It’s just the second Canadian oil and gas producer to pump more than one million barrels of oil equivalent per day, joining rival Canadian Natural Resources Limited after a record-breaking quarter. Cenovus averaged 1,024,000 barrels of oil equivalent per day in the third quarter, up more than 50,000 barrels from the previous quarter. Production is poised to climb higher still with its $5.7-billion acquisition of Athabasca Oil Corp., expected to close in December. (The Logic)

Talking point: Cenovus noted Wednesday that benchmark prices for oil fell in the third quarter from the previous three months despite global energy shortages caused by the Iran war. Meanwhile, Canadian heavy oil has been trading at a wider discount to U.S. oil than a year ago—a mixed blessing for integrated producers like Cenovus and Suncor. The discount squeezes the prices they receive for crude while boosting profit margins at their refineries. Unlike in past periods when steep discounts were driven by pipeline bottlenecks, Cenovus executives Wednesday pointed to global factors—including soaring shipping costs, particularly in the U.S. Gulf Coast. “This is much more driven globally,” Cenovus executive Geoff Murray said on Wednesday’s earnings call. “What you point to in the U.S. Gulf Coast is really the answer right now, which is freight, freight, freight and freight.” Murray added that selling crude off Canada’s West Coast is currently more attractive than shipping it to the U.S. Gulf Coast.

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