Canadian Natural Resources Limited (CNQ): A Bull Case Theory

2 days ago 3

Ricardo Pillai

Thu, January 15, 2026 astatine 8:43 AM CST 3 min read

We came crossed a bullish thesis on Canadian Natural Resources Limited (CNQ) connected Golden Larch Investing’s YouTube Channel. In this article, we volition summarize the bulls’ thesis connected CNQ. Canadian Natural Resources Limited (CNQ)'s stock was trading astatine $33.15 arsenic of January 13th. CNQ’s trailing and guardant P/E were 14.18 and 16.31 respectively according to Yahoo Finance.

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Canadian Natural Resources Limited engages successful the acquisition, exploration, development, production, marketing, and merchantability of crude oil, earthy gas, and earthy state liquids (NGLs) successful Western Canada, the United Kingdom assemblage of the North Sea, and Offshore Africa.

The institution stands retired arsenic 1 of Canada’s highest prime lipid and state companies and a profoundly undervalued opportunity, contempt being wide owned and often misunderstood by investors. While lipid prices person precocious fallen toward $55 per barrel, CNQ has demonstrated that its dividend is afloat covered by operating currency travel down to astir $40 to $45 oil, providing a meaningful borderline of safety.

Short word weakness successful prices is amplified by slowing US shale activity, wherever declining rig counts, falling production, and reduced superior spending are already evident. While this creates adjacent word pressure, it besides sets the signifier for tighter proviso implicit clip arsenic request continues to grow, yet supporting higher lipid prices.

CNQ’s fundamentals further fortify the agelong word case. Political hazard successful Canadian vigor has modestly declined, improving manufacture sentiment, portion CNQ’s accrued ownership successful the Athabasca lipid sands done its plus swap with Shell enhances agelong duration worth creation. With lipid sands representing implicit a period of proviso astatine existent accumulation levels, CNQ faces acold little reinvestment and depletion hazard than shale producers.

Management has consistently demonstrated superior discipline, executing accretive acquisitions, increasing accumulation per share, returning important superior to shareholders, and maintaining a beardown equilibrium sheet. Recent net reflected weaker lipid prices but remained coagulated overall, with dividends raised and indebtedness reduced. Long word upside is reinforced by pipeline optionality, declining governmental risk, and imaginable entree to US markets arsenic shale maturation slows.

On blimpish assumptions, intrinsic worth is estimated adjacent C$61 per share, astir treble existent levels. While not suited for abbreviated word trading, CNQ offers agelong word dividend maturation investors a compelling operation of durability, scale, and charismatic valuation.