Cenovus Energy Inc. is rewarding patient shareholders as surging cash flow puts the oil and gas producer on track to hit its debt target.

In a release early Wednesday, Cenovus announced it will double its quarterly dividend to 3.5 cents per share as of the fourth quarter, and said its board also approved a plan to repurchase up to 10 per cent of its common shares.

It’s equipped to do so after higher oil prices and a 71 per cent year-over-year increase in production helped push the company’s cash from operating activities to $2.14 billion, up 192 per cent from a year earlier when $732 million was generated.

In the release, Cenovus said it’s poised to achieve its target of sub-$10 billion in net debt “imminently.”

“Our free funds flow capacity will support swiftly advancing toward our longer-term net debt target of less than $8 billion, while balancing growth in shareholder returns,” said Cenovus President and Chief Executive Officer Alex Pourbaix in a release…read more.