By Adriano Marchese


Cenovus Energy Inc. said it will aim to keep its costs flat or lower while increasing oil production in 2023.

The Calgary, Alberta-based oil and natural gas company said it expects total upstream production to rise between 800,000 and 840,000 barrels of oil equivalent a day, which represents a year-over-year increase of more than 3%.

Total downstream crude throughput is expected to rise about 28% to between 610,000 and 660,000 barrels a day.

Meanwhile, oil sands operating expenses are expected to be between 12.50 Canadian dollars ($9.20) to C$14 per barrel, virtually flat year over year, and U.S. manufacturing operating expenses are forecasted to be in a range of between C$11.25 per barrel to C$13.25 per barrel, nearly 22% lower than a year ago.

Cenovus said it intends to invest between C$4 billion and C$4.5 billion in the year, with around C$2.8 billion earmarked for sustaining capital to maintain base production and support its continuing operations.

Meanwhile, between C$1.2 billion to C$1.7 billion will be used to optimize and grow its operations, including the construction of its West White Rose project in Atlantic Canada, improvement of its oil sands assets and downstream segment to improve reliability and increase margin, it said.

It said general and administrative expenses, not including stock-based compensation, are expected to be in the range of C$550 million to C$600 million, about C$75 million above guidance for 2022.


Write to Adriano Marchese at adriano.marchese@wsj.com


(END) Dow Jones Newswires

12-06-22 0700ET