Canadian Natural Rsrcs (CNQ.TO) Buy, Sell or…

Canadian Natural Rsrcs (CNQ.TO)

78.42

+1.37 (1.78%)

as of Oct 30, 2026, 8:00:00 pm Market Closed.

1410 watching

STRONG BUY

Likes it very much, a huge oil producer with some natural gas production. Pays a 4.5% dividend--it's a cash cow. Also bought back $5.6 billion of shares in the past 12 months and aren't adding debt to do it. In fact, debt levels are strong. Executives own a lot of shares. Can buy at current prices though it's showing lower highs and lower lows recently, but he expects prices to climb

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TOP PICK

Stockchase Research Editor: Michael O'Reilly

At $80 WTI, CNQ is generating massive cash flow. In 2022 funds were up 66% and cash reserves are the highest level in at least 5 years and that is after paying down debt aggressively. This will be a play on forward global oil prices, but oil prices don't need to go higher to see a good return on this investment. It trades at 2.2x book and less than 5x cash flow and it supports a 32% ROE. Plus it pays a good dividend, backed by a payout ratio under 30% of cash flow. We recommend placing a stop-loss at $58, looking to achieve $92 -- upside potential of 17%. Yield 4.3%

(Analysts’ price target is $92.00)

BUY

Led by very strong management (Murray Edwards). Has bought shares in company. Very strong inventory depth. Can buy decades in inventory for nothing. Trading at 22$ cash flow yield @ $100 oil. Paying strong dividend. Expecting meaningful share appreciation.

TOP PICK

Are growing the dividend. They are retiring 1% of share each month. He's bullish oil. Now is an attractive entry point. (Analysts’ price target is $91.71)

HOLD

Another special dividend? Hard to say. Payout ratio about 30%, which isn't bad but not as low as some others like TOU. All he can say is that it's committed to returning value to shareholders.

TOP PICK

They have invested a lot in Oil Sands that will pay off. They will return more and more money to shareholders as debt declines. Any increase in oil benefits CNQ. Pays a good dividend. (Analysts’ price target is $91.55)

WEAK BUY

They beat Q3 on strong oil sands sales and raised their dividend 13%. Debt profile is improving that will see shareholder returns. Good dividend. Little production growth. Are better names in energy with a cheaper EV like Arc Resources. CNQ is still good and will do well along with the price of oil.

COMMENT

The question was on CNQ as compared to Cenovus. CNQ is dominant in exploration and production in Canada and he likes this space. Cenovus is more of an oil sands play and is popular with analysts' outlooks. It is very well run and maybe has a bit more of an upside that CNQ. He is not a trading fan and would give a slight edge to CNQ. On a more general note regarding the big oil companies, he would like to see capital expenditures become more dominant, rather than concentrating on just shareholder returns though dividends and buybacks. With such great free cash flows they should be able to do both.

TOP PICK

One of the largest energy companies in North America. Best natural gas stock to own in market. Believes 25% upside possible with ~4% dividend. Very healthy profit margins.

PAST TOP PICK

(A Top Pick Feb 03/21, Up 160%) Not bullish on energy prices. Cautious on the name. Darling amongst energy stocks with excellent dividend yield. Very strong management.

BUY

A great business that's executed and acquired well. Oil will be tighter than people think. After 2020, they all cut capex, paid down debt, bought back stock, increased dividends. They continue to do all this. Will continue to throw off lots of free cash.

DON'T BUY

Sell CNQ, buy SU? CNQ has a model price of $135.07, 65% upside. Where were investors 2 years ago, when they could have bought these stocks for pennies? SU doesn't have as high a valuation, has 100% upside. Neither is at a level he'd buy today, he'd want meaningful pullbacks.

BUY

He's overweight oil. It's still a tight market and will remain so, despite demand worries from China. CNQ is buying back shares, all good for shareholders. CNQ is dominant in this space, focusing on heavy crude oil. Is concerned of the widening price difference between WTI and WCS crude oil. Also likes Suncor, Crescent Point, Arc and Whitecap.

BUY

Has a 22% free cash flow yield. Look for share buybacks and variable dividends. Has one of the smartest managers. A large cap which has the same upside as smaller caps but without the volatility. Very high quality.

BUY

Global slowdown is real. One of those names you can put in your RRSP and forget it. Well diversified, lots of free cashflow, dividends and buybacks. Safe bet at these levels. Yield about 4.1%.

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Canadian Natural Rsrcs (CNQ.TO)