$22 billion enterprise value 460 MBOE/d total production 241 Mbbls/d net refining capacity $4.7 billion liquidity 39 year reserve life index 825 Mbbls/d regulatory approved capacity Cenovus at a glance 1 Note: Values are…
Positioned to increase shareholder value • Best-in-class assets and knowledge in SAGD • Industry-leading capital efficiencies • Regulatory approvals in place • Streamlining the Deep Basin Leveraging a focused asset base Realizing…
Disciplined capital allocation priorities Sustaining capital Christina Lake phase G completion Increasing total shareholder return Note: Targeting net debt to adjusted EBITDA < 2.0x at low cycle prices (US$45/bbl WTI and C$43/bbl…
Updated 2019 budget incorporates curtailment impacts 2019 budget highlights Production volumes 2018 Actual 2019F Foster Creek (Mbbls/d) 162 158 – 166 Christina Lake (Mbbls/d) 201 192 - 204 Deep Basin (MBOE/d) 120 95 - 105 Operating…
Improved outlook for Canadian oil differentials Note: Expected pipeline in-service dates reflect most recent publicly stated onstream dates for Enbridge Line 3 Replacement (ENB L3R), Trans Mountain Expansion (TMX), and Keystone XL…
Significant torque to narrowing heavy oil differentials Highly levered to improving commodity prices Free funds flow ($ billions) Note: 2019 base case assumes WTI-WCS differential of US$14.50/bbl. Free Funds Flow calculation excludes…
Managing the balance sheet for low cycle prices Note: Liquidity position as at March 31, 2019, reflecting the repurchase of unsecured notes (US$449 million) in Q1 2019. Additional repurchase of unsecured notes (US$66 million) completed…
• Largest SAGD producer with best-in-class assets • oil sands sustaining…
Best-in-class oil sands assets Note: Values are approximate. Forecasted production based on the midpoint of April 23, 2019 guidance, which includes the expected impacts of mandatory curtailment. Proved plus probable bitumen reserves as…
Oil sands leader • Expected to improve reservoir performance • Anticipated to reduce GHG emissions intensity Largest, most efficient producer • Largest SAGD producer • Lowest SOR • Most regulatory approved oil sands productive…
Best-in-class producing assets with unmatched scale of operation • Concentrated resources with significant reserve life • Safely executed 14 major oil sands capacity expansions • SOR reflects resource quality and execution • Lower SOR…
Industry-leading capital efficiencies drive future growth Phase G builds on Christina Lake success • Best-in-class oil sands project, industry-leading SOR • Templated central plant facility design and manufacturing approach •…
Demonstrating cost leadership in the oil sands ~ 70% reduction in oil sands sustaining capital costs since 2014 • Design and productivity improvements are expected to be sustainable • ~ 45% reduction to oil sands operating costs since…
Track record of execution with significant running room Note: Cenovus has flexibility on start-up of Christina Lake phase G and will take into consideration whether mandated curtailments have been lifted and if there is sustained…
Fresh water use intensity Direct GHG emissions intensity Tonnes CO2e / m3OE Note: Fresh water (non-saline) is defined as water with less than 4,000 ppm Total Dissolved Solid (TDS) and may still contain other natural contaminants which…
Our GHG emissions performance Low carbon oil sands • 33% reduction in emissions intensity since 2004 • Premium oil sands assets with low steam to oil ratios • Investment in GHG reduction technologies like cogeneration, solvents…
Solvents expected to create value and reduce emissions intensity Note: Expectations of solvent are associated with conventional solvent aided process (CSAP). • Decreases SOR by ~30% - 35% • Increases individual well production rates…
Significant potential in the Deep Basin Note: Values are approximate. Forecasted production based on the midpoint of April 23, 2019 guidance. Capacity of 1.2 BCF/d is net natural gas processing capacity in the Deep Basin. See Advisory.…
Deep Basin provides short-cycle opportunities • Three core operating areas across approximately 2.8 million net acres • 2019F production: 95 – 105 MBOE/d (26% liquids; 17% decline rate) • Disciplined capital investment in 2019 of $50 –…
Deep Basin has low decline, liquids rich production 2019F production 2019F decline rate 0 100 200 300 TOU VII ARX CVE PEY MBOE/d • 17% decline rate is a competitive advantage • Reduces sustaining capital requirements •…
Additional development upside at Marten Hills Note: See Advisory. Cenovus Deep Basin Lands Cenovus Oil Sands Lands Athabasca Oil Sands Region Cenovus Marten Hills Lands 2019 activity focused on further appraisal across land base…
Integration across the value chain improves margin Heavy processing capacity Current ex- Alberta pipeline commitments Crude by rail capacity 128 Mbbls/d 118 Mbbls/d 100 Mbbls/d Note: Values are approximate, net to Cenovus,…
