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Cenovus announces shareholder returns plan, triples dividend

Company releases first-quarter operating and financial results

Calgary, Alberta (April 27, 2022) – Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) is further increasing shareholder returns on the strength of its balance sheet and ongoing reliability of its operating performance. The company’s Board of Directors has approved tripling the base dividend starting with the second quarter of 2022, as well as a plan for additional increases to shareholder returns. Beyond the base dividend increase, Cenovus will target to return 50% of quarterly excess free funds flow to shareholders when reported net debt is less than $9 billion. The company will do this through share buybacks and/or variable dividends while also continuing to pay down the balance sheet. Cenovus has adopted an ultimate net debt target of $4 billion. When reported net debt is at the $4 billion floor, Cenovus will target to return 100% of that quarter’s excess free funds flow to shareholders through share buybacks and/or variable dividends.

“We have consistently delivered on our commitments to our shareholders,” said Alex Pourbaix, Cenovus President & Chief Executive Officer. “After rapidly deleveraging our balance sheet, we are now able to provide a much clearer picture of how we will position Cenovus for the longer term – as a leader in delivering total shareholder returns.”

First-quarter results highlights

  • Total upstream production of approximately 800,000 barrels of oil equivalent per day (BOE/d)1.
  • Total downstream throughput of 502,000 barrels per day (bbls/d).
  • $1.4 billion of cash from operating activities, $2.6 billion of adjusted funds flow, $1.8 billion of free funds flow.
  • Total long-term debt of $11.7 billion and net debt of $8.4 billion as at March 31, 2022.
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