Tudor, Pickering, Holt on Monday reiterated its hold rating on the shares of Canadian Natural Resources (CNQ.TO) with a C$50.00 price target after the company completed an oil-sands asset swap with Shell (SHEL).
"CNQ announced this morning that the transaction involving the swap of its 10% interest in the Scotford Upgrader and Quest CCS facilities for SHEL's remaining 10% interest in the Albian oil sands mines has now closed. The transaction TPHe improves CNQ's bitumen netback while allowing the company to push optimization further at the mine (now 100% ownership), with SHEL to benefit by increasing its share to SCO production while boosting its carbon capture asset base (20% pro-forma ownership for SHEL). CNQ's guidance was refreshed accordingly, with the ~31mbopd that the transaction is expected to add to CNQ's production base at the mine-level on an annualized basis translating to revised guidance for FY'25 of 1,560-1,580mboepd from the prior 1,510-1,555. Capex was also refreshed, and now also factors in C$690MM in unbudgeted acquisitions (primarily the Grande Prairie liquids-rich Montney assets, closed July 2025), totaling C$6.68B," analyst Jeoffrey Lambujon wrote.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 44.85, Change: -0.02, Percent Change: -0.04
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