We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Canadian Natural (CNQ) Q4 Earnings Beat on Liquids Strength
Read MoreHide Full Article
Oil and gas finder Canadian Natural Resources Limited (CNQ - Free Report) reported robust fourth-quarter results, buoyed by higher liquids prices and production.
Earnings per share – excluding one-time and non-cash items – came in at U.S.$444.9, blazing the Zacks Consensus Estimate of 32 U.S. cents and the fourth-quarter 2016 profit of 29 U.S. cents).
Revenues of C$5,010 million (U.S.$3,945 million) were up 44.9% from the year-ago period and ahead of our guidance of U.S.$3,563 million.
Canadian Natural’s fourth-quarter operational funds flow – a key metrics to gauge its capability to fund new projects and drilling – amounted to C$2,307 million, which was 37.6% higher than that achieved in the fourth quarter of 2016.
Production
Canadian Natural reported quarterly production of 1,020,094 barrels of oil equivalent per day (BOE/d), up from 859,577 BOE/d in the prior year quarter.
Oil and natural gas liquids (NGLs) output (accounting for 73% of total volumes) increased 27.2% to 744,100 barrels per day (Bbl/d). The production gains primarily reflect strong contribution and high reliability from the Horizon oil sands expansion projects, as well as a full quarter of production from the Athabasca Oil Sands Project.
Meanwhile, natural gas volumes remained essentially flat year over year at 1,656 million cubic feet per day (MMcf/d). This is in line with Canadian Natural’s tactical decision to maintain natural gas output.
Realized Prices
The average realized liquids price (before hedging) was C$53.42 per barrel during the fourth quarter, representing an increase of 18.7% from the corresponding period of the previous year. However, the average realized natural gas price (excluding hedging) during the three months ended Dec 31, 2017 was C$2.55 per thousand cubic feet (Mcf), down from the year-ago level of C$3.14 per Mcf.
Costs & Expenses
Total expenses incurred in the reported quarter amounted to C$4,408 million, reflecting an increase of 47.6% from the year-ago figure of C$2,987 million. The higher costs stemmed mainly from increased production expenses, which rose 50.6% to C$1,645 million in the quarter under review.
Capital Expenditure & Balance Sheet
Canadian Natural's total capital spending during the fourth quarter of 2017 was C$1,143 million compared with C$411 million in the year-ago period. The jump in spending reflects the company’s heavy crude drilling strategy.
As of Dec 31, 2017, the upstream player had cash and cash equivalents of C$137 million and long-term debt of approximately C$20,581 million, representing a debt-to-capitalization ratio of 39.4%.
Canadian Natural Resources Limited Price, Consensus and EPS Surprise
Management is guiding toward production of 821,000-869,000 Bbl/d of liquids and 1,600-1,650 MMcf/d of natural gas during the first quarter of 2018.
For 2018, Canadian Natural expects oil and NGLs production to be 815,000-885,000 Bbl/d, while natural gas volumes for the year are likely to be 1,650-1,710 MMcf/d. Capital spending for this year is budgeted at C$4,300 million, 13.5% below the 2017 spend of C$4,972 million.
Based in Midland, TX, Concho Resources is an independent oil and gas exploration and production company with producing properties mainly in the Permian Basin of southeast New Mexico and west Texas. It has a 100% track of outperforming estimates over the last four quarters at an average rate of 48.89%.
Irving, TX-based Pioneer Natural Resources Company is an independent oil and gas exploration and production company, the asset base of which is anchored by the Spraberry oil field located in West Texas, the Hugoton gas field in Southwest Kansas and the West Panhandle gas field in Texas Panhandle. The 2018 Zacks Consensus Estimate for this company is $5.75, representing some 166.2% earnings per share growth over 2017. Next year’s average forecast is $8.30, pointing to another 44.2% growth.
EOG Resources is a major independent oil and gas exploration and production company, with operations in the U.S., Canada, offshore Trinidad, the U.K., China, Canada and select other international areas. Over 30 days, the Houston, TX-based company has seen the Zacks Consensus Estimate for 2018 and 2019 increase 14.5% and 7.9%, to $3.63 and $4.67 per share, respectively.
Don’t Even Think About Buying Bitcoin Until You Read This
The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3 times in 2017.
Zacks’ has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Image: Bigstock
Canadian Natural (CNQ) Q4 Earnings Beat on Liquids Strength
Oil and gas finder Canadian Natural Resources Limited (CNQ - Free Report) reported robust fourth-quarter results, buoyed by higher liquids prices and production.
