Cenovus Energy Inc (CVE)

[eFinanceMarkets]

$CVE Analysts cautious after Cenovus Energy's big Q2 beat, says asset sales key

Cenovus Energy (CVE -2.2%) shares are pulling back today from gains of as much as 11% yesterday following a big Q2 earnings beat, much of it sparked by the company's $17.7B acquisition of ConocoPhillips oil sands assets earlier this year.

Raymond James analyst Chris Cox suggests investors look past the headline beat on cash flow, which "relative to our estimates, was driven almost entirely by one-time cash tax recoveries and currency-related gains," adding that there were “no meaningful announcements that lead us to temper our bearish outlook on the stock.”

President and CEO Brian Ferguson says CVE expects to announce sales for its Weyburn and Palliser non-core oil assets before the end of the year for proceeds of $4B-$5B.

AltaCorp Capital's Nicholas Lupick says “all eyes remain on assets sales,” while noting that the company’s financial and operating results were positive.