The Cenovus Equation 2010 Annual Report
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the C enovus e enovus the cenovus Q uation uation 2010 annual report equation 2010 annual report www.cenovus.com Cenovus energy inC. Brian Ferguson talks about Cenovus, our 421 – 7 avenue sW operations and how we’re doing things po Box 766 differently. Want to see the video? Download Calgary, alberta, Canada a free Qr code reader on your mobile browser. Front cover: Staff from our Christina Lake site t2p 0M5 printed in Canada. We aRe a canaDian oiL COMPanY aPPLYinG FResh, PRoGRESSIVE thinKinG: to safely and responsibly unlock energy resources Corporate Information Colin taylor(2)(3)(4) security holdings. they can be NYSE stateMent oF toronto, ontario reached throughout north america DiFFerenCes the world needs – that’s our promise. by phoning 1-866-332-8898 (english & as a canadian company listed exeCutive oFFiCers Wayne g. thomson(1)(4)(5)(6) French) and outside north america on the new York stock exchange Brian C. Ferguson Calgary, alberta by phone at 1-416-643-5850 or by (nYse), we are not required to to increase total shareholder return – that’s our goal. president & Chief executive officer (1) Former director of encana. facsimile at 1-416-643-5501. comply with most of the nYse (2) Member of the audit committee. John K. Brannan corporate governance standards (3) Member of the human Resources and Canadian stock transfer Company executive vice-president & compensation committee. and instead may comply with CiBC Mellon trust Company Chief operating officer (4) Member of the nominating and corporate canadian corporate governance Governance committee. Po Box 7010 harbir s. Chhina requirements. We are, however, (5) Member of the Reserves committee. adelaide street Postal station executive vice-president, oil sands (6) Member of the safety, environment and required to disclose the significant toronto, ontario, canada M5c 2W9 Responsibility committee. differences between our corporate Kerry D. Dyte www.cibcmellon.com (7) As an officer and a non-independent governance practices and those executive vice-president, general director, Mr. Ferguson is not a member of canadian stock transfer company Counsel & Corporate secretary any of the committees of our Board. required to be followed by u.s. (8) Ex-officio non-voting member of all other inc. recently purchased the transfer domestic companies under the Judy a. Fairburn committees of our Board. agency business from ciBc Mellon. nYse corporate governance executive vice-president, canadian stock transfer company standards. except as summarized on environment & strategic planning Cenovus heaD & registereD oFFiCe inc. is operating the transfer our website, www.cenovus.com, we sheila M. Mcintosh cenovus energy inc. agency business in the name of are in compliance with the nYse executive vice-president, 421 – 7 avenue s.W. ciBc Mellon trust company for a corporate governance standards in Communications & stakeholder Po Box 766 transition period. all significant respects. relations calgary, alberta, canada t2P 0M5 shareholDer investor relations ivor M. ruste Phone: 403-766-2000 Account Matters executive vice-president & www.cenovus.com Please visit the Invest In Us Chief Financial officer to change your address, transfer section of www.cenovus.com shares, eliminate duplicate mailings, for investor information. Donald t. swystun deposit dividends directly into executive vice-president, refining, Shareholder Information accounts at financial institutions Investor inquiries should be Marketing, transportation & in canada that provide electronic directed to: annual Meeting Development fund-transfer services, etc., 403-766-7711 hayward J. Walls shareholders are invited to please contact ciBc Mellon [email protected] executive vice-president, attend the annual meeting being trust company. organization & Workplace held on Wednesday, april 27, 2011 or stoCK exChanges Development at 2 p.m. (calgary time) at the susan grey teLus convention centre, common shares (cve) trade on Director, investor Relations BoarD oF DireCtors exhibition hall e, 2nd Floor, the toronto stock exchange 403-766-4751 Michael a. grandin(1)(4)(8) north Building, 136 – 8 avenue s.e., (TSX) and the new York stock [email protected] Chair, Calgary, alberta calgary, alberta. exchange (nYse). Media inquiries should be ralph s. Cunningham(1)(3)(4)(6) Please see our management Annual inForMation ForM / directed to: houston, texas proxy circular mailed to ForM 40-F shareholders and posted on our 403-766-7751 patrick D. Daniel(1)(2)(3)(4) our annual information Form is website, www.cenovus.com, for [email protected] Calgary, alberta filed with the canadian securities additional information. administrators in canada on or ian W. Delaney(1)(3)(4)(6) nc. i transFer agents & registrar seDaR at www.sedar.com and with toronto, ontario rhona DelFrari in canada, ciBc Mellon trust the u.s. securities and exchange (7) Manager, Media Relations reative reative Brian C. Ferguson commission under the Multi- c company in calgary, Montreal & 403-766-4740 Calgary, alberta