Thoughts on CNQ’s earnings today?
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In Q2-2025, the company generated an adjusted EPS of $0.71, compared to last year’s $0.88; the decline was largely due to weak commodity prices. However, CNQ managed to beat expectations of around $0.63. CNQ also returned around $1.6B to shareholders during the quarter ($1.2B in dividends and $0.4B in share repurchase). CNQ's business continues to remain robust and sustainable, and management believes the company can achieve breakeven in the low to mid-US$40 per barrel range, at which level CNQ could generate enough funds to cover maintenance capex and dividends. CNQ’s management is committed to continuing with its shareholder-friendly policy while maintaining a healthy balance sheet. Though there is some volatility in financial results due to the fluctuation of commodity prices, but we think CNQ continues to be a high-quality cash cow with attractive dividend growth prospects over time.