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Cenovus Energy Inc.

Interim Consolidated Financial Statements (unaudited)

For the Period Ended March 31, 2026

(Canadian Dollars)

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CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

For the period ended March 31, 2026

TABLE OF CONTENTS

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)						3
CONSOLIDATED BALANCE SHEETS (UNAUDITED)						4
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)						5
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)						6
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)						7
1. DESCRIPTION OF BUSINESS AND SEGMENTED DISCLOSURES						7
2. BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE						11
3. UPDATES TO ACCOUNTING POLICIES						11
4. MEG ENERGY CORP. ACQUISITION						12
5. FINANCE COSTS, NET						12
6. FOREIGN EXCHANGE (GAIN) LOSS, NET						12
7. INCOME TAXES						13
8. PER SHARE AMOUNTS						13
9. EXPLORATION AND EVALUATION ASSETS, NET						13
10. PROPERTY, PLANT AND EQUIPMENT, NET						14
11. LEASES						14
12. DEBT AND CAPITAL STRUCTURE						15
13. DECOMMISSIONING LIABILITIES						17
14. OTHER LIABILITIES						17
15. SHARE CAPITAL AND WARRANTS						18
16. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)						19
17. STOCK-BASED COMPENSATION PLANS						20
18. RELATED PARTY TRANSACTIONS						21
19. FINANCIAL INSTRUMENTS						21
20. RISK MANAGEMENT						22
21. SUPPLEMENTARY CASH FLOW INFORMATION						24
22. COMMITMENTS AND CONTINGENCIES						26

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			2

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited)

For the period ended March 31,

($ millions, except per share amounts)

															Three Months Ended
			Notes																		2026						2025
Revenues			1																		12,356						13,299
Expenses			1
Purchased Product, Transportation and Blending																					6,628						8,870
Operating																					1,475						1,629
(Gain) Loss on Risk Management			19																		9						15
Depreciation, Depletion, Amortization and Exploration Expense			9,10,11																		1,483						1,319
(Income) Loss From Equity-Accounted Affiliates																					(15)						7
General and Administrative																					411						197
Finance Costs, Net			5																		194						136
Integration, Transaction and Other Costs			4																		32						2
Foreign Exchange (Gain) Loss, Net			6																		179						—
(Gain) Loss on Divestiture of Assets																					(86)						—
Other (Income) Loss, Net																					(38)						(6)
Earnings (Loss) Before Income Tax																					2,084						1,130
Income Tax Expense (Recovery)			7																		514						271
Net Earnings (Loss)																					1,570						859
Other Comprehensive Income (Loss), Net of Tax			16
Items That Will not be Reclassified to Profit or Loss:
Actuarial Gain (Loss) Relating to Pension and Other Post-Employment Benefits																					4						2
Change in the Fair Value of Equity Instruments at FVOCI (1)			19																		1						(2)
Items That may be Reclassified to Profit or Loss:
Foreign Currency Translation Adjustment																					244						(10)
Total Other Comprehensive Income (Loss), Net of Tax																					249						(10)
Comprehensive Income (Loss)																					1,819						849
Net Earnings (Loss) Per Common Share ($)			8
Basic																					0.84						0.47
Diluted																					0.83						0.47

(1)Fair value through other comprehensive income (loss) (“FVOCI”).

See accompanying Notes to the interim Consolidated Financial Statements (unaudited).

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			3

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CONSOLIDATED BALANCE SHEETS (unaudited)

As at

($ millions)

									March 31,						December 31,
			Notes						2026						2025
Assets
Current Assets
Cash and Cash Equivalents									2,575						2,740
Accounts Receivable and Accrued Revenues									4,734						3,435
Income Tax Receivable									41						366
Inventories									4,127						3,349
Total Current Assets									11,477						9,890
Restricted Cash									266						256
Exploration and Evaluation Assets, Net			1,9						596						575
Property, Plant and Equipment, Net			1,10						45,097						45,260
Right-of-Use Assets, Net			1,11						2,105						2,153
Income Tax Receivable									25						25
Investments in Equity-Accounted Affiliates									291						295
Other Assets									538						464
Deferred Income Taxes									1,541						1,594
Goodwill			1						2,912						2,912
Total Assets									64,848						63,424
Liabilities and Equity
Current Liabilities
Accounts Payable and Accrued Liabilities									6,691						5,847
Income Tax Payable									265						98
Lease Liabilities			11						374						369
Total Current Liabilities									7,330						6,314
Long-Term Debt			12						10,633						11,032
Lease Liabilities			11						2,745						2,806
Decommissioning Liabilities			13						4,901						4,872
Other Liabilities			14						942						889
Deferred Income Taxes									5,764						5,873
Total Liabilities									32,315						31,786
Shareholders’ Equity									32,517						31,622
Non-Controlling Interest									16						16
Total Liabilities and Equity									64,848						63,424
Commitments and Contingencies			22

See accompanying Notes to the interim Consolidated Financial Statements (unaudited).

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			4

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CONSOLIDATED STATEMENTS OF EQUITY (unaudited)

($ millions)

			Shareholders’ Equity
			Common Shares						Treasury Shares						Preferred Shares						Warrants						Paid in Surplus						Retained Earnings						AOCI (1)						Total
			(Note 15)						(Note 15)						(Note 15)						(Note 15)																		(Note 16)
As at December 31, 2024			15,659						(43)						356						12						944						10,513						2,313						29,754
Net Earnings (Loss)			—						—						—						—						—						859						—						859
Other Comprehensive Income    (Loss), Net of Tax			—						—						—						—						—						—						(10)						(10)
Total Comprehensive Income (Loss)			—						—						—						—						—						859						(10)						849
Common Shares Issued Under Stock Option Plans			4						—						—						—						(1)						—						—						3
Purchase of Common Shares Under NCIB (2)			(25)						—						—						—						(37)						—						—						(62)
Purchase of Common Shares Under Employee Benefit Plan			—						(58)						—						—						—						—						—						(58)
Common Shares Issued Under Employee Benefit Plan			—						81						—						—						(6)						—						—						75
Preferred Shares Redeemed			—						—						(140)						—						(60)						—						—						(200)
Warrants Exercised			2						—						—						(1)						—						—						—						1
Stock-Based Compensation Expense			—						—						—						—						3						—						—						3
Base Dividends on Common Shares			—						—						—						—						—						(327)						—						(327)
Dividends on Preferred Shares			—						—						—						—						—						(6)						—						(6)
As at March 31, 2025			15,640						(20)						216						11						843						11,039						2,303						30,032
As at December 31, 2025			18,599						(116)						113						4						298						12,323						401						31,622
Net Earnings (Loss)			—						—						—						—						—						1,570						—						1,570
Other Comprehensive Income (Loss), Net of Tax			—						—						—						—						—						—						249						249
Total Comprehensive Income (Loss)			—						—						—						—						—						1,570						249						1,819
Common Shares Issued Under Stock Option Plans			54						—						—						—						(10)						—						—						44
Purchase of Common Shares Under NCIB (2)			(114)						—						—						—						—						(242)						—						(356)
Purchase of Common Shares Under Employee Benefit Plan			—						(51)						—						—						—						—						—						(51)
Common Shares Issued Under Employee Benefit Plan			—						80						—						—						—						31						—						111
Preferred Shares Redeemed			—						—						(113)						—						—						(187)						—						(300)
Warrants Exercised			5						—						—						(2)						—						—						—						3
Warrants Expired			—						—						—						(2)						—						2						—						—
Stock-Based Compensation Expense			—						—						—						—						4						—						—						4
Base Dividends on Common Shares			—						—						—						—						—						(377)						—						(377)
Dividends on Preferred Shares			—						—						—						—						—						(2)						—						(2)
As at March 31, 2026			18,544						(87)						—						—						292						13,118						650						32,517

(1)Accumulated other comprehensive income (loss) (“AOCI”).

(2)Normal course issuer bid (“NCIB”). Includes taxes payable on purchase of shares.

See accompanying Notes to the interim Consolidated Financial Statements (unaudited).

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			5

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CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

For the period ended March 31,

($ millions)

												Three Months Ended
			Notes															2026						2025
Operating Activities
Net Earnings (Loss)																		1,570						859
Depreciation, Depletion and Amortization			10,11															1,471						1,314
Deferred Income Tax Expense (Recovery)			7															(33)						(66)
Unrealized (Gain) Loss on Risk Management			19															(1)						23
Unrealized Foreign Exchange (Gain) Loss			6															180						19
(Gain) Loss on Divestiture of Assets																		(86)						—
Unwinding of Discount on Decommissioning Liabilities			13															64						58
(Income) Loss From Equity-Accounted Affiliates																		(15)						7
Distributions Received From Equity-Accounted Affiliates																		22						25
Stock-Based Compensation, Net of Payments																		210						7
Other																		(5)						(34)
Settlement of Decommissioning Liabilities			13															(53)						(36)
Net Change in Non-Cash Working Capital			21															(1,143)						(861)
Cash From (Used in) Operating Activities																		2,181						1,315
Investing Activities
Acquisitions, Net of Cash Acquired																		(10)						(100)
Capital Investment			1															(1,170)						(1,229)
Proceeds From Divestitures																		99						—
Net Change in Investments and Other																		12						4
Net Change in Non-Cash Working Capital			21															(1)						(23)
Cash From (Used in) Investing Activities																		(1,070)						(1,348)
Net Cash Provided (Used) Before Financing Activities																		1,111						(33)
Financing Activities			21
Net Issuance (Repayment) of Short-Term Borrowings																		—						150
Repayment of Long-Term Debt			12															(500)						(12)
Principal Repayment of Leases			11															(90)						(83)
Net Proceeds (Repayments) on Repurchase Agreements																		294						300
Common Shares Issued Under Stock Option Plans																		44						3
Purchase of Common Shares Under NCIB			15															(356)						(62)
Purchase of Common Shares Under Employee Benefit Plan			15															(51)						(58)
Redemption of Preferred Shares			15															(300)						(200)
Proceeds From Exercise of Warrants																		3						1
Dividends Paid			8															(379)						(333)
Cash From (Used in) Financing Activities																		(1,335)						(294)
Effect of Foreign Exchange on Cash and Cash Equivalents																		59						2
Increase (Decrease) in Cash and Cash Equivalents																		(165)						(325)
Cash and Cash Equivalents, Beginning of Period																		2,740						3,093
Cash and Cash Equivalents, End of Period																		2,575						2,768

See accompanying Notes to the interim Consolidated Financial Statements (unaudited).

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			6

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

1. DESCRIPTION OF BUSINESS AND SEGMENTED DISCLOSURES

Cenovus Energy Inc. (“Cenovus” or the “Company”) is an integrated energy company with crude oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States (“U.S.”).

Cenovus is incorporated under the Canada Business Corporations Act and its common shares are listed on the Toronto Stock Exchange (“TSX”) and the New York Stock Exchange. The executive and registered office is located at 4100, 225 6 Avenue S.W., Calgary, Alberta, Canada, T2P 1N2. Information on the Company’s basis of preparation for these interim Consolidated Financial Statements is found in Note 2.

Management has determined the operating segments based on information regularly reviewed for the purposes of decision making, allocating resources and assessing operational performance by Cenovus’s chief operating decision maker. The Company’s operating segments are aggregated based on their geographic locations, the nature of the businesses or a combination of these factors. The Company evaluates the financial performance of its operating segments primarily based on operating margin.

The Company operates through the following reportable segments:

Upstream Segments

•Oil Sands, includes the development and production of bitumen and heavy oil in northern Alberta and Saskatchewan. Cenovus’s oil sands assets include Foster Creek, Christina Lake, Sunrise, Lloydminster thermal and Lloydminster conventional heavy oil assets. Cenovus jointly owns and operates pipeline gathering systems and terminals through the equity-accounted investment in Husky Midstream Limited Partnership (“HMLP”). The sale and transportation of Cenovus’s production and third-party commodity trading volumes are managed and marketed through access to capacity on third-party pipelines and storage facilities in both Canada and the U.S. to optimize product mix, delivery points, transportation commitments and customer diversification.

•Conventional, includes assets rich in natural gas liquids (“NGLs”) and natural gas in Alberta and British Columbia in the Edson, Clearwater and Rainbow Lake operating areas, in addition to the Northern Corridor, which includes Elmworth and Wapiti. The segment also includes interests in numerous natural gas processing facilities. Cenovus’s NGLs and natural gas production is marketed and transported, with additional third-party commodity trading volumes, through access to capacity on third-party pipelines, export terminals and storage facilities. These provide flexibility for market access to optimize product mix, delivery points, transportation commitments and customer diversification.

•Offshore, includes offshore operations, exploration and development activities in the east coast of Canada and the Asia Pacific region, representing China and the equity-accounted investment in Husky-CNOOC Madura Limited (“HCML”), which is engaged in the exploration for, and production of, NGLs and natural gas in offshore Indonesia.

Downstream Segments

•Canadian Refining, includes the owned and operated Lloydminster upgrading and asphalt refining complex, which converts heavy oil and bitumen into synthetic crude oil, diesel, asphalt and other ancillary products. Cenovus also owns and operates the Bruderheim crude-by-rail terminal and two ethanol plants. Cenovus markets its production and third-party commodity trading volumes in an effort to use its integrated network of assets to maximize value.

•U.S. Refining, includes the refining of crude oil to produce gasoline, diesel, jet fuel, asphalt and other products at the wholly-owned Lima, Superior and Toledo refineries. Cenovus markets its own and third-party refined products.

Corporate and Eliminations

Corporate and Eliminations, includes Cenovus-wide costs for general and administrative, financing activities, gains and losses on risk management for corporate-related derivative instruments and foreign exchange. Eliminations include adjustments for feedstock and internal usage of crude oil, natural gas, condensate, other NGLs and refined products between segments; transloading services provided to the Oil Sands segment by the Company’s crude-by-rail terminal; the sale of condensate extracted from blended crude oil production in the Canadian Refining segment and sold to the Oil Sands segment; and unrealized profits in inventory. Eliminations are recorded based on market prices.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			7

