Shares of Canadian Natural Resources Limited (CNQ - Free Report) have gained 3.2% since its second-quarter 2021 earnings announcement on Aug 5.
This uptrend was led by the company’s better-than-expected bottom-line and top-line performances and its solid free cash flow guidance for 2021 owing to anexcellent business performance as well as a more optimistic commodity pricing outlook for the rest of 2021.
Behind the Earnings Headlines
Canadian Natural reported second-quarter 2021 adjusted earnings per share of $1.01, beating the Zacks Consensus Estimate of 77 cents. The bottom line also reversed the year-ago loss of 47 cents per share. This outperformance is attributable to increased natural gas output from North America and higher commodity price realizations.
Total revenues of $5.31 billion surpassed the Zacks Consensus Estimate of $5.26 billion. Moreover, the top line improved from $2.07 billion sales a year ago.
During the quarter under review, the company, which is committed to adding shareholder value, returned C$557 million via dividends.
The company’s board of directors cleared a quarterly dividend of 47 Canadian cents a share, payable Oct 5, 2021 to its shareholders of record as of Sep 17, 2021.
Production & Prices
Canadian Natural reported quarterly production of 1,141,739 barrels of oil equivalent per day (BOE/d), down 2.04% from the prior-year quarter. Oil and NGLs output (accounting for more than 76.4% of total volumes) fell to 872,718 barrels per day (Bbl/d) from 921,895Bbl/d a year ago.
Crude oil and NGLs production from operations in North America including synthetic crude oil production of 361,707Bbl/d and bitumen output of 258,551Bbl/d totaled 620,258Bbl/d, comparing unfavorably with the year-ago quarter’s 677,125Bbl/d due to the timing of the planned Horizon turnaround and Scotford de-coking.
Natural gas volumes recorded an 11.4% year-over-year rise from 1,462 million cubic feet per day (MMcf/d) to 1,614MMcf/d in the quarter. Production in North America summed 1,594MMcf/d compared with 1,431MMcf/d in the prior year.
Canadian Natural’s realized natural gas price surged 56.2% to C$3.17 per thousand cubic feet from the year-ago level of C$2.03. Moreover, realized oil and NGLs price jumped 222.6% to C$61.2 per barrel from C$18.97 in the second quarter of 2020.
Costs & Capital Expenditure
Total expenses incurred in the quarter were C$4,528 million, higher than C$3,479 million recorded a year ago. Increase in production expenses along with transportation, blending and feedstock costs escalated the overall costs. Canadian Natural’s Oil Sands Mining and Upgrading operating expenses increased 43.5% year over year to C$25.46 per barrel.
In the reported quarter, capital expenditure (including net acquisition costs) totaled C$1,285 million.
Balance Sheet
As of Jun 30, the company had C$168 million in cash and cash equivalents, and a long-term debt of C$16,031 million, representing total debt to total capital of 31.9%.
2021 Guidance
Canadian Natural’s 2021 capex view is increased $275 million from the prior guidance to C$3.47 billion, indicating a production target of 1,220-1,267 thousand BOE/d range.
After calculating dividends and anticipated capital expenditures excluding net acquisitions, annual free cash flow is targeted in the range of $7.2-$7.7 billion for 2021, based on an annual average WTI of $66 per barrel.
Zacks Rank & Other Key Picks
Canadian Natural sports a Zacks Rank #1 (Strong Buy), currently. Other top-ranked players in the energy space include Devon Energy Corporation (DVN - Free Report) , Matador Resources Company (MTDR - Free Report) and Continental Resources, Inc. , each presently flaunting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Shares of Canadian Natural Resources Limited (CNQ - Free Report) have gained 3.2% since its second-quarter 2021 earnings announcement on Aug 5.
This uptrend was led by the company’s better-than-expected bottom-line and top-line performances and its solid free cash flow guidance for 2021 owing to anexcellent business performance as well as a more optimistic commodity pricing outlook for the rest of 2021.
Behind the Earnings Headlines
Canadian Natural reported second-quarter 2021 adjusted earnings per share of $1.01, beating the Zacks Consensus Estimate of 77 cents. The bottom line also reversed the year-ago loss of 47 cents per share. This outperformance is attributable to increased natural gas output from North America and higher commodity price realizations.
Total revenues of $5.31 billion surpassed the Zacks Consensus Estimate of $5.26 billion. Moreover, the top line improved from $2.07 billion sales a year ago.
During the quarter under review, the company, which is committed to adding shareholder value, returned C$557 million via dividends.
The company’s board of directors cleared a quarterly dividend of 47 Canadian cents a share, payable Oct 5, 2021 to its shareholders of record as of Sep 17, 2021.
Production & Prices
Canadian Natural reported quarterly production of 1,141,739 barrels of oil equivalent per day (BOE/d), down 2.04% from the prior-year quarter. Oil and NGLs output (accounting for more than 76.4% of total volumes) fell to 872,718 barrels per day (Bbl/d) from 921,895Bbl/d a year ago.
Crude oil and NGLs production from operations in North America including synthetic crude oil production of 361,707Bbl/d and bitumen output of 258,551Bbl/d totaled 620,258Bbl/d, comparing unfavorably with the year-ago quarter’s 677,125Bbl/d due to the timing of the planned Horizon turnaround and Scotford de-coking.
Natural gas volumes recorded an 11.4% year-over-year rise from 1,462 million cubic feet per day (MMcf/d) to 1,614MMcf/d in the quarter. Production in North America summed 1,594MMcf/d compared with 1,431MMcf/d in the prior year.
Canadian Natural’s realized natural gas price surged 56.2% to C$3.17 per thousand cubic feet from the year-ago level of C$2.03. Moreover, realized oil and NGLs price jumped 222.6% to C$61.2 per barrel from C$18.97 in the second quarter of 2020.
Costs & Capital Expenditure
Total expenses incurred in the quarter were C$4,528 million, higher than C$3,479 million recorded a year ago. Increase in production expenses along with transportation, blending and feedstock costs escalated the overall costs. Canadian Natural’s Oil Sands Mining and Upgrading operating expenses increased 43.5% year over year to C$25.46 per barrel.
In the reported quarter, capital expenditure (including net acquisition costs) totaled C$1,285 million.
Balance Sheet
As of Jun 30, the company had C$168 million in cash and cash equivalents, and a long-term debt of C$16,031 million, representing total debt to total capital of 31.9%.
2021 Guidance
Canadian Natural’s 2021 capex view is increased $275 million from the prior guidance to C$3.47 billion, indicating a production target of 1,220-1,267 thousand BOE/d range.
After calculating dividends and anticipated capital expenditures excluding net acquisitions, annual free cash flow is targeted in the range of $7.2-$7.7 billion for 2021, based on an annual average WTI of $66 per barrel.
Zacks Rank & Other Key Picks
Canadian Natural sports a Zacks Rank #1 (Strong Buy), currently. Other top-ranked players in the energy space include Devon Energy Corporation (DVN - Free Report) , Matador Resources Company (MTDR - Free Report) and Continental Resources, Inc. , each presently flaunting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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