Cenovus Energy (CVE) 27 Apr 222022 Q1 Earnings call transcript

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

As a reminder, today’s call is being recorded. [Operator Instructions] Please be advised that this conference call may not be recorded or rebroadcast without the express consent of Cenovus Energy. I would now like to turn the conference call over to Ms. Investor President, Vice Wendt, Relations. Sherry Ms. Please go ahead, Wendt.

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

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

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

I and safety. to morning everyone. health priority, want which Sherry Thanks, top start with and as always, good our is

on tier top continue journey. safety We our

month, safely own everyone end incidents our to getting unrelenting has Over jobs. the they our such ice, thankfully, reinforce in the of were with their focus home our need as be performance past spectrum short expectations. at fallen of the safety our minor the Well, from relatively slips on

month. our And the have combined it’s the time great to I I capacity without our corporate have in Western company to major Turning earlier office the a head back am as to to welcomed again. This that first here say handling we Canadian been we’ve team to pleased person is full reopened years restrictions. our X of this report in COVID-XX, staff that offices

know that has continue monitor since And we and that COVID-XX face-to-face we obviously this situations. a first hasn’t opportunity to some with For being been transaction. Husky said, disappeared, teams, the closely to collaborate the

reinforces this to shareholder morning the announcement I’m focused our Now, increasing on importance company came of on about that of strength the regarding leadership long-term sheet the the since and I for returns returns, sheet alignment company, foundation is returns. increasing for our shareholders over shareholder balance framework our excited team has balance positioning been with new this our increasing shareholder time. strong a

Board to variable has approved They common Our quarter our tripling for addition dividend. shares, also approved the dividends share our have in continuing buyback on potential of introduction base second the program. dividend effective the

implemented also and price. have at We a target of sheet returns and remainder certainty about net will $X around net provides adjusted flow we of Xx billion shareholders WTI Between with a $X flow debt, to billion, would shareholder excess ratio a of sheet. $X XX% represents balance This more funds floor improving. when incremental they shareholder debt free returns which the the receive funds rapidly leverage $XX balance billion towards

that target our the extent be will make will variable is that funds execute flow. than If preference the value our less XX% up around excess WTI. use for below at share will of XXX% $XX continue $X billion variable buybacks, value dividends will the opportunistically the price of at debt of buybacks share mechanism funds to floor, to shareholders reported to for opportunistic quarter’s the preferred to make deliver which to flow, quarter dividends the free difference. is excess difference. will buybacks share When remains up net be we company with free in Again, Our intrinsic the

remains the at that based bottom at including and same from we The in of continue out us. to X-year the see returns in for you’ve to you December continue also business business laid the our come we plan test in cycle, Investor investments expect will $XX capital You a price. on place, will discipline to Day our WTI

debt So we of flow cash let’s $X.X operating adjusted $X.X which quarter, led results. of performance, billion and proceeds company. a the funds activities combined million best to spending flow in funds was $X.X March the enabled XX. results at turn flow our billion This free us in Capital to generated asset overall a to far billion In financial from achieved first billion, first financial financial QX. from quarter, to our with as over sales reduce of $XXX combined net so $X.X

a oil and by impacted the to was product pricing. in quarter, capital reduction primarily debt due net refined build of working crude Our higher

clearly exceptionally to day, once of again turning demonstrating performing operations upstream assets day per this They think not barrels been and the XXX,XXX production in day total programs. to quarter. delivering production XXX,XXX well, Oil have quarter. of redevelopment the speaks our upstream barrels of team. in Sands capabilities reservoir, XXX,XXX top-tier also around strength was operations And So these averaged our continuously per assets. the redrill innovating around improving Lake and the dependability strength BOE ongoing including Christina nearly in our at reflects, but of the the are quarter, only Production and per I first with the

peak Lake, SAGD produce barrels quarter of Foster. in day a per expected, decline XX,XXX second an barrels so very which barrels per XX,XXX was we commenced to another from production the we’ve of industry, recently have than decline first recently for in wells a turnaround best At seeing we nearly The from redrill some barrels as as West day. drilled commenced should quarter at rates the impact into also pads that we quarter. to brought Lloydminster day arm was moment you a around by maintain reliably, this service. expect And for to XXX,XXX program, production modest of Meanwhile, delivering continue around average are that now XXX,XXX ahead production more Christina day. per at prolific expected. and Looking planned These the the expect we Thermals the FCCL, per are

gas and the of application and the barrels operating day. redrill team XXX,XXX With to injection a increased back has Cenovus’ strategies program, production with over per brought now here,

