. in working for to is are targets the Investor teams of technology Canada our GHG goals. more sharing December on on Day areas updated are held this pathways government

Turning results quarter. for now to our the financial

supported increasing our combined to rising during make tide higher This and adjusted is capacity strong of lifts financial $X.X boats, optimizing the a billion, maximize prices. by sands And it true billion funds opportunity the cash production performance $X.X of operating prices pipeline operating most and from of with funds Our generation that of free rising while, drive quarter. activities flow $X.X to the billion, outcomes. commodity Cenovus flow oil all the of solid

the We quickly to also as opportunity as de-leverage possible. took

balance flow maturities at promised, we sheet, deleveraging. quarter attractive aimed portion of the in As supported transactions while These notes deleveraging These XX-year profile, and free financing offerings the transactions funds near-term. the and public applied as rates, repurchasing to we helped executed strategic maturity we overall notes. at in extended the of completed reduce XX and our near-term a risk financing transactions

leveraged the In the shortly nearly of strong included the addition, quarter quarter. after $XXX for Exploration market several received announced the to shares we proceeds during assets progress with of million end. Headwater in proceeds This sale net of our quarter sales

combined sales million. the previously also We announced, East $XXX in about proceeds gross and closed Clearwater for assets Kaybob of areas

about to $XX of of has the debt a billion, the a interim And with could quarter. faster reduction close of than our imagined shareholder to All today, which to we finished net below billion me achieving $X.X since Cenovus this the are very target $XX debt returns We third announcement. of year-ago. takes led end de-leveraging quarter of our have second anyone net billion,

been has that our fourth dividend reaching on shares upon net commitment, first to have clear on debt interim effective Delivering would the Board for our We quarter approved our per share. that returns shareholder in doubling dividend be the priority, $X.XX our increase target. common

with of debt application we shares, filing achievement to about below In program share buyback which TSX billion. of for XXX the the up approved has million commence net XX common expect of addition, Board to an the NCIB following

context at virtual how day more on about think December on provide will Xth. investor allocation capital we We our

operations. financial this achieving we quarter support below under are in debt achieving to free approach you we And shareholder to eight ratings when time. more BBB to billion benefits balanced able should reliable again those previously, also mid by while further between would net our debt, said reinforce investment business and flow prices, a approach our our will see around and disciplined over application XXXX, operating including of be commitment the returns. closing, plan once buyback driven billion the expect have our strength of as as This de-leveraging to grade XX we results commodity best-in-class as funds to However, execute net performance, In assets well at mid-year. expect is the current

demonstrated has this once it again our discipline to also deliver think, goals. I Company’s on

questions. that, So with are happy take your we to

Pardy Instruction] take will question our first [Operator with We from Greg RBC.

morning. surrounding your that Thanks. does just rundown. that the Alex, kind a once next Good for just target, change year. appetite is as organic that hit begin know to couple is of -- you $X How Yes. investment, mid billion probably this? the say you the first that for you of Thanks questions most it let’s one for

huge the are very and things finding the grow of or But I to think You about transaction is some of out would coming the our but I out to organic at of I think our has bit base. and positive talked a think significant this that turn might little what one talk point bit largely to very, asset a production, have at profitability, call out over type too. Jon, I investment, opportunities of these know of been last and we quarter, are little I Greenfield existing Brownfield about Husky this I talk when smaller you improve I Greg, the opportunities things, a in think the one

And so continued I us. be think focus that with is to going a area

to our thing the I operating it made John unlikely. really, before turn over just really it in would is with advances other the The strategies, company I say, is, has

medium in A scale great you that near announcing to I going would large time think any to narrow company developments I term. think the see example, be are this any slate. Greenfield

going for many back steam have that advances Company. And it and we the capital developed turn will as to and to pads decades on with So Jon. thought Christina just distances our going but But some that really that construction opportunity frankly move to thoughts. a I made be but is slate, long for it narrow standalone in of a the in kinds with had are develop was sorts project narrows facility. was of this emulsion started ability we maybe as lake at lake And so it to know reduce processing of being over I them. advances emulsion an us massively those he brought give treating associated facilities, to to these Greenfield

