As at December 31,	Notes	2018			2017
Revolving Term Debt ⁽¹⁾	A		-		-
U.S. Dollar Denominated Unsecured Notes	B		9,241			9,597
Total Debt Principal			9,241			9,597
Debt Discounts and Transaction Costs			(77	)		(84	)
Long-Term Debt			9,164			9,513
Less: Current Portion			682			-
Long-Term Portion			8,482			9,513

(1)	Revolving term debt may include Bankers’ Acceptances, London Interbank Offered Rate (“LIBOR”) based loans, prime rate loans and U.S. base rate loans.

The weighted average interest rate on outstanding debt for the year ended December 31, 2018 was 5.1 percent (2017 – 4.9 percent).

Cenovus has in place a committed credit facility that consists of a $1.2 billion tranche and a $3.3 billion tranche. On October 17, 2018, the Company extended the maturity date of the $1.2 billion tranche from November 30, 2020 to November 30, 2021 and the maturity date of the $3.3 billion tranche from November 30, 2021 to November 30, 2022. Borrowings are available by way of Bankers’ Acceptances, LIBOR based loans, prime rate loans or U.S. base rate loans. As at December 31, 2018, there were no amounts drawn on Cenovus’s committed credit facility (2017 – $nil).

	2018				2017
As at December 31,	US$ Principal Amount		Total C$ Equivalent		US$ Principal Amount		Total C$ Equivalent
5.70% due October 15, 2019		500		682		1,300		1,631
3.00% due August 15, 2022		500		682		500		627
3.80% due September 15, 2023		450		614		450		565
4.25% due April 15, 2027		1,171		1,597		1,200		1,505
5.25% due June 15, 2037		700		955		700		878
6.75% due November 15, 2039		1,400		1,910		1,400		1,756
4.45% due September 15, 2042		744		1,015		750		941
5.20% due September 15, 2043		350		477		350		439
5.40% due June 15, 2047		959		1,309		1,000		1,255
		6,774		9,241		7,650		9,597

On October 29, 2018, the Company redeemed US$800 million of its US$1,300 million unsecured notes due October 15, 2019. A redemption premium of US$20 million and associated unamortized discount and debt issue costs of $1 million were recognized in 2018.

In December 2018, the Company paid US$69 million to repurchase a portion of its unsecured notes with a principal amount of US$76 million. A gain on the repurchase of $9 million was recorded in finance costs. Subsequent to December 31, 2018, the Company repurchased a further US$324 million of its unsecured notes for cash of US$300 million (see Note 37).

In connection with the Acquisition, the Company completed an offering in the U.S. on April 7, 2017 for US$2.9 billion of senior unsecured notes issued in three tranches, US$1.2 billion 4.25 percent senior unsecured notes due April 2027, US$700 million 5.25 percent senior unsecured notes due June 2037, and US$1.0 billion 5.40 percent senior unsecured notes due June 2047 (collectively, the “2017 Notes”). In the fourth quarter of 2017, the Company completed an exchange offer (“Exchange Offering”) whereby substantially all of the 2017 Notes were exchanged for notes registered under the Securities Act of 1933 with essentially the same terms and provisions as the 2017 Notes. The Exchange Offering has been treated as a modification for accounting purposes and not an extinguishment.

The Company has in place a base shelf prospectus that allows the Company to offer from time to time up to US$7.5 billion, or the equivalent in other currencies, of debt securities, common shares, preferred shares, subscription receipts, warrants, share purchase contracts and units in Canada, the U.S. and elsewhere where permitted by law. The base shelf prospectus is available to ConocoPhillips to offer, should they so choose from time to time, the common shares they acquired in connection with the Acquisition. The base shelf prospectus will expire in November 2019. As at December 31, 2018, US$4.6 billion remains available under the base shelf prospectus. Offerings under the base shelf prospectus are subject to market conditions.

As at December 31, 2018, the Company is in compliance with all of the terms of its debt agreements.

In connection with the Acquisition, Cenovus borrowed $3.6 billion under a committed asset sale bridge credit facility. Net proceeds from the sale of the Company’s Conventional segment assets (see Note 11) and cash on hand were used to repay and retire the committed asset bridge credit facility prior to December 31, 2017.

	US$ Principal Amount		Total C$ Equivalent
2019		500		682
2020		-		-
2021		-		-
2022		500		682
2023		450		614
Thereafter		5,324		7,263
		6,774		9,241

Cenovus’s capital structure objectives remain unchanged from previous periods. Cenovus’s capital structure consists of shareholders’ equity plus 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. Cenovus conducts its business and makes decisions consistent with that of an investment grade company. 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, draw down on its credit facility or repay existing debt, adjust dividends paid to shareholders, purchase shares for cancellation pursuant to normal course issuer bids, issue new debt, or issue new shares.

Cenovus monitors its capital structure and financing requirements using, among other things, non-GAAP financial metrics consisting of Net Debt to Adjusted Earnings Before Interest, Taxes and DD&A (“Adjusted EBITDA”) and Net Debt to Capitalization. These metrics are used to steward Cenovus’s overall debt position as measures of Cenovus’s overall financial strength.

Over the long term, Cenovus targets a Net Debt to Adjusted EBITDA ratio of less than 2.0 times. At different points within the economic cycle, Cenovus expects this ratio may periodically be above the target. Cenovus also manages its Net Debt to Capitalization ratio to ensure compliance with the associated covenant as defined in its committed credit facility agreement.

As at December 31,	2018			2017			2016
Current Portion of Long-Term Debt		682			-			-
Long-Term Debt		8,482			9,513			6,332
Less: Cash and Cash Equivalents		(781	)		(610	)		(3,720	)
Net Debt		8,383			8,903			2,612

Net Earnings (Loss)		(2,669	)		3,366			(545	)
Add (Deduct):
Finance Costs		628			725			492
Interest Income		(19	)		(62	)		(52	)
Income Tax Expense (Recovery)		(920	)		352			(382	)
DD&A		2,131			2,030			1,498
E&E Write-Down		2,123			890			2
Unrealized (Gain) Loss on Risk Management		(1,249	)		729			554
Foreign Exchange (Gain) Loss, Net		854			(812	)		(198	)
Revaluation (Gain)		-			(2,555	)		-
Re-measurement of Contingent Payment		50			(138	)		-
(Gain) Loss on Discontinuance		(301	)		(1,285	)		-
(Gain) Loss on Divestitures of Assets		795			1			6
Other (Income) Loss, Net		(12	)		(5	)		34
Adjusted EBITDA		1,411			3,236			1,409

Net Debt to Adjusted EBITDA	5.9x			2.8x			1.9x

Under the terms of Cenovus’s committed credit facility, the Company is required to maintain a debt to capitalization ratio, as defined in the agreement, not to exceed 65 percent. The Company is well below this limit.