Critical Analysis: Energy XXI Gulf Coast (EXXI) vs. Canadian Natural Resources Limited (CNQ)
Energy XXI Gulf Coast (NASDAQ: EXXI) and Canadian Natural Resources Limited (NYSE:CNQ) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.
Canadian Natural Resources Limited pays an annual dividend of $0.80 per share and has a dividend yield of 2.6%. Energy XXI Gulf Coast does not pay a dividend. Canadian Natural Resources Limited pays out 78.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Energy XXI Gulf Coast has raised its dividend for 5 consecutive years.
This is a summary of recent ratings and target prices for Energy XXI Gulf Coast and Canadian Natural Resources Limited, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Energy XXI Gulf Coast||0||0||0||0||N/A|
|Canadian Natural Resources Limited||0||2||10||1||2.92|
Canadian Natural Resources Limited has a consensus price target of $46.45, indicating a potential upside of 50.73%. Given Canadian Natural Resources Limited’s higher probable upside, analysts plainly believe Canadian Natural Resources Limited is more favorable than Energy XXI Gulf Coast.
Earnings & Valuation
This table compares Energy XXI Gulf Coast and Canadian Natural Resources Limited’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Energy XXI Gulf Coast||$635.08 million||0.68||$254.23 million||N/A||N/A|
|Canadian Natural Resources Limited||$10.48 billion||3.57||$4.93 billion||$1.02||30.22|
Canadian Natural Resources Limited has higher revenue and earnings than Energy XXI Gulf Coast.
This table compares Energy XXI Gulf Coast and Canadian Natural Resources Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Energy XXI Gulf Coast||N/A||N/A||N/A|
|Canadian Natural Resources Limited||11.50%||3.33%||1.47%|
Institutional and Insider Ownership
74.8% of Energy XXI Gulf Coast shares are held by institutional investors. Comparatively, 60.3% of Canadian Natural Resources Limited shares are held by institutional investors. 0.1% of Energy XXI Gulf Coast shares are held by company insiders. Comparatively, 5.0% of Canadian Natural Resources Limited shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Canadian Natural Resources Limited beats Energy XXI Gulf Coast on 11 of the 14 factors compared between the two stocks.
About Energy XXI Gulf Coast
Energy XXI Gulf Coast, Inc. (EGC) is an independent oil and natural gas development and production company which was focused on development drilling on the Company’s core properties. The Company’s properties are located in the United States Gulf of Mexico waters and the Gulf Coast onshore. The Company operates nine oilfields on the Gulf of Mexico Shelf. As of December 31, 2016, total proved reserves were 121.9 million barrels of oil equivalents (MMBOE) of which 78% were crude oil. The Company operated in 616 gross producing wells on 439,294 net developed acres, including interests in 57 producing fields. The Company’s projects include Main Pass Complex, West Delta, Ship Shoal, Grand Isle and South Timbalier. The Main Pass complex is located in approximately 100 feet of water near the mouth of the mississippi river. It includes Main Pass 61 field and Main Pass 73 field along with the Main Pass 296 and 311.
About Canadian Natural Resources Limited
Canadian Natural Resources Limited is an independent crude oil and natural gas exploration, development and production company. The Company’s segments include Exploration and Production, Oil Sands Mining and Upgrading, and Midstream. The Exploration and Production segment includes exploration, development, production and marketing of crude oil, natural gas liquids (NGLs) and natural gas. The Company’s exploration and production operations are focused in North America in Western Canada, the United Kingdom portion of the North Sea, and Cote d’Ivoire, Gabon and South Africa in Offshore Africa. The Horizon Oil Sands Mining and Upgrading segment (Horizon) produces synthetic crude oil (SCO) through bitumen mining and upgrading operations. Midstream activities include the Company’s pipeline operations, an electricity co-generation system and an investment in the North West Redwater Partnership (Redwater Partnership).
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