Cenovus Energy Inc (CVE)

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$CVE Cenovus Energy posts Q2 miss on lower refining margins, production

Cenovus Energy (CVE -2.7%) slides after Q2 earnings missed expectations, as Alberta's mandated production cuts affected results and higher Canadian crude prices hurt refining margins.

CVE says Q2 total production fell 14.5% Y/Y to 443.3K boe/day, also affected by a planned turnaround at its Christina Lake oil sands project.

Q2 refining and marketing operating margin fell 45% to $198M, primarily because of higher Canadian crude prices from the production cuts as well as higher operating costs and unplanned maintenance at its refineries.

CVE says it continues to pursue a diversified transportation strategy to get its oil to markets where it can achieve the highest price, includes its plan to ramp up its rail capacity to 100K bbl/day in 2019, which remains on schedule.