Topic: How To Invest

Q: Hi, Pat. What do you think about Canadian Natural Resources Ltd.? It has bought some great assets from companies exiting Canada. Is it a good buy? Thanks.

Article Excerpt

A: Canadian Natural Resources, $40.63, symbol CNQ on Toronto (Shares outstanding: 1.2 billion; Market cap: $49.0 billion;, operates in Western Canada, where its 100%-owned Horizon Oil Sands Project is located; the North Sea; and off the coast of West Africa. Its overall product mix is about 79% oil and 21% natural gas. The company took advantage of “distressed” sales in early 2017, buying a 70% working interest in the Athabasca Oil Sands Project from Shell Canada and Marathon Oil. It also paid $12.7 billion to acquire 70% interest in the Scotford upgrader, which processes crude bitumen into synthetic crude oil. In September 2018, the company completed the acquisition of Laricina Energy Ltd. for $95 million. Also, in September 2018, it purchased 100% working interest in the Joslyn oil sands project for $100 million in cash on closing and annual cash payments of $25 million over each of the following five years. Earlier this year, Canadian Natural bought most of the assets of…

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