Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Cenovus generated cash flow of $939 million or $1.24 per share diluted in the second quarter of 2011.
• Refining operating cash flow was $322 million during the quarter mainly due to improved refined
product prices and higher throughput.
• Foster Creek and Christina Lake combined oil sands production exceeded 58,000 barrels per day
(bbls/d) net to Cenovus in the second quarter, slightly less than the same period a year earlier due
to planned turnarounds.
• Cenovus received partner approval for Foster Creek phases F, G and H and Christina Lake phase E.
• Christina Lake phase C began injecting steam ahead of schedule with initial production expected in
the third quarter.
• Cenovus received approval to include capital investment from prior periods for Foster Creek
expansion phases F, G and H in the facility’s existing royalty calculation. As a result, Foster Creek’s
royalty expense was lowered by about $65 million in the second quarter.
• Floods in southern Saskatchewan and wild fires in northern Alberta reduced conventional oil
production.
• Cenovus updated its 10-year strategic plan and now expects total oil production of 500,000 bbls/d
net to the company by the end of 2021.
“We delivered strong financial performance in the second quarter as excellent refining results and higher
crude oil prices contributed to substantial cash flow for the period,” said Brian Ferguson, Cenovus
President & Chief Executive Officer.
“Our manufacturing approach to oil sands development is delivering
performance above expectations and we are well positioned for sustained growth with seven new
expansions either under construction or approved. These phases will add about 130,000 barrels per day of
capacity for Cenovus.”
Comments
John Bush
The companies financial performance had been pretty remarkable through the years, this company is considered to be one of the most successful company in this industry.