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Will Rising LNG Demand Boost CVE's Conventional & Offshore Segments?
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Key Takeaways
CVE derives roughly 95% of its conventional and 75% of its offshore production from natural gas and NGLs.
Assets across Montney, Kakwa, Wapiti and the Asia-Pacific region provide a diversified, gas-focused platform.
Rising LNG exports are expected to lift gas demand and improve revenue potential across CVE's gas-rich assets.
Cenovus Energy Inc. (CVE - Free Report) operates a diversified portfolio that includes oil sands, conventional oil and gas assets, offshore operations and refining facilities across Canada and the United States. While Cenovus is widely recognized for its oil production, its Conventional and Offshore segments maintain significant exposure to natural gas and natural gas liquids (NGLs) demand. With natural gas and NGLs accounting for roughly 95% of conventional and 75% of offshore production in the first quarter of 2026, CVE is well-positioned to benefit from the growing global demand for liquefied natural gas (LNG).
Cenovus' extensive resource base strengthens its ability to capitalize on this trend. Key assets such as the Elmworth gas plant, interests in the Kakwa and Wapiti areas, the Northern Corridor and the company’s vast Montney acreage provide access to some of Canada's most productive natural gas regions. Combined with the Rainbow Lake complex and offshore assets in the Asia-Pacific region, CVE’s operations provide a diversified and scalable production platform.
According to the U.S. Energy Information Administration (“EIA”), U.S. LNG exports are expected to increase from 15.1 billion cubic feet per day (Bcf/d) in 2025 to 18.6 Bcf/d in 2027. Growing LNG exports are expected to support stronger natural gas demand, enhancing the value of Cenovus' gas-rich assets. Higher gas demand is likely to increase NGL realizations, unlocking revenue growth across offshore and conventional operations.
EQT & VG to Gain From Growing LNG Demand
Growing LNG demand is set to benefit energy companies like EQT Corporation (EQT - Free Report) ,a producer ofnatural gasand Venture Global (VG - Free Report) , a producer and exporter of LNG.
A strong footprint in the Marcellus Shale positions EQT to benefit from rising natural gas demand, driven by increasing LNG exports and data center expansion. To capture this momentum, EQT plans to invest $580–$640 million in high-return infrastructure projects in 2026. Backed by a vast, low-risk drilling inventory spanning more than 30 years, EQT is strategically positioned to supply the world's evolving long-term energy needs.
Louisiana-based Venture Global delivers low-cost LNG to global markets. The company is expanding its strategic infrastructure to achieve annual production capacity of 68 million tons. The low-cost operating model of VG strengthens its competitive advantage, anchoring its role as a premier supplier of global LNG.
CVE’s Price Performance, Valuation & Estimates
Cenovus shares have gained 80.8% over the past year compared with 53.4% growth of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, CVE trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 6.31X. This is below the broader industry average of 6.59X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CVE's 2026 earnings has remained constant over the past seven days.
View the Zacks #1 Rank List
Image: Bigstock
Will Rising LNG Demand Boost CVE's Conventional & Offshore Segments?
Key Takeaways
Cenovus Energy Inc. (CVE - Free Report) operates a diversified portfolio that includes oil sands, conventional oil and gas assets, offshore operations and refining facilities across Canada and the United States. While Cenovus is widely recognized for its oil production, its Conventional and Offshore segments maintain significant exposure to natural gas and natural gas liquids (NGLs) demand. With natural gas and NGLs accounting for roughly 95% of conventional and 75% of offshore production in the first quarter of 2026, CVE is well-positioned to benefit from the growing global demand for liquefied natural gas (LNG).
Cenovus' extensive resource base strengthens its ability to capitalize on this trend. Key assets such as the Elmworth gas plant, interests in the Kakwa and Wapiti areas, the Northern Corridor and the company’s vast Montney acreage provide access to some of Canada's most productive natural gas regions. Combined with the Rainbow Lake complex and offshore assets in the Asia-Pacific region, CVE’s operations provide a diversified and scalable production platform.
According to the U.S. Energy Information Administration (“EIA”), U.S. LNG exports are expected to increase from 15.1 billion cubic feet per day (Bcf/d) in 2025 to 18.6 Bcf/d in 2027. Growing LNG exports are expected to support stronger natural gas demand, enhancing the value of Cenovus' gas-rich assets. Higher gas demand is likely to increase NGL realizations, unlocking revenue growth across offshore and conventional operations.
EQT & VG to Gain From Growing LNG Demand
Growing LNG demand is set to benefit energy companies like EQT Corporation (EQT - Free Report) ,a producer ofnatural gasand Venture Global (VG - Free Report) , a producer and exporter of LNG.
A strong footprint in the Marcellus Shale positions EQT to benefit from rising natural gas demand, driven by increasing LNG exports and data center expansion. To capture this momentum, EQT plans to invest $580–$640 million in high-return infrastructure projects in 2026. Backed by a vast, low-risk drilling inventory spanning more than 30 years, EQT is strategically positioned to supply the world's evolving long-term energy needs.
Louisiana-based Venture Global delivers low-cost LNG to global markets. The company is expanding its strategic infrastructure to achieve annual production capacity of 68 million tons. The low-cost operating model of VG strengthens its competitive advantage, anchoring its role as a premier supplier of global LNG.
CVE’s Price Performance, Valuation & Estimates
Cenovus shares have gained 80.8% over the past year compared with 53.4% growth of the industry.
From a valuation standpoint, CVE trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 6.31X. This is below the broader industry average of 6.59X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CVE's 2026 earnings has remained constant over the past seven days.
Image Source: Zacks Investment Research
CVE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.