Billionaire Israel Englander’s 10 Stock Picks with Huge Upside Potential

3. Cenovus Energy Inc. (NYSE:CVE)

Number of Hedge Fund Holders as of Q4: 39

Millennium Management’s Equity Stake: $447.08 Million 

Upside Potential as of April 26: 58.28%

Cenovus Energy Inc. (NYSE:CVE), a Canadian oil and natural gas company headquartered in Calgary, Alberta, operates from its offices in Brookfield Place. The company continues to demonstrate strong operational and financial performance, both in its Upstream and Downstream businesses.

In the fourth quarter of 2024, Cenovus Energy Inc. (NYSE:CVE) generated over $2.0 billion in cash from operating activities, $1.6 billion of adjusted funds flow, and $123 million of free funds flow. The Upstream segment maintained robust performance, achieving production of 816,000 barrels of oil equivalent per day (BOE/d), including a new quarterly Oil Sands production record of 628,500 BOE/d. On the Downstream side, total crude throughput rose by nearly 24,000 barrels per day from the previous quarter to 666,700 barrels per day, reflecting an aggregate utilization rate of 93%. However, total revenues for the fourth quarter stood at $12.8 billion, a slight decline from $13.8 billion in the prior quarter, primarily due to lower commodity prices. Upstream revenues remained stable at $7.3 billion compared to the third quarter, while Downstream revenues fell to $7.8 billion from $8.8 billion.

For the full year 2024, Cenovus Energy Inc. (NYSE:CVE) reported total revenues of $54.3 billion and a total operating margin of $10.8 billion, compared to $52.2 billion in revenues and an operating margin of $11.0 billion in 2023. The year-over-year revenue increase was largely driven by higher production volumes and the positive impact of narrowing heavy Canadian crude differentials following the launch of the Trans Mountain pipeline expansion project. However, the operating margin experienced a slight decline due to narrower downstream crack spreads, higher turnaround costs, and elevated transportation and blending expenses. Despite these challenges, Cenovus Energy’s operational achievements and strategic infrastructure developments continue to solidify its strong position within the North American energy sector.