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

A) Results of Operations – Segment and Operational Information

			Upstream
For the three months ended			Oil Sands												Conventional												Offshore												Total
March 31,			2026						2025						2026						2025						2026						2025						2026						2025
Gross Sales
External Sales			6,892						5,904						568						443						549						451						8,009						6,798
Intersegment Sales			1,892						1,953						469						501						—						—						2,361						2,454
			8,784						7,857						1,037						944						549						451						10,370						9,252
Royalties			(940)						(861)						(18)						(20)						(25)						(25)						(983)						(906)
Revenues			7,844						6,996						1,019						924						524						426						9,387						8,346
Expenses
Purchased Product			617						632						623						535						4						—						1,244						1,167
Transportation and Blending			3,283						3,151						85						90						7						6						3,375						3,247
Operating			826						677						110						127						111						89						1,047						893
Realized (Gain) Loss on Risk    Management			23						(8)						(10)						(1)						—						—						13						(9)
Operating Margin			3,095						2,544						211						173						402						331						3,708						3,048
Unrealized (Gain) Loss on Risk    Management			(90)						(7)						4						—						—						—						(86)						(7)
Depreciation, Depletion and    Amortization			1,027						834						134						120						129						130						1,290						1,084
Exploration Expense			1						4						—						—						11						1						12						5
(Income) Loss From Equity-    Accounted Affiliates			—						—						(1)						—						(15)						(8)						(16)						(8)
Segment Income (Loss)			2,157						1,713						74						53						277						208						2,508						1,974

			Downstream
			Canadian Refining												U.S. Refining												Total
For the three months ended March 31,			2026						2025						2026						2025						2026						2025
Gross Sales
External Sales			1,110						985						4,220						6,422						5,330						7,407
Intersegment Sales			297						297						—						1						297						298
			1,407						1,282						4,220						6,423						5,627						7,705
Royalties			—						—						—						—						—						—
Revenues			1,407						1,282						4,220						6,423						5,627						7,705
Expenses
Purchased Product			1,060						1,076						3,318						6,006						4,378						7,082
Transportation and Blending			—						—						—						—						—						—
Operating			146						138						380						716						526						854
Realized (Gain) Loss on Risk Management			—						—						(11)						6						(11)						6
Operating Margin			201						68						533						(305)						734						(237)
Unrealized (Gain) Loss on Risk Management			—						—						30						(8)						30						(8)
Depreciation, Depletion and Amortization			45						47						112						158						157						205
Exploration Expense			—						—						—						—						—						—
(Income) Loss From Equity-Accounted Affiliates			—						—						—						—						—						—
Segment Income (Loss)			156						21						391						(455)						547						(434)

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			8

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

									Corporate and Eliminations												Consolidated
For the three months ended March 31,																		2026						2025						2026						2025
Gross Sales
External Sales																								—						—						13,339						14,205
Intersegment Sales																								(2,658)						(2,752)						—						—
																								(2,658)						(2,752)						13,339						14,205
Royalties																								—						—						(983)						(906)
Revenues																								(2,658)						(2,752)						12,356						13,299
Expenses
Purchased Product																								(2,129)						(2,370)						3,493						5,879
Transportation and Blending																								(240)						(256)						3,135						2,991
Purchased Product, Transportation and Blending																								(2,369)						(2,626)						6,628						8,870
Operating																								(98)						(118)						1,475						1,629
Realized (Gain) Loss on Risk Management																								8						(5)						10						(8)
Unrealized (Gain) Loss on Risk Management																								55						38						(1)						23
Depreciation, Depletion and Amortization																								24						25						1,471						1,314
Exploration Expense																								—						—						12						5
(Income) Loss From Equity-Accounted Affiliates																								1						15						(15)						7
Segment Income (Loss)																								(279)						(81)						2,776						1,459
General and Administrative																								411						197						411						197
Finance Costs, Net																								194						136						194						136
Integration, Transaction and Other Costs																								32						2						32						2
Foreign Exchange (Gain) Loss, Net																								179						—						179						—
(Gain) Loss on Divestiture of Assets																								(86)						—						(86)						—
Other (Income) Loss, Net																								(38)						(6)						(38)						(6)
																								692						329						692						329
Earnings (Loss) Before Income Tax																																				2,084						1,130
Income Tax Expense (Recovery)																																				514						271
Net Earnings (Loss)																																				1,570						859

B) External Sales by Product

			Upstream
For the three months ended			Oil Sands												Conventional												Offshore												Total
March 31,			2026						2025						2026						2025						2026						2025						2026						2025
Crude Oil			6,604						5,423						109						38						247						146						6,960						5,607
Natural Gas and Other			166						78						398						304						222						228						786						610
NGLs (1)			122						403						61						101						80						77						263						581
External Sales			6,892						5,904						568						443						549						451						8,009						6,798

			Downstream
			Canadian Refining												U.S. Refining												Total
For the three months ended March 31,			2026						2025						2026						2025						2026						2025
Gasoline			55						49						1,970						3,114						2,025						3,163
Distillates (2)			421						356						1,672						2,485						2,093						2,841
Synthetic Crude Oil			425						404						—						—						425						404
Asphalt			45						70						124						194						169						264
Other Products and Services			164						106						454						629						618						735
External Sales			1,110						985						4,220						6,422						5,330						7,407

(1)Third-party condensate sales are included within NGLs.

(2)Includes diesel and jet fuel.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			9

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

C) Geographical Information

															Revenues (1)
For the three months ended March 31,															2026						2025
Canada															7,601						6,184
United States															4,481						6,833
China															274						282
Consolidated															12,356						13,299

(1)Revenues from external customers by country are classified based on the jurisdiction in which the selling entities are located.

			Non-Current Assets (1)
			March 31,						December 31,
As at			2026						2025
Canada			47,501						47,641
United States			2,506						2,514
China			884						939
Indonesia			198						203
Consolidated			51,089						51,297

(1)Includes exploration and evaluation (“E&E”) assets, property, plant and equipment (“PP&E”), right-of-use (“ROU”) assets, income tax receivable, investments in equity-accounted affiliates, precious metals, intangible assets and goodwill.

D) Assets by Segment

			E&E Assets												PP&E												ROU Assets
			March 31,						December 31,						March 31,						December 31,						March 31,						December 31,
As at			2026						2025						2026						2025						2026						2025
Oil Sands			594						568						33,994						34,149						1,174						1,204
Conventional			—						—						2,166						2,202						40						44
Offshore			2						7						4,054						4,008						169						180
Canadian Refining			—						—						2,434						2,452						51						50
U.S. Refining			—						—						2,239						2,238						283						287
Corporate and Eliminations			—						—						210						211						388						388
Consolidated			596						575						45,097						45,260						2,105						2,153

			Goodwill												Total Assets
			March 31,						December 31,						March 31,						December 31,
As at			2026						2025						2026						2025
Oil Sands			2,912						2,912						43,603						42,505
Conventional			—						—						2,525						2,579
Offshore			—						—						4,860						4,756
Canadian Refining			—						—						2,925						2,831
U.S. Refining			—						—						5,237						4,698
Corporate and Eliminations			—						—						5,698						6,055
Consolidated			2,912						2,912						64,848						63,424

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			10

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

E) Capital Expenditures (1)

For the three months ended March 31,															2026						2025
Capital Investment
Oil Sands															851						763
Conventional															93						122
Offshore
Atlantic															119						227
Asia Pacific															23						14
Total Upstream															1,086						1,126
Canadian Refining															24						22
U.S. Refining															58						77
Total Downstream															82						99
Corporate and Eliminations															2						4
															1,170						1,229
Acquisitions
Oil Sands															3						92
Conventional															1						—
															4						92
Total Capital Expenditures															1,174						1,321

(1)Includes expenditures on PP&E, E&E assets and capitalized interest.

2. BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE

In these interim Consolidated Financial Statements, unless otherwise indicated, all dollars are expressed in Canadian dollars. All references to C$ or $ are to Canadian dollars and references to US$ are to U.S. dollars.