Jurisdictional Disclosure system pictured here is Foster Creek, our largest steam-assisted gravity drainage (SAGD) project, toronto. in the united states, BnY [email protected] (1)(2)(4)(5) as Form 40-F on eDGaR at situated on the Cold lake air Weapons range in northern alberta. valerie a. a. nielsen Mellon in Jersey city, new Jersey. Calgary, alberta www.sec.gov. shareholders are encouraged to Charles M. rampacek(4)(5)(6) contact ciBc Mellon trust company Dallas, texas for information regarding their Designed and produced by Foundry Foundry by Designed and produced 133 · c oRPoRate anD shaRehoLDeR inFoRMation · CENOVUS 2010 annuaL RePoR t see how we add up OUR ABILITY TO ACHIEVE OUR PROMISE AND OUR GOAL REQUIRES A GREAT ASSET BASE AND THE RIGHT PEOPLE DOING THE RIGHT THINGS. WE HAVE BOTH. THE CENOVUS EQUATION shows HOW WE ADD UP. This page We grow our oil sands projects in phases. Construction is currently underway for phases C and D at Christina Lake. phase C, a 40,000 barrel-per-day expansion is expected to be completed in 2011. FaCing page The majority of Cenovus’s natural gas production comes from our shallow gas operations in southern alberta. pictured here is a drilling rig near Brooks. to results OUR GREAT ASSETS provide THE foundation fOR years Of energy development. We have an industry-leading portfolio of oil sands assets, two high-quality refining assets, a strong balance sheet, and low-cost conventional oil and natural gas operations that generate substantial operating cash flow. This page (CLoCkWise) a pumpjack at our Weyburn facility in saskatchewan / a natural gas wellhead near Brooks, alberta / The Wood River Refinery in Roxanna, illinois jointly owned with Conocophillips. FaCing page We’re always looking for ways to improve how we get our resources out of the ground. pictured here is equipment used for the solvent aided process (sap) at Christina Lake. sap is a technology we’re piloting. it helps maximize the amount of oil recovered using SAGD while reducing the environmental impact. QUALITY resources + fINANCIAL strength = great assets WE TAKE OUR COMMITMENT TO SMART RESOURCE DEVELOPMENT SERIOUSLY. WE AIM to MAXIMIZE VALUE fOR OUR SHAREHOLDERS WHILE SEEKING TO BALANCE ECONOMIC, SOCIAL AND ENVIRONMENTAL PERfORMANCE. This commitment guides the way we conduct our operations and is the foundation of our 10-year business plan. This page (CLoCkWise) speaking with a landowner / a Cenovus employee taking water samples / oil storage pipe racks coated with fire proofing leaving our module fabrication yard in nisku for our Christina Lake facility. FaCing page our environmental specialists inspect and analyze the land we’ll be using for our drilling activities before any operations begin. They then develop a plan that will reclaim the land once a well is depleted. pictured here is new growth in the forest near our Foster Creek project. strong execution + RESPONSIBLE operations = smart resource development WE HAVE A CULTURE THAT fOSTERS NEW IDEAS AND NEW APPROACHES IN ALL ASPECTS Of OUR BUSINESS. In our operations, technology plays a key role in extracting the resources – enhancing the amount recovered and improving the methods we use to get the oil and natural gas out of the ground. An ongoing objective is to advance innovative technologies that reduce the amount of land, water and energy we use. This page (CLoCkWise) Foster Creek control room / Building a culture of knowledge sharing through staff information sessions / solar panels in some of our operations provide power to remote instruments, allowing for data communication back to our main facility / staff at our Weyburn facility. FaCing page The plants at our oil sands facilities are largely water plants that require a complex system of pipes to transport steam and fluids used in the SAGD process. pictured here is our Christina Lake facility. innovation + continuous improvement = leading technology WE HAVE YEARS Of EXPERIENCE IMPROVING WHAT WE DO. A TRACK RECORD Of DELIVERING GREAT PERfORMANCE. A PASSION fOR RESULTS. The people at Cenovus are dedicated and enthusiastic about improving every aspect of our business. Experienced in turning ideas into action, and committed to doing right by the environment and our communities. We are proud to have the right people doing the right things to provide the energy resources the world needs and relies on every day. This page (CLoCkWise) adjusting a bolt on a pumpjack in Langevin / Cenovus staff in a meeting / operators at Christina Lake. FaCing page at Cenovus it’s important our equipment is operating at an optimal level. our employees are always looking for ways to improve equipment reliability and performance. pictured here is a mechanic at our Weyburn facility completing preventative maintenance on mechanical components. knowledge + dedication = the right people our people bring energy, focus and dedication to their work. pictured here is an operator at Christina Lake. CENOVUS 2010 ANNUAL report · SECTION TITLE · 12 great assets sMART resOUrCe DeVeLOPMeNt LeaDiNg teChnology the right PeOPLe cenovus As a company we are: Rigorous.