Shareholders overwhelmingly backed Cenovus’ board and auditor at the company’s annual meeting, with PwC approved as auditor and all director nominees elected. The advisory vote on executive compensation also passed by a wide margin.
CEO Jon McKenzie said Cenovus delivered strong 2025 operating results, including upstream production of 834,000 BOE/day and an exit rate above 970,000 BOE/day. Refinery utilization reached 95%, and the company extended its top-quartile safety performance streak to three years.
Cenovus set an ambitious growth outlook, targeting a 1 million BOE/day exit rate in 2026 and about 1.1 million BOE/day by 2028, while keeping annual capital spending near CAD 5 billion. The company also highlighted the MEG Energy acquisition, downstream control, and more than CAD 3.8 billion returned to shareholders in 2025.
Cenovus Energy (NYSE:CVE) shareholders approved all voting items at the company’s virtual annual meeting, including the appointment of PwC as auditor, the election of directors and a non-binding advisory vote on executive compensation.
Alex Pourbaix, chair of Cenovus’ board, said PwC was appointed auditor with 99.67% of votes cast in favor. Each director nominee was elected to the board, and the company’s approach to executive compensation was approved by 97.39% of votes cast.
The director nominees elected were Stephen Bradley, Keith Casey, Michael Crothers, James Girgulis, Jane Kinney, Eva Kwok, Melanie Little, Richard Marcogliese, Chana Martineau, Jon McKenzie, Claude Mongeau, Alex Pourbaix, Frank Sixt and Rhonda Zygocki.
CEO Highlights 2025 Operating Performance
Jon McKenzie, Cenovus’ president and chief executive officer, told shareholders the company delivered “exceptional performance” in 2025, citing multiple upstream production records and top-quartile downstream reliability.
McKenzie said Cenovus’ upstream production averaged 834,000 barrels of oil equivalent per day in 2025, the highest level in the company’s history and up 3% from 2024. He said that figure did not include the impact of the company’s acquisition of MEG Energy and its Christina Lake asset. Cenovus exited the year producing more than 970,000 BOE per day.
In the downstream business, McKenzie said the company’s refineries operated at a combined utilization rate of 95% across its Canadian and U.S. segments. He also said Cenovus achieved top-quartile process safety performance for the third consecutive year.
McKenzie highlighted several project milestones from the year, including the completion of the Narrows Lake tieback to Christina Lake, facilities work on the Foster Creek optimization project and construction, installation and tie-ins for the West White Rose platform.
MEG Acquisition and Downstream Control
McKenzie said Cenovus completed two significant transactions in 2025. The company closed its acquisition of MEG on Nov. 13, adding 110,000 barrels per day of resource located next to its largest producing SAGD asset. He said consolidation of the Christina Lake area is projected to generate CAD 400 million in annual operating and corporate synergies by 2028, with work already underway.
He also said Cenovus sold its interest in refineries and now has “full operational, commercial, and strategic control” of its downstream business, which he described as a critical component of the company’s heavy oil value chain.
Production Targets and Capital Plans
Looking ahead, McKenzie said Cenovus plans to exit 2026 at a production rate of about 1 million BOE per day. He said the company expects to grow to roughly 1.1 million BOE per day by 2028 as key growth projects come online.
At Foster Creek, McKenzie said the optimization project increased capacity by approximately 30,000 barrels per day and was delivered ahead of schedule. At West White Rose, drilling has commenced, and the company expects first oil in the third quarter of this year. McKenzie said West White Rose is expected to reach peak production of about 45,000 barrels per day net to Cenovus by 2028.
McKenzie also pointed to the Christina Lake North expansion project, which he said is expected to drive production growth of about 40,000 barrels per day by the end of 2028 through the addition of two new steam generators and debottlenecking of water and oil handling capacity.
McKenzie said Cenovus remains financially disciplined and does not expect to change its capital plans in response to short-term commodity price volatility. He said the company tests investments against return thresholds at $45 WTI and expects overall capital spending to remain around CAD 5 billion in both 2026 and 2027.
Shareholder Returns and Debt Priorities
McKenzie said Cenovus returned more than CAD 3.8 billion to shareholders in 2025 through dividends, share repurchases and the redemption of preferred shares. He said the company continues to prioritize the flexibility associated with a CAD 4 billion net debt level, which he described as representing an under-levered balance sheet.
In response to a shareholder question about buybacks, Pourbaix said the company’s capital allocation framework is designed to balance shareholder returns and deleveraging. He said Cenovus targets returning approximately 50% of excess free funds flow to shareholders while net debt is above CAD 6 billion, with the remainder allocated to deleveraging.
Pourbaix said the framework should be viewed over longer time frames rather than quarter to quarter. He added that while returns on buybacks are “not as attractive at high prices,” Cenovus continues to see value in repurchasing shares. He said the company has repurchased 337 million shares at an average price of CAD 23.25 per share.
Questions on Decommissioning Liabilities
Shareholders also raised questions about Cenovus’ decommissioning liabilities and why they were not identified as a critical audit matter in PwC’s audit report.
Ryan Lundeen, assurance partner at PwC, said a critical audit matter under PCAOB standards is not simply any material or complex financial statement area, but one that involves “especially challenging, subjective, or complex auditor judgment.” He said the absence of a critical audit matter related to decommissioning liabilities does not mean the area received less audit attention.
Pourbaix said Cenovus provides disclosure related to decommissioning liabilities, including the undiscounted amount of estimated future cash flows to settle those liabilities. He said the company’s disclosures are made in accordance with IFRS accounting standards.
McKenzie closed the meeting by thanking shareholders, the board, employees and contractors, and said Cenovus remains focused on protecting and extending its competitive advantages, including its low-cost, long-life resource base, conservative capital structure and commitment to shareholder returns.
About Cenovus Energy (NYSE:CVE)
Cenovus Energy Inc is a Canadian integrated energy company engaged in the exploration, development and production of crude oil, natural gas liquids and natural gas, together with downstream refining and marketing activities. Headquartered in Calgary, Alberta, Cenovus operates a mix of oil sands thermal and dilbit assets, conventional oil and gas properties, and owns refining and midstream assets designed to move and process hydrocarbons into finished petroleum products for commercial markets.
The company was originally formed as a spin‑off from Encana Corporation in 2009 and has grown through organic development and strategic acquisitions.
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ContentsKey PointsCEO Highlights 2025 Operating PerformanceMEG Acquisition and Downstream ControlProduction Targets and Capital PlansShareholder Returns and Debt PrioritiesQuestions on Decommissioning…
ContentsKey PointsCEO Highlights 2025 Operating PerformanceMEG Acquisition and Downstream ControlProduction Targets and Capital PlansShareholder Returns and Debt PrioritiesQuestions on Decommissioning…
