Canadian Natural Resources Limited (CNQ - Free Report) recently delivered third-quarter adjusted earnings per share of 85 cents, comfortably surpassing the Zacks Consensus Estimate of 72 cents. The better-than-expected results were driven by higher crude oil and NGLs output, and price realizations. The bottom line was also way ahead of the prior-year earnings of 15 cents a share.
Revenues came in at $4,514 million, missing the Zacks Consensus Estimate of $4,710 million due to planned maintenance activities in the North Sea and lower natural gas output. However, the top line witnessed a jump from third-quarter 2017 revenues of $3,420 million.
Liquid Production Rises
Canadian Natural reported quarterly production of 1,060,629 barrels of oil equivalent per day (BOE/d), up from 1,036,499 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 801,742 barrels per day (Bbl/d) from 759,189 Bbl/d recorded a year ago. Crude oil and NGLs production from operations in North America came in at 754,238 Bbl/d, higher than the year-ago quarter’s 715,581 Bbl/d.
Meanwhile, overall natural gas volumes recorded a year-over-year decline from 1,664 million cubic feet per day (MMcf/d) to 1,553 MMcf/d in the quarter under review. Production in North America came in at 1,489 MMcf/d, lower than the year-ago period’s 1,593 MMcf/d.
Prices
Canadian Natural’s realized natural gas price was C$2.32 per thousand cubic feet compared with the year-ago level of C$2.29. Realized oil and NGLs price increased 25% to C$57.89 per barrel from C$46.33 in the third quarter of 2017.
Total Expenses
Total expenses incurred in the quarter totaled C$3,754, reflecting an increase from the year-ago level of C$3,684. The increased expenses are primarily attributed to higher transportation, blending and feedstock costs.
Capital Expenditure
In the reported quarter, capital expenditure totaled C$1,473 million. Net capital expenditure totaled C$3,550 million in the first nine months of 2018.
Balance Sheet
As of Sep 30, 2018, the company had C$296 million in cash and cash equivalents, and a long-term debt of C$19,233 million, representing a debt-to-capitalization ratio of approximately 36.5%.
Guidance
Canadian Natural expects its capital expenditure to be around C$4.6 billion in 2018.
For full-year 2018, the company expects its crude oil and NGL production from North American operations in the range of 240,000-246,000 Bbl/d. It reiterated its thermal in situ oil sands production guidance at 107,000-127,000 bbl/d. It forecasts its full-year 2018 liquids output in the band of 802,000-868,000 Bbl/d (lower than the previous guided range of 815,000-885,000 bbl/d), while natural gas output is still likely to be in the range of 1,550-1,600 MMcf/d.
Fourth-quarter liquids production is anticipated within 801,000-849,000 Bbl/d and natural gas output is projected at 1,480-1,510 MMcf/d.
Zacks Rank & Key Picks
Currently, Calgary, Canada-based Canadian Natural has a Zacks Rank #3 (Hold). Investors interested in the energy sector can opt for some better-ranked stocks given below:
New York, NY-based Hess Corporation (HES - Free Report) has a Zacks Rank #1 (Strong Buy). Its earnings for 2018 are expected to surge around 100% from the 2017 level. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fort Worth, TX-based Range Resources Corporation (RRC - Free Report) holds a Zacks Rank #2 (Buy). The company’s earnings for 2018 are expected to surge more than 100% year over year.
El Dorado, AR-based Murphy Oil Corporation (MUR - Free Report) carries a Zacks Rank #2. The company’s sales for 2018 are expected to grow more than 20% from 2017.
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Canadian Natural Resources Limited (CNQ - Free Report) recently delivered third-quarter adjusted earnings per share of 85 cents, comfortably surpassing the Zacks Consensus Estimate of 72 cents. The better-than-expected results were driven by higher crude oil and NGLs output, and price realizations. The bottom line was also way ahead of the prior-year earnings of 15 cents a share.
Revenues came in at $4,514 million, missing the Zacks Consensus Estimate of $4,710 million due to planned maintenance activities in the North Sea and lower natural gas output. However, the top line witnessed a jump from third-quarter 2017 revenues of $3,420 million.
Liquid Production Rises
Canadian Natural reported quarterly production of 1,060,629 barrels of oil equivalent per day (BOE/d), up from 1,036,499 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 801,742 barrels per day (Bbl/d) from 759,189 Bbl/d recorded a year ago. Crude oil and NGLs production from operations in North America came in at 754,238 Bbl/d, higher than the year-ago quarter’s 715,581 Bbl/d.
Meanwhile, overall natural gas volumes recorded a year-over-year decline from 1,664 million cubic feet per day (MMcf/d) to 1,553 MMcf/d in the quarter under review. Production in North America came in at 1,489 MMcf/d, lower than the year-ago period’s 1,593 MMcf/d.
Prices
Canadian Natural’s realized natural gas price was C$2.32 per thousand cubic feet compared with the year-ago level of C$2.29. Realized oil and NGLs price increased 25% to C$57.89 per barrel from C$46.33 in the third quarter of 2017.
Total Expenses
Total expenses incurred in the quarter totaled C$3,754, reflecting an increase from the year-ago level of C$3,684. The increased expenses are primarily attributed to higher transportation, blending and feedstock costs.
Capital Expenditure
In the reported quarter, capital expenditure totaled C$1,473 million. Net capital expenditure totaled C$3,550 million in the first nine months of 2018.
Balance Sheet
As of Sep 30, 2018, the company had C$296 million in cash and cash equivalents, and a long-term debt of C$19,233 million, representing a debt-to-capitalization ratio of approximately 36.5%.
Guidance
Canadian Natural expects its capital expenditure to be around C$4.6 billion in 2018.
For full-year 2018, the company expects its crude oil and NGL production from North American operations in the range of 240,000-246,000 Bbl/d. It reiterated its thermal in situ oil sands production guidance at 107,000-127,000 bbl/d. It forecasts its full-year 2018 liquids output in the band of 802,000-868,000 Bbl/d (lower than the previous guided range of 815,000-885,000 bbl/d), while natural gas output is still likely to be in the range of 1,550-1,600 MMcf/d.
Fourth-quarter liquids production is anticipated within 801,000-849,000 Bbl/d and natural gas output is projected at 1,480-1,510 MMcf/d.
Zacks Rank & Key Picks
Currently, Calgary, Canada-based Canadian Natural has a Zacks Rank #3 (Hold). Investors interested in the energy sector can opt for some better-ranked stocks given below:
New York, NY-based Hess Corporation (HES - Free Report) has a Zacks Rank #1 (Strong Buy). Its earnings for 2018 are expected to surge around 100% from the 2017 level. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fort Worth, TX-based Range Resources Corporation (RRC - Free Report) holds a Zacks Rank #2 (Buy). The company’s earnings for 2018 are expected to surge more than 100% year over year.
El Dorado, AR-based Murphy Oil Corporation (MUR - Free Report) carries a Zacks Rank #2. The company’s sales for 2018 are expected to grow more than 20% from 2017.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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