1. Cenovus plans C$5.0 to C$5.3 billion capital investment for 2026. 2. Upstream production expected at 945,000 to 985,000 BOE/d, 4% growth year-over-year. 3. Downstream throughput projected between 430,000 to 450,000 bbls/d, high utilization rates. 4. G&A costs expected to remain flat at C$625 million to C$675 million. 5. Emphasis on shareholder returns and maintaining cost controls after MEG acquisition.
FAQ
Why Bullish?
Cenovus’s consistent capital investment and production targets indicate growth potential, similar to previous upward trends following investments.
How important is it?
The comprehensive guidance announced reflects strategic investments, which could influence investor confidence positively.
Why Long Term?
Sustained capital investment and production growth will likely produce long-term benefits, similar to previous successful expansion phases.
Cenovus Energy Inc. Reveals 2026 Capital Budget and Corporate Guidance
CALGARY, Alberta, Dec. 11, 2025 (GLOBE NEWSWIRE) -- Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) has unveiled its 2026 capital budget and corporate guidance, highlighting a strategic approach to investment and production goals in the coming year.
2026 Capital Investment Highlights
Cenovus expects to make a capital investment ranging from $5.0 billion to $5.3 billion in 2026. This includes approximately $350 million allocated to capitalized turnaround costs. Excluding these costs, capital investment is projected to be between $4.7 billion and $5.0 billion, consistent with a deliberate reduction in growth investments compared to 2025.
- Upstream production forecast: 945,000 to 985,000 BOE/d, signifying a year-over-year growth rate of approximately 4%.
- Downstream crude throughput: 430,000 to 450,000 bbls/d, reflecting a utilization rate of about 91% to 95%.
- General and Administrative (G&A) costs: Expected to hold steady at $625 million to $675 million.
Strategic Insights from Leadership
Jon McKenzie, President & CEO of Cenovus, stated, “Following the completion of a three-year growth investment cycle, we are well positioned to ramp up volumes from our projects at Foster Creek and West White Rose, and advance the in-flight expansion at our newly acquired Christina Lake North assets.”
He emphasized that the company is committed to growing its portfolio while balancing debt reduction and enhancing shareholder returns through effective cost management.
Production and Investment Breakdown
The following outlines Cenovus's upstream and downstream capital investments and production expectations for 2026:
| Category | Production (MBOE/d / Mbbls/d) | Capital Investment (Millions) | Operating Costs ($/BOE) |
|---|---|---|---|
| Oil Sands | 755 - 780 | 3,500 - 3,600 | 11.25 - 12.75 |
| Conventional | 120 - 125 | 450 - 500 | 11.00 - 12.00 |
| Atlantic | 20 - 25 | 450 - 500 | 35.00 - 45.00 |
| Asia Pacific | 50 - 55 | - | 10.00 - 11.00 |
| Total Upstream | 945 - 985 | 4,400 - 4,600 | - |
| Total Downstream | 430 - 450 | 600 - 700 | - |
The total capital investment for Cenovus in 2026 is projected to be between $5.0 billion and $5.3 billion.
Detailed Operational Plans
Oil Sands Production
In the oil sands segment, production is projected at 755,000 to 780,000 bbls/d. This figure factors in a turnaround at Christina Lake during the third quarter of 2026. Additionally, production of approximately 8,000 bbls/d is anticipated from Rush Lake as it gradually ramps up.
Conventional and Offshore Production
For conventional assets, Cenovus will invest between $450 million and $500 million, with expected production falling between 120,000 and 125,000 BOE/d.
Offshore production is forecasted to range from 70,000 BOE/d to 80,000 BOE/d, including output from the Atlantic region. Key milestones include first oil from West White Rose expected in the second quarter of 2026.
Downstream Operations
Downstream operations are projected to handle crude throughput between 430,000 and 450,000 bbls/d, with capital investments between $600 million and $700 million. This will incorporate approximately $300 million in turnaround expenditures supporting safety and reliability initiatives.
Corporate Guidance and Maintenance Plans
General and Administrative expenses, excluding stock-based compensation, are anticipated to remain flat at $625 million to $675 million. Moreover, integrated costs from the acquisition of MEG are projected to be between $150 million and $200 million in 2026.
Maintenance and turnaround activities are planned for various facilities, which may impact production. Key impacts include:
- Upstream: Potential quarterly impacts of up to 10 MBOE/d.
- Downstream: Notable adjustments in Canadian and U.S. refining capacities.