Slides
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Corporate Presentation May 2025
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Cenovus at a glance Note: See Advisory. Market capitalization as at May 7th, 2025. Values are approximate. Expected production based on mid-point of corporate guidance. Proved plus probable reserves evaluated by independent qualified evaluators effective date of December 31, 2024. Cash returns to shareholders includes base dividends, preferred share dividends, variable dividends, preferred share redemptions and common share repurchases. Ticker symbol TSX, NYSE | CVE Shares outstanding 1,814 million Market capitalization $30 billion Operating Statistics 2025 production ~825 MBOE/d Upgrading and refining operable capacity 720 Mbbls/d 2024 proved & probable reserves 8.5 BBOE Financial Summary Trailing twelve months Adjusted Funds Flow (AFF) $8.1 billion Mar 31, 2025 Net Debt $5.1 billion Mar 31, 2025 Long-Term Debt, including current portion $7.5 billion Trailing twelve months total cash returns to shareholders $3.4 billion Net Debt/Trailing twelve months AFF 0.6x Annual dividend per share (yield) $0.80/share (4.9%) Market Summary
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3 First quarter 2025 results 1) Non-GAAP financial measure. See Advisory. Upstream Production 819 MBOE/d Downstream Throughput 665 Mbbls/d Cash From Operating Activities $1,315 million Adjusted Funds Flow1 $2,212 million Free Funds Flow1 $983 million Capital Investments $1,229 million Net Debt $5,079 million Long-Term Debt, including current portion $7,524 million • Upstream production of 819 MBOE/d, maintaining near- record performance. • Continued momentum in Downstream performance, including record utilization of 104% in Canadian Refining, with 90% utilization and adjusted market capture of 62% in U.S. Refining. • Meaningful progress on growth projects: • Began steaming first two well pads at Narrows Lake; first oil expected early in the third quarter. • Advanced preparations for the transport of the concrete gravity structure and topsides to the West White Rose field location, where they will be mated this summer. First Quarter Highlights First Quarter Results
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4 Cenovus’s value proposition Note: See Advisory. 1) Base dividend capacity calculated at US$45 WTI. Dividend capacity calculated as adjusted funds flow less sustaining capital, asset retirement obligations and capital lease expenses. 2) Non-GAAP financial measure. See Advisory. Robust balance sheet Manage towards $4.0B net debt; represents <1x cash flow at US$45 WTI. Returning excess cash to shareholders Targeting ~100% return of Excess Free Funds Flow2. Highly efficient capital driving growth to ~950,000 BOE/d by 2028. Growing base dividend capacity to ~$2.0B1 Double-digit annual base dividend growth. Conservative capital structure Disciplined investment Increasing shareholder returns Low operating & sustaining capital costs Combined oil sands operating and sustaining capital costs <$21/bbl. Low cost, long-life resource base Resilient at bottom of the cycle Sustaining capital & base dividend funded at US$45 WTI. 8.5 billion barrels of reserves 29-year reserve life index. All discretionary investments generate economic returns at US$45 WTI.
