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Cenovus Energy Inc. CVE reported fourth-quarter 2025 adjusted earnings per share of 36 cents, which beat the Zacks Consensus Estimate of 28 cents. The bottom line increased from the year-ago quarter’s figure of 5 cents.
Total quarterly revenues of $7.8 billion missed the Zacks Consensus Estimate of $9.7 billion. The top line declined from the year-ago quarter’s level of $8.4 billion.
Strong quarterly earnings were primarily driven by increased total upstream production, led by higher oil sands production. A rise in transportation and blending expenses and a relatively weaker crack environment partially offset the positives.
Cenovus Energy Inc price-consensus-eps-surprise-chart | Cenovus Energy Inc Quote
The quarterly operating margin from the Oil Sands unit totaled C$2.23 billion, down from C$2.34 billion reported a year ago. In the fourth quarter, the company recorded daily oil sands production of 724.3 thousand barrels (Mbbls/d), an increase of 15.6% year over year.
The operating margin at the Conventional unit totaled C$159 million, reflecting a significant increase from C$88 million recorded in the year-ago quarter. The company’s daily conventional production was 26.2 thousand barrels compared with 24.5 thousand barrels a year ago.
The total conventional natural gas production was 860.4 million cubic feet per day (MMcf/d), lower than the 873.3 MMcf/d recorded a year ago.
The Offshore segment generated an operating margin of C$244 million, up from C$242 million in the year-ago quarter. Cenovus recorded daily offshore liquid production of 24 thousand barrels, higher than the 19.5 thousand barrels recorded a year ago.
The total upstream production in the reported quarter was 917.9 thousand barrels of oil equivalent per day (Mboe/d) compared with 816 Mboe/d in the year-earlier quarter.
The operating margin from the Canadian Refining unit was C$68 million, which improved from C$47 million in the fourth quarter of 2024. The segment recorded crude oil processed volumes of 112.9 thousand barrels per day (MBbl/D).
The operating margin from the U.S. Refining unit was C$81 million against a negative operating margin of C$443 million in the prior-year quarter. Crude oil processed volumes totaled 352.6 MBbl/D, higher than 562.3 MBbl/D in the year-ago quarter.
Transportation and blending expenses increased to C$2.66 billion from C$2.61 billion recorded in the fourth quarter of 2024.
Expenses for purchased products decreased to C$4.1 billion from C$6.3 billion in the prior-year quarter.
Cenovus made total capital investment of C$1.36 billion in the quarter under review.
As of Dec. 31, 2025, the Canada-based energy player had cash and cash equivalents of C$2.7 billion and a long-term debt of C$11 billion.
Cenovus provided its full-year 2026 guidance for total upstream production in the band of 945-985 MBoe/d. Total U.S. downstream throughput guidance for 2026 has been updated to 430-450 MBbls/d. The company anticipates capital expenditure to be in the range of $5-$5.3 billion for the entire year.
CVE currently has a Zacks Rank #5 (Strong Sell).
Some top-ranked stocks from the energy sector are Archrock Inc. AROC, Oceaneering International OII and W&T Offshore WTI. While Archrock sports a Zacks Rank #1 (Strong Buy), Oceaneering and W&T Offshore carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.
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.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability, and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its production prospects in the future, which is expected to enhance its revenues.
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This article originally published on Zacks Investment Research (zacks.com).
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