Canadian Natural's (CNQ) first-quarter output of 1,178,752 barrels of oil equivalent per day rises 13.9% from the prior-year quarter's level.

CALGARY, Alberta, May 11, 2020 -- Canadian Natural held its Annual General Meeting of the Shareholders on May 7, 2020. The result of the vote by shareholders for each.

Canadian Natural is in a strong position. Currently the Company has approximately 6,000 employees working remotely and approximately 4,000 field personnel working under safety protocols to maintain safe reliable operations.

The energy sector has been a disaster zone this year, as the coronavirus pandemic has decimated global oil demand. West Texas Intermediate, the benchmark U.S. crude, has plummeted nearly 70% to a recent $19.21 a barrel, while Brent, the most popular international benchmark, is down 60%, to $26.34. As for energy stocks, they have made fools of their fans for nearly a decade, and now account for a measly 3% of the S&P 500 index.

CALGARY, Alberta, May 07, 2020 -- Canadian Natural Resources Limited announces its Board of Directors has declared a quarterly cash dividend on its common shares of C$0.425.

Canadian Natural Resources Ltd posted a quarterly loss on Thursday from a year-ago profit, as the oil and gas producer suffered from a slump in crude prices. The company's net loss stood at C$1.28 billion ($908.90 million), or C$1.08 per share, in the first quarter ended March 31, from a profit of C$961 million, or 80 Canadian cents per share, in the year-ago period.

Canadian Natural Resources (CNQ) delivered earnings and revenue surprises of -575.00% and -7.13%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?

The Norwegian central bank on Wednesday excluded four Canadian oil and gas companies from its $1-trillion wealth fund, the world's largest, for producing too much greenhouse gas emissions, its first use of carbon emissions as a criterion to blacklist firms. Canadian Natural Resources Ltd, Cenovus Energy Inc , Suncor Energy Inc, and Imperial Oil Ltd were excluded from the fund due to "unacceptable greenhouse gas emissions", Norges Bank said in a statement https://www.norges-bank.no/en/news-events/news-publications/News-items/2020/2020-05-13-spu. The decision was based on recommendations from the Council on Ethics, the fund's ethics watchdog, because of the companies' carbon emissions from production of oil to oil sands, the central bank said.

With me this morning are Tim McKay, our President, Scott Stauth, Chief Operating Officer for Oil Sands, Darren Fichter, Chief Operating Officer for Exploration and Production, and Mark Stainthorpe, Chief Financial Officer. Few, if any of our peers, can deliver sustainable cash flow.

Canada's largest oil and gas producer also withdrew its 2020 production outlook and said it would curtail production by roughly 14% for May due to weak prices and uncertainty around the outbreak of COVID-19, the respiratory illness caused by the coronavirus. Alberta's hopes of a rebound this year for the Western Canadian province's long-struggling oil industry have been dashed by the crash in global crude prices, which has forced companies to adopt cost-cutting strategies. Canadian Natural has slashed management pay and its spending budget.

Canadian Natural (CNQ) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.

(Bloomberg) -- For Alberta’s economy this year, it’s almost as if the oil sands have gone missing.Canadian energy companies ranging from oil and gas producers to pipeline operators and service companies have announced plans to cut as much as C$11.4 billion ($8.1 billion) in capital spending, with giants Suncor Energy Inc. and Canadian Natural Resources Ltd. each disclosing their second rounds of reductions this week.Those reductions would amount to more than the entire C$10.7 billion invested in oil-sands production last year. An industry group had forecast a similar level of spending in 2020.In other words, spending cuts across the Canadian energy sector have been so vast, they effectively cancel out all the new capital that oil-sands growth was expected to bring into Alberta this year -- before the crude price crash forced companies to rewrite their plans.The effect of those spending reductions showed up in a dismal employment report Friday. The province lost 243,800 jobs in April and the unemployment rate spiked to 13.4%, the highest of Canada’s four western provinces, Statistics Canada said. While the oil sands will still employ tens of thousands of people and produce millions of barrels of oil a day, providing billions of dollars in tax revenue, it’s their spending that, to a large extent, had made Alberta’s economy tick for years. Plus, that tax income will be significantly less than the province had expected when benchmark oil traded above $60 a barrel in New York early this year, with prices at $25 now.Thousands of mechanics, truck drivers, welders and backhoe operators will be out of work, and scores of white-collar experts and investors won’t be flying in like they used to, with a devastating domino effect on sectors like real estate and retail. All that on top of the economic tsunami caused by the global virus outbreak.“Every company has reduced its capital spending, so I view it as bad for Canada in the sense that it has jobs attached to it,” Canadian Natural President Tim McKay said in an interview. “Spending drives the economy, and if people have jobs, then they spend their money on goods and services.”It’s possible that the actual amount of cuts in 2020 could be less drastic, but they will have a huge economic impact either way. At the low end of companies’ announcements so far, about C$8.5 billion in capital spending would be reduced.In any case, the cuts dash hopes for a long-awaited revival of spending in the sector. The Canadian Association of Petroleum Producers had estimated overall oil and gas capital spending this year would rise 5.4% to C$37 billion. Oil-sands spending had been expected to climb 8.4%, the first gain in five years.(Adds employment report figures in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

