Cenovus Profit Jumps 83% on Higher Crude Prices and MEG Deal

Cenovus Energy's profit soared by 83% in its first quarter, driven by higher crude prices and increased production following its acquisition of MEG Energy. The Canadian oil and gas producer also announced a 10% increase to its quarterly base dividend.

The company's acquisition of MEG Energy last year strengthened its oil sands portfolio, adding Christina Lake assets and boosting its position as one of Canada's largest heavy oil producers. Total upstream production rose to a record 972,100 barrels of oil equivalent per day in the first quarter, up 19% from a year earlier.

Cenovus's refining margins also improved, with total downstream operating margin standing at C$734 million in the quarter, compared to last year's loss of C$237 million. The company's refinery utilization rate was 97%, and crude throughput was about 458,500 barrels per day.