Core Insights - The author has over 10 years of experience researching companies across various sectors, including commodities and technology, which provides valuable insights for readers [1]. Company Research - The author has conducted in-depth research on over 1000 companies, covering industries such as oil, natural gas, gold, copper, and technology companies like Google and Nokia [1]. - The focus has shifted to a value investing-oriented YouTube channel after three years of blogging, where hundreds of companies have been researched [1]. - The preferred sectors for coverage include metals and mining stocks, along with comfort in consumer discretionary/staples, REITs, and utilities [1].

Group 1 - The current market presents a favorable environment for value investors, particularly in sectors such as energy, pharmaceuticals, and real estate, which are trading at low valuations [2] - The focus is on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] Group 2 - The investment strategy emphasizes defensive stocks with a medium- to long-term investment horizon [2]

Group 1 - The article promotes a research service focused on various income-generating investment vehicles such as REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs, highlighting its extensive research capabilities and positive user testimonials [1] - It mentions that there are 438 testimonials, with most being rated 5 stars, indicating high customer satisfaction and trust in the service [1] Group 2 - The article includes a disclosure from the analyst stating a beneficial long position in several companies, which may influence the analysis presented [2] - It clarifies that the opinions expressed are those of the author and not influenced by compensation from any mentioned companies, ensuring transparency in the analysis [2] Group 3 - The article contains a disclaimer from Seeking Alpha, emphasizing that past performance does not guarantee future results and that no specific investment advice is being provided [3] - It notes that the views expressed may not reflect those of Seeking Alpha as a whole, indicating a diversity of opinions among its analysts [3]

Core Insights - Canadian Natural Resources Limited (CNQ) reported second-quarter 2025 adjusted earnings per share of 51 cents, exceeding the Zacks Consensus Estimate of 44 cents, but down from 64 cents in the same quarter last year due to lower realized oil and natural gas liquid prices [1][11] - Total revenues for the quarter were $6.3 billion, a decrease from $6.6 billion in the prior-year period, but slightly above the Zacks Consensus Estimate by $5 million [2][11] Financial Performance - The company returned approximately C$1.6 billion to shareholders in Q2 2025, which included C$1.2 billion in dividends and C$0.4 billion from the repurchase of 8.6 million common shares at a weighted average price of C$41.46 per share [4][11] - Net earnings for the quarter were approximately C$2.5 billion, with adjusted net earnings from operations around C$1.5 billion [5] - Cash flows from operating activities totaled approximately C$3.1 billion, while adjusted funds flow reached approximately C$3.3 billion [5] Production and Prices - CNQ reported quarterly production of 1,420,358 barrels of oil equivalent per day (Boe/d), a 10.5% increase from the prior-year quarter, although it fell short of the model projection of 1,543,882 Boe/d [7] - Oil and NGL output increased to 1,019,149 barrels per day (Bbl/d) from 934,066 Bbl/d a year ago, but also missed the model projection of 1,137,442 Bbl/d [7] - Natural gas volumes totaled 2,407 million cubic feet per day (MMcf/d), up 14.1% from 2,110 MMcf/d in the year-ago period, yet below the model projection of 2,439 MMcf/d [8] Costs and Capital Expenditure - Total expenses in the quarter were C$5.9 billion, down from C$6.8 billion in the prior-year period, primarily due to lower blending and feedstock expenses [15] - Capital expenditure for the quarter totaled C$3 billion, compared to C$2 billion a year ago [15] Balance Sheet - As of June 30, 2025, CNQ had cash and cash equivalents of C$102 million and long-term debt of approximately C$15.7 billion, with a debt to capitalization ratio of about 27.6% [16] Guidance - CNQ's capital budget for 2025 remains unchanged at $6.05 billion, excluding abandonments, with a production target in the range of 1,510-1,555 thousand barrels of oil equivalent per day [17]

