Cenovus Energy

{{Short description|Canadian integrated oil and natural gas company}}

{{Infobox company

| name = Cenovus Energy Inc.

| logo = Cenovus logo.svg

| logo_size = 250px

| type = Public

| traded_as = {{TSX|CVE}}
{{NYSE|CVE}}
S&P/TSX 60 component

| industry = Petroleum industry

| founder =

| key_people = Jon McKenzie (CEO)
Alex Pourbaix (board chair)

| products = * Natural gas

| predecessor =

| revenue = {{decrease}}{{CA$| 52.204 billion|link=yes}}{{cite web|url=https://mc-95523900-b89e-4513-a7cd-2165-cdn-endpoint.azureedge.net/-/media/Project/WWW/docs/investors/2023/2023-Annual-Report.pdf?rev=40fb87ea8ab94b9fbc462f6904346210&sc_lang=en&hash=322D811378AD401597323DF773BE1A97|title=2023 Annual Report|access-date=December 2, 2024}}

| revenue_year = 2023

| operating_income = {{decrease}}{{CA$| 11.022 billion|link=yes}}

| income_year = 2023

| net_income = {{decrease}}{{CA$| 4.109 billion|link=yes}}

| net_income_year = 2023

| assets = {{decrease}}{{CA$| 53.915 billion|link=yes}}

| assets_year = 2023

| equity = {{increase}}{{CA$| 28.698 billion|link=yes}}

| equity_year = 2023

| num_employees = 6,925 full-time equivalent employees{{cite web|url=https://mc-95523900-b89e-4513-a7cd-2165-cdn-endpoint.azureedge.net/-/media/Project/WWW/docs/investors/2023/2023-Annual-Information-Form.pdf?rev=204643174e5540de8cee6b9bfdf9289c&sc_lang=en&hash=AD3A8CA6A6D8BA463205307FE45CAEE7|title=2023 Annual Information Form|access-date=December 2, 2024}}

| caption =

| foundation = {{Start date and age|2009|11|30|df=y}}

| location_city = Calgary, Alberta, Canada

| subsid = Husky Energy

| homepage = {{URL|www.cenovus.com}}

}}

Cenovus Energy Inc. (pronounced se-nō-vus) is a Canadian integrated oil and natural gas company headquartered in Calgary, Alberta. Its offices are located at Brookfield Place, having completed a move from the neighbouring Bow in 2019.{{Cite web |last=Cenovus Energy Inc. |date=2020-02-11 |title=2019 Annual Information Form |url=https://sec.report/Document/0001564590-20-004341/cve-ex991_12.htm |access-date=2020-10-25 |publisher=SEC}}

History

Cenovus was formed in 2009 when Encana Corporation split into two distinct companies,{{Cite press release |title=EnCana proceeds with plan to split into two distinct and independent energy companies |date=September 10, 2009 |publisher=Encana |url=https://www.cenovus.com/news/news-releases/2009/0910-split-proceeds.pdf |access-date=December 19, 2019 |archive-date=January 19, 2022 |archive-url=https://web.archive.org/web/20220119153237/https://www.cenovus.com/news/news-releases/2009/0910-split-proceeds.pdf |url-status=dead }} with Cenovus becoming focused on oil sands assets.

