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Canadian Natural Resources Ltd.: Lock In This 4.5% Dividend Yield

Published Fri, 08 Nov 2019 14:28:59 -0500 on Seeking Alpha

Investment Thesis
On November 7th, 2019 Canadian Natural Resources Ltd. (CNQ) reported a great 3rd quarter, sending shares over 8% higher. In this earnings report, CNQ achieved record quarterly adjusted funds flow of approximately CAD $2.9B and free cash flow of CAD $1.9B. Despite this move in share price, Canadian Natural Resources remains undervalued and offers investors a compelling opportunity to lock in a great dividend yield with a company that has a 19-year record of 21% compound annual dividend growth. Canadian Natural Resources benefits from low decline-rate assets that don't require significant capital to maintain volumes. This asset structure enables the firm to generate significant free cash flow which has been used to grow the dividend, buy back shares and strengthen the balance sheet.

Source: Canadian Natural Resources
Company Profile
Canadian Natural Resources Ltd. was founded in 1973 in Calgary, Canada and has grown to become Canada's largest producer of oil. With a market capitalization of CAD $44B or USD $33B, Canadian Natural trades on both the TSX and NYSE. The company has its core operations located in Western Canada, the North Sea, and offshore Africa. CNQ has a mix of offshore, conventional, and oil sands mining assets. Its production mix as of Q3 2019 is 21% gas, 48% of light crude oil, and 31% heavy oil. Canadian Natural Resources is also the owner of massive undeveloped land reserves and boasts the largest reserve base of any Canadian... Read more