Cenovus's Diversified & Resilient Business Model slide image

Cenovus's Diversified & Resilient Business Model

expected refining and upgrading capacity and production and throughput; capital investments; optionality for ex- Alberta egress; value optimization and marketing; realizing the full value of our integrated business; supporting long- term value for Cenovus; safety performance; downstream reliability and profitability; cost leadership; advocating for our company and industry; executing major projects such as West White Rose, SeaRose ALE, Narrows Lake tie- back at Christina Lake, and Foster Creek Optimization on time and on budget; delivering first oil from the West White Rose project in 2026; achieving peak production at West White Rose in 2028; being best in class operators; meeting targets for our five ESG focus areas; anticipated incremental heavy oil uplift; reserve life; margin uplift; heavy oil discounts; additional LNG egress; internal rate of return on investments; sustaining capital efficiency in Oil Sands and at Sunrise; enhancing margins; improvement of Lloydminster Thermals and Sunrise SOR; annual value created through technology initiatives; drilling of exploration wells; optionality to reduce costs and accelerate development from short-cycle assets; improvement of cost structure; conventional production growth; gas weighted growth of ~25,000 BOE/d by 2028; operating costs per barrel of production; increased reliability and profitability over the next five years; improved utilization rates; the full availability of capacity at U.S. refineries to capture more margin; the impact of turnaround activity on utilization rates; costs savings and margin enhancements; maximizing long term profitability of our assets; our 2024 capital investment budget; returning incremental value to shareholders through share buybacks and/or variable dividends in accordance with the capital allocation framework; safety performance; sustainability and sustainability leadership; targets for ESG focus areas including climate & GHG emissions, water stewardship, biodiversity, indigenous reconciliation and inclusion and diversity; reduction of scope 1 & 2 GHG absolute emissions; near, medium and long-term emission reductions targets and methane reduction targets; the Pathways Alliance foundational project; government support and incentives in emissions reductions projects such as the Pathways CO2 pipeline and hub and small modular nuclear reactors for oil sands; timing with respect to the regulatory filings for Cenovus's carbon capture and storage project; resiliency; reduction of Net Debt; maintaining credit ratings; investment in projects that generate returns at bottom-cycle; diversification of revenues; optimize value through pipelines, logistics and marketing; enhanced cash flow through projects in heavy oil; low risk maturity profile; improving business resilience through increasing scale and controlling costs and operating costs per barrel; optimization of the business through the five-year plan, including cumulative capital investments, reducing operating, sustaining capital and general and administrative costs and growing dividend capacity. Developing forward-looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to Cenovus and others that apply to the industry generally. The factors or assumptions on which the forward-looking information is based include, but are not limited to: forecast bitumen, crude oil and natural gas, natural gas liquids, condensate and refined products prices, light heavy crude oil price differentials; Cenovus's ability to realize the anticipated benefits and anticipated cost synergies of acquisitions; the accuracy of any assessments undertaken in connection with acquisitions; forecast production and crude throughput volumes and timing thereof; projected capital investment levels, the flexibility of capital spending plans and associated sources of funding; the absence of significant adverse changes to government policies, legislation and regulations (including related to climate change), Indigenous relations, interest rates, inflation, foreign exchange rates, competitive conditions and the supply and demand for bitumen, crude oil and natural gas, natural gas liquids, condensate and refined products; the political, economic and social stability of jurisdictions in which Cenovus operates; sustainable reductions in costs structure that will enhance margins; efficient turnaround activity, which will impact utilization rates; the absence of significant disruption of operations, including as a result of harsh weather, natural disaster, accident, civil unrest or other similar events; the prevailing climatic conditions in Cenovus's operating locations; achievement of further cost reductions and sustainability thereof; applicable royalty regimes, including expected royalty rates; future improvements in availability of product transportation capacity; increase to Cenovus's share price and market capitalization over the long-term; opportunities to purchase shares for cancellation at prices acceptable to Cenovus; the sufficiency of cash balances, internally generated cash flows, existing credit facilities, management of Cenovus's asset portfolio and access to capital and insurance coverage to pursue and fund future investments, sustainability and development plans and dividends, including any increase thereto; production from Cenovus's Conventional segment providing an economic hedge for the natural gas required as a fuel source at both Cenovus's oil sands and refining operations; realization of expected capacity to store within Cenovus's oil sands reservoirs barrels not yet produced, including that Cenovus will be able to time production and sales of our inventory at later dates when demand has increased, pipeline and/or storage capacity has improved and future crude oil differentials have narrowed; the WTI-WCS differential in Alberta remains largely tied to global supply
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