Cenovus Energy (NYSE:CVE) Releases Quarterly Earnings Results, Beats Expectations By $0.08 EPS

Cenovus Energy (NYSE:CVE) (TSE:CVE) announced its quarterly earnings results on Thursday. The oil and gas company reported $0.36 EPS for the quarter, topping the consensus estimate of $0.28 by $0.08, Zacks reports. Cenovus Energy had a return on equity of 10.73% and a net margin of 6.23%.The business had revenue of $9.44 billion for the quarter, compared to analyst estimates of $10.89 billion. During the same quarter in the previous year, the company earned $0.07 EPS.

Here are the key takeaways from Cenovus Energy’s conference call:

• Cenovus set upstream production records (2025: 834,000 BOE/d; Q4: 918,000 BOE/d; December >970,000 BOE/d including MEG) and delivered operational gains—Foster Creek added ~30,000 b/d ahead of schedule, Sunrise ramped activity and turnaround cycles were extended—supporting near‑term volume growth.
• The MEG acquisition (closed Nov 13) adds >100,000 b/d at Christina Lake; management says corporate synergies (~CAD 120M) are largely captured and forecasts CAD 150M annual synergies in 2026–27 and >CAD 400M by end‑2028, with a 42‑well redevelopment program already underway.
• Downstream ran at high utilization (~95% combined; Canadian ~105%, U.S. ~97%), produced CAD 149M downstream operating margin in Q4 (adjusted ~CAD 235M) and achieved an unusually strong U.S. market capture (~95% in Q4), though management reiterates a long‑term market capture guide of ~70% at a $14 WCS differential.
• Net debt rose to ~CAD 8.3B after the MEG deal (partly offset by CAD 1.9B proceeds from the WRB sale); 2025 capex was CAD 4.9B, 2026 growth spend guidance is modestly lower, and the capital allocation framework balances deleveraging and shareholder returns with a long‑term net debt target of CAD 4B (and enhanced returns planned when net debt reaches CAD 6B).
• Major projects are progressing: West White Rose platform is commissioned and habitable with first oil targeted in Q2 (timeline is tight due to severe weather), while extensions to China gas sales (Liwan fields) are expected to add nearly CAD 2B of incremental free cash flow over the fields’ lives.

Cenovus Energy Trading Up 4.0%

CVE stock traded up $0.90 during midday trading on Thursday, hitting $23.15. The stock had a trading volume of 14,686,807 shares, compared to its average volume of 14,218,060. The company’s 50-day moving average price is $18.45 and its 200 day moving average price is $17.46. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.73 and a quick ratio of 1.18. The firm has a market cap of $43.52 billion, a PE ratio of 18.97 and a beta of 0.48. Cenovus Energy has a 12-month low of $10.23 and a 12-month high of $23.24.

Institutional Investors Weigh In On Cenovus Energy

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Canada Pension Plan Investment Board grew its holdings in shares of Cenovus Energy by 322.7% during the 2nd quarter. Canada Pension Plan Investment Board now owns 15,521,050 shares of the oil and gas company’s stock worth $211,338,000 after purchasing an additional 11,849,355 shares during the period. FIL Ltd lifted its position in Cenovus Energy by 40.0% during the fourth quarter. FIL Ltd now owns 38,533,059 shares of the oil and gas company’s stock valued at $651,880,000 after buying an additional 11,019,212 shares in the last quarter. AQR Capital Management LLC grew its stake in Cenovus Energy by 2,052.7% during the fourth quarter. AQR Capital Management LLC now owns 3,804,849 shares of the oil and gas company’s stock worth $64,370,000 after buying an additional 3,628,105 shares during the period. The Manufacturers Life Insurance Company grew its stake in Cenovus Energy by 28.6% during the fourth quarter. The Manufacturers Life Insurance Company now owns 15,612,441 shares of the oil and gas company’s stock worth $264,676,000 after buying an additional 3,468,398 shares during the period. Finally, Talaria Asset Management Pty Ltd acquired a new stake in shares of Cenovus Energy in the second quarter worth $37,551,000. Hedge funds and other institutional investors own 51.19% of the company’s stock.

Wall Street Analysts Forecast Growth

CVE has been the topic of a number of research analyst reports. Scotiabank downgraded Cenovus Energy from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 20th. Royal Bank Of Canada increased their price objective on shares of Cenovus Energy from $29.00 to $31.00 and gave the company an “outperform” rating in a research note on Wednesday. Morgan Stanley restated an “overweight” rating on shares of Cenovus Energy in a report on Thursday, November 20th. Zacks Research downgraded shares of Cenovus Energy from a “strong-buy” rating to a “hold” rating in a report on Thursday, January 22nd. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Cenovus Energy in a research report on Tuesday, January 27th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $27.33.

Cenovus Energy Company Profile

Cenovus Energy Inc is a Canadian integrated energy company engaged in the exploration, development and production of crude oil, natural gas liquids and natural gas, together with downstream refining and marketing activities. Headquartered in Calgary, Alberta, Cenovus operates a mix of oil sands thermal and dilbit assets, conventional oil and gas properties, and owns refining and midstream assets designed to move and process hydrocarbons into finished petroleum products for commercial markets.

The company was originally formed as a spin‑off from Encana Corporation in 2009 and has grown through organic development and strategic acquisitions.