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Cenovus sharply improved downstream margins and returned C$1B to shareholders in the quarter.
Cenovus Energy Inc. (CVE - Free Report) reported first-quarter 2026 adjusted earnings of 61 cents per share, which beat the Zacks Consensus Estimate of 56 cents by 8.9%. The bottom line increased from the year-ago quarter’s figure of 32 cents.
Total quarterly revenues of $9 billion missed the Zacks Consensus Estimate of $9.3 billion by 3.2%. The top line declined from the year-ago quarter’s level of $9.3 billion.
Strong quarterly earnings were primarily driven by higher total upstream production. A rise in general and administrative expenses, and net foreign exchange (gain) loss, partially offset the positives.
Cenovus Energy Inc Price, Consensus and EPS Surprise
Cenovus Sees Oil Sands Revenue Growth Despite Price Mix
Cenovus’ Oil Sands segment revenues increased to C$7.8 billion from C$7.0 billion in the year-ago quarter, driven by higher sales volumes. The operating margin from the Oil Sands unit totaled C$3.1 billion, up from C$2.54 billion reported a year ago.
Cenovus’ Conventional segment revenues increased to C$1.0 billion from C$924 million in the first quarter of 2025. The operating margin from the Conventional unit totaled C$211 million, reflecting a significant increase from C$173 million recorded in the year-ago quarter.
Cenovus’ Offshore segment revenues were C$524 million, higher than the C$426 million recorded in the prior year. The Offshore unit recorded an operating margin of C$402 million, up from C$331 million in the year-ago quarter.
CVE's Output Rises on Oil Sands
In the first quarter, the company recorded Oil Sands crude oil and natural gas liquids production of 772.6 thousand barrels per day (Mbbls/d), an increase from the year-ago quarter’s figure of 624.3 Mbbls/d. Oil Sands natural gas production was 14.4 million cubic feet per day (MMcf/d), higher than the 11.4 MMcf/d recorded a year ago. Oil Sands volumes rose 23.8% to 775.0 thousand barrels of oil equivalent per day (Mboe/d) from 626.2 Mboe/d in the year-ago quarter.
The company’s Conventional crude oil and natural gas liquids production was 28.9 Mbbls/d compared with 25.7 Mbbls/d a year ago. Conventional natural gas production was 852 MMcf/d, lower than the 887.9 MMcf/d recorded a year ago. Conventional volumes dipped 1.8% to 121.7 Mboe/d from 123.9 Mboe/d recorded in the first quarter of 2025.
The company’s Offshore crude oil and natural gas liquids production was 28.6 Mbbls/d compared with 20.9 Mbbls/d a year ago. Offshore natural gas production was 281.2 million cubic feet per day (MMcf/d), lower than the 287.2 MMcf/d recorded a year ago. Offshore production increased 9.6% to 75.4 Mboe/d from the year-ago figure of 68.8 Mboe/d.
The total upstream production in the reported quarter increased 18.7% to 972.1 (Mboe/d) compared with 818.9 Mboe/d in the year-earlier quarter.
Cenovus’ Canadian Refining segment revenues were C$1.4 billion, higher than the C$1.3 billion recorded in the prior year. The operating margin from the Canadian Refining unit was C$201 million, which improved from C$68 million in the first quarter of 2024.
The U.S. Refining segment recorded revenues of C$4.2 billion, lower than the prior-year figure of C$6.4 billion. The operating margin from the U.S. Refining unit was C$533 million against a negative operating margin of C$305 million in the prior-year quarter.
Total downstream revenues decreased to C$5.6 billion from C$7.7 billion a year ago, while operating margin rose to C$734 million from a negative C$237 million a year ago.
CVE's Downstream Resets After WRB Divestiture
Downstream operations reflected the impact of the WRB divestiture completed in late 2025. Total crude oil unit throughput fell 31.1% year over year to 458.5 Mbbls/d, driven by a 38.0% decline in U.S. Refining throughput to 343.2 Mbbls/d. Canadian Refining throughput increased 3.0% to 115.3 Mbbls/d, driven by strong utilization.
