CALGARY, Alberta — February 19, 2026 — Leads & Copy — Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) has announced its financial and operating results for the fourth quarter and full year of 2025.
The company reported approximately $2.4 billion in cash from operating activities, $2.7 billion in adjusted funds flow, and $1.3 billion in free funds flow for the quarter. The operating results included record Upstream production of 917,900 barrels of oil equivalent per day (BOE/d) and Downstream crude throughput of 465,500 barrels per day (bbls/d), representing an overall utilization rate of 98%.
Highlights from the report include:
Upstream production reached 917,900 BOE/d in the fourth quarter, a 5% increase from the prior year, excluding the impact of production associated with the acquisition of MEG Energy Corp. (MEG). December production hit a monthly record rate of over 970,000 BOE/d.
Record quarterly Oil Sands production of 726,600 BOE/d was achieved, including record rates at Foster Creek and Sunrise.
Downstream performance remained strong, with fourth-quarter crude throughput of 465,500 bbls/d, representing 98% utilization and a U.S. Refining adjusted market capture of 106%.
The Foster Creek optimization project was completed, delivering incremental production of approximately 30,000 bbls/d ahead of schedule.
The acquisition of MEG was completed in the fourth quarter, with integration and initial synergy capture initiatives progressing. Cenovus expects to deliver $150 million of annual synergies in 2026 and 2027, growing to over $400 million annually in 2028 and beyond.
The company returned $1.1 billion to shareholders in the fourth quarter, including $714 million through common share purchases and $380 million through common and preferred share dividends.
According to Jon McKenzie, Cenovus President & Chief Executive Officer, Cenovus’s people and assets delivered an exceptional year in 2025, with record Upstream production, strong Downstream performance, and the acquisition of MEG. He added that through disciplined growth and operational execution, the company is well positioned to continue delivering sustainable value for shareholders while advancing its long‑term strategy.
Cenovus’s total revenues were $10.9 billion in the fourth quarter, down from $13.2 billion in the third quarter of 2025. Upstream revenues were $7.6 billion, an increase from $6.7 billion in the previous quarter, while Downstream revenues were $5.3 billion, a decrease from $8.4 billion in the third quarter.
Total operating margin was $2.8 billion, compared with $3.0 billion in the previous quarter. Upstream operating margin was $2.6 billion, in line with the third quarter due to higher production and lower per-unit operating costs, partially offset by a decrease in benchmark oil prices. Downstream operating margin was $149 million, a decrease from $364 million in the previous quarter, primarily due to lower market crack spreads. Operating margin in the U.S. Refining segment was $81 million, which included a $67 million benefit from the receipt of proceeds related to a pipeline settlement, a $134 million inventory holding loss and $14 million of turnaround expenses.
Total Upstream production was 917,900 BOE/d in the fourth quarter, up from 832,900 BOE/d in the third quarter. Christina Lake production was 308,900 bbls/d compared with 251,700 bbls/d in the prior quarter, as a result of the acquisition of MEG, which closed on November 13, 2025. Foster Creek production was 220,100 bbls/d, up from 215,400 bbls/d in the third quarter, as volumes from the Foster Creek optimization project continued to ramp up ahead of schedule. Sunrise production was 60,300 bbls/d compared with 52,400 bbls/d in the third quarter, following the completion of planned maintenance in the prior quarter.
Production from the Lloydminster thermal assets was 106,900 bbls/d compared with 95,700 bbls/d in the prior quarter, partly as a result of strong performance from a successful redevelopment well program in the area. In the fourth quarter, the Rush Lake facilities in west-central Saskatchewan successfully restarted production and a phased ramp-up is progressing as expected. Lloydminster conventional heavy oil output was 28,100 bbls/d, compared with 25,400 bbls/d in the third quarter.
Production in the Conventional segment was 120,400 BOE/d, a decrease from 126,900 BOE/d in the previous quarter as a result of unplanned maintenance and December weather-related shut-ins.
In the Offshore segment, production was 70,900 BOE/d compared with 63,200 BOE/d in the third quarter. In Asia Pacific, production volumes were 54,000 BOE/d, higher than 51,900 BOE/d in the previous quarter, following the conclusion of maintenance activity in China. In the Atlantic region, production was 16,900 bbls/d, up from 11,300 bbls/d in the prior quarter. Subsequent to the quarter, gas sales agreements relating to the Liuhua 29-1 and Liuhua 34-2 fields were extended to enable gas sales through the end of the production periods of each field.