Group 1 - The article discusses the performance and investment outlook of LandBridge (LB) and Texas Pacific Land (TPL), both of which are under pressure due to the current state of the oil and gas market [1] - The author holds a long position in TPL, LB, and CNQ, indicating a personal investment interest in these companies [1] Group 2 - The article emphasizes the importance of thorough research and analysis in making investment decisions, particularly in the context of REITs and other income alternatives [1]

Financial Performance - Product sales for Q2 2025 were $9,675 million, a decrease of 23.9% from Q1 2025's $12,712 million and an increase of 11.7% from Q2 2024's $10,622 million[14]. - Net earnings for Q2 2025 were $2,459 million, remaining stable compared to Q1 2025's $2,458 million and up 43.3% from Q2 2024's $1,715 million[14]. - Adjusted net earnings from operations for Q2 2025 were $1,496 million, down 38.5% from Q1 2025's $2,436 million but up 9.4% from Q2 2024's $1,892 million[14]. - The basic earnings per common share for Q2 2025 was $1.17, unchanged from Q1 2025 and up 46.3% from Q2 2024's $0.80[14]. - Net earnings for the six months ended June 30, 2025, were $4,917 million, a 82% increase from $2,702 million for the same period in 2024[16]. - Adjusted net earnings from operations for the six months ended June 30, 2025, were $3,932 million, an increase from $3,366 million in 2024[126]. Cash Flow and Expenditures - Cash flows from operating activities for Q2 2025 were $3,114 million, a decrease of 27.3% from Q1 2025's $4,284 million and an increase of 23.4% from Q2 2024's $4,084 million[14]. - The company reported adjusted funds flow of $3,262 million for Q2 2025, down 28.0% from Q1 2025's $4,530 million but up 3.9% from Q2 2024's $3,614 million[14]. - Net capital expenditures for Q2 2025 were $1,915 million, an increase of 47.0% from Q1 2025's $1,303 million and an increase of 17.1% from Q2 2024's $1,621 million[14]. - Cash flows from operating activities for the six months ended June 30, 2025, were $7,398 million, up from $6,952 million for the same period in 2024[20]. - Net capital expenditures for the six months ended June 30, 2025, were $3,218 million, up from $2,734 million for the same period in 2024, representing a 17.7% increase[136]. Production and Sales Volumes - Crude oil and NGLs production before royalties for the second quarter of 2025 was 1,019,149 bbl/d, a 9% increase from 934,066 bbl/d in the second quarter of 2024[22]. - Total crude oil and NGLs production was 1,019,149 bbl/d for the three months ended June 30, 2025, compared to 934,066 bbl/d for the same period in 2024[44]. - North America crude oil and NGLs production before royalties for the six months ended June 30, 2025 averaged 553,482 bbl/d, a 10% increase from 502,636 bbl/d for the same period in 2024[52]. - Total sales volumes for crude oil and NGLs in Q2 2025 were 558,526 bbl/d, compared to 588,896 bbl/d in Q1 2025, indicating a decline of approximately 5.7%[183]. Pricing and Market Conditions - Realized crude oil and NGLs prices averaged $69.58 per bbl for the second quarter of 2025, a decrease of 20% from $86.64 per bbl in the second quarter of 2024[23]. - The global crude oil benchmark pricing declined through the second quarter of 2025, influenced by demand outlook concerns and OPEC+ output hikes[31]. - North America realized crude oil and NGLs prices decreased 19% to an average of $69.30 per bbl for Q2 2025 compared to $85.49 per bbl for Q2 2024[64]. - The average crude oil and NGLs price for North America was $73.95 per bbl for the six months ended June 30, 2025, down 4% from $76.94 per bbl for the same period in 2024[64]. Expenses and Cost Management - Production expense for crude oil and NGLs averaged $14.03 per bbl in the second quarter of 2025, a decrease of 4% from $14.54 per bbl in the second quarter of 2024[27]. - The company experienced fluctuations in production expenses due to increased carbon tax, fluctuating energy costs, and inflationary cost pressures[34]. - North America crude oil and NGLs production expense averaged $12.28 per bbl for the six months ended June 30, 2025, a decrease of 9% from $13.56 per bbl for the same period in 2024[77]. - Transportation expense averaged $3.44 per bbl for the six months ended June 30, 2025, an increase of 56% from $2.21 per bbl for the same period in 2024[93]. Debt and Liquidity - As of June 30, 2025, the company had approximately $4,825 million in liquidity, including undrawn revolving bank credit facilities of $4,723 million[33]. - Long-term debt was $16,979 million, down from $18,688 million at the end of 2024, resulting in a debt to book capitalization ratio of 29.1%[150]. - The company’s adjusted working capital increased to $102 million as of June 30, 2025, compared to $20 million at the end of the first quarter[144]. - The company’s liquidity position includes readily available undrawn bank credit facilities and cash equivalents, which are crucial for meeting short-term funding requirements[200]. Strategic Initiatives - The company plans to acquire working interests in AOSP and Duvernay assets in the fourth quarter of 2024, impacting future production volumes[34]. - The 2025 capital budget is targeted at approximately $6,050 million, aimed at near-term production growth and includes $135 million for carbon capture and office relocation[138]. - The company continues to utilize commodity derivative financial instruments to hedge against price volatility, allowing for the hedging of up to 60% of the next 12 months' budgeted production[152].

