Cenovus Energy Inc. Q1 FY2025 earnings call

• Safety: Recognized exceptional safety on West White Rose (27M hours, 0.18 total recordable incident frequency) and dropped object prevention program. - Upstream Projects: Narrows Lake 17 km tieback, Foster Creek turnaround 75% complete, Sunrise commencing second turnaround, West White Rose gravity structure ready to move. - Downstream Performance: Canadian Refining had record throughput/utilization 104%, U.S. Refining Toledo turnaround ongoing, non-operated refineries turnaround complete.

Upstream: Production was 819,000 BOE per day. Oil sands: Christina Lake had 238,000 bbl/day, Narrows Lake project with first oil expected Q3; Foster Creek had 203,000 bbl/day production, 75% through turnaround; Sunrise had avg 52,000 bbl/day. Offshore: Atlantic volumes higher, West White Rose project progressing. Operating margin upstream ~$3B, up ~$380M from Q4; oil sands non-fuel operating costs $8.92/bbl. Downstream: Canadian Refining operating margin $68M, up $21M; U.S. Refining had operating margin shortfall due to crack spreads and inventory losses. Adjusted funds flow ~$2.2B.

• Capital: $1.2B CapEx in Q1, expect CapEx to decrease from $5B to lower number in 2026, with West White Rose completion aiding lower spend. - Dividend: Board approved 11% base dividend increase to $0.80/share, supported in $45 WTI. - Production: Narrows Lake to be part of Christina Lake reporting, Foster Creek turnaround to add steam capacity and production.

• Market Volatility: Recent market volatility highlights importance of strategic priorities. - Turnaround Risks: Potential risks with ongoing turnarounds, majority de-risked by Q2. - Inventory/Crack Spreads: Impact on downstream margin due to low crack spreads and inventory losses.

Q: Can you dig into the scope of work at Toledo and objectives for stepwise improvement?

A: At Toledo, working on eight major vessels including small crude unit, focusing on improving asset reliability, expecting step change performance post-turnaround.

Q: How do you decide on moving barrels from Foster Creek or Christina Lake?

A: Decisions based on locational and grade differentials, resolving at Oil Sands level using market indicators like pipeline contracts.

Q: What's your confidence in 2026 CapEx estimate?

A: High confidence in CapEx decrease from $5B to lower number in 2026, driven by West White Rose completion.

Q: How is West White Rose project tracking?

A: Gravity structure to be towed out soon, dry ballasting at Arnold’s Cove, top sides prepared for installation, first oil expected Q2 2026.

Q: Can you talk about market capture in refining and buyback cadence?

A: Market capture adjusted for inventory effects, buyback flexible, value-focused with balance sheet strength allowing flexibility.

Q: About conventional business margin and growth appetite?

A: Gas pricing and pipeline space contribute to margin, focus on base business, growth projects, downstream competitiveness, and cost structure.

Q: Rationale for change in market capture definition?

A: Adjusted for inventory holding gains/losses (FIFO impact) to show underlying business performance, comparable to U.S. refiners' benchmarks.