In the North Lloyd contribute remains at addition, the of day will this year. a end by on track of and production XX,XXX another project Spruce Lake barrels

has this at in You our closer the to have at already was the Cenovus. seen the barrels how XX,XXX barrels production was we’re Cenovus as per be day production Day to we operating our assets at from implementing rollout. has reached level XX,XXX to told additional taking quarter our Cenovus, capacity benefits over has ended, XX,XXX in a quarter as strategy time. significantly we to facility performance of per a we strategies. a day net able of Sunrise over look Production we nameplate this and The Sunrise. are going day can confident by And improve you barrels Since Lloydminster see at December, net much year, the Investor achieve operating operating

oil generated quarter. margin Our very netback of an were quarter, realized segment for Overall, in strong in per Oil billion supporting this in over Sands the operating average the barrel. $X.X first sands prices $XX oil sands

And of to winter continue program to operating additional take don’t first with to initial the results we still prices. better QX of margin $XXX quarter, more that been provide our strong million coming in than turn why generating anticipated. from production us results, benefited XXX,XXX in Operations So business conventional? BOE an production, higher allowing We drilling into AECO advantage of early, while have day. per than

more margin delivered day production of operations than $XXX operating and an of BOE XX,XXX the quarter. per offshore million in Our

having discussions in [indiscernible]. We help offset continue increase there strong very in from on with sales our constructive reduction China, forecast our some natural the gas gas partners we’re see contracted to gas opportunities and of to demand to

to in MBH around also start production X XXXX to to Indonesia is Indonesia this commenced fields new expected BOE MDA of year. producing the the per with current later progress increase in our XX,XXX rates and by XX,XXX month, dry growth to day BOE We from M around development This fields. expected year-end per planned MDA field. The are day. is the of continue gas and drilling The first projects we wells

Atlantic and to Terranova about netbacks add production QX XX,XXX floating in unit In expected of reflecting production to higher end storage per Spain $XX to can and per is will commodity return of prices. operation barrel, per and begin day expect year-end. production dock delivered by the near the barrels offloading business the day vessel than some ramp-up more overall You in The in remains region, of This dry XXXX. year. of XX,XXX the of barrels

make expect the to decision with coming weeks. a project partners the We Rose our West White on in also

this derisk past We have XX taken substantially time months the the over project. to

net value to up to Throughput million from increased forward, to As with downtime improved in estimate benefit peak segment, a $XXX if utility production price XX% at and margin far like Cenovus QX, late by as our quarter the right extended quarter any and with first-out had Rose complete. to relative environment White In for much quarter accounting operating shareholders capture decommissioning. around net decision results would move first-in maintenance unplanned the XX,XXX reflect must the to of in refineries. by meaningful the reflects joint West was planned per to proceed in of impacted Refinery venture is during barrels U.S. rising the decision the XX% in in March. some refineries. This margin. the XXXX it Manufacturing at utilization our environment Cenovus’ development, generated we U.S. is Shifting day in stronger around to – Lima a XXXXs. as well made price ramp by now the our also represent a our the Downstream, And refinery a we increased as

should of in Looking ahead, in began some to expenses QX in quarter, higher will operating and The once the refinery saw of In in The million. for its and complex refinery Canadian unit operating down turnaround large years of at first Toledo our quarter, given second a we segment, every the utilization well. utilization see refinery XX% an $XXX the margin X Lloydminster costs be expect rates. ran mid-April. you manufacturing the turnaround part with lower

throughput However, outage at by impacted upgrader. unplanned was the an

in prepared we reduced maintenance as quarter run April. began rates also later in the planned We that

corporate guidance turning So to our now updates. XXXX

the the to revised reflect guidance price our barrel We AECO costs per current prices, better our business. for our and cash to business have result. We’ve assumptions commodity oil OpEx drive increased across royalties ranges as a ranges fuel higher our We’ve oil taxes reflect environment. sands sands updated also which

