This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Canadian Natural Resources Limited Management Discusses Q1 2012 Results - Earnings Call Transcript

Oil pricing continued to be volatile and continues today to be volatile, especially with respect to the discounts being charged in Canadian oil production in the first quarter, including synthetic crude oil. The discount climbed dramatically in the first quarter from the last quarter in 2011, as planned and unplanned maintenance issues caused a number of refinery shut-ins during the first quarter and into the early part of the second quarter. As expected, as these refineries are placed back online, the discount is tightening up again. Additional pipeline capacity, some of which is under construction and close to being completed, should also help to alleviate these discounts and the disconnect between Brent pricing and WTI pricing.

We are at a very strong financial position, with our operation providing cash flow to carry out our capital programs; take advantage of any opportunistic acquisitions that may arise; pay dividends, an increase of 17% over last year; and buy back shares if appropriate. Our teams are strong, and we are looking forward to carrying out our objectives over the remainder of 2012.

Now I'd like to turn the call over to Steve for a more detailed analysis on the properties. Steve?

Steve W. Laut

Thanks, John, and good morning, everyone. In the first quarter, Canadian Natural continued to execute our proven strategy, based on effective and efficient operations and optimizing capital allocation to ensure we maximize the return on capital, generate free cash flow, maintain our strong balance sheet through the price cycles, transition our asset base to a more sustainable long-term asset base and provide the ability to increase dividends on a consistent basis. Canadian Natural was one of the few companies in our peer group that has a strong, well-balanced and diverse asset base with significant upside in each component of our business. We have, on a consistent basis, been able to effectively allocate capital and maximize return on capital over the long run and throughout commodity price cycles. Today, with oil prices and low -- strong oil prices and low gas prices, Canadian Natural continues to allocate capital disproportionately to oil projects.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs