Cenovus Energy Inc

Good morning, everyone. Thank you for standing by and welcome to Synovus Energy's fourth quarter and full year 2025 results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your touchstone telephone. As a reminder, this call is being recorded. I would now like to turn the meeting over to Mr. Patrick Reed, Vice President, Investor Relations and Internal Audit. Please go ahead, Mr. Reed.

Thank you, Operator. Good morning, everyone, and welcome to Synovus' 2025 year-end and fourth quarter results conference call. On the call this morning, our CEO, John McKenzie, and CFO, Cam Sandhar, will take you through our results. Then we'll open the line for John, Cam, and other members of the Synovus management team to take your questions. Before getting started, I'll refer you to our advisories located at the end of today's news release. These describe the forward-looking information, non-GAAP measures, and oil and gas terms referred to today. They also outline the risk factors and assumptions relevant to this discussion. Additional information is available in Synovus' annual MD&A and our most recent AIF and Form 40F. And as a reminder, all figures we referenced on the call today will be in Canadian dollars, unless otherwise noted. You can view our results at synovus.com. For the question and answer portion of the call, please keep to one question with a maximum of one follow-up. You are welcome to rejoin the queue for any other follow-up questions you may have. We also ask that you hold off on any detailed modeling questions. You can follow up directly on those with our investor relations team after the call. I will now turn the call over to John. John, please go ahead.