what we this return at is X.X that with that good in one you have asset guess, And rate Brownfield of oil heavy even we a has base terms that for you, of assets pretty And things And we of have $XX company. Jon. been is I capital, put bottlenecking, the one WTI a some that maybe high return. capital deep have the have above assets those organic our really that short the I returns are cycle, our of remind or don’t and as generate well that of are would kinds and we we Foster opportunities a range. we reminds require of $X.XX more secondly, And and are deep core that of then this those return just with company you seen $XX that have around opportunities. the opportunities good couple it cost a Greg that of just Christina in us. we of available in in short morning, of in we principles cost billion to things have inner of quarter assets of real good capital run and well Yes, particularly own have to type, cycle capital backlog ground sustaining kind are our basin lot really at that is we this some capital that to built as to But those have those the working identify of still looking investment gas. is that Any a Creek again investment inherited into we in low the think

talked we expect with from doing kind I we across largely forward lots capital - what turn is some before, we forward. on capital pretty think So going based increases and about are say a or on of shouldn’t we a paradigm. sustaining a I on that have which our going have have would left-hand opportunities of that marginal what on asset clear But, you budget the been

that. then, for set, Thanks terrific. Okay, around in you clarifying And million. have non-core on just indicated assets the know you the I release, done $XXX

sharp bid-ask perspective, is the around about the escalation would the price underway You harder What got fire. of a any lots from actually in or is whether color processes it but be assets curious irons great. making have so then non-core is I’m

mean, my higher us non-core for assets. as of these And to our in some commensurately trend No, in at I with program. would kind I prices are actually you is of divestiture we helped state competitive terms is think has sort quite been of I’m tension of commodity some And value at time. it that happy I the observation those when commodity general creating us and rises think rise, with quite our it asset - expectation prices that processes, as I non-core are for say

very Thanks, much, Thanks Alex. Okay. Jon.

Yes. Greg. Thanks

Menno our question take TD Hulshof will We from Securities. from next

of everyone. morning, year. are sheet net start a and I on the rough see good debt towards question like, Greg, getting I of you the numbers and Thanks balance to middle will $X with next billion

the you question and beyond for rating activity? how a are against is generally, is, that buyback that BBB can what to my sheet IG balance the $X is the more end that we and to game balancing So reset assume plan triple million a

are kind billion we doing is I to of terms a target it. we work where our now, that. lot in on think a Right professed in to, Well, of of want get ultimately

your think point a would at prices. market take you taking if are prevailing you model, Menno, As a I look you look make at a

is pitchers. see asset can us best and giving You credence sometime that hitting year, next mid to without that the any

that, opportunity perspective, in is fortress very short to order. of company my sheet have one four incredibly an And think pristine part I balance this that calls learned thing I our balance a and So think it, there running business Jon as hit the my we is the important sheet from strategy. in very, target the is, about years

we moments think are cry pretty if a at in me won’t any shape, I where pretty, we but eight below tears at time that good of see number. are

probably our as Investor more give that, December. be on in into Day to to guidance we will a able head Jeff? little We Anything add

No.

hit note Alex I think be think the I we hold to eight the shareholder and billion we is, returns it a a liquidity, debt, the sub between have our he And is we the will and but feel the mid from in BBB through and think are is we de-leveraging. sweet And see to point eight always spot. that and we rebalance in there conscious between portfolio. long-term, maturities eight. quarter, down of And very de-risking to of X.X billion. But then you the just that net And did more go as XX articulated balanced I cycle. want ceiling, balancing Alex’s will really as

it bond near here term by de-risk on well. look And really years really we in portfolio and the term if took our to maturities de-risk as and at balance So, that. three opportunity QX about really that out extend you

that. for Thanks Terrific.