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5 0% 10% 20% 30% 40% 50% Cenovus Peer Peer Peer 0% 10% 20% 30% 40% 50% 60% 70% 80% Cenovus Peer Peer Peer Peer-leading production and free funds flow growth to drive increased returns Differentiated growth proposition Note: See Advisory. 1) Peters & Co. estimates as at December 12, 2024. Assumes a flat commodity price deck from 2024 through 2027 and unchanged share price. 2024 base year numbers adjusted for acquisitions and normalized for other major operational impacts. Peers include CNQ, IMO and SU. 2) Non-GAAP financial measure. See Advisory. Production per share growth1 (2024 – 2027) Free funds flow2 per share growth1 (2024 – 2027)
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6 2025 budget overview • Completing final year of a three-year growth investment cycle in 2025. • Capital budget of $4.6 – $5.0 billion with $1.4 – $1.8 billion allocated to growth. • 3% year-over-year growth in Upstream production at midpoint of guidance. • 3% year-over-year growth in Downstream throughput. • Maintaining low upstream operating cost structure. • 15% and 5% year-over-year reduction in Canadian and U.S. Refining operating costs per barrel respectively, excluding turnaround expenses. Maintaining capital discipline while growing our base business Note: See Advisory. Increases and decreases based on 2025 Guidance midpoint vs. twelve months ended December 31, 2024. Upstream operating costs are divided by sales volumes. Downstream operating costs are divided by total processed inputs and exclude expensed turnaround costs. 1) Specified financial measure. Capital investments ($ millions) Production/ throughput (MBOE/d or Mbbls/d) Operating costs1 ($/bbl or $/BOE) Turnaround expenses ($ millions) Oil Sands 2,700 – 2,800 615 – 635 10.75 – 12.75 Conventional 350 – 400 125 – 135 11.00 – 12.00 Atlantic 10 – 15 50.00 – 60.00 Asia Pacific 55 – 60 10.00 – 11.00 Offshore 900 – 1,000 65 – 75 Total Upstream 3,950 – 4,200 805 – 845 Canadian Refining 100 – 105 12.00 – 14.00 - U.S. Refining 550 – 580 10.00 – 12.00 440 – 520 Total Downstream 650 – 750 650 – 685 Corporate 0 – 50 Total 4,600 – 5,000 2025 guidance ranges
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7 2025 capital investment Disciplined capital investment with targeted investment in high return growth projects Downstream Sustaining Upstream Sustaining Sunrise Growth Conventional Heavy Oil Foster Creek Optimization & Enhanced Sulphur Recovery Projects Conventional Gas West White Rose Downstream $1.4B - $1.8B Targeted Growth Capital Total Capital $4.6 - $5.0B Majority of growth capital spend concluded in 2025 Total Sustaining capital of ~$3.2B Note: See Advisory.
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8 0 50 100 150 200 2024 2025F 2026F 2027F 2028F Oil Sands Offshore Conventional Heavy Oil Conventional Sunrise growth Narrows Lake tie-back Foster Creek optimization West White Rose Project Conventional Heavy Oil development Options to grow natural gas production Disciplined organic growth High-return investments grow our base business Oil Sands Conventional Offshore CHO MBOE/d Approximately 150,000 BOE/d of growth in five-year plan $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 2024 2025F 2026F 2027F 2028F Sustaining capital Growth capital $ billion Upstream production growth Capital investments Note: See Advisory.
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9 Cenovus’s key growth projects Note: See Advisory. Capital efficient projects to generate significant growth in free funds flow1 Narrows Lake Tie Back Foster Creek Optimization Sunrise Optimization West White Rose Project Conventional Heavy Oil Conventional Gas 20,000 – 30,000 bbls/d >30,000 bbls/d 15,000 – 20,000 bbls/d ~45,000 BOE/d >20,000 bbls/d 20,000 – 30,000 BOE/d Started steaming First oil early Q3 75% Complete First oil 2026 Four new pads on stream 90% Complete First oil Q2 2026 In progress In progress 2026 peak production 2027 peak production 2027 peak production 2028 peak production 2028+ peak production 2028+ peak production High quality, low SOR resource Expansion and debottleneck driving higher production capacity Adding pads to fully utilize installed plant capacity High-netback Brent based pricing with low incremental operating costs Large, under exploited resource with meaningful long-term growth potential Short cycle, opportunistic growth potential Note: See Advisory. 1) Non-GAAP financial measure. See Advisory.
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10 Disciplined and Sustainable Base Dividend Growth Five consecutive years of double-digit base dividend per share growth $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 2021 2022 2023 2024 2025 $/share • Consistent track record of base dividend growth. • Announced 11% increase in annual base dividend to $0.80 per share starting in Q2 2025. • Base dividend and sustaining capital program are fully funded over the long term at US$45 WTI. Note: See Advisory. Quarterly Base Dividends
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11 Capital allocation priorities Committed to balance sheet strength and shareholder returns • Manage towards ~$4 billion of net debt. • Fully fund sustaining capital and base dividend at $45 WTI. • Deliver disciplined growth through highly efficient capital projects that meet hurdles at $45 WTI. • Commitment to deliver ~100% excess free funds flow1 (EFFF) to shareholders. Committed capital Safe and reliable operations Sustaining capital Base & preferred dividends Asset retirement obligations Capital leases Discretionary capital Growth capital Shareholder returns Share buybacks Acquisitions & divestitures Variable dividends Maintain $4.0B of net debt EFFF = AFF - committed capital - growth capital +/- A&D Note: See Advisory. 1) Non-GAAP financial measure. See Advisory.
