Back to top

Analyst Blog

Canadian oil and gas company Nexen Inc. has missed the deadline for the completion of maintenance work at the Buzzard oil field in the North Sea. Delay in the commissioning of the fourth platform will hamper the company’s production target.

The Buzzard oil field is the key contributor to Forties crude. Moreover, this crude is the most important constituent of benchmark Brent, which is used to price a major portion of the world's oil.

Due to the delay in work, a November cargo – F1104 – has been dropped from the loading program of the Forties.

Production was scheduled to commence in mid October but now it has been postponed by a week.

Calgary, Alberta-based Nexen has a diversified portfolio of exploration and production operations in Canada, the U.S. Gulf of Mexico, North Sea (U.K.), Yemen, Nigeria and other areas. We believe that the company’s multi-year inventory of development projects and endeavors will aid in accomplishing the targeted growth level.

Nexen has been actively investing in its upstream assets in recent years, significantly improving its long-term, production-growth prospect. The production efficiency at Buzzard surpassed the company’s target of 85% and touched 88% in the second quarter of 2012.

Of late, Nexen has been in the news following its purchase deal with Chinese energy giant CNOOC Ltd. (CEO - Analyst Report) last July for approximately $15.1 billion in cash. Per the agreement, which is expected to be wrapped up by this year-end, CNOOC will buy all the outstanding common shares of Nexen at $27.50 per share, representing a premium of 61% to its closing price on the New York Stock Exchange on July 20.

Nexen retains a Zacks #2 Rank, which is equivalent to a Buy rating for the period of one to three months.


Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%