Cenovus Energy (CVE) plans to boost its oil production in 2023 to meet global demand that it expects to remain strong in the months ahead.
The Calgary-based oil and gas company said it is planning for $4 billion to $4.5 billion in capital expenditures during 2023.
That outlay includes $1.2 billion to $1.7 billion for optimization and growth, including development of its West White Rose project off the coast of Newfoundland, as well as optimization of its various Alberta oilsands projects.
The company expects total upstream production of 800,000 to 840,000 barrels of oil equivalent per day next year, a year-over-year increase of about 3%.
However, downstream crude oil is expected to increase nearly 30% to between 610,000 and 660,000 barrels per day.
Cenovus is forecasting an average price for West Texas Intermediate (WTI) crude oil, the U.S. standard, of $77 U.S. per barrel in 2023.
Oil prices have fallen nearly 20% in the past month, with WTI crude oil now trading at $72.39 U.S. per barrel.
Cenovus added that it expects to reach its net debt target of $4 billion by the end of this year and plans to start returning 100% of its excess free cash flow to shareholders in 2023.
Cenovus’ stock is up 53% this year at $24.96 per share.
