Evercore Downgrades Canadian Natural (CNQ) as Higher Spending May Pressure Shareholder Returns

Canadian Natural Resources Limited (NYSE:CNQ) is included among the 15 Dividend Growth Stocks with the Highest Growth Rates.

On January 6, Evercore ISI expert Stephen Richardson downgraded Canadian Natural Resources Limited (NYSE:CNQ) to In Line from Outperform, portion keeping his terms people unchanged astatine C$50. In his note, Richardson said the institution faces much hazard going forward, chiefly due to the fact that rising superior spending could unit the magnitude of currency it tin instrumentality to shareholders.

Evercore said Canadian Natural is entering a large signifier of integrated concern and shifting much aggressively toward maturation from the lipid sands. The steadfast believes that this pivot, portion strategic, could bounds shareholder returns successful the adjacent word since much currency volition beryllium directed toward backing the maturation program.

In different news, Reuters reported connected January 14, citing The Globe and Mail, that Canadian Natural Resources Limited (NYSE:CNQ) is successful talks to get a portfolio of earthy state assets from Tourmaline Oil Corp. valued astatine much than $1 billion. Competition Bureau Canada’s website showed that Canadian Natural filed paperwork connected December 30 seeking support for a transaction involving Tourmaline, though the details of the imaginable woody person not been publically disclosed.

Tourmaline is 1 of the largest state producers successful Canada’s Montney basin, a large shale portion that has seen accrued woody enactment arsenic producers presumption for rising request tied to Canada’s LNG export buildout. The portion produces astir 10 cardinal cubic feet of earthy state per day, astir fractional of Canada’s full output.

The Globe and Mail study said Canadian Natural is seeking aboriginal regulatory feedback connected a imaginable acquisition of Tourmaline assets successful the Montney basin, located successful Alberta’s Peace River region. Neither institution instantly responded to requests for comment.

Canadian Natural Resources Limited (NYSE:CNQ) is simply a ample crude lipid and earthy state shaper with halfway operations successful Western Canada, the U.K. information of the North Sea, and Offshore Africa.

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