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UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc.

Cenovus Energy Inc. · May 24, 2011 · 31 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 1
  2. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 2
    Oil & gas information & non-GAAP measures Oil & gas information The contingent resources estimates, effective December 31, 2010, and the discovered bitumen initially-in- place estimates, effective December 31, 2009, were prepared by…
  3. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 3
    Cenovus SAGD operating experience Mbbls/d 125 % 29 ) 10 100 0 06 (2 R AG rC 5y 75 50 25 0 98 99 00 01 02 03 04 05 06 07 08 09 10 F 11 19 19 20 20 20 20…
  4. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 4
    Milestones in building value Disclose 2010 reserves & contingent resources Q1 Execute strat well program Sanction Foster Creek phases F, G & H (received regulatory Q2 approval Sept. 2010) Receive results from 2011 strat & seismic…
  5. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 5
    Top quality reservoirs Low SOR means Steam-to-oil ratio (bbl/bbl) Lower capital cost 8 Lower operating cost Smaller surface 6 footprint Lower energy usage Lower emissions 4 Less water usage 2 0 Peer Peer Peer Peer Peer…
  6. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 6
    Foster Creek - leading the way 2011F - Foster Creek 51 - 54 Mbbls/d of production 375 - 425 MM of capital 2.1 2.3 SOR 11.10 11.85/bbl operating cost F, G & H construction ramp up Q1 Execute strat well program 110 gross wells…
  7. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 7
    Operational excellence - Foster Creek Record production Turnaround Mbbls/d 119.7 Mbbls/d Mar. 5, 2011 120 100 80 60 40 20 0 1-Apr-10 1-Jul-10 1-Oct-10 1-Jan-11 1-Apr-11 Volumes are shown on a 100%…
  8. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 8
    2011F - Christina Lake 9 11 Mbbls/d of production 375 - 425 MM of capital 2.4 2.7 SOR* 18.65 19.40/bbl operating costs* Continue construction on phase D Q1 Execute strat well program 59 gross wells drilled Q2 Complete phase C…
  9. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 9
    2011F - Pelican Lake 21 - 23 Mbbls/d of production 275 - 325 MM of capital 14.00 15.00/bbl operating cost 57 strat wells drilled in Q1 Start drilling infill patterns Potentially accelerate drilling program Mbbls/d Net before…
  10. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 10
    Portfolio of additional opportunities Regulatory approval Construction Steam & production Initial application bbls/d net Narrows Lake 65,000 Grand Rapids 180,000 Telephone Lake 80,000* Winefred Lake 30,000 Foster Creek Other…
  11. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 11
    Wood River CORE project Increases overall capacity 50 Mbbls/d of increased crude throughput 130 Mbbls/d of increased heavy crude capacity lowers crude input costs produces a greater proportion of high value clean products…
  12. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 12
    Our dividend commitment Dividend growth requires: strong financial health sustainable pace of development reliable, predictable cash flow to support payments Dividend yield comparison 5% 4% 3% 2% 1% 0% HSE COS CVE SU IMO…
  13. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 13
    Supplemental information Meeting our commitments Disclosed Bitumen Initially-In-Place (BIIP), confidential lands & additional project details Q2 Announced 10-year business plan to achieve oil sands production of 300,000 barrels…
  14. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 14
    The principles of the business Grow oil production by investing in high quality oil resources Maintain operating & capital cost discipline by focusing on projects with strong returns & material net present value Manage conventional…
  15. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 15
    Building value by developing resource O W TH E GR VALU Production Reserves Contingent Prospective resources resources 2011F activities to increase the value of our barrels Stratigraphic wells support Stratigraphic Start…
  16. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 16
    Timeline - illustrative SAGD phase Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Prepare application Regulatory approval(1) Engineering Procurement Initial capital Construction(2) Commissioning Steam Production (1) Receipt of…
