Cenovus Hits Production Bullseye for 2009
Cenovus met 2009 production guidance for oil and natural gas. Production from Foster Creek and Christina Lake increased 43 percent to about 43,000 barrels per day (bbls/d) (net), after royalties.
Bitumen proved reserves increased 24 percent, to about 866 million barrels, before royalties.
Cash flow of approximately US $2.5 billion, or $3.29 per share, was in line with guidance. Free cash flow was approximately $580 million.
Operating earnings were approximately $1.3 billion, or $1.74 per share.
The transition to Cenovus as an independent company resulted in a cash tax acceleration in the fourth quarter that impacted financial results.
"We're launching Cenovus from a position of strength -- a vast resource base, a solid financial foundation and a track record of superior operational performance," said Brian Ferguson, President & Chief Executive Officer of Cenovus. "These past months have been an exciting time for all of us at Cenovus. Our staff is enthusiastic about being part of a new company with tremendous potential and one that is applying fresh thinking to develop our energy resources.
"Shareholders sent a strong message with their vote to create two separate companies, each with a greater focus on its individual assets. For Cenovus, that means concentrating on the development of our oil properties, especially in northeast Alberta. We're undertaking an in-depth evaluation of our undeveloped assets and are assessing where to invest the cash flow generated from our conventional oil and natural gas production to create the greatest value over the long term. We’re also accelerating the development of phase D at Christina Lake by six months and we're considering whether to move ahead timelines for other phases," Ferguson said.