Canadian Natural Resources: Hitting $100 Billion In Market Value

Canadian Natural Resources Ltd. becomes the first oil and gas company in Toronto to be worth more than $100 billion (US $79.3 billion) in market value.

After ExxonMobil Corp., Chevron Corp., and ConocoPhillips, the Calgary-based oil and gas producer is currently the continent’s fourth most valuable publicly traded company. The stock has increased by 180% since the start of 2021, surpassing Suncor Energy Inc.

“This company is one of the biggest global players and so it may garner more attention from international companies and should be compared to any of the top energy companies globally,” said an analyst at Mawer Investment Management, Mark Rutherford.

After an unexpected dividend boost in March 2020, shares of Canadian Natural, which produces more than 1.2 million barrels of oil and gas per day, have been on the rise for the past several months. During the early stages of the COVID-19 pandemic, analysts predicted that the corporation would reduce its dividends as its competitors did.

Bob Robotti, founder and chief investment officer of Robotti & Co. and a long-time Canadian Natural shareholder said “In a cyclical business, when others have zigged, they’ve zagged.”

Stifel FirstEnergy analyst Robert Fitzmartyn believes that the next trigger for the shares might be a stock split, noting that the company has divided its shares twice in 18 months in the past. According to the analyst, Canadian Natural’s record-setting market capitalization should attract more attention from investors because of its current high price. “It is indicative that this business is going to increase in stature at the global scale,” said Fitzmartyn.

Original source material for this article taken from here