These interim Consolidated Financial Statements were prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) (the “IFRS Accounting Standards”) applicable to the preparation of interim financial statements, including International Accounting Standard 34, “Interim Financial Reporting”. These interim Consolidated Financial Statements were prepared following the same accounting policies and methods of computation as the annual Consolidated Financial Statements for the year ended December 31, 2025, except for income taxes. Income taxes on earnings or loss in the interim period are accrued using the income tax rate that would be applicable to the expected annual earnings or loss.

Certain information and disclosures normally included in the notes to the annual Consolidated Financial Statements were condensed. Accordingly, these interim Consolidated Financial Statements should be read in conjunction with the annual Consolidated Financial Statements for the year ended December 31, 2025, which were prepared in accordance with IFRS Accounting Standards.

These interim Consolidated Financial Statements were approved by the Board of Directors effective May 5, 2026.

3. UPDATES TO ACCOUNTING POLICIES

A) Adoption of Amendments to Financial Instruments

Effective January 1, 2026, the Company adopted the amendments to IFRS 9, “Financial Instruments” (“IFRS 9”) and IFRS 7, “Financial Instruments: Disclosures” (“IFRS 7”). The amendments clarify the derecognition of financial liabilities and the classification of certain financial assets. The adoption of the amendments to IFRS 9 and IFRS 7 did not have a material impact on the Company’s Consolidated Financial Statements.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			11

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

B) Recent Accounting Pronouncements

On April 9, 2024, the IASB issued IFRS 18, “Presentation and Disclosure in Financial Statements” (“IFRS 18”), which will replace International Accounting Standard 1, “Presentation of Financial Statements”. IFRS 18 will establish a revised structure for the Consolidated Statements of Comprehensive Income (Loss), including new defined subtotals, enhanced principles on aggregation and disaggregation, and additional disclosure requirements related to management-defined performance measures (“MPMs”). The objective of the standard is to improve comparability across entities and reporting periods. IFRS 18 will not impact recognition or measurement of income and expenses.

Cenovus has executed a parallel system environment to reflect the new presentation requirements. The changes will primarily reflect a re-mapping of line items on the Consolidated Statements of Comprehensive Income (Loss) to newly defined categories. Items such as foreign exchange gains and losses will require segregation. The primary impact on the Consolidated Statements of Cash Flows will be the movement of certain finance costs from operating activities to financing activities. The Company has also identified metrics anticipated to be defined as MPMs.

The Company will continue to evaluate the impacts until adoption on January 1, 2027. The standard will be applied retrospectively, with certain transition provisions.

4. MEG ENERGY CORP. ACQUISITION

On November 13, 2025, Cenovus completed the acquisition of MEG Energy Corp. (“MEG”) through a plan of arrangement (the “MEG Acquisition”), pursuant to which Cenovus acquired all the issued and outstanding common shares of MEG, other than common shares of MEG already owned by Cenovus, for total purchase consideration of $7.1 billion, consisting of $3.4 billion in cash, 143.9 million Cenovus common shares and $32 million of assumed stock-based compensation. The MEG Acquisition provided Cenovus with additional oil sands assets that are directly adjacent to the Company’s Christina Lake asset and are reported under the Christina Lake results in the Oil Sands segment.

The preliminary purchase price allocation was based on Management’s best estimate of the assets acquired and liabilities assumed. The Company will finalize the value of net assets acquired by November 13, 2026, and adjustments to initial estimates, including goodwill, may be required. No adjustments were made to the preliminary purchase price allocation as at March 31, 2026. For further details, see Note 4 of the annual Consolidated Financial Statements for the year ended December 31, 2025.

For the three months ended March 31, 2026, integration and transaction costs related to the MEG Acquisition of $12 million were recognized in net earnings (loss).

5. FINANCE COSTS, NET

For the three months ended March 31,															2026						2025
Interest Expense – Short-Term Borrowings and Long-Term Debt															123						79
Interest Expense – Lease Liabilities (Note 11)															46						43
Unwinding of Discount on Decommissioning Liabilities (Note 13)															64						58
Other															12						6
Capitalized Interest															(25)						(17)
Finance Costs															220						169
Interest Income															(26)						(33)
															194						136

6. FOREIGN EXCHANGE (GAIN) LOSS, NET

For the three months ended March 31,															2026						2025
Unrealized Foreign Exchange (Gain) Loss on Translation of:
U.S. Dollar Debt												Other			100						(5)
Other															80						24
Unrealized Foreign Exchange (Gain) Loss															180						19
Realized Foreign Exchange (Gain) Loss															(1)						(19)
															179						—

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			12

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

7. INCOME TAXES

For the three months ended March 31,															2026						2025
Current Tax
Canada															479						279
United States															6						—
Asia Pacific															54						45
Other International															8						13
Total Current Tax Expense (Recovery)															547						337
Deferred Tax Expense (Recovery)															(33)						(66)
															514						271

8. PER SHARE AMOUNTS

A) Net Earnings (Loss) Per Common Share – Basic and Diluted

For the three months ended March 31,															2026						2025
Net Earnings (Loss)															1,570						859
Effect of Cumulative Dividends on Preferred Shares															(2)						(6)
Net Earnings (Loss) – Basic															1,568						853
Effect of Stock-Based Compensation															—						1
Net Earnings (Loss) – Diluted															1,568						854
Basic – Weighted Average Number of Shares (thousands)															1,874,914						1,821,325
Dilutive Effect of Warrants															—						2,505
Dilutive Effect of Stock-Based Compensation															4,139						7,435
Diluted – Weighted Average Number of Shares (thousands)															1,879,053						1,831,265
Net Earnings (Loss) Per Common Share – Basic ($)															0.84						0.47
Net Earnings (Loss) Per Common Share – Diluted (1) ($)															0.83						0.47

(1)For the three months ended March 31, 2026, 24.8 million (2025 — 13.4 million) common shares related to the assumed exercise of stock-based compensation were excluded from the calculation of dilutive net earnings (loss) per share, as the effect was anti-dilutive.

B) Common Share Dividends

For the three months ended March 31, 2026, the Company paid dividends of $377 million or $0.200 per common share (2025 – $327 million or $0.180 per common share). The declaration of common share dividends is at the sole discretion of the Company’s Board of Directors and is considered quarterly.

On May 5, 2026, the Company’s Board of Directors declared a second quarter base dividend of $0.220 per common share, payable on June 30, 2026, to common shareholders of record as at June 15, 2026.

C) Preferred Share Dividends

For the three months ended March 31, 2026, the Company declared and paid preferred share dividends of $2 million (2025 – $6 million).

9. EXPLORATION AND EVALUATION ASSETS, NET

			Total
As at December 31, 2025			575
Acquisitions			3
Additions			23
Write-downs			(5)
Exchange Rate Movements and Other			—
As at March 31, 2026			596

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			13

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

10. PROPERTY, PLANT AND EQUIPMENT, NET

			Crude Oil and Natural Gas Properties						Processing, Transportation and Storage Assets						Refining Assets						Other Assets (1)						Total
COST
As at December 31, 2025			65,567						275						7,147						1,959						74,948
Acquisitions			1						—						—						—						1
Additions			1,063						—						82						2						1,147
Change in Decommissioning Liabilities			8						—						—						—						8
Divestitures			(5)						—						—						(4)						(9)
Exchange Rate Movements and Other			38						—						76						12						126
As at March 31, 2026			66,672						275						7,305						1,969						76,221
ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION
As at December 31, 2025			25,208						143						2,834						1,503						29,688
Depreciation, Depletion and Amortization			1,240						2						131						18						1,391
Divestitures			(4)						—						—						(3)						(7)
Exchange Rate Movements and Other			14						—						39						(1)						52
As at March 31, 2026			26,458						145						3,004						1,517						31,124
CARRYING VALUE
As at December 31, 2025			40,359						132						4,313						456						45,260
As at March 31, 2026			40,214						130						4,301						452						45,097

(1)Includes assets within the commercial fuels business, office furniture, fixtures, leasehold improvements, information technology and aircraft.