On rebuild as capital. for capital has rebuild quarter That costs been the on labor Superior, about related the and chain COVID-XX offset related said, the side, due million. to CapEx insurance the from come to refinery well total year. inflationary Superior supply as to stemming largely To-date, $XXX estimated $X.X revised increased expect proceeds impacts, and Superior insurance to proceeds million this impacts will overall we about still we in received second in billion $XXX another of around by

barrels per take day, to rebuild the oil on about end just as by In heavy forward terms the day. to of on Enbridge schedule am a of the much our XX,XXX will going that superior value to the we update an remain nameplate sustainability. very be to restart of first the look stop itself, addition capacity mainline. on With I an chain moment And talk to a important we year.

storage and the for new responsibly applaud importance oil. carbon role to supplier country the be in the achieve We Canada goals our and for credit the likely vital government will of step play investment help This help industry capture climate this of is change, supporting collaboratively developing Canada fight projects. earlier federal a energy with can working technologies month, you produced country’s security governments saw recognizing announced federal As and climate the both positive its the tax also world’s preferred our to utilization in government ensure but economy. an

technologies. continue have well will tax other to to reduction as determine advance available as will support We to discussions credit what be investment implemented government be with how the the GHG decisions will X X Scope absolute to details and target as XXXX our capital move ambition. we reduce our inform net-zero our help XX% by forward Those allocation our XXXX emissions and

the to substantially have Commodity rest a a seeing role and the our and to So am I helping economy, I security. recovered years, Cenovus. excited important growing forward look about the while contribution of of year beyond and really the in past diversify the in am prices future of the X global play will carbon energy I economic jobs, world industry acknowledgment lower protecting as

the of momentum stronger in up second year. the even for We Cenovus’ for are business setting half

assets the maintenance risk first wound largely The planned WTI will business have after management program down. full Our reach operations year. across of the will price completing the important half in

the expect built the expires executed focus buyback margins and progress with downstream on free May ConocoPhillips We of market this current balance of rapid payment cracks to with the to we for place. also as the billion and continue growth And a to business sheet generation, positioning the funds put we to flow higher base see laid program. contingent XX% support improved balance on our we’ve on XX. We’ve share while represents path sheet. We’ve years made dividend a clear to program we’ve shareholders That how $X returned in since above the today, over returns profile will buyback we’ve out for growing shareholder come. that returns

anyone’s take to with we’re So happy that, questions.

Please Capital CIBC Fong, Dennis Instructions] go ahead. [Operator Markets.

my questions. for Hi, good taking Thanks morning.

actually buyback about thus about comments, complete far. in related first the share program alluded you The XX% to your is one to being

look given and return around and stock to the potentially complete is buying the or commodity Does back timing renewal where the decisions a NCIB economics dividends? can variable scenario how prescribed you’re shift frame? that there thinking returning if the potential be, happens the stock the we at, just around you prior other mechanisms in what be Or is November about strength XX% to in situation favorable? automatically back Just still return the of of buying to time capital should you

about buyback end in at attractive is find this it And we share want I’ll mean we’ve still I returning or it’s out that shareholders. mechanism very or we’re and preferred said price in And thinking that I share we’re long said as a I Kam program for a mean is always to always value is to if as our us, I’ve mean we level. that start Jeff maybe opportunistic. for the ranges But John. and jump may

it. else going we’re think don’t comments I very if to want hard a know I take to anyone at any add? look they’d continuing has

NCIB some thanks it’s Dennis, as always the even would add, option question. forward. NCIB think to about Yes, as an and will you for it renewing have the looking we a strategy us us available SIB, we just going or Whether at shares. limitation I the about shouldn’t the think buying to

intrinsic buy that’s is we see real shares. we so there gating at $XX what the value And to And continue Alex at which item looking is If will is. point we the if to will our not, price the attractive, made, share shift variable dividend.

is that Great. rationalization here – by and second have a I I now. you question, that optimization know color. Great. I My large, the appreciate lot my follow-up, portfolio completed related you around that the right and just of assets portfolio. are of have guess, Fed the of you

White more and/or how projects but know Rose, considerably balance bought your we or that allocation is to better either sold? other West capital growth in CapEx given further should position, outlined assets a be the lines things? from incremental thinking Just be of about sheet how along I of you’ve of evaluate you perspective a more

Jon McKenzie. it’s Dennis,

think dispositions. I first, part of your the question latter just of just in addressing terms

things strategy the versus One we of on were is through are the to acquisition of assets look a post at Husky all we the comb or strategy not did assets assets of on that non-core. that did

end very of been pretty to clear, that we’ve we’re close the think getting I program.

