CVE:CC - Q1 Canadian oil results - key earnings drivers and guidance commentary

Business was never better in the Canadian oil patch than during the first quarter of 2022. Canadian Natural (CNQ), International Petroleum (OTC:IPCFF) and MEG (OTCPK:MEGEF) have all rallied 50-100% on the year. If commodity prices hold, Q2 should be even better; however, investors are sure to focus on a few key drivers of earnings and outlooks throughout the reporting season:  Capital allocation - commodity prices have exceeded even the most aggressive corporate cash flow forecast assumptions; with debt balances falling rapidly, shareholders are sure to focus on management commentary related to the split between buybacks, dividends and growth capex in the "high commodity price" scenario. Hedges - many of the smaller Canadian producers will show accelerating profitability as hedges placed in 2021 roll off; Bonterra (OTCQX:BONXF) should see realized prices on hedged oil volumes rise by ~$10/b in Q2; Cenovus (CVE) will also drop the price-linked earn-out provision related to

For further details see:

Q1 Canadian oil results - key earnings drivers and guidance commentary