Cenovus sets 2026 capital budget at $5.0-5.3 billion

Cenovus Energy Inc. (NYSE: CVE) announced its 2026 capital budget and corporate guidance, projecting capital investment between $5.0 billion and $5.3 billion, including approximately $350 million of capitalized turnaround costs.

The company expects upstream production of 945,000 to 985,000 barrels of oil equivalent per day, representing approximately 4% year-over-year growth when adjusted for the acquisition of MEG Energy Corp. Downstream crude throughput is projected at 430,000 to 450,000 barrels per day, representing a crude utilization rate of 91% to 95%.

Oil sands production guidance ranges from 755,000 to 780,000 barrels per day, which includes the impact of a turnaround at Christina Lake in the third quarter. The guidance incorporates production of approximately 8,000 barrels per day from Rush Lake, which is undergoing a phased ramp-up after receiving regulatory approval to restart facilities in late November.

General and administrative costs, excluding stock-based compensation, are expected to remain flat at $625 million to $675 million relative to 2025, with cost reductions and synergies offsetting the MEG acquisition impact. Integration, transaction and other costs of approximately $150 million to $200 million are anticipated for 2026.

The capital plan includes $3.5 billion to $3.6 billion for oil sands assets, with growth spending directed toward the Christina Lake North expansion project, continued development at Sunrise and the conventional heavy oil business, and evaluation of solvent enhanced oil recovery opportunities in the Lloydminster region.

First oil from the West White Rose field is expected in the second quarter of 2026, with production ramping up as additional wells are put into service. The company completed construction of the Foster Creek Optimization project ahead of schedule in late November.

Following the MEG acquisition, which closed November 13, 2025, Cenovus adjusted its shareholder returns framework to balance deleveraging with returns. While net debt exceeds $6.0 billion, the company will target returning approximately 50% of excess free funds flow to shareholders, with the remainder allocated to deleveraging.

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