The 50% plunge in the price of oil caused a deep sell-off in oil stocks. We see this in well-known Canadian oil stocks Husky Energy Inc. (TSX:HSE) and Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE), which are down by 22% and 30%, respectively, over the ...
CALGARY - One of the fastest growing companies in the oilsands, Cenovus Energy Inc., is holding the line on hiring for the first time and paring back its capital budget by 15% in the face of low and volatile oil prices.
According to the Financial Post, Cenovus Energy Inc. (TSX: CVE)(NYSE:CVE) expects a US$1.3 billion funding gap between its cash flow and its cash outflows for capex, and paying dividends this year could require the company to take on additional debt.
Cenovus Energy Inc. will have some difficult decisions to make given that estimates for its 2015 cash flow of roughly $1.5-billion implies a funding deficit of almost $1.2-billion after factoring in its dividend.
Cenovus Energy Inc. has lowered its 2015 capital budget to between $1.8 billion and $2 billion, which is about $700 million less than the previous estimate and more than 15 per cent below last year's spending levels.