11. LEASES

A) Right-of-Use Assets, Net

			Real Estate						Transportation and Storage Assets (1)						Refining Assets						Other Assets (2)						Total
COST
As at December 31, 2025			611						2,635						148						122						3,516
Additions			—						12						—						2						14
Modifications			1						5						—						—						6
Exchange Rate Movements and Other			(2)						23						4						—						25
As at March 31, 2026			610						2,675						152						124						3,561
ACCUMULATED DEPRECIATION
As at December 31, 2025			223						977						92						71						1,363
Depreciation			9						63						2						6						80
Exchange Rate Movements and Other			1						7						2						3						13
As at March 31, 2026			233						1,047						96						80						1,456
CARRYING VALUE
As at December 31, 2025			388						1,658						56						51						2,153
As at March 31, 2026			377						1,628						56						44						2,105

(1)Includes a pipeline, storage tanks, terminals, railcars, vessels, a natural gas processing plant and caverns.

(2)Includes assets in the commercial fuels business, fleet vehicles, camps and other equipment.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			14

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

B) Lease Liabilities

			Total
As at December 31, 2025			3,175
Additions			13
Interest Expense (Note 5)			46
Lease Payments			(136)
Modifications			6
Exchange Rate Movements and Other			15
As at March 31, 2026			3,119
Less: Current Portion			374
Long-Term Portion			2,745

12. DEBT AND CAPITAL STRUCTURE

A) Short-Term Borrowings

As at March 31, 2026, the Company had uncommitted demand facilities of $1.5 billion (December 31, 2025 – $1.5 billion) in place, of which $1.4 billion may be drawn for general purposes, or the full amount may be available to issue letters of credit. As at March 31, 2026, there were outstanding letters of credit aggregating to $372 million (December 31, 2025 – $341 million) and no direct borrowings (December 31, 2025 – $nil).

B) Long-Term Debt

												March 31,						December 31,
As at												2026						2025
Committed Credit Facility												—						—
Term Loan Facility												2,200						2,700
U.S. Dollar Denominated Senior Unsecured Notes (1)												5,988						5,887
Canadian Dollar Senior Unsecured Notes												2,450						2,450
Total Debt Principal												10,638						11,037
Debt Premiums (Discounts), Net, and Transaction Costs												(5)						(5)
Long-Term Debt												10,633						11,032
Less: Current Portion												—						—
Long-Term Portion												10,633						11,032

(1)Total U.S. dollar denominated unsecured notes as at March 31, 2026, was US$4.3 billion (December 31, 2025 — US$4.3 billion).

As at March 31, 2026, the Company had in place a committed credit facility that consists of a $3.3 billion tranche maturing on September 19, 2029, and a $2.2 billion tranche maturing on September 19, 2028. As at March 31, 2026, no amount was drawn on the credit facility (December 31, 2025 – $nil).

As at March 31, 2026, the Company had in place a $2.2 billion term loan facility maturing on February 28, 2029. In the three months ended March 31, 2026, the Company repaid $500 million under the term loan facility. Subsequent to March 31, 2026, the Company repaid an additional $700 million under the term loan facility.

The committed credit facility and term loan facility may include Canadian Overnight Repo Rate Average loans, Secured Overnight Financing Rate loans, prime rate loans and U.S. Base Rate loans.

As at March 31, 2026, the Company was in compliance with all of the terms of its debt agreements. Under the terms of Cenovus’s committed credit facility and term loan facility, the Company is required to maintain a total debt to capitalization ratio, as defined in the agreements, not to exceed 65 percent. The Company is below this limit.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			15

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

C) Capital Structure

Cenovus’s capital structure consists of shareholders’ equity and Net Debt. Net Debt includes the Company’s short-term borrowings, and the current and long-term portions of long-term debt, net of cash and cash equivalents, and short-term investments. Net Debt is used in managing the Company’s capital structure. The Company’s objectives when managing its capital structure are to maintain financial flexibility, preserve access to capital markets, ensure its ability to finance internally generated growth and to fund potential acquisitions, while maintaining the ability to meet the Company’s financial obligations as they come due. To ensure financial resilience, Cenovus may, among other actions, adjust capital and operating spending, steward working capital, draw down on its credit facilities or repay existing debt, adjust dividends paid to shareholders, purchase the Company’s common shares for cancellation, issue new debt, or issue new shares.

Cenovus monitors its capital structure and financing requirements using, among other things, Total Debt, Net Debt to adjusted earnings before interest, taxes and depreciation, depletion and amortization (“Adjusted EBITDA”), Net Debt to Adjusted Funds Flow and Net Debt to Capitalization. These measures are used to steward Cenovus’s overall debt position as measures of Cenovus’s overall financial strength.

Cenovus targets a Net Debt to Adjusted EBITDA ratio and a Net Debt to Adjusted Funds Flow ratio of approximately 1.0 times and Net Debt at or below $4.0 billion over the long-term at a West Texas Intermediate (“WTI”) price of US$45.00 per barrel. These measures may fluctuate periodically outside this range due to factors such as persistently high or low commodity prices or the strengthening or weakening of the Canadian dollar relative to the U.S. dollar.

Net Debt to Adjusted EBITDA

			March 31,						December 31,
As at			2026						2025
Current Portion of Long-Term Debt			—						—
Long-Term Portion of Long-Term Debt			10,633						11,032
Total Debt			10,633						11,032
Less: Cash and Cash Equivalents			(2,575)						(2,740)
Net Debt			8,058						8,292
Net Earnings (Loss)			4,641						3,930
Add (Deduct):
Finance Costs, Net			627						569
Income Tax Expense (Recovery)			790						547
Depreciation, Depletion and Amortization			5,349						5,192
Exploration and Evaluation Asset Write-downs			30						25
(Income) Loss From Equity-Accounted Affiliates			(75)						(53)
Unrealized (Gain) Loss on Risk Management			(39)						(15)
Foreign Exchange (Gain) Loss, Net			(182)						(361)
(Gain) Loss on Divestiture of Assets			(173)						(87)
Other (Income) Loss, Net			(147)						(115)
Adjusted EBITDA (1)			10,821						9,632
Net Debt to Adjusted EBITDA (times)			0.7						0.9

(1)Calculated on a trailing twelve-month basis.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			16

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

Net Debt to Adjusted Funds Flow

			March 31,						December 31,
As at			2026						2025
Net Debt			8,058						8,292
Cash From (Used in) Operating Activities			9,094						8,228
(Add) Deduct:
Settlement of Decommissioning Liabilities			(297)						(280)
Net Change in Non-Cash Working Capital			(645)						(363)
Adjusted Funds Flow (1)			10,036						8,871
Net Debt to Adjusted Funds Flow (times)			0.8						0.9

(1)Calculated on a trailing twelve-month basis.

