Independent energy explorer
Canadian Natural Resources Ltd.
) announced the pricing of fixed rate and floating rate notes,
totaling $1 billion.
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The $500 million unsecured floating rate notes are due to mature
in Mar 30, 2016. These 2 year notes offer an interest of 0.375%
above the 3-month London Interbank Offered Rate (LIBOR). The $500
million unsecured fixed rate notes have a 3.805% yield to
maturity and are due in Apr 15, 2024. These 10 year notes are
priced at 99.957%.
Canadian Natural intends to use the funds generated from this
offer to settle loans that it has taken under the company's
Calgary, Alberta-based Canadian Natural is engaged in the
acquisition, development and exploitation of crude oil and
natural gas properties. It is one of the largest independent
exploration and production (E&P) companies in Canada, with
extensive heavy crude oil and natural gas developments.
Earlier this month, Canadian Natural reported fourth-quarter 2013
earnings (excluding one-time and non-cash items) of 52 Canadian
cents (49.5 US cents) ahead of the year-ago quarter's adjusted
profit of 33 Canadian cents, owing to increased liquid and
natural gas production. However, the bottom line missed the Zacks
Consensus Estimate of 56 US cents, hampered by increased
As of Dec 31, 2013, Canada's second-largest oil producer had
C$16.0 million cash in hand and long-term debt (including current
portion) of approximately C$9,661.0 million, representing a
debt-to-capitalization ratio of 27.3%. The sale of these notes
would further increase the debt burden for the company.
Canadian Natural currently retains a Zacks Rank #3 (Hold). This
implies that it is expected to perform in line with the broader
U.S. equity market over the next one to three months.
Meanwhile, one can consider better-ranked Canadian E&P firms
Baytex Energy Corp.
TransGlobe Energy Corp.
ARC Resources Ltd.
). All these stocks currently sport a Zacks Rank #1 (Strong