Yahoo Finance Cenovus Energy (CVE) Demobilizes Workers Over Wildfire Risks
Cenovus Energy Inc. CVE has decided to demobilize some of its workers at the Sunrise oil sands site in the wake of blazing wildfires across northern Alberta. The wildfires do not pose any threat to the company’s operations at present. However, as a precautionary measure, the staff that is not directly involved in operations is being demobilized from the site.
CVE stated that it has been closely communicating with the provincial and municipal agencies to aid their efforts in controlling the situation. The Sunrise oil sands site lies nearly 60 kilometers toward the northeast of the oil sands hub in Fort McMurray. The Sunrise facility had a production capacity of 48,900 barrels per day in 2023.
Currently, Alberta is battling more than 60 wildfires, and the risks on the northern side have been categorized as very high to extreme. Previously, Suncor Energy’s Firebag facility had been shut down temporarily due to the risk of wildfires. The company also cut down on its production as a precautionary measure. Suncor had also demobilized staff from the Firebag oil sands site, retaining only essential workers on-site.
Meanwhile, operations at Imperial Oil’s Kearl oil sands site remain unaffected. The Kearl oil sands site is located approximately 70 kilometers north of Fort McMurray.
Zacks Rank and Key Picks
Currently, CVE carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are SM Energy SM, Hess Midstream Partners LP HESM and Chevron Corporation CVX. SM Energy presently sports a Zacks Rank #1 (Strong Buy), while Hess Midstream and Chevron carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Hess Midstream owns, operates, develops, and acquires a wide range of midstream assets, providing services to Hess Corporation and other third-party customers. The partnership has a stable fee-based revenue model secured via long-term commercial contracts. Since Hess Midstream operates through 100% fee-based contracts, it is exposed to minimal commodity price risks.
Chevron is one of the largest publicly traded oil and gas companies in the world, with its operations spread across the globe. It is currently in the process of acquiring Hess Corporation. The acquisition is seen as a major win for Chevron, as it will give the company access to Hess' high-quality assets in Guyana and the Bakken Formation.
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