Earnings per share – excluding one-time and non-cash items – came in at U.S.$444.9, blazing the Zacks Consensus Estimate of 32 U.S. cents and the fourth-quarter 2016 profit of 29 U.S. cents).
Revenues of C$5,010 million (U.S.$3,945 million) were up 44.9% from the year-ago period and ahead of our guidance of U.S.$3,563 million.
Canadian Natural’s fourth-quarter operational funds flow – a key metrics to gauge its capability to fund new projects and drilling – amounted to C$2,307 million, which was 37.6% higher than that achieved in the fourth quarter of 2016.
Production
Canadian Natural reported quarterly production of 1,020,094 barrels of oil equivalent per day (BOE/d), up from 859,577 BOE/d in the prior year quarter.
Oil and natural gas liquids (NGLs) output (accounting for 73% of total volumes) increased 27.2% to 744,100 barrels per day (Bbl/d). The production gains primarily reflect strong contribution and high reliability from the Horizon oil sands expansion projects, as well as a full quarter of production from the Athabasca Oil Sands Project.
Meanwhile, natural gas volumes remained essentially flat year over year at 1,656 million cubic feet per day (MMcf/d). This is in line with Canadian Natural’s tactical decision to maintain natural gas output.
Realized Prices
The average realized liquids price (before hedging) was C$53.42 per barrel during the fourth quarter, representing an increase of 18.7% from the corresponding period of the previous year. However, the average realized natural gas price (excluding hedging) during the three months ended Dec 31, 2017 was C$2.55 per thousand cubic feet (Mcf), down from the year-ago level of C$3.14 per Mcf.
Costs & Expenses
Total expenses incurred in the reported quarter amounted to C$4,408 million, reflecting an increase of 47.6% from the year-ago figure of C$2,987 million. The higher costs stemmed mainly from increased production expenses, which rose 50.6% to C$1,645 million in the quarter under review.
Capital Expenditure & Balance Sheet
Canadian Natural's total capital spending during the fourth quarter of 2017 was C$1,143 million compared with C$411 million in the year-ago period. The jump in spending reflects the company’s heavy crude drilling strategy.
As of Dec 31, 2017, the upstream player had cash and cash equivalents of C$137 million and long-term debt of approximately C$20,581 million, representing a debt-to-capitalization ratio of 39.4%.
Canadian Natural Resources Limited Price, Consensus and EPS Surprise
Canadian Natural Resources Limited Price, Consensus and EPS Surprise | Canadian Natural Resources Limited Quote
Guidance
Management is guiding toward production of 821,000-869,000 Bbl/d of liquids and 1,600-1,650 MMcf/d of natural gas during the first quarter of 2018.
For 2018, Canadian Natural expects oil and NGLs production to be 815,000-885,000 Bbl/d, while natural gas volumes for the year are likely to be 1,650-1,710 MMcf/d. Capital spending for this year is budgeted at C$4,300 million, 13.5% below the 2017 spend of C$4,972 million.
Zacks Rank & Stock Picks
Canadian Natural carries a Zacks Rank #3 (Hold).
Meanwhile, one can look at better-ranked energy players like Concho Resources Inc. Pioneer Natural Resources Company (PXD - Free Report) and EOG Resources, Inc. (EOG - Free Report) . All the companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Based in Midland, TX, Concho Resources is an independent oil and gas exploration and production company with producing properties mainly in the Permian Basin of southeast New Mexico and west Texas. It has a 100% track of outperforming estimates over the last four quarters at an average rate of 48.89%.
Irving, TX-based Pioneer Natural Resources Company is an independent oil and gas exploration and production company, the asset base of which is anchored by the Spraberry oil field located in West Texas, the Hugoton gas field in Southwest Kansas and the West Panhandle gas field in Texas Panhandle. The 2018 Zacks Consensus Estimate for this company is $5.75, representing some 166.2% earnings per share growth over 2017. Next year’s average forecast is $8.30, pointing to another 44.2% growth.
EOG Resources is a major independent oil and gas exploration and production company, with operations in the U.S., Canada, offshore Trinidad, the U.K., China, Canada and select other international areas. Over 30 days, the Houston, TX-based company has seen the Zacks Consensus Estimate for 2018 and 2019 increase 14.5% and 7.9%, to $3.63 and $4.67 per share, respectively.
Don’t Even Think About Buying Bitcoin Until You Read This
The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3 times in 2017.
Zacks’ has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 4 crypto-related stocks now >>