Cenovus Energy's (TSE:CVE) cash flow fell 17% in the third quarter, while its oil sands production offset a decline in conventional oil production.
The Calgary-based producer reported cash flow of $932 million or $1.23 a share, compared to $1.1 billion or $1.47 a share in the same period a year ago.
Overall oil production rose 3% to 176,938 barrels per day (bbls/d), versus 171,350 bbls/d last year. Oil sands production at its Foster Creek and Christina Lake assets increased 6% to 101,824 bbls/d, while conventional oil production dipped 1% to 75,114 bbls/d.
Cenovus's earnings in the period rose 28% to $370 million or 49 cents a share, compared to $289 million or 38 cents a share last year and a cent ahead of the mean analyst estimate.
Operating cash flow from oil production grew 40% to $915 million, as the average price of benchmark West Texas Intermediate rose $13.61 per barrel. The oil operations results helped reduce the impact of a 75% year-over-year decline in third quarter operating cash flow from its refining operations, the company said.
In the fourth quarter, Cenovus expects cash flow between $0.8 to $0.9 billion, or $1.05 to $1.20 a share.
Cenovus expects to produce 115,000 barrels a day from its oil sands assets and 76,000 barrels a day of oil and 510,000 cubic feet a day of natural gas from its conventional operations. The company predicts an average price of $101.00/barrel for WTI crude.
Shares were flat on Thursday but have slipped 7.7% this year.