This energy company plans to increase capital spending to C$4.3 billion this year, a rise of 23% from 2021. The shares have an annual dividend yield of 3.63%, paid quarterly.
Canadian Natural Resources Limited (CNQ)
From Internet Wealth Builder
Canadian Natural Resources is one of the largest exploration and production oil and gas companies in Canada, with long established entrepreneur Murray Edwards a major shareholder. It owns production facilities in Western Canada, the North Sea, and offshore Africa.
In 2021, it produced 1.235 million barrels of oil equivalent (boe), up from 1.17 million boe in 2020. It aims to raise that further to 1.27-1.32 million boe in 2022, of which 46% will be light and synthetic crude, 28% heavy, and 26% natural gas.
This is one of the best performing oil and gas stocks over the long term, up over 60% over the
last five years. That compares to a 5% decline for the iShares S&P/TSX Energy sector and 10% drop for the US S&P Energy sector. This outperformance reflects CNQ’s excellent management
and disciplined capital allocation.
CNQ says it expects to spend around $4.3 billion in capital expenditure in 2022, up from $3.5
billion last year. Of this, $3.6 billion would be base capital spending and $700 million strategic growth spending.
CNQ actually increased its dividend in 2020 by 3% when other major oil companies such as Suncor, BP, and Royal Dutch Shell were reducing them substantially as oil fell to $30 a barrel. It
further increased it in 2021 by 27%, to $0.5875 per quarter ($2.35 a year).
CNQ remains a Buy for its increasing oil production, strong cash generation and rising dividend yield. It remains the best managed major oil company in North America.
Gavin Graham in Gordon Pape’s Internet Wealth Builder, buildingwealth.ca, 1-888-287-8229, January 31, 2022