In last week’s trading, stocks showed their best weekly gains in over 40 years, prompting a wave of confidence among investors. But it’s not clear that the bulls really want to start running – today, the S&P slipped 2.5%. Volatility indicators remain high, as daily trading results remain unpredictable.The market gyrations are the direct result of the strong reactions to the COVID-19 epidemic. New York City, the world’s financial center, is clearly at the center of the epidemic in the US, but social distancing, shutdowns, lockdowns, and quarantines are being applied in varying degrees throughout the country – and worldwide. Economic activity, the ordinary daily business of working, producing, buying, and selling, has ground to near-halt, and economists are debating not if we’ll see a recession – that’s clear already – but if it will turn into a Depression.In the meantime, stock market investors are looking for ways to rebuild and defend their portfolios. After the heavy losses of late February and March, the recent rally has been a breath of fresh air – although there are worries about how long it will last. Investors are moving toward that classic category of defensive play, the dividend stock, seeking companies that combine positive recent earnings and strong upside potential with high-yield dividend payments. These are the moves that will protect your investment portfolio.With this in mind, we’ve used TipRanks database to find three affordable stocks that meet a strong defensive profile. All three offer dividend yields of 9% or higher, have consistently positive earnings, and offer upside potential greater than 35%. Let's take a closer look. Fidus Investment Corporate (FDUS)Fidus inhabits the business development niche, where it provides debt financing solutions for low- to mid-market companies. Fidus invests in senior secured debt and mezzanine debt, along with equity securities, in companies valued between $10 and $150 million. Fidus has invested in 68 companies worth an aggregated $697 million; a majority of Fidus’ portfolio is comprised of second lien debt, and Fidus holds equity investments in 93% of its portfolio companies, with an average ownership of 6%.The value of Fidus’ portfolio is clear from the earnings, which have been consistently positive for the past two years. The company finished 2019 with 13% sequential gain in quarterly earnings, reporting 34 cents EPS for Q4 and a total investment income of $19.5 million. For the full year 2019, FDUS reported total investment income of $77.1 million and $1.44 EPS.Fidus uses its income to fund a steady, reliable dividend. The company has consistently held the regular quarterly payment at 39 cents per share, and added a 4-cent special dividend in each fourth quarter. The total dividend yield is an incredible 19.2%, which, added to the reliability of the payment, makes Fidus a true dividend champion.Oppenheimer’s 5-star analyst Chris Kotowski is impressed by this company, partly from a general liking for “the business model of FDUS and other BDCs that focus on the smaller end of the middle-market space,” and partly from the company’s commitment to a high-quality dividend. Looking at Fidus’ forward prospects, he writes, “Quarter-to-date for 1Q20, FDUS has already monetized ~$46M of equity investments and generated ~$30.2M of net realized gains, seemingly in line with marks as of 4Q19...”Kotowski maintains his Buy rating on FDUS shares, while setting a $14 price target that implies an impressive upside potential of 62%. (To watch Kotowski’s track record, click here)Overall, FDUS has a Strong Buy analyst consensus rating, based on 3 recent Buy reviews against a single Hold. The shares are selling for an affordable $8.11, and the $11.17 average price target suggests a 37% upside potential for the coming 12 months. (See Fidus stock analysis on TipRanks)PennyMac Mortgage (PMT)Mortgage investment trusts are a more liquid option for investors seeking to invest in the real estate sector. These companies, subsets of the real estate investment trust (REIT) sector, focus on mortgage assets and mortgage backed securities, rather than the underlying real estate. PennyMac allows investors to invest in the mortgage sector, backed by property, and to profit from both dividends and capital appreciation.This company has consistently beaten earnings expectation over the past several years, and its most recent report was no exception. In Q4, PMT