Cenovus and Suncor have taken on billions of dollars of debt but believe the outlook is beginning to improve
The company’s results Thursday show it produced an average of 400,000 bpd in the second quarter, an 8 per cent increase over the 371,000 bpd it pumped during the same quarter in 2019.
In the second quarter, both West Texas Intermediate and Western Canada Select oil price benchmarks tumbled into negative territory. Particularly painful for heavy oil producers, the WCS price languished below US$5 per barrel for an extended period as commuters stayed home from work and refineries scaled back the amount of oil they were processing. The WCS benchmark traded down 1.5 per cent to US$31.89 per barrel on Thursday, while U.S.
“From our perspective, absolute priority is the balance sheet until we get that debt back down to a level that we’re a lot more comfortable with,” Pourbaix said, noting the company’s goal is to drive its net debt below $5 billionCitibank’s Rao Prashant noted that the sequential improvement in the quarter leaves Cenovus in good position for a second half recovery on the back of rising oil prices.
“We knew that the second quarter would be challenging. Certainly the most challenging in our modern history,” Suncor president and CEO Mark Little said on the company’s second quarter earnings call Thursday.
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