Dec. 7 (Bloomberg) -- Cenovus Energy Inc., the oil producer spun off by Encana Corp. in 2009, said cash flow will decline 4 percent in 2012 as the company spends more to boost production at its oil-sands operations.
Cash flow next year will be between C$2.9 billion ($2.87 billion) and C$3.5 billion, the company said in a statement today. Investment will surge 23 percent, while production gains 21 percent, the company said.
Production at the company’s Christina Lake operations will more than double as Cenovus invests in new well pads that use steam to melt bitumen underground. Cash flow will be held back by the company’s refining and natural-gas businesses.
Cenovus, based in Calgary, expects production growth of 10 percent to 15 percent over the next “several” years, Brian Ferguson, chief executive officer, told investors today at a conference. The company has based its expectations for oil prices between $80 and $90 a barrel, he said in October.
Shares of Cenovus rose 1.5 percent to C$33.57 as of 1:06 p.m. in Toronto.
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--Editors: Charles Siler, Jasmina Kelemen
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