rethinking a believe within any for your were we much on vehicle. second is have my non-operated last wording how you think JVs I held priority your so, And call. was, that that some Do the about Jon, updated on I within your have process? refinery right talked of portfolio and Jon. I is they the whether of And question, thoughts think

challenging are thinking we Menno think that. always on I our

you and thinking have de-leveraging think are is, We how completed. quarters our about and whether right Downstream we dispositions assets. what getting on knitting, are ventures talked I would pretty during hold focused joint we and non-operated and tell synergy always, our are And have to the refining our the we capture been about progressing, vehicles I

around say, costs the and it about. of think priorities to the But, continue exit in So, managing we both would where short-term, this want is our we balance are those sheet ensuring counts. we I pretty something be year clear to on that,

lot a Jon. Thanks

take our And Neil we Goldman from question next Sachs. will with Mehta

This taking Hi. the good is Good Neil. Carly on for the quarter. for Thanks congrats questions, on morning. and

and going XXXX? about The Can into just to there. great first returns thinking around as how the buyback announced little forward move see capital one we was incremental bit the talk just of pace the a you about you buyback, are the

should will Sure. recall to satisfactory. a always what billion imminent, everybody can are I Hopefully the sure back billion we I be shares saying debt always is think will a of People I’m and will hit reach say, net sure do. to till exercise, that we we buy not exactly say, commitment that But fulfilled I endeavor I XX help as not I’m think that I are our not have point you our should answer $XX that. can will little target. take XXXX understand. feel And completely I in bit. going not do in we the that, market. we been that, at that we

we be able take is It XXXX. on will a end a pretty commitment, to it the pretty end be going share the And announced active of is our obviously buyback intention give to other and you pretty so XXXX, is and we very, more to and and that an it intention puts think to it complete but share I’m there conditions, by to a takes about are to I that, don’t of beyond very is by you We do it we number. it. buyback. the can have expect going beyond while is granularity it, it if We announced much than market wouldn’t serious that have that large weren’t execute big

was helpful. just is That you. of And the Great. follow-up assets. around then Thank kind the

that those of practices on, lot wanted get latest to to a assets the and are if Husky your of of Lloyd since Cenovus the progress any other legacy guys You sense assets. there operations, applying identified made know, opportunities some you at you just have drive have to optimization best like

portfolio. This the part is Yes, Norrie are pleased. this upstream very we Ramsay here. of I run

have at our just to we opportunities. We the lots of are see the Creek Christina moment. been We processes We Lloyd. see scratching and and Lake applying Foster over actually surface lots

to Lloyd able firstly, them been is apply at the have that been We priority.

We to have portfolios huge into surveillance spending next have been spent opportunities, going been those spend And other program apply and basically the capital and capital there the over for of that we year. been a have the the has we we advantage in as good, leverage really processes plan same them to which some Sunrise other rate, we forward. been magnitude and across Tucker, this revolting in portfolio see of And our reducing wells. applying we FCCL go year, intend to see

is add It will I Yes. that Jon. too. onto just

we will also will in we have acquired the we able sort of upgrade see with where thing this still upstream that think we opportunities Lloydminster integration In have I that that, have we there we where was acquired. we we think think even of assets. the downstream reasons like And at superior in that integration is midst that think applied merger is our the the and I an are opportunities a again overall rebuilding here remember, of the a which the And refinery, to Canada. assets rich Asphalt that we drilling an company. then have benefit but hinted work Western we business, the Ancil in lot acid then beyond the eat been the of in the refinery. produce small the conventional that opportunities have to heavy or eat other of that we it I molecules really and liked And oil we one well techniques to the

metrics think opportunity and but there opportunities between integration portfolio we downstream longer the also we upstream acquired. the think across upstream, the operating the improve term, there we is is have that the in to So

make And energy both are on bashful I to oil Alberta’s conventional upstream wells Norris’ this, all regulator it team Alex. think top I and too just looking is that Drew’s one And was Jon And and similar. wells. and other a operating the that techniques the the saw very, would Cenovus comment. that Norrie team in Maybe very but and XX that is I province to are day testament strategies website, Yes. bring the to on our in probably the say

That I appreciate great. the is color.

