Canadian Pure Sources (TSX:CNQ) Stories Sturdy Q3 2021 Outcomes and Raises Dividend

Gas pipelines

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Canadian Pure Sources (TSX:CNQ)(NYSE:CNQ) continues to profit from the surge in oil and pure fuel costs.

CNRL Q3 earnings

CNRL generated adjusted funds circulate of $3.634 billion within the quarter in comparison with $1.74 billion in Q3 2020. For the primary 9 months of 2021, funds circulate from operations hit $9.395 billion in comparison with $3.492 billion in the identical interval final 12 months.

Adjusted web earnings got here in at $2.095 billion within the quarter. That’s up from $135 million in Q3 2020. It’s additionally up significantly from Q2 2021 when the corporate reported adjusted web revenue of $1.458 billion. For the primary three quarters of 2021, CNRL reported adjusted web earnings of $4.794 billion in comparison with a lack of $932 million in 2020.


CNRL delivered robust manufacturing development in comparison with Q2 2021 and the third quarter final 12 months. Pure fuel manufacturing got here in at 1,708 million cubic toes per day (MMcf/d). That’s up from 1,614 MMcf/d in Q2 2021 and 1,362 MMcf/d in Q3 2020.

On the oil facet, common manufacturing of crude oil and pure fuel liquids hit 952,889 barrels per day (bbl/d) — a acquire of greater than 9% from Q2 2021 and up 7.7% over Q3 2020.

CNRL has a diversified product combine that features oil sands, typical heavy oil, typical mild oil, offshore oil, pure fuel, and pure fuel liquids.

Stability sheet

CNRL continued to strengthen the steadiness sheet through the quarter, decreasing web debt by roughly $2.3 billion. Over the previous 12 months, CNRL lowered web debt by about $5.8 billion.

Dividends and share buybacks

The board introduced a 25% improve to the quarterly dividend. The brand new payout can be $0.5875 per share. CNRL raised the distribution by 11% in 2021 and has elevated the payout in every of the previous 22 years. The compound annual dividend-growth price over that point is 20%.

CNRL repurchased about 1% of its excellent widespread shares through the quarter in keeping with its buyback program.

CNQ inventory worth

CNRL noticed its share worth soar 2% on the open after the outcomes. The value of oil can be up greater than 2% from the day before today. CNRL’s share worth has gained greater than 75% in 2021. On the time of writing, the shares commerce close to $53.50 and provide a 4.4% annualized dividend yield on the new dividend stage.

Outlook for traders

CNRL is benefitting from greater manufacturing and rising oil and fuel costs. The corporate is a revenue machine within the present surroundings and can proceed to make use of extra money to scale back debt, purchase again shares, and enhance dividends.

Analysts broadly anticipate oil and pure fuel costs to stay excessive by the primary half of 2022. CNRL has already had an enormous run, so I wouldn’t again up the truck, however extra good points must be on the best way, and also you receives a commission nicely to carry the shares on the present worth. | Canadian Pure Sources (TSX:CNQ) Stories Sturdy Q3 2021 Outcomes and Raises Dividend


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