Cenovus Energy CVE-T +0.68%increase posted a rise in third-quarter profit on Friday, driven by record oil sands production and near-full refinery utilization that helped offset weaker crude prices.
U.S.-listed shares of the Canadian oil and gas producer rose 1.5 per cent in premarket trading.
The Calgary-based producer’s results come as it pursues a major expansion through its planned $8.6-billion acquisition of MEG Energy MEG-T +0.37%increase.
A MEG shareholder vote on the deal was postponed this week to allow for additional regulatory disclosures.
Cenovus produced a record 832,900 barrels of oil equivalent per day (boepd) in the quarter, up from 771,300 boepd a year earlier, led by higher volumes at its Foster Creek and Christina Lake projects.
Refining throughput also hit a record 710,700 barrels per day (bpd), up from last year’s 642,900 bpd, with U.S. plants running at 99 per cent utilization and per-barrel costs down 24 per cent from a year earlier.
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CEO Jon McKenzie said Cenovus delivered record volumes across the business with major growth projects near completion.
Drilling at the company’s West White Rose offshore project is due to start by the end of the year, with first oil expected in 2026.
The results also come against the backdrop of volatile oil markets, with the benchmark Brent crude averaging about US$68 a barrel in the July–September quarter, down more than 13 per cent from a year earlier, as OPEC+ output hikes and slowing global demand pressured prices.
Cenovus trimmed its 2025 U.S. downstream throughput forecast to between 510,000 and 515,000 bpd, about 52,500 barrels lower at the midpoint, as it closed the sale of its 50-per-cent interest in WRB Refining LP and received proceeds of $1.8-billion.
Cenovus said net income rose to $1.29-billion, or 72 cents per share, in the three months ended Sept. 30, from $820-million, or 42 cents per share, a year earlier.
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