Hillcrest Energy Technologies. (CSE: HEAT)
From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future.
On October 31, the Calgary-based oil and gas giant Canadian Natural Resources (TSX:CNQ) reported quarterly results that exceeded expectations, leading to a stock price increase. The latest financial report reaffirms that, apart from the 4.7% dividend yield, this Canadian oil and gas stock has very solid fundamentals, making it suitable for long-term holding.
Year-to-date, the stock has yielded 9.4%, with a market capitalization around CAD 100 billion.
CNQ reported a third-quarter profit of $1.66 billion, with net earnings of 77 cents per share and adjusted earnings of 71 cents per share, surpassing Wall Street expectations. Additionally, quarterly revenues were $7.62 billion, with adjusted revenues of $6.52 billion, also exceeding market forecasts.
Over the past four quarters, the company has exceeded earnings per share expectations three times and revenue expectations four times.
In Q3 2024, Canadian Natural Resources’ production reached about 1.36 million barrels of oil equivalent per day (BOE/d), an increase of approximately 6% from the previous quarter. This growth was primarily driven by oil sands mining and upgrading operations, with synthetic crude oil daily production reaching 498,000 barrels. The company’s revenue mainly comes from oil and gas production in the North American market, with recent quarterly performance clearly showcasing the advantages of its diversified asset base.
In addition to strong production data, Canadian Natural Resources recently announced two strategic acquisitions. The company plans to acquire a 20% stake in Chevron’s Athabasca Oil Sands Project, increasing its total ownership to 90%, which will add 62,500 barrels of synthetic crude oil per day, further strengthening its position in the Canadian oil sands industry.
Furthermore, the company announced plans to acquire a 70% interest in Chevron’s Duvernay assets in Alberta, expecting to contribute approximately 60,000 BOE/d of light crude oil and liquids-rich natural gas starting in 2025.
Canadian Natural Resources currently has a dividend yield of 4.7% and a solid dividend growth track record, making it one of the most attractive and reliable dividend stocks in the Canadian energy sector. Meanwhile, CNQ continues to expand its asset base through acquisitions, which will improve the company’s financial growth trend in the coming years, supporting stock price appreciation and dividend payments.
