Nexen Inc.: Blackmont Capital Optimistic On Thursday's Earnings Report

Blackmont Capital analyst Menno Hulshof expects Nexen Inc. (NXY) will report solid second quarter results before markets open on Thursday morning. He sees better-than-expected production from the Buzzard project in the North Sea, where Nexen has a 43.2% working interest, as well as a strong contribution from its marketing business.

Nexen is also poised to capitalize on its exposure to Brent oil, which continues to trade at a premium to West Texas Intermediate crude.

Mr. Hulshof’s production, cash flow and earnings per share estimates are slightly above consensus at 279,500 barrels of oil equivalent per day, C$1.60 and C66¢ (fully diluted) respectively.

He has a “buy” rating and C$39 price target on Nexen shares, representing upside of roughly 14%.