Canadian Natural Resources Ltd (NYSE:CNQ) reported a revenue increase in Q3 attributed to stronger production and recent asset acquisitions.
The company, involved in energy production across North America, the U.K. North Sea, and offshore Africa, posted net earnings of C$600 million ($425.3 million), or C$0.29 per share, down from C$2.27 billion or C$1.06 per share a year prior.
The latest results reflect a C$1.2 billion non-operating loss tied to share-based compensation and risk management. Production expenses, transportation, and feedstock costs rose compared to last year, contributing to a C$290 million foreign exchange loss with a projected gain in 2024.
Adjusted earnings on a per-share basis increased to C$0.86, surpassing the analyst forecast of C$0.78. Product sales grew to C$11.07 billion from C$10.4 billion, while revenue, after royalties, rose 7% to C$9.52 billion. Analysts had expected revenue of C$9.66 billion.
Crude oil and natural gas liquid prices fell 8% year-over-year, though natural gas prices rose 19%. Quarterly production volumes averaged 1.62 million barrels of oil equivalent per day, aligning with analyst expectations. Overall production saw a 19% increase or about 257,000 oil-equivalent barrels a day.
The company forecasts production between 1.56 million and 1.58 million barrels for the full year, reflecting growth from existing assets and new acquisitions. Recently, Canadian Natural acquired a 10% stake in the Athabasca oil sands project in exchange for its interest in Shell's Scotford upgrader and Quest carbon capture facilities. This acquisition follows a previous C$6.5 billion deal for Chevron’s 20% interest in the same project.
#Investor Takeaway
The revenue increase reflects Canadian Natural's successful production growth and strategic acquisitions.
#Market Impact
The positive earnings results and robust production forecasts may enhance investor confidence and influence share performance in the energy sector.
#What’s Next
Investors should monitor upcoming financial disclosures and the impact of new acquisitions on overall production and earnings.