v3.26.3
DESCRIPTION OF BUSINESS AND SEGMENTED DISCLOSURES
 9 Months Ended
Sep. 30, 2026
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 are listed on the Toronto Stock Exchange (“TSX”) and the New York Stock Exchange. 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 Limited (“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. 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. On September 30, 2025, Cenovus divested its entire 50 percent interest in the jointly-owned Wood River and Borger refineries held through WRB Refining LP (“WRB”) with operator Phillips 66. The U.S. Refining segment included the WRB results up to the date of divestiture. 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 30,20262025202620252026202520262025
Gross Sales
External Sales 8,6635,1775132124853859,6615,774
Intersegment Sales2,4241,571430217——2,8541,788
11,0876,74894342948538512,5157,562
Royalties
(1,873)(831)(53)(12)(27)(15)(1,953)(858)
Revenues9,2145,91789041745837010,5626,704
Expenses
Purchased Product
626507579161—61,205674
Transportation and Blending
3,7282,4528786753,8222,543
Operating
7676551181271231031,008885
Realized (Gain) Loss on Risk
   Management		(12)1042——(8)12
Operating Margin4,1052,293102413282564,5352,590
Unrealized (Gain) Loss on Risk
   Management
(1)(12)—(6)——(1)(18)
Depreciation, Depletion and
   Amortization		1,087867136125771061,3001,098
Exploration Expense141——1—151
(Income) Loss From Equity-
   Accounted Affiliates		1———(19)(9)(18)(9)
Segment Income (Loss)3,0041,437(34)(78)2691593,2391,518
Downstream
Canadian Refining
U.S. Refining
Total
For the three months ended September 30,
2026
2025
2026
2025
2026
2025
Gross Sales
External Sales1,6391,1986,6377,0818,2768,279
Intersegment Sales30015531303156
1,9391,3536,6407,0828,5798,435
Royalties
——————
Revenues1,9391,3536,6407,0828,5798,435
Expenses
Purchased Product
1,3851,1024,8816,2196,2667,321
Transportation and Blending
——————
Operating
137140383611520751
Realized (Gain) Loss on Risk Management——(1)(1)(1)(1)
Operating Margin4171111,3772531,794364
Unrealized (Gain) Loss on Risk Management
——(3)3(3)3
Depreciation, Depletion and Amortization4640112160158200
Exploration Expense——————
(Income) Loss From Equity-Accounted Affiliates——————
Segment Income (Loss)371711,268901,639161
Corporate and EliminationsConsolidated
For the three months ended September 30,
2026202520262025
Gross Sales
External Sales ——17,93714,053
Intersegment Sales(3,157)(1,944)——
(3,157)(1,944)17,93714,053
Royalties
——(1,953)(858)
Revenues
(3,157)(1,944)15,98413,195
Expenses
Purchased Product
(2,760)(1,855)4,7116,140
Transportation and Blending
(180)(138)3,6422,405
Purchased Product, Transportation and Blending
(2,940)(1,993)8,3538,545
Operating
(83)(42)1,4451,594
Realized (Gain) Loss on Risk Management146517
Unrealized (Gain) Loss on Risk Management
6(4)2(19)
Depreciation, Depletion and Amortization23241,4811,322
Exploration Expense——151
(Income) Loss From Equity-Accounted Affiliates——(18)(9)
Segment Income (Loss)(177)654,7011,744
General and Administrative371220371220
Finance Costs, Net 147154147154
Integration, Transaction and Other Costs27442744
Foreign Exchange (Gain) Loss, Net(54)157(54)157
(Gain) Loss on Divestiture of Assets (96)(106)(96)(106)
Other (Income) Loss, Net(55)(22)(55)(22)
340447340447
Earnings (Loss) Before Income Tax4,3611,297
Income Tax Expense (Recovery)1,00111
Net Earnings (Loss)3,3601,286
Upstream
For the nine months ended
Oil SandsConventionalOffshoreTotal
September 30,
20262025202620252026202520262025
Gross Sales
External Sales25,97215,8741,5109361,5441,17129,02617,981
Intersegment Sales6,7145,2411,376986——8,0906,227
32,68621,1152,8861,9221,5441,17137,11624,208
Royalties
(4,413)(2,281)(108)(44)(76)(60)(4,597)(2,385)
Revenues28,27318,8342,7781,8781,4681,11132,51921,823
Expenses
Purchased Product
2,7731,9951,750951—64,5232,952
Transportation and Blending
11,5088,138250259211411,7798,411
Operating
2,3522,0323323693422733,0262,674
Realized (Gain) Loss on Risk
   Management		4010(7)1——3311
Operating Margin11,6006,6594532981,10581813,1587,775
Unrealized (Gain) Loss on Risk
   Management
(34)(3)4(7)——(30)(10)
Depreciation, Depletion and
   Amortization		3,1762,4504043623123293,8923,141
Exploration Expense187——132319
(Income) Loss From Equity-
   Accounted Affiliates		(27)(38)(1)1(52)(24)(80)(61)
Segment Income (Loss)8,4674,24346(58)8325119,3454,696
Downstream
Canadian Refining
U.S. Refining
Total
For the nine months ended September 30,
202620252026202520262025
Gross Sales
External Sales3,9343,25917,40419,95821,33823,217
Intersegment Sales1,020664521,025666
4,9543,92317,40919,96022,36323,883
Royalties——————
Revenues 4,9543,92317,40919,96022,36323,883
Expenses
Purchased Product
3,7243,21813,58318,06317,30721,281
