Canadian Natural Resources beats profit estimates on higher prices

Canadian Natural Resources Ltd beat estimates for quarterly profit on Thursday, as higher prices for Canadian crude helped offset lower production.

The previous government of Alberta, Canada’s major oil-producing province, imposed curtailments in January in a rare step to drain a glut of oil in storage and lift prices.

Congested pipelines have caused the Canadian industry’s growth to lag that of other countries such as the United States, and soured investor sentiment.

Canadian Natural said average realized prices for crude and natural gas liquids ticked up 3.8 per cent, while natural gas prices climbed 1.5 per cent in the second quarter ended June 30.

The company, which in June bought U.S. oil and gas producer Devon Energy Corp’s assets in Canada for $3.8 billion, said quarterly daily production fell to 1.03 million barrels of oil equivalent per day (boepd) from 1.05 million boepd.

Net earnings rose to $2.83 billion, or $2.36 per share, in the second quarter ended June 30, from $982 million, or 80 cents, a year earlier.

On an adjusted basis, the company earned 87 cents per share, beating analysts’ estimates of 85 cents per share, according to IBES data from Refinitiv.

The industry is now in a situation where tens of companies are fighting for a much smaller pie than forecasted

Canada is considered one of the younger countries in the G7, thanks largely due to a steady flow of immigrants

The report says companies in Canada and abroad continued to operate after a worker tested positive leading to an outbreak, community transmission and in some cases deaths

Economic data pointing to a quick recovery, trillions of dollars in stimulus and a restart in business have helped the S&P 500 climb about 38% from its March lows