Here's How CVE Targets Higher Output Through Its Broad Asset Portfolio

Cenovus expects significant production growth through 2028, driven by expanded oil sands and offshore development projects.

Cenovus Energy Inc. CVE is a Canadian energy company that develops, produces, refines, and markets crude oil, natural gas and petroleum products across North America and the Asia-Pacific region. With a diversified upstream portfolio spanning oil sands, offshore, thermal heavy oil and conventional assets, CVE is positioned to meet rising global hydrocarbon demand. The company projects total upstream production to grow from approximately 965 thousand barrels of oil equivalent per day (MBoe/d) in 2026 to more than 1.1 million barrels of oil equivalent per day (MMBoe/d) by 2028.

By 2028, Cenovus aims to significantly boost its oil sands output through several high-impact projects. Christina Lake North is expected to add about 40 thousand barrels per day (Mbbls/d) of production by 2028 through redevelopment wells and new steam generators. Foster Creek is projected to contribute additional output, while Sunrise production is expected to rise by 15-20 Mbbls/d between 2024 and 2028. In the Lloydminster region, Cenovus expects thermal and conventional heavy oil projects to add around 30 Mbbls/d combined by 2028.

The West White Rose offshore project is on track to achieve first production in 2026 and reach peak output of roughly 45 Mbbls/d by 2028. By merging offshore capabilities with its conventional and long-life oil sands assets, the company has built a balanced portfolio. This strategic mix positions the company well to support rising global hydrocarbon demand.

Can FANG & XOM Increase Output Through Diversified Portfolios?

Diamondback Energy $FANG, Inc. FANG is a leading Permian-focused independent oil and gas producer with 890,496 net acres across the Permian Basin, including 797,074 net acres in the Midland Basin and 93,422 net acres in the Delaware Basin. The company develops stacked resources in the Spraberry, Wolfcamp and Bone Spring formations using advanced horizontal drilling and high-intensity completion techniques. Supported by strong operational execution and efficiency gains, FANG raised its 2026 oil production outlook to more than 520 thousand barrels of oil per day (MBO/d) from the prior range of 500-510 MBO/d, while total production guidance has been raised to more than 972 MBoe/d from the prior range of 926-962 MBoe/d.

Exxon Mobil Corporation XOM drives its growth through a geographically diversified portfolio anchored by the Permian Basin, offshore Guyana and its liquified natural gas (LNG) operations. In the first quarter of 2026, XOM achieved its first LNG production at Golden Pass Train 1, a milestone projected to boost U.S. LNG exports by 5% compared with 2025. ExxonMobil $XOM’s Permian production is on track to reach about 1.8 million barrels of oil equivalent (MMBoe/d) in 2026, paving the way for a 2.5 MMBoe/d long-term Permian production goal and 5.5 MMBoe/d total upstream output by 2030.

CVE’s Price Performance, Valuation & Estimates

Cenovus shares have gained 120.4% over the past year compared with 97.3% growth of 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 7.4X. This is below the broader industry average of 7.84X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CVE's first-quarter 2026 earnings has seen upward revisions over the past seven days. Meanwhile, estimates for second-quarter 2026 and full-year 2026 earnings have remained constant.

Image Source: Zacks Investment Research

CVE currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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