Although Canadian Natural Resources (NYSE:CNQ) operations are dominated by its core properties in North America, the company is also actively exploring and developing oil and gas properties in various international venues.

TUTORIAL: The Oil Services Industry Handbook

International Assets
CNQ's international portfolio of oil and gas assets is located in the United Kingdom portion of the North Sea and offshore Africa. The company reported production of 60,000 barrels of oil per day from these properties in the first quarter of 2011. This represented approximately 10% of the company's total production.

Canadian Natural Resources estimates that the company's gross proved plus probable reserves in the international portfolio total 553 million barrel of oil equivalent (BOE).

In 2011, Canadian Natural Resources estimates that the company's crude oil production from the international portfolio will decline by a double-digit rate from 2010, and be in a range from 48,000 to 56,000 barrel per day. (For more, see Oil: A Big Investment With Big Tax Breaks.)

2011 Capital Plans
Although the international segment is a small part of the company, Canadian Natural Resources plans to spend a significant amount of capital here over the next five years.

In 2011, Canadian Natural Resources plans to spend $420 million CAD to explore and develop these properties, along with an additional $1.7 billion CAD from 2012 to 2015. (For related reading, see The Working Capital Position.)

North Sea
The majority of the international production and reserves for Canadian Natural Resources are located in the North Sea, where the company has interests in various fields off the coast of Scotland. The company plans to reduce its capital spending here by 50% in 2011 due to a tax change by the British government.

West Africa
Canadian Natural Resources also has interests in areas located offshore Gabon and Cote d'Ivoire. The company reported production of 25,000 barrels of oil per day from here in the first quarter of 2011, and estimates that it has gross proved and probable reserves of 177 million barrels of oil.

West Africa is a popular area for oil and gas operators and has seen increased activity over the last decade. Hess Corp. (NYSE:HES) recently announced a discovery at the Paradise-1 well located offshore of Ghana. The company reported hitting 490 feet of oil and gas pay in three separate zones. (For related reading, see A Guide To Investing In Oil Markets.)

Petrobras (NYSE:PBR) announced the purchase of a 50% interest in two exploration blocks located offshore Gabon. The company plans to explore these blocks after a review of seismic data of the properties.

South Africa
Canadian Natural Resources has a more prospective position located in offshore South Africa, and plans exploratory drilling in 2013 and 2014. South Africa is also attracting interest from the oil and gas industry. In June 2011, Eni (NYSE:E) signed a cooperation agreement with the state owned South African oil company. The agreement calls for the evaluation of acquisitions in upstream projects. (For related reading, see Analyzing An Acquisition Announcement.)

The Bottom Line
Canadian Natural Resources is still exploring and developing oil and gas assets in the international space, despite the focus on North America. The company is concentrating in the North Sea and offshore Africa.

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Investing

    What a Fed Delay Means for the ECB & BoJ

    The Fed’s continued delay has repercussions for more than just the U.S. economy and markets. The ECB and the BoJ may support the case for stocks in Europe.
  2. Investing

    How Worried Should We Be About China?

    An economic slowdown, a freezing up in trade and plunging markets and currencies are casting a shadow across Asia—and the globe. How worried should we be?
  3. Stock Analysis

    3 Resilient Oil Stocks for a Down Market

    Stuck on oil? Take a look at these six stocks—three that present risk vs. three that offer some resiliency.
  4. Economics

    Keep an Eye on These Emerging Economies

    Emerging markets have been hammered lately, but these three countries (and their large and young populations) are worth monitoring.
  5. Stock Analysis

    Is Pepsi (PEP) Still a Safe Bet?

    PepsiCo has long been known as one of the most resilient stocks throughout the broader market. Is this still the case today?
  6. Investing Basics

    Learn How To Trade Gold In 4 Steps

    Trading spot gold or gold futures, equities and options isn’t hard to learn, but the activity requires skill sets unique to these markets.
  7. Economics

    The Effect of Fed Fund Rate Hikes on Gold

    Explore the historical relationship between interest rate increases and the price of gold, and consider what effect a fed funds rate hike might have on gold.
  8. Investing

    The ABCs of Bond ETF Distributions

    How do bond exchange traded fund (ETF) distributions work? It’s a question I get a lot. First, let’s explain what we mean by distributions.
  9. Investing

    Latin America’s Economic Forecast

    After a ten-year run, the economies of Latin America are in a decline. For sustainable, long-term growth, the region needs structural reforms.
  10. Savings

    Easy Ways to Go Green and Stay Budget Friendly

    Social entrepreneurs recruit "skeptics" to team green, by providing economically efficient products and services that minimize consumers' carbon footprint.
  1. Does working capital measure liquidity?

    Working capital is a commonly used metric, not only for a company’s liquidity but also for its operational efficiency and ... Read Full Answer >>
  2. How do I read and analyze an income statement?

    The income statement, also known as the profit and loss (P&L) statement, is the financial statement that depicts the ... Read Full Answer >>
  3. Can working capital be too high?

    A company's working capital ratio can be too high in the sense that an excessively high ratio is generally considered an ... Read Full Answer >>
  4. How do I use discounted cash flow (DCF) to value stock?

    Discounted cash flow (DCF) analysis can be a very helpful tool for analysts and investors in equity valuation. It provides ... Read Full Answer >>
  5. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  6. What is the formula for calculating compound annual growth rate (CAGR) in Excel?

    The compound annual growth rate, or CAGR for short, measures the return on an investment over a certain period of time. Below ... Read Full Answer >>

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!