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Cenovus Energy Inc
Symbol CVE
Shares Issued 833,193,295
Close 2015-09-02 C$ 17.93
Market Cap C$ 14,939,155,779
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FP says Cenovus likes pipelines, but sees need for rail

2015-09-03 06:28 ET - In the News

The Financial Post reports in its Thursday, Sept. 3, edition that Canadian crude oil producers would prefer to not have to load their barrels on trains. The Post's Yadullah Hussain writes that Cenovus Energy's Bob Pease says: "If I was just a rail player I would hope the [the price discounts] stay wide. ... But as a producer I hope they are as narrow as they can be and I don't move a lot by rail." Mr. Hussain notes that Cenovus recently bought a rail terminal. He says such are the travails of the Western Canadian oil transportation business that rail serves as an insurance policy against pipeline bottlenecks, and wide discounts between Canadian and United States oil benchmark. On Monday, Cenovus completed its $75-million purchase of Canexus's Bruderheim Energy Terminal, giving it ready access to 70,000-barrel-per-day rail capacity. Canexus had sunk $360-million on the project northeast of Edmonton, compelling at least one analyst to call it a "distressed sale." Mr. Pease says: "We love pipeline deliveries. We think pipeline growth is essential, but we also recognize that there could be periods of time when pipeline capacity is not efficient. That was the main motivation (for the terminal deal)."

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