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Canadian Natural Resources Ltd CNQ

Morningstar’s Analysis

Valuation
Currency in USD

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Increasing Canadian Natural’s Fair Value Estimate

Joe Gemino, CPA Senior Equity Analyst

Analyst Note

| Joe Gemino, CPA |

After taking a fresh look at Canadian Natural Resources’ fourth-quarter results, we are increasing our fair value estimate to $35 (CAD 44) from $33 (CAD 42) due to our increased near-term commodity price forecast. Despite the uptick in our fair value estimate, the stock is still trading in 3-star territory. In our view, the market is appropriately recognizing the company’s industry-leading corporate cost structure. Furthermore, we are maintaining our no-moat rating.

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Company Profile

Business Description

Canadian Natural Resources is one of the largest oil and natural gas producers in western Canada, supplemented by operations in the North Sea and Offshore Africa. The company’s portfolio includes light and medium oil, heavy oil, bitumen, synthetic oil, natural gas liquids, and natural gas. Production averaged 1.16 million barrels of oil equivalent per day in 2020, and the company estimates that it holds over 11.5 billion boe of proven and probable crude oil and natural gas reserves.

Contact
855 - 2nd Street S.W, Suite 2100
Calgary, AB, T2P 4J8, Canada
T +1 403 514-7605
Sector Energy
Industry Oil & Gas E&P
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type —
Employees 9,993

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