Latest news with #JonMcKenzie
CTV News
2 days ago
- Business
- CTV News
U.S. depends on Canadian oil, despite Trump's comments, Cenovus CEO says
Cenovus Energy logos are on display at the Global Energy Show in Calgary, Alta., Tuesday, June 7, 2022. THE CANADIAN PRESS/Jeff McIntosh CALGARY — The U.S. relies on Canadian oil imports, despite comments to the contrary by U.S. President Donald Trump, Cenovus Energy CEO said on Tuesday. Trump has threatened on-again, off-again tariffs on Canada's oil, of which nearly 4 million barrels per day are exported to the United States. Canada is the world's fourth-largest oil producer, and fifth-largest natural gas producer. Trump has previously said the U.S. does not need to import goods, including oil and gas, from Canada. Canada's Prime Minister Mark Carney, who won a minority government in April on a wave of anti-Trump voter sentiment, has said the country's old relationship with the U.S. based on steadily increasing economic integration is over. Jon McKenzie, who heads oil sands company Cenovus and chairs the Canadian Association of Petroleum Producers industry group, said trade tensions between the two nations have highlighted the need for Canada to diversify its exports. But he said that need does not take away from the fact the two countries' energy systems are inextricably linked. 'What hasn't changed is energy economics and energy physics. The reality is we are hardwired into the U.S. system,' McKenzie said at an energy conference in Calgary, Alberta. Canada depends on U.S. refiners to buy the vast majority of its exported oil, while landlocked U.S. refineries in the Midwest are configured to process the grade of crude that Canada produces. McKenzie said Canada has the opportunity to grow its oil output in the coming decades, and added the country's new government needs to recognize Canada's co-dependence with the U.S. and seek to improve that relationship. 'We need to make sure that we don't act viscerally when we're threatened, and that we act intelligently in our long-term interest,' he said. As part of its response to the U.S. tariff threat, Carney has pledged to identify and fast-track projects of national interest aimed at helping Canada become what he calls a conventional and clean energy superpower. McKenzie said the oil and gas sector does not want the federal government to pick winners and losers by deciding which projects to fast-track. He said the industry instead wants to see broad regulatory reform that will remove barriers to investing in oil and gas projects. (Reporting by Amanda Stephenson in Calgary; Editing by Chris Reese and Rod Nickel)
Reuters
3 days ago
- Business
- Reuters
US still dependent on Canadian oil, despite Trump's claims, Cenovus CEO says
CALGARY, June 10 (Reuters) - The U.S. is still reliant on Canadian oil imports, despite claims made by U.S. President Donald Trump, Cenovus Energy's CEO said on Tuesday at a conference in Calgary, Alberta. Trump has threatened on-again, off-again tariffs on Canada's oil, of which nearly 4 million barrels per day are exported to the United States. Canada also remains dependent on U.S. energy systems, Cenovus CEO Jon McKenzie said, adding the country must diversify its customer base.
Yahoo
10-05-2025
- Business
- Yahoo
Cenovus stock soars over 10% as Canadian oil and gas producer hikes dividend
Cenovus Energy ( raised its dividend in the face of weaker oil prices, sending shares of the Canadian oil and gas company over 10 per cent higher on Thursday. The Calgary-based producer hiked its annual payout to shareholders from $0.72 per share to $0.80 per share. This amounts to an 11 per cent increase beginning in the second quarter of 2025. Cenovus says its base dividend is sustainable down to U.S. benchmark crude prices of US$45 per barrel of West Texas Intermediate. WTI has fallen over 20 per cent since early April. Accelerated OPEC+ production hikes and global trade tensions have prompted a number of economists to lower their price forecasts for the remainder of 2025. The U.S. benchmark price (CL=F) climbed over two per cent on Thursday, as investors responded to a potential U.S.-UK trade deal, as well as expected talks between U.S. officials and their Chinese counterparts in Switzerland later this week. Cenovus reported first-quarter financial results before Thursday's opening bell, topping analyst estimates. Falling crude prices saw net income decline to $859 million, versus $1.18 billion in the same period last year. While falling oil prices have weighed on shares of Canada's large integrated oil and gas producers, Cenovus stock has been hardest hit year-to-date, with a more than 25 per cent decline. Toronto-listed shares closed 9.15 per cent higher on Thursday at $17.78. Speaking on the company's quarterly conference call with analysts, CEO Jon McKenzie said Cenovus is "well-positioned in any reasonable commodity price scenario." "As we deliver our growth projects and build momentum in our downstream business, we're confident in our ability to continue to grow our dividend consistently over time," he said on Thursday. McKenzie adds that Cenovus' capital spending is set to fall in the fourth quarter as projects near completion. The company's 2025 guidance includes a $4.6 billion to $5 billion budget for capital investment. "We're pretty confident we're going to see a drop," chief financial officer Kam Sandhar told analysts on the call. "I think somewhere in that low $4 billion range is a good starting point for you guys to think about for 2026." In its first quarter, Cenovus says it returned $595 million to shareholders via dividends, stock purchases, and redemptions of preferred shares. "With the value we see in our shares today, and with capital investment decreasing as we complete our major projects, we see a significant opportunity to increase our returns to shareholders through buybacks going forward, and continuing to ensure our balance sheet remains strong," Sandhar said. Cenovus reported its net debt rose by $456 million in the first quarter, hitting a total of $5.1 billion. The company's target was $4 billion. Scotiabank Global Equity Research analyst Kevin Fisk maintained his $27 per share price target and "sector outperform" rating on Toronto-listed Cenovus stock on Thursday. Greg Pardy of RBC Capital Markets kept a $25 price target with an "outperform" rating. Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist. Download the Yahoo Finance app, available for Apple and Android. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Calgary Herald
09-05-2025
- Business
- Calgary Herald
Varcoe: With election over, can government and oilsands industry find path forward for $16.5B carbon capture project?
