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6-K 1 form6-kfeb152024q42023.htm 6-K Document

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 
under the Securities Exchange Act of 1934
 
For February 2024
Commission File Number:  1-34513

CENOVUS ENERGY INC.
(Translation of registrant’s name into English)
4100, 225 6 Avenue S.W.
Calgary, Alberta, Canada T2P 1N2
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F  ☐    Form 40-F  ☒
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):   ☐
DOCUMENTS FILED AS PART OF THIS FORM 6-K
See the Exhibit Index to this Form 6-K.



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date:  February 15, 2024
 
CENOVUS ENERGY INC.
(Registrant)

By: /s/ Christine D. Lee
Name: Christine D. Lee
Title: Assistant Corporate Secretary




Form 6-K Exhibit Index
 
Exhibit No.
News Release dated February 15, 2024
Interim Consolidated Financial Statements (unaudited) for the period ended December 31, 2023


EX-99.1 2 q42023newsrelease.htm EX-99.1 Document
Exhibit 99.1
News release

logo1.gif

Cenovus announces fourth-quarter and full-year 2023 results

Calgary, Alberta ([February 15, 2024]) – Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) continued to deliver strong operational performance across the portfolio in the fourth quarter of 2023. The company's upstream assets performed exceptionally well, achieving the second-highest quarterly production rates in Cenovus’s history. In its downstream business, the company continued to build operating momentum at its wholly-owned refineries. Upstream and downstream results were negatively impacted by a rapid decline in commodity prices and refinery crack spreads in the quarter. This was compounded by the cost of processing crude oil in the downstream that was purchased in prior periods at higher prices.

“As expected, upstream operating performance was excellent through the final months of the year. This period also marked the second full quarter that our full suite of operated refining assets were available to us and I am very pleased with our progress,” said Jon McKenzie, Cenovus President & Chief Executive Officer. “With the work done in 2023, we are well positioned to continue capturing more margin across our businesses.”

Fourth-quarter and year-end highlights

•Achieved a strong upstream exit rate in 2023, with fourth quarter average production of 809,000 barrels of oil equivalent per day (BOE/d)1.
•Returned a total of $731 million to shareholders in the fourth quarter, including the payment of the remaining warrant purchase liability. In 2023, returned $2.8 billion to shareholders, including $1.1 billion through share buybacks, $1.0 billion through common and preferred share dividends and $711 million on the purchase and cancellation of common share warrants.
•Reduced net debt by $916 million in the fourth quarter, to $5.1 billion. Long-term debt, including the current portion, was $7.1 billion at the end of the fourth quarter, a reduction of $1.6 billion compared with year-end 2022, and reflects the continued strengthening of our capital structure with the repurchase of US$1 billion of long-term debt in 2023.


Financial, production & throughput summary
For the period ended December 31
2023 Q4 2023 Q3 2022 Q4 2023 FY 2022 FY
Financial ($ millions, except per share amounts)
Cash from (used in) operating activities 2,946 2,738 2,970 7,388 11,403
Adjusted funds flow2
2,062 3,447 2,346 8,803 10,978
Per share (diluted)2
1.09 1.81 1.19 4.57 5.47
Capital investment 1,170 1,025 1,274 4,298 3,708
Free funds flow2
892 2,422 1,072 4,505 7,270
Excess free funds flow2
471 1,989 786
Net earnings (loss) 743 1,864 784 4,109 6,450
Per share (diluted) 0.39 0.97 0.39 2.12 3.20
Long-term debt, including current portion 7,108 7,224 8,691 7,108 8,691
Net debt 5,060 5,976 4,282 5,060 4,282
Production and throughput (before royalties, net to Cenovus)
Oil and NGLs (bbls/d)1
662,600 652,400 664,900 640,000 641,900
Conventional natural gas (MMcf/d) 876.3 867.4 852.0 832.6 866.1
Total upstream production (BOE/d)1
808,600 797,000 806,900 778,700 786,200
Total downstream throughput (bbls/d)
579,100 664,300 473,300 560,400 493,700
1 See Advisory for production by product type.
2 Non-GAAP financial measure or contains a non-GAAP financial measure. See Advisory.
CENOVUS ENERGY NEWS RELEASE | 1



Fourth-quarter results

Operating results1

Cenovus’s total revenues were approximately $13.1 billion in the fourth quarter of 2023, down from $14.6 billion in the third quarter. Upstream revenues were about $6.9 billion, a decrease from $7.6 billion in the previous quarter, while downstream revenues were approximately $8.4 billion, compared with $9.7 billion in the third quarter of 2023. Total operating margin3 was about $2.2 billion, compared with $4.4 billion in the third quarter. Upstream operating margin4 was approximately $2.5 billion, a decrease from $3.4 billion in the previous quarter, primarily driven by a wider light-heavy differential and lower Brent and West Texas Intermediate (WTI) crude oil prices. Cenovus had a downstream operating margin4 shortfall of $304 million, compared with an operating margin of $922 million in the third quarter. Operating margin in U.S. Refining was impacted by approximately $430 million comprising first-in, first-out (FIFO) losses and a non-cash write-down of refined product and crude oil inventory.

Total upstream production was 808,600 BOE/d in the fourth quarter, an increase of approximately 12,000 barrels per day (bbls/d) from the third quarter, as the company progressed the start-up of new oil sands well pads and the Terra Nova field returned to production in November. Foster Creek volumes increased to 198,800 bbls/d, from 189,300 bbls/d in the third quarter and Christina Lake production was 239,600 bbls/d, in line with the third quarter. Sunrise produced 50,100 bbls/d and continued to show strong results from its redevelopment program. At the Lloydminster thermal projects, production of 106,600 bbls/d was in line with the prior quarter. Overall, Oil Sands operating costs per barrel were $10.96, a reduction of 13% from the third quarter of 2023, reflecting higher sales volumes and lower natural gas prices.

Production in the Conventional segment was 123,800 BOE/d in the fourth quarter, a decrease from 127,200 BOE/d in the third quarter. Cenovus experienced higher production rates from certain wells in the third quarter following shut-ins that occurred in the second quarter of 2023 due to the Alberta wildfires.

In the Offshore segment, production was 70,200 BOE/d compared with 66,400 BOE/d in the third quarter. In Asia Pacific, sales volumes increased in the fourth quarter, reflecting production from the MAC field in Indonesia that began in the third quarter of 2023. In the Atlantic region, production was 9,700 bbls/d compared with 8,900 bbls/d in the prior quarter as the non-operated Terra Nova floating production, storage and offloading (FPSO) vessel resumed production offshore Newfoundland and Labrador.

Crude throughput in the Canadian Refining segment was 100,300 bbls/d in the fourth quarter, compared with crude throughput of 108,400 bbls/d in the third quarter. Throughput was reduced primarily due to an unplanned outage at the Lloydminster Upgrader in October, which returned to full rates in November.

In U.S. Refining, crude throughput was 478,800 bbls/d in the fourth quarter, compared with crude throughput of 555,900 bbls/d in the third quarter. Throughput was reduced primarily due to planned turnaround activity at the non-operated Borger Refinery and an unplanned outage delaying the start-up of the refinery post-turnaround. The Lima Refinery also underwent planned maintenance in the fourth quarter and a temporary unplanned outage. In response to the exceptionally weak refined products pricing environment in December, the company took the opportunity to economically optimize throughput across its refining network.



3 Non-GAAP financial measure. Total operating margin is the total of Upstream operating margin plus Downstream operating margin. See Advisory.
4 Specified financial measure. See Advisory.     
CENOVUS ENERGY NEWS RELEASE | 2        



Financial results

Fourth-quarter cash from operating activities, which includes changes in non-cash working capital, was about $2.9 billion, compared with $2.7 billion in the third quarter of 2023. Adjusted funds flow was approximately $2.1 billion, compared with $3.4 billion in the prior period and free funds flow was $892 million, a decrease from $2.4 billion in the third quarter. Fourth-quarter financial results were impacted by lower refined product pricing in the U.S. and lower price realizations in the Oil Sands segment, driven by wider light-heavy crude oil differentials. The December 2023 average Chicago 3-2-1 crack was US$7.65 per barrel, the lowest monthly average since 2020.

Net earnings in the fourth quarter were $743 million, compared with $1.9 billion in the previous quarter. The decrease in net earnings was primarily due to lower operating margin, which includes a non-cash write-down of $89 million in refined product inventory and crude oil inventory as a result of lower market pricing anticipated in the first quarter of 2024. These factors were partially offset by lower income taxes, lower general and administrative expenses due to lower long-term incentive costs and an unrealized foreign exchange gain compared with an unrealized loss in the third quarter.

Long-term debt, including the current portion, was reduced to $7.1 billion at December 31, 2023 compared with $7.2 billion at September 30, 2023, and $8.7 billion at December 31, 2022, mainly as a result of the company’s purchase of US$1.0 billion of outstanding notes in the third quarter of 2023. Net debt was approximately $5.1 billion at December 31, 2023, a decrease from $6.0 billion at September 30, 2023, primarily due to a draw in non-cash working capital in the quarter as a result of decreasing commodity prices and a volumetric draw of product in inventory as well as free funds flow of $892 million offset by shareholder returns of $731 million. Cenovus continues to make progress towards its net debt target of $4.0 billion.

Capital investment of $1.2 billion in the fourth quarter was primarily directed towards sustaining production in the Oil Sands segment, tie-ins and infrastructure projects in the Conventional business and sustaining activities in the Downstream segments. In addition, the company continues to progress its growth and optimization projects, including the West White Rose project, the tie-back of Narrows Lake to Christina Lake and Sunrise and Foster Creek optimizations.

Full-year results

In 2023, Cenovus’s total upstream production averaged 778,700 BOE/d, compared with 786,200 BOE/d in 2022, which reflects the impact of wildfire activity in Alberta in the second quarter of 2023 as well as the timing of sustaining well pads in the Oil Sands segment. Oil Sands crude oil production was 593,400 bbls/d, including 186,300 bbls/d at Foster Creek and 237,400 bbls/d at Christina Lake. Full-year production from the Lloydminster thermal projects was 104,100 bbls/d compared with 99,900 bbls/d in 2022, reflecting a full year of production from the company’s Spruce Lake North facility. Production from Sunrise was 48,900 bbls/d compared with 31,300 bbls/d in 2022, with the increase largely driven by the acquisition of the remaining 50% working interest in Sunrise, which closed in August 2022. Conventional production was 119,900 BOE/d compared with 127,200 BOE/d in 2022, with the decrease mainly related to the wildfire activity in Alberta in 2023. Offshore total production was 63,400 BOE/d, compared with 70,300 BOE/d in the prior year, reflecting lower production from the Atlantic region primarily due to turnaround work in 2023 and the unplanned outage in China in the second quarter of 2023.

U.S. Refining crude oil throughput increased to 459,700 bbls/d in 2023 compared with 400,800 bbls/d in 2022, reflecting the acquisition of the remaining 50% working interest in the Toledo Refinery and the restart of the Superior Refinery in 2023. In addition, 2022 throughput was impacted by higher levels of planned and unplanned maintenance.

CENOVUS ENERGY NEWS RELEASE | 3


Total revenues were about $52.2 billion in 2023 and total operating margin was $11.0 billion compared with revenues of $66.9 billion and total operating margin of $14.3 billion in 2022. Year-over-year decreases in both total revenues and total operating margin were largely related to lower commodity prices.

Cash from operating activities was $7.4 billion for 2023 compared with $11.4 billion in 2022. Adjusted funds flow was $8.8 billion and free funds flow was $4.5 billion. Total capital investment for 2023 was $4.3 billion, primarily concentrated on sustaining production at the company’s upstream assets, the construction of the West White Rose project and refining reliability initiatives. Full-year net earnings for 2023 were about $4.1 billion compared with $6.5 billion in 2022, primarily due to lower commodity prices.

Reserves

Cenovus’s proved and probable reserves are evaluated each year by independent qualified reserves evaluators. At the end of 2023, Cenovus’s total proved and total proved plus probable reserves were approximately 5.9 billion BOE and 8.7 billion BOE respectively, relatively unchanged compared to the prior year. Total proved and total proved plus probable bitumen reserves were approximately 5.4 billion barrels and approximately 7.9 billion barrels respectively, both relatively unchanged compared to the prior year. At year-end 2023, Cenovus had a proved reserves life index of approximately 21 years and a proved plus probable reserves life index of approximately 31 years.

More details about Cenovus’s reserves and other oil and gas information are available in the Advisory and the Management’s Discussion & Analysis (MD&A), Annual Information Form (AIF) and Annual Report on Form 40-F for the year ended December 31, 2023, available on SEDAR+ at sedarplus.ca, EDGAR at sec.gov and Cenovus’s website at cenovus.com.

Cenovus year-end disclosure documents

Today, Cenovus is filing its audited Consolidated Financial Statements, MD&A and AIF with Canadian securities regulatory authorities. The company is also filing its Annual Report on Form 40-F for the year ended December 31, 2023 with the U.S. Securities and Exchange Commission. Copies of these documents will be available on SEDAR+ at sedarplus.ca, EDGAR at sec.gov and the company's website at cenovus.com under Investors. They can also be requested free of charge by emailing investor.relations@cenovus.com.
CENOVUS ENERGY NEWS RELEASE | 4


Dividend declarations and share purchases

The Board of Directors has declared a quarterly base dividend of $0.14 per common share, payable on March 28, 2024 to shareholders of record as of March 15, 2024. In addition, the Board has declared a quarterly dividend on each of the Cumulative Redeemable First Preferred Shares – Series 1, Series 2, Series 3, Series 5 and Series 7 – payable on April 1, 2024 to shareholders of record as of March 15, 2024 as follows:

Preferred shares dividend summary
Share series Rate (%) Amount ($/share)
Series 1 2.577 0.16106
Series 2 6.772 0.42094
Series 3 4.689 0.29306
Series 5 4.591 0.28694
Series 7 3.935 0.24594

All dividends paid on Cenovus’s common and preferred shares will be designated as “eligible dividends” for Canadian federal income tax purposes. Declaration of dividends is at the sole discretion of the Board and will continue to be evaluated on a quarterly basis.