Thanks.

take will Phil Gresh from from we next And question JPMorgan. our

Hi, around good today you Yes. plan could allocation. you have did Thanks for with thoughts morning. John, around the dividend updates follow-up all one moving or the think any about for longer-term are the flow you just of of the to forward. framework focused allocation, percentage I is like something respect a right how breakeven dividend piece a capital it as the that, cash perhaps whether percentage capital a of on or on a share basis?

meeting, my in what at board thoughts long thinks we decision around this isn’t isolation. lots this say This would still you regularly. But pretty what is discussion about and Well, can my the views. give remember board of had a I I the

out a free it cash around dividend view and needs sustainable is paid $XX. at flow be Our to the that

that we these value need of and to Company commodity cycle as be we room is say to the time, lots farther. Similarly, when mid shares that of returns looked would to that also that of this I isn’t this this a in free at wanted the million generating returns. the prices under are view of discussion pricing. much grow kinds kinds XXX implement asset valuations to on net more still shareholder going a this definitive a us there relative have increasing million this point buying in its the What shareholder We dividend even flow isn’t that, shareholder to recognize was these And felt of back quarter we scenario, month. cash So of of value we to in has share XXX to reflecting the the price would happen share companies dividend. buybacks when

be dependent to about how I on talked price as So, of of the sort these equity returns about in well shareholder future. movements going think really that our and discussions framework that we as are

will This So, kind return be but are this we I maximize to shareholders. how think think today. we is this for is on can where of future room we discussion plenty point of the the in this, time and the

That of sense. makes a lot it. Got

terms same little things superior look of In about? of maybe inflation other with you do stick you can bit as we CapEx, capital of at think a the thinking pressures growth framework any XXXX, with be and or or sustaining you should kind that

really number have the clear XXX,XXX condition, to as continues in And and well that sort think production you across to run base hold keep that Yes, a we of this the billion that foreseeable downstream around be safe stable XXX,XXX barrels a Phil and that asset sustain good as is the can rate. I for day, been future. to X.X in

We last covered have the catch-up we that is we over it to there finish that where finish the incremental that think on to we will insurance under-invested spend we to in of we that the catch to to will But XXX some I XXX XXXX from some in again, be million but proceeds. have off that had that is mentioned few as will than upstream upstream. have still going believe with more have not turn be most project. been, some to capital as up underspending you superior, left-hand be we also been mentioned, we million something to pretty have and And are a have years, so in there and before, clear there do, is capital

surprised. should Xth think nobody will full when this do in December be you I So, release we picture. the year, But budget, from of a December,

be will very made we through of talked have have about what the with about We this we we year, consistent since and acquisition Husky. talked what

Got to kind for related piece. need of is next has be spend about But, year the spent? proceeds, just has been there it. be think spent is And then way additional catch-up will relative that to a far, on collected superior the the about what of, any and collections there has versus obviously, what cadence a so thinking we what been to been already that there

is brought in QX. I some Jeff here. There million past you in in expect about will just It color. exceed I catch-up. to Yes. this would some give We us $XXX quarter. be that will

we readable insurance so, will part a at see catch spend, the I year that here and as there some of it, where is kind here, are will up into And get next lagging we point be just of with you But the early think, that at then are a this next and XXX on And business said, the I then will we and to catch-up exceed in probably to-date. as past about I QX and PD quarter. the interruption year. some we recoveries million million hundred into have we both were few expect in providers.

Great. for Thank you that.

We will question from Dennis next with our Fong Markets. CIBC World go to

appreciate my capital for provided as well that side thanks I over And sheet. morning. really is taking as I allocation, more. around questions. the good to switch balance operational Hi, the the little it have helpful, you bit color to would If a like

Asia. and crunch an seeing energy obviously are Europe bit of within a little We

I and a of small in are of, terms a a region, quite in whole, know But, you could as context. the give assets. free generates cash wondering obviously if terms relative of on Just incremental how Indonesian that seeing demand, strong Asia-Pac asset there in flow. you given that pricing just lot gas comment you garner had guys you

