We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cenovus (CVE) Tops on Q4 Earnings, Expects '24 Production Hike
Read MoreHide Full Article
Cenovus Energy Inc. (CVE - Free Report) reported fourth-quarter 2023 adjusted earnings per share of 29 cents, which beat the Zacks Consensus Estimate of 25 cents. The bottom line is in line with the year-ago quarter’s 29 cents.
Total quarterly revenues of $9.65 billion missed the Zacks Consensus Estimate of $9.73 billion. The top line also declined from the year-ago quarter’s $10.36 billion.
Strong quarterly earnings can be primarily attributed to higher contributions from the Oil Sands unit and lower expenses.
Operational Performance
Upstream
The quarterly operating margin from the Oil Sands unit was C$1.96 billion, increasing from the C$1.64 billion reported a year ago.
In the December-end quarter, the company recorded daily oil sand production of 612.6 thousand barrels, up 0.5% year over year primarily due to higher contributions from its Foster Creek and Sunrise operations.
The operating margin at the Conventional unit was C$123 million, down from C$248 million in the year-ago quarter. In the fourth quarter, the company’s daily liquid production of 28.9 thousand barrels declined 12.2% year over year.
The Offshore segment generated an operating margin of C$370 million, up from C$337 million in the year-ago quarter. In the quarter under review, the company recorded daily offshore liquid production of 21.1 thousand barrels.
Downstream
From the Canadian Manufacturing unit, the company reported an operating margin of C$126 million, down from C$278 million in the year-ago quarter. It recorded Crude Oil processed volumes of 100.3 thousand barrels per day (MBbl/D).
The operating margin from the U.S. Manufacturing unit was a loss of C$430 million, significantly down from the year-ago quarter’s profit of C$280 million. Crude oil processed volumes were 478.8 MBbl/D, an increase from 379 MBbl/D in the year-ago quarter.
Expenses
Transportation and blending expenses in the reported quarter declined to C$2.66 billion from C$2.72 billion a year ago.
Also, expenses for purchased products declined to C$6.56 billion from C$6.92 billion in the prior-year quarter.
Capital Investment & Balance Sheet
The company made a total capital investment of C$1.17 billion in the quarter under review.
As of Dec 31, 2023, the Canada-based energy player had cash and cash equivalents of C$2.23 billion. The total long-term debt was C$7.11 billion.
Guidance
For 2024, Cenovus expects total upstream production of 770-810 MBoe/d, the midpoint of which suggests an increase from the 778.7 MBoe/d reported in 2023.
The company gave its capital expenditure guidance of $4.5-$5 billion for the year.
Zacks Rank & Stocks to Consider
Cenovus currently carries a Zacks Rank #5 (Strong Sell).
Equitrans Midstream (ETRN - Free Report) owns, operates, acquires and develops midstream assets, primarily in the Appalachian Basin. It manages natural gas transmission, storage and gathering systems, as well as high and low-pressure gathering lines.
The Zacks Consensus Estimate for ETRN’s 2024 EPS is pegged at 90 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days. ETRN’s 2024 earnings are expected to rise 34.3% year over year.
Energy Transfer (ET - Free Report) is a publicly traded limited partnership focused on diverse energy assets in the United States. Its core operations involve natural gas midstream services, transportation, storage, crude oil facilities and marketing assets.
The Zacks Consensus Estimate for ET’s 2024 EPS is pegged at $1.22. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. ET’s 2024 earnings are expected to rise 18% year over year.
Subsea 7 S.A. (SUBCY - Free Report) helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2024 EPS is pegged at 91 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. SUBCY’s 2024 earnings are expected to soar 277% year over year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cenovus (CVE) Tops on Q4 Earnings, Expects '24 Production Hike
Cenovus Energy Inc. (CVE - Free Report) reported fourth-quarter 2023 adjusted earnings per share of 29 cents, which beat the Zacks Consensus Estimate of 25 cents. The bottom line is in line with the year-ago quarter’s 29 cents.
Total quarterly revenues of $9.65 billion missed the Zacks Consensus Estimate of $9.73 billion. The top line also declined from the year-ago quarter’s $10.36 billion.
Strong quarterly earnings can be primarily attributed to higher contributions from the Oil Sands unit and lower expenses.
Operational Performance
Upstream
The quarterly operating margin from the Oil Sands unit was C$1.96 billion, increasing from the C$1.64 billion reported a year ago.
In the December-end quarter, the company recorded daily oil sand production of 612.6 thousand barrels, up 0.5% year over year primarily due to higher contributions from its Foster Creek and Sunrise operations.
The operating margin at the Conventional unit was C$123 million, down from C$248 million in the year-ago quarter. In the fourth quarter, the company’s daily liquid production of 28.9 thousand barrels declined 12.2% year over year.
The Offshore segment generated an operating margin of C$370 million, up from C$337 million in the year-ago quarter. In the quarter under review, the company recorded daily offshore liquid production of 21.1 thousand barrels.
Downstream
From the Canadian Manufacturing unit, the company reported an operating margin of C$126 million, down from C$278 million in the year-ago quarter. It recorded Crude Oil processed volumes of 100.3 thousand barrels per day (MBbl/D).
The operating margin from the U.S. Manufacturing unit was a loss of C$430 million, significantly down from the year-ago quarter’s profit of C$280 million. Crude oil processed volumes were 478.8 MBbl/D, an increase from 379 MBbl/D in the year-ago quarter.
Expenses
Transportation and blending expenses in the reported quarter declined to C$2.66 billion from C$2.72 billion a year ago.
Also, expenses for purchased products declined to C$6.56 billion from C$6.92 billion in the prior-year quarter.
Capital Investment & Balance Sheet
The company made a total capital investment of C$1.17 billion in the quarter under review.
As of Dec 31, 2023, the Canada-based energy player had cash and cash equivalents of C$2.23 billion. The total long-term debt was C$7.11 billion.
Guidance
For 2024, Cenovus expects total upstream production of 770-810 MBoe/d, the midpoint of which suggests an increase from the 778.7 MBoe/d reported in 2023.
The company gave its capital expenditure guidance of $4.5-$5 billion for the year.
Zacks Rank & Stocks to Consider
Cenovus currently carries a Zacks Rank #5 (Strong Sell).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Equitrans Midstream (ETRN - Free Report) owns, operates, acquires and develops midstream assets, primarily in the Appalachian Basin. It manages natural gas transmission, storage and gathering systems, as well as high and low-pressure gathering lines.
The Zacks Consensus Estimate for ETRN’s 2024 EPS is pegged at 90 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days. ETRN’s 2024 earnings are expected to rise 34.3% year over year.
Energy Transfer (ET - Free Report) is a publicly traded limited partnership focused on diverse energy assets in the United States. Its core operations involve natural gas midstream services, transportation, storage, crude oil facilities and marketing assets.
The Zacks Consensus Estimate for ET’s 2024 EPS is pegged at $1.22. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. ET’s 2024 earnings are expected to rise 18% year over year.
Subsea 7 S.A. (SUBCY - Free Report) helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2024 EPS is pegged at 91 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. SUBCY’s 2024 earnings are expected to soar 277% year over year.