Expenses of CVE
General and administrative expenses increased to C$411 million from C$197 million recorded in the first quarter of 2025. CVE also recorded C$179 million of net foreign exchange (gain) loss.
Expenses for Purchased Product, Transportation and Blending costs decreased to C$6.6 billion from C$8.9 billion in the prior-year quarter.
CVE: Cash Flow & Balance Sheet
Cenovus generated cash from operating activities of C$2.2 billion, up from C$1.3 billion a year ago. Cenovus made a total capital investment of C$1.2 billion in the quarter under review.
As of March 31, 2026, the Canada-based energy player had cash and cash equivalents of C$2.6 billion. Long-term debt declined to C$10.6 billion as of March 31, 2026, from C$11 billion at the end of 2025.
CVE Steps Up Shareholder Returns
Cenovus returned C$1 billion to common and preferred shareholders in the reported quarter. This included C$377 million in common-share base dividends and C$356 million of common-share repurchases under its NCIB and C$300 million in preferred share redemptions.
The board declared a second-quarter base dividend of 22 cents (Canadian) per common share, up 10% from the prior quarterly base dividend level.
CVE’s Zacks Rank & Other Key Picks
CVE currently sports a Zacks Rank #1 (Strong Buy).
Chevronreported first-quarter 2026 adjusted earnings per share of $1.41, which beat the Zacks Consensus Estimate of 92 cents.
As of March 31, 2026, CVX reported $5.3 million in cash and cash equivalents. At the quarter's end, its total debt amounted to $45.4 billion.
BP reported first-quarter 2026 earnings of $1.24 per American Depositary Share, which beat the Zacks Consensus Estimate of 91 cents.
As of March 31, 2026, BP reported $35.7 million in cash and cash equivalents. At the quarter's end, its long-term debt totaled $25.3 billion.
Eni reported first-quarter 2026 adjusted earnings from continuing operations of 81 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of $1.13.
As of March 31, 2026, E had a long-term debt of €21.7 billion, and cash and cash equivalents of €8.3 billion.
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Cenovus Energy Q1 Earnings Top Estimates on Higher Upstream Production
Key Takeaways
Cenovus Energy Inc. (CVE - Free Report) reported first-quarter 2026 adjusted earnings of 61 cents per share, which beat the Zacks Consensus Estimate of 56 cents by 8.9%. The bottom line increased from the year-ago quarter’s figure of 32 cents.
Total quarterly revenues of $9 billion missed the Zacks Consensus Estimate of $9.3 billion by 3.2%. The top line declined from the year-ago quarter’s level of $9.3 billion.
Strong quarterly earnings were primarily driven by higher total upstream production. A rise in general and administrative expenses, and net foreign exchange (gain) loss, 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
Cenovus Sees Oil Sands Revenue Growth Despite Price Mix
Cenovus’ Oil Sands segment revenues increased to C$7.8 billion from C$7.0 billion in the year-ago quarter, driven by higher sales volumes. The operating margin from the Oil Sands unit totaled C$3.1 billion, up from C$2.54 billion reported a year ago.
Cenovus’ Conventional segment revenues increased to C$1.0 billion from C$924 million in the first quarter of 2025. The operating margin from the Conventional unit totaled C$211 million, reflecting a significant increase from C$173 million recorded in the year-ago quarter.
Cenovus’ Offshore segment revenues were C$524 million, higher than the C$426 million recorded in the prior year. The Offshore unit recorded an operating margin of C$402 million, up from C$331 million in the year-ago quarter.
CVE's Output Rises on Oil Sands
In the first quarter, the company recorded Oil Sands crude oil and natural gas liquids production of 772.6 thousand barrels per day (Mbbls/d), an increase from the year-ago quarter’s figure of 624.3 Mbbls/d. Oil Sands natural gas production was 14.4 million cubic feet per day (MMcf/d), higher than the 11.4 MMcf/d recorded a year ago. Oil Sands volumes rose 23.8% to 775.0 thousand barrels of oil equivalent per day (Mboe/d) from 626.2 Mboe/d in the year-ago quarter.
