Cenovus Energy reiterates long-term net debt target of $4B

Following the acquisition of MEG, Cenovus adjusted its shareholder returns framework to balance deleveraging with shareholder returns. Under the adjusted framework, while net debt is above $6B, the company will target to return approximately 50% of excess free funds flow to shareholders, with the remainder allocated to deleveraging. When net debt is between $6B and $4B, the company will target to return approximately 75% of EFFF to shareholders, with the remainder allocated to deleveraging. The long-term net debt target of $4B remains unchanged, and upon reaching the target, Cenovus will target to return approximately 100% of EFFF to shareholders. The company will maintain a flexible and opportunistic approach to managing shareholder returns in a given quarter, prioritizing long-term value creation over a formulaic adherence to target returns.