still don’t we need think that retail on about congruent our as close being something But got completely to with isn’t the think portfolio I today this that we’ve assets. strategy.

returns of above pricing firm investment, cost we think and about think the a criteria, all $XX. and growth it’s the pretty generating or capital cycle rooted of at allocation about bottom have and we capital As in capital

think generate we our shareholders we needs that at dollar those for return invest every So do a to pricing.

got there religious going So we this on to are screen the later North, got we about year, Alex things. we how we environment allocate year, Lake And we’ve additional Terranova on still living whether or think station. some short-cycle that pricing that everything back today, there. Spruce of Indonesia in the the we’ve that within When projects very framework. in capital on be But are opportunities that kind of come mentioned or later do we’re growth coming and to some that are

it ask Perfect. let turn and will Appreciate Thanks. color. other that back I questions.

Thanks, Dennis.

Thank you.

Markets. next with from our Capital take will We question RBC Pardy Greg

and rundown. Thanks. Good morning great

So you provide some I can shares your value? intrinsic compelling north just that – wondering your I’m buyback continue NAV-based, bit. secondly, put if head presumably I would here. I’ll represent that, on your as want debt goes perspective extent maybe intrinsic stay And And try to with But value whether and to a in to that then little today mouth. down, maybe value is the that words

I method? So where, be we in the I be continue a mean could preferred we just just mean, to situation – shares

Yes.

largely that I important I the target is thing And of agree buybacks think, we the – Greg, as with comments at I do cycle. the would you that made. middle Kam really share think mentioned, the

our exact of at while metrics context view for that numbers our middle the So look the And won’t are cycle We probably in you NAV of other $XX we in share accurate. calculate a of where do I is do and kind important WTI business. it. other

As a which with that see would would continuing continue expect see grow, plan, we buy to shares. we but execute us all I mean, to back this things price opportunity depending I goes, to continue to where opportunities, on we on static, think to the remaining continue leave share would

Okay.

could at pricing side, the contracts, can maybe to just just sales you there look market in around extension is lead Thanks of for switching that. And any Okay. Liwan? one, provide commentary on then gas how just that just – operations

it’s Greg, Hi, Drew. Yes.

XXX, for sales. supplemental a actually negotiation with we’ve Liwan a yes, just contract finished So

still there. volume sales So we strong. contract are very increasing is Pricing the

of the best we probably some the it’s see, still have netbacks company. you As in

So least base here strong a pricing got are shifting lot negotiation of there. area that is completed quickly reserve that. to around very as in week last X, or that literally good We’ve just as demand gas. good at we for negotiation is the in There Having X-X. that

And And to number for add pricing we’ve as are the so to in X-X had – is similar our we at quite we quickly agreement to or now last and the pricing focus sales expect look well. in the a area supplemental shifting be similar reinstate strong, potentially least of years. at that again,

Okay.

with to sort of it can flat I Liwan So scenarios? of about can think told being ‘XX fair assume me, ‘XX, you – similar I into just is pricing what as kind at

We guidance as later go XXX finished provide Greg, will we we actually past. ‘XX year in Liwan to what but just this is incremental volume into the had contract we’ve the budget,

Good Thanks much. Okay. very enough.

Greg. Yes. Thanks,

you. Thank

We take will Gresh Phil question with our JPMorgan. from next

Hey, of first about just morning. Xx updated target. debt past, to the want billion about debt. or you’ve ask good the EBITDA $X I talked In

or the Now Xx terms then presume add? a clarify you’re I $X little just the talking different? on absolute to wanted is which that. have of just cash sense, of the more this equivalent, is target just but And billion, to of EBITDA a desire about flow Just $X debt I’d obviously cash thought I in lower would versus lower roughly that it or flow unpack debt. there a billion if something bit bit anything to debt, are make

our you would look at yes, at X% speaking, target, to That come think, XX, flow Kam. it’s the – to broadly when cash in Phil, range. I is say Maybe debt has what I Thanks, probably that it’s X.X% that down.