reported 55 cents EPS, just over the estimates and in line with the year-ago quarter. Top-line revenue came in at $155 million, 16% over the estimates and up a hefty 84% year-over-year.The solid earnings foundation supports PMT’s dividend. The company held the payment steady at 47 cents through 2019 – but the current payment, to be paid at the end of this month, has been reduced to 25 cents. The reduction was made to put the payment in line with expected quarterly income, which is predicted to show a heavy hit from the economic dislocations of the COVID-19 epidemic. At the current payment and income levels, PMT’s dividend shows a payout ratio of 45% and a yield of 9.54%. The payout ratio shows the dividend is affordable, with room to grow again, while the yield remains excellent.Two analysts have weighed in on PMT, weighing the risks, the coronavirus hit, and the predicted earnings loss in Q1 against the company’s overall position, and both see the stock as a buying proposition.Credit Suisse analyst Douglas Harter expects PennyMac to outperform, although he does lower his price target, citing “the expected book value decline in the first quarter and further multiple contraction given the volatility in the mortgage market, as well as funding pressures across the fixed income landscape.” Harter’s target, $15, still implies an upside of 55% and supports his Buy rating. (To watch Harter’s track record, click here)From Piper Sandler, Kevin Barker takes a more bullish position. He writes, “We expect the stock to remain resilient relative to peers given the company’s liquidity and capital profile, which ultimately should lead to a more stable equity base.” Barker gives PMT a Buy rating, and his $22 price target suggests a powerful 159% upside appreciation. (To watch Barker’s track record, click here)All in all, with a share price of $9.64 and a consensus average price target of $21.33, PMT shares offer investors a chance for 121% share growth this year. The analyst consensus rating, a Strong Buy, is unanimous, based on 3 Buy reviews. (See PennyMac stock analysis on TipRanks)Canadian Natural (CNQ)The energy industry is known for generating high cash flows and paying out generous dividends. Canadian Natural, a hydrocarbon exploration company in Canada’s energy sector, is a major name in Western Canadian Sedimentary Basin, where is owns the largest undeveloped acreage base. The company is a major independent producer of natural gas, and Canada’s largest heavy crude oil producer. CNQ also operates in the North Sea and off the coast of West Africa.In March of this year, CNQ announced its quarterly dividend of 42.5 cents Canadian (31.75 cents US at the time of announcement). The new dividend was a 9.4% increase in the quarterly payment. At $1.27 in US currency, the annualize payment gives a yield of 9.4%, far higher than the average dividend yield among S&P listed companies (~2%) and US Treasury bonds (less than 1%). The dividend announcement marked the fourth payment increase in the past three years for CNQ.CNQ’s dividend was supported by strong financial performance in 2019. The company generated record cash flows of $10.3 billion, with a free cash flow of $4.6 billion. High production levels, also a company record, underlay the company’s cash flow generation. CNQ reported 1.098 billion barrels of oil equivalent in production for the year, 2% higher than the year before despite a difficult price environment.Covering the stock for CIBC, analyst Jon Morrison is favorably impressed by CNQ’s management. He writes, “We view CNQ as a company that is focused on building a long-term enduring business that is structured to handle the inevitable industry cycles and is focused on controlling that which is within its control.”In line with this upbeat view of the company, and its prospects for weathering current economic difficulties, Morrison rates CNQ a Buy, with a price target of C$34 (US$24.45). His price target implies a robust 12-month upside potential for the stock of 191%. (To watch Morrison’s track record, click here)All in all, Canadian Natural is another Strong Buy stock, based on the analyst consensus rating. The rating is based on 12 reviews, split between 9 Buys and 3 Holds. Shares are priced at a discounted US$13.47, and the average price target of US$22.34 indicates room for nearly 88% upside over the next 12 months. (See Canadian Natural stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

