Cenovus reports 2025 capital budget

Cenovus Energy expects to spend $4.6 billion to $5 billion on capital investments in 2025 and increase upstream production by 4 per cent.

The company released its new spending plan on Dec. 12 with an upstream production target between 805,000 to 845,000 barrels of oil equivalent per day (boe/d).

Overall downstream crude unit utilization is expected to be range between 90-95 per cent.

Cenovus said capital investment in 2025 will include about $3.2 billion of sustaining capital to maintain base production and support continued operations, with an additional $1.4 billion to $1.8 billion directed towards upstream growth projects.

“Cenovus will deliver important milestones on our major growth projects in 2025, including achieving first oil from Narrows Lake, installation of the West White Rose offshore facilities and commencement of drilling, and preparations for first steam at the Foster Creek optimization project," said president and CEO Jon McKenzie.

“We’re entering the final year of a three-year investment cycle, which will drive planned production growth of 150,000 boe/d by the end of 2028 and enable significant expansion of free funds flow."

Total downstream crude throughput in 2025 is forecasted to range from 650,000 to 685,000 boe/d representing a 4 per gain from 2024 levels.

Cenovus plans to invest $2.7 billion to $2.8 billion on its oil sand assets including plans for development drilling of conventional oil in the Lloydminster area.

The company expects to spend between $350 million and $400 million on its conventional assets primarily to maintain production with a limited amount directed to production growth.

One of Cenovus's operated refineries will undergo a turnaround in the second quarter of 2025 among other planned maintenance activities in the spring and fall.

Read more: Cenovus bullish on drilling in quarter