Xx. does to approximately equate So

thinking a we the as going the say, is lot framework the between shareholders, want were where of regrets spent I things this towards, refunds about balance trade-off X excess of from XXX% put together a take sheet perspective. we no the back to think to and time of we moving

be cash to, us continuing $X really get level I would we that come. opportunistic optionality, very that really shares, perspective billion think position to in we from it’s is of the So and a it to opportunities going there. the at look in buyback but commit allows good in our whether company we’re to the the Then back once come can opportunistic right terms could all what up giving flow put future really,

at the with $X think, billion. the I So we’re end comfortable of day,

ultimately having at $X view, level say, looked important a even leaving the it’s but was scenarios come I in, to at felt no we’d commodity billion from to given to think environment at from floor appropriate us, And price going we’re and a like if be it we would of putting also our certainty debt. the clear prices where all I down. point to that around commodity

you get there lot little ask makes M&A, It seems framework for just side, bit actually. to does That the allow on here. And then of pretty wanted like just I sense. can the a M&A more quickly, since a

your You’ve somewhat that considering opportunities talked Downstream what upstream to company structures. a on M&A? priority if about would JV are latest Curious the you thoughts consider for be near-term that’s potential up something at of and/or Just would clean the your point? you this

– I it’s Phil. mean I Alex,

opportunistic. I said is think say very M&A, I it respect would we’ve to with always

when value-focused to – our value we’re grow top to by value. nobody we’ve we I to said, comes we word very on the value, do is to going move where But from if have that to there date. to some we any salad shareholder But We’re is to should as shareholder And But the intend think continue focus also here, opportunities line. are expanding shareholder ultimately, continue have we prioritize to showed I shareholder margins. drive to that. it discipline away grow that looking expect

of that date. to to we’ve – side. we’re add discipline of Jon or the past, to be none at will We Downstream in some any the owning look on that. assets, comment is that lose our is have do and focuses going and we looked at two. to talked have and as operating continue we But a And the may should But shown want

sums that it I think well. No, up

Alex set operate None guess, framework discipline U.S. one our strategic that of direction I the own acquired But that I business, we’ve as forward. the think we’ve and and particularly, in within our over we is has that Downstream. been of has really of changed. be to strategic Husky, done mentioned, the to since have this goals clear financial

Great. Okay.

So probably upstream, I is looking that you’re at more my guess, Is if fair? things. downstream takeaway than

if we of Phil, of Yes. context, our we – North in. most American U.S. mean, I then the the at operate kind quite I Downstream. you the in what and stick mean upstream participate you And look within opposite

So it’s just of versus asset a really the one another. function way a base or preference

very Understood. Thank you much.

will from you. take Instructions] Thank Mehta [Operator Neil our next We question from Goldman Sachs.

Thank terrific XX you. congratulating the far very clear culminate And a the of Alex and can been by how Jonathan the business. for start fact, you, this has last capital business in gone. shows months you have return strategy with

I couple had So progress. you. congrats on the for of questions a

first looks like It being that’s around us The up year. to superior. levels capital bumped spending this just is

And Superior, about that, but just the any update relates that is And as any project we to offsetting getting forward you. contending that potentially do think then think higher it you there – So proceeds is that with? insurance that of of the there online? Thank confidence given some carries spend? how inflationary forces about industry that

Neil. Sure,

your first Superior. relates As to increase that question, to exclusively capital

talk maybe the I’ll about team. Keith on have We pressures the other Superior. in of can maybe we to business. doing are we’re cost some from we’re comments how some we – get first feel see starting seeing some And leadership But

thanks Neil, for Hey, the question.

on helps Alberta, molecules heavy mainline of to mix. our being does consume It is It nature Superior Just important comments, and it and stop mitigate us about system. heavy-light the us. first our oil, Alex’s in spread opening the talked in product strategic diversifies the he

with think talked total billion costs, So nothing another with pressures $XXX of of with come. seeing proceeds seeing, insurance received, $X.X it cost we’re $X.X strategy. to I about billion that changing is to we regards already capital the Even on million

though in. essentially these So even thing been by which I pressures, I offer proceeds, slippage. saying other think holds we’ve we’re seeing still would seeing cost And of up not the insurance we’re some schedule offset always is

full refinery up on and So rates QX in at start we’re to track XXXX. operate the still

still the of So schedule. looking on kind overall good

your first Yes, Drew question. in here. Neil, Maybe jump it’s on the I’ll of part