Net Debt to Capitalization

			March 31,						December 31,
As at			2026						2025
Net Debt			8,058						8,292
Shareholders’ Equity			32,517						31,622
Capitalization			40,575						39,914
Net Debt to Capitalization (percent)			20						21

13. DECOMMISSIONING LIABILITIES

			Total
As at December 31, 2025			4,872
Liabilities Incurred			8
Liabilities Settled			(53)
Unwinding of Discount on Decommissioning Liabilities (Note 5)			64
Exchange Rate Movements			10
As at March 31, 2026			4,901

As at March 31, 2026, the undiscounted amount of estimated future cash flows required to settle the obligation was discounted using a credit-adjusted risk-free rate of 5.5 percent (December 31, 2025 – 5.5 percent) and assumes an inflation rate of two percent (December 31, 2025 – two percent).

14. OTHER LIABILITIES

			March 31,						December 31,
As at			2026						2025
Renewable Volume Obligation, Net (1)			282						235
Pension and Other Post-Employment Benefit Plan			259						260
Employee Long-Term Incentives			155						169
Provisions for Onerous and Unfavourable Contracts			76						83
Other			170						142
			942						889

(1)The gross amounts of the renewable volume obligation and renewable identification numbers (“RINs”) asset were $1.1 billion and $837 million, respectively (December 31, 2025 – $853 million and $618 million, respectively).

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			17

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

15. SHARE CAPITAL AND WARRANTS

A) Authorized

Cenovus is authorized to issue an unlimited number of common shares, and first and second preferred shares not exceeding, in aggregate, 20 percent of the number of issued and outstanding common shares. The first and second preferred shares may be issued in one or more series with rights and conditions to be determined by the Board of Directors prior to issuance and subject to the Company’s articles.

B) Issued and Outstanding – Common Shares

			March 31, 2026												December 31, 2025
			Number of Common Shares (thousands)						Amount						Number of Common Shares (thousands)						Amount
Outstanding, Beginning of Year			1,883,400						18,599						1,825,038						15,659
Issued Under the MEG Acquisition, Net of Issuance Costs (Note 4)			—						—						143,935						3,667
Issued Upon Exercise of Warrants			536						5						2,471						24
Issued Under Stock Option Plans			2,599						54						1,394						20
Purchase of Common Shares Under NCIB			(11,534)						(114)						(89,438)						(771)
Outstanding, End of Period			1,875,001						18,544						1,883,400						18,599

As at March 31, 2026, there were 22.2 million common shares available for future issuance under the stock option plan.

C) Normal Course Issuer Bid

On November 7, 2025, the Company received approval from the TSX to renew the Company’s NCIB program to purchase up to 120.3 million common shares during the period from November 11, 2025, to November 10, 2026.

For the three months ended March 31, 2026, the Company purchased and cancelled 11.5 million common shares through the NCIB. The common shares were purchased at a volume weighted average price of $30.35 per common share for a total of $350 million. Retained earnings was reduced by $242 million, of which $236 million represents the excess of the purchase price of the common shares over their average carrying value and $6 million relates to share buyback tax.

From April 1, 2026, to May 1, 2026, the Company purchased an additional 7.3 million common shares for $264 million. As at May 1, 2026, the Company can further purchase up to 94.1 million common shares under the NCIB.

D) Treasury Shares

Cenovus has an employee benefit plan trust (the “Trust”). The Trust, through an independent trustee, acquires Cenovus’s common shares on the open market, which are held to satisfy the Company’s obligations under certain stock-based compensation plans.

			March 31, 2026												December 31, 2025
			Number of Common Shares (thousands)						Amount						Number of Common Shares (thousands)						Amount
Outstanding, Beginning of Year			5,258						116						2,000						43
Purchased Under Employee Benefit Plan			1,800						51						7,100						155
Distributed Under Employee Benefit Plan			(3,559)						(80)						(3,842)						(82)
Outstanding, End of Period			3,499						87						5,258						116

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			18

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

E) Issued and Outstanding – Preferred Shares

			March 31, 2026												December 31, 2025
			Number of Preferred Shares (thousands)						Amount						Number of          Preferred               Shares (thousands)						Amount
Outstanding, Beginning of Year			12,000						113						26,000						356
Preferred Shares Redeemed			(12,000)						(113)						(14,000)						(243)
Outstanding, End of Period			—						—						12,000						113

On March 31, 2026, Cenovus exercised its right to redeem all 10.7 million of the Company’s series 1 preferred shares, and all 1.3 million of the Company’s series 2 preferred shares. The preferred shares were redeemed at a price of $25.00 per share, for a total of $300 million. Retained earnings was reduced by $187 million, representing the excess of the purchase price of the preferred shares over their carrying value.

F) Issued and Outstanding – Warrants

			March 31, 2026												December 31, 2025
			Number of Warrants (thousands)						Amount						Number of Warrants (thousands)						Amount
Outstanding, Beginning of Year			1,172						4						3,643						12
Exercised			(536)						(2)						(2,471)						(8)
Expired			(636)						(2)						—						—
Outstanding, End of Period			—						—						1,172						4

The exercise price of the warrants was $6.54 per share. The warrants expired on January 1, 2026.

16. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

			Pension and Other Post-Employment Benefits						Private Equity Investments						Foreign Currency Translation Adjustment						Total
As at December 31, 2024			69						156						2,088						2,313
Other Comprehensive Income (Loss), Before Tax			3						(2)						(10)						(9)
Income Tax (Expense) Recovery			(1)						—						—						(1)
As at March 31, 2025			71						154						2,078						2,303
As at December 31, 2025			86						131						184						401
Other Comprehensive Income (Loss), Before Tax			5						1						244						250
Income Tax (Expense) Recovery			(1)						—						—						(1)
As at March 31, 2026			90						132						428						650

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			19

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

17. STOCK-BASED COMPENSATION PLANS

Cenovus has a number of stock-based compensation plans that include net settlement rights (“NSRs”), performance share units (“PSUs”), restricted share units (“RSUs”) and deferred share units.

The following tables summarize information related to the Company’s stock-based compensation plans:

			Units Outstanding						Units Exercisable
As at March 31, 2026			(thousands)						(thousands)
Stock Options With Associated Net Settlement Rights			10,948						4,414
Performance Share Units			7,810						—
Restricted Share Units			11,256						—
Deferred Share Units			2,080						2,080

The weighted average exercise price of NSRs outstanding as at March 31, 2026, was $22.73.

			Units Granted						Units Vested and Exercised/ Paid Out
For the three months ended March 31, 2026			(thousands)						(thousands)
Stock Options With Associated Net Settlement Rights			2,685						2,599
Performance Share Units			2,368						1,982
Restricted Share Units			2,561						3,035
Deferred Share Units			356						122

			Weighted Average Exercise Price						Units Exercised
For the three months ended March 31, 2026			($/unit)						(thousands)
Stock Options With Associated Net Settlement Rights Exercised for Net Cash Payment			17.51						2,344
Stock Options With Associated Net Settlement Rights Exercised and Net Settled for Common Shares (1)			11.53						255

(1)NSRs were net settled for 255 thousand common shares.

