would like to start a thread on some earnings this quarter that have been released the past week, or two. these are companies I have mentioned in the past and probably own or will own. none will be companies that are good shorts.
ENERGY
CNQ Cdn. natural Resources
in Q3 05 production avg. 571,000 barrels/day, drilled 414 wells 95%successfull.
CNQ cash flow was $2.58, earnings per share came in at $1.07.
cash flow for 2005 should come in around $8.90-$9.
in 2006 cash flow may rise to $9.50-$9.75 per share.
CNQ plans to ramp up spending on their oil sands play Horizen 2005 $4.8 billion, $6.8 billion in 2006. in total company will spend in excess of $25 billion on the project. production on stream in 2008-2009 and will be in full production by 2015 roughly.....large project.
company should earn $3.80 in 05 and $4.50 in 2006.
company should be able to grow production 8-10% next year.
note: own a position, and have covered calls on 75% of the position. very volatile stock.
Tailsman TLM
production 461,000 barrels/day
due to the 2.5 billion acquisition of Paladin resources production should grow in Q4 2005 to 490,000 barrels/day.
production is spread around the world North Sea, Norway, Canada, Africa, Asia, and starting to drill in Alaska.
in 2006 TLM will increase spending form 3.5 billion to 4 billion.
using $59 oil and $11.85 natural gas the company will generate free cash flow of $12.65 a share.
earnings per share 05 $5.30 06 $5.80
cash flow $12.20 05 06 $14.10
yield .6%
believe CNQ and TLM are two good oil stocks.
for the most part I own these stocks and at times write covered calls against these stocks.
LEGAL WARNING on TLM
Tlm has a lawsuit against it in the US. I do not understand the cdn. or US legal systems. but basically a group is suing them because they use to operate in the Sudan.
they withdrew from the Sudan mainly because of pressure from US human rights groups, and church groups. also the company was trading cheaply Sudan discount because of this.
it was never illegal and Sudan is and was facing hard times. They sold their interst, to a China oil company, the operation is now run from french, china, india interests.
the lawsuit is thought to fail, or else you will be able to file a lawsuit against any company that ever did business in a third world country.
TLM should be noted helped the region they were in, and built hospitals and schools and drilled wells for the villages near by.....sure it was all for pr, but I ask you are the people better off now that they are not spending those millions.
which these groups could have worked with the company, believe TLM would have increased their spending on these projects for peace between these groups. that did not happen....my little rant.
both are great oil/gas companies. believe oil will fall off so would wait to add to your portfolio.
own both stocks.
thanks
selkirk
ENERGY
CNQ Cdn. natural Resources
in Q3 05 production avg. 571,000 barrels/day, drilled 414 wells 95%successfull.
CNQ cash flow was $2.58, earnings per share came in at $1.07.
cash flow for 2005 should come in around $8.90-$9.
in 2006 cash flow may rise to $9.50-$9.75 per share.
CNQ plans to ramp up spending on their oil sands play Horizen 2005 $4.8 billion, $6.8 billion in 2006. in total company will spend in excess of $25 billion on the project. production on stream in 2008-2009 and will be in full production by 2015 roughly.....large project.
company should earn $3.80 in 05 and $4.50 in 2006.
company should be able to grow production 8-10% next year.
note: own a position, and have covered calls on 75% of the position. very volatile stock.
Tailsman TLM
production 461,000 barrels/day
due to the 2.5 billion acquisition of Paladin resources production should grow in Q4 2005 to 490,000 barrels/day.
production is spread around the world North Sea, Norway, Canada, Africa, Asia, and starting to drill in Alaska.
in 2006 TLM will increase spending form 3.5 billion to 4 billion.
using $59 oil and $11.85 natural gas the company will generate free cash flow of $12.65 a share.
earnings per share 05 $5.30 06 $5.80
cash flow $12.20 05 06 $14.10
yield .6%
believe CNQ and TLM are two good oil stocks.
for the most part I own these stocks and at times write covered calls against these stocks.
LEGAL WARNING on TLM
Tlm has a lawsuit against it in the US. I do not understand the cdn. or US legal systems. but basically a group is suing them because they use to operate in the Sudan.
they withdrew from the Sudan mainly because of pressure from US human rights groups, and church groups. also the company was trading cheaply Sudan discount because of this.
it was never illegal and Sudan is and was facing hard times. They sold their interst, to a China oil company, the operation is now run from french, china, india interests.
the lawsuit is thought to fail, or else you will be able to file a lawsuit against any company that ever did business in a third world country.
TLM should be noted helped the region they were in, and built hospitals and schools and drilled wells for the villages near by.....sure it was all for pr, but I ask you are the people better off now that they are not spending those millions.
which these groups could have worked with the company, believe TLM would have increased their spending on these projects for peace between these groups. that did not happen....my little rant.
both are great oil/gas companies. believe oil will fall off so would wait to add to your portfolio.
own both stocks.
thanks
selkirk