Benefiting from refinery location and processing capacity Note: Capacities are gross values. Cenovus is a 50 percent partner in the Wood River and Borger refineries, operated by our partner, Phillips 66. See advisory. Heavy oil…
Refining capacity mitigates heavy oil differentials Refining assets help to mitigate exposure to wider light-heavy differentials • Approximately 25% of total blended heavy oil volumes are mitigated with processing capacity • Wood…
Shifting destination sales away from Canadian pricing Currently marketing in excess of 550 Mbbls/d blended heavy oil • Refining capacity, pipeline and rail transportation options mitigate 60-65% of our current exposure to wide…
26 Pipelines are core to market access strategy • Taking a portfolio approach to maximize the value of every barrel • Secured pipeline access to key markets outside of Alberta • Multiple pipelines provide diversification of markets…
Crude by rail provides structural support and optionality Driving efficiency into rail operations Bruderheim provides strategic advantage MEG upgrading pilot Manifest operations area Unit train operation Rail lines Bruderheim…
Creating value through corporate responsibility • SER Committee of the Board provides oversight of environment and sustainability performance • Enterprise Risk Management program, practices, and policy help ensure active and effective…
Current productive capacity phases A-G (bbls/d) 180,000 Regulatory approved capacity (bbls/d) 295,000 Reservoir depth ~450 meters Net pay 25 – 30 meters High permeability 5 – 10 darcies High oil saturation ~80% API bitumen 9° – 11°…
Christina Lake overview Note: Production is shown before royalties on a gross basis. CSOR and 2018 average production per well was impacted by voluntary curtailment in 2018 and mandatory curtailment in 2019. 2019F production based on…
New design improves well conformance • Superior start-up and steam circulation methods • Advanced sub-surface equipment and design • High pressure ramp up 32 2011 4D, or time-lapse seismic, can be acquired to determine changes in…
W05 PAD (2016) W18 PAD (2016) W23 PAD (2016) W15 PAD (2016) 33 Improved start-up procedures on new pads Improved performance Foster Creek well performance improving • Longer reach horizontal well pairs Recovery factor • Drilling…
0 500 1,000 1,500 2,000 2,500 3,000 3,500 1 31 61 91 121 151 181 211 241 271 301 331 361 391 421 Day Average 1,400m well Average 965m well Christina Lake H09 pad – 6 well pairs at 1,600m H-09 p • Improved conformance allows…
Redesigned well pads drive cost improvements Sustainable reductions in oil sands capital Transaction Redesigned well pias dfu allty C fhinraisntcinead Lake • Improved modular and scalable design for well pairs and pads • Materially…
Foster Creek estimated capital savings of $500 million After: • 8 pads • 66 wells • ~$600 million • 220 MMbbls recoverable Before: • 18 pads • 120 wells • ~$1.1 billion • 200 MMbbls recoverable Improved conformance, longer…
Christina Lake estimated capital savings of $800 million Before: • 19 pads • 213 wells • ~$1.6 billion • 310 MMbbls recoverable After: • 13 pads • 105 wells • ~$800 million • 310 MMbbls recoverable Improved conformance, longer…
Oil sands royalties Foster Creek and Christina Lake are post-payout projects • Royalty calculation is annualized using the greater of gross revenues or net profits multiplied by applicable royalty rates • Gross revenues are a function…
Deep Basin takeaway capacity and marketing Potential for growth and synergies with oil sands Current firm receipt capacity exceeds production levels • Current firm receipt capacity exceeds forecast production levels • sufficient…
Typical crude slate and product yield Crude feedstock Refined products Wood River Borger Gasoline Distillate Other 0% 20% 40% 60% 80% 100% Wood River Borger Heavy Medium sour Light
assumed at US$0.32 cpg. -$250 $0 $250 $500 $750 $1,000 $1,250 $1,500 $10 $12 $14 $16 $18 $20 Chicago crack spread - US$/bbl US$25/bbl US$20/bbl US$15/bbl Refining operating margin, net (LIFO basis) US$ million L/H…
Hedging summary Current hedge positions for 2019 Hedges at December 31, 2018 Terms Volumes Average price Crude – WTI Collars January – December 19,000 bbls/d US$50.00 – US$62.08/bbl
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2019 Corporate Guidance - C$, before royalties NGLs 19 - 22 50 - 75 7.75 - 8.75 7 - 10 430 - 460 Deep Basin total 95 - 105 Light/Medium oil Production (Mbbls/d) Capital expendigures Operating Costs Effective Royalty
2019 Corporate Guidance - C$, before royalties Production Capital Expenditures Total liquids total natural Gas total Upstream Refining and marketing corporate corporate and other expenditures total capital expendituresgeneral and…
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