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Description of Business and Segmented Disclosures
 9 Months Ended
Sep. 30, 2025
Disclosure Of Reportable Segments [Abstract]  
Description of Business and Segmented Disclosures
1. DESCRIPTION OF BUSINESS AND SEGMENTED DISCLOSURES
Cenovus Energy Inc. (“Cenovus” or the “Company”) is an integrated energy company with crude oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States (“U.S.”).
Cenovus is incorporated under the Canada Business Corporations Act and its common shares and common share purchase warrants are listed on the Toronto Stock Exchange (“TSX”) and the New York Stock Exchange. Cenovus’s cumulative redeemable preferred shares series 1 and 2 are listed on the TSX. The executive and registered office is located at 4100, 225 6 Avenue S.W., Calgary, Alberta, Canada, T2P 1N2. Information on the Company’s basis of preparation for these interim Consolidated Financial Statements is found in Note 2.
Management has determined the operating segments based on information regularly reviewed for the purposes of decision making, allocating resources and assessing operational performance by Cenovus’s chief operating decision maker. The Company’s operating segments are aggregated based on their geographic locations, the nature of the businesses or a combination of these factors. The Company evaluates the financial performance of its operating segments primarily based on operating margin.
The Company operates through the following reportable segments:
Upstream Segments
•Oil Sands, includes the development and production of bitumen and heavy oil in northern Alberta and Saskatchewan. Cenovus’s oil sands assets include Foster Creek, Christina Lake, Sunrise, Lloydminster thermal and Lloydminster conventional heavy oil assets. Cenovus jointly owns and operates pipeline gathering systems and terminals through the equity-accounted investment in Husky Midstream Limited Partnership (“HMLP”). The sale and transportation of Cenovus’s production and third-party commodity trading volumes are managed and marketed through access to capacity on third-party pipelines and storage facilities in both Canada and the U.S. to optimize product mix, delivery points, transportation commitments and customer diversification.
•Conventional, includes assets rich in natural gas liquids (“NGLs”) and natural gas in Alberta and British Columbia in the Edson, Clearwater and Rainbow Lake operating areas, in addition to the Northern Corridor, which includes Elmworth and Wapiti. The segment also includes interests in numerous natural gas processing facilities. Cenovus’s NGLs and natural gas production is marketed and transported, with additional third-party commodity trading volumes, through access to capacity on third-party pipelines, export terminals and storage facilities. These provide flexibility for market access to optimize product mix, delivery points, transportation commitments and customer diversification.
•Offshore, includes offshore operations, exploration and development activities in the east coast of Canada and the Asia Pacific region, representing China and the equity-accounted investment in Husky-CNOOC Madura Ltd. (“HCML”), which is engaged in the exploration for, and production of, NGLs and natural gas in offshore Indonesia.
Downstream Segments
•Canadian Refining, includes the owned and operated Lloydminster upgrading and asphalt refining complex, which converts heavy oil and bitumen into synthetic crude oil, diesel, asphalt and other ancillary products. Cenovus also owns and operates the Bruderheim crude-by-rail terminal and two ethanol plants. The Company’s commercial fuels business across Canada is included in this segment. Cenovus markets its production and third-party commodity trading volumes in an effort to use its integrated network of assets to maximize value.
•U.S. Refining, includes the refining of crude oil to produce gasoline, diesel, jet fuel, asphalt and other products at the wholly-owned Lima, Superior and Toledo refineries. The U.S. Refining segment includes the jointly-owned Wood River and Borger refineries held through WRB Refining LP (“WRB”), a jointly-owned entity with operator Phillips 66. On September 30, 2025, Cenovus divested its entire 50 percent interest in WRB. Cenovus markets its own and third-party refined products.
