In This Article:
Canadian Natural Resources Limited CNQ reported second-quarter 2022 adjusted earnings per share of $2.55, beating the Zacks Consensus Estimate of $2.08 and the year-ago quarter’s earnings of $1.01. This outperformance is primarily attributable to higher commodity price realizations due to surging commodity prices and increased year-over-year production.
Moreover, total revenues of $8.99 billion beat the Zacks Consensus Estimate of $7.84 billion due to a year-over-year rise in sales volumes. The top line also improved from $5.31 billion a year ago.
During the quarter under review, Canadian Natural, which is committed to adding shareholder value, returned C$900 million (C$0.9 billion) via dividends.
CNQ’s board of directors announced a quarterly cash dividend on its common shares of 75 Canadian cents per common share. The dividend will be payable on Oct 5, 2022 to shareholders of record at the close of the business on Sep 16, 2022.
In good news for investors, Canadian Natural’s board declared a special cash dividend on its common shares of C$1.50 per common share. The dividend will be payable on Aug 31, 2022 to shareholders of record at the close of the business on Aug 23, 2022.
Production & Prices
Canadian Natural reported the quarterly production of 1,211,147 barrels of oil equivalent per day, up about 6% from the prior-year quarter’s level. The oil and NGL output (accounting for almost 71% of total volumes) declined to 860,338 barrels per day (Bbl/d) from 872,718 Bbl/d a year ago.
The crude oil and NGL production from operations in North America, including the synthetic crude oil production of 356,953 Bbl/d and the bitumen output of 249,938 Bbl/d, totaled 606,891 Bbl/d, comparing unfavorably with the year-ago quarter’s 620,258 Bbl/d.
Natural gas volumes recorded a 30.4% year-over-year rise from 1,614 million cubic feet per day (MMcf/d) to 2,105 MMcf/d in the quarter. Production in North America summed at 2,089 MMcf/d compared with 1,594 MMcf/d in the prior year.
Canadian Natural’s realized natural gas price surged 120.4% to C$5.95 per thousand cubic feet from the year-ago level of C$2.70. Moreover, the realized oil and NGL price jumped 88.3% to C$115.26 per barrel from C$61.20 in the second quarter of 2021.
Canadian Natural Resources Limited Price, Consensus and EPS Surprise
Canadian Natural Resources Limited price-consensus-eps-surprise-chart | Canadian Natural Resources Limited Quote
Costs & Capital Expenditure
Total expenses incurred in the quarter were C$6,943 million, higher than the C$4,528 million recorded a year ago. An increase in production expenses, along with transportation, blending and feedstock costs, and an increase in share-based compensations escalated the overall cost.