Canadian Natural (CNQ) Q2 Earnings Meet, Revenues Miss Mark
Zacks Investment Research | Aug 12, 2019 08:50AM ET
Canadian Natural Resources Limited (TSX:CNQ) reported second-quarter 2019 adjusted earnings per share of 65 cents, in line with the Zacks Consensus Estimate on higher commodity price realizations. Meanwhile, the bottom line was lower than the prior-year earnings of 70 cents a share as production fell.
Moreover, total revenues of $4,158 million missed the Zacks Consensus Estimate of $4,359 million. Also, the top line declined from second-quarter 2018 revenues of $4,613 million.
Despite a year-over-year decrease in revenues and earnings, the company’s second-quarter results offered something positive to buoy long-term investors’ optimism as free cash flow totaled $1,295 million after capital expenditure and dividend payments.
Production & Prices
Canadian Natural reported quarterly production of 1,025,800 barrels of oil equivalent per day (BOE/d), down by 2.3% from the prior-year quarter. Oil and natural gas liquids (NGLs) output (accounting for more than 75% of total volumes) decreased to 770,409 barrels per day (Bbl/d) from 793,899 Bbl/d a year ago. Crude oil and NGLs production from operations in North America came in at 719,165 Bbl/d, lower than the year-ago quarter’s 751,242 Bbl/d due to the implementation of the company’s curtailment optimization strategy and the wildfire-induced shut-ins of Alberta.
Natural gas volumes recorded a marginal year-over-year decline from 1,539 million cubic feet per day (MMcf/d) to 1,532 MMcf/d in the quarter under review. Production in North America totaled 1,482 MMcf/d compared with 1,485 MMcf/d in the prior year.
Canadian Natural’s realized natural gas price was C$1.98 per thousand cubic feet compared with the year-ago level of C$1.95. Realized oil and NGLs price increased 3.8% to C$63.45 per barrel from C$61.14 in the second quarter of 2018, courtesy of the narrowing crude oil differentials.
Canadian Natural Resources Limited Price, Consensus and EPS Surprise
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