Production and throughput
(before royalties, net to Cenovus)
2026 Q3
2026 Q2
2025 Q3
Oil and NGLs (Mbbls/d)1
885.9
835.5
684.7
Conventional natural gas (MMcf/d)1
825.4
809.8
889.5
Total Upstream production (MBOE/d)1
1,023.5
970.4
832.9
Total Downstream crude throughput (Mbbls/d)1
437.2
451.5
710.7
1 See Advisory for production by product type and by reporting segment.
2 Specified financial measure. See Advisory.
3 Non-GAAP financial measure or contains a non-GAAP financial measure. See Advisory.
4 Estimated 2026 production exit rate.
5 Evaluated as at December 31, 2025, as disclosed by Athabasca. See Advisory.
Third-quarter results
Operating1
Cenovus’s total revenues were $16.0 billion in the third quarter, down from $17.4 billion in the second quarter of 2026. Upstream revenues were $10.6 billion, compared with $12.6 billion in the previous quarter, while Downstream revenues were $8.6 billion, up from $8.2 billion in the second quarter.
Operating margin6 was $6.3 billion compared with $5.9 billion in the prior quarter. Upstream operating margin2 was $4.5 billion, a slight decrease from $4.9 billion in the second quarter, as a result of lower benchmark oil prices. Downstream operating margin was $1.8 billion, an increase from $1.0 billion in the prior quarter, reflecting strong operations and improved market crack spreads. Operating margin in the U.S. Refining segment was $1.4 billion, which included the receipt of small refinery exemption (SRE) waivers related to the Superior Refinery and a $30 million inventory holding loss.
Total Upstream production was 1,024 MBOE/d, up from 970 MBOE/d in the second quarter. Christina Lake achieved record quarterly production of 381 Mbbls/d, up from 372 Mbbls/d in the prior quarter. Strong well pad performance at Narrows Lake and continued progress on the sustaining pad and redevelopment well program at Christina Lake North more than offset the impact of the Christina Lake turnaround that was completed ahead of schedule in the quarter. Foster Creek production reached a quarterly record of 248 Mbbls/d, up from 215 Mbbls/d in the prior quarter reflecting resumed operations after an unplanned disruption in late May and continued ramp up of the Foster Creek optimization project. Sunrise production was a quarterly record of 70 Mbbls/d, up from 66 Mbbls/d in the prior quarter.
Production from the Lloydminster upstream assets was 131 Mbbls/d, compared with 132 Mbbls/d in the second quarter.
Production in the Conventional segment was 120 MBOE/d, up from 118 MBOE/d in the previous quarter.
In the Offshore segment, production was 70 MBOE/d, up from 66 MBOE/d in the second quarter. In Asia Pacific, production was 57 MBOE/d, up from 51 MBOE/d in the prior quarter following maintenance in China and Indonesia completed during the second quarter. In the Atlantic region, production was 14 Mbbls/d, compared with 15 Mbbls/d in the prior quarter.
Total Downstream crude throughput in the third quarter was 437 Mbbls/d. Canadian Refining crude throughput increased to 121 Mbbls/d from 102 Mbbls/d in the prior quarter, reflecting strong operational performance and a record quarterly utilization rate of 112%.
In U.S. Refining, crude throughput was 317 Mbbls/d compared with 350 Mbbls/d in the second quarter as a result of a planned turnaround at the Lima Refinery, which was completed in October. U.S. Refining revenues were $6.6 billion, compared with $6.5 billion in the prior quarter, reflecting higher refined product prices. Adjusted market capture in U.S. Refining was 88% compared with 67% in the prior quarter, driven by strong operational performance and the impact of certain non-operational items including SRE waivers received in the quarter. Excluding the impact of these items, adjusted market capture in the third quarter would have been approximately 7% lower.
6 Non-GAAP financial measure. Operating margin is the total of Upstream operating margin plus Downstream operating margin. See Advisory.
Financial
Cash from operating activities in the third quarter was $5.6 billion, consistent with the second quarter. Adjusted funds flow was $5.0 billion, consistent with the prior quarter, and free funds flow was $3.6 billion, down slightly from $3.8 billion in the second quarter as a result of increased capital investment in the third quarter. Net earnings rose to $3.4 billion from $2.9 billion in the prior quarter. Total royalties and income taxes recognized in the quarter were $3.0 billion.
Long-term debt, including the current portion, was $8.5 billion as at September 30, 2026. Net debt was $3.0 billion as at September 30, 2026, a decrease of $2.4 billion from the prior quarter, as a result of strong financial results and a $624 million decrease in non-cash working capital.
Growth projects
At Christina Lake North, a fifth steam generator was successfully brought online ahead of schedule. The redevelopment well program continues to progress as planned, and the facility expansion project remains on track for completion in 2028. At Sunrise, the optimization project successfully reached the production growth target of 70 Mbbls/d one year ahead of schedule.
At West White Rose, drilling of the first well is complete and completion and tie-ins are underway.
Athabasca transaction
Subsequent to the quarter, on October 5, 2026, Cenovus announced that it has entered into a definitive arrangement agreement to acquire Athabasca (TSX: ATH) in a cash and stock transaction valued at approximately $12.00 per Athabasca share or implied enterprise value of $5.7 billion. Subject to the approval of Athabasca shareholders and the Court of King’s Bench, and the satisfaction or waiver of other customary closing conditions, Cenovus expects the transaction to close in December.
Sale of Canadian commercial fuels business
On August 1, 2026, Cenovus closed the sale of its Canadian commercial fuels business, which included travel centres, cardlocks, retail sites and bulk plants for total cash proceeds of approximately $260 million after closing adjustments.
Dividend declarations and share purchases
The Board of Directors has declared a quarterly base dividend of $0.22 per common share, payable on December 31, 2026, to shareholders of record as of December 15, 2026.
All dividends paid on Cenovus’s common shares will be designated as “eligible dividends” for Canadian income tax purposes. Declaration of dividends is at the sole discretion of the Board and will continue to be evaluated on a quarterly basis.
In the third quarter, the company returned $1.9 billion to shareholders, composed of $1.5 billion from the purchase of 34.0 million common shares through its normal course issuer bid (NCIB) and $403 million through common share dividends. The current NCIB will expire on November 10, 2026. Cenovus has received approval from the Board to apply for another NCIB program. Cenovus will apply for approval to repurchase up to approximately 126.5 million of the company’s common shares, representing approximately 10% of its public float, as defined by the TSX.
2026 planned maintenance
The following table provides details on planned maintenance activities at Ce
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
