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Canadian Natural (CNQ) Closes Storm Resources Buyout for C$960M
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Canadian Natural Resources Limited (CNQ - Free Report) concluded the previously announced agreement with Storm Resources Ltd. to acquire all of the latter's shares for C$960 million.
The acquired assets involve Calgary-based oil and gas explorer Storm's holdings in the liquid-rich Montney area of northeast British Columbia. Storm currently produces 136 million cubic feet a day of natural gas and 5,600 barrels a day of natural gas liquids in the area.
Storm's properties and production are within Canadian Natural's major activity areas. With the agreement, CNQ expands its existing footprint in the Montney natural gas formation in northern Alberta and British Columbia.
In August 2020, Canadian Natural entered a similar agreement to acquire Painted Pony Energy, another producer in the Montney area, to expand its Western Canada acreage. CNQ also assumed about C$350 million of Painted Pony's debt. Notably, the transaction allowed CNQ to insulate against natural gas costs in its oil-sand operations as natural gas prices came under pressure from reduced consumption amid the pandemic.
However, companies are withstanding their desire to grow by drilling additional wells despite the rising commodity prices. Major companies, including Canadian Natural, are considering acquisitions to some extent as investors don't want them to drill wells and bring large fuel volumes to production.
The latest acquisition offers production and infrastructure that complement Canadian Natural's existing assets in the area. The areas will provide an opportunity for synergies within CNQ's current diversified portfolio.
Headquartered in Calgary, AL, Canadian Natural is a leading independent energy company that engages in the exploration, development, and production of oil and natural gas.
Occidental Petroleum Corporation (OXY - Free Report) is an integrated oil and gas company with significant exploration and production exposure. OXY is also a producer of various basic chemicals, petrochemicals, polymers and specialty chemicals. As of 2020 end, OXY's preliminary worldwide proved reserves totaled 2.91 billion BOE compared with 3.9 billion BOE at the end of 2019.
In the past year, shares of Occidental Petroleum have surged 99% compared with the industry's growth of 96.6%. OXY's 2021 earnings are expected to soar 151.4% from the year-ago reported figure. OXY has also witnessed eight northward estimate revisions in the past 60 days. In the third quarter, OXY achieved its divestiture target of $10 billion by inking a deal to sell off its interest in two offshore Ghana assets for $750 million.
PDC Energy is an independent upstream operator dealing in the exploration, development and production of natural gas, crude oil and natural gas liquids. PDCE, which reached its present status following the January 2020 merger with SRC Energy, is currently the second-largest producer in the Denver-Julesburg Basin. As of 2020 end, PDCE's total estimated proved reserves were 731,073 thousand barrels of oil equivalent.
In the past year, shares of PDC Energy have gained 169% compared with the industry's growth of 108.6%. PDCE's earnings for 2021 are expected to surge 273.4% from the prior-year reported figure. In the past 60 days, the Zacks Consensus Estimate for PDC Energy's 2021 earnings has been raised by 26.8%. Earnings of PDCE beat the Zacks Consensus Estimate in all the last four quarters, the average being 51.06%.
Whiting Petroleum is a leading upstream energy company and is the top producer of crude oil in North Dakota. With oil prices improving at a healthy pace, Whiting Petroleum expects to continue generating handsome cashflows, while maintaining a healthy balance sheet.
Headquartered in Denver, CO, Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days. Looking at the price chart, WLL has gained 152% year to date, outpacing the 98.2% rise of the composite stocks belonging to the industry.
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Canadian Natural (CNQ) Closes Storm Resources Buyout for C$960M
Canadian Natural Resources Limited (CNQ - Free Report) concluded the previously announced agreement with Storm Resources Ltd. to acquire all of the latter's shares for C$960 million.
The acquired assets involve Calgary-based oil and gas explorer Storm's holdings in the liquid-rich Montney area of northeast British Columbia. Storm currently produces 136 million cubic feet a day of natural gas and 5,600 barrels a day of natural gas liquids in the area.
Storm's properties and production are within Canadian Natural's major activity areas. With the agreement, CNQ expands its existing footprint in the Montney natural gas formation in northern Alberta and British Columbia.
In August 2020, Canadian Natural entered a similar agreement to acquire Painted Pony Energy, another producer in the Montney area, to expand its Western Canada acreage. CNQ also assumed about C$350 million of Painted Pony's debt. Notably, the transaction allowed CNQ to insulate against natural gas costs in its oil-sand operations as natural gas prices came under pressure from reduced consumption amid the pandemic.
However, companies are withstanding their desire to grow by drilling additional wells despite the rising commodity prices. Major companies, including Canadian Natural, are considering acquisitions to some extent as investors don't want them to drill wells and bring large fuel volumes to production.
The latest acquisition offers production and infrastructure that complement Canadian Natural's existing assets in the area. The areas will provide an opportunity for synergies within CNQ's current diversified portfolio.
Headquartered in Calgary, AL, Canadian Natural is a leading independent energy company that engages in the exploration, development, and production of oil and natural gas.
Zacks Rank & Other Key Picks
Canadian Natural currently has a Zack Rank #2 (Buy). Investors interested in the energy sector might look at the following stocks with a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Occidental Petroleum Corporation (OXY - Free Report) is an integrated oil and gas company with significant exploration and production exposure. OXY is also a producer of various basic chemicals, petrochemicals, polymers and specialty chemicals. As of 2020 end, OXY's preliminary worldwide proved reserves totaled 2.91 billion BOE compared with 3.9 billion BOE at the end of 2019.
In the past year, shares of Occidental Petroleum have surged 99% compared with the industry's growth of 96.6%. OXY's 2021 earnings are expected to soar 151.4% from the year-ago reported figure. OXY has also witnessed eight northward estimate revisions in the past 60 days. In the third quarter, OXY achieved its divestiture target of $10 billion by inking a deal to sell off its interest in two offshore Ghana assets for $750 million.
PDC Energy is an independent upstream operator dealing in the exploration, development and production of natural gas, crude oil and natural gas liquids. PDCE, which reached its present status following the January 2020 merger with SRC Energy, is currently the second-largest producer in the Denver-Julesburg Basin. As of 2020 end, PDCE's total estimated proved reserves were 731,073 thousand barrels of oil equivalent.
In the past year, shares of PDC Energy have gained 169% compared with the industry's growth of 108.6%. PDCE's earnings for 2021 are expected to surge 273.4% from the prior-year reported figure. In the past 60 days, the Zacks Consensus Estimate for PDC Energy's 2021 earnings has been raised by 26.8%. Earnings of PDCE beat the Zacks Consensus Estimate in all the last four quarters, the average being 51.06%.
Whiting Petroleum is a leading upstream energy company and is the top producer of crude oil in North Dakota. With oil prices improving at a healthy pace, Whiting Petroleum expects to continue generating handsome cashflows, while maintaining a healthy balance sheet.
Headquartered in Denver, CO, Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days. Looking at the price chart, WLL has gained 152% year to date, outpacing the 98.2% rise of the composite stocks belonging to the industry.