Cenovus’s shareholder returns framework has a target of returning 50% of excess free funds flow to shareholders for quarters where the ending net debt is between $9.0 billion and $4.0 billion. In the fourth quarter, the company returned $731 million to shareholders, composed of $111 million for the remaining payment of the common share warrants obligation, $350 million through its normal course issuer bid (NCIB) and $270 million through common and preferred share dividends. In 2023, the company returned $2.8 billion to shareholders through its NCIB, common and preferred share dividends and the purchase and cancellation of common share warrants.

2024 planned maintenance

The following table provides details on planned maintenance activities at Cenovus assets through 2024 and anticipated production or throughput impacts.

2024 planned maintenance
Potential quarterly production/throughput impact (Mbbls/d)
Q1
Q2
Q3
Q4
Annualized impact
Upstream
Oil Sands
2-3
50 - 60
13 - 16
Atlantic
8-10 8-10 8-10 5-7
Conventional
3-5 4-6 2-4
Downstream
Canadian Refining
42 - 46
10-12
U.S Refining
20 - 24
12-16
30 - 34
56 - 60
30 - 35

Sustainability

In 2023, Cenovus made progress in several of its environmental, social and governance focus areas. The company announced a new milestone to reduce absolute methane emissions in its upstream operations by 80 percent by year-end 2028, from a 2019 baseline. In addition, Cenovus has reached its target of spending at least $1.2 billion with Indigenous businesses between 2019 and year-end 2025 and has achieved its aspiration to have at least 40% representation from designated groups among
CENOVUS ENERGY NEWS RELEASE | 5


non-management members of the Board of Directors, including at least 30% women, by year-end 2025.

Cenovus continues to work with its peers in the Pathways Alliance to advance company-specific projects in order to achieve its overall emissions reduction target. Additional certainty about shared funding commitments from governments is required for Cenovus and the Pathways Alliance to move forward with the large-scale capital investments necessary to meet their emissions reduction goals.

Chief Sustainability Officer update

Cenovus Chief Sustainability Officer & Executive Vice-President, Stakeholder Engagement, Rhona DelFrari, will be taking a one-year sabbatical starting May 2, 2024. Jeff Lawson, Cenovus Senior Vice-President, Corporate Development, will take on Rhona’s responsibilities and join the executive team during her absence.


Conference call today

9 a.m. Mountain Time (11 a.m. Eastern Time)

Cenovus will host a conference call today, February 15, 2024, starting at 9 a.m. MT (11 a.m. ET).
To join the conference call without operator assistance, please register here approximately 5 minutes in advance to receive an automated call-back when the session begins.

Alternatively, you can dial 888-664-6383 (toll-free in North America) or 416-764-8650 to reach a live operator who will join you into the call. A live audio webcast will also be available and will be archived for approximately 90 days.


Advisory

Basis of Presentation

Cenovus reports financial results in Canadian dollars and presents production volumes on a net to Cenovus before royalties basis, unless otherwise stated. Cenovus prepares its financial statements in accordance with International Financial Reporting Standards (IFRS) Accounting Standards.

Barrels of Oil Equivalent

Natural gas volumes have been converted to barrels of oil equivalent (BOE) on the basis of six thousand cubic feet (Mcf) to one barrel (bbl). BOE may be misleading, particularly if used in isolation. A conversion ratio of one bbl to six Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil compared with natural gas is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is not an accurate reflection of value.







CENOVUS ENERGY NEWS RELEASE | 6


Product types

Product type by operating segment
Three months ended
December 31, 2023
Full year ended
December 31, 2023
Oil Sands
Bitumen (Mbbls/d) 595.1 576.7
Heavy crude oil (Mbbls/d) 17.5 16.7
Conventional natural gas (MMcf/d) 12.3 11.9
Total Oil Sands segment production (MBOE/d) 614.6 595.4
Conventional
Light crude oil (Mbbls/d) 6.1 5.9
Natural gas liquids (Mbbls/d) 22.8 21.7
Conventional natural gas (MMcf/d) 569.6 554.1
Total Conventional segment production (MBOE/d) 123.8 119.9
Offshore
Light crude oil (Mbbls/d) 9.7 8.2
Natural gas liquids (Mbbls/d) 11.4 10.8
Conventional natural gas (MMcf/d) 294.4 266.6
Total Offshore segment production (MBOE/d) 70.2 63.4
Total upstream production (MBOE/d) 808.6 778.7

Forward‐looking Information

This news release contains certain forward‐looking statements and forward‐looking information (collectively referred to as “forward‐looking information”) within the meaning of applicable securities legislation about Cenovus’s current expectations, estimates and projections about the future of the company, based on certain assumptions made in light of the company’s experiences and perceptions of historical trends. Although Cenovus believes that the expectations represented by such forward‐looking information are reasonable, there can be no assurance that such expectations will prove to be correct.

Forward‐looking information in this document is identified by words such as “anticipate”, “continue”, “deliver”, “focus”, “progress”, and “will” or similar expressions and includes suggestions of future outcomes, including, but not limited to, statements about: performance for the rest of 2024 and beyond; market pricing; capturing margin; achieving net debt of $4.0 billion; excess free funds flow under the shareholder returns framework; progressing growth and optimization projects; planned turnaround activities; dividend payments; advancing company-specific and Pathways Alliance emissions reductions projects; and Cenovus’s 2024 corporate guidance available on cenovus.com.

Developing forward‐looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to Cenovus and others that apply to the industry generally. The factors or assumptions on which the forward‐looking information in this news release are based include, but are not limited to: the allocation of free funds flow to reducing net debt; commodity prices, inflation and supply chain constraints; Cenovus’s ability to produce on an unconstrained basis; Cenovus’s ability to access sufficient insurance coverage to pursue development plans; Cenovus’s ability to deliver safe and reliable operations and demonstrate strong governance; and the assumptions inherent in Cenovus’s 2024 Guidance available on cenovus.com.

CENOVUS ENERGY NEWS RELEASE | 7


The risk factors and uncertainties that could cause actual results to differ materially from the forward‐looking information in this news release include, but are not limited to: the accuracy of estimates regarding commodity production and operating expenses, inflation, taxes, royalties, capital costs and currency and interest rates; risks inherent in the operation of Cenovus’s business; and risks associated with climate change and Cenovus’s assumptions relating thereto and other risks identified under “Risk Management and Risk Factors” and “Advisory” in Cenovus’s Management’s Discussion and Analysis (MD&A) for the year ended December 31, 2023.

Except as required by applicable securities laws, Cenovus disclaims any intention or obligation to publicly update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned that the foregoing lists are not exhaustive and are made as at the date hereof. Events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward‐looking information. For additional information regarding Cenovus’s material risk factors, the assumptions made, and risks and uncertainties which could cause actual results to differ from the anticipated results, refer to “Risk Management and Risk Factors” and “Advisory” in Cenovus’s MD&A for the period ended December 31, 2023, and to the risk factors, assumptions and uncertainties described in other documents Cenovus files from time to time with securities regulatory authorities in Canada (available on SEDAR+ at sedarplus.ca, on EDGAR at sec.gov and Cenovus’s website at cenovus.com).


Specified Financial Measures

This news release contains references to certain specified financial measures that do not have standardized meanings prescribed by IFRS. Readers should not consider these measures in isolation or as a substitute for analysis of the company’s results as reported under IFRS. These measures are defined differently by different companies and, therefore, might not be comparable to similar measures presented by other issuers. For information on the composition of these measures, as well as an explanation of how the company uses these measures, refer to the Specified Financial Measures Advisory located in Cenovus’s MD&A for the period ended December 31, 2023 (available on SEDAR+ at sedarplus.ca, on EDGAR at sec.gov and on Cenovus's website at cenovus.com) which is incorporated by reference into this news release.

Upstream Operating Margin and Downstream Operating Margin

Upstream Operating Margin and Downstream Operating Margin, and the individual components thereof, are included in Note 1 to the interim Consolidated Financial Statements.


CENOVUS ENERGY NEWS RELEASE | 8


Total Operating Margin

Total Operating Margin is the total of Upstream Operating Margin plus Downstream Operating Margin.
Upstream (1)
Downstream (1)
Total
($ millions) Q4 2023 Q3 2023 Q4 2022 Q4 2023 Q3 2023 Q4 2022 Q4 2023 Q3 2023 Q4 2022
Revenues
Gross Sales 7,797  8,783  8,251  8,404  9,658  8,302  16,201  18,441  16,553 
Less: Royalties 902  1,135  875  —  —  —  902  1,135  875 
6,895  7,648  7,376  8,404  9,658  8,302  15,299  17,306  15,678 
Expenses
Purchased Product 663  900  1,079  7,888  7,947  6,993  8,551  8,847  8,072 
Transportation and Blending 2,894  2,397  2,984  —  —  —  2,894  2,397  2,984 
Operating 864  914  955  826  778  759  1,690  1,692  1,714 
Realized (Gain) Loss on Risk Management 19  (10) 134  (6) 11  (8) 13  126 
Operating Margin 2,455  3,447  2,224  (304) 922  558  2,151  4,369  2,782 
(1) Found in the December 31, 2023, or the September 30, 2023, interim Consolidated Financial Statements.

Upstream (1)
Downstream (1)
Total
($ millions) 2023 2022 2023 0 2022 2023 2022
Revenues
Gross Sales 31,082  41,142  32,626  38,010  63,708  79,152 
Less: Royalties 3,270  4,868  —  —  3,270  4,868 
27,812  36,274  32,626  38,010  60,438  74,284 
Expenses
Purchased Product 3,152  6,741  28,273  32,409  31,425  39,150 
Transportation and Blending 11,088  12,301  —  —  11,088  12,301 
Operating 3,690  3,789  3,201  3,050  6,891  6,839 
Realized (Gain) Loss on Risk Management 12  1,619  —  112  12  1,731 
Operating Margin 9,870  11,824  1,152  2,439  11,022  14,263 
(1) Found in the December 31, 2023, Consolidated Financial Statements.

Adjusted Funds Flow, Free Funds Flow and Excess Free Funds Flow

The following table provides a reconciliation of cash from (used in) operating activities found in Cenovus’s Consolidated Financial Statements to Adjusted Funds Flow, Free Funds Flow and Excess Free Funds Flow. Adjusted Funds Flow per Share – Basic and Adjusted Funds Flow per Share – Diluted are calculated by dividing Adjusted Funds Flow by the respective basic or diluted weighted average number of common shares outstanding during the period and may be useful to evaluate a company’s ability to generate cash.

Three Months Ended Twelve Months Ended
($ millions) Dec. 31, 2023 Sept. 30, 2023 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2022
Cash From (Used in) Operating Activities (1)
2,946  2,738  2,970  7,388  11,403 
(Add) Deduct:
Settlement of Decommissioning Liabilities (65) (68) (49) (222) (150)
Net Change in Non-Cash Working Capital 949  (641) 673  (1,193) 575 
Adjusted Funds Flow 2,062  3,447  2,346  8,803  10,978 
Capital Investment 1,170  1,025  1,274  4,298  3,708 
Free Funds Flow 892  2,422  1,072  4,505  7,270 
Add (Deduct):
Base Dividends Paid on Common Shares (261) (264) (201)
CENOVUS ENERGY NEWS RELEASE | 9


Dividends Paid on Preferred Shares (9) —  — 
Settlement of Decommissioning Liabilities (65) (68) (49)
Principal Repayment of Leases (72) (70) (74)
Acquisitions, Net of Cash Acquired (14) (32) (7)
Proceeds From Divestitures —  45 
Excess Free Funds Flow 471  1,989  786 
(1) Found in the December 31, 2023, or the September 30, 2023, interim Consolidated Financial Statements.

Cenovus Energy Inc.

Cenovus Energy Inc. is an integrated energy company with 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. The company is focused on managing its assets in a safe, innovative and cost-efficient manner, integrating environmental, social and governance considerations into its business plans. Cenovus common shares and warrants are listed on the Toronto and New York stock exchanges, and the company’s preferred shares are listed on the Toronto Stock Exchange. For more information, visit cenovus.com.

Find Cenovus on Facebook, X, LinkedIn, YouTube and Instagram.

Cenovus contacts
Investors Media
Investor Relations general line
403-766-7711
Media Relations general line
403-766-7751





CENOVUS ENERGY NEWS RELEASE | 10
EX-99.2 3 q42023interimconsolidatedf.htm EX-99.2 Document
            
Exhibit 99.2

logoa.gif
Cenovus Energy Inc.
Interim Consolidated Financial Statements (unaudited)
For the Periods Ended December 31, 2023
(Canadian Dollars)











CONSOLIDATED FINANCIAL STATEMENTS (unaudited) logoa.gif
For the periods ended December 31, 2023

TABLE OF CONTENTS

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
2



CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (unaudited)
For the periods ended December 31,
($ millions, except per share amounts)
Three Months Ended
Twelve Months Ended
Notes 2023
2022
2023
2022
Revenues 1
Gross Sales 14,036 14,938 55,474 71,765
Less: Royalties 902 875 3,270 4,868
13,134 14,063 52,204 66,897
Expenses 1
Purchased Product (1)
6,558 6,920 24,715 33,958
Transportation and Blending (1)
2,662 2,720 10,141 11,126
Operating (1)
1,563 1,456 6,352 5,816
(Gain) Loss on Risk Management 22 (28) 96 61 1,636
Depreciation, Depletion and Amortization
6,10,11,13
1,270 1,470 4,644 4,679
Exploration Expense 9 32 2 42 101
(Income) Loss From Equity-Accounted Affiliates 12 (28) (4) (51) (15)
General and Administrative 71 320 688 865
Finance Costs 4 178 189 671 820
Interest Income (33) (37) (133) (81)
Integration, Transaction and Other Costs 36 27 85 106
Foreign Exchange (Gain) Loss, Net 5 (74) (63) (67) 343
Revaluation (Gain) Loss 3 1 34 (549)
Re-measurement of Contingent Payments 15 (24) 20 59 162
(Gain) Loss on Divestiture of Assets (3) (25) (14) (269)
Other (Income) Loss, Net (21) (65) (63) (532)
Earnings (Loss) Before Income Tax 974 1,037 5,040 8,731
Income Tax Expense (Recovery) 7 231 253 931 2,281
Net Earnings (Loss) 743 784 4,109 6,450
Net Earnings (Loss) Per Common Share ($)
8
Basic 0.39 0.40 2.15 3.29
Diluted 0.39 0.39 2.12 3.20
(1)Comparative periods reflect certain revisions. See Note 26.

