Workers at the Cenovus Christina Lake oilsands facility steam-assisted gravity drainage (SAGD) pad southeast of Fort McMurray, Alta., on Wednesday, April 24, 2024. THE CANADIAN PRESS/Amber Bracken
By Lauren Krugel
Two of Canada’s biggest oilsands producers are aiming to increase their output next year without any major year-over year changes in their capital spend.
Cenovus Energy Inc. is expecting to spend between $4.7 billion and $5 billion next year, not including $350 million for planned facility maintenance.
For 2025, the Calgary-based company had been aiming for capital expenses of $4.6 billion to $5 billion and turnaround costs of $360 million to $380 million, according to its latest guidance released in late October.
Cenovus is expecting upstream production for 2026 between 945,000 and 985,000 barrels of oil equivalent per day, representing year-over-year growth of about four per cent, adjusted for the acquisition of MEG Energy Corp.
The MEG purchase closed in mid-November after a tumultuous bidding war with Strathcona Resources Ltd. The deal brings together the side-by-side oilsands operations MEG and Cenovus had at Christina Lake, south of Fort McMurray, Alta.
Cenovus said its refinery throughput for 2026 is expected to be between 430,000 and 450,000 barrels per day, representing a utilization rate of 91 per cent to 95 per cent. The utilization rate measures how much of an oil company’s refining capacity is being used.
For 2025, Cenovus had forecast refinery throughput of 615,000 to 625,000 barrels per day. In September, it announced an agreement to sell its half-interest in refineries in Illinois and Texas for $1.9 billion to joint-venture partner Phillips 66.
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“Following the completion of a three-year growth investment cycle, we are well positioned to ramp up volumes from our projects at Foster Creek and West White Rose and advance the in-flight expansion at our newly acquired Christina Lake North assets,” Cenovus CEO Jon McKenzie said in a news release.
“Our portfolio presents tremendous opportunities that we will continue to grow and develop while balancing debt reduction with shareholder returns and maintaining a resolute focus on controlling costs.”
Meanwhile, Suncor Energy Inc. has set a capital budget for 2026 of $5.6 billion to $5.8 billion, compared to the $5.7 billion to $5.9 billion it was targeting for this year as of early November.
Total production for next year is expected to come in at 840,000 to 870,000 barrels per day. The midpoint of that range is slightly lower than the 845,000 to 855,000 barrels per day Suncor expected for all of 2025, according to its guidance released in November.
Suncor’s refinery throughput is expected to be between 460,000 and 475,000 barrels per day in 2026, with utilization between 99 and 102 per cent. This year, the company had targeted throughput of 470,000 to 475,000 barrels per day in November and utilization between 101 and 102 per cent.
“The company’s 2026 guidance reinforces our focus on best-in-class execution and operational excellence, building on the momentum of the past two record-breaking years,” said chief executive Rich Kruger.
He said next year, all of Suncor’s excess funds are going to be returned to shareholders through share buybacks.
“To underscore our commitment, this month we increased buybacks by 10 per cent to $275 million per month, pointing toward a projected $3.3 billion of repurchases in 2026,” Kruger said.
This report by The Canadian Press was first published Dec. 11, 2025.
Companies in this story: (TSX:CVE) (TSX:SU)
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