EPS of 47c beat estimates of 41c; revenue of $13.3B slightly missed estimates. Cenovus opened 2025 with production up 2% vs. a year earlier to 818,900 barrels a day, and full-year growth is on track to increase 2-5%. First oil at Narrows Lake (expected in 3Q) and additional Sunrise pads could drive a more pronounced volume lift in 2H. Cash from operating activities reached C$1.3 billion, with free fund flow at C$983 million despite front-loaded capital spending. Yet believe these figures could be pressured in 2Q and beyond, given the recent pullback in global oil prices. Net debt moved up to C$5.1 billion -- above management’s C$4 billion target, after which buybacks would accelerate to 100% of free cash flow. The base dividend increased 11% to 80 Canadian cents a share and is likely secure, with Cenovus' breakeven near $45 WTI.
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