See accompanying Notes to the interim Consolidated Financial Statements (unaudited).

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
3



CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited)
For the periods ended December 31,
($ millions)
Three Months Ended Twelve Months Ended
Notes 2023 2022 2023 2022
Net Earnings (Loss) 743 784 4,109 6,450
Other Comprehensive Income (Loss), Net of Tax 19
Items That Will not be Reclassified to Profit or Loss:
Actuarial Gain (Loss) Relating to Pension and Other Post-
   Employment Benefits
(59) 13 (44) 71
Change in the Fair Value of Equity Instruments at FVOCI (1)
22 56 56 2
Items That may be Reclassified to Profit or Loss:
Foreign Currency Translation Adjustment (243) (183) (274) 713
Total Other Comprehensive Income (Loss), Net of Tax (246) (170) (262) 786
Comprehensive Income (Loss) 497 614 3,847 7,236
(1)Fair value through other comprehensive income (loss) (“FVOCI”).

See accompanying Notes to the interim Consolidated Financial Statements (unaudited).


Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
4



CONSOLIDATED BALANCE SHEETS (unaudited)
As at December 31,
($ millions)
Notes 2023 2022
Assets
Current Assets
Cash and Cash Equivalents 2,227 4,524
Accounts Receivable and Accrued Revenues 3,035 3,473
Income Tax Receivable 416 121
Inventories 4,030 4,312
Total Current Assets 9,708 12,430
Restricted Cash 16 211 209
Exploration and Evaluation Assets, Net
1,9
738 685
Property, Plant and Equipment, Net
1,10
37,250 36,499
Right-of-Use Assets, Net
1,11
1,680 1,845
Income Tax Receivable 25 25
Investments in Equity-Accounted Affiliates 12 366 365
Other Assets 13 318 342
Deferred Income Taxes 696 546
Goodwill
1
2,923 2,923
Total Assets 53,915 55,869
Liabilities and Equity
Current Liabilities
Accounts Payable and Accrued Liabilities 5,480 6,124
Income Tax Payable 88 1,211
Short-Term Borrowings 14 179 115
Lease Liabilities 11 299 308
Contingent Payments 15 164 263
Total Current Liabilities 6,210 8,021
Long-Term Debt 14 7,108 8,691
Lease Liabilities 11 2,359 2,528
Contingent Payments 15 156
Decommissioning Liabilities 16 4,155 3,559
Other Liabilities 17 1,183 1,042
Deferred Income Taxes 4,188 4,283
Total Liabilities 25,203 28,280
Shareholders’ Equity 28,698 27,576
Non-Controlling Interest 14 13
Total Liabilities and Equity 53,915 55,869
Commitments and Contingencies 25
See accompanying Notes to the interim Consolidated Financial Statements (unaudited).

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
5



CONSOLIDATED STATEMENTS OF EQUITY (unaudited)
($ millions)
Shareholders’ Equity
Common Shares Preferred Shares Warrants
Paid in
Surplus
Retained
Earnings
AOCI (1)
Total Non-Controlling Interest
(Note 18)
(Note 18)
(Note 18)
(Note 19)
As at December 31, 2021
17,016 519 215 4,284 878 684 23,596 12
Net Earnings (Loss) 6,450 6,450
Other Comprehensive Income
  (Loss), Net of Tax
786 786
Total Comprehensive Income (Loss) 6,450 786 7,236
Common Shares Issued Under
   Stock Option Plans
170 (32) 138
Purchase of Common Shares Under
   NCIB (2)
(959) (1,571) (2,530)
Warrants Exercised 93 (31) 62
Stock-Based Compensation
   Expense
10 10
Base Dividends on Common Shares (682) (682)
Variable Dividends on Common
   Shares
(219) (219)
Dividends on Preferred Shares (35) (35)
Non-Controlling Interest 1
As at December 31, 2022
16,320 519 184 2,691 6,392 1,470 27,576 13
Net Earnings (Loss) 4,109 4,109
Other Comprehensive Income
   (Loss), Net of Tax
(262) (262)
Total Comprehensive Income (Loss) 4,109 (262) 3,847
Common Shares Issued Under
   Stock Option Plans
58 (12) 46
Purchase of Common Shares Under
   NCIB (2)
(373) (688) (1,061)
Warrants Exercised 26 (8) 18
Warrants Purchased and Cancelled (151) (562) (713)
Stock-Based Compensation
   Expense
11 11
Base Dividends on Common Shares (990) (990)
Dividends on Preferred Shares (36) (36)
Non-Controlling Interest 1
As at December 31, 2023
16,031 519 25 2,002 8,913 1,208 28,698 14
(1)Accumulated other comprehensive income (loss) (“AOCI”).
(2)Normal course issuer bid (“NCIB”).

See accompanying Notes to the interim Consolidated Financial Statements (unaudited).

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
6



CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
For the periods ended December 31,
($ millions)
Three Months Ended
Twelve Months Ended
Notes 2023 2022 2023 2022
Operating Activities
Net Earnings (Loss) 743 784 4,109 6,450
Depreciation, Depletion and Amortization
6,10,11,13
1,270 1,470 4,644 4,679
Deferred Income Tax Expense (Recovery) 7 166 17 (250) 642
Unrealized (Gain) Loss on Risk Management 22 (36) (38) 52 (126)
Unrealized Foreign Exchange (Gain) Loss 5 (111) (54) (210) 365
Realized Foreign Exchange (Gain) Loss on Non-Operating
   Items
98 146
Revaluation (Gain) Loss 3 1 34 (549)
Re-measurement of Contingent Payments (24) 20 59 (469)
(Gain) Loss on Divestiture of Assets (3) (25) (14) (269)
Unwinding of Discount on Decommissioning Liabilities 16 55 44 220 176
(Income) Loss From Equity-Accounted Affiliates 12 (28) (4) (51) (15)
Distributions Received From Equity-Accounted Affiliates 12 32 11 149 65
Other (3) 121 (37) (117)
Settlement of Decommissioning Liabilities 16 (65) (49) (222) (150)
Net Change in Non-Cash Working Capital 24 949 673 (1,193) 575
Cash From (Used in) Operating Activities 2,946 2,970 7,388 11,403
Investing Activities
Acquisitions, Net of Cash Acquired 3 (14) (7) (515) (397)
Capital Investment 1 (1,170) (1,274) (4,298) (3,708)
Proceeds From Divestitures 45 12 1,514
Payment on Divestiture of Assets (50)
Net Change in Investments and Other (24) (26) (125) (211)
Net Change in Non-Cash Working Capital 24 (72) 92 (369) 538
Cash From (Used in) Investing Activities (1,280) (1,170) (5,295) (2,314)
Net Cash Provided (Used) Before Financing Activities 1,666 1,800 2,093 9,089
Financing Activities 24
Net Issuance (Repayment) of Short-Term Borrowings 159 115 58 34
Repayment of Long-Term Debt
14
(1,346) (4,149)
Principal Repayment of Leases 11 (72) (74) (288) (302)
Common Shares Issued Under Stock Option Plans 3 5 46 138
Purchase of Common Shares Under NCIB 18 (350) (387) (1,061) (2,530)
Payment for Purchase of Warrants 18 (111) (711)
Proceeds From Exercise of Warrants 2 11 18 62
Base Dividends Paid on Common Shares 8 (261) (201) (990) (682)
Variable Dividends Paid on Common Shares 8 (219) (219)
Dividends Paid on Preferred Shares 8 (9) (36) (26)
Other (3) (2)
Cash From (Used in) Financing Activities (639) (750) (4,313) (7,676)
Effect of Foreign Exchange on Cash and Cash Equivalents
(62) (20) (77) 238
Increase (Decrease) in Cash and Cash Equivalents 965 1,030 (2,297) 1,651
Cash and Cash Equivalents, Beginning of Period 1,262 3,494 4,524 2,873
Cash and Cash Equivalents, End of Period 2,227 4,524 2,227 4,524
See accompanying Notes to the interim Consolidated Financial Statements (unaudited).

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
7


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
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, 2, 3, 5 and 7 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 within the Elmworth-Wapiti, Kaybob‑Edson, Clearwater and Rainbow Lake operating areas in Alberta and British Columbia and 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 China and the east coast of Canada, as well as 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. The Company renamed its Canadian Manufacturing segment to Canadian Refining in 2023.
•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, and the jointly-owned Wood River and Borger refineries (jointly owned with operator Phillips 66). Cenovus markets some of its own and third-party refined products including gasoline, diesel, jet fuel and asphalt. The Company renamed its U.S. Manufacturing segment to U.S. Refining in 2023.
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.




Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
8


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
A) Results of Operations – Segment and Operational Information
i) Results for the Three Months Ended December 31
Upstream
For the three months ended
Oil Sands
Conventional
Offshore Total
December 31, 2023 2022 2023 2022 2023 2022 2023 2022
Revenues
Gross Sales (1)
6,477 6,653 806 1,153 514 445 7,797 8,251
Less: Royalties
841 784 27 70 34 21 902 875
5,636 5,869 779 1,083 480 424 6,895 7,376
Expenses
Purchased Product (1)
226 516 437 563 663 1,079
Transportation and Blending (1)
2,809 2,922 78 59 7 3 2,894 2,984
Operating
615 733 146 138 103 84 864 955
Realized (Gain) Loss on Risk
   Management
24 59 (5) 75 19 134
Operating Margin 1,962 1,639 123 248 370 337 2,455 2,224
Unrealized (Gain) Loss on Risk
   Management
(29) (9) (5) 6 (34) (3)
Depreciation, Depletion and
   Amortization
763 786 100 88 138 144 1,001 1,018
Exploration Expense 15 2 6 11 32 2
(Income) Loss From Equity-
   Accounted Affiliates
(28) (4) (28) (4)
Segment Income (Loss) 1,213 860 22 154 249 197 1,484 1,211
Downstream
Canadian Refining
U.S. Refining
Total
For the three months ended December 31,
2023
2022
2023 2022 2023 2022
Revenues
Gross Sales (1)
1,557 1,772 6,847 6,530 8,404 8,302
Less: Royalties
1,557 1,772 6,847 6,530 8,404 8,302
Expenses
Purchased Product (1)
1,263 1,324 6,625 5,669 7,888 6,993
Transportation and Blending
Operating
168 170 658 589 826 759
Realized (Gain) Loss on Risk Management (6) (8) (6) (8)
Operating Margin 126 278 (430) 280 (304) 558
Unrealized (Gain) Loss on Risk Management
(4) 40 (4) 40
Depreciation, Depletion and Amortization 49 44 172 381 221 425
Exploration Expense
(Income) Loss From Equity-Accounted Affiliates
Segment Income (Loss) 77 234 (598) (141) (521) 93
(1)Comparative periods reflect certain revisions. See Note 26.

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
9


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
Corporate and Eliminations Consolidated
For the three months ended December 31,
2023 2022 2023 2022
Revenues
Gross Sales (1)
(2,165) (1,615) 14,036 14,938
Less: Royalties
902 875
(2,165) (1,615) 13,134 14,063
Expenses
Purchased Product (1)
(1,993) (1,152) 6,558 6,920
Transportation and Blending (1)
(232) (264) 2,662 2,720
Operating (1)
(127) (258) 1,563 1,456
Realized (Gain) Loss on Risk Management (5) 8 8 134
Unrealized (Gain) Loss on Risk Management
2 (75) (36) (38)
Depreciation, Depletion and Amortization 48 27 1,270 1,470
Exploration Expense 32 2
(Income) Loss From Equity-Accounted Affiliates (28) (4)
Segment Income (Loss) 142 99 1,105 1,403
General and Administrative 71 320 71 320
Finance Costs 178 189 178 189
Interest Income (33) (37) (33) (37)
Integration, Transaction and Other Costs 36 27 36 27
Foreign Exchange (Gain) Loss, Net (74) (63) (74) (63)
Revaluation (Gain) Loss 1 1
Re-measurement of Contingent Payments (24) 20 (24) 20
(Gain) Loss on Divestiture of Assets (3) (25) (3) (25)
Other (Income) Loss, Net (21) (65) (21) (65)
131 366 131 366
Earnings (Loss) Before Income Tax 974 1,037
Income Tax Expense (Recovery) 231 253
Net Earnings (Loss) 743 784
(1)Comparative periods reflect certain revisions. See Note 26.

