Cenovus announces third-quarter 2025 results

Press Release

CALGARY, Alberta, Oct. 31, 2025 — Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) today announced its third-quarter 2025 financial and operating results. The company generated approximately $2.1 billion in cash from operating activities, $2.5 billion of adjusted funds flow and $1.3 billion of free funds flow. Operating results in the quarter included record Upstream production of 832,900 barrels of oil equivalent per day (BOE/d)¹ and record Downstream crude throughput of 710,700 barrels per day (bbls/d), representing an overall utilization rate of 99%.

Highlights

• Highest recorded Upstream production of 832,900 BOE/d in the third quarter, including record production of approximately 642,800 BOE/d from the Oil Sands segment.
• Highest recorded U.S. Refining crude throughput of 605,300 bbls/d, representing a utilization rate of 99%, with per unit operating expenses, excluding turnarounds costs, of $9.67 per barrel, a decrease of 8% relative to the prior quarter and 24% from the third quarter of 2024.
• Substantially completed the Foster Creek optimization project, with four new steam generators brought online in the quarter, contributing to increased production rates. Commissioning of remaining facilities is underway and new well pads will be brought online in early 2026.
• The commissioning of the West White Rose project is nearing completion, with drilling expected to commence in the fourth quarter of 2025 and first oil expected in the second quarter of 2026.
• Closed the sale of Cenovus’s 50% interest in WRB Refining LP (WRB) on September 30 and received cash proceeds of $1.8 billion, net of preliminary closing adjustments, on October 1.
• Returned $1.3 billion to common shareholders, including $918 million through common share purchases, and $356 million through common share dividends.
• Subsequent to the quarter, announced an amended agreement to acquire MEG Energy Corp. (“MEG”). MEG’s shareholder vote is scheduled for November 6, 2025, and the transaction is anticipated to close in mid-November subject to shareholder and court approvals.

“We delivered record volumes in both our Upstream and Downstream businesses this quarter, while maintaining our commitment to safe, reliable and cost-effective operations,” said Jon McKenzie, Cenovus President & Chief Executive Officer. “Our major growth projects are all approaching completion and our Downstream business is reaching its potential with consistently strong operating performance this quarter.”

Financial summary

Production and throughput

¹ See Advisory for production by product type and by operating segment.
² Non-GAAP financial measure or contains a non-GAAP financial measure. See Advisory.

Third-quarter results

Operating¹

Cenovus’s total revenues were $13.2 billion in the third quarter, up from $12.3 billion in the second quarter of 2025. Upstream revenues were $6.7 billion, a slight decrease from $6.8 billion in the previous quarter, while Downstream revenues were $8.4 billion, an increase from $7.7 billion in the second quarter.

Total operating margin³ was $3.0 billion, compared with $2.1 billion in the previous quarter. Upstream operating margin⁴ was $2.6 billion, an increase from $2.1 billion in the second quarter due to higher production and sales volumes, an increase in benchmark oil prices, and lower per unit operating costs. Downstream operating margin⁴ was $364 million, exceeding a shortfall of $71 million in the previous quarter, with favourable U.S. market crack spreads, lower per unit operating costs, and higher crude throughput following the completion of major turnaround activity in the prior quarter. Operating margin in the U.S. Refining segment was $253 million, which included a $67 million benefit from the receipt of Small Refinery Exemption (SRE) waivers related to the Superior Refinery, an $80 million inventory holding loss and $38 million of turnaround expenses.

Total Upstream production was 832,900 BOE/d in the third quarter, up from 765,900 BOE/d in the second quarter. Christina Lake production was 251,700 bbls/d compared with 217,900 bbls/d in the prior quarter, as Narrows Lake volumes began contributing and the facility benefited from flush production following a wildfire-related shutdown in the second quarter. Foster Creek production was 215,400 bbls/d, up from 186,100 bbls/d in the second quarter, as additional steam capacity from the Foster Creek optimization project supported higher production rates and a turnaround was completed in the prior quarter. Sunrise production was 52,400 bbls/d compared with 50,300 bbls/d in the second quarter, with both periods impacted by turnaround activities.

