Canada's Cenovus Energy Q2 revenue, profit rise on higher oil prices

Overview

• Canada oil and gas producer's Q2 revenue rose 40% yr/yr to C$17.4 bln

• Net earnings for Q2 more than tripled from a year ago

• Company returned C$1.4 bln to shareholders via buybacks and dividends in Q2

Outlook

• Cenovus raises 2026 upstream production guidance to 970-1,010 MBOE/d

• Company lowers 2026 Oil Sands operating cost guidance to C$10.75-C$11.75 per BOE

• Canadian Refining throughput guidance raised to 110-115 Mbbls/d for 2026

Result Drivers

• HIGHER OIL PRICES - Co said higher benchmark oil prices contributed to increased upstream operating margin

• RECORD OIL SANDS OUTPUT - Record oil sands production, including at Christina Lake and Sunrise, supported overall results

• COST DISCIPLINE - Co cited strong cost discipline and optimization of turnaround activity as factors in margin and cost improvements

Company press release: ID:nGNX8xkyx4

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for Cenovus Energy Incorporation is C$46.00, about 17.8% above its July 28 closing price of C$39.06

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

• July 28 - Canada's Tamarack Valley Q2 revenue rises on higher oil prices

• July 28 - Canada's Cardinal Energy Q2 adjusted funds flow jumps 150% on higher output

• July 27 - Baker Hughes flags lower spending by oil and gas producers in 2026

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)