QX to as guys So, well. upcoming respect and QX just are curious with as to you what seeing

assets, just contracts off price Indonesia, and by China that the cues. fixed have whether it remind or with Asia, to it of when But be minimum may it and John. Yes. is all is Dennis, sell governed chime maximum Norrie DC gas that, well. in our is we as on Asia you what is I in this this gas, want South Coast all would

we volume PRC really from and set from maximizing the the the has the and by the contract, what the been sea. is price surprised, and this have nobody, takes the that, I daily guess, South is So, China assets seeing has been

takes, We Indonesia. off have had rate-able of

kind that nine-months about, that story of free of see we year. of that So think the amount and good has talked Alex those very the through has through generated, news been, and have the past where for the assets cash going flow I a end us

is, the sales of on are our things we there. working gas increasing One

that, to we for on that take see us not increase into our of and nothing to China opportunities gas looking amount So some sales. imminent when made the progress there. increase for we can our are have are those things partners gas is But,

a The that, of day take selling will remind between small a somewhere in little million projects to are expansion and of in cash those generate day at X,XXX is up you flow I other number underway that we end free will thing XX,XXX XXXX, barrels would kind today have XXX although a about the XX,XXX barrels to Indonesia, that year. about we three production bit relatively a barrels a of XX,XXX to

not all by So it contract governed isn’t on off volatile is is profitable business. gas pricing, on in is the takes. a really China. volatile South those and It it very It

just we seeing Brent would is do well. and gas as prices very, liquid our liftings high very content, liquid strong are our add Dennis, actually has I plus as rich we

kind and do see liquids, we maximizing we the can of rest moment. So And year. the that of going as across we gas the are whole portfolio, the contractually as forward at much for

that I question side. also shifting second to further here color. then appreciate my the of more Great. is ESG And over

well carbon Lloyd a participating just Creek. are region, quick as You was outlined have couple curious within the I Foster at you in begin further that it assaulted on speed of projects projects you high work to as as a on initial plant. takeaways looking kind key were and update pilots highlights that any items - Lloydminster or the from the as we that at or both various side, call those well for of capture a will

Dennis. that, to Happy do Sure.

Rhona on to I is and our might time good and but Chief here DelFrari don’t her a Rhona, get this Officer, introduce you what them. Rhona’s a do call, our why I is probably Sustainability think

in for Dennis, Hi, that. interest your thanks

we So then zero. get right net of December. This joined five in other to oil near to with that initiative part ConocoPhillips are our achieve peers. to now so we longer net ambition our zero our examples the and we that oil And some in plan term, sands term of pans Canada to work targets day to is long come with we along both along be will today of with expect up revised also of with our just pathways to part announced investor them how ESG connected

projects those at some particular mentioning you are different that so stages. And are in

So are that emissions some already we looking at we way. reduce are the conventional that to well are under stage, at project feasibility doing as area and reduce the such methane then are our is in there to what

are development whether that well many something our closely technology now different pathways there decide looking were for broader storage but the we pursue. are really name can achieve right that working pursue, ideas, are operations such as them that the how And projects our groups, for as capture where is different we with oil are many at the at we as there A suggests targets. to so assets, that we bigger are going needing larger initiative to look of of with that to to across sands organization. see going and group solutions as the lot these we the and are carbon But

industry, with get grants commitments ground. they with governments things incentives, on industry that others We need work are strict them their tax lot federal have Paris to encourage working because achieve, to early need a these talked collaboration are how with They the about closely technologies as government, to of stage industry really they with of to like really and with and have with right some made really the goals. off clean now, provincial the tech

when that Day. and on talked you particular So to more in provide those you bit about color we get a mentioned projects some Investor of we them will

the it, for great. taking like thank you whole add sounds appreciate Okay, to it price I for details. my questions.

Dennis. Thanks

Pickering, Murphy from Tudor, question next our take will Matt with Holt. we And

good Hi, thanks, morning. and

comment was Creek. at that should sort we side, question already falling Seg if record lower a on, rate I in is, new think to curve? these plateau standard rates. characterize the them thinking that D think the of It is in forward kind rates or as pads anticipate wondering be on we would for should how on you the primarily just of could on path Just I appeared guess that running the you Foster about the came operations I to plateau

here. Yes, it is a Norrie

day. we and very strong steadily pay, a WXX the are is our high Strong There pleased mean, day, of has for very being one at one clean last Very pay, production, deep about of dune plant been XX,XXX three from the in benefiting at we the barrels are very, XX-days a a getting on. barrels the We for brought sort west are just our another - and pods moment. WXX availability ops scale. I production pods XX,XXX very arm. very

would with it this like of you about that would three on way, year If meant we a redevelopment drills have to think pods and it opportunities. the and bring

