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BRIEF-Cenovus says progressing plan to divest non-core assets

Published 2017-06-20, 06:05 a/m
© Reuters.  BRIEF-Cenovus says progressing plan to divest non-core assets
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June 20 (Reuters) - Cenovus Energy Inc CVE.TO :

* Cenovus - put forward five-year plan that co expects will generate 14% annualized free funds flow growth through 2021 at wti price of US$55 per barrel

* Cenovus Energy Inc - progressing plan to divest non-core assets, targeting between $4 billion and $5 billion in announced sales agreements by end of year

* Cenovus Energy Inc - company is now targeting to reach divestiture agreements by end of 2017 for its entire legacy conventional portfolio

* Cenovus Energy Inc - combined, all of the assets are expected to produce approximately 112,000 barrels of oil equivalent per day (boe/d) in 2017

* Cenovus Energy Inc - plan entails disciplined capital investment to maintain current oil sands production, add barrels from expansion phase g at Christina Lake

* Cenovus Energy Inc - company expects five-year plan will increase production at a 6% compound annual growth rate and reduce its debt

* Co now has approval from its board of directors to hedge up to 75% of forecast crude oil volumes this year and in 2018

* Cenovus Energy Inc - also plans to achieve additional $1 billion cumulative capital, operating, general, administrative cost reductions over next 3 years

* Cenovus Energy Inc - company now has approval from its board of directors to hedge up to 75% of forecast crude oil volumes this year and in 2018

* Cenovus Energy Inc - expects to increase production at its best-in-class oil sands operations to more than 440,000 barrels per day (bbls/d) over next 5 yrs

* Cenovus Energy Inc - focused on returning to target of being below 2 times net debt to adjusted EBITDA in 2019 Source text for Eikon: ID:nGNXNXIRQa Further company coverage: CVE.TO

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