Cenovus recorded a $393 million non-cash goodwill impairment, which resulted in lower 2012 operating earnings and a fourth quarter earnings loss.
Cenovus Energy Inc. (TSX: T.CVE, Stock Forum) reported a fourth quarter loss of $118 million despite an increase in oil sands production. In the fourth quarter of 2011, the company made a profit of 266 million.
Cenovus Energy’s two currently producing operations, located in Alberta, Foster Creek and Christina Lake, averaged a combined oil sands production of nearly 90,000 barrels per day net in 2012, up 35% from 2011.
According to the Cenovus Energy press release, Cenovus recorded a $393 million non-cash goodwill impairment, which resulted in lower 2012 operating earnings and a fourth quarter earnings loss.
This impairment related to the company's Suffield assets, principally natural gas.
According to the company's independent reserves and contingent resources evaluation, total proved reserves were nearly 2.2 billion barrels of oil equivalent at the end of 2012, up 12% from the previous year.
Cenovus has a substantial portfolio of oil sands assets in northern Alberta with the potential to provide decades of future growth.
On Thursday morning, Cenovus Energy was trading at $32.60 a share. The company has a market cap of $24.6 billion, based on 755 million shares outstanding. The 52-week high and low was $39.64 and $30.09 respectively.