Core Insights - Canadian Natural Resources (CNQ) reported a revenue of $6.29 billion for the quarter ended June 2025, reflecting a year-over-year decline of 5% [1] - The earnings per share (EPS) for the same period was $0.51, down from $0.64 a year ago, but exceeded the consensus estimate of $0.44 by 15.91% [1] Financial Performance - The reported revenue of $6.29 billion slightly surpassed the Zacks Consensus Estimate of $6.28 billion, resulting in a surprise of +0.09% [1] - The company’s stock has returned -2% over the past month, while the Zacks S&P 500 composite increased by +1.2% [3] Production Metrics - Total average daily production was 1,420,358 BOE/D, below the analyst estimate of 1,467,614 BOE/D [4] - Oil & liquids average daily production was 1,019,149 BBL/D, compared to the estimate of 1,051,255 BBL/D [4] - Natural gas average daily production was 2,407 million cubic feet per day, slightly below the estimate of 2,427.79 million cubic feet per day [4] - Thermal In Situ Oil production was 274.79 thousand barrels per day, compared to the estimate of 283.52 thousand barrels per day [4] - Oil Sands Mining and Upgrading production was 463.81 thousand barrels per day, below the estimate of 486.95 thousand barrels per day [4] - North Sea Oil production was 7.76 thousand barrels per day, significantly lower than the estimate of 11.92 thousand barrels per day [4] - Offshore Africa Oil production was 1.77 thousand barrels per day, compared to the estimate of 7.21 thousand barrels per day [4] - North America Natural Gas production was 2,398 Mcf/D, below the estimate of 2,452.11 Mcf/D [4]

Group 1 - The article promotes iREIT on Alpha as a source for in-depth research on various investment vehicles including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] - It highlights the positive feedback from users, with 438 testimonials, most rated 5 stars, indicating a strong reputation in the investment community [1] Group 2 - The article includes a disclosure from the analyst stating a beneficial long position in shares of TPL, LB, and CNQ, indicating personal investment interests [2] - It clarifies that the opinions expressed are those of the author and not influenced by compensation from any company mentioned [2] Group 3 - Seeking Alpha emphasizes that past performance does not guarantee future results, indicating a cautious approach to investment advice [3] - The platform notes that its analysts are third-party authors, which may include both professional and individual investors without formal licensing [3]