Day, will forward So, remainder an we the into give to strong the like the then, basically path see of for production the RINs update of kind next Investor of sustaining year then. a you we at year. And

following of us great. remind pricing up for at X we the forward mechanism the should wondering Okay, the to how there. could [indiscernible] you I component XX about legacy maybe actually not I going you sales. follow-up are And set if of think was just think the

get was a more, might in gas that there I obviously but lower, a today. bit think different back some going in it of are global market we Europe concern

we next Yes. contract just overlifting at the And back XXX%. - mechanism, mains are no re it are above mid goes we we have a And to year.

are rates oil market actual China. the So, in the on prices gas obviously based and

production actually actually sustain at potential we models within level John year. production next this So, working as gas are a at And goes lifting we are XXX% mentioned, those lifting looking going commercial still high basically XX% help to alternatives But confines. forward. from to

is Yes, Matt, John. it

for are that. making don’t call and kind you the IR three producing you give as areas through in why looking If you as walk on actually mechanisms the well of Indonesia,

the X.X to entitled takes kind a in of about and on to. XX.X through at and are it that few The over mentioned, NIM they difference a to blended the to as relative relative quarter. blended in the off-take working was there. have it as walk corner look in Norrie different of got price to you layers you as But China But the, as interests XX.X. basis, sliding though If you IR relates of scale normal because Sienna lifting there we the then $XX them the kind for remember pricing And is DCQ. the points is is in that can well have in

great. team. Okay, Thanks

question go from will Manav to Suisse. our next We from Gupta Credit

be own guys, be can directly. can I’m the that Conoco worked wondering if congrats reinstating has, in kind just buyback. which agreement out on there they any to treated Hey, block of where you the are a shares

don’t something mean, something possible on out the have you direction? I is be worked they buy come then could the them. or market this and So to to

is here. it Yes. Manav, Jeff

flexibility I the process, NCIB we obviously execution. is is that think and more execution view kind provides of purchases, us this through in that I open-market think

I think they in Conoco been winding looking readable how fairly public has their down have disclosures the position. at been

execution bounce provide really support market. and direct the and the flexibility I now we through we think to the a we the open we the best is this But, can market the versus purchase. us to that NCIB, in share have have block flexibility I will provide price think mechanism do feel feel in and out

that offset sort there event coming block Alex. of, an trades, of on pressure I the you is that Conoco the Conoco more of down. of an anyone through we that, are that. of look mean, and stock the if say to that we pretty even in the confident the NCIB sell any are one that opportunity. can size if just of would there it believe at Manav, that we trying isn’t is is we NCIB, the do opportunity are we with than that if always to the I ratable to are announced, missed see, scale those And always kind the contemplating, we big But talking we

is That perfect.

provide, sequestration, understand from be mentioned And the of the some of consortium. as the capture As carbon on what work? Cenovus quickly trying and I’m kind government direction, of set and will the you support it Any on the looking carbon they my in whether price, or CapEx, partnership from make will of and they collaboration this and of kind the terms of just the a thing perspective that credits, have stuff. you take they the kind and be help to a things could idea what to whether some have into you consortium of to of government would follow-up, anything could is government give more could the between chip

or I’m may take would investing cut Yes. have Manav to that at process a with announced I seen Federal happy four and you But mean, three Rhona probably about Government ago, in. jump months the is quite a a some respect and going been in a tax consultant for there - people time. a is up credit carbon is to setting process sequestration, capture consultation process and on for that that

with and governments it technology. in can can of tax kind new you I U.S. in think ways there governments for make entrance this it And is to seen in that have that that, see we you that governments. using easier upheld Norway, be collaborate many, policy many

consultation I on think So, our but going is that Rona. most government. over I to with pretty obvious the turn collaboration step I think maybe is to the first it that me will And well,