Production from the Lloydminster thermal assets was 95,700 bbls/d compared with 97,800 bbls/d in the prior quarter. The Rush Lake facilities in west-central Saskatchewan remain temporarily shut-in following a steam release from a casing failure in an injection well which took place in the second quarter of 2025. Plans are being progressed to begin a phased restart of production by the end of the year. Lloydminster conventional heavy oil output was 25,400 bbls/d, a slight increase from 25,000 bbls/d in the second quarter.

Production in the Conventional segment was 126,900 BOE/d, an increase from 119,800 BOE/d in the previous quarter due to strong performance from base and new development wells.

In the Offshore segment, production was 63,200 BOE/d compared with 66,300 BOE/d in the second quarter. In Asia Pacific, production volumes were 51,900 BOE/d, lower than the 53,800 BOE/d in the previous quarter, primarily due to maintenance activity in China. In the Atlantic region, production was 11,300 bbls/d, down from 12,500 bbls/d in the prior quarter, as production at the White Rose field was temporarily offline to complete subsea tie-ins between the West White Rose platform and the SeaRose floating production, storage and offloading (FPSO) vessel.

Total Downstream crude throughput in the third quarter was 710,700 bbls/d, up from 665,800 bbls/d in the second quarter. Crude throughput in Canadian Refining was 105,400 bbls/d, representing a utilization rate of 98%, compared with 112,400 bbls/d in the previous quarter.

In U.S. Refining, crude throughput was 605,300 bbls/d, representing a utilization rate of 99%, compared with 553,400 bbls/d in the second quarter. U.S. Refining revenues were $7.1 billion, up from $6.5 billion in the prior quarter. Adjusted market capture⁵ in U.S. Refining was 65%, compared with 58% in the second quarter, driven by stronger performance at Cenovus’s operated refineries and the impact of SRE waivers received in the quarter. Excluding the impact of SRE waivers, adjusted market capture in the third quarter would have been approximately 5% lower.

³ Non-GAAP financial measure. Total operating margin is the total of Upstream operating margin plus Downstream operating margin. See Advisory.
⁴ Specified financial measure. See Advisory.
⁵ Adjusted market capture excludes the impact of inventory holding gains or losses. Contains a non-GAAP financial measure. See Advisory.

Financial

Cash from operating activities in the third quarter decreased to approximately $2.1 billion from $2.4 billion in the second quarter. Adjusted funds flow was $2.5 billion, compared with $1.5 billion in the prior quarter, and excess free funds flow (EFFF) was $745 million, compared with a shortfall of $306 million in the prior quarter. Net earnings in the third quarter increased to $1.3 billion from $851 million in the previous quarter. Third-quarter financial results reflected higher Upstream production and sales, increased Downstream utilization, stronger oil prices and market crack spreads, and lower turnaround costs relative to the second quarter.

Long-term debt, including the current portion, was $7.2 billion as at September 30, 2025. Net debt was $5.3 billion as at September 30, 2025, slightly increased from the previous quarter, as common share repurchases of $918 million exceeded EFFF of $745 million. As noted, on October 1, the company received $1.8 billion of cash proceeds from the sale of its 50% interest in WRB. The company continues to steward toward a long-term net debt target of $4.0 billion.

Growth projects

In the Oil Sands segment, Narrows Lake achieved first oil in mid-July. Three well pads were brought online in the quarter as the project continues to ramp up towards full rates. The optimization project at Foster Creek is approximately 98% complete and four steam generators brought online in July have supported higher production from the asset ahead of schedule. Commissioning of the water treating and de-oiling infrastructure is now underway and new well pads will be operating in early 2026. At Sunrise, one new well pad is being prepared for steaming in the fourth quarter, which will support continued production growth from the asset.

At West White Rose, the project’s topsides were safely lifted and set in place atop the concrete gravity structure in mid-July, and subsea tie-ins from the West White Rose platform to the SeaRose FPSO were completed in the quarter. Hookup and commissioning activities are underway, and the project is approximately 98% complete. Drilling is expected to begin by the end of the year and the project remains on schedule to produce first oil in the second quarter of 2026.

2025 guidance update

Cenovus has revised its 2025 corporate guidance to reflect the disposition of the company’s 50% interest in WRB effective September 30.  A copy of the updated guidance is available on cenovus.com under Investors.

