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2d ago

Cenovus Boosts Dividend as CEO Criticizes Climate Focus and Ottawa–Alberta Energy Deal Stalls

A fight over how quickly to raise Alberta’s industrial carbon price is slowing a plan that ties a West Coast pipeline to a large carbon-capture project.

Andy Cepuch, senior field manager, at the plant — where steam is created, water is processed, and bitumen is diluted and prepared to go for further processing — at the Cenovus Christina Lake oilsands facility southeast of Fort McMurray, Alta., on Wednesday April, 24, 2024. THE CANADIAN PRESS/Amber Bracken

Overview

  • Cenovus reported net earnings of $1.57 billion, up 83% year over year, and raised its base dividend by 10% to 22 cents per share after a strong quarter of oilsands output.
  • Chief executive Jon McKenzie said Canada’s oilsands debate is “myopically focused on the climate agenda” and argued current policies make new investment uncompetitive.
  • The federal–provincial memorandum of understanding outlines a new pipeline to Canada’s West Coast paired with a multi‑billion‑dollar carbon capture and storage project in Alberta.
  • No private builder has committed to the pipeline and the Alberta government is preparing to file a regulatory application as work on implementation details drags on.
  • The deal’s proposed move to an effective $130‑per‑tonne industrial carbon price faces pushback from producers who warn it will deter capital, while the Canadian Climate Institute estimates the average cost impact at about 50 cents per barrel.