Expected 2015 cost savings increase to $400 million Third-quarter oil sands production up 17%

Press Releases

Calgary, Alberta (October 29, 2015) – Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) continues to make significant progress in reducing its costs while delivering strong operational performance and oil sands production growth. The company is benefiting from the decisive steps taken over the past year to increase its financial resilience in the face of what is expected to be a prolonged period of lower oil prices.

“We’re delivering on the commitments we made at the outset of 2015 to improve Cenovus’s position as a low-cost producer,” said Brian Ferguson, Cenovus President & Chief Executive Officer. “We’ve realized substantial, sustainable cost reductions, maintained capital discipline and strengthened our balance sheet. We will continue to look for additional opportunities to reduce costs, become more efficient and enhance shareholder value.”

Third quarter highlights

• Maintained financial strength with approximately $4.4 billion of cash and cash equivalents on the balance sheet and a net debt to capitalization ratio of 13%
• Achieved cost reductions that were better than forecast, bringing total anticipated savings for 2015 to approximately $400 million
• On track to achieve $100 million in forecast annual savings, starting in 2016, from workforce reductions
• Reduced oil sands per-unit operating costs by 23% from the third quarter of 2014 and total crude oil per-unit operating expenses by 22%
• Generated cash flow of $444 million, down 55% from the same period a year earlier
• Recognized for strong performance in corporate responsibility as the only North American oil and gas producer to be included in this year’s Dow Jones Sustainability (DJSI) World Index

Production & financial summary

(For the period ended September 30)	2015	2014	% change
Production (before royalties)	Q3	Q3
Oil sands (bbls/d)	146,743	125,089	17
Conventional oil1 (bbls/d)	63,679	74,000	-14
Total oil (bbls/d)	210,422	199,089	6
Natural gas (MMcf/d)	430	489	-12
Financial
($ millions, except per share amounts)
Cash flow2	444	985	-55
Per share diluted	0.53	1.30
Operating earnings (loss)2	(28)	372	-108
Per share diluted	(0.03)	0.49
Net earnings	1,801	354	409
Per share diluted	2.16	0.47
Capital investment3	400	750	-47

• Includes natural gas liquids (NGLs) and the impact of non-core asset divestitures in 2014 and 2015.
• Cash flow and operating earnings are non-GAAP measures as defined in the Advisory.
• Excludes acquisitions and divestitures.

Read More: http://www.cenovus.com/news/news-releases/2015/10-29-expected-2015-cost-savings-increase-to-400-million.pdf

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