How far off is Canadian Natural Resources Limited (TSE:CNQ) from its intrinsic value? Using the most recent financial...

Earthstone Energy's (ESTE) first-quarter earnings are likely to have been aided by higher oil and gas production.

Contribution from acquired assets is expected to have placed Canadian Natural Resources (CNQ) well for significant output growth in the to-be-reported quarter.

In recent weeks, the coronavirus conversation has shifted. We’re starting to talk about the great reopening, the restart of the economy after months of enforced shutdowns. The practical effects will be played out in the various states, as some stay in lockdown while others move, in a range of ways, to restart the business of living.The results will inform the national debate, whether we’ll see the grim path of a prolonged recession, the rosy case of a V-shaped recovery, or something in between. But a full recovery is for the long-term; closer in, the risks are greater. Writing on the markets for Goldman Sachs, chief US equity strategist David Kostin says, "Basically, all of the good and optimistic outlook is basically priced into the market today. So where the market’s trading now, I would say the asymmetry of upside [is] perhaps 2%, the downside maybe 15%.”Referring to the risks, Kostin writes, “A single catalyst may not spark a pullback, but a number of concerns and risks exist that we believe… investors are downplaying.” Among the risks Kostin delineates for investors are a possible 15% unemployment rate, companies slashing dividends in the second half of the year, an uneven and dragged-out economic recovery, and the uncertainties of the November Presidential election.So, coming from this background, it’s significant that the stock analysts at Goldman Sacks are finding bullish calls. Using a more selective, risk-averse approach, fitting for their firm’s general stance, they’ve found a series of compelling Buys in today’s markets. We’ve used the TipRanks database to pull up the details on three of Goldman Sachs’ recent stock picks.Axalta Coating Systems (AXTA)Perhaps best known to casual observers as a major NASCAR sponsor, Axalta is a stalwart of the automotive coatings industry. More than just paint and finishes, high-tech industrial coatings seal and protect the surface of the vehicle. Axalta develops and produces coatings for industrial and refinishing applications, as well as for light and commercial vehicles. The company boasts a market share of $4.94 billion, and a line-up of 10 product brands in six distinct niches.Like many companies, Axalta saw hard times in the first quarter 2020, as EPS declined 8.8% to 31 cents. Looking forward, Wall Street expects to see further declines in Q2, to a net loss of 13 cents. The declines come as the coronavirus economy – with enforced shutdowns – has slowed or stopped both production and sales. AXTA shares have underperformed the broader markets in the current rally, and are still 30% below their late-February peak.While Axalta is in a doldrums now, 5-star analyst Robert Koort from Goldman Sachs is optimistic that the company can bounce back quickly. He cites experience in China, were Axalta’s refinish business is already improving as that country implements economic restarts in hard-hit regions.Koort writes, anticipating the US economic reopening, “…looking forward there is basis for optimism. The company is looking at three key variables: lifting of stay-at-home orders impacting the Refinish business, the pace of Auto OEM production following ramp out of shut-downs, and broad consumer demand. Additionally, Axalta expects Refinish customers to get out in front of the demand recovery following the lift of stay-at-home orders, which could drive a restocking-driven demand surge off of currently low inventory levels.”In line with his upbeat outlook here, Koort has upgraded AXTA stock from Neutral to Buy. His $25 price target implies a 12-month upside potential of 19%. (To watch Koort’s track record, click here)AXTA shares get a Strong Buy from the analyst consensus rating, based on not fewer than 12 Buy ratings outweighing 4 Holds. Shares are priced low at $19.20, while the $22.38 average price target suggests a modest 6.5% premium in the coming year. (See Axalta stock analysis on TipRanks)ConocoPhillips (COP)The first stock on our list of Goldman Sacks recommendations is ConocoPhillips, a giant of the energy industry’s upstream (exploration and production) sector. COP, the world’s largest upstream hydrocarbon company, boasting a $47 billion market cap, finished last year with $7.2 billion in net income, or $6.40 per share.The company beat earnings estimates in a difficult Q1 environment, despite a year-over-year decline. EPS came in at 45 cents, more than double the 21-cent forecast. Revenues were down heavily, at $4.8 billion, and missed the estimates by 26%. In revenues and share price performance, COP has underperformed the markets this year.In a point of great interest to income-minded investors, ConocoPhillips raised its dividend in Q4 and has maintained the new, higher payment. At 42 cents per share quarterly, the dividend annualizes to $1.68 and offers a yield of 4.11%, more than double the average dividend yield found among S&P-listed companies. The payout ratio, at 93%, is high, but indicates that COP’s dividend remains affordable even after the drop in earnings.Goldman Sachs analyst Neil Mehta believes that COP’s current low share price represents a buying opportunity. Mehta writes, “…we believe we are seeing micro/macro fundamentals bottoming and expect ConocoPhillips to be a strong participant in the upcoming oil price upcycle, given the level of underperformance relative to large cap US majors to date, as well as the company’s strong leverage to Brent.”"As investors filter through the Energy sector looking for quality companies on sale, we believe that ConocoPhillips is one that will be able to emerge from the downcycle with its financial position still showing resilience," Mehta added.Mehta’s $51 price target supports his Buy rating, and implies a 17% upside to the stock. (To watch Mehta’s track record, click here)In general, the rest of the Street is on the same page. 15 Buy ratings compared to 2 Holds assigned in the last three months give it a ‘Strong Buy’ analyst consensus. However, at the $46 average price target, shares could surge just 6% over the next twelve months. (See ConocoPhillips stock analysis on TipRanks)Canadian Natural (CNQ)Staying with the energy industry, we now take a look at Canadian Natural. This company is the largest landholder in the Western Canadian Sedimentary Basin, major oil- and gas-bearing formation. CNQ is the largest heavy crude oil producer in Canada, and a major player in the natural gas industry. The company has also diversified outside of Canada, and controls several offshore operations in the North Sea and off the West African coast.CNQ reported a 2% increase in total production last year, showing 1.098 billion barrels of oil equivalent for 2019. The company also reported a free cash flow of $4.6 billion, giving a firm foundation going into 2020. That was a fortunate, as Q1 of this year saw a sharp drop in earnings, as CNQ posted its first net loss in 5 quarters. EPS came in at minus 33 cents, a far cry from the expected 4-cent profit.Even though CNQ showed a net loss in Q1, the company maintained its dividend payment. Canadian Natural has a long history of keeping those payments reliable, and also of paying out a high yield. At 7.2%, the stock’s dividend yield is more than double the 3.04% sector average, and more than triple the S&P 500 average. And, it absolutely clobbers US Treasury bonds, which are yielding below 1%.Goldman’s Neil Mehta notes four reasons to Buy this stock, but citing two will suffice to show his bullish stance: “First, as detailed here and here, we have shifted our more negative oil view and defensive Energy equities stance to a more positive/offensive one over the last three weeks. CNQ has strong leverage to an oil and natural gas price recovery that we anticipate. Second, we see sufficient liquidity to make it through the 2020 downcycle and see the company well positioned in 2021-2022 to delever (sic).” To this end, Mehta upgrades the stock to Buy, and his $21 price target indicates his confidence in a 12% upside potential from current levels. With 14 recent review, breaking down to 11 Buys, 2 Holds, and 1 Sell, CNQ shares have a Moderate Buy rating from the analyst consensus. The stock sells for $18.74, and the $20.49 average price target implies an upside of 9%(See Canadian Natural stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

