New Acquisition Makes Canadian Natural Resources A Very Comfortable Hold
Summary
- Canadian Natural Resources' acquisition of Chevron's Alberta assets boosts production by 122,500 BOE/day, enhancing free cash flow and solidifying market position.
- The company’s new capital allocation policy prioritizes debt reduction, with 60% of free cash flow to shareholders until net debt hits $12 billion.
- Despite a higher P/E ratio, CNQ's strong dividend yield of 4.5% and superior net profit margin make it a valuable hold at current prices.
- Given current valuations, CNQ is a hold; a buy recommendation would require a higher discount and lower share price for better value.
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