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12 $0 $1,000 $2,000 CAD Bonds USD Bonds Resilient balance sheet enables financial flexibility Note: See Advisory. 1) CAD$ maturities converted to US$ using 0.696 US$/C$ exchange rate. Minimal maturities until 2027 Investment grade mid-BBB credit ratings Average debt tenor 11.4 years Average debt coupon of 4.47% Current credit ratings & outlooks S&P Moody’s DBRS Fitch BBB Baa1 BBB (High) BBB Stable Stable Stable Stable Preferred Shares Principal ($MM) Reset Date Series 1 $268 03-31-2026 Series 2 $32 03-31-2026 Series 7 $150 06-30-2025 Unused committed credit facility of $5.5 billion Low risk maturity profile1
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Business overview
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14 • Safety behaviours drive continuous improvement and field level empowerment. • Safety metrics included on corporate scorecard. • Compliance to our operations integrity management system protects the safety of our people and integrity of our assets. • Our values and eight safety commitments set out the attitudes expected of everyone who works at Cenovus. Prioritizing safety and asset integrity Committed to a strong safety culture Note: See Advisory.
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Diverse cash flow streams from multiple jurisdictions Portfolio overview Upstream production2 Christina Lake 238 Mbbls/d Foster Creek 203 Mbbls/d Sunrise 52 Mbbls/d Lloyd Thermal & CHO 132 Mbbls/d Conventional 124 MBOE/d Offshore 69 MBOE/d Total Production 819 MBOE/d Operable capacity & heavy oil %2 Lloyd Upgrader & Refinery 108 Mbbls/d 100% Lima Refinery 170 Mbbls/d 15% Toledo Refinery 151 Mbbls/d 60% Superior Refinery 44 Mbbls/d 80% Borger Refinery1 75 Mbbls/d 25% Wood River Refinery1 173 Mbbls/d 70% Total Capacity 720 Mbbls/d ~55% 1) Joint ventures Cenovus does not operate. 2) Production, operable capacity as of three months ended March 31, 2025. Approximate heavy oil throughput capacity. See Advisory.
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16 Cenovus has the best oil sands assets in the industry Note: See Advisory. 1) 2025F forecasted at US$60 WTI. 2) Based on 2025 AER February YTD data. Competitive operating costs1 of $10 - $12 per barrel Sustaining capital of $7 - $9 per barrel Cenovus has the lowest SOR in industry $0 $2 $4 $6 $8 $10 $12 $14 Sustaining Capital Operating Costs $/bbl Industry-leading projects that outperform 0.00 1.00 2.00 3.00 4.00 5.00 6.00 Steam to Oil Ratio Cenovus in-situ projects2
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17 Note: See Advisory. Production and operating costs as of three months ended March 31, 2025 Oil Sands Christina Lake Foster Creek Lloydminster Thermals Sunrise Lloydminster Conventional Heavy Oil Best-in-class assets with low-cost structure and long-life reserves Nameplate capacity 260 Mbbls/d Production 238 Mbbls/d Operating Costs $9/bbl Steam to Oil Ratio ~2.2 Cogeneration Capacity ~100MW Nameplate capacity 180 Mbbls/d Production 203 Mbbls/d Operating Costs $10/bbl Steam to Oil Ratio ~2.1 Cogeneration Capacity ~100MW Production 110 Mbbls/d High quality, lower viscosity thermal production vs. typical oil sands projects Nameplate capacity 60 Mbbls/d Production 52 Mbbls/d Operating Costs $18/bbl Implementing Cenovus operating strategies to improve performance Production 22 Mbbls/d Piloting CO2 EOR Technology Horizontal multi-lateral well development Nameplate capacity 107 Mbbls/d
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18 • Short-cycle opportunities that provide ability to adjust to market conditions. • Diversifying our funds flow and utilizing extensive pipeline network to market product ex-Alberta. • Constructive long-term view of the North American gas market. • Modestly increasing investment to optimize owned infrastructure and reduce unit operating costs. Conventional land base and districts North Corridor Rainbow Edson Clearwater Disciplined approach to Conventional development Strategic long-term portfolio with optionality to grow Note: See Advisory.
