Canadian Natural Resources Ltd. CNQ reported first-quarter 2015 loss of 23 Canadian cents (approximately 3 U.S. cents) per share against the Zacks Consensus Estimate of earnings of 4 U.S. cents and the year-ago quarter’s profit of 57 Canadian cents. A significant fall in oil price hurt the results. The loss was, however, partially offset by record production.

This independent exploration and production company reported quarterly revenues of C$3,034 million (US$2,680 million), lower than the year-ago figure of C$4,396 million. The reported figure also lagged the Zacks Consensus Estimate of US$3,650 million.  

Canadian Natural’s first-quarter cash flow from operations – a key metric to gauge its capability to fund new projects and drilling – amounted to C$1,370 million, below the first-quarter 2014 level of C$2,146 million.    

Production

Canadian Natural reported quarterly production of 898,053 barrels of oil equivalent per day (BOE/d), 31.2% higher than 684,647 BOE/d in the prior-year quarter.    

Natural gas production increased to 1,771 million cubic feet per day (MMcf/d) from 1,175 MMcf/d in the first quarter of 2014. Oil and natural gas liquids (NGLs) production increased to 602,809 barrels per day (Bbl/d) from 488,788 Bbl/d in the year-ago quarter.     

Realized Prices

On a reported basis, the average realized liquid price (before hedging) during the first quarter was C$37.03 per barrel, down 53.5% from the corresponding quarter last year. Moreover, the average realized natural gas price (excluding hedging) during the three months ended Mar 31, 2015 was C$3.38 per thousand cubic feet (Mcf), down considerably from the year-ago level of C$5.69 per Mcf.  

Total Expenses

Total expenses came in at C$3,673 million, 5.2% higher than C$3,491 million in the year-earlier quarter.  

Capital Expenditure & Balance Sheet

Canadian Natural's total capital spending during the reported quarter was C$1,412 million against C$1,893 million in the year-ago quarter.  

As of Mar 31, 2015, Canada’s second-largest natural gas producer had C$34 million cash and cash equivalents and long-term debt (including current portion) of C$15,689 million, representing a debt-to-capitalization ratio of approximately 35.6%.  

Guidance

The company anticipates capital expenditure of C$5.75 billion in 2015, less than the previous guidance of C$6.04 billion.

Canadian Natural expects second-quarter liquid production of 513,000–540,000 Bbl/d and natural gas production in the 1,750–1,770 MMcf/d range. Canadian Natural reaffirmed its 2015 liquid production range of 562,000–602,000 Bbl/d. The company still expects natural gas production to average between 1,730 MMcf/d and 1,770 MMcf/d.

Zacks Rank

Canadian Natural currently carries a Zacks Rank #3 (Hold).

Some better-ranked players in the energy sector are Energy Transfer Equity, L.P. ETE, Sprague Resources LP SRLP and Independence Contract Drilling Inc. ICD. All these stocks sport a Zacks Rank #1 (Strong Buy).