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Operating Margin
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Operating Margin is the total of Upstream Operating Margin plus Downstream Operating Margin.
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| Upstream (5) | Downstream (5) | Total | |||||||
| ($ millions) | 2026 Q2 | 2026 Q1 | 2025 Q2 | 2026 Q2 | 2026 Q1 | 2025 Q2 | 2026 Q2 | 2026 Q1 | 2025 Q2 |
| Revenues | |||||||||
| Gross Sales | 14,231 | 10,370 | 7,394 | 8,157 | 5,627 | 7,743 | 22,388 | 15,997 | 15,137 |
| Less: Royalties | (1,661) | (983) | (621) | — | — | — | (1,661) | (983) | (621) |
| 12,570 | 9,387 | 6,773 | 8,157 | 5,627 | 7,743 | 20,727 | 15,014 | 14,516 | |
| Expenses | |||||||||
| Purchased Product | 2,074 | 1,244 | 1,111 | 6,663 | 4,378 | 6,878 | 8,737 | 5,622 | 7,989 |
| Transportation and Blending | 4,582 | 3,375 | 2,621 | — | — | — | 4,582 | 3,375 | 2,621 |
| Operating | 971 | 1,047 | 896 | 505 | 526 | 947 | 1,476 | 1,573 | 1,843 |
| Realized (Gain) Loss on Risk Management | 28 | 13 | 8 | 36 | (11) | (11) | 64 | 2 | (3) |
| Operating Margin | 4,915 | 3,708 | 2,137 | 953 | 734 | (71) | 5,868 | 4,442 | 2,066 |
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Found in Note 1 of the June 30, 2026, or the March 31, 2026, interim Consolidated Financial Statements.
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Adjusted Funds Flow, Free Funds Flow and Excess Free Funds Flow
(EFFF)
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The following table provides a reconciliation of cash from (used in) operating activities found in Cenovus’s interim Consolidated Financial Statements to Adjusted Funds Flow, Free Funds Flow and EFFF. Adjusted Funds Flow per Share – Basic and Adjusted Funds Flow per Share – Diluted are calculated by dividing Adjusted Funds Flow by the respective basic or diluted weighted average number of common shares outstanding during the period and may be useful to evaluate a company’s ability to generate cash.
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| Three Months Ended | |||
| ($ millions) | June 30, 2026 | March 31, 2026 | June 30, 2025 |
| Cash From (Used in) Operating Activities(6) | 5,636 | 2,181 | 2,374 |
| (Add) Deduct: | |||
| Settlement of Decommissioning Liabilities | (39) | (53) | (68) |
| Net Change in Non-Cash Working Capital | 689 | (1,143) | 923 |
| Adjusted Funds Flow | 4,986 | 3,377 | 1,519 |
| Capital Investment | 1,200 | 1,170 | 1,164 |
| Free Funds Flow | 3,786 | 2,207 | 355 |
| Add (Deduct): | |||
| Base Dividends Paid on Common Shares | (411) | (377) | (364) |
| Purchase of Common Shares under Employee Benefit Plan | (58) | (51) | (15) |
| Dividends Paid on Preferred Shares | — | (2) | (4) |
| Settlement of Decommissioning Liabilities | (39) | (53) | (68) |
| Principal Repayment of Leases | (88) | (90) | (94) |
| Acquisitions, Net of Cash Acquired | (5) | (10) | (129) |
| Proceeds From Divestitures | 72 | 99 | 13 |
| Excess Free Funds Flow | 3,257 | 1,723 | (306) |
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Found in the June 30, 2026, or the March 31, 2026, interim Consolidated Financial Statements.
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Adjusted Market Capture
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Adjusted market capture contains a non-GAAP financial measure and is used in the company’s U.S. Refining segment to provide an indication of margin captured relative to what was available in the market based on widely-used benchmarks. Cenovus defines adjusted market capture as refining margin, net of holding gains and losses, divided by the weighted average 3-2-1 market benchmark crack, net of RINs, expressed as a percentage. The weighted average crack spread, net of RINs, is calculated on Cenovus’s operable capacity-weighted average of the Chicago and Group 3 3-2-1 benchmark market crack spreads, net of RINs.
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| ($ millions) | Three months ended June 30, 2026 | Three months ended March 31, 2026 |
| Revenues (7) | 6,549 | 4,220 |
| Purchased Product (7) | 5,384 | 3,318 |
| Gross Margin | 1,165 | 902 |
| Inventory Holding (Gain) Loss | (152) | (457) |
| Adjusted Gross Margin | 1,013 | 445 |
| Total Processed Inputs (Mbbls/d) | 372.9 | 359.9 |
| Adjusted Refining Margin ($/bbl) | 29.83 | 13.74 |
| Operable Capacity (Mbbls/d) | 364.8 | 364.8 |
| Operable Capacity by Regional Benchmark (percent) | ||
| Chicago 3-2-1 Crack Spread Weighting | 88 | 88 |
| Group 3 3-2-1 Crack Spread Weighting | 12 | 12 |
| Benchmark Prices and Exchange Rate | ||
| Chicago 3-2-1 Crack Spread (US$/bbl) | 46.54 | 17.55 |
| Group 3 3-2-1 Crack Spread (US$/bbl) | 41.45 | 17.16 |
| RINs (US$/bbl) | 13.78 | 8.71 |
| US$ per C$1 – Average | 0.723 | 0.729 |
| Weighted Average Crack Spread, Net of RINs ($/bbl) | 44.46 | 12.06 |
| Adjusted Market Capture (percent) | 67 | 114 |
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7
Found in Note 1 of the June 30, 2026, or the March 31, 2026, interim Consolidated Financial Statements.
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Cenovus Energy Inc.
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Cenovus Energy Inc. is an integrated energy company with oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States. The company is committed to maximizing value by developing its assets in a safe, responsible and cost-efficient manner, integrating sustainability considerations into its business plans. Cenovus common shares are listed on the Toronto and New York stock exchanges. For more information, visit cenovus.com.
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Cenovus contacts
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Investors
Investor Relations general line
403-766-7711
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Media
Media Relations general line
403-766-7751
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English (US)