Post says Talisman, Nexen, Cdn Oil Sands seen gaining
2008-10-21 09:28 ET - In the News
Also In the News (C-COS) Canadian Oil Sands Trust (2)Also In the News (C-NXY) Nexen Inc
The Financial Post reports in its Tuesday edition that oil companies start reporting their third-quarter results today. The Post's Carrie Tait writes that third-quarter results in the oil patch may not be entirely painful. Kam Sandhar, an analyst at Peters & Co., said quarter-over-quarter production growth for the integrated oil producers will be "slightly positive."
As for domestic large cap companies, Mr. Sandhar said: "From a cash flow perspective, Canadian Oil Sands Trust, Nexen Inc. and Talisman Energy Inc. are the only three entities expected to show per share growth at 26%, 9% and 1%, respectively," he told clients in a note. Oil closed at $74.25 (U.S.), up $2.40 (U.S.) on the day -- above last week's low of $67 (U.S.) but well down from the peak of $147 (U.S.) per barrel in July.
This time around, capital expenditure plans will be under the microscope. Budgets may still be undergoing finishing touches. Analysts say that during this reporting round, capital expenditure plans will be under the microscope in an environment of plunging oil prices and with credit and equity markets in disarray.