Headquartered in Calgary, Canada, Cenovus Energy Inc. (CVE) develops, produces, and markets crude oil, natural gas liquids, and natural gas in Canada, the United States, and the Asia Pacific region. The company operates through Oil Sands; Conventional; Offshore; Canadian Manufacturing; U.S. Manufacturing; and Retail segments. CVE shares have gained 137.8% over the past year and 121.6% over the past nine months to close the last trading session at $18.48. The stock has gained 50.5% year-to-date, driven by the geopolitical issues that have exacerbated concerns in an already-tight oil market, pushing the crude prices to multi-year highs.
Moreover, CVE shareholders have a reason to smile with the company reporting a more than seven-fold jump in quarterly profit that surpassed analyst estimates and approved tripling the base dividend starting with the second quarter of 2022. CVE also targets to return 50% of quarterly excess free funds flow to shareholders when reported net debt is less than $9 billion. Additionally, CVE targets to return 100% of that quarter’s excess free funds flow to shareholders through share buybacks and/or variable dividends when reported net debt is at the $4 billion floor.
