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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (27020)	2/23/2005 7:56:57 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 110194

re: CNQ...Those were the days my friend, methinks a better tune may be "Happy Days Are Here Again"... TTM C/F works out to CAD$14.06 per share, so CNQ is trading at less than 3.25x cash flow. good thing energy's not in a bull market, or somebody might think this stock's still cheap. HIGHLIGHTS - Record annual net earnings of $1.4 billion ($5.24 per common share), comparable to the $1.4 billion ($5.23 per common share) in 2003. Record adjusted net earnings from operations amounted to $1.4 billion ($5.24 per common share) compared with $1.0 billion ($3.68 per common share) in 2003. - Record annual cash flow of $3.8 billion ($14.06 per common share), compared with $3.2 billion ($11.77 per common share) in 2003. - Record quarterly net earnings of $577 million ($2.15 per common share), compared with $250 million ($0.93 per common share) for Q4/2003 and $311 million ($1.16 per common share) in Q3/2004. Adjusted net earnings from operations, a non Generally Accepted Accounting Principle ("GAAP") term used by the Company to judge its operational performance, amounted to $321 million ($1.20 per common share) compared with $194 million ($0.72 per common share) for Q4/2003 and $381 million ($1.42 per common share) in Q3/2004. - Quarterly cash flow of $950 million ($3.54 per common share) compared with $734 million ($2.74 per common share) in Q4/2003 and $1,041 million ($3.88 per common share) in Q3/2004. - Record annual equivalent production of 514 mboe/d before royalties (440 mboe/d net of royalties), an increase of 12% over 2003. Quarterly equivalent production of 531 mboe/d before royalties (457 mboe/d net of royalties), represents the fifth consecutive quarter of overall production growth and a 16% increase over Q4/2003. - Quarterly crude oil and NGLs production of 296 mbbl/d before royalties (268 mbbl/d net of royalties). This represents an increase of 21% over Q4/2003 production and less than a 1% decrease from Q3/2004 production. - Quarterly natural gas sales of 1,410 mmcf/d before royalties (1,137 mmcf/d net of royalties), representing 44% of equivalent production during the quarter. This represents an 11% increase over Q4/2003 production and a 1% increase over Q3/2004 production. - Completed the acquisition of Western Canadian Core Properties effective December 1, 2004, adding approximately 25 mboe/d of production to the Company's production base and 510,000 net acres of undeveloped land. - Fourth quarter capital expenditures of $1.4 billion, reflecting increased fourth quarter drilling activities and the previously noted acquisition of Western Canadian Core Properties. - During the quarter, Canadian Natural drilled 273 net wells, excluding strat/service wells, with a 95% success ratio, reflecting Canadian Natural's low risk asset base. - Net undeveloped land base in Canada increased 17% in 2004 to 11.5 million net acres. -Using independent qualified reserve evaluators' determinations of the Company's conventional oil and natural gas reserves under constant prices as at December 31, 2004: - Total net proved reserves after royalties, from conventional operations at the end of 2004 amounted to 1.1 billion barrels of crude oil and NGLs and 2.7 trillion cubic feet of natural gas with proved and probable reserves of 1.5 billion barrels of crude oil and NGLs and 3.5 trillion cubic feet of natural gas. - Net proved reserve additions from conventional operations equaled 220% of 2004 production, at a finding and onstream cost of $12.03 per barrel of oil equivalent. Achieved natural gas reserve additions of 0.5 trillion cubic feet, 100% of which are located in North America. Achieved crude oil and NGLs reserve additions of 265 mmbbl or 282% of 2004 crude oil production. - Net proved and probable reserve additions from conventional operations equaled 281% of 2004 production, at a finding and onstream cost of $9.40 per barrel of oil equivalent. Achieved natural gas reserve additions of close to 0.8 trillion cubic feet, bringing total proved and probable natural gas reserves to 3.5 trillion cubic feet, 96% of which are located in North America. Achieved crude oil and NGLs reserve additions of 324 mmbbl or 345% of 2004 crude oil production. - Using net proved and probable reserve additions the Company achieved an overall recycle ratio of 2.7(2.1 using only proved reserve additions) during 2004. - The Company's financial position remained strong as debt to book capitalization was 34% at the end of 2004 compared to 33% at the end of 2003. Debt to cash flow at the end of 2004 was 1.0 times compared to 0.9 times at the end of 2003. - Horizon Oil Sands Project received project sanction from Canadian Natural's Board of Directors on February 9, 2005. As a result of the sanctioning the Company recorded 1.9 billion barrels of proved bitumen mining reserves before royalties and 3.3 billion barrels of proved and probable bitumen mining reserves before royalties for the Horizon Oil Sands Project as determined by independent qualified reserves evaluators Gilbert Laustsen Jung Associates Ltd. ("GLJ"). - Under its Normal Course Issuer Bid, the Company purchased 873,400 of its common shares during 2004 for a total cost of $33 million (average cost - $38.01 per share). [Darffot note: just above Russ' bid!] - Fifth straight year of dividend increases. The 2005 quarterly dividends will increase 12.5% from $0.10 per common share to $0.1125 per common share commencing with the April 1, 2005 dividend payment.