Canada markets close in 3 hours 28 minutes

  • S&P/TSX

    19,051.76
    -125.42 (-0.65%)
     

  • S&P 500

    4,238.86
    -49.53 (-1.15%)
     

  • DOW

    33,093.52
    -339.83 (-1.02%)
     

  • CAD/USD

    0.7297
    -0.0017 (-0.24%)
     

  • CRUDE OIL

    90.00
    +1.18 (+1.33%)
     

  • Bitcoin CAD

    37,545.31
    -897.32 (-2.33%)
     

  • CMC Crypto 200

    585.47
    -4.51 (-0.76%)
     

  • GOLD FUTURES

    1,842.10
    -5.10 (-0.28%)
     

  • RUSSELL 2000

    1,731.63
    -25.19 (-1.43%)
     

  • 10-Yr Bond

    4.7720
    +0.0890 (+1.90%)
     

  • NASDAQ

    13,108.77
    -199.00 (-1.50%)
     

  • VOLATILITY

    19.62
    +2.01 (+11.41%)
     

  • FTSE

    7,470.16
    -40.56 (-0.54%)
     

  • NIKKEI 225

    31,237.94
    -521.94 (-1.64%)
     

  • CAD/EUR

    0.6967
    -0.0009 (-0.13%)
     
MARKETS LIVE BLOG:

STOCKS SLIDE ON RISING BOND YIELDS, JOBS UPSIDE

U.S. job openings climb in August, hitting highest level since May

Canadian Natural Resources profit soars 125%, announces special dividend

Jeff Lagerquist
·2 min read
A Canadian Natural Resources pump jack pumps oil out of the ground near Dorothy, Alberta, June 30, 2009. CNR is a large Canadian energy producer. REUTERS/Todd Korol (CANADA BUSINESS ENERGY)
A Canadian Natural Resources pump jack pumps oil out of the ground near Dorothy, Alberta, June 30, 2009. CNR is a large Canadian energy producer. REUTERS/Todd Korol (CANADA BUSINESS ENERGY)

Canadian Natural Resources (CNQ.TO)(CNQ) announced a special dividend on Thursday, adding to a parade of oil sands players doling out shareholder rewards fuelled by strong crude prices.

The Calgary-based oil and gas producer says profit in the second quarter more than doubled from a year ago, rising over 125 per cent year-over-year to $3.5 billion for the three months ended June 30.

Canadian Natural says cash flow from operations topped $5.9 billion compared to $2.9 billion a year ago, as the price of West Texas Intermediate (CL=F) crude averaged US$108 per barrel, up from US$66. After adjustments including dividend payments, the company says free cash flow for the quarter was $3.3 billion.

Canadian Natural says it will pay a special dividend of $1.50 per share on Aug. 31 to shareholders of record as of Aug. 23, double its current quarterly dividend of $0.75 per share.

“Strong execution across the company's operations year-to-date has resulted in substantial free cash flow generation,” chief financial officer Mark Stainthorpe stated in a news release. “As a result, our financial position continues to strengthen, allowing for incremental returns to shareholders.”

Canadian Natural ended the quarter with $12.4 billion in net debt, closing in on its “base level” of $8 billion. Once that target is reached, the company says it will allocate additional free cash flow to its shareholders. Canadian Natural said it paid out about $2.9 billion in the second quarter, including approximately $900 million in dividends, and $2 billion in share repurchases.

Daily production before royalties averaged 860,338 million barrels of oil equivalent per day (mboe/d) in the quarter, down from 872,718 in the same quarter last year.

Canadian Natural upped its full-year capital spending forecast to as much as $4.9 billion from $4.3 billion. It also raised its production guidance range to between 1,295 and 1,335 mboe/d.

Toronto-listed shares added 0.72 per cent to $67.38 as at 10:31 a.m. ET on Thursday.

Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.

Download the Yahoo Finance app, available for Apple and Android.