(Bloomberg) -- The coronavirus challenge facing Canada’s oil sands grew with a new outbreak in Canadian Natural Resources Ltd.’s Horizon site.Five cases of Covid-19 have been identified that are linked to the Northern Alberta oil sands mine and crude upgrader, Dr. Deena Hinshaw, chief medical officer of health for the province, said in a press conference Wednesday. Horizon is the second oil sands site to register an outbreak after Imperial Oil Ltd.’s Kearl mine’s first cases in mid-April. The Kearl outbreak has grown to 107 cases as of Wednesday, Hinshaw said.The pandemic is hitting the world’s third-largest crude reserve at a time when several operations undergo maintenance that typically requires thousands of workers to fly in and lodge in close quarters at remote camps. Both Horizon and Kearl are currently going through repair work. The fact that the pandemic has largely been contained to two work sites out of hundreds across the province indicates that producers have done a good job at preventing infections, Alberta Premier Jason Kenney said Wednesday in the press conference.“This is very limited,” he said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

(Bloomberg) -- Saudi Arabia’s sovereign wealth fund built stakes in two major Canadian oil sands players during the energy market rout.The Public Investment Fund amassed shares in Calgary-based Canadian Natural Resources Ltd. and Suncor Energy Inc., with a 2.6% and 2% stake in the companies, respectively. PIF is now the eighth largest shareholder in Canadian Natural and 14th largest in Suncor, according to data compiled by Bloomberg.The fund also bought stakes in Equinor ASA, Royal Dutch Shell Plc, Total SA and Eni SpA, according to a Bloomberg report earlier in April. Saudi Arabia’s $320 billion sovereign wealth fund is run by Yasir Al-Rumayyan and controlled by Crown Prince Mohammed bin Salman.Read more: Saudi Wealth Fund Builds Stakes in European Energy GiantsThe Saudi purchase is disclosed at a time when Norway’s wealth fund is dumping oil-sands companies. The latter said this week it will exclude Canadian Natural, Cenovus Energy Inc., Suncor, and Imperial Oil Ltd. over concerns about carbon emissions.Canadian oil producers have announced that almost 700,000 barrels per day of oil production is offline amid low prices and weak demand because of the coronavirus pandemic.Shares of Canadian Natural have lost 43% this year, while Suncor is down 46% versus a 15% drop for the S&P/TSX Composite Index.Suncor elected to slash its quarterly dividend 55% earlier this month, while Canadian Natural maintained its current payout.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Canadian Natural Resources (CNQ) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.