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Market: TSX
Sector: Oil & Gas Exploration & Production
EPIC: CVE
Latest Price: 31.56  (-0.25% Descending)
52-week High: 39.31
52-week Low: 30.15
Market Cap: 23,812.40M
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Cenovus Energy
www.cenovus.com

Cenovus Energy Inc. is an integrated oil company. The Company’s operations include enhanced oil recovery (EOR) properties and established crude oil and natural gas production in Alberta and Saskatchewan. It also has ownership interests in two refineries in Illinois and Texas, United States.

Full Cenovus Energy profile here
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Cenovus to increase 2012 capital spending by 23% as oil production grows

7th Dec 2011, 9:15 am by Joyanta Acharjee
Cenovus to increase 2012 capital spending by 23% as oil production grows

Canadian oil company Cenovus Energy (TSE:CVE)(NYSE:CVE) said Wednesday that it will boost spending by 23 percent next year as it plans to invest heavily in its oil assets, with 2012 oil production expected to grow 21 percent.

Cenovus, which operates Alberta's Foster Creek and Christina Lake oil sands developments, expects a 2012 capital budget of between $3.1 to $3.4 billion. In 2012, the company sees cash flow in the range of $2.9 to $3.5 billion.

Cenovus president and CEO, Brian Ferguson, said: "Our strong financial position enables us to meet current commitments while investing in long-term projects and planning to grow our dividend."

Cenovus expects oil production to average about 163,000 barrels per day net in 2012, an increase of 21 percent compared with expected 2011 production. The growth is anticipated to come largely from the Christina Lake project.

Cenovus president and CEO Brian Ferguson said: "Our expected oil production growth for next year places us well on the way to achieving the target of 500,000 barrels per day of net oil production by the end of 2021."

Christina Lake oil production is expected to average between 26,000 and 29,000 barrels per day net in 2012, more than double the average 2011 production. Pelican Lake is also expecting higher oil volumes in 2012 due to its increased infill drilling, and the expansion of a polymer-enhanced oil recovery program, the company said.

Other conventional oil production is also expected to increase by about 17 percent compared with 2011, largely as a result of development of the company’s tight oil assets in southern Saskatchewan.

Cenovus has been increasing its capital plans in recent months.

In October, the company increased its 2011 budget to a combined $865 to $885 million as it expanded its oilsands operations at Foster Creek and Christina Lake.

In the same month, Cenovus posted a 73 percent gain in third-quarter earnings on stronger production volumes from its oil sands operations and higher crude prices.

For the three months that ended September 30, Cenovus posted net income of $510 million, or $0.67 per share, up from $295 million, or $0.39 per share, a year earlier.

Analysts polled by Bloomberg Businessweek had expected earnings of 53 cents per share.

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