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
10


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
ii) Results for the Twelve Months Ended December 31
Upstream
For the twelve months ended
Oil Sands Conventional Offshore Total
December 31,
2023 2022 2023 2022 2023 2022 2023 2022
Revenues
Gross Sales (1)
26,192 34,683 3,273 4,439 1,617 2,020 31,082 41,142
Less: Royalties
3,059 4,493 112 298 99 77 3,270 4,868
23,133 30,190 3,161 4,141 1,518 1,943 27,812 36,274
Expenses
Purchased Product (1)
1,457 4,718 1,695 2,023 3,152 6,741
Transportation and Blending (1)
10,774 12,036 298 250 16 15 11,088 12,301
Operating
2,716 2,930 590 541 384 318 3,690 3,789
Realized (Gain) Loss on Risk
   Management
17 1,527 (5) 92 12 1,619
Operating Margin 8,169 8,979 583 1,235 1,118 1,610 9,870 11,824
Unrealized (Gain) Loss on Risk
   Management
15 (68) (19) 13 (4) (55)
Depreciation, Depletion and
   Amortization
2,993 2,763 386 370 487 585 3,866 3,718
Exploration Expense 19 9 6 1 17 91 42 101
(Income) Loss From Equity-
   Accounted Affiliates
6 8 (57) (23) (51) (15)
Segment Income (Loss) 5,136 6,267 210 851 671 957 6,017 8,075
Downstream
Canadian Refining
U.S. Refining
Total
For the twelve months ended December 31,
2023
2022
2023 2022 2023 2022
Revenues
Gross Sales (1)
6,233 7,792 26,393 30,218 32,626 38,010
Less: Royalties
6,233 7,792 26,393 30,218 32,626 38,010
Expenses
Purchased Product (1)
4,919 6,389 23,354 26,020 28,273 32,409
Transportation and Blending
Operating
639 704 2,562 2,346 3,201 3,050
Realized (Gain) Loss on Risk Management 112 112
Operating Margin 675 699 477 1,740 1,152 2,439
Unrealized (Gain) Loss on Risk Management
(17) 18 (17) 18
Depreciation, Depletion and Amortization 185 208 486 640 671 848
Exploration Expense
(Income) Loss From Equity-Accounted Affiliates
Segment Income (Loss) 490 491 8 1,082 498 1,573
(1)Comparative periods reflect certain revisions. See Note 26.

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
11


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
Corporate and Eliminations Consolidated
For the twelve months ended December 31,
2023 2022 2023 2022
Revenues
Gross Sales (1)
(8,234) (7,387) 55,474 71,765
Less: Royalties
3,270 4,868
(8,234) (7,387) 52,204 66,897
Expenses
Purchased Product (1)
(6,710) (5,192) 24,715 33,958
Transportation and Blending (1)
(947) (1,175) 10,141 11,126
Operating (1)
(539) (1,023) 6,352 5,816
Realized (Gain) Loss on Risk Management (3) 31 9 1,762
Unrealized (Gain) Loss on Risk Management
73 (89) 52 (126)
Depreciation, Depletion and Amortization 107 113 4,644 4,679
Exploration Expense 42 101
(Income) Loss From Equity-Accounted Affiliates (51) (15)
Segment Income (Loss) (215) (52) 6,300 9,596
General and Administrative 688 865 688 865
Finance Costs 671 820 671 820
Interest Income (133) (81) (133) (81)
Integration, Transaction and Other Costs 85 106 85 106
Foreign Exchange (Gain) Loss, Net (67) 343 (67) 343
Revaluation (Gain) Loss 34 (549) 34 (549)
Re-measurement of Contingent Payments 59 162 59 162
(Gain) Loss on Divestiture of Assets (14) (269) (14) (269)
Other (Income) Loss, Net (63) (532) (63) (532)
1,260 865 1,260 865
Earnings (Loss) Before Income Tax 5,040 8,731
Income Tax Expense (Recovery) 931 2,281
Net Earnings (Loss) 4,109 6,450
(1)Comparative periods reflect certain revisions. See Note 26.

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
12


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
B) Revenues by Product
Three Months Ended Twelve Months Ended
For the periods ended December 31,
2023 2022 2023 2022
Upstream
Oil Sands
Crude Oil (1)
5,510 5,622 22,550 28,921
NGLs (2)
55 169 352 877
Natural Gas and Other
71 78 231 392
Conventional
Crude Oil 179 81 589 429
NGLs (2)
208 220 799 926
Natural Gas and Other (1)
392 782 1,773 2,786
Offshore
Crude Oil 164 85 385 581
NGLs 80 84 280 354
Natural Gas 236 255 853 1,008
Total Upstream 6,895 7,376 27,812 36,274
Downstream
Canadian Refining
Synthetic Crude Oil 517 574 2,124 2,360
Diesel 466 620 1,752 2,164
Asphalt 140 138 571 620
Gasoline 112 111 522 948
Other Products and Services 322 329 1,264 1,700
U.S. Refining
Gasoline 3,039 2,936 12,375 14,116
Distillates 2,443 2,918 9,612 11,453
Asphalt
254 131 864 533
Other Products (1)
1,111 545 3,542 4,116
Total Downstream 8,404 8,302 32,626 38,010
Corporate and Eliminations (1)
(2,165) (1,615) (8,234) (7,387)
Consolidated 13,134 14,063 52,204 66,897
(1)Comparative periods reflect certain revisions. See Note 26.
(2)Third-party condensate sales are included within NGLs.

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
13


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
C) Geographical Information
Revenues (1)
Three Months Ended Twelve Months Ended
For the periods ended December 31,
2023 2022 2023 2022
Canada (2)
6,300 6,843 25,128 33,314
United States (2)
6,518 6,881 25,943 32,221
China 316 339 1,133 1,362
Consolidated 13,134 14,063 52,204 66,897
(1)Revenues by country are classified based on where the operations are located.
(2)Comparative periods reflect certain revisions. See Note 26.
Non-Current Assets (1)
As at December 31,
2023
2022
Canada 35,876 35,194
United States 5,230 4,824
China 1,608 2,064
Indonesia 344 365
Consolidated 43,058 42,447
(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 Assets PP&E ROU Assets
As at December 31,
2023 2022 2023 2022 2023 2022
Oil Sands 729 674 24,443 24,657 849 638
Conventional 6 2,209 2,020 1 2
Offshore 9 5 2,798 2,549 102 152
Canadian Refining 2,469 2,466 28 252
U.S. Refining 5,014 4,482 268 329
Corporate and Eliminations 317 325 432 472
Consolidated 738 685 37,250 36,499 1,680 1,845
Goodwill Total Assets
As at December 31,
2023 2022 2023 2022
Oil Sands 2,923 2,923 31,673 32,248
Conventional 2,429 2,410
Offshore 3,511 3,339
Canadian Refining 2,960 3,172
U.S. Refining 8,660 8,324
Corporate and Eliminations
4,682 6,376
Consolidated 2,923 2,923 53,915 55,869

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
14


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
E) Capital Expenditures (1)
Three Months Ended Twelve Months Ended
For the periods ended December 31,
2023 2022 2023 2022
Capital Investment
Oil Sands 618 681 2,382 1,792
Conventional 129 156 452 344
Offshore
Asia Pacific 3 3 7 8
Atlantic 161 82 635 302
Total Upstream 911 922 3,476 2,446
Canadian Refining
46 40 145 117
U.S. Refining
167 285 602 1,059
Total Downstream 213 325 747 1,176
Corporate and Eliminations 46 27 75 86
1,170 1,274 4,298 3,708
Acquisitions (Note 3)
Oil Sands
2 37 1,609
Conventional 6 5 12
U.S. Refining (2)
385
2 6 427 1,621
Total Capital Expenditures 1,172 1,280 4,725 5,329
(1)Includes expenditures on PP&E, E&E assets and capitalized interest.
(2)In 2023, Cenovus was deemed to have disposed of its pre-existing interest in BP-Husky Refining LLC (“Toledo”) and reacquired it at fair value as required by International Financial Reporting Standard 3, “Business Combinations” (“IFRS 3”). The acquisition capital above does not include the fair value of the pre‑existing interest in Toledo of $368 million.

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
15


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
2. BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE
In these interim Consolidated Financial Statements, unless otherwise indicated, all dollars are expressed in Canadian dollars. All references to C$ or $ are to Canadian dollars and references to US$ are to U.S. dollars.
These interim Consolidated Financial Statements were prepared in accordance with IFRS Accounting Standards, as issued by the International Accounting Standards Board (“IASB”) applicable to the preparation of interim financial statements, including International Accounting Standard 34, “Interim Financial Reporting”, and were prepared following the same accounting policies and methods of computation as the annual Consolidated Financial Statements for the year ended December 31, 2022.
Certain information and disclosures normally included in the notes to the annual Consolidated Financial Statements were condensed or disclosed on an annual basis only. Accordingly, these interim Consolidated Financial Statements should be read in conjunction with the annual Consolidated Financial Statements for the year ended December 31, 2022, which were prepared in accordance with IFRS Accounting Standards as issued by the IASB.
These interim Consolidated Financial Statements were approved by the Board of Directors effective February 14, 2024.
3. ACQUISITIONS
A) BP-Husky Refining LLC
i) Summary of the Acquisition
On February 28, 2023, Cenovus acquired the remaining 50 percent interest in Toledo from BP Products North America Inc. (“bp”), previously a joint operation (the “Toledo Acquisition”). It provided Cenovus full ownership and operatorship of the refinery, and further integrating Cenovus’s heavy oil production and refining capabilities. Total consideration for the Toledo Acquisition was US$378 million (C$514 million) in cash, including working capital.
The Toledo Acquisition was accounted for using the acquisition method pursuant to IFRS 3. Under the acquisition method, assets and liabilities are recorded at fair value on the date of acquisition and the total consideration is allocated to the assets acquired and liabilities assumed. The excess of consideration given over the fair value of the net assets acquired, if any, is recorded as goodwill.
ii) Identifiable Assets Acquired and Liabilities Assumed
The final purchase price allocation was based on Management’s best estimate of fair value and was retrospectively adjusted to reflect items identified with new information obtained between February 28, 2023, and December 31, 2023, about conditions that existed at the acquisition date. Changes to identifiable assets acquired and liabilities assumed includes increases to PP&E of $96 million, partially offset by decreases of $66 million to inventories, $3 million to other liabilities and $1 million to accounts payable and accrued liabilities. The impact to depreciation, depletion and amortization (“DD&A”) as a result of these measurement period adjustments was not material and prior quarters have not been restated to reflect the impact of the measurement period adjustments.
The following table summarizes the recognized amounts of assets acquired and liabilities assumed at the date of acquisition.
As at February 28, 2023
100 Percent of the Identifiable Assets Acquired and Liabilities Assumed
Cash 69
Accounts Receivable and Accrued Revenues 3
Inventories 387
Property, Plant and Equipment 770
Right-of-Use Assets 33
Other Assets 10
Accounts Payable and Accrued Liabilities (139)
Lease Liabilities (33)
Decommissioning Liabilities (5)
Other Liabilities (73)
Total Identifiable Net Assets 1,022
The fair value and gross contractual amount of acquired accounts receivable and accrued revenues was $3 million, all of which was collected.

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
16


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
iii) Goodwill
As at February 28, 2023
Total Purchase Consideration 514
Fair Value of Pre-Existing 50 Percent Ownership Interest in Toledo
508
Fair Value of Identifiable Net Assets (1,022)
Goodwill
Fair Value of Pre-Existing 50 Percent Ownership Interest in BP-Husky Refining LLC
Prior to the Toledo Acquisition, Toledo was jointly controlled with bp and met the definition of a joint operation under IFRS 11, “Joint Arrangements”. Subsequent to the Toledo Acquisition, Cenovus controls Toledo, as defined under IFRS 10, “Consolidated Financial Statements”, and, accordingly Toledo was consolidated. As required by IFRS 3, when an acquirer achieves control in stages, the previously held interest is re-measured to fair value at the acquisition date with any gain or loss recognized in net earnings (loss).
The acquisition-date fair value of the previously held interest was estimated to be $508 million and the net carrying value of Toledo assets was $554 million. Cenovus recognized a non-cash revaluation loss of $34 million ($23 million, after tax) on the re-measurement of its pre-existing interest in Toledo to fair value, net of $12 million in associated cumulative foreign currency translation adjustments.
iv) Transaction Costs
For the three and twelve months ended December 31, 2023, transaction costs of $nil and $11 million, respectively, (three and twelve months ended December 31, 2022 – $7 million and $9 million, respectively), were recognized in the Consolidated Statements of Earnings (Loss).
v) Revenue and Profit Contribution
The acquired business contributed revenues of $4.1 billion and a net loss of $85 million for the period from February 28, 2023, to December 31, 2023. On September 20, 2022, an incident occurred at the Toledo Refinery, resulting in the shutdown of the facility. The Toledo Refinery returned to full operations in June 2023. If the closing of the Toledo Acquisition had occurred on January 1, 2023, Cenovus’s consolidated pro forma revenues and net earnings for the year ended December 31, 2023, would be $52.2 billion and $4.0 billion, respectively. These amounts were calculated using results from the acquired business, adjusting them for:
•Additional DD&A that would be charged assuming the fair value adjustments to PP&E had applied from January 1, 2023.
•Additional accretion on the decommissioning liabilities if they had been assumed on January 1, 2023.
•The consequential tax effects.
This pro forma information is not necessarily indicative of the results that would be obtained if the Toledo Acquisition had actually occurred on January 1, 2023.
B) Sunrise Oil Sands Partnership
On August 31, 2022, Cenovus closed a transaction with BP Canada Energy Group ULC (“bp Canada”) to purchase the remaining 50 percent interest in Sunrise Oil Sands Partnership (“SOSP”), in northern Alberta (the “Sunrise Acquisition”). It provided Cenovus with full ownership and further enhanced Cenovus’s core strength in the oil sands.
The final purchase price allocation was based on Management’s best estimate of the assets acquired and liabilities assumed. No additional adjustments were made to the purchase price allocation in the period. For more details, see Note 5 of the annual Consolidated Financial Statements for the year ended December 31, 2022.