Corporate and Eliminations
Corporate and Eliminations, includes Cenovus-wide costs for general and administrative, financing activities, gains and losses on risk management for corporate related derivative instruments and foreign exchange. Eliminations include adjustments for feedstock and internal usage of crude oil, natural gas, condensate, other NGLs and refined products between segments; transloading services provided to the Oil Sands segment by the Company’s crude-by-rail terminal; the sale of condensate extracted from blended crude oil production in the Canadian Refining segment and sold to the Oil Sands segment; and unrealized profits in inventory. Eliminations are recorded based on market prices.
A) Results of Operations – Segment and Operational Information
Upstream
For the three months ended
Oil Sands
Conventional
OffshoreTotal
September 30,20252024202520242025202420252024
Gross Sales
External Sales 5,1775,4562122253853715,7746,052
Intersegment Sales1,5711,719217488——1,7882,207
6,7487,1754297133853717,5628,259
Royalties
(831)(889)(12)(15)(15)(25)(858)(929)
Revenues5,9176,2864176983703466,7047,330
Expenses
Purchased Product
5076291614596—6741,088
Transportation and Blending
2,4522,5798680522,5432,661
Operating
65562112714710392885860
Realized (Gain) Loss on Risk
   Management		10(10)2———12(10)
Operating Margin2,2932,46741122562522,5902,731
Unrealized (Gain) Loss on Risk
   Management
(12)(1)(6)2——(18)1
Depreciation, Depletion and
   Amortization		8677841251091061341,0981,027
Exploration Expense12———42144
(Income) Loss From Equity-
   Accounted Affiliates		————(9)(11)(9)(11)
Segment Income (Loss)1,4371,682(78)(99)159871,5181,670
Downstream
Canadian Refining
U.S. Refining
Total
For the three months ended September 30,
2025
2024
2025
2024
2025
2024
Gross Sales
External Sales (1)
1,1981,4827,0817,2148,2798,696
Intersegment Sales1559814156102
1,3531,5807,0827,2188,4358,798
Royalties
——————
Revenues (1)
1,3531,5807,0827,2188,4358,798
Expenses
Purchased Product (1)
1,1021,3536,2196,8547,3218,207
Transportation and Blending
——————
Operating
140167611751751918
Realized (Gain) Loss on Risk Management——(1)(4)(1)(4)
Operating Margin11160253(383)364(323)
Unrealized (Gain) Loss on Risk Management
——3535
Depreciation, Depletion and Amortization4049160115200164
Exploration Expense——————
(Income) Loss From Equity-Accounted Affiliates——————
Segment Income (Loss)711190(503)161(492)
(1)Comparative period reflects certain revisions. See Note 23.
Corporate and EliminationsConsolidated
For the three months ended September 30,
2025202420252024
Gross Sales
External Sales (1)
——14,05314,748
Intersegment Sales(1,944)(2,309)——
(1,944)(2,309)14,05314,748
Royalties
——(858)(929)
Revenues (1)
(1,944)(2,309)13,19513,819
Expenses
Purchased Product (1)
(1,855)(2,169)6,1407,126
Transportation and Blending
(138)(172)2,4052,489
Purchased Product, Transportation and Blending (1)
(1,993)(2,341)8,5459,615
Operating
(42)(42)1,5941,736
Realized (Gain) Loss on Risk Management6(13)17(27)
Unrealized (Gain) Loss on Risk Management
(4)1(19)7
Depreciation, Depletion and Amortization24271,3221,218
Exploration Expense——144
(Income) Loss From Equity-Accounted Affiliates——(9)(11)
Segment Income (Loss)65591,7441,237
General and Administrative220172220172
Finance Costs, Net 154118154118
Integration, Transaction and Other Costs44414441
Foreign Exchange (Gain) Loss, Net157(73)157(73)
(Gain) Loss on Divestiture of Assets (106)(17)(106)(17)
Other (Income) Loss, Net(22)(28)(22)(28)
447213447213
Earnings (Loss) Before Income Tax1,2971,024
Income Tax Expense (Recovery)11204
Net Earnings (Loss)1,286820
(1)Comparative period reflects certain revisions.
