Canadian Natural Resources Ltd. (CNQ), an independent exploration and production (E&P) company, declared that it has restarted production at its Horizon Oil Sands project in Alberta. The project that was temporarily shut down since Aug 16 for regular maintenance activities and expansion of its coker capacity, resumed operations on Sep 10.
The company added that the coker capacity addition targets synthetic crude oil production capacity to reach to 127,000 barrels per day (bbl/d) from the earlier level of 115,000 bbl/d. Canadian Natural expects 2014 production to remain within its earlier guidance of 109,000 bbl/d to 115,000 bbl/d.
Canadian Natural mentioned that this capacity addition was planned toward the middle of 2015. However, early installation of the coker and efficient construction work has enabled this expansion to be complete much before schedule.
The company mentioned that Phase 2A is the first of a three-part expansion project. The next two phases, Phase 2B and Phase 3, will likely add 45,000 bbl/d and 80,000 bbl/d respectively. While Phase 2B is anticipated to complete in the latter half of 2016, the final phase has a targeted completion date in late 2017. These expansions are expected to increase Horizon’s production capacity to 250,000 bbl/d.
Calgary, Alberta-based Canadian Natural Resources is engaged in the acquisition, development and exploitation of crude oil and natural gas properties. The company has a broad portfolio of low-risk exploration and development projects that yield long-term volume growth at above-average rates. However, concern remains over the company’s rise in total cost structure.
In keeping with these views, Canadian Natural currently carries a Zacks Rank #3 (Hold). Meanwhile, one can consider better-ranked players from the broader energy sector like Cameron International Corporation (CAM), Patterson-UTI Energy Inc. (PTEN) and Sunoco Logistics Partners L.P. (SXL). All these stocks sport a Zacks Rank #1 (Strong Buy).
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