Canada's Cenovus Energy beats Q1 EPS estimates, raises dividend

Overview

• Canada oil and gas producer's Q1 revenue rose sequentially

• EPS for Q1 beat analyst expectations

• Company raised quarterly dividend by 10% to C$0.22 per share

Outlook

• Cenovus expects first oil from West White Rose project in Q3 2026

• Production from Christina Lake North redevelopment to ramp up in H2 2026

• Company anticipates planned maintenance will impact Q2 and Q3 2026 production and throughput

Result Drivers

• RECORD UPSTREAM PRODUCTION - Co said highest ever upstream production was driven by increased output at Christina Lake, Foster Creek and Offshore segments, including contribution from MEG Energy acquisition

• HIGHER OIL AND REFINED PRODUCT PRICES - Co said increases in benchmark crude oil prices and refined product pricing lifted upstream and downstream operating margins

• STRONG DOWNSTREAM PERFORMANCE - Downstream results benefited from a 97% utilization rate and strong U.S. refining market capture, including a C$457 mln inventory holding gain

Company press release: ID:nGNX1zPGrz

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for Cenovus Energy Incorporation is C$41.00, about 1.2% below its May 5 closing price of C$41.51

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 20 three months ago

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