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UPDATE 2-Cenovus Energy to lower capex in 2016; no changes to dividend

Published 2015-12-10, 02:13 p/m
© Reuters. UPDATE 2-Cenovus Energy to lower capex in 2016; no changes to dividend
CVX
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COP
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CVE
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* Expects to spend between C$1.4 bln and C$1.6 bln in 2016
* Has no plan to change dividend in 2016 - CEO
* Expects OK for advanced phase of Christina Lake project
soon

(Adds CEO comments, conference call details; updates share
activity)
By Sneha Banerjee
Dec 10 (Reuters) - Canadian oil producer Cenovus Energy Inc
CVE.TO said it expects its capital spending to be 19 percent
less next year than in 2015 but has no plans to change its
dividend.
Oil producers are tightening spending following a 60 percent
drop in crude prices since June last year. Prices hit near
seven-year lows this week after OPEC's decision to keep its high
output target unchanged.
ConocoPhillips (N:COP) COP.N and Chevron Corp (N:CVX) CVX.N announced
cuts to their 2016 budgets earlier this week.

Cenovus said it expects to spend between C$1.4 billion and
C$1.6 billion ($1.03 billion and $1.18 billion) in 2016, down
from C$1.8 billion-C$1.9 billion this year.
The company has already cut 700 jobs and slashed its
dividend by 40 percent this year to 16 Canadian cents per share.

Calgary-based Cenovus said on Thursday it had room to cut
its budget by another C$100 million-C$200 million "if oil prices
were to weaken significantly."
Cenovus, which operates the Foster Creek and Christina Lake
oil sands projects in Alberta with ConocoPhillips, said it
expects to get regulatory approval for an advanced phase
development at Christina Lake soon.
Cenovus's shares were down 1.2 percent at C$18.46 in
afternoon trading. Up to Wednesday, the stock had fallen nearly
22 percent this year.

($1 = C$1.35 Canadian dollars)

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