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
17


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
4. FINANCE COSTS
Three Months Ended Twelve Months Ended
For the periods ended December 31,
2023 2022 2023 2022
Interest Expense – Short-Term Borrowings and Long-Term Debt 77 97 362 478
Net Premium (Discount) on Redemption of Long-Term Debt (1)
(84) (29)
Interest Expense – Lease Liabilities (Note 11)
40 40 161 163
Unwinding of Discount on Decommissioning Liabilities (Note 16)
55 44 220 176
Other 14 10 32 37
186 191 691 825
Capitalized Interest (8) (2) (20) (5)
178 189 671 820
(1)Includes the premium or discount on redemption, net of transaction costs and the amortization of associated fair value adjustments.
5. FOREIGN EXCHANGE (GAIN) LOSS, NET
Three Months Ended Twelve Months Ended
For the periods ended December 31,
2023 2022 2023 2022
Unrealized Foreign Exchange (Gain) Loss on Translation of:
U.S. Dollar Debt Issued From Canada (112) (79) (231) 365
Other 1 25 21
Unrealized Foreign Exchange (Gain) Loss (111) (54) (210) 365
Realized Foreign Exchange (Gain) Loss 37 (9) 143 (22)
(74) (63) (67) 343
6. IMPAIRMENT CHARGES AND REVERSALS
At each reporting date, the Company assesses its cash-generating units (“CGUs”) for indicators of impairment or when facts and circumstances suggest that the carrying amount may exceed the recoverable amount. Impairment losses recognized in prior periods, other than goodwill impairments, are assessed at each reporting date for any indicators that the impairment losses may no longer exist or may have decreased. Goodwill is tested for impairment at least annually. For the purposes of impairment testing, goodwill is allocated to the CGU to which it relates.
A) Upstream Cash-Generating Units
i) 2023 Impairment Charges
The Company tested CGUs with associated goodwill for impairment as at December 31, 2023, and there were no impairments. No impairment indicators were identified for the remaining CGUs.
Key Assumptions
The recoverable amounts (Level 3) of Cenovus’s Oil Sands CGUs with associated goodwill that were tested for impairment were estimated using fair value less costs of disposal (“FVLCOD”). Key assumptions used to estimate the present value of future net cash flows from reserves include expected production volumes, quantity of reserves, forward commodity prices, future development and operating expenses, all consistent with Cenovus’s independent qualified reserve evaluators (“IQREs”), and discount rates. Fair values for producing properties were calculated based on discounted after-tax cash flows of proved and probable reserves using forward prices and cost estimates as at December 31, 2023. All reserves were evaluated as at December 31, 2023, by the Company’s IQREs.


Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
18


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
Crude Oil, NGLs and Natural Gas Prices
The forward commodity prices as at December 31, 2023, used to determine future cash flows from crude oil, NGLs and natural gas reserves were:
2024 2025 2026 2027 2028 Average Annual Increase Thereafter
West Texas Intermediate (“WTI”) (US$/bbl) (1)
73.67 74.98 76.14 77.66 79.22 2.00  %
Western Canadian Select at Hardisty (2) (C$/bbl)
76.74 79.77 81.12 82.88 85.04 2.00  %
Condensate at Edmonton (C$/bbl)
96.79 98.75 100.71 102.72 104.78 2.00  %
Alberta Energy Company Natural Gas (C$/Mcf) (3)
2.20 3.37 4.05 4.13 4.21 2.00  %
(1)Barrel ("bbl").
(2)Western Canadian Select at Hardisty (“WCS”).
(3)One thousand cubic feet (“Mcf”).
Discount Rates
Discounted future cash flows were determined by applying a discount rate of 14 percent.
Sensitivities
A one percent increase in the discount rate or a five percent decrease in forward commodity price estimates would not impact the results of the impairment tests performed on CGUs with associated goodwill.
ii) 2022 Impairment Charges and Reversals
The Company tested the CGUs with associated goodwill for impairment as at December 31, 2022, and there were no impairments. The Company also tested the Sunrise CGU for impairment due to a decline in near-term forward prices between the date of the Sunrise Acquisition and December 31, 2022. The recoverable amount of the Sunrise CGU was in excess of its carrying amount and no impairment was recorded. 
B) Downstream Cash-Generating Units
i) 2023 Impairment Charges and Reversals
As at December 31, 2023, there were no indicators of impairment or impairment reversals for the Company's downstream CGUs.
ii) 2022 Impairment Charges and Reversals
As at December 31, 2022, the Company identified indicators of impairment for the Toledo CGU due to the pending acquisition of the remaining 50 percent from bp and an incident at the Toledo Refinery, and for the Superior CGU with the commissioning of the asset in preparation for restart. The total carrying amount of the Toledo and Superior CGUs was greater than the recoverable amount. An impairment charge of $1.5 billion was recorded as additional DD&A in the U.S. Refining segment.
As at December 31, 2022, there were also indicators of impairment reversals for the Company’s Borger, Wood River and Lima CGUs due to an increase in forward crack spreads, resulting in higher margins for refined products. An assessment indicated the recoverable amount was greater than the carrying value of the associated CGUs. As at December 31, 2022, the Company reversed impairment charges of $1.2 billion, net of DD&A that would have been recorded had no impairment been recorded.
As at December 31, 2022, the aggregate recoverable amount of the U.S. Refining CGUs was estimated to be $5.4 billion.
Key Assumptions
The recoverable amount (Level 3) of the U.S. Refining CGUs were determined using FVLCOD. FVLCOD was calculated based on discounted after-tax cash flows using forward prices and cost estimates. Key assumptions in the determination of future cash flows included throughput, forward crude oil prices, forward crack spreads, future capital expenditures, future operating costs and discount rates. Forward crack spreads are based on an average of third-party consultant forecasts.


Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
Crude Oil and Crack Spreads
Forward prices are based on Management’s best estimate and corroborated with third-party data. As at December 31, 2022, the forward prices used to determine future cash flows were:
(US$/barrel) 2023 2024 2025 2026 2027
WTI 80.33 78.50 76.95 77.61 79.16
Differential WTI – WTS (1)
(0.56) (0.56) (0.56) (0.56) (0.56)
Differential WTI – WCS (23.32) (19.09) (17.42) (15.87) (15.74)
Chicago 3-2-1 Crack Spread 29.37 24.10 22.12 21.70 21.67
(1)West Texas Sour (“WTS”).
Subsequent prices were extrapolated using a two percent growth rate to determine future cash flows up to the year 2032.
Discount Rates
Discounted future cash flows were determined by applying a discount rate between 15 percent and 18 percent based on the individual characteristics of the CGU, and other economic and operating factors.
7. INCOME TAXES
Three Months Ended Twelve Months Ended
For the periods ended December 31,
2023 2022 2023 2022
Current Tax
Canada 100 128 1,041 1,252
United States (113) 8 (109) 104
Asia Pacific 72 89 224 262
Other International 6 11 25 21
Total Current Tax Expense (Recovery) 65 236 1,181 1,639
Deferred Tax Expense (Recovery) 166 17 (250) 642
231 253 931 2,281
For the year ended December 31, 2023, Cenovus reported a deferred tax recovery of $250 million of which $115 million related to a step-up in the U.S. tax basis on the Toledo Acquisition.

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
20


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
8. PER SHARE AMOUNTS
A) Net Earnings (Loss) Per Common Share – Basic and Diluted
Three Months Ended
Twelve Months Ended
For the periods ended December 31,
2023 2022 2023 2022
Net Earnings (Loss) 743 784 4,109 6,450
Effect of Cumulative Dividends on Preferred Shares (9) (9) (36) (35)
Net Earnings (Loss) – Basic and Diluted 734 775 4,073 6,415
Basic – Weighted Average Number of Shares (thousands)
1,879,270 1,916,985 1,895,487 1,951,262
Dilutive Effect of Warrants 5,837 42,778 22,223 44,845
Dilutive Effect of Net Settlement Rights 5,340 7,359 7,150 10,045
Dilutive Effect of Cenovus Replacement Stock Options 583 580
Diluted – Weighted Average Number of Shares (thousands)
1,891,030 1,967,122 1,925,440 2,006,152
Net Earnings (Loss) Per Common Share – Basic ($)
0.39 0.40 2.15 3.29
Net Earnings (Loss) Per Common Share – Diluted (1) (2) ($)
0.39 0.39 2.12 3.20
(1)For the three and twelve months ended December 31, 2023, net earnings of $nil (three and twelve months ended December 31, 2022 – $16 million and $52 million, respectively), and no common shares (three and twelve months ended December 31, 2022 – 1.7 million and 1.6 million, respectively), related to the assumed exercise of the Cenovus replacement stock options were excluded from the calculation of dilutive net earnings (loss) per share as the effect was anti-dilutive.
(2)For the three and twelve months ended December 31, 2023, net settlement rights (“NSRs”) of 1.4 million and 1.5 million, respectively, (three and twelve months ended December 31, 2022 – 52 thousand) were excluded from the calculation of diluted weighted average number of shares as the effect was anti-dilutive.
B) Common Share Dividends
2023 2022
For the twelve months ended December 31,
Per Share Amount Per Share Amount
Base Dividends 0.525 990 0.350 682
Variable Dividends 0.114 219
Total Common Share Dividends Declared and Paid 0.525 990 0.464 901
The declaration of common share dividends is at the sole discretion of the Company’s Board of Directors and is considered quarterly.
On February 14, 2024, the Company’s Board of Directors declared a first quarter base dividend of $0.140 per common share, payable on March 28, 2024, to common shareholders of record as at March 15, 2024.    
C) Preferred Share Dividends
Three Months Ended Twelve Months Ended
For the periods ended December 31,
2023 2022 2023 2022
Series 1 First Preferred Shares 2 2 7 7
Series 2 First Preferred Shares 2 1
Series 3 First Preferred Shares 3 3 12 12
Series 5 First Preferred Shares 2 2 9 9
Series 7 First Preferred Shares 2 2 6 6
Total Preferred Share Dividends Declared 9 9 36 35
The declaration of preferred share dividends is at the sole discretion of the Company’s Board of Directors and is considered quarterly.
For the three and twelve months ended December 31, 2023, the Company paid $9 million and $36 million, respectively, in preferred share dividends (three and twelve months ended December 31, 2022 – $nil and $26 million, respectively).


Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
21


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
On January 2, 2024, the Company paid preferred share dividends of $9 million, as declared on November 1, 2023. On January 3, 2023, the Company paid preferred share dividends of $9 million, as declared on November 1, 2022.
On February 14, 2024, the Company’s Board of Directors declared first quarter dividends of $9 million payable on April 1, 2024, to preferred shareholders of record as at March 15, 2024.
9. EXPLORATION AND EVALUATION ASSETS, NET
Total
As at December 31, 2022
685
Acquisition 31
Additions 84
Transfer to PP&E (Note 10)
(60)
Write-downs (1)
(29)
Change in Decommissioning Liabilities 28
Exchange Rate Movements and Other
(1)
As at December 31, 2023
738
(1)For the twelve months ended December 31, 2023, previously capitalized E&E costs of $14 million, $6 million and $9 million in the Oil Sands, Conventional and Offshore segments, respectively, were written off as exploration expense (2022 – $2 million and $62 million in the Oil Sands and Offshore segments, respectively), as the carrying value was not considered to be recoverable.
10. PROPERTY, PLANT AND EQUIPMENT, NET
Crude Oil and Natural Gas Properties Processing, Transportation and Storage Assets
Refining Assets
Other Assets (1)
Total
COST
As at December 31, 2022
43,528 254 12,132 1,825 57,739
Acquisitions (Note 3) (2)
11 770 781
Additions 3,392 14 719 89 4,214
Transfer from E&E (Note 9)
60 60
Change in Decommissioning Liabilities 542 21 18 581
Divestitures (Note 3) (2)
(17) (633) (17) (667)
Exchange Rate Movements and Other (91) 4 (239) (7) (333)
As at December 31, 2023
47,425 272 12,770 1,908 62,375
ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION
As at December 31, 2022
14,302 106 5,547 1,285 21,240
Depreciation, Depletion and Amortization (3)
3,692 19 554 86 4,351
Divestitures (Note 3) (2)
(8) (299) (12) (319)
Exchange Rate Movements and Other (11) 4 (135) (5) (147)
As at December 31, 2023
17,975 129 5,667 1,354 25,125
CARRYING VALUE
As at December 31, 2022
29,226 148 6,585 540 36,499
As at December 31, 2023
29,450 143 7,103 554 37,250
(1)Includes assets within the commercial fuels business, office furniture, fixtures, leasehold improvements, information technology and aircraft.
(2)In connection with the Toledo Acquisition, Cenovus was deemed to have disposed of its pre-existing interest and reacquired it at fair value as required by IFRS 3. As at February 28, 2023, the carrying value of the pre-existing interest in Toledo’s PP&E was $334 million.
(3)For the twelve months ended December 31, 2023, DD&A includes asset write-downs of $20 million, $12 million and $38 million in the Oil Sands, Canadian Refining and U.S. Refining segments, respectively, (2022 – $26 million and $25 million in the Offshore and Canadian Refining segments, respectively).


Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
22


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
11. LEASES
A) Right-of-Use Assets, Net
Real Estate
Transportation and Storage Assets (1)
Refining Assets
 
Other Assets (2)
Total
COST
As at December 31, 2022
599 1,840 174 74 2,687
Acquisitions (Note 3) (3)
1 24 8 33
Additions 1 56 57
Divestitures (Note 3) (3)
(19) (19)
Exchange Rate Movements and Other (13) 44 (2) (4) 25
As at December 31, 2023
588 1,964 161 70 2,783
ACCUMULATED DEPRECIATION
As at December 31, 2022
127 645 58 12 842
Depreciation 36 223 22 12 293
Divestitures (Note 3) (3)
(12) (12)
Exchange Rate Movements and Other (7) (5) (3) (5) (20)
As at December 31, 2023
156 863 65 19 1,103
CARRYING VALUE
As at December 31, 2022
472 1,195 116 62 1,845
As at December 31, 2023
432 1,101 96 51 1,680
(1)Includes railcars, barges, vessels, pipelines, caverns and storage tanks.
(2)Includes assets in the commercial fuels business, fleet vehicles and other equipment.
(3)In connection with the Toledo Acquisition, Cenovus was deemed to have disposed of its pre-existing interest and reacquired it at fair value as required by IFRS 3. As at February 28, 2023, the carrying value of the pre-existing interest in Toledo’s ROU assets was $7 million.
B) Lease Liabilities
Total
As at December 31, 2022
2,836
Acquisitions (Note 3) (1)
33
Additions 57
Interest Expense (Note 4)
161
Lease Payments (449)
Divestitures (Note 3) (1)
(11)
Exchange Rate Movements and Other 31
As at December 31, 2023
2,658
Less: Current Portion 299
Long-Term Portion 2,359
(1)In connection with the Toledo Acquisition, Cenovus was deemed to have disposed of its pre-existing interest and reacquired it at fair value as required by IFRS 3. As at February 28, 2023, the carrying value of the pre-existing interest in Toledo’s lease liabilities was $11 million.

