Cenovus Energy Inc. (NYSE:CVE) Q4 2023 Earnings Call Transcript

Chris Varcoe: Thank you.

Jon McKenzie: Thanks, Chris.

Operator: Thank you. The last question comes from Robert Tuttle at Bloomberg News. Please go ahead.

Robert Tuttle: Hi, good morning. Just following up on that. You guys have your own target for 2030 on emissions cuts. My understanding is you need to start — you need to start ordering the pipe for the pipeline various components like right now, are you going to reach your own target? Do you think — or is that threatened?

Jon McKenzie: So our internal target, Robert, is a 2035 target. I think what you’re referring to is the 2030 target that was put out by the federal government as well as the Pathways group, there’s no doubt that to reach the 2030 targets of what’s newable. We need to move on that today. But we can’t move on those targets until we get the certainty from the levels of government that we’re currently negotiating with that allow for certainty and investment in these kind of projects. As Rhona mentioned, these are multibillion-dollar projects, multiyear projects, and they can’t happen if they leave the industry uncompetitive with the peer group. So once that certainty is established and we’re working with the federal and provincial governments right now to try and get there will move forward. But there’s no doubt to kind of achieve the 2030 targets that have been floated. This needs to happen sooner rather than later.

Robert Tuttle: Have you been given a time line or anything by the government? And when they’ll be able to give you certainty on like the credits for difference and the other supports you need? I mean have they indicated anything?

Rhona DelFrari: It’s Rhona, again, Robert. I mean, everybody, there’s commitment from the government to move this forward as well because everybody, again, as I mentioned, everybody has the same shared outcome we’re trying to achieve, but I think it’s hard to guess when you’re having discussions that are complex like this, it’s hard to put an exact date on it. But I think everybody wants to get this going because we want to see these decarbonization projects underway, and that’s what the governments want and that’s what our sector wants.

Robert Tuttle: Okay. Thank you.

Jon McKenzie: Thanks, Robert.

Operator: Thank you. This concludes today’s question-and-answer session. I will now turn the call back over to Mr. McKenzie for closing comments.

Jon McKenzie: Great. Well, I’d just like to thank everybody for their interest in the company and attending the call and wish everybody a great rest of your day, and we look forward to seeing you on March 5. Thank you very much.

Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating, and we ask that you please disconnect your lines.