Back to top

Image: Bigstock

Cenovus Energy (CVE) Invests $1.5B in Ohio Refineries' Growth

Read MoreHide Full Article

Cenovus Energy Inc. (CVE - Free Report) , a major player in the energy sector, has unveiled ambitious plans to invest more than $1.5 billion in its Toledo and Lima refineries in Ohio over the next five years. This significant investment aims to bolster the capacity and capabilities of these refineries, solidifying its position as a crucial fuel supplier to the U.S. Midwest and Great Lakes regions.

The Toledo refinery, with a processing capacity of up to 160,000 barrels per day, and the Lima plant, with a refining capacity of 183,000 barrels per day, are pivotal assets in Cenovus Energy's portfolio. These facilities play a crucial role in meeting the energy demands of the surrounding areas.

Ohio has been identified by Cenovus Energy as a strategically important location for its operations, citing its strategic location as a key factor in the decision to expand. With approximately 1,200 employees already in Ohio, Cenovus Energy is the largest oil refiner in the state.

In addition to the investment in refinery infrastructure, Cenovus Energy plans to enhance its presence in the state by expanding its U.S. headquarters in Dublin. This expansion is expected to create up to 115 new jobs, further contributing to the economic growth and development of the region.

The regional headquarters in Dublin serve as a hub for overseeing Cenovus Energy's commercial operations in the United States, as well as providing technical and professional services. The decision to expand the headquarters underscores the company's commitment to strengthening its foothold in the U.S. market and supporting local communities through job creation and economic investment.

Cenovus Energy's investment in Ohio reflects its confidence in the region's potential and its long-term commitment to sustainable growth and development. The expansion of the refineries’ capacity and the establishment of a larger regional headquarter are poised to bring tangible benefits to both the company and the local economy, positioning Ohio as a key player in the energy landscape for years to come.

Zacks Rank & Key Picks

CVE currently carries a Zack Rank #3 (Hold).

Some better-ranked stocks in the energy sector are Murphy USA Inc. (MUSA - Free Report) , Global Partners (GLP - Free Report) and Sunoco LP (SUN - Free Report) . While Murphy USA and Global Partners sport a Zacks Rank #1 (Strong Buy) each, Sunoco LP carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

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 $26.35. 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 seven days.

Global Partners is a leading operator of gasoline stations and convenience stores. Over the past 60 days, GLP has witnessed upward earnings estimate revisions for 2023 and 2024.

The Zacks Consensus Estimate for Global Partners’ 2024 and 2025 EPS is pegged at $3.90 and $4.47, respectively. GLP currently has a Zacks Style Score of A for Value.

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 $4.96. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Sunoco LP (SUN) - free report >>

Cenovus Energy Inc (CVE) - free report >>

Murphy USA Inc. (MUSA) - free report >>

Global Partners LP (GLP) - free report >>

Published in