Credit Suisse - "CNQ is the Best in Canada"09:50 AM EDT, 06/16/2020 (MT Newswires) -- Credit Suisse on Tuesday released its estimate for major oil sands producers including Canadian Natural Resources (CNQ.TO), Cenovus Energy (CVE.TO), Suncor Energy (SU.TO), MEG Energy (MEG.TO) and Husky Energy (HSE.TO).
"CNQ with $31/bbl WTI break-even (with dividend) and $25.5/bbl WTI before dividend, leads the pack and we don't expect net debt to go up in 2H 2020 at current strip," the investment bank said in a note. "While CVE breakeven is ~$38/bbl WTI, it has a $13/bbl diff assumption, so WCS prices are already at or above break even for CVE. While SU has indicated a targeted break-even of $35/bbl WTI, it also has $12/bbl refining margin assumption and cost savings. At strip, we still have SU's debt going up in 2H 2020. IMO's breakeven is ~$40/bbl WTI, which is lower than MEG's $44/bbl WTI (ex-hedges). Post capex and dividend cut, HSE is signaling its breakeven is $35/bbl WTI. Market believes the breakeven is significantly higher for HSE, so this will be a show me story"