We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cenovus Energy Q4 Earnings Top Estimates on Higher Upstream Production
Read MoreHide Full Article
Key Takeaways
Cenovus Energy Q4 EPS beat estimates as upstream output rose to 917.9 Mboe/d.
Oil sands production climbed 15.6% YoY, lifting overall operating performance.
CVE guides 2026 upstream output at 945-985 Mboe/d with up to $5.3B in capex.
Cenovus Energy Inc. (CVE - Free Report) reported fourth-quarter 2025 adjusted earnings per share of 36 cents, which beat the Zacks Consensus Estimate of 28 cents. The bottom line increased from the year-ago quarter’s figure of 5 cents.
Total quarterly revenues of $7.8 billion missed the Zacks Consensus Estimate of $9.7 billion. The top line declined from the year-ago quarter’s level of $8.4 billion.
Strong quarterly earnings were primarily driven by increased total upstream production, led by higher oil sands production. A rise in transportation and blending expenses and a relatively weaker crack environment partially offset the positives.
Cenovus Energy Inc Price, Consensus and EPS Surprise
The quarterly operating margin from the Oil Sands unit totaled C$2.23 billion, down from C$2.34 billion reported a year ago. In the fourth quarter, the company recorded daily oil sands production of 724.3 thousand barrels (Mbbls/d), an increase of 15.6% year over year.
The operating margin at the Conventional unit totaled C$159 million, reflecting a significant increase from C$88 million recorded in the year-ago quarter. The company’s daily conventional production was 26.2 thousand barrels compared with 24.5 thousand barrels a year ago.
The total conventional natural gas production was 860.4 million cubic feet per day (MMcf/d), lower than the 873.3 MMcf/d recorded a year ago.
The Offshore segment generated an operating margin of C$244 million, up from C$242 million in the year-ago quarter. Cenovus recorded daily offshore liquid production of 24 thousand barrels, higher than the 19.5 thousand barrels recorded a year ago.
The total upstream production in the reported quarter was 917.9 thousand barrels of oil equivalent per day (Mboe/d) compared with 816 Mboe/d in the year-earlier quarter.
Downstream
The operating margin from the Canadian Refining unit was C$68 million, which improved from C$47 million in the fourth quarter of 2024. The segment recorded crude oil processed volumes of 112.9 thousand barrels per day (MBbl/D).
The operating margin from the U.S. Refining unit was C$81 million against a negative operating margin of C$443 million in the prior-year quarter. Crude oil processed volumes totaled 352.6 MBbl/D, higher than 562.3 MBbl/D in the year-ago quarter.
Expenses
Transportation and blending expenses increased to C$2.66 billion from C$2.61 billion recorded in the fourth quarter of 2024.
Expenses for purchased products decreased to C$4.1 billion from C$6.3 billion in the prior-year quarter.
Capital Investment & Balance Sheet
Cenovus made total capital investment of C$1.36 billion in the quarter under review.
As of Dec. 31, 2025, the Canada-based energy player had cash and cash equivalents of C$2.7 billion and a long-term debt of C$11 billion.
Guidance
Cenovus provided its full-year 2026 guidance for total upstream production in the band of 945-985 MBoe/d. Total U.S. downstream throughput guidance for 2026 has been updated to 430-450 MBbls/d. The company anticipates capital expenditure to be in the range of $5-$5.3 billion for the entire year.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability, and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its production prospects in the future, which is expected to enhance its revenues.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Cenovus Energy Q4 Earnings Top Estimates on Higher Upstream Production
Key Takeaways
Cenovus Energy Inc. (CVE - Free Report) reported fourth-quarter 2025 adjusted earnings per share of 36 cents, which beat the Zacks Consensus Estimate of 28 cents. The bottom line increased from the year-ago quarter’s figure of 5 cents.
Total quarterly revenues of $7.8 billion missed the Zacks Consensus Estimate of $9.7 billion. The top line declined from the year-ago quarter’s level of $8.4 billion.
Strong quarterly earnings were primarily driven by increased total upstream production, led by higher oil sands production. A rise in transportation and blending expenses and a relatively weaker crack environment partially offset the positives.
Cenovus Energy Inc Price, Consensus and EPS Surprise
Cenovus Energy Inc price-consensus-eps-surprise-chart | Cenovus Energy Inc Quote
Operational Performance
Upstream
The quarterly operating margin from the Oil Sands unit totaled C$2.23 billion, down from C$2.34 billion reported a year ago. In the fourth quarter, the company recorded daily oil sands production of 724.3 thousand barrels (Mbbls/d), an increase of 15.6% year over year.
The operating margin at the Conventional unit totaled C$159 million, reflecting a significant increase from C$88 million recorded in the year-ago quarter. The company’s daily conventional production was 26.2 thousand barrels compared with 24.5 thousand barrels a year ago.
The total conventional natural gas production was 860.4 million cubic feet per day (MMcf/d), lower than the 873.3 MMcf/d recorded a year ago.
The Offshore segment generated an operating margin of C$244 million, up from C$242 million in the year-ago quarter. Cenovus recorded daily offshore liquid production of 24 thousand barrels, higher than the 19.5 thousand barrels recorded a year ago.
The total upstream production in the reported quarter was 917.9 thousand barrels of oil equivalent per day (Mboe/d) compared with 816 Mboe/d in the year-earlier quarter.
Downstream
The operating margin from the Canadian Refining unit was C$68 million, which improved from C$47 million in the fourth quarter of 2024. The segment recorded crude oil processed volumes of 112.9 thousand barrels per day (MBbl/D).
The operating margin from the U.S. Refining unit was C$81 million against a negative operating margin of C$443 million in the prior-year quarter. Crude oil processed volumes totaled 352.6 MBbl/D, higher than 562.3 MBbl/D in the year-ago quarter.
Expenses
Transportation and blending expenses increased to C$2.66 billion from C$2.61 billion recorded in the fourth quarter of 2024.
Expenses for purchased products decreased to C$4.1 billion from C$6.3 billion in the prior-year quarter.
Capital Investment & Balance Sheet
Cenovus made total capital investment of C$1.36 billion in the quarter under review.
As of Dec. 31, 2025, the Canada-based energy player had cash and cash equivalents of C$2.7 billion and a long-term debt of C$11 billion.
Guidance
Cenovus provided its full-year 2026 guidance for total upstream production in the band of 945-985 MBoe/d. Total U.S. downstream throughput guidance for 2026 has been updated to 430-450 MBbls/d. The company anticipates capital expenditure to be in the range of $5-$5.3 billion for the entire year.
CVE’s Zacks Rank and Key Picks
CVE currently has a Zacks Rank #5 (Strong Sell).
Some top-ranked stocks from the energy sector are Archrock Inc. (AROC - Free Report) , Oceaneering International (OII - Free Report) and W&T Offshore (WTI - Free Report) . While Archrock sports a Zacks Rank #1 (Strong Buy), Oceaneering and W&T Offshore carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability, and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its production prospects in the future, which is expected to enhance its revenues.