Core Viewpoint - Canadian Natural Resources Limited (CNRL) reported strong financial performance in Q2 2025, driven by effective capital allocation, operational efficiencies, and successful acquisitions, which collectively enhance shareholder value. Financial Performance - In Q2 2025, CNRL generated adjusted net earnings of approximately $1.5 billion or $0.71 per share, with adjusted funds flow of $3.3 billion or $1.56 per share [7][9][12] - The company returned approximately $1.6 billion to shareholders in Q2 2025, including $1.2 billion in dividends and $0.4 billion in share repurchases [7][15] - For the first half of 2025, net earnings totaled approximately $4.9 billion, reflecting a significant increase from $2.7 billion in the same period of 2024 [9][12] Production and Operations - CNRL's total production in Q2 2025 was approximately 1,420,358 BOE/d, a 10% increase from Q2 2024 levels, despite a production reduction of about 120,000 bbl/d due to a planned turnaround at the Athabasca Oil Sands Project (AOSP) [3][13] - Oil Sands Mining and Upgrading production averaged 463,808 bbl/d in Q2 2025, a 13% increase from Q2 2024, attributed to successful operational enhancements [29][32] - The company achieved high upgrader utilization of 106% in July 2025, with expectations for continued strong operating results in the second half of 2025 [2][32] Capital Allocation and Acquisitions - CNRL successfully completed a planned turnaround at AOSP five days ahead of schedule and on budget, enhancing production reliability [2][3] - The company closed an acquisition of liquids-rich Montney assets for approximately $750 million, adding about 32,000 BOE/d to production [7][17] - CNRL's business model allows for a top-tier WTI breakeven in the low to mid-US$40 per barrel range, ensuring sufficient cash flow to cover maintenance capital and dividends [8][9] Cost Management - Operating costs in the Duvernay assets averaged $8.43/BOE in Q2 2025, a decrease of 11% from Q1 2025 levels, reflecting continuous improvement efforts [5][27] - The company achieved strong capital efficiencies in its drilling programs, targeting to drill 182 net primary heavy crude oil multilateral wells in 2025, an increase of 26 wells from the original budget [4][24] Market Conditions - The WTI benchmark price averaged US$63.71/bbl in Q2 2025, reflecting a decrease from previous quarters due to weaker global demand and increased OPEC+ output [33][36] - The SCO price averaged US$64.69/bbl in Q2 2025, representing a premium to WTI pricing, which improved compared to previous quarters [33][36]

Core Viewpoint - Canadian Natural Resources Limited (CNQ) is expected to report second-quarter 2025 earnings of 44 cents per share on revenues of $6.28 billion, reflecting a year-over-year decrease in both earnings and revenues [1][3][8]. Group 1: Recent Performance - In the last reported quarter, CNQ achieved adjusted earnings per share of 81 cents, surpassing the Zacks Consensus Estimate of 73 cents, with total revenues of $7.6 billion exceeding the estimate of $6.8 billion [2]. - CNQ has beaten the Zacks Consensus Estimate three times in the last four quarters, with an average surprise of 3.95% [3]. Group 2: Factors Influencing Q2 Performance - The company has seen a rebound in North America's natural gas prices, with Henry Hub spot prices averaging $3.19 per million British thermal units in Q2 2025, which is expected to support CNQ's realized pricing [5]. - CNQ's production growth is anticipated to be around 12% for the year, driven by recent acquisitions and ongoing drilling programs, contributing to increased output in Q2 2025 [6]. - However, revenues are projected to decline by 5.1% from the previous year due to poor performance in the Exploration and Production segments [7]. Group 3: Cost and Margin Pressures - The newly imposed U.S. tariffs on Canadian oil and gas exports since March 2025 are expected to create additional cost burdens and competitive disadvantages for CNQ, impacting margins and earnings [8][9]. - Total expenses for Q2 are estimated at C$7.13 billion, a 4.3% increase from C$6.80 billion in the same quarter last year, with production costs rising by 2.4% to C$2.03 billion [10].