Debt and Capital Structure (Tables)

9 Months Ended

Sep. 30, 2021

Schedule of Short-Term and Long-Term Debt

A) Short-Term Borrowings


As at	Notes	September 30, 2021		December 31, 2020
Uncommitted Demand Facilities	i		—		—
WRB Uncommitted Demand Facilities	ii		48		121
Sunrise Uncommitted Demand Credit Facility	iii		—		—
Total Debt Principal			48		121

B) Long-Term Debt


As at	Notes	September 30, 2021		December 31, 2020
Revolving Term Debt (1)	i		—		—
Canadian Dollar Unsecured Notes	ii		2,750		—
U.S. Dollar Denominated Unsecured Notes	ii		9,950		7,510
Total Debt Principal			12,700		7,510
Net Debt Premiums (Discounts) and Transaction Costs (2)			286		(69)
Long-Term Debt			12,986		7,441
Less: Current Portion			545		—
Long-Term Portion			12,441		7,441

(1)Revolving term debt may include Bankers’ Acceptances, London Interbank Offered Rate based loans, prime rate loans and U.S. base rate loans.

(2)Includes $369 million net debt premiums related to the Canadian and U.S. dollar denominated unsecured notes assumed at fair value in the Arrangement.

Schedule Remaining Principal Amounts of U.S. Dollar Denominated Unsecured Notes

The principal amounts of the Company’s unsecured notes are:


	September 30, 2021				December 31, 2020
As at	US$ Principal Amount		C$ Principal Amount and Equivalent		US$ Principal Amount		C$ Principal Amount and Equivalent
U.S. Dollar Denominated Unsecured Notes
3.95% due April 15, 2022		246		314		—		—
3.00% due August 15, 2022		179		227		500		637
3.80% due September 15, 2023		115		147		450		573
4.00% due April 15, 2024		269		342		—		—
5.38% due July 15, 2025		666		848		1,000		1,273
4.25% due April 15, 2027		962		1,225		962		1,225
4.40% due April 15, 2029		750		956		—		—
2.65% due January 15, 2032		500		637		—		—
5.25% due June 15, 2037		583		743		583		742
6.80% due September 15, 2037		387		493		—		—
6.75% due November 15, 2039		1,390		1,771		1,390		1,770
4.45% due September 15, 2042		155		198		155		198
5.20% due September 15, 2043		58		74		58		74
5.40% due June 15, 2047		800		1,019		800		1,018
3.75% due February 15, 2052		750		956		—		—
		7,810		9,950		5,898		7,510
Canadian Dollar Unsecured Notes
3.55% due March 12, 2025		—		750		—		—
3.60% due March 10, 2027		—		750		—		—
3.50% due February 7, 2028		—		1,250		—		—
		—		2,750		—		—
Total Unsecured Notes		7,810		12,700		5,898		7,510

Summary of Net Debt to Adjusted EBITDA

Net Debt to Adjusted EBITDA


As at	September 30, 2021		December 31, 2020 (1)
Short-Term Borrowings		48		121
Current Portion of Long-Term Debt		545		—
Long-Term Portion of Long-Term Debt		12,441		7,441
Less: Cash and Cash Equivalents		(2,010)		(378)
Net Debt		11,024		7,184

Net Earnings (Loss)		842		(2,379)
Add (Deduct):
Finance Costs		981		536
Interest Income		(16)		(9)
Income Tax Expense (Recovery)		276		(851)
Depreciation, Depletion and Amortization		4,083		3,464
Exploration Expense		74		91
Unrealized (Gain) Loss on Risk Management		275		56
Foreign Exchange (Gain) Loss, Net		(442)		(181)
Re-measurement of Contingent Payment		588		(80)
(Gain) Loss on Divestitures of Assets		(178)		(81)
Other (Income) Loss, Net		(116)		40
Share of (Income) Loss From Equity-Accounted Affiliates		(40)		—
Adjusted EBITDA (2)		6,327		606

Net Debt to Adjusted EBITDA		1.7x		11.9x

(1) Comparative figures include Cenovus's results prior to the closing of the Arrangement on January 1, 2021, and do not reflect any historical data from Husky.

(2) Calculated on a trailing twelve-month basis.

Summary of Net Debt to Capitalization

Net Debt to Capitalization


As at	September 30, 2021			December 31, 2020 (1)
Net Debt		11,024			7,184
Shareholders’ Equity		24,373			16,707
		35,397			23,891

Net Debt to Capitalization		31	%		30	%

(1) Comparative figures include Cenovus results prior to the closing of the Arrangement on January 1, 2021, and does not reflect any historical data from Husky.