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Canadian Natural (CNQ) Beats Q2 Estimates on Higher Output

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An Earnings Beat: Exploration and production company, Canadian Natural Resources Limited (CNQ - Free Report) announced second-quarter 2018 operating earnings per share of C$1.04 (79 U.S. cents), ahead of the Zacks Consensus Estimate of 57 cents.

Revenue Surpassed Estimates: Total revenues came in at C$ 5,952 million (U.S. $4,531.2 million), comfortably outperforming the Zacks Consensus Estimate of $4,281 million.

Key Stats:

Canadian Natural reported quarterly production of 1,050,376 barrels of oil equivalent per day (BOE/d), up from 913,171 BOE/d in the prior year quarter.

Oil and natural gas liquids (NGLs) output (accounting for more than 75.6% of total volumes) increased to 793,899 barrels per day (Bbl/d) from 637,127 Bbl/d. Meanwhile, natural gas volumes declined 7.1% year over year to stand at 1,539 million cubic feet per day (MMcf/d).

Canadian Natural’s realized natural gas price were C$1.95 per thousand cubic feet, compared with the year-ago quarter level of C$2.97. However, realized oil price increased to C$61.14 per barrel from C$47.12 in the second quarter of 2017.

Costs: The total expenses incurred in the quarter totaled C$4,550, reflecting an increase of 65.1% from the year ago level. Increased expenses are primarily attributed to higher production and transportation, blending and feedstock costs along with foreign exchange loss.

Estimate Revision Trend: Investors should note that the earnings estimate for Canadian Natural was revised downward by 2 cents in the past 30 days. The Zacks Consensus Estimate remained the same over the last 7 days.

Zacks Rank & Surprise History: Currently, Canadian Natural carries a Zacks Rank #1 (Strong Buy). (You can see the complete list of today’s Zacks #1 Rank stocks here.)

Coming to earnings surprise history, the company delivered an average positive earnings surprise of 4.74% in the trailing four quarters.

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