So good in done being our team represent kind sustaining longer-term where job we’ve what We’ve program-based of deployed. a I and items actually job the being They pressure that this thermal of would got have on all probably actually Norrie’s some have really lead long ground. business the seeing. really kind capital to area of chain most sands are supply got ahead done – we oil good say of well a of were the

We’re well whatnot. buying ahead tubular and on

look seeing season restate we And business, lot just So a little a over the are near-term kind here of our we end more now pressure I right is breakup of near But that of breakup drilling midyear. having the a completion frac conventional here. more before business – kind of our some activity of from our of We in would pressure. this probably what say insulated short-cycle we’re in now. started

multiyear to at historically, We haven’t what we a world, you business to half that. because rigs, short-cycle level a – conventional seeing service in where contract pressure look are do second particularly on capital in do ourselves we we a from a drilling like steel having the which, pushed rig haven’t do have commitments, want are we don’t

So we look are at a having that.

business. decisions some pressure here of over the part some quarter want we our to make we to next part of – that do have the in area on We are that what because seeing

dial and a models is you little would the is this time And think us more on Alex for it when service clarity your us getting this subsidies the can for closer clarity just project around line. pathways around to you love it. just with why have importantly is It we into trying think Thanks to But And perspective to until associated figure Drew. government the time like looks the also around line come it’s more important. difficult into we’re follow-up having some out our around project. spend,

am to happy I color of bit on give No, that, a Yes. little Neil.

really I had represented industry with announcing particularly, and step oil think quite and industry, government show really think Federal government. productive good a positive a the really collaborative the does, the the discussion is has by the that ITC sands and pathways I was

more are before are project, still transport we the pathways to down an we commitments announce the the think have fund with area a suspect, be also the cover help at industry to get around I going the kind detail Cold in same foundational for and to COX see be Lake the and are programs – the I carbon sequestration, carbon going think XXXX reduction that is on costs of other the really to time, which capture industry around you timeframe. for – the place But to of are lot – associated I made that. have in we ITC, FID we the will

So, think to you are have don’t much longer. to very I going wait

We granular going our lot that’s levels getting are a initiatives, the so, government. other or those lot to projects. around reduction, of take scale various year those going next already on But methane the a detail with associated plan included. costs And think budgeting more I larger and you things to over with of are these us discussions through are X-year already in the see,

It sense. again. Thanks makes Yes.

worries. No

Thank you.

Suisse. take with Gupta our will We Manav next Credit question from

on the on increase question here you, to dividend to threefold you guys. in is Thank Wanted My dividends. congratulate hike.

$X is you have guys you in over even CapEx can past, of WTI, and I that make in cash, X.X. indicated $XX at your the think billion kind

increase great. is threefold a So,

$X.X Just billion. dividend could burden wondering, be the for

even competitive. gone have the fourfold make more you a increase, could So, with yield

increase, understand making trying threefold the if to of not of it to very understand about that? thought fourfold trying the you could talk Again, so the process. but thought process increase, And just appreciative a

Kam. it’s Manav, Hey

So, a things of I would couple say.

I of off, strategy. shareholder would is I return think component first think I say one dividend base our the

all really components three to think value about as you So, what we shareholders. our I about should proposition think is think

you when at isolation, the yes, base it. tripled in dividend think I look we

assets is make in We sort there capacity what’s we continue back plus capacity X-year one have that our think about have is grow over dividend we to in important billion having talked to that And execute dividend there is December. plan. period a to outlined business number $X sure we invest of in time that to that I range that the through that, as

tripling the grow lots see with comfortable I to think opportunity, We very think it. to here. continue ratably of I So,

really one commit and of have over things the is X-year are dividend that next period. of mindful to grow that can we the a we think I continue to

so say, execute we we we X And would And to reflective the years. we continue line next see increase on of that. have that in to put continue plan outlined, over of the that I have really as grow to that is sight

should year, with top that here two are continue along – going close But by returns, and dividend $X target on buyback the increased as in it. revisiting think to we into the we of billion expect both the we get see as commodity range, pretty hopefully, of about. end even $X that’s this we I debt stay we really highlighted, other talked prices that, to billion program, the we the this base by for pave way components to obviously,

some had this XQ? Perfect. think I turnarounds Alex, in could bit in you performance much better the improved on quarter. XX% a versus even much the but utilization, at a in U.S. you XQ, XQ was little also downstream, downstream, in particular, comment

do all look coming but point So, year, have half out strong the you how some product will downstream running it pretty and for time. we where are the be second in at of overall, environment you you margin this like looks cracks up at are turnarounds of this XQ,

