Cenovus Energy plans $2.6B to $3B capital spending budget for 2022

Cenovus Energy Inc. announced a capital spending budget between $2.6 billion and $3.0 billion for next year.

The plan is up from its guidance for between $2.3 billion and $2.7 billion this year.

Cenovus says capital spending on its upstream assets next year is expected to be between $1.7 billion and $2 billion, including $1.35 billion to $1.55 billion for its oilsands operations.

Downsteam capital investments in 2022 are expected to total between $850 million and $950 million, including $200 million to $250 million for its Superior Refinery rebuild project, which Cenovus expects will be largely offset by insurance.

In its guidance for 2022, the company says it expects total production of between 780,000 and 820,000 barrels of oil equivalent per day and downstream throughput between 530,000 and 580,000 barrels per day.

Cenovus also says it plans to spend about half of its excess free funds flow next year on shareholder returns, including share repurchases.