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
23


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
12. JOINT ARRANGEMENTS
A) Joint Operations
Cenovus has a number of joint operations in the upstream segments. The Company also holds the following joint operation in the U.S. Refining segment.
WRB Refining LP (“WRB”)
Cenovus holds a 50 percent interest in the Wood River and Borger refineries with Phillips 66. Phillips 66 holds the remaining 50 percent interest and is the operator of the Wood River Refinery in Illinois and the Borger Refinery in Texas.
B) Joint Ventures
Husky-CNOOC Madura Ltd.
The Company holds a 40 percent interest in the jointly controlled entity HCML. The Company’s share of equity investment income (loss) related to the joint venture, distributions received and contributions paid are recorded in (income) loss from equity-accounted affiliates.
Summarized below is the financial information for HCML accounted for using the equity method.
Results of Operations
Twelve Months Ended
For the periods ended December 31,
2023 2022
Revenue 615 383
Expenses 545 350
Net Earnings (Loss) 70 33
Balance Sheet
As at December 31,
2023 2022
Current Assets (1)
334 247
Non-Current Assets 1,751 1,926
Current Liabilities 140 160
Non-Current Liabilities
1,188 1,293
Net Assets 757 720
(1)Includes cash and cash equivalents of $111 million (December 31, 2022 – $64 million).
For the twelve months ended December 31, 2023, the Company’s share of income from the equity-accounted affiliate was $57 million (2022 – $23 million). As at December 31, 2023, the carrying amount of the Company’s share of net assets was $344 million (December 31, 2022 – $365 million). These amounts do not equal the 40 percent joint control of the revenues, expenses and net assets of HCML due to differences in the values attributed to the investment and accounting policies between the joint venture and the Company.
For the twelve months ended December 31, 2023, the Company received $93 million of distributions from HCML (2022 – $42 million) and paid $35 million in contributions (2022 – $54 million).
Husky Midstream Limited Partnership
The Company jointly owns and is the operator of HMLP. The Company holds a 35 percent interest in HMLP and applies the equity method of accounting. The Company’s share of equity investment income related to the joint venture, in excess of cumulated unrecognized losses, distributions received and contributions paid, is recorded in (income) loss from equity-accounted affiliates.

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
24


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
For the years ended December 31,
2023 2022
HMLP Net Earnings (Loss)
231 190
Cenovus’s Share of HMLP Net Earnings (Loss) (1)
(1) (23)
Cenovus’s Share of HMLP Other Comprehensive Income (Loss) (1)
(2) 8
Distributions Received 56 23
Contributions Paid 62 31
(1)Cenovus does not receive 35 percent of HMLP’s net earnings and OCI due to the nature of the profit-sharing arrangement.
The carrying value of the Company’s investment in HMLP as at December 31, 2023, was $nil (December 31, 2022 – $nil) due to losses in excess of the equity investment. Cenovus had unrecognized cumulative losses from earnings and OCI, net of tax, of $31 million as at December 31, 2023 (December 31, 2022 – $28 million).
13. OTHER ASSETS
As at December 31,
2023 2022
Private Equity Investments (Note 22)
131 55
Precious Metals 76 86
Net Investment in Finance Leases 61 62
Long-Term Receivables and Prepaids
50 120
Intangible Assets (1)
19
318 342
(1)For the twelve months ended December 31, 2022, $49 million of previously capitalized intangible asset costs were written off as DD&A in the Oil Sands segment as the carrying value was not considered to be recoverable.
14. DEBT AND CAPITAL STRUCTURE
A) Short-Term Borrowings
As at December 31, Notes 2023 2022
Uncommitted Demand Facilities i
WRB Uncommitted Demand Facilities ii 179 115
Total Debt Principal 179 115
i) Uncommitted Demand Facilities
As at December 31, 2023, the Company had uncommitted demand facilities of $1.7 billion (December 31, 2022 – $1.9 billion) in place, of which $1.4 billion may be drawn for general purposes, or the full amount may be available to issue letters of credit. As at December 31, 2023, there were outstanding letters of credit aggregating to $364 million (December 31, 2022 – $490 million) and no direct borrowings.
ii) WRB Uncommitted Demand Facilities
WRB has uncommitted demand facilities of US$450 million that may be used to cover short-term working capital requirements, of which Cenovus’s proportionate share is 50 percent. As at December 31, 2023, US$270 million was drawn on these facilities, of which Cenovus’s proportionate share was US$135 million (C$179 million). As at December 31, 2022, Cenovus’s proportionate share of the capacity was US$225 million and US$85 million (C$115 million) of this capacity was drawn.


Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
25


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
B) Long-Term Debt
As at December 31,
Notes 2023 2022
Committed Credit Facility (1)
i
U.S. Dollar Denominated Unsecured Notes ii 5,028 6,537
Canadian Dollar Unsecured Notes ii 2,000 2,000
Total Debt Principal 7,028 8,537
Debt Premiums (Discounts), Net, and Transaction Costs 80 154
Long-Term Debt 7,108 8,691
(1) The committed credit facility may include Bankers’ Acceptances, secured overnight financing rate loans, prime rate loans and U.S. base rate loans.
i) Committed Credit Facility
As at December 31, 2023, the Company had in place a committed credit facility that consists of a $1.8 billion tranche maturing on November 10, 2025, and a $3.7 billion tranche maturing on November 10, 2026. As at December 31, 2023, no amount was drawn on the credit facility (December 31, 2022 – $nil).
ii) U.S. Dollar Denominated and Canadian Dollar Denominated Unsecured Notes
For twelve months ended December 31, 2023, the Company purchased US$1.0 billion (2022 – US$2.6 billion and C$750 million) in principal of its outstanding unsecured notes.
The principal amounts of the Company’s outstanding unsecured notes are:
2023
2022
As at December 31, US$ Principal C$ Principal
and Equivalent
US$ Principal C$ Principal
and Equivalent
U.S. Dollar Unsecured Notes
5.38% due July 15, 2025
133 176 133 181
4.25% due April 15, 2027
373 493 373 505
4.40% due April 15, 2029
183 241 240 324
2.65% due January 15, 2032
500 661 500 677
5.25% due June 15, 2037
333 441 583 790
6.80% due September 15, 2037
191 253 387 524
6.75% due November 15, 2039
652 862 935 1,267
4.45% due September 15, 2042
91 121 97 131
5.20% due September 15, 2043
27 36 29 39
5.40% due June 15, 2047
569 752 800 1,083
3.75% due February 15, 2052
750 992 750 1,016
3,802 5,028 4,827 6,537
Canadian Dollar Unsecured Notes
3.60% due March 10, 2027
750 750
3.50% due February 7, 2028
1,250 1,250
2,000 2,000
Total Unsecured Notes 7,028 8,537
As at December 31, 2023, the Company was in compliance with all of the terms of its debt agreements. Under the terms of Cenovus’s committed credit facility, the Company is required to maintain a total debt to capitalization ratio, as defined in the agreement, not to exceed 65 percent. The Company is well below this limit.
C) Capital Structure
Cenovus’s capital structure consists of shareholders’ equity plus Net Debt. Net Debt includes the Company’s short-term borrowings, and the current and long-term portions of long-term debt, net of cash and cash equivalents and short-term investments. Net Debt is used in managing the Company’s capital structure. The Company’s objectives when managing its capital structure are to maintain financial flexibility, preserve access to capital markets, ensure its ability to finance internally generated growth and to fund potential acquisitions while maintaining the ability to meet the Company’s financial obligations as they come due. To ensure financial resilience, Cenovus may, among other actions, adjust capital and operating spending, draw down on its credit facilities or repay existing debt, adjust dividends paid to shareholders, purchase the Company’s common shares or preferred shares for cancellation, issue new debt, or issue new shares.

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
26


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
Cenovus monitors its capital structure and financing requirements using, among other things, Total Debt, Net Debt to adjusted earnings before interest, taxes and DD&A (“Adjusted EBITDA”), Net Debt to Adjusted Funds Flow and Net Debt to Capitalization. These measures are used to steward Cenovus’s overall debt position as measures of Cenovus’s overall financial strength.
Cenovus targets a Net Debt to Adjusted EBITDA ratio and a Net Debt to Adjusted Funds Flow ratio of approximately 1.0 times and Net Debt at or below $4 billion over the long-term at a WTI price of US$45.00 per barrel. These measures may fluctuate periodically outside this range due to factors such as persistently high or low commodity prices.
On November 3, 2023, Cenovus filed a base shelf prospectus that allows the Company to offer, from time to time, debt securities, common shares, preferred shares, subscription receipts, warrants, share purchase contracts and units in Canada, the U.S. and elsewhere as permitted by law. The base shelf prospectus will expire in December 2025. Offerings under the base shelf prospectus are subject to market conditions on terms set forth in one or more prospectus supplements.
Net Debt to Adjusted EBITDA
As at December 31,
2023 2022
Short-Term Borrowings 179 115
Current Portion of Long-Term Debt
Long-Term Portion of Long-Term Debt 7,108 8,691
Total Debt 7,287 8,806
Less: Cash and Cash Equivalents (2,227) (4,524)
Net Debt 5,060 4,282
Net Earnings (Loss) 4,109 6,450
Add (Deduct):
Finance Costs 671 820
Interest Income (133) (81)
Income Tax Expense (Recovery) 931 2,281
Depreciation, Depletion and Amortization 4,644 4,679
Exploration and Evaluation Asset Write-downs 29 64
(Income) Loss From Equity-Accounted Affiliates (51) (15)
Unrealized (Gain) Loss on Risk Management 52 (126)
Foreign Exchange (Gain) Loss, Net (67) 343
Revaluation (Gain) Loss 34 (549)
Re-measurement of Contingent Payments 59 162
(Gain) Loss on Divestiture of Assets (14) (269)
Other (Income) Loss, Net (63) (532)
Adjusted EBITDA (1)
10,201 13,227
Net Debt to Adjusted EBITDA (times)
0.5 0.3
(1)Calculated on a trailing twelve-month basis.
Net Debt to Adjusted Funds Flow
As at December 31,
2023 2022
Net Debt 5,060 4,282
Cash From (Used in) Operating Activities 7,388 11,403
(Add) Deduct:
Settlement of Decommissioning Liabilities (222) (150)
Net Change in Non-Cash Working Capital (1,193) 575
Adjusted Funds Flow (1)
8,803 10,978
Net Debt to Adjusted Funds Flow (times)
0.6 0.4
(1)Calculated on a trailing twelve-month basis.


Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
27


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
Net Debt to Capitalization
As at December 31,
2023 2022
Net Debt 5,060 4,282
Shareholders’ Equity
28,698 27,576
Capitalization 33,758 31,858
Net Debt to Capitalization (percent)
15  13 
15. CONTINGENT PAYMENTS
In connection with the Sunrise Acquisition, Cenovus agreed to make quarterly variable payments, up to $600 million, from SOSP to bp Canada for up to eight quarters subsequent to August 31, 2022, when the average WCS price in a quarter exceeds $52.00 per barrel. The quarterly payment is calculated as $2.8 million plus the difference between the average WCS price less $53.00 multiplied by $2.8 million, for any of the eight quarters the average WCS price is equal to or greater than $52.00 per barrel. If the average WCS price is less than $52.00 per barrel, no payment will be made for that quarter. The maximum payment over the remaining term of the contract is $194 million.
The variable payment will be re-measured to fair value at each reporting date, with changes in fair value recorded to re-measurement of contingent payments.
In the twelve months ended December 31, 2023, payments totaled $299 million for the quarterly payment periods ending November 30, 2022, February 28, 2023, May 31, 2023, and August 31, 2023.
Total
As at December 31, 2022
419
Liabilities Settled or Payable (314)
Re-measurement
59
As at December 31, 2023
164
16. DECOMMISSIONING LIABILITIES
Total
As at December 31, 2022
3,559
Liabilities Incurred 14
Liabilities Acquired (Note 3) (1)
5
Liabilities Settled (221)
Liabilities Disposed (Note 3) (1)
(5)
Change in Estimated Future Cash Flows 330
Change in Discount Rate 265
Unwinding of Discount on Decommissioning Liabilities (Note 4)
220
Exchange Rate Movements (12)
As at December 31, 2023
4,155
(1)In connection with the Toledo Acquisition, Cenovus was deemed to have disposed of its pre-existing interest and reacquired it at fair value as required by IFRS 3. As at February 28, 2023, the carrying value of the pre-existing interest in Toledo’s decommissioning liabilities was $2 million.
As at December 31, 2023, the undiscounted amount of estimated future cash flows required to settle the obligation was discounted using a credit-adjusted risk-free rate of 5.5 percent (December 31, 2022 – 6.1 percent) and assumes an inflation rate of two percent (December 31, 2022 – two percent).
The Company deposits cash into restricted accounts that will be used to fund decommissioning liabilities in offshore China in accordance with the provisions of the regulations of the People’s Republic of China. As at December 31, 2023, the Company had $211 million in restricted cash (December 31, 2022 – $209 million).

