Cenovus Energy Anticipates Increased Refinery Output in the U.S. by 2024

Cenovus Energy

Cenovus Energy (NYSE:CVE) revealed on Thursday its projections for higher production from its U.S. refineries in 2024, citing the successful restart of its two refineries, now operating at full capacity. The Canadian energy company faced challenges in production due to a fatal fire at its Toledo, Ohio refinery last year and an explosion at the Superior, Wisconsin facility in 2018.

For the upcoming year, Cenovus forecasts downstream throughput to range between 630,000 and 670,000 barrels per day (bpd), a notable increase from the expected 580,000 bpd to 610,000 bpd for the current year. Pre-market trading saw a 1.6% rise in the company’s U.S.-listed shares.

However, Cenovus anticipates higher operating costs in 2024, attributing the increase to maintenance and repair activities. The Calgary, Alberta-based company estimates expenses ranging between C$4.5 billion ($3.35 billion) and C$5 billion for 2024, surpassing the projected costs of C$4 billion to C$4.5 billion for 2023.

CEO Jon McKenzie emphasized the company’s commitment to cost reduction and ongoing capital discipline. Despite a cooling in global oil prices compared to the previous year, they remain at a level where companies can maintain profitable drilling operations.

In addition to refinery advancements, Cenovus plans to expand production at its Foster Creek, Christina Lake, and Sunrise oil sands projects. The company’s outlook for total upstream production in 2024 is set between 770,000 and 810,000 barrels of oil equivalent per day (boepd), surpassing the expected range of 775,000 boepd to 795,000 boepd for the current year.

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