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

Nexen Management Discusses Q2 2012 Results - Earnings Call Transcript

I'd like to remind everyone, if you have detailed modeling questions, my IR team would be pleased to respond to those questions after the conclusion of the call. With that, I'll turn the call over to Kevin.

Kevin J. Reinhart

Thank you, Janet, and good morning, everyone. As always, we appreciate your time and interest this morning. I'm going to keep my comments quite brief as I'm assuming everyone has had a chance to read our news release.

Last quarter, I spoke about 4 topics that are very important to our business for 2012 and beyond. This quarter, let me again make a few comments on each of those 4 items.

First, we had a strong cash flow despite lower global oil prices. Cash flow was up 6% to over $700 million, primarily reflecting the inclusion of the Usan in our financial results for the first time. Netbacks at Usan are very strong. This quarter, they were almost double our corporate average net back from last year. Global oil prices were lower than the first quarter, but our waiting to Brent continues to benefit us compared to peers who have production link to either WTI or further discounted Canadian benchmark crudes.

Second, we met our production guidance again. We came at the midpoint at our guidance range which was slightly higher than what we had expected last conference call. This was due to a strong reliability run at Buzzard and good production late in the quarter from the Telford field in the UK.

We ramped up production at Usan during the quarter and we averaged about 100,000 barrels per day gross in line with our guidance. The Gulf of Mexico was at the low end of our guidance, as we previously indicated we had expected.

And lastly, we saw higher production in Canada, because of the delay in closing the shale gas joint venture. We have started the process for closing and expected to be concluded before the end of July. This will generate over $800 million of cash, including the reimbursement of capital we've incurred on our partner's behalf since the effective date of last July.

2 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 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs