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Cenovus Energy (CVE) Maps Out an Ambitious 5-Year Expansion Plan
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Cenovus Energy Inc. (CVE - Free Report) unveiled plans on Tuesday to ramp up its energy production by an impressive 19% over the next five years. This ambitious move comes in tandem with the expansion of Canada's pipeline capacity, signaling a pivotal shift in the country's oil landscape.
On Cenovus Energy's annual investor day in Toronto, Drew Zieglgansberger, the company’s chief commercial officer, underscored the importance of the expansion. He emphasized that it signifies a fresh avenue into global markets, highlighting the possibility of enhanced market access and improved competitiveness.
The company outlined its ambitious roadmap to boost production to 950,000 barrels of oil equivalent per day (boe/day), leveraging the expansion of Canada's pipeline capacity. The planned production surge involves a substantial increase of 150,000 boe/day during the specified period. This potential growth includes (anticipated) additions of 30,000 bbl/day from Foster Creek, 20,000-30,000 bbl/day from Narrows Lake, 15,000-20,000 bbl/day from Sunrise, and 45,000 bbl/day from West White Rose.
CVE envisions a notable rise in oil sands production, targeting 700,000 bbl/day by 2028, signifying a remarkable 75,000 bbl/day increase over the next five years. Simultaneously, the company aims to enhance operational efficiency, projecting a reduction in oil sands operating costs from the current $12.50 per bbl to $11.50. Highlighting its commitment to shareholders, Cenovus Energy is on the verge of returning 100% of free cash flow to investors. Additionally, the company anticipates achieving its debt reduction target of C$4 billion this year, underlining its financial discipline and stability.
Zacks Rank & Key Picks
CVE currently carries a Zack Rank #5 (Strong Sell).
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow.
The Zacks Consensus Estimate for SUN’s 2024 EPS is pegged at $4.89. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Murphy USA is a leading independent retailer of motor fuel and convenience merchandise in the United States.
The Zacks Consensus Estimate for MUSA’s 2024 EPS is pegged at $25.58. The company has a Zacks Style Score of B for Growth and B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Energy Transfer is a publicly traded limited partnership, focused on diverse energy assets in the United States. The company’s 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 $1.44. The company has witnessed upward earnings estimate revisions for 2024 in the past 30 days. ET’s 2024 earnings are expected to rise 32.1% year over year.
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Cenovus Energy (CVE) Maps Out an Ambitious 5-Year Expansion Plan
Cenovus Energy Inc. (CVE - Free Report) unveiled plans on Tuesday to ramp up its energy production by an impressive 19% over the next five years. This ambitious move comes in tandem with the expansion of Canada's pipeline capacity, signaling a pivotal shift in the country's oil landscape.
On Cenovus Energy's annual investor day in Toronto, Drew Zieglgansberger, the company’s chief commercial officer, underscored the importance of the expansion. He emphasized that it signifies a fresh avenue into global markets, highlighting the possibility of enhanced market access and improved competitiveness.
The company outlined its ambitious roadmap to boost production to 950,000 barrels of oil equivalent per day (boe/day), leveraging the expansion of Canada's pipeline capacity. The planned production surge involves a substantial increase of 150,000 boe/day during the specified period. This potential growth includes (anticipated) additions of 30,000 bbl/day from Foster Creek, 20,000-30,000 bbl/day from Narrows Lake, 15,000-20,000 bbl/day from Sunrise, and 45,000 bbl/day from West White Rose.
CVE envisions a notable rise in oil sands production, targeting 700,000 bbl/day by 2028, signifying a remarkable 75,000 bbl/day increase over the next five years. Simultaneously, the company aims to enhance operational efficiency, projecting a reduction in oil sands operating costs from the current $12.50 per bbl to $11.50. Highlighting its commitment to shareholders, Cenovus Energy is on the verge of returning 100% of free cash flow to investors. Additionally, the company anticipates achieving its debt reduction target of C$4 billion this year, underlining its financial discipline and stability.
Zacks Rank & Key Picks
CVE currently carries a Zack Rank #5 (Strong Sell).
Some better-ranked stocks in the energy sector are Sunoco LP (SUN - Free Report) , Murphy USA Inc. (MUSA - Free Report) and Energy Transfer LP (ET - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow.
The Zacks Consensus Estimate for SUN’s 2024 EPS is pegged at $4.89. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Murphy USA is a leading independent retailer of motor fuel and convenience merchandise in the United States.
The Zacks Consensus Estimate for MUSA’s 2024 EPS is pegged at $25.58. The company has a Zacks Style Score of B for Growth and B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Energy Transfer is a publicly traded limited partnership, focused on diverse energy assets in the United States. The company’s 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 $1.44. The company has witnessed upward earnings estimate revisions for 2024 in the past 30 days. ET’s 2024 earnings are expected to rise 32.1% year over year.