© Reuters Top Buy: Canada’s #1 $100 billion oil and gas producer
The writing had already been on the wall since the start of the year with oil prices soaring to record highs. April 20, 2022 is the day Canada produced a $100 billion oil and gas producer. Canada Natural Resources (:CNQ)(NYSE:CNQ) climbed to $86.43 at one point during trading to boost its valuation and hit a major milestone.
The top energy stock ended at $85.95 per share midweek after rising 1.72%. With its valuation of nearly $100 billion ($99.92 billion) at the close of the trading day, Canadian natural resources (TSX:) is now in the league of American oil giants Exxon Mobil (NYSE:), Chevron (NYSE:) and ConocoPhillips (NYSE:).
If you’re looking for the major commodities stocks to act as a safety net or safe haven, buy more CNQ or take a position if you don’t own the stocks yet. Current investors benefit from a year-to-date of 62.44% in addition to the dividend of 3.49%. According to market analysts’ high price target, the one-year return potential is 37% ($118).
Standing out in the year of COVID CNR edged out former oil indicator and industry rival Suncor Energy (TSX:) ($61.79 billion) with its record feat. Mark Rutherford, analyst at Mawer Investment Management, said: “This company is one of the biggest global players and therefore could attract more attention from international companies and should be compared to one of the world’s leading energy companies. .”
Many energy companies struggled to navigate 2020 when prices crashed due to price volatility and weak demand. However, the CNR stood out and even increased its dividends instead of stopping or reducing the payments. Its chairman, Tim McKay, credited CNR’s effective and efficient operations as well as its long-lived, low-decline asset base for strong first-year COVID results.
A solid asset base Last year, CNR’s unique and diversified asset base once again demonstrated its robustness. Its chief financial officer, Mark Stainthorpe, said: “The strength and sustainability of our business model was evident in 2021.” Net profit reached $7.66 billion, compared to a net loss of $435 million in 2020.
For Q4 2021, net income increased 238% to $2.53 billion from Q4 2020. Another highlight in 2021 was the 207% year-over-year increase in cash flow from operating activities at $14.47 billion.
The leading oil major rewarded its shareholders with two dividend increases (combined 38% increase). In addition to dividend payments of $2.2 billion, CNR repurchased $1.6 billion of its common stock. On March 3, 2022, the Board approved a 28% quarterly dividend increase to extend the dividend growth streak to 22 years.
CNR’s capital budget of $3.6 billion in 2022 includes strategic growth capital of $700 million. Management will invest the money in long-lived, low-decline assets as it aims to increase annual production from 2023. Additional production growth by 2025 would be around 63,000 barrels per year. day.
The company also has a substantial inventory of low capital exposure projects within its conventional asset base. Under the right economic conditions, CNR can execute them to offer excellent returns and maximize shareholder value.
Winning Commodities Stock Canadian Natural Resources, a winning commodities stock, deserves to be a core holding for income investors. Dividend growth is certain, despite economic downturns.
The post office Best buy: 1st $100 billion oil and gas producer in Canada appeared first on Motley Fool Canada.
Dumb Contributor Christopher Liew has no position in the stocks mentioned. The Motley Fool recommends CDN NATURAL RES.