Cenovus Energy has extended its normal course issuer bid (NCIB) to repurchase up to 120,250,990 common shares over a 12‑month period that begins on November 11, 2025 and ends on November 10, 2026. The renewal follows the expiration of the prior NCIB on November 10, 2025, and allows the company to continue returning cash to shareholders through share repurchases.
The new program authorizes purchases of up to 10% of the company’s public float as of October 31, 2025, which corresponds to 1,745,535,223 shares outstanding. Under the previous NCIB, Cenovus repurchased 82,563,942 shares at an average price of $21.58 per share. Daily trading volume on the TSX averaged 9,273,486 shares over the six months ending October 31, 2025, and the daily purchase limit is 25% of that volume, or 2,318,371 shares.
Management emphasized that the buyback program is part of Cenovus’s capital allocation framework, which prioritizes returning cash to shareholders, generating strong returns on capital investment, and maintaining a resilient balance sheet. ‘Cenovus believes there are times when the market price of its common shares may not fully reflect the underlying value of its business and future prospects,’ said a company spokesperson. ‘Depending on the trading price of its common shares and other relevant factors, the company believes purchasing common shares represents an attractive investment opportunity and is in the best interest of Cenovus and its shareholders.’
The renewal coincides with the completion of the acquisition of MEG Energy, which expands Cenovus’s oil sands portfolio and consolidates its position in thermal oil production. As part of the deal, Cenovus agreed to divest certain assets to Strathcona Resources. The company has also maintained dividend payments for 17 consecutive years, with a current dividend yield of 3.37%.
Cenovus’s balance sheet remains strong, with a debt‑to‑equity ratio of 0.35, a current ratio of 1.73, and a total debt/total capital ratio of 0.19. The company’s valuation metrics as of November 7, 2025, show a P/E of 13.72, a P/S of 0.75, and a P/B of 1.47, while a beta of 0.37 indicates lower volatility relative to the market. Institutional ownership stands at 50.15%.
By extending the NCIB, Cenovus signals confidence in its ability to generate free cash flow and its commitment to shareholder returns. The program provides a flexible tool to deploy excess cash, potentially offsetting dilution from future equity issuances and supporting the intrinsic value of the shares as the company continues to execute on its growth and cost‑control initiatives.
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