Upstream
For the nine months ended
Oil SandsConventionalOffshoreTotal
September 30,
20252024202520242025202420252024
Gross Sales
External Sales15,87416,5259368661,1711,19917,98118,590
Intersegment Sales5,2414,8319861,417——6,2276,248
21,11521,3561,9222,2831,1711,19924,20824,838
Royalties
(2,281)(2,400)(44)(61)(60)(74)(2,385)(2,535)
Revenues18,83418,9561,8782,2221,1111,12521,82322,303
Expenses
Purchased Product
1,9951,3219511,3536—2,9522,674
Transportation and Blending
8,1388,2652592411498,4118,515
Operating
2,0321,8963694322733192,6742,647
Realized (Gain) Loss on Risk
   Management		10231(7)——1116
Operating Margin6,6597,4512982038187977,7758,451
Unrealized (Gain) Loss on Risk
   Management
(3)(13)(7)10——(10)(3)
Depreciation, Depletion and
   Amortization		2,4502,3303623303294213,1413,081
Exploration Expense76——250956
(Income) Loss From Equity-
   Accounted Affiliates		(38)(14)11(24)(34)(61)(47)
Segment Income (Loss)4,2435,142(58)(138)5113604,6965,364
Downstream
Canadian Refining
U.S. Refining
Total
For the nine months ended September 30,
202520242025202420252024
Gross Sales
External Sales (1)
3,2593,68219,95821,72723,21725,409
Intersegment Sales66436527666372
3,9234,04719,96021,73423,88325,781
Royalties——————
Revenues (1)
3,9234,04719,96021,73423,88325,781
Expenses
Purchased Product (1)
3,2183,41518,06319,47321,28122,888
Transportation and Blending
——————
Operating
4197592,1332,0452,5522,804
Realized (Gain) Loss on Risk Management——(6)5(6)5
Operating Margin286(127)(230)2115684
Unrealized (Gain) Loss on Risk Management
——(5)3(5)3
Depreciation, Depletion and Amortization139147467338606485
Exploration Expense——————
(Income) Loss From Equity-Accounted Affiliates——————
Segment Income (Loss)147(274)(692)(130)(545)(404)
(1)Comparative period reflects certain revisions. See Note 23.
Corporate and EliminationsConsolidated
For the nine months ended September 30,
2025202420252024
Gross Sales
External Sales (1)
——41,19843,999
Intersegment Sales(6,893)(6,620)——
(6,893)(6,620)41,19843,999
Royalties——(2,385)(2,535)
Revenues (1)
(6,893)(6,620)38,81341,464
Expenses
Purchased Product (1)
(6,133)(5,756)18,10019,806
Transportation and Blending
(555)(586)7,8567,929
Purchased Product, Transportation and Blending (1)
(6,688)(6,342)25,95627,735
Operating
(255)(237)4,9715,214
Realized (Gain) Loss on Risk Management(19)(10)(14)11
Unrealized (Gain) Loss on Risk Management
(50)31(65)31
Depreciation, Depletion and Amortization73803,8203,646
Exploration Expense——956
(Income) Loss From Equity-Accounted Affiliates16(1)(45)(48)
Segment Income (Loss)30(141)4,1814,819
General and Administrative570593570593
Finance Costs, Net 404394404394
Integration, Transaction and Other Costs123113123113
Foreign Exchange (Gain) Loss, Net(196)81(196)81
(Gain) Loss on Divestiture of Assets (109)(121)(109)(121)
Re-measurement of Contingent Payments—30—30
Other (Income) Loss, Net(54)(158)(54)(158)
738932738932
Earnings (Loss) Before Income Tax3,4433,887
Income Tax Expense (Recovery)447891
Net Earnings (Loss)2,9962,996
(1)Comparative period reflects certain revisions. See Note 23.
