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

| About: CNOOC Limited (CEO)
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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%.