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19 Offshore strategic value Note: See Advisory. 1) Free cash flow profile defined as asset operating margin less capital investments, not including tax at US$75 WTI. Atlantic • Atlantic portfolio sustains exposure to Brent pricing well into the 2030s. • Generates substantial free cash flow over the five-year plan. • Robust go-forward returns at bottom of the cycle pricing with West White Rose Project completion. Asia Pacific • Strong free cash flow generation, with limited capital requirements. • Geographically diverse business tied to high-value, mostly fixed- price contracts. • Exploring portfolio upside opportunities and contract extensions. -$1.5 -$0.8 $0.0 $0.8 $1.5 2025F 2026F 2027F 2028F West White Rose Project free cash flow profile1 $0.0 $1.0 $2.0 2021 2022 2023 2024 Asia Pacific free cash flow profile1$ billion $ billion Consistently delivering ~$1 billion of free cash flow per yearInflection point coming in 2026 Stable, diversified free cash flow generation
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20 Lloydminster Upgrader Lloydminster Refinery Commercial fuels business Note: See Advisory. 1) Capacity stated represents operable capacity. Canadian refining Heavy Oil Throughput Capacity 1 78.5 Mbbls/d Produces high quality, low sulphur synthetic crude oil and diesel fuel, and recovers diluent from the feedstock Condensate is cycled back to the nearby thermal operations Heavy Oil Throughput Capacity 1 29.5 Mbbls/d Produces more than 30 different types and grades of road asphalt from heavy oil 10 asphalt terminals in Canada and U.S. to serve retail customer base Commercial fuels business includes approximately 155 cardlock, bulk plant and travel centre locations Upgrader and refinery strategically located in Lloydminster
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21 U.S. refining Lima, Ohio Toledo, Ohio Superior, Wisconsin Borger, Texas Wood River, Illinois Note: See Advisory. 1) Capacity stated represents operable capacity. Integration with our oil sands business provides balanced differential exposure Throughput capacity1 170 Mbbls/d Heavy Oil Capacity 25 Mbbls/d Access to Canadian heavy, West Texas and North Dakota Supply Throughput capacity1 150.8 Mbbls/d Heavy Oil Capacity 90 Mbbls/d Directly connected to Canadian heavy crude and configured to process high-TAN grades Throughput capacity1 44 Mbbls/d Heavy Oil Capacity 34 Mbbls/d Directly connected to Canadian heavy crude, producing high quality asphalt Net throughput capacity1 75 Mbbls/d Net heavy Oil Capacity 18 Mbbls/d Access to Canadian heavy, West Texas Sour and Permian supply Net throughput capacity1 173 Mbbls/d Net heavy Oil Capacity 120 Mbbls/d Accesses multiple pipelines – Keystone, Express-Platte, Mustang, Ozark Can process and is connected to Canadian heavy crudes
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22 Note: See Advisory. 1) Crude unit utilization reflects total Downstream business. 2025F reflects mid-points of 2025 guidance. 2) Crude unit utilization as a percentage of operable capacity. 3) Unit operating expenses calculated by dividing operating costs excluding turnarounds expenses by total processed inputs. 70% 80% 90% 100% 2023 2024 2025F Increasing crude utilization • All refinery units operational. • Operations excellence organizations established across the network. • Targeted focus on units with largest reliability impacts. • Enhanced preventative maintenance programs. • Capturing synergies between operated fleet. Crude Unit Utilization1,2 (%) $10 $11 $12 $13 $14 $15 2023 2024 2025F Unit Operating Expenses1,3 ($/bbl) Driving down operating expenses • Remaining restart costs at Toledo and Superior completed through 2024. • Focused cost oversight and application of best practices across sites. • Higher reliability driving lower cost. Improvement of ~13% Decrease of ~20% Canadian and U.S. refining Integration with our oil sands business provides balanced differential exposure
