Cash flow will be C$3.1 billion ($3.14 billion) to C$4 billion, the Calgary-based company said today in a statement. The producer’s 2012 guidance is for cash of C$3.7 billion.
“Cenovus is forecasting a slight decline in 2013 total cash flow compared with 2012 due to the company’s expectations of lower realized oil prices,” it said in the statement. It expects to invest C$3.2 billion to C$3.6 billion next year.
Cenovus said in an October investor presentation that it’s planning to reach production of about 500,000 barrels a day by 2021, more than three times current output. Cenovus expects oil output to average 180,000 to 196,000 barrels a day next year, an increase of 14 percent from forecast 2012 volumes.
“Cenovus expects continued robust growth in oil production in 2013, mainly due to expanded capacity at its Christina Lake oil-sands operation,” according to the statement.
Along with the 2013 outlook, the company adjusted its 2012 guidance to reflect lower-than-anticipated cash flow in the fourth quarter, citing wider “light-heavy differentials,” lower crude prices and longer-than-expected maintenance at U.S. refineries. It kept a forecast for oil output volumes this year.
Cenovus advanced 0.2 percent to C$33.93 at the close in Toronto yesterday.
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