Article content With the 2025 federal election in the books, can the mammoth $16.5-billion carbon capture network proposed by the Pathways Alliance — one of the most ambitious developments in the Canadian oilsands — get back on track? Article content Article content It's an important question for the province, the industry and the country. Article content 'I have been surprised how long it has taken to get a consensus among all the participants, and I was more optimistic probably two years ago than I am today,' Murray Edwards, executive chair of Canadian Natural Resources, said in an interview Thursday. Article content Article content 'Given the change in global politics, the election of a new president south of the border, clearly, there has been a step back on some of the social-environmental initiatives. And where Pathways fits in that, I think is still to be determined.' Article content Article content Oil and gas remains the country's largest export, a huge creator of jobs, royalties and government revenues. Article content With rising oilsands production, it's also the largest emitting sector in Canada, and Pathways Alliance was formed to tackle that issue amid growing climate concerns. Article content The group includes the country's largest oilsands operators — Suncor Energy, Imperial Oil, MEG Energy, Canadian Natural Resources, Cenovus Energy and ConocoPhillips Canada. Article content The alliance's foundational project would see a 400-kilometre pipeline built to connect more than 20 oilsands facilities in northern Alberta to an underground storage hub near Cold Lake, where CO2 would be sequestered deep underground. Article content Article content Article content Yet, negotiations between Ottawa, the province and the oilsands producers surrounding the proposed development — including the sharing of costs — have progressed slowly. Article content Article content Cenovus Energy CEO Jon McKenzie said Thursday that discussions were in a 'holding pattern' recently with the election. Article content 'We need those two levels of government to come together and create a path forward for us where those projects can get done and the industry can remain competitive,' McKenzie said.
Globe and Mail
08-05-2025
- Business
- Globe and Mail
Cenovus cuts jobs to remain competitive, CEO says as company concludes series of capital investments
Cenovus Energy Inc. CVE-T has cut an undisclosed number of jobs, which chief executive Jon McKenzie said is part of the company's plan to remain competitive as the oil giant wraps up a series of capital investments. Cenovus would not confirm the number of jobs cut, nor where those workers were located, but said in an email that the changes are 'part of a continued focus on being more competitive across all areas of our business.' With a number of projects concluding, it said, 'we have reviewed some team structures, which has led to some employees and contractors leaving the company.' Asked about the job cuts on an earnings call Thursday, Mr. McKenzie said he wouldn't comment on the numbers or locations of job losses out of respect for affected employees. 'As a company, we are getting to the end of an investment cycle in this business, and our capital spending is decreasing,' he said. 'Consistent with that, the amount of work that we have to do is decreasing, and that means we've got to readjust our labor force to make it fit for purpose and ensure that we are competitive.' Projects close to completion include the West White Rose extension off the coast of St. John's, NL, and, in Northern Alberta, the construction of a 17-km pipeline from the company's Narrows Lake lease to its Christina Lake processing facility, and improvements at its Foster Creek oil sands site. At least 50 people lost their jobs at a single location in Alberta - the minimum number to trigger mandatory notice to the provincial government. Alberta Jobs Minister Matt Jones confirmed the job losses in an emailed statement, adding it is challenging every time Albertans lose their jobs. 'Cenovus has indicated that severance, extended benefits, and career counselling services are being provided to support impacted qualifying employees,' Mr. Jones said. The job losses come as the company on Thursday posted a fall in its first-quarter profit, but beat analyst cash flow expectations largely driven by stronger-than-expected oil sands earnings and higher prices. Upstream production hit 818,900 barrels a day, maintaining a near-record performance and exceeding the previous quarter, the company said. Total production for the quarter was about 1 per cent higher than analysts expected. Cenovus also announced an 11 per cent increase to its base dividend, to $0.80 per share. Mr. McKenzie said a large drop in capital spending over the next year will be due to the completion of the West White Rose project. The White Rose field sits around 350 kilometres east of St. John's. It produces roughly 26,000 barrels a day, but that number is falling as its oil reserves decline. The extension project will add about 75,000 barrels a day to production and extend the life of the field to 2038. Cenovus floated a massive gravity-based structure for the project on Wednesday night, Mr. McKenzie said, and will tow it to the field in June. After a few months of commissioning and startup work, the company will start drilling, with first production expected in the second quarter of 2026. 'This is becoming very real, very, very quickly,' he said. Cenvous' capital spend will begin to come down in the forth quarter of 2025 as other projects move to the commissioning and startup phases, Mr. McKenzie said. 'We have high confidence that we are going to be decreasing our capital budget from the 5 billion that we've been running in to a lower number in 2026,' he said. 'We've spent the last three years focusing on the growth plan. This year, we've got about 1.4 to 1.8 billion of growth spent, and that growth, really in earnest, starts to show up this year and going through into 2027.'
