Canadian Natural Resources: A Fantastic Business At A Reasonable Price
2026-02-24 14:17:20 ET
Investment Thesis
As I wrote in my most recent article, Energy Transfer: It’s Now Fairly Valued , regular updates to coverage and valuations are a must. Business performance often changes much more slowly than share prices, and active investment management strategies extract surplus value by buying what are believed to be undervalued companies and selling overvalued ones. This article will serve as a follow-up to my initial coverage of CNQ slightly over a year ago with Canadian Natural Resources: The Definition of Shareholder Friendly Management . Key elements to my ‘strong buy’ recommendation and investment thesis then were:
CNQ’s management team has a clear capital allocation plan with a range of flexible options (share repurchases, debt reduction, and dividend increases) to maximize shareholder returns.
Even as a fossil fuel extraction and production company, CNQ’s diversified and durable asset base produces revenues and profit margins that can easily withstand volatile energy prices.
A multi-stage dividend discount model, which intentionally underestimated dividend growth and used an exceedingly safe required rate of return, indicated some undervaluation.
Read the full article on Seeking Alpha
For further details see:
Canadian Natural Resources: A Fantastic Business At A Reasonable Price
NASDAQ: CNQ
CNQ Trading
0.72% G/L:
$46.74 Last:
6,851,637 Volume:
$46.71 Open:
