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Highlights
- Cenovus Energy said that it plans to buy back around 146.5 million shares or 10 per cent of its public float.
- The solid financial results of Cenovus Energy were due to an increased total upstream production of 805,000 barrels of oil equivalent per day (boe/d).
- The Calgary-based company achieved a net income of C$ 551 million in Q3 2021 compared to a net loss of C$ 194 million in the third quarter of 2020.
The Calgary-based integrated oil and natural gas company Cenovus Energy Inc. (TSX:CVE) announced solid results for the third quarter of this year and said that it has doubled its dividend.
The company also announced plans to buy back shares as it posted a profit in comparison to a loss in Q3 2020. Cenovus Energy said that it will buy back around 146.5 million shares or 10 per cent of its public float.
The company hopes to achieve the interim net debt target of below 10 billion Canadian dollars. In the quarterly report, the company mentioned that it continued its strong and reliable performance in Q3 2021.
On that's a note, let's take a closer look at the financial performance:
Cenovus Energy’s (TSX:CVE) financial performance
The solid financial results were due to an increased total upstream production of 805,000 barrels of oil equivalent per day (boe/d) and the company generated cash of C$ 2.1 billion from operating activities in Q3 2021.
In the third quarter of this year, free funds flow was C$ 1.7 billion and refinancing transactions enabled the company to reduce its net debt to about C$ 11 billion as of September 30, 2021.
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The Calgary-based company achieved a net income of C$ 551 million in Q3 2021 compared to a net loss of C$ 194 million in the third quarter of 2020.
Also Read: Suncor (TSX:SU) hikes dividend by 100%: An oil stock to buy & hold?
Notably, the production and throughput of oil and natural gas was 655,100 bbls/d, representing an increase of 59 per cent year-over-year (YoY).
As the oil and gas company has strengthened the balance sheet, Cenovus' Board of Directors has declared a dividend of C$ 0.035 per share. The dividend will be payable on December 31, 2021.
Bottom line
The CVE stock has remained on an upward trajectory throughout the year and surged about 92 per cent year-to-date (YTD). During this period, the stock also surpassed the TSX Composite Index's growth of around 58 per cent.
On November 1, the CVE stock clocked an all-time high of C$ 15.21 per share and closed at C$ 14.85 apiece at market close on November 2.
Also Read: Is this the best Canadian Oil & Gas stock to buy right now?
As the company has posted solid third-quarter results, the stock may gain investors' attention and it could set a new high in future.
