Photo: The Interior / CC BY-SA 3.0
Cenovus Energy crossed the one-million-barrel mark in average daily oil-and-gas production for the first time in the third quarter, as record output and stronger refining results lifted its profit.
The Canadian producer reported average upstream production of 1.024 million barrels of oil equivalent per day, according to its Wednesday results release. Net earnings rose to C$3.36 billion from C$1.29 billion a year earlier.
For businesses buying fuel and investors watching North American energy supply, the report shows more output reaching the market. A production increase at one company does not by itself determine gasoline or diesel prices.
Oil sands set records
Oil sands production reached a quarterly record of 833,000 barrels of oil equivalent per day. Cenovus reported records at Foster Creek, Christina Lake and Sunrise, while average oil sands operating costs fell to C$10.23 per barrel from the preceding quarter.
Its downstream operations processed 437,000 barrels of crude a day, with crude-unit utilization of 92%. Downstream operating margin reached C$1.8 billion, up from C$1.0 billion in the second quarter, reflecting better operations and refining spreads, the company said.
Cenovus returned C$1.9 billion to shareholders during the quarter through dividends and share repurchases. The results are for the three months ended September 30, not today’s oil-market trading.
JBizNews Desk | Calgary
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