The company’s Conventional crude oil and natural gas liquids production was 28.9 Mbbls/d compared with 25.7 Mbbls/d a year ago. Conventional natural gas production was 852 MMcf/d, lower than the 887.9 MMcf/d recorded a year ago. Conventional volumes dipped 1.8% to 121.7 Mboe/d from 123.9 Mboe/d recorded in the first quarter of 2025.
The company’s Offshore crude oil and natural gas liquids production was 28.6 Mbbls/d compared with 20.9 Mbbls/d a year ago. Offshore natural gas production was 281.2 million cubic feet per day (MMcf/d), lower than the 287.2 MMcf/d recorded a year ago. Offshore production increased 9.6% to 75.4 Mboe/d from the year-ago figure of 68.8 Mboe/d.
The total upstream production in the reported quarter increased 18.7% to 972.1 (Mboe/d) compared with 818.9 Mboe/d in the year-earlier quarter.
Downstream
CVE’s Downstream Segment Profitability Improved Sharply
Cenovus’ Canadian Refining segment revenues were C$1.4 billion, higher than the C$1.3 billion recorded in the prior year. The operating margin from the Canadian Refining unit was C$201 million, which improved from C$68 million in the first quarter of 2024.
The U.S. Refining segment recorded revenues of C$4.2 billion, lower than the prior-year figure of C$6.4 billion. The operating margin from the U.S. Refining unit was C$533 million against a negative operating margin of C$305 million in the prior-year quarter.
Total downstream revenues decreased to C$5.6 billion from C$7.7 billion a year ago, while operating margin rose to C$734 million from a negative C$237 million a year ago.
CVE's Downstream Resets After WRB Divestiture
Downstream operations reflected the impact of the WRB divestiture completed in late 2025. Total crude oil unit throughput fell 31.1% year over year to 458.5 Mbbls/d, driven by a 38.0% decline in U.S. Refining throughput to 343.2 Mbbls/d. Canadian Refining throughput increased 3.0% to 115.3 Mbbls/d, driven by strong utilization.
Expenses of CVE
General and administrative expenses increased to C$411 million from C$197 million recorded in the first quarter of 2025. CVE also recorded C$179 million of net foreign exchange (gain) loss.
Expenses for Purchased Product, Transportation and Blending costs decreased to C$6.6 billion from C$8.9 billion in the prior-year quarter.
CVE: Cash Flow & Balance Sheet
Cenovus generated cash from operating activities of C$2.2 billion, up from C$1.3 billion a year ago. Cenovus made a total capital investment of C$1.2 billion in the quarter under review.
As of March 31, 2026, the Canada-based energy player had cash and cash equivalents of C$2.6 billion. Long-term debt declined to C$10.6 billion as of March 31, 2026, from C$11 billion at the end of 2025.
CVE Steps Up Shareholder Returns
Cenovus returned C$1 billion to common and preferred shareholders in the reported quarter. This included C$377 million in common-share base dividends and C$356 million of common-share repurchases under its NCIB and C$300 million in preferred share redemptions.
The board declared a second-quarter base dividend of 22 cents (Canadian) per common share, up 10% from the prior quarterly base dividend level.
CVE’s Zacks Rank & Other Key Picks
CVE currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the energy sector are Chevron Corporation (CVX - Free Report) , BP plc (BP - Free Report) and Eni S.p.A. (E - Free Report) . CVX, BP and E each currently sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chevronreported first-quarter 2026 adjusted earnings per share of $1.41, which beat the Zacks Consensus Estimate of 92 cents.
As of March 31, 2026, CVX reported $5.3 million in cash and cash equivalents. At the quarter's end, its total debt amounted to $45.4 billion.
BP reported first-quarter 2026 earnings of $1.24 per American Depositary Share, which beat the Zacks Consensus Estimate of 91 cents.
As of March 31, 2026, BP reported $35.7 million in cash and cash equivalents. At the quarter's end, its long-term debt totaled $25.3 billion.
Eni reported first-quarter 2026 adjusted earnings from continuing operations of 81 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of $1.13.
As of March 31, 2026, E had a long-term debt of €21.7 billion, and cash and cash equivalents of €8.3 billion.