Cenovus Energy provides corporate update

CALGARY, Alberta, April 02, 2020 (GLOBE NEWSWIRE) -- Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) is implementing additional measures to enhance its financial resilience in response to the low global oil price environment that is expected to continue for an unknown period. The company’s financial framework and flexible business plan provide it with multiple options to prudently manage its balance sheet. Cenovus has decided to reduce its planned 2020 capital spending by an additional $150 million which, combined with the $450 million reduction announced March 9, 2020, is a $600 million decrease from the budget released in December. The company is also forecasting operating cost reductions of about $100 million and general and administrative (G&A) cost reductions of about $50 million compared with the initial December budget. In addition, Cenovus is temporarily suspending its dividend.

“We are taking proactive steps to address the current business environment while continuing to focus on the safety of our people and assets and maintaining reliable performance at our operations,” said Alex Pourbaix, Cenovus President & Chief Executive Officer. “It is challenging to predict the duration and depth of these unprecedented low commodity prices. We have positioned the company with ample liquidity and a strong balance sheet to manage through this unpredictable global downturn.”

Revised 2020 budget forecast
		April 2, 2020 budget update	March 9, 2020 budget update	December 10, 2019 budget	% change vs. December1
Total capital expenditures ($ billions)		0.75 – 0.85	0.9 – 1.0	1.3 – 1.5	-43
General & administrative expenses ($ millions)		230 – 250		280 – 300	-17
Total oil sands production (Mbbls/d)			350 – 400	390 – 410	-6
Total Deep Basin production (MBOE/d)				82 – 86	--
Total production (MBOE/d)			432 – 486	472 – 496	-5

¹ Based on the midpoint of the ranges.