March relatively Lima period turnaround well U.S. in running full is the for you But what the in still tighter, QX the with the seeing started Keith out but here. I as Yes, timeframe. alluded able March both the in we Hi to, say timeframe. Chiasson those would turnaround year, we heavy is little we in pretty Manav, early as are a Canada. Cracks in it’s us, capture to were a as

offline lot we joint of our will refined offline throughout and have venture assets, assets our quarter. So, a assets the Canadian

So, of we of to are but jet turnaround activity pre-COVID is that look back is forward coming levels. increase, behind, QX forward and to us. above markets, seeing kind as we demand kind where market. Diesel a and is levels looking robust lot behind Utilization pre-COVID we pretty are Gasoline is demand a will back. well of demand still to product

So, actually a back of pretty year. really good it’s up the setting for well half

the X Toledo. the right, Sunrise or envision is as of BP – if one as X can of BP scenario the years operator is quick Perfect. My last a the is, Cenovus price well when then years we operator in

are that reasons and you the out price there. Sunrise you. it there a trying leave Toledo Thank to guys if right, move the sands and the European of refinery? oil And is possibility whatever operator who in will of So, have sole for refining. is you both are I owner

anything I possible. Well, is Manav, guess

ask what go You will time for partners the our being. think that. might of they probably to want emir I

Thank you.

Thanks.

Markets. will CIBC I from a you. Capital Thank Fong Dennis take follow-up with

my for here. questions and Hi taking round thanks of second

Creek I strong maybe the your in opening from Just I alluded of Lake asset side. some operating production are But Foster showcasing get to it’s you that of $X the really the you just those just was improvements doing bit at downstream that X-year about in the volumes assets. see from months to teams your work two a Christina margin and in your oil worth commentary, only into – update terms hoping around of – great know plan. of five an sands from billion can

Cenovus’ Just presume this an opportunities the through Thanks. as at operating come the wanted there of turnaround? I of application seeing major bit you well of how at as to the a the some FCCL, of are and expansion Husky margin some which at model work get as after WRB update on assets could optimization to Toledo,

Dennis. to and will will Maybe downstream do can side Norrie Keith about to I the the I that, happy No, side. do maybe in talk chip upstream Yes. is get on what

our Yes, upstream optimization. to Okay. just Hi start Dennis, here. with Norrie

the is across – the have you solid biggest our processes Lloyd been as kind one FCCL Thermal The have that legacy applying into know, the in area. purchased. we of We assets

effort What we have NCG. we call We been investment asset. lot and put what the a into have doing really of we is been adding have

So, of kind And deploy forward. do in move we allowing to areas our as as is steam well methane us as we best steam what is the to co-injection. been utilizing have this

have And are wells. them also longer We have what Lloyd. – is payers optimal I we XX again, mean well we actually putting so to we add positions, – in about are year, far added doing this

are kind coming through. production that see our of kind Creek applying Foster strong you and of We processes,

at thing additional an other these up basically areas this these doing drill identified re-dev steamed year that been areas basically we to we Lloyd the The cheaply. into already, oil and Thermal. are have able very is opportunities are evacuate re-drill and And have again, XX we are

number are we So, four forward. as Sunrise, putting place program And of years of in go forward. we as the to as similarly, and – next this go investment re-drill a year, our continue pad we shape, production strong at kind expect an actively will program. over well that of of taking we is keeping with you see, re-dev also we that’s that’s kind – opportunities we are as kind have XX And very

continuing working would, it next theorized see or everything the expect X the we So, in is years and vein. years X as we to this same over

here. Dennis, Keith And

this being Just during expansion picking was required is at up turnaround real on be our refinery. time coming to What are kind opportunities, of executed the River opportunities margin those going Wood process.