In 2017, Cenovus purchased ConocoPhillips' 50 percent share of their Foster Creek Christina Lake (FCCL) oil sands projects and most of their conventional assets in Alberta and British Columbia, including the Deep Basin.{{Cite news |date=29 March 2017 |title=Cenovus to buy ConocoPhillips' Canadian assets for a massive $17.7 billion |url=http://business.financialpost.com/commodities/energy/cenovus-to-buy-conocophillips-canadian-assets-for-a-massive-17-7-billion |access-date=11 September 2017 |website=Financial Post|last1=Morgan |first1=Geoffrey }}{{Cite web |title=Cenovus to double production and reserves in Canada |url=http://www.cenovus.com/news/news-releases/2017/03-29-2017-asset-acquisition.html |url-status=dead |archive-url=https://web.archive.org/web/20180909150533/https://www.cenovus.com/news/news-releases/2017/03-29-2017-asset-acquisition.html |archive-date=2018-09-09 |access-date=2017-05-18}}{{Cite web |title=Cenovus completes acquisition of assets in Western Canada from ConocoPhillips |url=http://www.cenovus.com/news/news-releases/2017/05-17-2017-cenovus-completes-acquisition-of-assets-in-western-canada-from-conocophillips.html |url-status=dead |archive-url=https://web.archive.org/web/20181206105811/https://www.cenovus.com/news/news-releases/2017/05-17-2017-cenovus-completes-acquisition-of-assets-in-western-canada-from-conocophillips.html |archive-date=2018-12-06 |access-date=2017-05-18}} Cenovus completed the acquisition of Husky Energy for C$3.9 billion in stock in January 2021.{{Cite news |last1=Casey |first1=Simon |last2=Tuttle |first2=Robert |date=2020-10-25 |title=Cenovus to Create Canada Oil Giant With $2.9 Billion Husky Deal |work=Bloomberg |url=https://www.bloomberg.com/amp/news/articles/2020-10-25/cenovus-energy-to-combine-with-husky-energy-in-all-stock-deal |access-date=2020-10-25}}{{Cite news |last=Exarheas |first=Andreas |title=Cenovus Combines with Husky |url=https://www.rigzone.com/news/cenovus_combines_with_husky-05-jan-2021-164247-article/ |date=2021-01-05 |work=Rigzone |accessdate=2021-01-28}} The combined company is Canada’s third-largest crude oil and natural gas producer and the second-largest Canadian-based refiner and upgrader.{{Cite press release |last=Inc |first=Husky Energy |date=2021-01-04 |title=Transaction to combine Husky and Cenovus closes |url=https://www.globenewswire.com/news-release/2021/01/04/2152438/0/en/Transaction-to-combine-Husky-and-Cenovus-closes.html |access-date=2022-05-17 |website=GlobeNewswire News Room |language=en}}

Operations

=Oil sands=

Cenovus has four producing projects in the oil sands – Foster Creek, Christina Lake (Alberta), Sunrise (jointly owned with BP Canada and operated by Cenovus) and Tucker.{{Cite web |year=2021 |title=2021 Annual Report |url=https://www.cenovus.com/invest/docs/2022/2021-annual-report-en.pdf }} All projects use the drilling method of steam-assisted gravity drainage (SAGD). On May 17, 2017, Foster Creek and Christina Lake became 100 percent owned and operated by Cenovus. In December 2021, Cenovus announced the sale of the Tucker oil sands project to Strathcona Resources.{{Cite web |date=2021-12-17 |title=Strathcona Resources to buy Tucker oilsands project from Cenovus in $800M deal |url=https://calgary.ctvnews.ca/strathcona-resources-to-buy-tucker-oilsands-project-from-cenovus-in-800m-deal-1.5711669 |access-date=2022-05-17 |website=Calgary |language=en}} In June 2022, Cenovus announced it would acquire the outstanding 50% interest in the Sunrise oil sands asset and assume full ownership.{{Cite web |date=June 13, 2022 |title=Cenovus Energy acquires BP's 50% stake in Sunrise oilsands project |url=https://www.cbc.ca/news/canada/calgary/cenovus-bp-sunrise-oilsands-buy-1.6486711 |website=CBC}}

=Conventional oil and gas=

Cenovus once held conventional oil and natural gas operations across Alberta and Saskatchewan, including the Weyburn oilfield in Saskatchewan, which is the largest {{CO2}} enhanced oil recovery operation in Canada. It's also the site of the largest geological greenhouse gas storage project in the world, with about 30 million tonnes of {{CO2}} safely stored underground{{Citation |title=Canada 150: From early oil wealth to global GHG reduction tech enabler, Saskatchewan's Weyburn-Midale oilfield just keeps giving |date=28 June 2017 |work=JWN |access-date=31 August 2017 |url=http://www.jwnenergy.com/article/2017/6/canada-150-early-oil-wealth-global-ghg-reduction-tech-enabler-saskatchewans-weyburn-midale-oilfield-just-keeps-giving/}} and extensively studied by researchers as part of the International Energy Agency Greenhouse Gas Weyburn-Midale {{CO2}} Monitoring and Storage Project.[http://ptrc.ca/projects/weyburn-midale Weyburn-Midale] {{Webarchive|url=https://web.archive.org/web/20121010114649/http://ptrc.ca/projects/weyburn-midale |date=October 10, 2012 }} published by Petroleum Technology Research Centre