B) External Sales by Product
Upstream
For the three months endedOil SandsConventionalOffshoreTotal
September 30,
20252024202520242025202420252024
Crude Oil4,9545,2694733125715,1265,373
Natural Gas and Other8083142107234221456411
NGLs (1)
14310423852679192268
External Sales5,1775,4562122253853715,7746,052
Downstream
Canadian RefiningU.S. RefiningTotal
For the three months ended September 30,
202520242025202420252024
Gasoline701283,3933,5133,4633,641
Distillates (2)
3663952,7922,6043,1582,999
Synthetic Crude Oil408588——408588
Asphalt197208321322518530
Other Products and Services (3)
157163575775732938
External Sales1,1981,4827,0817,2148,2798,696
Upstream
For the nine months ended
Oil SandsConventionalOffshoreTotal
September 30,
20252024202520242025202420252024
Crude Oil14,71815,96315615734326315,21716,383
Natural Gas and Other2442636094536636861,5161,402
NGLs (1)
9122991712561652501,248805
External Sales15,87416,5259368661,1711,19917,98118,590
Downstream
Canadian RefiningU.S. RefiningTotal
For the nine months ended September 30,
202520242025202420252024
Gasoline1813639,70610,6139,88710,976
Distillates (2)
1,0681,1437,5998,1498,6679,292
Synthetic Crude Oil1,2141,323——1,2141,323
Asphalt3974337567531,1531,186
Other Products and Services (3)
3994201,8972,2122,2962,632
External Sales3,2593,68219,95821,72723,21725,409
(1)Third-party condensate sales are included within NGLs.
(2)Includes diesel and jet fuel.
(3)Comparative period reflects certain revisions. See Note 23.
C) Geographical Information
Revenues (1)
Three Months EndedNine Months Ended
For the periods ended September 30,
2025202420252024
Canada5,7876,93717,35920,235
United States (2)
7,1766,60620,69720,366
China232276757863
Consolidated13,19513,81938,81341,464
(1)Revenues from external customers by country are classified based on the jurisdiction in which the selling entities are located.
(2)Comparative periods reflect certain revisions. See Note 23.
Non-Current Assets (1)
September 30,
December 31,
As at
2025
2024
Canada37,88937,006
United States2,5385,902
China1,0061,249
Indonesia230295
Consolidated41,66344,452
(1)Includes exploration and evaluation (“E&E”) assets, property, plant and equipment (“PP&E”), right-of-use (“ROU”) assets, income tax receivable, investments in equity-accounted affiliates, precious metals, intangible assets and goodwill.
D) Assets by Segment
E&E AssetsPP&EROU Assets
September 30,December 31,September 30,December 31,September 30,December 31,
As at
202520242025202420252024
Oil Sands40346124,87324,6469461,018
Conventional20152,2132,2304757
Offshore783,9503,36518795
Canadian Refining——2,4572,5115439
U.S. Refining——2,2595,538290342
Corporate and Eliminations——220278390399
Consolidated43048435,97238,5681,9141,950
GoodwillTotal Assets
September 30,December 31,September 30,December 31,
As at
2025202420252024
Oil Sands2,9232,92331,99431,668
Conventional ——2,5512,610
Offshore——4,6334,089
Canadian Refining——2,9342,901
U.S. Refining——6,6009,517
Corporate and Eliminations
——4,8615,754
Consolidated2,9232,92353,57356,539
E) Capital Expenditures (1)
Three Months EndedNine Months Ended
For the periods ended September 30,
2025202420252024
Capital Investment
Oil Sands6756812,0821,941
Conventional107106302300
Offshore
Atlantic194341674765
Asia Pacific23145444
Total Upstream9991,1423,1123,050
Canadian Refining
334483145
U.S. Refining
120153343320
Total Downstream153197426465
Corporate and Eliminations27922
1,1541,3463,5473,537
Acquisitions
Oil Sands
712357
Conventional—33312
7426819
Total Capital Expenditures1,1611,3503,8153,556
(1)Includes expenditures on PP&E, E&E assets and capitalized interest.