Mar. 6, 2014, 12:05 AM
Mar. 5, 2014, 5:30 PM
Feb. 24, 2014, 5:48 PM
- Encana (ECA) is working with Royal Bank of Canada to find a buyer for its Bighorn properties in Alberta, Bloomberg reports.
- Bighorn may attract bids of C$2B-C$2.5B if offers are in line with the ~C$30K per flowing barrel that Canadian Natural Resources (CNQ) agreed to spend on Devon Energy’s (DVN) conventional assets in Canada last week, Cormark analyst Todd Kepler says, adding that Exxon Mobil (XOM) may be “a natural” buyer after its purchase of Celtic Exploration last year.
- The properties up for sale are said to produce ~61.5K boe/day, of which 79% is gas.
Feb. 19, 2014, 6:58 AM
- Devon Energy (DVN) has agreed to sell some of its liquids-rich natural-gas assets in Canada and six natural-gas plants for $3.13B to Canadian Natural Resources (CNQ).
- Before royalties, the properties produced the equivalent of 383M cubic feet of natural gas per day, 10,800 bpd of light crude oil and 12,000 bpd of natural gas liquids.
- The transaction doesn't include Devon's Horn River interests in northern British Columbia and heavy oil assets in Alberta.
- The deal comes after Devon said in November that it planned to sell all of its Canadian gas assets following years of low prices. (PR)
Feb. 18, 2014, 7:56 AM
- Total (TOT) says it expects to spend hundreds of millions of dollars on exploration drilling in South Africa this year.
- TOT, which has a 50% share in a permit to explore off the southern coast of South Africa with Canadian Natural Resources (CNQ), will begin drilling later in the year and is in talks with the South African government to acquire a second exploration permit.
- Other oil majors such as Shell and Exxon have rights to explore for gas off South Africa's coast; the country currently imports ~70% of its oil from the rest of Africa and the Middle East.
Jan. 14, 2014, 6:56 PM
- The weak Canadian dollar will provide extra cash flow to the country's energy sector but this is not being recognized by investors, particularly those outside Canada, Canaccord's Martin Roberge says in recommending Canadian Natural Resources (CNQ), MEG Energy (MEGEF) and Suncor (SU) as Canadian names benefiting most by heavy oil differentials.
- "A weaker C$ should also help spreads to narrow but more importantly allow Canadian producers to enjoy huge currency translation gains," Roberge says.
- The shale growth allure of U.S. E&Ps has blinded investors, but with the loonie breaking down below key resistance levels, the strategist sees a catalyst for going long the three Canadian names and shorting ConocoPhillips (COP), Anadarko (APC) and EOG.
Jan. 13, 2014, 3:38 PM
- The leak at Canadian Natural Resources' (CNQ -0.5%) Primrose field in the Alberta oil sands continues to seep bitumen crude at "a low rate" six months after it started, CNQ CEO Steve Laut says while expecting to halt the leak soon.
- The Primrose field was hit by a second incident at the start of this year, when 27K liters of bitumen were accidentally released underground; that release has since been stopped, but ~1M liters of bitumen have leaked since July 2013.
- Also, Laut says he expects CNQ to increase production by ~9% in 2014 to 711K-757K boe/day; ~75% of the company's production is oil.
Jan. 10, 2014, 7:49 AM
- Canadian Natural Resources (CNQ) says the release of ~170 barrels of oil underground last week at a troubled production site in Alberta was a routine well failure and questions the chief regulator's decision to issue an incident report on it.
- "There's no spill," CNQ says. "Casing failures do happen, and they're generally not reported as spills," but the Alberta Energy Regulator says there's no error in reporting the incident and an investigation is under way.
- The Primrose site has suffered a series of unexplained subterranean leaks of thousands of barrels of oil dating back to May; unlike with this latest seepage at an active well, the earlier leaks involved abandoned well bores.
Jan. 9, 2014, 4:31 PM
- KKR says it will open its first Canadian office next month in Calgary, the capital of Canada's oil patch, as it seeks to tap into growing demand for private-equity financing in the region and expand its presence in the global energy industry.