the Toledo crude. tan of the when made be are expand metaling turnaround, that product high to we hand refinery comes it turnaround, the on out improvements have So, to will back able yields. the And full up to then it

the Christina basically benefits. us the expansion, Canada. so we the us obviously, sell of And the introduce and It refinery, rewire us using market. the think the in Creek several the condensate When our to versus the of LLB, a to It we recycle province. that lower quality, margin in refinery further unit advancing has upgrader Foster in crudes allows costs which way lower mix. to on expand then margin a will Lake upgrader because taking advantage are the helps out our allows crude we So, of the discounted in project, more and coming product are crudes into cost to Alberta just expansion

initiatives there. good So, underway

is with fairly XXXX, scheduled to kind XXXX. sizable of The back end early are TMX, we that. other margin the at come associated on expansions And of shipper obviously a online

other So, us then move that expansion oil is to the higher-value in crude markets. one opportunity our give around will big to the just schedules. And turnaround margin

one cycles. in of have through and a has utilization, their And XXXX, Toledo quarter only So, five also up, as turnaround pretty but in major and not gone fourth impact sizable Lima it quarter coming cost. on, have we both seen this

X-year So, are through now turnaround their cycle. those

good run for pretty forward. time a it’s those So, going two refineries

appreciate Really Thank was That great. you. Perfect. that.

Yes. Thanks No worries. Dennis.

Thank you.

Force hear next with will We from Chris Herald. Calgary

project, of questions CCUS. incentives mind of foundational some Alberta? to credit and the in the see Alex the regarding to your investment of couple need enough the with do of Hi. for This Is Pathways X you Federal Phase Province from tax proceed is sort or assistance a

of in Chris, if projects world is capital is to have you often around government the XX% gone at XX% generally you look where take seen operating support. have There the level. cost what CCUS forward, some a participation is kind both usually

I is investment So, a kind the to, very think tax start. of as credit good alluded I

a steady be there as And are would we state think of require large-scale meaningful levels in will projects. going CCUS we an from I I help – suspect industry, ultimately both contribution forward these are at more some really to government to certainly probably with go that.

public, then. With guess, Just the Province but need such to of earnings, the from also for ITC, I explain strong you follow-up financial how Alberta? maybe assistance to do the

time one has commodity XX of very and at oil the $XX you of or It’s low barrel at oil I And average And recently, a $XXs period. Chris. of a sides Yes. on long couple personally the I ago. these would a that like memory. prices. probably last $XX funny, the pretty look elements interested it think expect remember I have always years, I is, debate the a sort of memory looked more everybody – am of in XX but where over if over or about take of about oil short it And looks debates haven’t this, about I years being a price I a barrel both it

that Pathways they these prices certainty oil when those we And and of price oil prices So, of investments, investable make entire manage are go projects. investments up, that but have down, have commodity project, to are kind these go over we foundational are can dollar cycle. these multibillion like kind the investments the we that

– know test probably ever of is project those you we before prices bottom obviously – end I oil will attractive, very now although we are the So, again. right probably service, prices in that

we are long-term. And as the tens in the a jurisdictions, we this both of these other real dollars from we require will suspect, long-term have also support invest we government. So, look but over I some really collaboration, to to from projects, over at going billions seen of going who have in much need industry are to

really as the upstream. talking energy how delivered decarbonize a produced are in and massive we change about We is

decision? front, what Pathways? work talked that FID you needed to am done going is But Just finally guess still anticipate you details you you just be that be more year When on wondering do to you is an can need the have FID And I this on before details? to what fact that I in do about hand make made?

trunk to information. line the now, that we a there a really preliminary Group, bit Right to foundational just detail COX that sequestration. the takes engineering but scale project, how little more carbon the and is out ITC time that is – to Pathways for have the already the with be the obviously larger just transport ITC of announcement about The that lot And come eventually has at the occurred, commenced going work. capture going for is of government us, site, that on

the We develop government the permitting, the to other and work, kicked there and the that the required permits get application construct to of off environmental have ultimately studies space process application to are significant project. for in making we Alberta for work the for are that and floor in

of with on. literally organization Pathways The going the we a into to come. dozens of amount have seconded So huge more people partners there actually is work

development right in full-scale now Pathways. we So, mode are at

Thank you.

Thanks, Chris. worries. No

conference turn conclude any for Pourbaix remarks. Mr. the session. Thank or additional you. That does to today’s over like I’d back closing to question-and-answer

Well, interest us. thanks very the continued taking spend thanks for and much your morning in with time this everybody company to and

their let again, get everyone thanks we’ll day. and once back to So,

That conference. you your for you. Thank today’s Thank does participation. conclude