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Canadian Natural Resources Ltd CNQ

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Canadian Natural Resources Reports Another Strong Quarter

Joe Gemino, CPA Senior Equity Analyst

Analyst Note

| Joe Gemino, CPA |

Canadian Natural Resources' fourth-quarter results exceeded our expectations, again. The company reported fourth-quarter adjusted operating cash flow of CAD 1.71 billion, which was down slightly on a sequential basis. The lower cash flow was a result of lower netbacks on the company’s liquids production, excluding the oil sands mining and upgrading segment, despite higher production levels. Corporate operating netbacks averaged CAD 16.37 per barrel compared with CAD 16.91 in the third quarter. Operating costs increased among the bitumen, heavy oil, and North Sea production, leading to the lower netbacks. Despite the slightly lower sequential operating cash flow, Canadian Natural still generated CAD 694 in free cash flow after adjusting for the Painted Pony acquisition costs and reduced net debt by CAD 432 from the third quarter.

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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 1.10 million barrels of oil equivalent per day in 2019, 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 Sep 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type —
Employees 10,180

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