2024-02-16 11:23:46 ET
Summary
- Cenovus Energy Inc. has reduced debt by over C$900 million in the latest quarter. It will not be long before the company hits the net debt goal of $4 billion.
- The company's refining abilities insulate a lot of production from thermal oil pricing discounts, allowing for more cash flow in the future.
- Once the net debt reaches C$4 billion, the company plans to double the free cash flow available to shareholders, potentially leading to significant dividend increases.
- Management also has projects to grow the business in the future which would lead to more dividend increases.
- Thermal companies tend to cash flow exceedingly well even at low commodity price levels due to the large upfront costs that create depreciation to help cover later cash flows.
...
Read the full article on Seeking Alpha
For further details see:
Cenovus Energy: Calling All Dividend Investors