Total Downstream crude throughput in the fourth quarter was 465,500 bbls/d. Crude throughput in Canadian Refining was 112,900 bbls/d, representing a utilization rate of 105%, compared with 105,400 bbls/d in the previous quarter.
In U.S. Refining, crude throughput was 352,600 bbls/d, compared with 605,300 bbls/d in the third quarter as a result of the disposition of Cenovus’s interest in WRB Refining LP (WRB) which closed on September 30, 2025. Fourth-quarter crude throughput represents a utilization rate of 97%. U.S. Refining revenues were $4.2 billion, down from $7.1 billion in the prior quarter. Adjusted market capture in U.S. Refining was 106%, compared with 65% in the third quarter, driven by strong asset reliability, seasonal product pricing mix impacts and a pipeline settlement received in the quarter. Excluding the impact of the pipeline settlement, adjusted market capture in the fourth quarter would have been approximately 11% lower.
Cash from operating activities in the fourth quarter increased to approximately $2.4 billion from $2.1 billion in the third quarter. Adjusted funds flow was $2.7 billion, in line with the prior quarter, and excess free funds flow (EFFF) was a shortfall of $1.6 billion, compared with EFFF of $745 million in the prior quarter as a result of the MEG acquisition. Net earnings in the fourth quarter decreased to $934 million from $1.3 billion in the previous quarter. Fourth-quarter financial results were driven by higher Upstream production and sales, and strong execution in the Downstream, offset by lower benchmark oil prices and market crack spreads.
Long-term debt, including the current portion, was $11.0 billion as at December 31, 2025. Net debt was $8.3 billion as at December 31, 2025, an increase from the previous quarter, as a result of the closing of the MEG acquisition, partially offset by proceeds received from the sale of WRB. The company continues to steward toward a long-term net debt target of $4.0 billion.
In the Oil Sands segment, the Foster Creek optimization project was successfully completed ahead of schedule, which has delivered incremental production of approximately 30,000 bbls/d. At Christina Lake, since achieving first oil at Narrows Lake mid-year 2025, production ramp up has been progressing to plan. The Christina Lake North expansion project is on track to deliver increased steam capacity and production volumes of approximately 40,000 bbls/d by 2028. At Sunrise, the first of the new well pads on the east development area is currently steaming, with three new well pads from this area expected to come online in 2026.
At West White Rose, commissioning of the platform has continued to make significant progress despite challenging offshore weather conditions, with construction and welding complete and systems integration testing underway. First oil is anticipated in the second quarter.
In 2025, Cenovus’s total Upstream production averaged 834,200 BOE/d, compared with 797,200 BOE/d in 2024, including record annual volumes from the Oil Sands assets. Total Downstream throughput averaged 626,600 bbls/d in 2025, compared with 646,900 bbls/d in 2024.
Total revenues were $49.7 billion in 2025 and total operating margin was $10.6 billion compared with revenues of $54.3 billion and total operating margin of $10.8 billion in 2024.
Cash from operating activities was $8.2 billion for 2025 compared with $9.2 billion in 2024. Adjusted funds flow was $8.9 billion and free funds flow was $4.0 billion. Full-year net earnings for 2025 were $3.9 billion compared with $3.1 billion in 2024.
Total capital investment for 2025 was $4.9 billion.
As at December 31, 2025, Cenovus’s total proved and total proved plus probable reserves were approximately 6.1 billion BOE and 9.6 billion BOE, respectively.
The Board of Directors has declared a quarterly base dividend of $0.20 per common share, payable on March 31, 2026, to shareholders of record as of March 13, 2026. The Board has also declared a quarterly dividend on each of the Cumulative Redeemable First Preferred Shares – Series 1 and Series 2 – payable on March 31, 2026, to shareholders of record as of March 13, 2026.
In the fourth quarter, the company returned $1.1 billion to shareholders, composed of $714 million from its purchase of 28.9 million shares through its normal course issuer bid and $380 million through common and preferred share dividends.
Cenovus will host a conference call today, February 19, 2026, starting at 9 a.m. MT (11 a.m. ET).
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Source: Cenovus Energy Inc.