Great, and thank you, Patrick, and good morning, everyone. I want to begin by recognizing our safety performance. Safety remains the cornerstone of everything we do at this company and every decision we make. At our Sunrise Oil Sand asset, our teams have now gone through two full calendar years and more than 1.8 million hours worked without a reportable incident. Now this is particularly notable because 2025 represented the highest activity level at Sunrise in the past six years with close to 950,000 hours worked as they completed two turnarounds and advanced the assets growth program. This outcome reflects our deep commitment to safety even during periods of elevated activity. Personal safety for each of our employees and contractors remains a critical priority which must underpin everything we do. We are working to build on our strong performance and continuously improve to ensure that our people come home safely each and every day. So now to our results. 2025 was a very important year for Synovus in which we executed a long list of priorities across the company. Our performance in 2025 is a testament to the great people and assets we have at Synovus. When I look at all the things that we accomplished this year, I couldn't be more impressed by the way our people met the challenges we faced. We had a very ambitious agenda and we collectively delivered against it. Operationally, our teams delivered exceptional performance, including setting multiple upstream production records across our assets and executing consecutive quarters of top quartile downstream reliability and profitability. Our upstream production of 834,000 BOE per day in 2025 was the highest ever for Synovus and up 3% from 2024, excluding the impact of the MEG energy acquisition. We also reduced total upstream non-fuel operating costs by approximately 4% from the year before. In the downstream, our refineries ran well through the year. with a combined utilization rate of 95% across the Canadian and U.S. segments. This included the impact of a major 59-day turnaround at Toledo, which was completed 11 days ahead of schedule. Now, at the same time, we lowered costs, delivering a reduction in operating costs of around $4 per barrel in the Canadian refining segment and $2 per barrel in our U.S. operated refineries. We recognize there's more work to do as we continue to drive down costs and leverage our commercial capabilities to enhance our market capture. We also achieved major milestones across our growth projects in 2025. This included completing the Narrows Lake tieback to Christina Lake, a first-of-its-kind extended steam reach pipeline, completing the facility's work on the Foster Creek optimization project, which delivered production growth well ahead of schedule and completing the construction and installation of the tie-ins on the West White Rose platform. These projects reflect an enormous amount of effort, determination and ingenuity from all parts of our organization that I couldn't be, and I couldn't be more proud of what we've delivered. Now 2025 also saw us complete two significant transactions. Starting with MEG Energy, we have long recognized the quality of the resource and the synergy opportunity available if we consolidated the Christina Lake area. When MEG became available, we responded accordingly. The acquisition was successfully closed on November 13th, adding over 100,000 barrels a day of top-tier resource located directly within our largest producing SAGD assets. The addition of MEG's assets and people have strengthened our industry-leading heavy oil portfolio and solidified our position as the preeminent heavy oil producer, not just in the Western Canadian sedimentary basin, but globally. We also sold our interest in the WRB refining joint venture at the end of the third quarter. As a result, we now have full operational, commercial, and strategic control of our downstream business, which remains a critical component to our heavy oil value chain. Together, these transactions position the company for continued material value growth over the long term. So now turning to our fourth quarter results, upstream production in the fourth quarter was 918,000 BOE per day, headlined by oil sands production of 727,000 BOE per day, both records for the company. Including the full benefit of the MEG acquisition, which closed in mid-November, we exited the year with production over 970,000 BOE per day in December, including nearly 786,000 BOE per day from the oil sands. We are encouraged by the recent performance and expect our operating momentum to continue into 2026 and beyond. At Christina Lake, production averaged 309,000 barrels a day in the fourth quarter. That includes roughly six weeks of production from the newly acquired Christina Lake North asset, which achieved its highest ever production rates of over 110,000 barrels a day in the quarter. The combined Christina Lake is the largest and highest quality thermal asset in the industry with a reserve life measured in decades. The integrations of systems and people is largely complete. and we have delivered a majority of the expected corporate synergies already. Work is now progressing at pace to capture operational synergies. We have begun that delineation and seismic program at the Christina Lake North asset, which will allow us to optimize our go-forward development plans for this resource. Our technical groups have begun leveraging our scale and operating practices to deliver near-term production and cost savings. We have also begun drilling a 42 well redevelopment program which will support additional production volumes in 2026 and 2027. We are very comfortable in our ability to deliver the 150 million of annual synergies in 2026 and 2027 and over 400 million of annual synergies by the end of 2028. We are delineating additional synergy opportunities as we fully integrate our future development plans for the broader Christina Lake region. Now, at Foster Creek, we achieved a production record of 220,000 barrels per day in the quarter, reflecting the impact of the Foster Creek Optimization Project. Incremental steam capacity of approximately 80,000 barrels a day was brought online in mid-2025. And in the fourth quarter, the water treatment and de-oiling facilities were commissioned and put into service. With these milestones behind us and production largely ramped up, we have successfully delivered around 30,000 barrels a day of growth at Foster Creek well ahead of schedule. Looking forward, new well pads associated with the optimization project will be brought online at Foster Creek this year, which will support increased production levels or support the increased production levels we have seen. We also continue to progress our enhanced sulfur recovery project that will reduce operating costs by about 50 to 75 cents per barrel when it comes online mid-year. At Sunrise, following the turnarounds executed in Q2 and Q3, production rose to over 60,000 barrels a day in the fourth quarter. The first of the new well pads from the east development area, incorporating Synovus well pad design for the first time at Sunrise, is currently steaming and expected to start up in early 2026. We will bring on a total of three well pads in this high quality reservoir in 2026 and at least one more in 2027. This development will deliver the next phase of growth as we progress our plans to increase production to over 70,000 barrels a day by 2028. Now with the work we completed earlier this year, we have also extended the turnaround cycle from four to five years at Sunrise. That means there is no major cycle ending turnarounds at Sunrise until 2030, providing an extended runway while we grow volumes and optimize the asset. Deloitte Thermals had an exceptional fourth quarter, partly as a result of the highly successful redevelopment well program that significantly exceeded our expectations. In tandem with strong base well optimization, production averaged over 107,000 barrels per day. in the quarter, more than 10,000 barrels higher than the previous quarter. This includes the impact of the sale of Vaughan at the beginning of December. And building off the success we had in 2025, we'll be deploying an even larger redevelopment program in Lloydminster in 2026. Now, turning to the Atlantic, at West White Rose, we're currently conducting systems integration testing, and we're in the final phase of commissioning. Our teams have done a fantastic job of safely progressing the scope in spite of particularly challenging weather in the North Atlantic. We've seen an abnormally severe winter storm season with waves as high as 17 meters and winds up to 170 kilometers per hour. Through this, our people have continued to make steady progress. We have completed the welding and coating of the platform legs and the main power generators are fully commissioned. We also opened the living quarters on the topside prior to year end, transitioning staff from using a flotel vessel to fully manning the platform. Now, we've guided you to expect first oil in the second quarter. With weather disruptions we've seen, that timeline will be tight, but our people are determined and do incredible work as we push this forward at pace. Also in the offshore, in conjunction with our partners in Asia, we successfully extended the gas sales agreements in China for both LIWA 34-2 and LIWA 29-1 subsequent to the quarter. The extensions will enable sales through the end of the field's production periods in 2034 and 40 respectively. This increases sales volumes within our five-year plan and add nearly $2 billion of incremental free cash flow to these assets over the life of the fields. Now moving to the downstream, fourth quarter results underpin the profitability and competitiveness of our assets in a relatively weak crack environment. In the quarter, the Canadian refining business ran at its highest rates of production through the year with crude throughput of 113,000 barrels per day or utilization rate of about 105%. In U.S. refining, our results in the fourth quarter reflect only our operated assets as our interest in the WRB refining was divested effective September 30th. Our U.S. refining business delivered crude throughput of 353,000 barrels per day or approximately 97% utilization. While the market crack spreads in Chicago area deteriorated significantly in early December, which is typical for this time of year, we were able to capture a larger share of the margin available. Excluding the receipt of one-time pipeline settlement, our adjusted market capture was around 95% in the quarter. This reflects both seasonal product mix impacts related to our configuration, as well as our ability to capitalize on commercial opportunities we saw in the market during the quarter. Now, I'm going to pause for a minute, and I will turn this over to Cam to walk through our financial results.