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Appendix
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24 2025 pricing & sensitivities Note: See Advisory. -$200 -$100 $0 $100 $200 $160 Chicago 3-2-1 crack spread U$(1)/bbl US$1/bbl RINs (RVO) US$(1)/bblUS$1/bbl Exchange Rate (US$/C$) +$0.01 $(0.01) US$1/bblU$(1)/bbl Crude Oil (WTI) US$1/bbl U$(1)/bbl WTI-WCS Differential Natural Gas (AECO) C$(1)/mcf C$1/mcf 2025 Budget Guidance Price Assumptions Oil & Gas Brent US$/bbl $74.00 WTI US$/bbl $70.00 WCS US$/bbl $56.00 WTI-WCS Differential US$/bbl $14.00 AECO C$/Mcf $2.05 Refined Products Chicago 3-2-1 Crack Spread US$/bbl $18.50 RINs US$/bbl $4.50 Foreign Exchange US$/C$ - 0.72 2025 Adjusted Funds Flow1 Sensitivities (C$MM) ($210) $210 ($180) $180 ($160) ($160) $160 ($80) $80 ($5) $5 Note: See Advisory. 1) Non-GAAP financial measure.
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25 2025 planned maintenance Note: See Advisory. Turnaround activity is subject to change. Production Impact Q2 Q3 Q4 Annualized Upstream Oil Sands MBOE/d 30 - 40 5 - 7 - 10 - 12 Atlantic MBOE/d - 4 - 6 - 1 - 2 Conventional MBOE/d - - - - Downstream Canadian Refining Mbbls/d - - - - US Refining Mbbls/d 35 - 45 2 - 4 6 - 10 13 - 17 Turnaround Expenses Q2 Q3 Q4 Annualized Downstream Canadian Refining $MM - - - - US Refining $MM 240 - 295 80 - 95 40 - 50 440 - 520
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26 Note: See Advisory. Feedstock and refined product mix based on assumptions reflected in 2025 guidance. Refinery feedstock (% of crude throughput) Refined products (% of production) 100% 40% 57% 3% Canadian Refining U.S. Refining Heavy Light/Medium Synthetic Oil Other 48% 42% 11% 36% 16% 4%31% 12% Canadian Refining U.S. Refining Gasoline Synthetic Oil Distillates Asphalt Other Snapshot of feedstocks & refined products Refineries provide diversified feedstock and product slate
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27 Commodity price assumptions US$45 WTI Scenario 2024F 2025F 2026F 2027F 2028F Brent $47.00 $47.00 $47.00 $47.00 $47.00 WTI $45.00 $45.00 $45.00 $45.00 $45.00 WTI-WCS differential $12.50 $12.50 $12.50 $12.50 $12.50 WCS $32.50 $32.50 $32.50 $32.50 $32.50 Chicago 3-2-1 crack spread $16.00 $16.00 $16.00 $16.00 $16.00 RINs $4.00 $4.00 $4.00 $4.00 $4.00 AECO (C$/Mcf) $2.12 $2.12 $2.12 $2.12 $2.12 FX (US$/C$) 0.74 0.74 0.74 0.74 0.74 US$60 WTI Scenario 2024F 2025F 2026F 2027F 2028F Brent $65.00 $65.00 $65.00 $65.00 $65.00 WTI $60.00 $60.00 $60.00 $60.00 $60.00 WTI-WCS differential $14.00 $14.00 $14.00 $14.00 $14.00 WCS $46.00 $46.00 $46.00 $46.00 $46.00 Chicago 3-2-1 crack spread $18.50 $18.50 $18.50 $18.50 $18.50 RINs $4.00 $4.00 $4.00 $4.00 $4.00 AECO (C$/Mcf) $2.40 $2.40 $2.40 $2.40 $2.40 FX (US$/C$) 0.78 0.78 0.78 0.78 0.78 US$75 WTI Scenario 2024F 2025F 2026F 2027F 2028F Brent $81.00 $81.00 $81.00 $81.00 $81.00 WTI $75.00 $75.00 $75.00 $75.00 $75.00 WTI-WCS differential $18.00 $18.00 $18.00 $18.00 $18.00 WCS $57.00 $57.00 $57.00 $57.00 $57.00 Chicago 3-2-1 crack spread $22.00 $22.00 $22.00 $22.00 $22.00 RINs $4.00 $4.00 $4.00 $4.00 $4.00 AECO (C$/Mcf) $2.65 $2.65 $2.65 $2.65 $2.65 FX (US$/C$) 0.82 0.82 0.82 0.82 0.82 US$/bbl unless otherwise stated Note: See Advisory.
