Q: What did you think of their earnings?
5i Research Answer:
CNQ EPS of $2.34 beat estimates of $2.13; revenue of $9.55B was 6% better than expected. CNQ has reached its lower debt target earlier than expected, and is now targetting 100% of free cash flow to go back to shareholders via dividends and buybacks. It was a solid quarter. The dividend was raised by 5%.
MEG EPS of 37c missed estimates of 57c; revenue of $1.44B was 21% ahead of estimates. It will reach its debt targets in the 3Q of 2024 and thus is considering a relatively small base dividend. It will have a new CEO April 1, and the company should benefit from the TransMountain Pipeline. While an earnings 'miss', we like the debt reduction and dividend talk, and are comfortable here.