Nexen Inc. 7.35% Sub Notes 2043 NXY.P.B

Pain, then gain seen for Nexen

[JohnDD]

https://www.canada.com/nationalpost/financialpost/investing/story.html?id=82e75d0b-49da-46fa-95a1-b6aa115203f9 Pain, then gain seen for Nexen Jon Harding, Financial Post Published: Friday, May 18, 2007 Analysts came away from a Nexen Inc. investors tour in Britain believing that a little short-term pain could give way to longer-term gains as the Canadian company is set for a big production lift after 2009. Nexen's preliminary production guidance for 2008 of 240,000 to 270,000 barrels of oil equivalent daily (BOE/D), however, didn't quite meet expectations of both UBS Securities and Desjardins Securities. The big international producer of oil and natural gas delayed volumes coming from its Longhorn development in the United States Gulf from 2008 to 2009 and it lowered its expectation for volumes from the Ettrick development in the U.K. North Sea. Email to a friend Printer friendly Font: ****As a result, Desjardins lowered Nexen's earnings and cash flow per share estimates for 2008 to $3.19 from $3.26 and to $7.15 from $7.32, respectively. UBS cut its production forecast for 2008 but maintained that Nexen's 2010 production estimate of 300,000 BOE/D is in line with expectations. Desjardins maintained its "top pick" rating and $41.50 target price for Nexen. UBS did not change its "buy" rating nor its $43.50 target price. "Nexen remains one of the least expensive North American explorers," UBS analyst Andrew Potter wrote in a note, adding that as Nexen ramps up production next year at its Long Lake oilsands project, the dealer expects a "re-rating of Nexen to unfold." [e-mail]