In May 2017, Cenovus assumed ownership of ConocoPhillips' conventional assets in Alberta and British Columbia. Cenovus’s current conventional assets include the Deep Basin, a liquids-rich natural gas fairway located in northwestern Alberta and northeastern British Columbia, and the Marten Hills heavy oil project. The Deep Basin asset comprises approximately 2.8 million net acres of land and produced more than 125,000 barrels of oil equivalent. Cenovus also holds a significant land position in the Marten Hills region for potential development. In November 2020, Cenovus announced the sale of the Marten Hills assets to Headwater Exploration Inc.{{Cite web |agency=The Canadian Press |date=2020-11-09 |title=Cenovus selling Marten Hills assets to Headwater in $100M deal - BNN Bloomberg |url=https://www.bnnbloomberg.ca/cenovus-selling-marten-hills-assets-to-headwater-in-100m-deal-1.1519738 |access-date=2022-05-19 |website=BNN}}

=Refining=

Following the acquisition of Husky Energy in January 2021, Cenovus became Canada’s second-largest Canadian-based refiner and upgrader.{{Cite press release |last=Inc |first=Husky Energy |date=2021-01-04 |title=Transaction to combine Husky and Cenovus closes |url=https://www.globenewswire.com/news-release/2021/01/04/2152438/0/en/Transaction-to-combine-Husky-and-Cenovus-closes.html |access-date=2022-08-02 |website=GlobeNewswire News Room |language=en}} Cenovus owns the Lima Refinery in Lima, Ohio, the Superior Refinery in Superior, Wisconsin and the Lloydminster refinery in Lloydminster, Alberta and upgrader in Lloydminster, Saskatchewan.{{Cite web |title=Upgrading & refining |url=https://www.cenovus.com/Our-operations/Upgrading-and-refining |access-date=2022-08-02 |website=www.cenovus.com |language=en}}{{Cite web |title=Cenovus Energy Inc. (CVE) CEO Alexander Pourbaix on Q2 2022 Results - Earnings Call Transcript {{!}} Seeking Alpha |url=https://seekingalpha.com/article/4528007-cenovus-energy-inc-cve-ceo-alexander-pourbaix-on-q2-2022-results-earnings-call-transcript |access-date=2022-08-02 |website=seekingalpha.com |date=July 31, 2022 |language=en}} Cenovus has 50 percent ownership in two refineries in the United States: the Wood River Refinery and Borger, Texas refinery. Phillips 66 is the co-owner and operator.{{Cite web |title=Refining Marketing |url=http://www.phillips66.com/EN/about/our-businesses/refining-marketing/refining/Pages/index.aspx |url-status=dead |archive-url=https://web.archive.org/web/20121102082729/http://www.phillips66.com/EN/about/our-businesses/refining-marketing/refining/Pages/index.aspx |archive-date=2012-11-02 |publisher=Phillips 66}} In August 2022, Cenovus reached an agreement to purchase BP's 50% interest in the BP-Husky Toledo Refinery in Toledo, Ohio. Cenovus has owned the other 50% of the refinery since its combination with Husky Energy in 2021.{{Cite press release |last=Inc |first=Cenovus Energy |date=2022-08-08 |title=Cenovus Acquiring Outstanding 50% Interest in Toledo Refinery from bp, Will Assume Operatorship |url=https://www.globenewswire.com/news-release/2022/08/08/2493791/0/en/Cenovus-Acquiring-Outstanding-50-Interest-in-Toledo-Refinery-from-bp-Will-Assume-Operatorship.html |access-date=2022-08-18 |website=GlobeNewswire News Room |language=en}}

