UPDATE: Stifel Nicolaus Initiates Hold on Cenovus Energy

Stifel Nicolaus initiates its coverage on Cenovus Energy

with a Hold rating as SAGD expansions are expected to drive future growth. Stifel Nicolaus says, "Cenovus is expected to add 20 mbbl/d in 4Q12, another 20 mbbl/d in 4Q13, and another 22.5 mbbl/d in 2014 in net SAGD volumes on top of current corporate production of 243 mboe/d. ...Stand alone SAGD has a better capital efficiency and less cost overrun risks than mining and integrated projects, but carries higher differential risk. ...Two key positive potential catalysts are the results of the upcoming Telephone Lake strategic initiative (1Q12) and the timely start up of the next phase at Christina Lake (4Q12). We would not be counting on an easy event-driven trade for the JV, especially given current valuation." CVE closed at $34.36 per share on Tuesday.