Cenovus Energy Inc (USA)(NYSE:CVE) recorded strong adjusted funds flow and cash from operating activities in 2017. Through its sustained focus on reliable operational performance and capital discipline, the firm generated free funds flow of almost $1.3 billion last year. The company also closed the divestitures of its legacy traditional natural gas and oil resources within its anticipated timeframe. Cash on hand and divestiture proceeds were utilized to repay and retire the firm’s bridge credit facility prior to the close of year.
Cenovus reported that in 2017, adjusted funds flow and cash from operating activities increased by 105% and 255%, respectively, whereas production and free funds flow were 73% and 216% higher as against the previous year. The firm benefited from increased average 2017 benchmark commodity prices and remarkable refining operating margin. Production surged last year mainly due to company’s acquisition of the remaining 50% stake made in May 2017 in the firm’s premium oil sands assignments in northern Alberta, and resources in British Columbia and the Deep Basin in Alberta.
Cenovus is also on plan to meet its accelerated objective of recording minimum $1 billion in cumulative capital, G&A and operating cost declines over two years as compared to a previous targeted timeline of 3 years. This comprises the firm’s previously reported plan to further lower its workforce by around 15% this year, which was mainly closed in January and February.
Last year, G&A costs per BOE came at $1.83 as compared to $3.29 in the earlier year, mainly as an outcome of increased production linked to the deal. Long-term staff incentive costs linked to a drop in company’s share price also resulted in lower G&A costs per BOE.
In the last trading session, the stock price of Cenovus gained 0.41% to close the day at $7.32. Post the recent decline, the market cap of firm was noted at $8.97 billion.