The following table summarizes the stock-based compensation expense (recovery) recorded for all plans:

For the three months ended March 31,															2026						2025
Stock Options With Associated Net Settlement Rights															4						3
Cenovus Replacement Stock Options															—						(2)
Performance Share Units															98						10
Restricted Share Units															113						14
Deferred Share Units															37						1
Stock-Based Compensation Expense (Recovery)															252						26

PSUs and RSUs granted under the Performance Share Unit Plan and Restricted Share Unit Plan for Local Employees in the Asia Pacific region may only be settled in cash.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			20

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

18. RELATED PARTY TRANSACTIONS

Husky Midstream Limited Partnership

The Company jointly owns and is the operator of HMLP and applies the equity method of accounting. The Company charges HMLP for construction and management services, and incurs costs for the use of HMLP’s pipeline systems, as well as transportation and storage services. Access fees and transportation and storage services are based on contractually agreed rates with HMLP.

The following table summarizes revenues and associated expenses related to HMLP:

For the three months ended March 31,															2026						2025
Revenues from Construction and Management Services															33						29
Transportation Expenses															65						68

19. FINANCIAL INSTRUMENTS

Cenovus’s financial assets and financial liabilities consist of cash and cash equivalents, accounts receivable and accrued revenues, restricted cash, risk management assets and liabilities, accounts payable and accrued liabilities, lease liabilities, long-term debt, certain portions of other assets and certain portions of other liabilities. Risk management assets and liabilities arise from the use of derivative financial instruments.

A) Fair Value of Non-Derivative Financial Instruments

The fair values of cash and cash equivalents, accounts receivable and accrued revenues, and accounts payable and accrued liabilities approximate their carrying amount due to the short-term maturity of these instruments.

The fair values of restricted cash, certain portions of other assets and certain portions of other liabilities approximate their carrying amount due to the specific non-tradeable nature of these instruments.

Long-term debt is carried at amortized cost. The estimated fair value of long-term debt was determined based on period-end trading prices of long-term debt on the secondary market (Level 2). As at March 31, 2026, the carrying value of Cenovus’s long-term debt was $10.6 billion and the fair value was $10.2 billion (December 31, 2025, carrying value – $11.0 billion; fair value – $10.6 billion).

The Company classifies certain private equity investments as FVOCI as they are not held for trading and fair value changes are not reflective of the Company’s operations. These assets are carried at fair value in other assets. Fair value is determined based on recent market activity which may include equity transactions of the entity when available (Level 3).    

The following table provides a reconciliation of changes in the fair value of private equity investments held and classified as FVOCI during the period:

			Total
As at December 31, 2025			193
Acquisitions			1
Changes in Fair Value			1
As at March 31, 2026			195

B) Fair Value of Risk Management Assets and Liabilities

Risk management assets and liabilities are carried at fair value in accounts receivable and accrued revenues, accounts payable and accrued liabilities (for short-term positions), and other assets and other liabilities (for long-term positions). Changes in fair value are recorded in (gain) loss on risk management.

The Company’s risk management assets and liabilities consist of condensate and refined product futures; crude oil and natural gas futures and swaps; and renewable power, power and foreign exchange contracts. The Company may also enter into forwards and options to manage commodity, foreign exchange and interest rate exposures.

Crude oil, natural gas, condensate, refined products and power contracts are recorded at their estimated fair value based on the difference between the contracted price and the period-end forward price for the same commodity, using quoted market prices or the period-end forward price for the same commodity, extrapolated to the end of the term of the contract (Level 2). The fair value of foreign exchange rate contracts is calculated using external valuation models that incorporate observable market data and foreign exchange forward curves (Level 2).

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			21

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

The fair value of renewable power contracts is calculated using internal valuation models that incorporate broker pricing for relevant markets, some observable market prices and extrapolated market prices with inflation assumptions (Level 3). The fair value of renewable power contracts are calculated by Cenovus’s internal valuation team, which consists of individuals who are knowledgeable and have experience in fair value techniques.

Summary of Risk Management Positions

			March 31, 2026																		December 31, 2025
			Risk Management																		Risk Management
As at			Asset						Liability						Net						Asset						Liability						Net
Crude Oil, Condensate, Natural Gas and Refined Products			437						385						52						27						30						(3)
Power Contracts			3						—						3						2						—						2
Renewable Power Contracts			—						41						(41)						17						6						11
Foreign Exchange Rate Contracts			—						2						(2)						—						—						—
			440						428						12						46						36						10

The following table presents the Company’s fair value hierarchy for risk management assets and liabilities carried at fair value:

			March 31,						December 31,
As at			2026						2025
Level 2 – Prices Sourced From Observable Data or Market Corroboration			53						(1)
Level 3 – Prices Sourced From Partially Unobservable Data			(41)						11
			12						10

The following table provides a reconciliation of changes in the fair value of Cenovus’s risk management assets and liabilities:

			Total
As at December 31, 2025			10
Change in Fair Value of Contracts in Place, Beginning of Year			(21)
Change in Fair Value of Contracts Entered Into During the Period			13
Fair Value of Contracts Realized During the Period			10
As at March 31, 2026			12

C) Earnings Impact of (Gains) Losses From Risk Management Positions

For the three months ended March 31,															2026						2025
Realized (Gain) Loss															10						(8)
Unrealized (Gain) Loss															(1)						23
(Gain) Loss on Risk Management															9						15

Realized and unrealized gains and losses on risk management are recorded in the reportable segment to which the derivative instrument relates.

20. RISK MANAGEMENT

Cenovus is exposed to financial risks, including market risk related to commodity prices, foreign exchange rates, interest rates and commodity power prices, as well as credit risk and liquidity risk.

As at March 31, 2026, the fair value of risk management positions was a net asset of $12 million. As at March 31, 2026, there were foreign exchange contracts with a notional value of US$235 million and no interest rate contracts outstanding. As at December 31, 2025, there were no foreign exchange contracts or interest rate contracts outstanding.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			22

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

Net Fair Value of Risk Management Positions

As at March 31, 2026

Notional Volumes (1) (2)

Terms

Weighted Average Price (2)

Fair Value Asset (Liability)

WTI Contracts Related to Blending (3)

WTI Fixed – Sell

9.7 MMbbls

April 2026 - June 2027

US$63.57/bbl

(351)

WTI Fixed – Buy

0.8 MMbbls

April 2026 - December 2027

US$73.96/bbl

3

Power Contracts

3

Renewable Power Contracts

(41)

Other Financial Positions (4)

400

Foreign Exchange Rate Contracts

(2)

Total Fair Value

12

(1)    Million barrels (“MMbbls”).

(2)    Notional volumes and weighted average price are based on multiple contracts of varying amounts and terms over the respective time period; therefore, the notional volumes and weighted average price may fluctuate from month to month.

(3)    WTI futures contracts are used to help manage price exposure to condensate used for blending. Includes individual WTI contracts with varying terms, the longest of which is 21 months.

(4)    Includes risk management positions related to Western Canadian Select at Hardisty (“WCS”), heavy oil, light oil and condensate differentials, benchmark delivery location spreads, Belvieu and heating oil fixed price contracts, natural gas basis and fixed price contracts, and reformulated blendstock for oxygenate blending gasoline contracts.

A) Commodity Price and Foreign Exchange Rate Risk

Sensitivities

The following table summarizes the sensitivity of the fair value of Cenovus’s risk management positions to independent fluctuations in commodity prices and foreign exchange rates, with all other variables held constant. Management believes the fluctuations identified in the table below are a reasonable measure of volatility.

