Nexen Inc. (NXY, Financial) filed Quarterly Report for the period ended 2009-03-31.
Nexen Inc. is an independent Canadian-based global energy company. They are uniquely positioned for growth in the North Sea Western Canada including the Athabasca oil sands of Alberta and unconventional gas resource plays such as coalbed methane and shale gas deep-water Gulf of Mexico offshore West Africa and the Middle East. They add value for shareholders through successful full-cycle oil and gas exploration and development and leadership in ethics integrity governance and environmental protection. Nexen Inc. has a market cap of $9.69 billion; its shares were traded at around $18.64 with a P/E ratio of 5 and P/S ratio of 1.4. The dividend yield of Nexen Inc. stocks is 1.1%. Nexen Inc. had an annual average earning growth of 15.4% over the past 10 years. GuruFocus rated Nexen Inc. the business predictability rank of 5-star.
Net of Accumulated Depreciation, Depletion,
Amortization and Impairment of $11,021
(December 31, 2008 - $10,393) 16,177 14,922
GOODWILL 400 390
FUTURE INCOME TAX ASSETS 359 351
DEFERRED CHARGES AND OTHER ASSETS (Note 6) 431 570
-
TOTAL ASSETS 23,619 22,155
=
CASH AND CASH EQUIVALENTS AT MARCH 31, 2009 CONSISTS OF CASH OF $182 MILLION
AND SHORT-TERM INVESTMENTS OF $1,872 MILLION (DECEMBER 31, 2008 - CASH OF $355
MILLION AND SHORT-TERM INVESTMENTS OF $1,648 MILLION).
1 Net of income tax recovery for the three months ended March 31, 2009 of
$24 million (2008 - net of income tax recovery of $23 million)
As at March 31, 2009, we have exploratory costs that have been capitalized for
more than one year relating to our interests in three exploratory blocks in the
Gulf of Mexico ($140 million), certain coalbed methane and shale gas
exploratory activities in Canada ($79 million), four exploratory blocks in the
North Sea ($78 million), and our interest in an exploratory block offshore
Nigeria ($23 million). These costs relate to projects with exploration wells
for which we have not been able to record proved reserves. We are assessing all
of these wells and projects, and are working with our partners to prepare
development plans, drill additional appraisal wells or to assess commercial
viability.
We carry our long-term debt at amortized cost using the effective interest rate
method. At March 31, 2009, the estimated fair value of our long-term debt was
$6,595 million (December 31, 2008 - $5,686 million) as compared to the carrying
value of $7,791 million (December 31, 2008 - $6,578 million). The fair value of
long-term debt is estimated based on prices provided by quoted markets and
third-party brokers.
In 2008, we purchased put options on approximately 70,000 bbls/d of our 2009
crude oil production for $14 million. These options establish an annual average
Dated Brent floor price of US$60/bbl on these volumes. In September 2008,
Lehman Brothers filed for bankruptcy protection. This impacts approximately
25,000 bbls/d of our 2009 put options and the carrying value of these put
options has been reduced to nil. The crude oil put options are carried at fair
value and are classified as long-term or short-term based on their anticipated
settlement date. Fair value of the put options is supported by multiple quotes
obtained from third party brokers, which were validated with observable market
data to the extent possible. The decrease in fair value of the crude oil put
options of $16 million is included in marketing and other income for the three
months ended March 31, 2009.
Read the The complete ReportNXY is in the portfolios of David Tepper of APPALOOSA MANAGEMENT LP, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
Nexen Inc. is an independent Canadian-based global energy company. They are uniquely positioned for growth in the North Sea Western Canada including the Athabasca oil sands of Alberta and unconventional gas resource plays such as coalbed methane and shale gas deep-water Gulf of Mexico offshore West Africa and the Middle East. They add value for shareholders through successful full-cycle oil and gas exploration and development and leadership in ethics integrity governance and environmental protection. Nexen Inc. has a market cap of $9.69 billion; its shares were traded at around $18.64 with a P/E ratio of 5 and P/S ratio of 1.4. The dividend yield of Nexen Inc. stocks is 1.1%. Nexen Inc. had an annual average earning growth of 15.4% over the past 10 years. GuruFocus rated Nexen Inc. the business predictability rank of 5-star.
Highlight of Business Operations:
PROPERTY, PLANT AND EQUIPMENTNet of Accumulated Depreciation, Depletion,
Amortization and Impairment of $11,021
(December 31, 2008 - $10,393) 16,177 14,922
GOODWILL 400 390
FUTURE INCOME TAX ASSETS 359 351
DEFERRED CHARGES AND OTHER ASSETS (Note 6) 431 570
-
TOTAL ASSETS 23,619 22,155
=
CASH AND CASH EQUIVALENTS AT MARCH 31, 2009 CONSISTS OF CASH OF $182 MILLION
AND SHORT-TERM INVESTMENTS OF $1,872 MILLION (DECEMBER 31, 2008 - CASH OF $355
MILLION AND SHORT-TERM INVESTMENTS OF $1,648 MILLION).
1 Net of income tax recovery for the three months ended March 31, 2009 of
$24 million (2008 - net of income tax recovery of $23 million)
As at March 31, 2009, we have exploratory costs that have been capitalized for
more than one year relating to our interests in three exploratory blocks in the
Gulf of Mexico ($140 million), certain coalbed methane and shale gas
exploratory activities in Canada ($79 million), four exploratory blocks in the
North Sea ($78 million), and our interest in an exploratory block offshore
Nigeria ($23 million). These costs relate to projects with exploration wells
for which we have not been able to record proved reserves. We are assessing all
of these wells and projects, and are working with our partners to prepare
development plans, drill additional appraisal wells or to assess commercial
viability.
We carry our long-term debt at amortized cost using the effective interest rate
method. At March 31, 2009, the estimated fair value of our long-term debt was
$6,595 million (December 31, 2008 - $5,686 million) as compared to the carrying
value of $7,791 million (December 31, 2008 - $6,578 million). The fair value of
long-term debt is estimated based on prices provided by quoted markets and
third-party brokers.
In 2008, we purchased put options on approximately 70,000 bbls/d of our 2009
crude oil production for $14 million. These options establish an annual average
Dated Brent floor price of US$60/bbl on these volumes. In September 2008,
Lehman Brothers filed for bankruptcy protection. This impacts approximately
25,000 bbls/d of our 2009 put options and the carrying value of these put
options has been reduced to nil. The crude oil put options are carried at fair
value and are classified as long-term or short-term based on their anticipated
settlement date. Fair value of the put options is supported by multiple quotes
obtained from third party brokers, which were validated with observable market
data to the extent possible. The decrease in fair value of the crude oil put
options of $16 million is included in marketing and other income for the three
months ended March 31, 2009.
Read the The complete ReportNXY is in the portfolios of David Tepper of APPALOOSA MANAGEMENT LP, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