Changes to the company’s 2025 guidance include:

• U.S. Downstream throughput of 510,000 bbls/d to 515,000 bbls/d, a decrease of 52,500 bbls/d at the midpoint.
• Downstream turnaround expenses of $360 million to $380 million have been reduced by $65 million at the midpoint.

MEG transaction update

Subsequent to the quarter, on October 27, 2025, Cenovus announced an amended agreement to acquire MEG, for a combination of cash and Cenovus common shares valued at approximately $30.00 per MEG share. On Thursday, October 30, MEG adjourned its scheduled special meeting of shareholders related to the transaction, with Cenovus’s consent, to Thursday, November 6, 2025. The adjournment will allow MEG time to respond to a regulatory inquiry related to MEG’s consideration of the amended terms of the transaction and related matters. Subject to the approval of the Court, the approval of the MEG shareholders and the satisfaction or waiver of other customary closing conditions, Cenovus expects the transaction to close in mid-November.

Sustainability

In the third quarter, Cenovus announced the expansion of its Indigenous Housing Initiative, committing up to $8 million annually in ongoing funding. Launched in 2020 with a five-year, $50 million commitment, the program has supported the construction of nearly 200 homes in six First Nation and Métis communities near the company’s oil sands operations in northeast Alberta. As the initial program closes, three new communities — Saddle Lake Cree Nation, Kikino Métis Settlement and Whitefish Lake First Nation #128 — will join the initiative in 2026. The sustained funding reflects Cenovus’s long-term commitment to advancing Indigenous reconciliation and supports efforts to address housing shortages in additional communities.

Dividend declarations and share purchases

The Board of Directors has declared a quarterly base dividend of $0.20 per common share, payable on December 31, 2025, to shareholders of record as of December 15, 2025.

In addition, the Board has declared a quarterly dividend on each of the Cumulative Redeemable First Preferred Shares – Series 1 and Series 2 – payable on December 31, 2025, to shareholders of record as of December 15, 2025, as follows:

Preferred shares dividend summary

All dividends paid on Cenovus’s common and preferred shares will be designated as “eligible dividends” for Canadian federal income tax purposes. Declaration of dividends is at the sole discretion of the Board and will continue to be evaluated on a quarterly basis.

In the third quarter, the company returned $1.3 billion to shareholders, composed of $918 million from its purchase of 40.4 million shares through its normal course issuer bid (NCIB) and $356 million through common and preferred share dividends. Subsequent to the quarter, the company purchased 17.0 million common shares through October 27, 2025 for $409 million. The current NCIB will expire on November 10, 2025. Cenovus has received approval from the Board to apply for another NCIB program. Cenovus will apply for approval to repurchase up to approximately 120 million of the company’s common shares, representing approximately 10% of its public float, as defined by the TSX.

2025 planned maintenance

The following table provides details on planned maintenance activities at Cenovus assets in 2025 and anticipated production or throughput impacts.

Potential quarterly production/throughput impact (Mbbls/d or MBOE/d)

Potential turnaround expenses

Conference call today

Cenovus will host a conference call today, October 31, 2025, starting at 9 a.m. MT (11 a.m. ET).

For analysts wanting to join the call, please register in advance.

To participate in the conference call, complete the online registration form in advance of the call start time. Once registered, you will receive a unique PIN to access the call by phone. You can either dial into the conference call using the unique PIN or select the “Call Me” option to receive an automated call.

A live audio webcast of the conference call will also be available and will remain archived for approximately 30 days.

Advisory

Basis of Presentation

Cenovus reports financial results in Canadian dollars and presents production volumes on a net to Cenovus before royalties basis, unless otherwise stated. Cenovus prepares its financial statements in accordance with International Financial Reporting Standards (IFRS) Accounting Standards.

Barrels of Oil Equivalent

Natural gas volumes have been converted to barrels of oil equivalent (BOE) on the basis of six thousand cubic feet (Mcf) to one barrel (bbl). BOE may be misleading, particularly if used in isolation. A conversion ratio of one bbl to six Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil compared with natural gas is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is not an accurate reflection of value.

Product types

Cenovus contacts

Investors
Investor Relations general line
403-766-7711

Media
Media Relations general line
403-766-7751

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