Billionaire’s 15 Favorite Oil and Gas Stocks Right Now

11. Cenovus Energy Inc. (NYSE:CVE)

Number of Billionaire Holders: 13

Cenovus Energy Inc. (NYSE:CVE) is an integrated oil and natural gas company, based in Calgary, Alberta, with operations that span Canada, the United States, and the Asia Pacific region.

Cenovus Energy Inc. (NYSE:CVE) posted a revenue of approximately $9 billion in Q4 2024, down 7.29% YoY and below market expectations by $1.11 billion, primarily due to lower commodity prices. The company’s EPS of $0.19 also narrowly missed estimates by $0.11. However, CVE delivered quarterly upstream production of 816,000 boed, up 6% QoQ and 1% YoY. Moreover, the company achieved the highest-ever quarterly and annual oil sands production rates at 628,500 boed and 610,700 boed respectively, including record annual rates at both Foster Creek and the Lloydminster thermal assets. Notably, Cenovus generated approximately $1.11 billion of adjusted funds flow in Q4 and returned over $487 million to its shareholders through dividends, share buybacks, and the redemption of its Series 3 preferred shares.

Cenovus Energy Inc. (NYSE:CVE) has several new projects coming online over the next couple of years, including the Narrows Lake project, the West White Rose offshore facilities, and the Foster Creek optimization project. Hence, the company has projected a production guidance range of 108,000 to 145,000 boed for 2025, representing approximately 3% growth relative to 2024.

L1 Capital stated the following about Cenovus Energy Inc. (NYSE:CVE) in its Q3 2024 investor letter:

“Cenovus Energy Inc. (NYSE:CVE) (Long -15%) and MEG Energy (Long -13%) shares fell as the WTI oil price decreased 17% to ~US$69/bbl on the back of increased concerns around a potential increase in OPEC supply along with slower global economic growth. Despite OPEC delaying a previously planned increase in oil output, the oil price continued to weaken due to the weaker demand outlook. During the quarter, we attended the Peters & Co oil and gas conference in Toronto, meeting one-on-one with management from Cenovus and MEG Energy, along with the entire peer group. We continue to favor Cenovus and MEG in the sector due to their strong cash flow generation, the long-life nature of their oil sands assets, low cost of production and strong balance sheets. Both Cenovus and MEG have now transitioned to returning 100% of free cash flow back to shareholders, having reached their respective net debt targets. As a result, we see both names offering sector leading shareholder returns, combined with some modest, accretive output growth.”