Cenovus Energy CVE is an integrated energy company based in Canada, with operations spanning upstream and downstream segments. The company’s upstream segment recorded strong production volumes of 972,000 barrels of oil equivalent per day (Boe/d) in the first quarter. CVE’s upstream production is primarily supported by its oil sands assets in northern Alberta. Following the acquisition of MEG Energy, Christina Lake North is emerging as a key growth driver for the company.
Management stated in its latest earnings call that it completed delineation drilling and seismic work at Christina Lake North, which confirmed the high-quality and long reserve life of the resource. Notably, during the delineation program, the company identified 250 redevelopment opportunities across the asset, indicating that Cenovus will have a long-term inventory of future drilling locations. Additionally, CVE highlighted that the redevelopment well program at Christina Lake North was implemented earlier than anticipated and is expected to raise production from the asset throughout the rest of 2026.
Cenovus is also investing in other assets to increase its upstream production levels, including the Sunrise optimization project and the West White Rose. The long runway of growth projects is expected to increase CVE’s total upstream production to more than 1 million Boe/d by 2028. The expansion of Christina Lake North and its other growth projects are expected to become a key contributor to CVE’s long-term production growth and cash flow generation strategy.
Other Canadian Integrated Energy Companies
Canadian Natural Resources CNQ is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. Canadian Natural has set an ambitious production target for 2026, aiming for a total annual production range of 1,615 thousand barrels of oil equivalent per day (MBOE/d) to 1,665 MBOE/d. This target represents an approximately 4% increase in production compared with 2025.
Imperial Oil Limited IMO is another leading integrated energy company headquartered in Canada. IMO’s operations span across exploration and production, refining and a petrochemicals business. The company is a major Canadian oil sands producer and the largest jet fuel supplier in the country. Notably, the U.S. oil giant Exxon Mobil Corporation holds an approximately 71% stake in the Canadian operator.
CVE’s Price Performance, Valuation & Estimates
Shares of CVE have surged 111.4% over the past year compared with the 87.8% improvement of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, CVE trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.96X. This is below the broader industry average of 7.39X.
The Zacks Consensus Estimate for CVE’s 2026 earnings hasn’t seen any revisions over the past seven days.
Image Source: Zacks Investment Research
CVE and IMO currently sport a Zacks Rank #1 (Strong Buy) each, while CNQ carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Imperial Oil Limited (IMO): Free Stock Analysis Report
Cenovus Energy Inc (CVE): Free Stock Analysis Report
Canadian Natural Resources Limited (CNQ): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).