Cenovus Energy (TSX: CVE) reported Q3 2025 net earnings of $1.3 billion, up 57% year over year from $820 million, as total revenue increased to $13.2 billion on record upstream production and a 99% downstream utilization rate.
Total operating margin rose to $3.0 billion from $2.4 billion in Q3 2024. Segment revenue: upstream revenue was $6.7 billion, down 9% year over year, while downstream revenue was $8.4 billion, 4% lower than a year ago. Diluted earnings per share were $0.72 versus $0.42 a year ago.
Adjusted funds flow was $2.5 billion, up 26% year over year, while free funds flow rose to $1.3 billion, a 114% year-over-year increase. Excess free funds flow was $745 million, reversing a $306 million shortfall in the second quarter and up from $146 million in the prior year period.
Adjusted funds flow per diluted share was $1.38 versus $0.84 in the second quarter and $1.05 a year earlier.
Cash from operating activities was approximately $2.1 billion, down 14% from $2.5 billion in Q3 2024. Capital investment was $1.15 billion compared with $1.35 billion a year ago. Post quarter-end, Cenovus received $1.8 billion of cash proceeds on October 1 from the sale of its 50% interest in WRB Refining.
Upstream production averaged a record 832,900 BOE/d, up 8% from 771,300 BOE/d a year earlier. Oil and NGLs were 684,700 bbls/d versus 630,500 bbls/d a year ago, while conventional natural gas averaged 889.5 MMcf/d versus 844.6 MMcf/d a year ago.
Total downstream crude throughput was a record 710,700 bbls/d, up 11% from 642,900 bbls/d last year.
US Refining crude throughput reached 605,300 bbls/d at 99% utilization; per-unit operating expense excluding turnaround costs fell to $9.67 per barrel, a 24% year-over-year improvement. Canadian Refining crude throughput was 105,400 bbls/d at 98% utilization.
Oil Sands production set a record at approximately 642,800 BOE/d. Christina Lake rose to 251,700 bbls/d from 217,900 bbls/d as Narrows Lake began contributing and the site recovered from wildfire-related downtime in the second quarter. Foster Creek increased to 215,400 bbls/d from 186,100 bbls/d as new steam capacity from the optimization project came online and turnaround work concluded. Sunrise averaged 52,400 bbls/d versus 50,300 bbls/d. Lloydminster thermal assets produced 95,700 bbls/d versus 97,800 bbls/d, with Rush Lake facilities still shut in after a second-quarter injection well casing failure and a phased restart planned by year end.
Conventional segment production improved to 126,900 BOE/d from 119,800 BOE/d on strong well performance. Offshore averaged 63,200 BOE/d versus 66,300 BOE/d, with Asia Pacific at 51,900 BOE/d, down from 53,800 BOE/d due to China maintenance, and Atlantic at 11,300 bbls/d, down from 12,500 bbls/d due to West White Rose tie-ins to the SeaRose FPSO.
Following the September 30 disposition of its 50% WRB interest, Cenovus updated 2025 guidance to reduce US downstream throughput to 510,000 to 515,000 bbls/d, a 52,500 bbls/d midpoint decrease, and to lower downstream turnaround expense guidance to $360 million to $380 million, a $65 million midpoint reduction.
The report comes on the heels of Cenovus announcing an amended agreement to acquire MEG Energy for consideration valued at approximately $30.00 per MEG share in cash and Cenovus stock. MEG adjourned its special meeting to November 6 to address a regulatory inquiry related to the amended terms. Subject to court approval, MEG shareholder approval and customary conditions, Cenovus expects closing in mid-November.
Cenovus last traded at $16.76 on the TSX.
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