Cenovus Energy Inc. (TSX: CVE.TO) is a Canadian integrated energy company headquartered in Calgary, Alberta.
Q2 2025 Financial Highlights
Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) reported solid financial results for the second quarter of 2025, generating:
- $2.4 billion in cash from operating activities
- $1.5 billion in adjusted funds flow
- $355 million in free funds flow
These results reflect disciplined execution and operational resilience in the face of planned maintenance and external disruptions.
Production & Operations Update
Total upstream production averaged 765,900 barrels of oil equivalent per day (BOE/d) in Q2, impacted by:
- Scheduled turnarounds at Foster Creek and Sunrise oil sands sites
- Maintenance at offshore facilities
- Temporary wildfire-related shutdowns at Christina Lake
Despite these challenges, Cenovus noted exceptional operating performance, with turnarounds exceeding expectations and key project milestones delivered on time and within budget.
Revised 2025 Guidance
Cenovus updated its full-year 2025 guidance to reflect current production expectations:
- New production range: 805,000 – 825,000 BOE/d
- Midpoint reduction: 10,000 BOE/d, primarily due to the temporary shutdown of Rush Lake facilities
Returns to Shareholders
Cenovus continued to return capital to shareholders in Q2, totaling $819 million, including:
- $301 million through the repurchase of 17.2 million shares under its normal course issuer bid
- $368 million in common and preferred dividends
- $150 million from the redemption of Series 7 preferred shares
Following the quarter’s close, an additional 6.6 million shares were repurchased for $129 million by July 28, 2025.
The Board declared a $0.20 quarterly base dividend per common share, payable on September 29, 2025, to shareholders of record on September 15, 2025.
Analyst Commentary: Jefferies Ups Price Target
Investment firm Jefferies raised its price target for Cenovus Energy from C$25 to C$29, maintaining a Buy rating. The revision comes after integrating Cenovus’s recent acquisition of MEG Energy, which Jefferies views positively due to the strategic fit and quality of assets involved.
Stock Recommendation:
A “Buy” rating has been given on the company’s stock at the closing price of CAD 24.75 on September 29, 2025. This rating is supported by strong operational performance, disciplined capital allocation, and strategic growth initiatives. Recent upgrades, including Jefferies raising its price target to C$29 from C$25, reflect confidence in the company’s long-term outlook. Key growth drivers include the successful integration of MEG Energy, continued optimization of oil sands assets, enhanced downstream margins through refining capacity, and robust shareholder returns via dividends and share buybacks. Cenovus’s focus on cost efficiency, free funds flow generation, and sustainable development further strengthens its investment appeal in a volatile energy market.
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