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Cenovus (CVE) Q1 Earnings Beat Estimates, Revenues Miss
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Cenovus Energy Inc. (CVE - Free Report) reported first-quarter 2024 adjusted earnings per share of 46 cents, which beat the Zacks Consensus Estimate of 35 cents. The bottom line also increased from the year-ago quarter’s figure of 24 cents.
Total quarterly revenues of $9.94 billion missed the Zacks Consensus Estimate of $9.98 billion. The top line, however, increased from the year-ago quarter’s level of $9.07 billion.
Strong quarterly earnings can be primarily attributed to higher contributions from the Oil Sands unit and lower expenses.
Cenovus Energy Inc Price, Consensus and EPS Surprise
The quarterly operating margin from the Oil Sands unit totaled C$2.24 billion, up from C$1.15 billion reported a year ago.
In the March-end quarter, the company recorded daily oil sand production of 613.3 thousand barrels, up 4.4% year over year primarily due to higher contributions from its Foster Creek, Sunrise and Lloydminster Thermal operations.
The operating margin at the Conventional unit totaled C$149 million, down from C$261 million in the year-ago quarter. The company’s daily liquid production of 27.3 thousand barrels declined 3.9% year over year.
The Offshore segment generated an operating margin of C$246 million, down from C$300 million in the year-ago quarter. CVE recorded daily offshore liquid production of 17.6 thousand barrels, down from 20.3 thousand barrels a year ago.
Downstream
The Canadian Manufacturing unit reported an operating margin of C$68 million, down from C$263 million in the year-ago quarter. It recorded Crude Oil processed volumes of 104.1 thousand barrels per day (MBbl/D).
The operating margin from the U.S. Manufacturing unit came in at C$492 million, up from the year-ago quarter’s level of C$128 million. Crude oil processed volumes totaled 551.1 MBbl/D, up from 359.2 MBbl/D in the year-ago quarter.
Expenses
Transportation and blending expenses declined to C$2.81 billion from C$3.03 billion a year ago.
Also, expenses for purchased products declined to C$771 million from C$838 million in the prior-year quarter.
Capital Investment & Balance Sheet
Cenovus made a total capital investment of C$1.04 billion in the quarter under review.
As of Mar 31, 2024, the Canada-based energy player had cash and cash equivalents of C$2.4 billion, and a long-term debt of C$7.23 billion.
Guidance
For 2024, Cenovus reiterated its estimate for total upstream production in the band of 770-810 MBoe/d, the midpoint of which suggests an increase from 778.7 MBoe/d reported in 2023.
The company provided its capital expenditure guidance of $4.5-$5 billion for the year.
Hess operates primarily in two areas — the Bakken shale and the Stabroek project offshore Guyana. It is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. HES currently has a Growth Score of B.
The Zacks Consensus Estimate for 2024 and 2025 EPS is pegged at $9.17 and $11.08, respectively. The company has witnessed upward earnings estimate revisions for 2024 in the past seven days.
EOG Resources, an oil and gas exploration company, boasts attractive growth prospects, top-tier returns, and a disciplined management team, leveraging highly productive acreages in prime oil shale plays like the Permian and Eagle Ford.
The Zacks Consensus Estimate for EOG’s 2024 EPS is pegged at $12.14. The company has a Zacks Style Score of B for Value and A for Momentum. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
Valero Energy is a premier refining player with its presence across North America and the Caribbean. Its diverse network favors robust refining margins, utilizing cost-effective crude for more than half of its needs.
The Zacks Consensus Estimate for VLO’s 2024 EPS is pegged at $18.02. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2025 in the past 30 days.
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Cenovus (CVE) Q1 Earnings Beat Estimates, Revenues Miss
Cenovus Energy Inc. (CVE - Free Report) reported first-quarter 2024 adjusted earnings per share of 46 cents, which beat the Zacks Consensus Estimate of 35 cents. The bottom line also increased from the year-ago quarter’s figure of 24 cents.
Total quarterly revenues of $9.94 billion missed the Zacks Consensus Estimate of $9.98 billion. The top line, however, increased from the year-ago quarter’s level of $9.07 billion.
Strong quarterly earnings can be primarily attributed to higher contributions from the Oil Sands unit and lower expenses.
Cenovus Energy Inc Price, Consensus and EPS Surprise
Cenovus Energy Inc price-consensus-eps-surprise-chart | Cenovus Energy Inc Quote
Operational Performance
Upstream
The quarterly operating margin from the Oil Sands unit totaled C$2.24 billion, up from C$1.15 billion reported a year ago.
In the March-end quarter, the company recorded daily oil sand production of 613.3 thousand barrels, up 4.4% year over year primarily due to higher contributions from its Foster Creek, Sunrise and Lloydminster Thermal operations.
The operating margin at the Conventional unit totaled C$149 million, down from C$261 million in the year-ago quarter. The company’s daily liquid production of 27.3 thousand barrels declined 3.9% year over year.
The Offshore segment generated an operating margin of C$246 million, down from C$300 million in the year-ago quarter. CVE recorded daily offshore liquid production of 17.6 thousand barrels, down from 20.3 thousand barrels a year ago.
Downstream
The Canadian Manufacturing unit reported an operating margin of C$68 million, down from C$263 million in the year-ago quarter. It recorded Crude Oil processed volumes of 104.1 thousand barrels per day (MBbl/D).
The operating margin from the U.S. Manufacturing unit came in at C$492 million, up from the year-ago quarter’s level of C$128 million. Crude oil processed volumes totaled 551.1 MBbl/D, up from 359.2 MBbl/D in the year-ago quarter.
Expenses
Transportation and blending expenses declined to C$2.81 billion from C$3.03 billion a year ago.
Also, expenses for purchased products declined to C$771 million from C$838 million in the prior-year quarter.
Capital Investment & Balance Sheet
Cenovus made a total capital investment of C$1.04 billion in the quarter under review.
As of Mar 31, 2024, the Canada-based energy player had cash and cash equivalents of C$2.4 billion, and a long-term debt of C$7.23 billion.
Guidance
For 2024, Cenovus reiterated its estimate for total upstream production in the band of 770-810 MBoe/d, the midpoint of which suggests an increase from 778.7 MBoe/d reported in 2023.
The company provided its capital expenditure guidance of $4.5-$5 billion for the year.
Zacks Rank & Stocks to Consider
Cenovus currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Hess Corporation (HES - Free Report) , EOG Resources Inc. (EOG - Free Report) and Valero Energy Corporation (VLO - Free Report) . While Hess sports a Zacks Rank #1 (Strong Buy), EOG Resources and Valero Energy carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hess operates primarily in two areas — the Bakken shale and the Stabroek project offshore Guyana. It is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. HES currently has a Growth Score of B.
The Zacks Consensus Estimate for 2024 and 2025 EPS is pegged at $9.17 and $11.08, respectively. The company has witnessed upward earnings estimate revisions for 2024 in the past seven days.
EOG Resources, an oil and gas exploration company, boasts attractive growth prospects, top-tier returns, and a disciplined management team, leveraging highly productive acreages in prime oil shale plays like the Permian and Eagle Ford.
The Zacks Consensus Estimate for EOG’s 2024 EPS is pegged at $12.14. The company has a Zacks Style Score of B for Value and A for Momentum. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
Valero Energy is a premier refining player with its presence across North America and the Caribbean. Its diverse network favors robust refining margins, utilizing cost-effective crude for more than half of its needs.
The Zacks Consensus Estimate for VLO’s 2024 EPS is pegged at $18.02. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2025 in the past 30 days.