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by Stockwatch Business Reporter
West Texas Intermediate crude for June delivery added $1.29 to $45.33 on the New York Merc, topping $45 for the first time since early November, while Brent for June added $1.44 to $47.18 (all figures in this para U.S.). Western Canadian Select traded at a discount of $13.50 to WTI ($31.83), up from a discount of $13.85. Natural gas for May lost 3.7 cents to $1.995. The TSX energy index added 1.82 points to close at 187.42.
Cenovus Energy Inc. (CVE) added 31 cents to $19.18 on 4.29 million shares, after releasing its first quarter financials and trumpeting its financial resilience, which it says will allow it to conduct its spending program and maintain its five-cent quarterly dividend even if Brent stays in the $40 (U.S.) range for the rest of the year. The first quarter results were slightly worse than analysts had predicted. Though Cenovus produced 265,500 barrels of oil equivalent a day, in line with analysts' predictions of about 265,300, it posted an operating loss of 51 cents a share (worse than predictions of 40 cents a share) and cash flow of three cents a share (below predictions of 5.5 cents a share). Cenovus brushed this off and emphasized the cost-cutting program that is apparently making it a "cost and efficiency leader." It said it has cut nearly one-third of its staff since the end of 2014 and has been able to get its oil sands operating costs down below $10 a barrel. (Specifically, they were $9.52 a barrel in the first quarter of 2016, down from $10.99 a barrel in the first quarter of 2015.) It added that it plans to spend just $1.2-billion this year. This is down from its original budget, released in December, of up to $1.6-billion, but is in line with the February revision of $1.2-billion to $1.3-billion. Despite Cenovus's seeming to settle on $1.2-billion in its press release, its SEDAR filings still add the "to $1.3-billion," apparently just to be safe.
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