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Cenovus Energy Inc. CVE reported third-quarter 2025 adjusted earnings per share of 52 cents, which beat the Zacks Consensus Estimate of 40 cents. The bottom line also increased from the year-ago quarter’s figure of 31 cents.
Total quarterly revenues of $9.58 billion beat the Zacks Consensus Estimate of $9.56 billion. However, the top line declined from the year-ago quarter’s level of $10.45 billion.
Better-than-expected quarterly results were primarily driven by increased total upstream production and reduced transportation and blending expenses. However, a decline in offshore liquids production partially offset the positives.
Cenovus Energy Inc price-consensus-eps-surprise-chart | Cenovus Energy Inc Quote
Upstream
The quarterly operating margin from the Oil Sands unit totaled C$2.29 billion, down from C$2.47 billion reported a year ago.
In the third quarter, the company recorded daily oil sands production of 640.6 thousand barrels, an increase of 9.3% year over year.
The operating margin at the Conventional unit totaled C$41 million, reflecting a significant increase from C$12 million recorded in the year-ago quarter. The company’s daily conventional production was 28 thousand barrels compared with 25.7 thousand barrels a year ago. The total Conventional natural gas production from the segment was 593.2 million cubic feet per day (MMcf/d), higher than the 554.8 MMcf/d recorded a year ago.
The Offshore segment generated an operating margin of C$256 million, up from C$252 million in the year-ago quarter. Cenovus recorded daily offshore liquid production of 16.1 thousand barrels, lower than the 18.9 thousand barrels recorded a year ago.
The total upstream production in the reported quarter was 832.9 thousand barrels of oil equivalent per day (Mboe/d) compared with 771.3 Mboe/d in the year-earlier quarter.
Downstream
The operating margin from the Canadian Manufacturing unit was C$111 million, which improved from C$60 million in the third quarter of 2024. The segment recorded Crude Oil processed volumes of 105.4 thousand barrels per day (MBbl/D).
The operating margin from the U.S. Refining unit was C$253 million against a negative operating margin of C$383 million in the prior-year quarter. Crude oil processed volumes totaled 605.3 MBbl/D, higher than 543.5 MBbl/D in the year-ago quarter.
The downstream segment was aided by favorable U.S. crack spreads and an increase in crude throughput in the reported quarter.
Transportation and blending expenses decreased to C$2.54 billion from C$2.66 billion recorded in the third quarter of 2024.
Also, expenses for purchased products decreased to C$8 billion from C$9.3 billion in the prior-year quarter.
Cenovus made a total capital investment of C$1.15 billion in the quarter under review.
As of Sept. 30, 2025, the Canada-based energy player had cash and cash equivalents of C$1.9 billion and a long-term debt of C$7.2 billion.
Cenovus provided its full-year 2025 guidance for total upstream production in the band of 805-825 MBoe/d. Total U.S. downstream throughput for 2025 has been updated to be in the range of 510-515 MBbl/d.
The company anticipates capital expenditure to be in the range of $4.6-$5 billion for the entire year.
CVE currently carries a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the energy sector are Oceaneering International OII, Canadian Natural Resources Ltd. CNQ and FuelCell Energy FCEL. While Oceaneering and Canadian Natural Resources currently sport a Zacks Rank #1 each, FuelCell Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. It has delivered 25 consecutive years of dividend increases, one of the longest streaks among global oil producers.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
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This article originally published on Zacks Investment Research (zacks.com).
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