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
28


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
17. OTHER LIABILITIES
As at December 31, 2023 2022
Renewable Volume Obligation, Net (1)
397 101
Pension and Other Post-Employment Benefit Plan 276 201
Provision for West White Rose Expansion Project
156 204
Provisions for Onerous and Unfavourable Contracts 72 95
Employee Long-Term Incentives 100 245
Drilling Provisions 25 31
Deferred Revenue 45
Other 157 120
1,183 1,042
(1)The gross amounts of the renewable volume obligation and renewable identification numbers asset were $785 million and $388 million, respectively (December 31, 2022 – $1.1 billion and $1.0 billion, respectively).
18. SHARE CAPITAL AND WARRANTS
A) Authorized
Cenovus is authorized to issue an unlimited number of common shares, and first and second preferred shares not exceeding, in aggregate, 20 percent of the number of issued and outstanding common shares. The first and second preferred shares may be issued in one or more series with rights and conditions to be determined by the Board of Directors prior to issuance and subject to the Company’s articles.
B) Issued and Outstanding – Common Shares
2023 2022
Number of
Common
Shares
(thousands)
Amount
Number of
Common
Shares
(thousands)
Amount
Outstanding, Beginning of Year 1,909,190 16,320 2,001,211 17,016
Issued Upon Exercise of Warrants 2,610 26 9,399 93
Issued Under Stock Option Plans 3,679 58 11,069 170
Purchase of Common Shares Under NCIB (43,611) (373) (112,489) (959)
Outstanding, End of Year 1,871,868 16,031 1,909,190 16,320
As at December 31, 2023, there were 45.5 million (December 31, 2022 – 43.1 million) common shares available for future issuance under the stock option plan.
C) Normal Course Issuer Bid
On November 7, 2023, the Company received approval from the TSX to renew the Company’s NCIB program to purchase up to 133.2 million common shares from November 9, 2023, to November 8, 2024.
For the twelve months ended December 31, 2023, the Company purchased and cancelled 43.6 million common shares (2022 – 112.5 million) through the NCIB. The shares were purchased at a volume weighted average price of $24.32 per common share (2022 – $22.49) for a total of $1.1 billion (2022 – $2.5 billion). Paid in surplus was reduced by $688 million (2022 – $1.6 billion), representing the excess of the purchase price of the common shares over their average carrying value.
From January 1, 2024, to February 12, 2024, the Company purchased an additional 4.3 million common shares for $92 million. As at February 12, 2024, the Company can further purchase up to 118.3 million common shares under the NCIB.

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
D) Issued and Outstanding – Preferred Shares
For the twelve months ended December 31, 2023, there were no preferred shares issued. As at December 31, 2023, there were 36 million preferred shares outstanding (December 31, 2022 – 36 million), with a carrying value of $519 million (December 31, 2022 – $519 million).
As at December 31, 2023
Dividend Reset Date
Dividend Rate (percent)
Number of Preferred Shares (thousands)
Series 1 First Preferred Shares March 31, 2026 2.58  10,740
Series 2 First Preferred Shares (1)
Quarterly 6.77  1,260
Series 3 First Preferred Shares December 31, 2024 4.69  10,000
Series 5 First Preferred Shares March 31, 2025 4.59  8,000
Series 7 First Preferred Shares June 30, 2025 3.94  6,000
(1) The floating-rate dividend was 5.86 percent from December 31, 2022, to March 30, 2023; 6.29 percent for the period from March 31, 2023, to June 29, 2023; 6.29 percent from June 30, 2023, to September 29, 2023; and 6.89 percent for the period from September 30, 2023, to December 30, 2023.
E) Issued and Outstanding – Warrants
2023 2022
Number of
Warrants
(thousands)
Amount
Number of
Warrants
(thousands)
Amount
Outstanding, Beginning of Year 55,720 184 65,119 215
Exercised (2,610) (8) (9,399) (31)
Purchased and Cancelled (45,485) (151)
Outstanding, End of Year 7,625 25 55,720 184
The exercise price of the warrants is $6.54 per share.
On June 14, 2023, Cenovus purchased and cancelled 45.5 million warrants. The price for each warrant purchased represented a price of $22.18 per common share, less the warrant exercise price of $6.54 per common share, for a total of $711 million. Retained earnings was reduced by $560 million, representing the excess of the purchase price of the warrants over their average carrying value, and $2 million in transaction costs.
The purchased warrants were paid in full by December 31, 2023.
19. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Pension and Other Post-Employment Benefits Private Equity Instruments Foreign Currency Translation Adjustment Total
As at December 31, 2021
28 27 629 684
Other Comprehensive Income (Loss), Before Tax 96 2 713 811
Income Tax (Expense) Recovery (25) (25)
As at December 31, 2022
99 29 1,342 1,470
Other Comprehensive Income (Loss), Before Tax (58) 63 (286) (281)
Reclassification on Divestiture (Note 3)
12 12
Income Tax (Expense) Recovery 14 (7) 7
As at December 31, 2023
55 85 1,068 1,208

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
30


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
20. STOCK-BASED COMPENSATION PLANS
Cenovus has a number of stock-based compensation plans that include NSRs, Cenovus replacement stock options, performance share units (“PSUs”), restricted share units (“RSUs”) and deferred share units.
On February 27, 2023, Cenovus granted PSUs and RSUs to certain employees under its new Performance Share Unit Plan for Local Employees in the Asia Pacific Region and Restricted Share Unit Plan for Local Employees in the Asia Pacific Region. The PSUs are time-vested whole-share units that entitle employees to receive a cash payment equal to the value of a Cenovus common share. The number of units eligible to vest is determined by a multiplier that ranges from zero percent to 200 percent and is based on the Company achieving key pre-determined performance measures. The RSUs are whole-share units and entitle employees to receive, upon vesting, a cash payment equal to the value of a Cenovus common share.
The following tables summarize information related to the Company’s stock-based compensation plans:
Units
Outstanding
Units
Exercisable
As at December 31, 2023
(thousands) (thousands)
Stock Options With Associated Net Settlement Rights 11,895 6,658 
Cenovus Replacement Stock Options 1,005 1,005 
Performance Share Units 10,243 — 
Restricted Share Units 7,234 — 
Deferred Share Units 1,691 1,691 
The weighted average exercise price of NSRs and Cenovus replacement stock options outstanding as at December 31, 2023, were $13.66 and $6.49, respectively.
Units
Granted
Units
Vested and
Exercised/
Paid Out
For the twelve months ended December 31, 2023
(thousands) (thousands)
Stock Options With Associated Net Settlement Rights 1,571 3,839
Cenovus Replacement Stock Options 2,113
Performance Share Units 2,539 972
Restricted Share Units 2,961 2,300
Deferred Share Units 185 37
Weighted Average Exercise Price
Units
Exercised
For the twelve months ended December 31, 2023
($/unit) (thousands)
Stock Options With Associated Net Settlement Rights Exercised for Net Cash Payment 12.85 3,621
Stock Options With Associated Net Settlement Rights Exercised and Net Settled for Common Shares (1)
17.02 218
Cenovus Replacement Stock Options Exercised and Net Settled for Cash 9.98 2,110
Cenovus Replacement Stock Options Exercised and Net Settled for Common Shares (2)
3.54 3
(1)NSRs were net settled for 56 thousand common shares.
(2)Cenovus replacement stock options were net settled for 2 thousand common shares.
The following table summarizes the stock-based compensation expense (recovery) recorded for all plans:
Three Months Ended Twelve Months Ended
For the periods ended December 31,
2023 2022 2023 2022
Stock Options With Associated Net Settlement Rights 2 3 11 15
Cenovus Replacement Stock Options (4) 17 (5) 53
Performance Share Units (78) 117 47 183
Restricted Share Units (10) 35 46 100
Deferred Share Units (9) 8 (2) 22
Stock-Based Compensation Expense (Recovery) (99) 180 97 373

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
31


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
21. RELATED PARTY TRANSACTIONS
Transactions with HMLP are related party transactions as the Company has a 35 percent ownership interest (see Note 12). As the operator of the assets held by HMLP, Cenovus provides management services for which it recovers shared service costs.
The Company is also the contractor for HMLP and constructs its assets based on fixed price contracts or on a cost recovery basis with certain restrictions. For the three and twelve months ended December 31, 2023, the Company charged HMLP $48 million and $160 million, respectively (three and twelve months ended December 31, 2022 – $55 million and $188 million, respectively), for construction costs and management services.
The Company pays an access fee to HMLP for pipeline systems that are used by Cenovus’s blending business. Cenovus also pays HMLP for transportation and storage services. For the three and twelve months ended December 31, 2023, the Company incurred costs of $90 million and $295 million, respectively (three and twelve months ended December 31, 2022 – $66 million and $263 million, respectively), for the use of HMLP’s pipeline systems, as well as for transportation and storage services.
22. FINANCIAL INSTRUMENTS
Cenovus’s financial assets and financial liabilities consist of cash and cash equivalents, accounts receivable and accrued revenues, restricted cash, risk management assets and liabilities, accounts payable and accrued liabilities, short-term borrowings, lease liabilities, contingent payments, long-term debt and certain portions of other assets and other liabilities. Risk management assets and liabilities arise from the use of derivative financial instruments.
A) Fair Value of Non-Derivative Financial Instruments
The fair values of cash and cash equivalents, accounts receivable and accrued revenues, accounts payable and accrued liabilities, and short-term borrowings approximate their carrying amount due to the short-term maturity of these instruments.
The fair values of restricted cash, certain portions of other assets and other liabilities, approximate their carrying amount due to the specific non-tradeable nature of these instruments.
Long-term debt is carried at amortized cost. The estimated fair value of long-term debt was determined based on period-end trading prices of long-term debt on the secondary market (Level 2). As at December 31, 2023, the carrying value of Cenovus’s long-term debt was $7.1 billion and the fair value was $6.6 billion (December 31, 2022, carrying value – $8.7 billion; fair value – $7.8 billion).
The Company classifies certain private equity investments as FVOCI as they are not held for trading and fair value changes are not reflective of the Company’s operations. These assets are carried at fair value in other assets. Fair value is determined based on recent private placement transactions (Level 3) when available.
The following table provides a reconciliation of changes in the fair value of private equity investments classified as FVOCI:
2023
Fair Value, Beginning of Year 55
Acquisitions 13
Changes in Fair Value
63
Fair Value, End of Year 131
B) Fair Value of Risk Management Assets and Liabilities
Risk management assets and liabilities are carried at fair value in accounts receivable and accrued revenues, accounts payable and accrued liabilities (for short-term positions), other liabilities and other assets (for long-term positions). Changes in fair value are recorded in (gain) loss on risk management.
The Company’s risk management assets and liabilities consist of crude oil, condensate, natural gas, and refined product futures, as well as renewable power, power and foreign exchange contracts. The Company may also enter into swaps, forwards, and options to manage commodity, foreign exchange and interest rate exposures.
Crude oil, natural gas, condensate, refined product and power contracts are recorded at their estimated fair value based on the difference between the contracted price and the period-end forward price for the same commodity, using quoted market prices or the period-end forward price for the same commodity extrapolated to the end of the term of the contract (Level 2). The fair value of foreign exchange rate contracts is calculated using external valuation models that incorporate observable market data and foreign exchange forward curves (Level 2).


Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
32


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
The fair value of renewable power contracts are calculated using internal valuation models that incorporate broker pricing for relevant markets, some observable market prices and extrapolated market prices with inflation assumptions (Level 3). The fair value of renewable power contracts are calculated by Cenovus’s internal valuation team that consists of individuals who are knowledgeable and have experience in fair value techniques.
Summary of Risk Management Positions
2023 2022
Risk Management Risk Management
As at December 31, Asset Liability Net Asset Liability Net
Crude Oil, Natural Gas, Condensate and Refined Products 11 19 (8) 2 40 (38)
Power Swap Contracts 2 2 1 7 (6)
Renewable Power Contracts 18 18 90 90
31 19 12 93 47 46
The following table presents the Company’s fair value hierarchy for risk management assets and liabilities carried at fair value:
As at December 31, 2023 2022
Level 2 – Prices Sourced From Observable Data or Market Corroboration (6) (44)
Level 3 – Prices Sourced From Partially Unobservable Data 18 90
12 46
The following table provides a reconciliation of changes in the fair value of Cenovus’s risk management assets and liabilities:
2023
Fair Value of Contracts, Beginning of Year 46
Change in Fair Value of Contracts Entered Into During the Year (45)
Fair Value of Contracts Realized During the Year 9
Unrealized Foreign Exchange Gain (Loss) on U.S. Dollar Contracts 2
Fair Value of Contracts, End of Year 12
C) Earnings Impact of (Gains) Losses From Risk Management Positions
Three Months Ended Twelve Months Ended
For the periods ended December 31,
2023 2022 2023 2022
Realized (Gain) Loss 8 134 9 1,762
Unrealized (Gain) Loss (36) (38) 52 (126)
(Gain) Loss on Risk Management
(28) 96 61 1,636
Realized and unrealized gains and losses on risk management are recorded in the reportable segment to which the derivative instrument relates.

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
33


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
D) Fair Value of Contingent Payments
The variable payment (Level 3) associated with the Sunrise Acquisition is carried at fair value in the contingent payments. Fair value is estimated by calculating the present value of the expected future cash flows using an option pricing model, which assumes the probability distribution for WCS is based on the volatility of WTI options, volatility of Canadian-U.S. foreign exchange rate options and both WTI and WCS futures pricing that was discounted using a credit-adjusted risk-free rate. Fair value of the variable payment was calculated by Cenovus’s internal valuation team, which consists of individuals who are knowledgeable and have experience in fair value techniques. As at December 31, 2023, the fair value of the variable payment was estimated to be $164 million applying a credit-adjusted risk-free rate of 5.6 percent.
As at December 31, 2023, average WCS forward pricing for the remaining term of the variable payment is $71.86 per barrel. The average volatility of WTI options and the Canadian-U.S. foreign exchange rates was 39.4 percent and 5.8 percent, respectively.
As at December 31, 2023, changes in WCS forward prices, with fluctuations in all other variables held constant, could have impacted earnings before income tax as follows:
Sensitivity Range Increase Decrease
WCS Forward Prices
± $10.00 per barrel
(21) 45
As at December 31, 2023, a 10 percent increase or decrease in WTI option price volatility, or a five percent increase or decrease in Canadian to U.S. dollar foreign exchange rate option volatility would have resulted in nominal changes to earnings before income tax.
23. RISK MANAGEMENT
Cenovus is exposed to financial risks, including market risk related to commodity prices, foreign exchange rates, interest rates, commodity power prices as well as credit risk and liquidity risk.
To manage exposure to commodity price movements between when products are produced or purchased and when sold to the customer or used by Cenovus, the Company may periodically enter into financial positions as a part of ongoing operations to market the Company’s production and physical inventory positions of crude oil, natural gas, condensate, refined products, and power consumption. The Company may also enter into arrangements, such as renewable power contracts or power swaps, to manage exposure to future carbon compliance costs, power prices, energy costs associated with the production, transportation and refining of crude oil, or to offset select carbon emissions.
To manage exposure to interest rate volatility, the Company may enter into interest rate swap contracts. To mitigate the Company’s exposure to foreign exchange rate fluctuations, the Company periodically enters into foreign exchange contracts. To manage interest costs on short-term borrowings, the Company periodically enters into cross currency interest rate swaps.
As at December 31, 2023, the fair value of risk management positions was a net asset of $12 million (see Note 22). As at December 31, 2023, there were no foreign exchange contracts, interest rate contracts or cross currency interest rate swap contracts outstanding. As at December 31, 2022, there were forward exchange contracts with a notional value of US$168 million outstanding.











Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
34


NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
Net Fair Value of Risk Management Positions
As at December 31, 2023
Notional Volumes (1) (2)
Terms (3)
Weighted
Average
Price (1) (2)
Fair Value Asset (Liability)
Futures Contracts Related to Blending (4)
WTI Fixed – Sell
3.5 MMbbls
January 2024 – December 2024
US$75.22/bbl
16
WTI Fixed – Buy
1.5 MMbbls
January 2024 – December 2024
US$73.69/bbl
(4)
Power Swap Contracts 2
Renewable Power Contracts 18
Other Financial Positions (5)
(20)
Total Fair Value 12
(1)    Million barrels (“MMbbls”).
(2)    Notional volumes and weighted average price are based on multiple contracts of varying amounts and terms over the respective time period; therefore, the notional volumes and weighted average price may fluctuate from month to month.
(3)    Includes individual contracts with varying terms, the longest of which is 13 months.
(4)    WTI futures contracts are used to help manage price exposure to condensate used for blending.
(5)    Includes risk management positions related to WCS, heavy oil and condensate differential contracts, Belvieu fixed price contracts, reformulated blendstock for oxygenate blending gasoline contracts, heating oil and natural gas fixed price contracts and the Company’s U.S. refining and marketing activities.
A) Commodity Price and Foreign Exchange Rate Risk
Sensitivities
The following table summarizes the sensitivity of the fair value of Cenovus’s risk management positions to independent fluctuations in commodity prices and foreign exchange rates, with all other variables held constant. Management believes the fluctuations identified in the table below are a reasonable measure of volatility.
The impact of the below on the Company’s open risk management positions could have resulted in an unrealized gain (loss) impacting earnings before income tax as follows:
As at December 31, 2023
Sensitivity Range Increase Decrease
Power Commodity Price
± C$20.00/MWh (1) Applied to Power Hedges
92 (92)
(1)One thousand kilowatts of electricity per hour (“MWh”).
A sensitivity analysis for the following fluctuating commodity prices and foreign exchange rates on the Company’s open risk management positions was found to result in a nominal unrealized gain (loss) impacting earnings before income tax:
•A US$10.00 per barrel increase or decrease in the benchmark crude oil and benchmark condensate commodity price (primarily WTI).
•A US$2.50 per barrel increase or decrease in the WCS (excluding the Hardisty location) and condensate differential price.
•A US$5.00 per barrel increase or decrease in the WCS differential price.
•A US$10.00 per barrel increase or decrease in refined products commodity prices.
•A US$1.00 per one thousand cubic feet increase or decrease in the Henry Hub commodity price.
•A US$0.50 per one thousand cubic feet increase or decrease in natural gas basis prices.
•A $0.05 increase or decrease in the U.S. to Canadian dollar exchange rate.
B) Credit Risk
Credit risk arises from the potential that the Company may incur a financial loss if a counterparty to a financial instrument fails to meet its financial or performance obligations in accordance with agreed terms. Cenovus has in place a Credit Policy approved by the Audit Committee and the Board of Directors, which is designed to ensure that its credit exposures are within an acceptable risk level. The Credit Policy outlines the roles and responsibilities related to credit risk, sets a framework for how credit exposures will be measured, monitored and mitigated, and sets parameters around credit concentration limits.
Cenovus assesses the credit risk of new counterparties and continues risk-based monitoring of all counterparties on an ongoing basis. A substantial portion of Cenovus’s accounts receivable are with customers in the oil and gas industry and are subject to normal industry credit risks. Cenovus’s exposure to its counterparties is within its credit policy tolerances. The maximum credit risk exposure associated with accounts receivable and accrued revenues, net investment in finance leases, risk management assets and long-term receivables is the total carrying value.
As at December 31, 2023, approximately 83 percent (December 31, 2022 – 85 percent) of the Company’s accounts receivable and accrued revenues were with investment grade counterparties, and 98 percent of the Company’s accounts receivable were outstanding for less than 60 days. The associated average expected credit loss on these accounts was 0.4 percent as at December 31, 2023 (December 31, 2022 – 0.4 percent).

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
C) Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet all of its financial obligations as they become due. Liquidity risk also includes the risk of not being able to liquidate assets in a timely manner at a reasonable price. Cenovus manages its liquidity risk through the active management of cash and debt, by maintaining appropriate access to credit, which may be impacted by the Company’s credit ratings, and by ensuring that it has access to multiple sources of capital. As disclosed in Note 14, over the long term, Cenovus targets a Net Debt to Adjusted EBITDA ratio and Net Debt to Adjusted Funds Flow ratio of approximately 1.0 times at the bottom of the commodity price cycle to manage the Company’s overall debt position.
Undiscounted cash outflows relating to financial liabilities are:
As at December 31, 2023
 1 Year Years 2 and 3 Years 4 and 5 Thereafter Total
Accounts Payable and Accrued Liabilities (1)
5,480 5,480
Short-Term Borrowings
179 179
Contingent Payments 168 168
Lease Liabilities (2)
438 712 569 2,635 4,354
Long-Term Debt (2)
313 792 3,007 7,145 11,257
As at December 31, 2022
1 Year Years 2 and 3 Years 4 and 5 Thereafter Total
Accounts Payable and Accrued Liabilities (1)
6,124 6,124
Short-Term Borrowings
115 115
Contingent Payments 271 167 438
Lease Liabilities (2)
426 746 596 2,889 4,657
Long-Term Debt (2)
401 983 2,014 11,196 14,594
(1)Includes current risk management liabilities.
(2)Principal and interest, including current portion, if applicable.
24. SUPPLEMENTARY CASH FLOW INFORMATION
A) Working Capital
As at December 31,
2023 2022
Total Current Assets 9,708 12,430
Total Current Liabilities 6,210 8,021
Working Capital 3,498 4,409
As at December 31, 2023, adjusted working capital, which excludes the current portion of the contingent payments, was $3.7 billion (December 31, 2022 – $4.7 billion).
Changes in non-cash working capital is as follows:
Three Months Ended Twelve Months Ended
For the periods ended December 31,
2023 2022 2023 2022
Accounts Receivable and Accrued Revenues 1,411 719 314 838
Income Tax Receivable (283) 30 (295) (58)
Inventories 559 29 216 (143)
Accounts Payable and Accrued Liabilities (754) (136) (685) (524)
Income Tax Payable (56) 123 (1,112) 1,000
Total Change in Non-Cash Working Capital 877 765 (1,562) 1,113
Net Change in Non-Cash Working Capital – Operating Activities 949 673 (1,193) 575
Net Change in Non-Cash Working Capital – Investing Activities (72) 92 (369) 538
Total Change in Non-Cash Working Capital 877 765 (1,562) 1,113

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
B) Reconciliation of Liabilities
The following table provides a reconciliation of liabilities to cash flows arising from financing activities:
Dividends Payable Warrant Purchase Payable Short-Term Borrowings Long-Term Debt Lease Liabilities
As at December 31, 2021
79 12,385 2,957
Changes From Financing Cash Flows:
Net Issuance (Repayment) of Short-Term Borrowings 34
Repayment of Long-Term Debt
(4,149)
Principal Repayment of Leases (302)
Base Dividends Paid on Common Shares (682)
Variable Dividends Paid on Common Shares (219)
Dividends Paid on Preferred Shares (26)
Non-Cash Changes:
Net Premium (Discount) on Redemption of Long-Term Debt (29)
Finance and Transaction Costs (28)
Lease Additions 25
Base Dividends Declared on Common Shares 682
Variable Dividends Declared on Common Shares 219
Dividends Declared on Preferred Shares 35
Exchange Rate Movements and Other 2 512 156
As at December 31, 2022
9 115 8,691 2,836
Changes From Financing Cash Flows:
Net Issuance (Repayment) of Short-Term Borrowings 58
Repayment of Long-Term Debt
(1,346)
Principal Repayment of Leases (288)
Base Dividends Paid on Common Shares (990)
Dividends Paid on Preferred Shares (36)
Payment for Purchase of Warrants (711)
Finance and Transaction Costs (2)
Non-Cash Changes:
Net Premium (Discount) on Redemption of Long-Term Debt (84)
Finance and Transaction Costs 2 (19)
Lease Acquisitions 33
Lease Additions 57
Lease Divestitures (11)
Base Dividends Declared on Common Shares 990
Dividends Declared on Preferred Shares 36
Warrants Purchased and Cancelled 711
Exchange Rate Movements and Other 6 (134) 31
As at December 31, 2023
9 179 7,108 2,658

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
25. COMMITMENTS AND CONTINGENCIES
A) Commitments
Cenovus has entered into various commitments in the normal course of operations. Commitments that have original maturities less than one year are excluded from the table below. Future payments for the Company’s commitments are below:
As at December 31, 2023
1 Year 2 Years 3 Years 4 Years 5 Years Thereafter Total
Transportation and Storage (1) (2)
2,018 1,927 1,680 1,663 1,641 15,738 24,667
Product Purchases
617 617
Real Estate
57 57 59 63 58 604 898
Obligation to Fund HCML
94 94 94 89 52 90 513
Other Long-Term Commitments (3)
417 194 184 175 166 965 2,101
Total Commitments
3,203 2,272 2,017 1,990 1,917 17,397 28,796
(1)Includes transportation commitments that are subject to regulatory approval or were approved, but are not yet in service of $13.0 billion. Terms are up to 20 years on commencement. Estimated tolls are subject to change pending review by the Canada Energy Regulator.
(2)As at December 31, 2023, includes $2.1 billion related to long-term transportation and storage commitments with HMLP.
(3)The Company acquired $538 million of commitments as part of the Toledo Acquisition on February 28, 2023.
There were outstanding letters of credit aggregating to $364 million (December 31, 2022 – $490 million) issued as security for financial and performance conditions under certain contracts. Subsequent to December 31, 2023, Cenovus entered into a new transportation commitment for $587 million.
B) Contingencies
Legal Proceedings
Cenovus is involved in a limited number of legal claims associated with the normal course of operations. Cenovus believes that any liabilities that might arise from such matters, to the extent not provided for, are not likely to have a material effect on its interim Consolidated Financial Statements.
Income Tax Matters
The tax regulations and legislation and interpretations thereof in the various jurisdictions in which Cenovus operates are continually changing. As a result, there are usually a number of tax matters under review. Management believes that the provision for taxes is adequate.
26. PRIOR PERIOD REVISIONS
Certain comparative information presented in the Consolidated Statements of Earnings (Loss) and segment disclosures was revised for classification changes.
In September 2023, the Company made adjustments to ensure the consistent treatment of sales between segments and to correct the elimination of these transactions on consolidation. The following adjustments were made:
•Report Conventional segment sales between segments on a gross basis, which resulted in a reclassification between gross sales and transportation and blending expense.
•Report sales of feedstock between the Oil Sands, Conventional and U.S. Refining segments on a net basis, which resulted in a reclassification between gross sales and purchased product.
Offsetting adjustments were made to the Corporate and Eliminations segment. The above items had no impact to net earnings (loss), operating margin, segment income (loss), cash flows or financial position.
It was also identified that the elimination of sales of diluent, natural gas and associated transportation costs between segments were recorded to the incorrect line item in the Corporate and Eliminations segment. The adjustment resulted in an understatement of operating expense, overstatement of purchased product and an overstatement of transportation and blending expense on the Consolidated Statements of Earnings (Loss). There was no impact to net earnings (loss), operating margin, segment income (loss), cash flows or financial position.

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
All amounts in $ millions, unless otherwise indicated
For the periods ended December 31, 2023
The following table reconciles the amounts previously reported in the Consolidated Statements of Earnings (Loss) and segmented disclosures to the corresponding revised amounts:
Three and Twelve Months Ended December 31, 2022
Three Months Ended December 31, 2022 Twelve Months Ended December 31, 2022

Oil Sands Segment
Previously Reported Revisions Revised Balance Previously Reported Revisions Revised Balance
Gross Sales
6,731  (78) 6,653 34,775  (92) 34,683 
Purchased Product 594  (78) 516  4,810  (92) 4,718 
6,137  —  6,137  29,965  —  29,965 
Conventional Segment
Gross Sales 1,131  22  1,153 4,332  107  4,439 
Transportation and Blending 37  22  59  143  107  250 
1,094  —  1,094  4,189  —  4,189 

U.S. Refining Segment
Gross Sales
6,608  (78) 6,530  30,310  (92) 30,218 
Purchased Product 5,747  (78) 5,669  26,112  (92) 26,020 
861 861 4,198  —  4,198

Corporate and Eliminations Segment
Gross Sales (1,749) 134  (1,615) (7,464) 77  (7,387)
Purchased Product
(1,320) 168  (1,152) (5,533) 341  (5,192)
Transportation and Blending (136) (128) (264) (664) (511) (1,175)
Operating (352) 94  (258) (1,270) 247  (1,023)
59 59 3 3

Consolidated
Purchased Product 6,908  12  6,920  33,801  157  33,958 
Transportation and Blending 2,826  (106) 2,720  11,530  (404) 11,126 
Operating 1,362  94  1,456  5,569  247  5,816 
11,096 11,096 50,900 50,900

Cenovus Energy Inc. – Q4 2023 Interim Consolidated Financial Statements
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