Canadian Natural to Report Q4 Earnings: What's in the Offing?

Core Viewpoint - Canadian Natural Resources Limited (CNQ) is expected to report fourth-quarter results on March 6, with earnings estimated at 69 cents per share and revenues of $6.39 billion [1]. Group 1: Previous Quarter Performance - In the last reported quarter, CNQ achieved adjusted earnings per share of 71 cents, exceeding the Zacks Consensus Estimate of 69 cents, with total revenues of $6.5 billion, surpassing estimates by 1.9% [3]. - CNQ has beaten the Zacks Consensus Estimate three times in the last four quarters, with an average surprise of 3.87% [3]. Group 2: Fourth Quarter Estimates - The Zacks Consensus Estimate for fourth-quarter earnings indicates a 19.77% year-over-year decrease, while revenues are expected to decline by 8.92% compared to the previous year [4]. - Revenues are projected to decrease to $6,247.5 million from $7,018 million in the same quarter last year, primarily due to poor performance in the Exploration and Production segments [6]. Group 3: Revenue Breakdown - North America's revenues are anticipated to decline by 15.7% year-over-year, totaling C$3,735.5 million, while North Sea revenues are expected to decrease by 16.2% to C$138.2 million [7]. - Oil Sands Mining and Upgrading's revenues are projected to decrease by 7.3% year-over-year, amounting to C$4,190.9 million [7]. Group 4: Cost Management - CNQ's cost-reduction initiatives are expected to positively impact its bottom line, with total expenses projected to reach C$6,386.5 million, a 3.2% decrease from C$6,595 million in the previous year [8]. - Total depletion, depreciation, and amortization expenses are forecasted to decrease significantly to C$1,382.6 million, representing a 32.3% drop [9].