| Canadian Natural Cuts Q2 Production View, '15 Outlook Stays - Analyst Blog | |
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Independent exploration and production company Canadian Natural Resources Ltd. CNQ announced its decision to cut second-quarter 2015 production guidance in a recent conference call. This is because the company is apprehensive of production being affected by the wildfires in Alberta that resulted in refinery shut-downs.
The company expects second-quarter production to be lowered by approximately 7,500 barrels per day (bbl/d). This is primarily owing to the temporary shutdown of its Primrose operations and Kirby South oil sales pipeline. However, the company’s annual production guidance remains unchanged at 126,000¬–140,000 bbl/d.
The company also added that its 125,000 bbl/d Horizon oil sands project resumed operations after completion of planned turnaround activities that was extended by five days. Canadian Natural expects production from this division to remain toward the lower end of its second-quarter guidance. However, the company expects strong growth ahead with the annual guidance remaining same at 21,000–131,000 bbl/d.
The Calgary, Alberta-based company has a broad portfolio of low-risk exploration and development projects that yield long-term volume growth at above-average rates. The company’s financial strength is indicated by its consistent dividend payments and share repurchase programs. Canadian Natural is the only Canadian upstream firm to raise its dividend for 15 consecutive years.
However, Canadian Natural being an upstream energy firm has been exposed to the persistent weakness in crude prices, which has put pressure on its cash flow, revenues and earnings. Also, the company has been able to extract less value for its products and hence, made lower profits.
Canadian Natural currently carries a Zacks Rank #3 (Hold).
Better-ranked players from the broader energy sector include EQT Midstream Partners, LP EQM, CNOOC Ltd. CEO and Holly Energy Partners L.P HEP. All these stocks sport a Zacks Rank #1 (Strong Buy).
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Canadian Natural Resources Ltd
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PRODUCER |
CODE : CNQ.TO |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Canadian Natural is a producing company based in Canada. Canadian Natural produces oil in Canada, and holds various exploration projects in Canada. Its main asset in production is HORIZON PROJECT in Canada. Canadian Natural is listed in Canada and in United States of America. Its market capitalisation is CA$ 117.0 billions as of today (US$ 85.4 billions, € 79.8 billions). Its stock quote reached its lowest recent point on March 20, 2020 at CA$ 10.50, and its highest recent level on April 24, 2024 at CA$ 105.17. Canadian Natural has 1 112 579 968 shares outstanding. |