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28 Advisory Barrels of Oil Equivalent Natural gas volumes have been converted to barrels of oil equivalent (BOE) on the basis of six Mcf to one barrel (bbl). BOE may be misleading, particularly if used in isolation. A conversion ratio of one bbl to six Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil compared with natural gas is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is not an accurate reflection of value. Presentation Basis Cenovus presents production volumes on a net to Cenovus before royalties basis, unless otherwise stated. Reserves Life Index Reserves life index is calculated based on reserves for the applicable reserves category divided by annual production. Forward-looking Information This presentation contains certain forward-looking statements and forward-looking information (collectively referred to as “forward looking information”) within the meaning of applicable securities legislation, about our current expectations, estimates and projections about the future, based on certain assumptions made by us in light of our experience and perception of historical trends. Although we believe that the expectations represented by such forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Forward-looking information in this presentation is identified by words such as “committed”, “continue”, “drive”, “expect”, “F”, “focus”, “grow”, “maintain”, “opportunities”, “plan”, “priorities”, “progress”, “target”, “will” or similar expressions and includes suggestions of future outcomes, including, but not limited to, statements about: reserves life index; production; Net Debt; Adjusted Funds Flow; Free Funds Flow; operating and capital costs; base dividend growth and base dividend capacity; increasing shareholder returns; allocation of Excess Free Funds Flow to shareholder returns; capital investment; growing the base business; expectations for the completion, operation and production associated with growth projects: Narrows Lake, Foster Creek, Sunrise, West White Rose, conventional gas and conventional heavy oil; planned maintenance turnarounds; capital allocation priorities; expected outperformance of projects; offshore free cash flow; capital requirements; credit ratings; cost structure and cost improvements; reliability; integration and optimization; throughput capacity; safety culture and performance; increasing crude utilization and decreasing operating expenses; and our 2025 guidance. Developing forward-looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to Cenovus and others that apply to the industry generally. The factors or assumptions on which the forward-looking information in this presentation are based on and include but are not limited to: the allocation of Free Funds Flow and the assumptions inherent in Cenovus’s 2025 guidance available on cenovus.com and other risks identified under “Risk Management and Risk Factors” and “Advisory” in Cenovus’s MD&A for the year ended December 31, 2024. Except as required by applicable securities laws, Cenovus disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned that the foregoing lists are not exhaustive and are made as at the date hereof. Events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking information. For additional information regarding Cenovus’s material risk factors, the assumptions made, and risks and uncertainties which could cause actual results to differ from the anticipated results, refer to “Risk Management and Risk Factors” and “Advisory” in Cenovus’s MD&A for the period ended December 31, 2024 and to the risk factors, assumptions and uncertainties described in other documents Cenovus files from time to time with securities regulatory authorities in Canada (available on SEDAR+ at sedarplus.ca, on EDGAR at sec.gov and Cenovus’s website at cenovus.com). Specified Financial Measures Advisory Certain financial measures in this presentation do not have a standardized meaning prescribed by IFRS Accounting Standards and, therefore, are Specified Financial Measures. These Specified Financial Measures may not be comparable to similar measures presented by other issuers. See the Specified Financial Measures Advisory located in our Management’s Discussion and Analysis for the period ended December 31, 2024 and for the period ended March 31, 2025 (available on SEDAR+ at sedarplus.ca, on EDGAR at sec.gov and on Cenovus's website at cenovus.com) for information incorporated by reference about these Specified Financial Measures. © 2025 Cenovus Energy Inc.