Transportation and Blending
——————
Operating
4304191,1212,1331,5512,552
Realized (Gain) Loss on Risk Management——24(6)24(6)
Operating Margin8002862,681(230)3,48156
Unrealized (Gain) Loss on Risk Management
——(5)(5)(5)(5)
Depreciation, Depletion and Amortization136139337467473606
Exploration Expense——————
(Income) Loss From Equity-Accounted Affiliates——————
Segment Income (Loss)6641472,349(692)3,013(545)
Corporate and EliminationsConsolidated
For the nine months ended September 30,
2026202520262025
Gross Sales
External Sales ——50,36441,198
Intersegment Sales(9,115)(6,893)——
(9,115)(6,893)50,36441,198
Royalties——(4,597)(2,385)
Revenues (9,115)(6,893)45,76738,813
Expenses
Purchased Product
(7,958)(6,133)13,87218,100
Transportation and Blending
(624)(555)11,1557,856
Purchased Product, Transportation and Blending(8,582)(6,688)25,02725,956
Operating
(264)(255)4,3134,971
Realized (Gain) Loss on Risk Management41(19)98(14)
Unrealized (Gain) Loss on Risk Management
17(50)(18)(65)
Depreciation, Depletion and Amortization72734,4373,820
Exploration Expense——319
(Income) Loss From Equity-Accounted Affiliates116(79)(45)
Segment Income (Loss)(400)3011,9584,181
General and Administrative1,0005701,000570
Finance Costs, Net 522404522404
Integration, Transaction and Other Costs9512395123
Foreign Exchange (Gain) Loss, Net288(196)288(196)
(Gain) Loss on Divestiture of Assets (186)(109)(186)(109)
Other (Income) Loss, Net(148)(54)(148)(54)
1,5717381,571738
Earnings (Loss) Before Income Tax10,3873,443
Income Tax Expense (Recovery)2,587447
Net Earnings (Loss)7,8002,996
B) External Sales by Product
Upstream
For the three months endedOil SandsConventionalOffshoreTotal
September 30,
20262025202620252026202520262025
Crude Oil8,4524,954265471581258,8755,126
Natural Gas and Other13380197142235234565456
NGLs (1)
7814351239226221192
External Sales8,6635,1775132124853859,6615,774
Downstream
Canadian RefiningU.S. RefiningTotal
For the three months ended September 30,
202620252026202520262025
Gasoline42702,9743,3933,0163,463
Distillates (2)
5063662,4642,7922,9703,158
Synthetic Crude Oil651408——651408
Asphalt203197269321472518
Other Products and Services2371579305751,167732
External Sales1,6391,1986,6377,0818,2768,279
Upstream
For the nine months ended
Oil SandsConventionalOffshoreTotal
September 30,
20262025202620252026202520262025
Crude Oil24,99314,71858015661934326,19215,217
Natural Gas and Other3422447566096626631,7601,516
NGLs (1)
6379121741712631651,0741,248
External Sales25,97215,8741,5109361,5441,17129,02617,981
Downstream
Canadian RefiningU.S. RefiningTotal
For the nine months ended September 30,
202620252026202520262025
Gasoline1871818,1519,7068,3389,887
Distillates (2)
1,3941,0686,6107,5998,0048,667
Synthetic Crude Oil1,4161,214——1,4161,214
Asphalt3643975787569421,153
Other Products and Services 5733992,0651,8972,6382,296
External Sales3,9343,25917,40419,95821,33823,217
(1)Third-party condensate sales are included within NGLs.
(2)Includes diesel and jet fuel.
C) Geographical Information
Revenues (1)
Three Months EndedNine Months Ended
For the periods ended September 30,
2026202520262025
Canada9,1895,78727,36617,359
United States 6,4967,17617,55820,697
China299232843757
Consolidated15,98413,19545,76738,813
(1)Revenues from external customers by country are classified based on the jurisdiction in which the selling entities are located.
Non-Current Assets (1)
September 30,
December 31,
As at 2026
2025
Canada47,04647,641
United States2,6212,514
China803939
Indonesia204203
Consolidated50,67451,297
(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 202620252026202520262025
Oil Sands59156833,71534,1491,1561,204
Conventional——2,1562,2023244
Offshore374,1554,008151180
Canadian Refining——2,2272,4524350
U.S. Refining——2,3632,238270287
Corporate and Eliminations——188211340388
Consolidated59457544,80445,2601,9922,153
GoodwillTotal Assets
September 30,December 31,September 30,December 31,
As at 2026202520262025
Oil Sands2,9122,91244,01342,505
Conventional ——2,5892,579
Offshore——4,8634,756
Canadian Refining——2,8862,831
U.S. Refining——5,3554,698
Corporate and Eliminations
——8,3426,055
Consolidated2,9122,91268,04863,424
E) Capital Expenditures (1)
Three Months EndedNine Months Ended
For the periods ended September 30,
2026202520262025
Capital Investment
Oil Sands9746752,6462,082
Conventional141107342302
Offshore
Atlantic109194334674
Asia Pacific9236054
Total Upstream1,2339993,3823,112
Canadian Refining
253310183
U.S. Refining
189120329343
Total Downstream214153430426
Corporate and Eliminations72129
1,4541,1543,8243,547
Acquisitions
Oil Sands3710235
Conventional——133
3711268
Total Capital Expenditures1,4571,1613,8353,815
(1)Includes expenditures on PP&E, E&E assets and capitalized interest.