  17. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 17
    Foster Creek overview Pilot project began in 1996 Became the industrys first commercial SAGD project in 2001 largest producing SAGD operation in Alberta 120,000 bbls/d of production capacity (phases A E) 180 wells currently producing…
  18. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 18
    Manufacturing approach to development Increased efficiency reduces execution timeline Manufacturing process staged development dedicated in-house construction management teams multiple small contractors standard designs assembly…
  19. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 19
    Grand Rapids potential 100% WI 180 Mbbls/d production capacity 40 - 60 Mbbls/d expected first phase 3.0 - 3.5 SOR 1 well per section 52,480 net acres 1.3 Bbbls best estimate contingent resources* 60.00 70.00/bbl WTI supply cost…
  20. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 20
    Telephone Lake potential 100% WI 50 Mbbls/d production capacity 80 Mbbls/d expected first phase* 2.5 SOR 4 - 16 wells per section 36,480 net acres 0.7 Bbbls best estimate contingent resources** 65.00 75.00/bbl WTI supply cost 37…
  21. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 21
    Technology improving recovery Wedge Wedge wells well producer < 0.1 average SOR 600 800 bbls/d average Standard SAGD production rate at Foster Creek; well pair and 300 400 bbls/d at Christina Lake steam chambers coalesce…
  22. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 22
    Cenovuss Solvent Aided Process (SAP) SAP versus SAGD metrics Steam only (SAGD) 30% production rate improvement 15% incremental total oil recovery 3% reduction in annual fuel gas usage Steam & solvent (SAP) 0.05 bbls solvent…
  23. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 23
    Integrating environment into our business Ensure compliance Integrate environmental and business planning Demonstrate performance Incorporate innovations into projects and existing operations Communicate - engage Weyburn: 40% of…
  24. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 24
    2011F conventional oil & natural gas Conventional oil & NGLs 520 550 MM of capital in Southern Alberta & Saskatchewan 45 50 Mbbls/d of production ALBERTA SASKATCHEWAN MANITOBA Natural gas Wainwright 130 150 MM of capital…
  25. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 25
    Southeast Saskatchewan Bakken Overview 40 - 45 API light oil 100 - 125 Mbbls/well 2.0 3.0 MM per well (drill, complete, tie-in) Bakken (Viewfield & Estevan area) 140+ undeveloped sections (fee & crown land) 11 horizontal, 6…
  26. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 26
    Weyburn gross production history Mbbls/d 40 30 20 10 0 Jan-75 Jan-85 Jan-95 Jan-05 Primary & w aterflood Vertical infills Pre CO2 Hz infills Waterflood improvement CO2 EOR EOR = enhanced oil recovery.…
  27. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 27
    Locking in cash flow stream Natural gas production View natural gas as financial asset; not Percent of production production asset 100% 75% of 2011F natural gas production hedged 75% 58% financial hedge 17% economic hedge 50%…
  28. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 28
    Managing financial risk Commodity price hedging Strong balance sheet metrics and capacity Integrated upstream and refining cash flows Economic hedge with natural gas internal consumption Other risk management practices liquidity and…
  29. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 29
    T100 R1W5 R20W4 R15W4 R10W4 R5W4 R1W4 T100 T95 Grosmont Wabiskaw/ T95 McMurray Telephone Lake Steepbank T90 T90 East McMurray GREATER PELICAN REGION BOREALIS REGION T85 Saskatchewan Wabiskaw…
  30. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 30
    2011 Corporate Guidance - C, before royalties April 27, 2011 OIL SANDS December 2010 April 2011 update Foster Creek Christina Lake Total Total Production (Mbbls/d) 51 - 54 9 - 11 60 - 65 (1) Operating cash flow ( millions) 700 - 800…
  31. UBS GLOBAL OIL AND GAS CONFERENCE – Cenovus Energy Inc. – slide 31
    Investor Relations Contacts Susan Grey Director, Investor Relations 403-766-4751 susan.greycenovus.com James Fann Analyst, Investor Relations 403-766-6700 james.fanncenovus.com Bill Stait Analyst, Investor Relations 403-766-6348…

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