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Cenovus (CVE) Declines 3.1% Since Q1 Earnings Miss Estimates
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Cenovus Energy Inc. (CVE - Free Report) stock has declined 3.1% since it reported lower-than-expected earnings for first-quarter 2021 on May 7.
The integrated energy firmreported first-quarter 2021 earnings per share of 8 cents, missing the Zacks Consensus Estimate of earnings of 12 cents. This was owing to severe winter in parts of the United States along with planned and unplanned maintenance activities.
However, the bottom line compared favorably with the year-ago quarter loss of 72 cents per share, thanks to higher daily oil sand production.
Revenues of $7,520 million increased from the year-ago $2,994 million.
Cenovus Energy Inc Price, Consensus and EPS Surprise
Quarterly operating margin from the Oil Sands unit was reported at C$1,141 million, improving from the year-ago quarter loss of C$272 million. Higher daily oil sand production primarily aided the segment.
In the March quarter, the company recorded daily oil sand production of 553,396 barrels, up 43% year over year on contributions from its Lloydminster thermal operations.
Operating margin at the Conventional unit was C$210 million, up from C$51 million in the year-ago quarter. In the March quarter, the company recorded daily liquids production of 36,855 barrels, up 24% year over year.
The Offshore segment generated operating margin of C$344 million. In the March quarter, the company recorded daily offshore liquid production of 29,839 barrels.
Downstream
From the Canadian Manufacturing unit, the company reported operating margin of C$82 million, up from C$16 million in the year-ago quarter. The company recorded Crude Oil processed volumes at 106.2 thousand barrels per day (MBbl/D).
Operating margin from the U.S. Manufacturing unit was reported at C$91 million, compared with a loss of C$384 million in the prior-year quarter. The outperformance was owing to higher crude oil processed volumes. Crude oil processed volumes was recorded at 362.9 MBbl/D, signifying an improvement from 221.1 MBbl/D in the year-ago quarter.
From the Retail unit, the company reported operating margin of C$11 million.
Expenses
Transportation and blending expenses in the reported quarter contracted to C$1,785 million from C$1,912 million a year ago. However, expenses for purchased products rose to C$4,094 million from C$2,058 million in the prior-year quarter.
Capital Investment & Balance Sheet
The company made total capital investment of C$547 million in the quarter under review.
As of Mar 31, 2021, the Canadian energy player had cash and cash equivalents of C$873 million. Total long-term debt was C$13,947 million. Its total debt to capitalization was 37.6%.
Guidance
The integrated firm reaffirmed its total capital expenditure guidance for 2021 at the band of $2.3 billion to $2.7 billion.
Zacks Rank & Stocks to Consider
Cenovus currently carries a Zacks Rank #5 (Strong Sell). Meanwhile, a few better-ranked players in the energy space include Whiting Petroleum Corporation , Continental Resources, Inc. and Matador Resources Company (MTDR - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
Continental is expected to witness earnings growth of 256% in 2021.
Matador is likely to see earnings growth of 300% in 2021.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Cenovus (CVE) Declines 3.1% Since Q1 Earnings Miss Estimates
Cenovus Energy Inc. (CVE - Free Report) stock has declined 3.1% since it reported lower-than-expected earnings for first-quarter 2021 on May 7.
The integrated energy firmreported first-quarter 2021 earnings per share of 8 cents, missing the Zacks Consensus Estimate of earnings of 12 cents. This was owing to severe winter in parts of the United States along with planned and unplanned maintenance activities.
However, the bottom line compared favorably with the year-ago quarter loss of 72 cents per share, thanks to higher daily oil sand production.
Revenues of $7,520 million increased from the year-ago $2,994 million.
Cenovus Energy Inc Price, Consensus and EPS Surprise
Cenovus Energy Inc price-consensus-eps-surprise-chart | Cenovus Energy Inc Quote
Operational Performance
Upstream
Quarterly operating margin from the Oil Sands unit was reported at C$1,141 million, improving from the year-ago quarter loss of C$272 million. Higher daily oil sand production primarily aided the segment.
In the March quarter, the company recorded daily oil sand production of 553,396 barrels, up 43% year over year on contributions from its Lloydminster thermal operations.
Operating margin at the Conventional unit was C$210 million, up from C$51 million in the year-ago quarter. In the March quarter, the company recorded daily liquids production of 36,855 barrels, up 24% year over year.
The Offshore segment generated operating margin of C$344 million. In the March quarter, the company recorded daily offshore liquid production of 29,839 barrels.
Downstream
From the Canadian Manufacturing unit, the company reported operating margin of C$82 million, up from C$16 million in the year-ago quarter. The company recorded Crude Oil processed volumes at 106.2 thousand barrels per day (MBbl/D).
Operating margin from the U.S. Manufacturing unit was reported at C$91 million, compared with a loss of C$384 million in the prior-year quarter. The outperformance was owing to higher crude oil processed volumes. Crude oil processed volumes was recorded at 362.9 MBbl/D, signifying an improvement from 221.1 MBbl/D in the year-ago quarter.
From the Retail unit, the company reported operating margin of C$11 million.
Expenses
Transportation and blending expenses in the reported quarter contracted to C$1,785 million from C$1,912 million a year ago. However, expenses for purchased products rose to C$4,094 million from C$2,058 million in the prior-year quarter.
Capital Investment & Balance Sheet
The company made total capital investment of C$547 million in the quarter under review.
As of Mar 31, 2021, the Canadian energy player had cash and cash equivalents of C$873 million. Total long-term debt was C$13,947 million. Its total debt to capitalization was 37.6%.
Guidance
The integrated firm reaffirmed its total capital expenditure guidance for 2021 at the band of $2.3 billion to $2.7 billion.
Zacks Rank & Stocks to Consider
Cenovus currently carries a Zacks Rank #5 (Strong Sell). Meanwhile, a few better-ranked players in the energy space include Whiting Petroleum Corporation , Continental Resources, Inc. and Matador Resources Company (MTDR - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
Continental is expected to witness earnings growth of 256% in 2021.
Matador is likely to see earnings growth of 300% in 2021.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>