Oil sands producer Cenovus Energy Inc. (NYSE: CVE) posted a wider quarterly loss on Feb. 13, but said the impact of output cuts will be more than offset by an improvement in Canadian crude prices this year.
Prices of Canadian heavy oil have fallen in relation to the U.S. benchmark due to transportation bottlenecks, but a recent move by the province of Alberta to impose output curbs on oil producers has eased a supply glut.
Cenovus said its production fell 10% to 432,713 barrels of oil equivalent per day (boe/d). Analysts on average were expecting Cenovus to produce about 451,000 boe/d, according to IBES data from Refinitiv.
During the quarter, differentials between Canadian crude and U.S. benchmark prices reached record highs.
Cenovus' net loss widened to C$1.35 billion (US$1.02 billion), or C$1.10 per share, in the fourth quarter ended Dec. 31, from C$776 million, or 63 Canadian cents per share, in the year-ago period. (US$1 = C$1.3231)
The U.S. shale business is feeling the effects of lower crude oil prices, capital constraints imposed by Wall Street investors demanding fiscal discipline and well spacing issues, Mark Papa told investors at a Barclays energy conference in New York.
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