=Transportation=

Cenovus owns a crude-by-rail loading facility near Edmonton Alberta – the Bruderheim Energy Terminal. The company was recognized for its rail safety performance in 2016,{{Cite web |title=Rail |url=https://www.cenovus.com/operations/marketing-transportation/rail.html |access-date=December 15, 2017 |publisher=Cenovus Energy}} and for safe transportation of chemical products in 2017.{{Cite web |date=June 26, 2017 |title=Union Pacific Spotlights Safe Chemical Transportation |url=https://www.up.com/media/releases/170626-safe-chemical-transportation.htm |access-date=December 15, 2017 |publisher=Union Pacific Railroad}}

= Retail =

Cenovus owns a group of travel centres under the Husky brand, which were included in its acquisition of Husky Energy. They offer fuels under the Esso brand.{{Cite web |last=medicinehatnews |date=2021-12-02 |title=Gas station swap shouldn't affect the Hat |url=https://medicinehatnews.com/uncategorized/2021/12/02/gas-station-swap-shouldnt-affect-the-hat/ |access-date=2024-02-16 |website=Medicine Hat News}}{{Cite web |last=Lindenberg |first=Greg |date=December 1, 2021 |title=Parkland, Federated Co-operatives Split Up 337 Husky Stations |url=https://cspdailynews.com/mergers-acquisitions/parkland-federated-co-operatives-split-337-husky-stations |access-date=2022-07-14 |website=CSP Daily News |language=en}}

Technology

The primary technology Cenovus uses at its Foster Creek and Christina Lake projects is called steam-assisted gravity drainage (SAGD). Cenovus also applies different associated technologies to enhance the SAGD process, such as electric submersible pumps at Foster Creek and solvent aided process (SAP) at Christina Lake.

In 2011, the company began applying its blowdown boiler technology to improve the efficiency of water use at its oil sands operations.{{Cite web|url=https://www.ogj.com/articles/print/volume-108/issue-33/drilling-__production/technologies-lower.html|title=StackPath|website=www.ogj.com|date=September 6, 2010 |accessdate=March 5, 2023}} In 2013, Cenovus developed its "SkyStrat" drilling rig that allows an exploratory rig to be flown into remote areas by helicopter piece-by-piece, set up to drill a test well, dismantled and airlifted away. The process requires no roads, meaning little disturbance to the boreal forest.{{Cite web |title=Flying drilling rig |url=http://www.cosia.ca/flying-drilling-rig |url-status=dead |archive-url=https://web.archive.org/web/20160304110648/http://www.cosia.ca/flying-drilling-rig |archive-date=2016-03-04 |access-date=2015-09-10}} The company received an Environmental Performance award for the SkyStrat program.{{Citation |title=Celebrating industry initiative |date=22 April 2013 |work=Financial Post |access-date=2 May 2016 |url=http://business.financialpost.com/news/energy/celebrating-industry-initiative?__lsa=f8d6-8ac7|last1=Post |first1=Special to Financial }}

= Potential mitigation of climate impacts =

Cenovus is a member of Oil Sands Pathways to Net Zero initiative, an alliance of oil sands companies working collectively with the federal and Alberta governments to achieve net zero greenhouse gas (GHG) emissions from the companies oil sands operations by 2050. According to Cenovus's Chief Sustainability Officer, the company is pursuing government support for decarbonization efforts, because "[t]hese are not projects that make revenue. So for a corporation that is owned by shareholders to put 100 per cent of the costs into a project that doesn’t bring any revenue back, that is not something that a corporation can do."{{cite news |last1=Graney |first1=Emma |title=Oil sands CEOs are working together in the race to get to net zero |url=https://www.theglobeandmail.com/business/article-oil-sands-ceos-are-working-together-in-the-race-to-get-to-net-zero/ |access-date=14 February 2022 |work=The Globe and Mail |date=14 February 2022}} However, a report by the Canadian Institute for Climate Choices, a source of independent analysis on climate change issues funded by Environment Canada, recommended investing limited public dollars to capture "a share of growing, transition-opportunity markets" rather than in "assets at elevated risk of being stranded in global low-carbon scenarios" as fossil fuel demand "inevitably decline[s] globally".