The impact of fluctuating commodity prices and foreign exchange rates on the Company’s open risk management positions could have resulted in an unrealized gain (loss) impacting earnings before income tax as follows:

As at March 31, 2026			Sensitivity Range			Increase						Decrease
Crude Oil and Condensate Commodity Price			± US$30.00/bbl Applied to WTI, Condensate and Related Hedges			—						—
Crude Oil and Condensate Differential Price (1)			± US$2.50/bbl Applied to Differential Hedges Tied to Production			5						(5)
WCS (Hardisty) Differential Price			± US$2.50/bbl Applied to WCS Differential Hedges Tied to Production			(5)						5
Refined Products Commodity Price			± US$30.00/bbl Applied to Heating Oil and Gasoline Hedges			(17)						17
Natural Gas Commodity Price			± US$0.50/Mcf (2) Applied to Natural Gas Hedges			—						—
Natural Gas Basis Price			± US$0.50/Mcf Applied to Natural Gas Basis Hedges			(3)						3
Power Commodity Price			± C$10.00/MWh (3) Applied to Power Hedges			38						(38)
U.S. to Canadian Dollar Exchange Rate			± $0.05 in the U.S. to Canadian Dollar Exchange Rate			21						(24)

(1)Excluding WCS at Hardisty.

(2)One thousand cubic feet (“Mcf”).

(3)One thousand kilowatts of electricity per hour (“MWh”).

B) Credit Risk

Credit risk arises from the potential that the Company may incur a financial loss if a counterparty to a financial instrument fails to meet its financial or performance obligations in accordance with agreed terms. Cenovus assesses the credit risk of new counterparties and continues risk-based monitoring of all counterparties on an ongoing basis. A substantial portion of Cenovus’s accounts receivable are with customers in the oil and gas industry and are subject to normal industry credit risks.

As at March 31, 2026, approximately 82 percent (December 31, 2025 – 81 percent) of the Company’s accounts receivable and accrued revenues were with investment grade counterparties, and 99 percent of the Company’s accounts receivable were outstanding for less than 60 days. The associated average expected credit loss on these accounts was 0.3 percent as at March 31, 2026 (December 31, 2025 – 0.3 percent).

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			23

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

C) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet all of its financial obligations as they become due. Liquidity risk also includes the risk of not being able to liquidate assets in a timely manner at a reasonable price.

As disclosed in Note 12, over the long term, Cenovus targets a Net Debt to Adjusted EBITDA ratio and a Net Debt to Adjusted Funds Flow ratio of approximately 1.0 times at a WTI price of US$45.00 per barrel to manage the Company’s overall debt position.

Undiscounted cash outflows relating to financial liabilities are:

As at March 31, 2026			Less than 1 Year						Years 2 and 3						Years 4 and 5						Thereafter						Total
Accounts Payable and Accrued Liabilities			6,691						—						—						—						6,691
Long-Term Debt (1)			475						4,349						1,627						9,072						15,523
Lease Liabilities (1)			521						906						671						2,653						4,751

(1)Principal and interest, including current portion, if applicable.

21. SUPPLEMENTARY CASH FLOW INFORMATION

A) Working Capital

			March 31,						December 31,
As at			2026						2025
Total Current Assets			11,477						9,890
Total Current Liabilities			7,330						6,314
Working Capital			4,147						3,576

B) Changes in Non-Cash Working Capital

For the three months ended March 31,															2026						2025
Accounts Receivable and Accrued Revenues															(1,188)						(95)
Income Tax Receivable															323						(78)
Inventories															(754)						160
Accounts Payable and Accrued Liabilities															308						(541)
Income Tax Payable															167						(330)
Total Change in Non-Cash Working Capital															(1,144)						(884)
Net Change in Non-Cash Working Capital – Operating Activities															(1,143)						(861)
Net Change in Non-Cash Working Capital – Investing Activities															(1)						(23)
Total Change in Non-Cash Working Capital															(1,144)						(884)

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			24

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

C) Reconciliation of Liabilities

The following table provides a reconciliation of liabilities to cash flows arising from financing activities:

			Dividends Payable																		Repurchase Agreements Payable												Short-Term Borrowings						Long-Term Debt						Lease Liabilities
As at December 31, 2024			—																		—												173						7,534						2,927
Acquisition			—																		—												—						12						—
Changes From Financing Cash Flows:
Net Issuance (Repayment) of Short-Term Borrowings			—																		—												150						—						—
Proceeds on Repurchase Agreements			—																		300												—						—						—
Repayment of Long-Term Debt			—																		—												—						(12)						—
Principal Repayment of Leases			—																		—												—						—						(83)
Dividends Paid			(333)																		—												—						—						—
Non-Cash Changes:
Finance and Transaction Costs			—																		—												—						(5)						—
Lease Additions			—																		—												—						—						22
Base Dividends Declared on Common Shares			327																		—												—						—						—
Dividends Declared on Preferred Shares			6																		—												—						—						—
Exchange Rate Movements and Other			—																		—												—						(5)						59
As at March 31, 2025			—																		300												323						7,524						2,925
As at December 31, 2025			—																		401												—						11,032						3,175
Changes From Financing Cash Flows:
Repayment of Long-Term Debt			—																		—												—						(500)						—
Principal Repayment of Leases			—																		—												—						—						(90)
Proceeds on Repurchase Agreements (1)			—																		723												—						—						—
Repayment of Repurchase Agreements (1)			—																		(429)												—						—						—
Dividends Paid			(379)																		—												—						—						—
Non-Cash Changes:
Finance and Transaction Costs			—																		—												—						2						—
Lease Additions			—																		—												—						—						13
Lease Modifications			—																		—												—						—						6
Base Dividends Declared on Common Shares			377																		—												—						—						—
Dividends Declared on Preferred Shares			2																		—												—						—						—
Exchange Rate Movements and Other			—																		17												—						99						15
As at March 31, 2026			—																		712												—						10,633						3,119

(1)Includes proceeds and repayments of $464 million and $269 million, respectively, that primarily relate to RINs.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			25

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All amounts in $ millions, unless otherwise indicated

For the period ended March 31, 2026

22. COMMITMENTS AND CONTINGENCIES

A) Commitments

Cenovus has entered into various commitments in the normal course of operations. Commitments that have original maturities less than one year are excluded from the table below. Future payments for the Company’s commitments are below:

As at March 31, 2026			Remainder of Year						2 Years						3 Years						4 Years						5 Years						Thereafter						Total
Transportation and Storage (1) (2)			1,976						2,658						2,835						2,853						2,578						23,783						36,683
Real Estate			48						64						66						70						70						474						792
Obligation to Fund HCML			76						95						55						43						42						59						370
Other Long-Term Commitments			472						188						153						123						118						489						1,543
Total Commitments			2,572						3,005						3,109						3,089						2,808						24,805						39,388

(1)Includes transportation commitments that are subject to regulatory approval or were approved but are not yet in service of $7.8 billion. Terms are up to 15 years on commencement.

(2)As at March 31, 2026, includes $1.8 billion related to transportation and storage commitments with HMLP.

There were outstanding letters of credit aggregating to $372 million (December 31, 2025 – $341 million) issued as security for financial and performance conditions under certain contracts.

B) Contingencies

Legal Proceedings

Cenovus is involved in a limited number of legal claims associated with the normal course of operations. Cenovus believes that any liabilities that might arise from such matters, to the extent not provided for, are not likely to have a material effect on its interim Consolidated Financial Statements.

Income Tax Matters

The tax regulations and legislation and interpretations thereof in the various jurisdictions in which Cenovus operates are continually changing. As a result, there are usually a number of tax matters under review. Management believes that the provision for taxes is adequate.

Cenovus Energy Inc. – Q1 2026 Interim Consolidated Financial Statements			26