Cenovus Energy Lowers 2025 Production Forecast

Canadian oil and gas producer Cenovus Energy lowered the upper end of its full-year upstream production forecast on Thursday, citing the impact from a temporary shut-in of its Rush Lake facilities.

The company said it responded to a steam release from a casing failure in an injection well in early May, and as a result, the Rush Lake facilities in west-central Saskatchewan have been temporarily shut-in.

Cenovus forecast 2025 upstream production to be between 805,000 barrels of oil equivalent per day and 825,000 boepd, compared with 805,000 to 845,000 boepd projected previously.

For the second quarter, its total upstream production was 765,900 boepd, down from 800,800 boepd a year earlier, reflecting planned turnarounds, maintenance at offshore facilities and short-term production impacts from wildfire activity at Christina Lake.

Wildfires across Alberta in May disrupted operations for several oil producers such as Cenovus, Canadian Natural Resources and MEG Energy, prompting temporary shutdowns and evacuations at multiple sites.

Cenovus' total downstream throughput for the quarter was 665,800 barrels per day, compared with 622,700 bpd a year ago.

Benchmark Brent crude prices were lower during the April-June quarter, from a year earlier, weighed down by weak global demand, market volatility due to tariffs and increased oil supply from OPEC+.

Calgary, Alberta-based Cenovus posted a net income of C$851 million ($614.57 million), or 45 Canadian cents per share, during the three months ended June 30, compared with C$1.0 billion, or 53 Canadian cents per share, a year earlier.

($1 = 1.3847 Canadian dollars)

(Reuters)