- KKR Director Brandon Freiman, who will relocate from the NYC headquarters to start up the new office, is eyeing investment of $500M to "several billion dollars" over the next five years in upstream oil and gas production, midstream pipelines and related infrastructure as well as energy services businesses.
- The planned investments will include providing financing instead of outright takeovers, KKR says.
- Canadian energy names on the radar: SU, IMO, BTE, SOQ, ERF, CVE, COSWF, AAV, BXE, CNQ.
Jan. 9, 2014, 9:53 AM
- Canadian Natural Resources (CNQ -0.2%) says it is dropping a plan to shed part of its shale-gas holdings in British Columbia’s liquids-rich Montney play after failing to attract a suitable offer.
- Several major energy companies also have been shopping around their land and infrastructure amid a period of low commodity prices, resulting in a crowded market.
- CNQ estimates its Montney lands contain ~6.7T cfe of gas, one of the largest reserve holdings in western Canada.
Dec. 11, 2013, 3:40 PM
- The U.S. decision on the Keystone XL pipeline is becoming more critical for oil sands producers such as Canadian Natural Resources (CNQ) and Suncor (SU) than pipeline builder TransCanada (TRP); for producers, Keystone is the earliest export line scheduled to ease bottlenecks which have helped push Canadian heavy crude $27/bbl below the U.S. benchmark.
- CNQ, with 120K bbl/day of capacity booked on Keystone XL, may gain 5% while other producers such as SU, Cenovus (CVE), Husky Energy (HUSKF) and Imperial Oil (IMO) may rise if the State Department’s review is positive, Cormark predicts, while a negative report could spur a 3% drop for CNQ.
- On the other hand, Keystone XL is only worth C$1.50 to TRP shares whether or not the project is approved, as the company has invested in other projects, according to some analysts.
- John Podesta’s return to the White House places a Keystone opponent within Pres. Obama's inner circle, although he supposedly is recusing himself from issues surrounding the controversial project.
Dec. 7, 2013, 10:30 AM
- Barron's top 10 stock picks for 2014 shows an affinity for low P/E ratios, with 6 of the group sporting multiples of 10 or lower. The 2013 picks - which are up 35.2% on average, 900 bps ahead of the S&P 500 - had five names with single-digit P/Es. This year's list:
- A depressed play on a depressed commodity, don't be surprised if Barrick Gold (ABX) gets the attention of an activist investor next year.
- Up just 11% YTD, Canadian Natural Resources' (CNQ) free cash flow is set to quintuple to $5B in 2018 once the Horizon oil-sands facility expansion is completed.
- A rising world population needs food. At less than 10x earnings, Deere (DE) is the kind of company Warren Buffett might like to buy if it became available. "Stranger things have happened," writes Andrew Bary.
- Even after gaining 55% YTD, MetLife (MET) sells for less than 10x 2014 EPS and just above book value, but bigger gains are ahead once the company is given regulatory permission to buy back stock and boost its dividend. Met's also a good hedge against rising rates, as life insurers will benefit by having higher yields to invest in.
- The rest: Citigroup (C), GM, Intel (INTC), Nestle (NSRGY, NSRGF), Simon Property (SPG), U.S. Airways (LCC).
Dec. 5, 2013, 9:12 AM
- Canadian Natural Resources (CNQ) says its 50K bbl/day Sturgeon oil sands plant backed by the Alberta government will cost C$8.5B ($8B), almost 50% more than previously estimated, and be delayed to Sept. 2017 from mid-2016.
- Both CNQ and the provincial government agree to inject further capital in the form of debt financing into the project, but at least one analyst is surprised the project is moving forward at all, citing the "huge" revised cost amounting to C$170K per bbl/day of capacity.
Nov. 8, 2013, 8:39 AM
- Total (TOT) and partners Anadarko Petroleum (APC) and Canadian Natural Resource (CNQ) will spend up to $300M to drill exploration wells on three offshore blocks in Ivory Coast in 2014, the head of TOT's local unit says.
- Oil and gas exploration in West Africa's Gulf of Guinea has risen sharply since Ghana discovered its giant Jubilee field in 2007 and brought it to production in record time in late 2010.
Nov. 7, 2013, 5:51 AM| Comment!
Nov. 7, 2013, 5:44 AM
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