is sense credit never times, again, been already is is is but to talking part makes layers tax of together. these of the all we has goal is working expect done been goal that with for be them that XXXX works. talks that government have. specific. scale be is, that a industry’s able excellent this. or get by on tax to announced it goal to zero, CCUS been about, it to are works. CCUS It how economics talking goal know, again, only very what it and it And will proceed, shared that to Canada’s in we having and closely And credit our CCUS so know the are are Cenovus’ you many and before. that we We CCUS And to are net makes investment because a get about the we zero proven project No to it large at is we we Yes. is net It particular it

are when industry talking all the some but of other departmental. industry, that technologies forward for any to to any time really government that you are there Canadians, the that stages, the so these government are in something that, And early also that that. multi you that part have that with about things And in encourage is when progress. de-risk risks going you of steps with benefit is and And associated can are the are to we is

natural programs is development Canada some has to bank the in opportunities the and And opportunities. infrastructure technology change department even through certain so resources Canadian environment climate department, there encourage

departments, to and government we that initiatives to and one are to this them, with not are really we along the clean talk when industry department, to they us multiple or so talking just And working departments we to with can ministry are to we talking of types the are tech these working oil and gas provide say, support, grow in you sector. Canada,

have and the exported tech clean that of low So around gas low some feeding both sector into that the can sector, oil carbon, sector oil that then world. cost is we a also be thriving and gas but thriving that and technologies these is a

opportunities acknowledges So as the that industry and that well. of does government our lots

taking my questions. you Thank for

Manav. Thanks

next to question from our Barclays. go Harry We with Mateer will

of I for clear in of maturity agencies and but that vary in made can more debt. debt a gross guess very refinancing approach, be tends thinking to important little shorter de-risking as calendar, generally of term Hi, viewed and morning. terms shrinking that good in doing pushing debt, terms on bit the the but the out follow-up it, of rationale cost One a you advance item do pool paid rating net balance the the a down transaction cheaply through available bit be than sheet,

to we gross Mitchell next net how to will reduction converting the debt think about debt or so? you guys you want into year if be, in should So get reduction

opportunities opportunity on I end, more we see I bit, than again, little front us bit think is the is market hold an saw market, market of that floor million it and dependent. over we opportunities cost, different little are next the dollars. at will debt. And think more as we of attack at judicious think, on as think the debt the and here. presents care and that. we movements moves mean, you it gross interest the And look I think continue to think, we and in will focus time. the was here market to obviously and I if I a we effectively approach. Yes, I will will the over balanced I color. think I will over balancing rates, There end, I on probably of effective mean, think those to a look But de-risk a you I billion de-risk the say market but could refinance seeing have And we will but think gross cash to we continue upward XX to our front itself save Jeff I front is use annually to be the QX we opportunities, be be take an take end, interest in I

to rating then maturities, have expect I So have us obviously the de-leveraging agencies and the worked gross the well. liquidity and and very the all balance as that of we with relationships think through good both

a Okay. then And switching bit. gears Thanks for that.

what that widening not but wondering event. be we after and the to Just started the would few what driving weeks line that know any have if into necessarily you our have diff narrowed I it color WCS it also past is is expected on recent the might fill, in

perspective you So just have curious there.

is Hey, Harry, here. It Keith

stories. is think a I it two bit of

some Gulf a to the operating records. kind right seeing a the barrels. process hitting heavy to out in at choose on happening pushing running we run are to prices U.S. the many it refiners some kind here not are Also, are and are try are When kind is of widening reduce bit their are back that up Cenovus, Coast some natural obviously We Alberta, some costs gas production that with turnarounds think increased a There leaner of of inventories you high and and globally of seeing heavy are little causing I little Gulf we as in barrel wider. Coast. down refinery

into kind blend little that So, we of season. winter pressure putting the are is a

So up. condensate usage is

rail Coast. around it And the with differential so, and the aggressive And line down of you but taking baseline what’s couple kind and a going are of $XX, of kind $XX, of running on at rates. a is of kind normalize minimum lot we Gulf three that that additional coming on because seeing in

Great that helpful. you. is Thank

the as time. call there questions I Instructions] Pourbaix, at [Operator are you or this closing any turn will for further back additional remarks. Mr. no to

in the with will very back and Company. much, interest for let and Thanks to thanks that we And everyone Take care. sign everybody off your continued their get day.

your This for Thank concludes you participation. today’s call.

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