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 last time supplies overwhelmed demand, oilfield service suppliers cut hundreds of thousands of jobs and top firms gushed red ink.
Covey Park co-CEO John Jacobi and Denham Managing Partner Jordan Marye joined the Comstock Resources board following the completion on July 16 of the roughly $2.2 billion acquisition.
“The signal abroad, that Mexico does not respect contracts is very tough, especially when the economy is not going well and you need investors,” said Gonzalo Monroy, an energy analyst.