Nexen Inc. (NXY, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 $10.55 billion; its shares were traded at around $20.26 with a P/E ratio of 9.6 and P/S ratio of 1.5. The dividend yield of Nexen Inc. stocks is 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 $10,722 (December 31, 2008 - $10,393) 15,917 14,922
GOODWILL 372 390
FUTURE INCOME TAX ASSETS 921 351
DEFERRED CHARGES AND OTHER ASSETS (Note 6) 370 570
-
TOTAL ASSETS 23,926 22,155
=
(1) Cash and cash equivalents at June 30, 2009 consist of cash of $227 million
and short-term investments of $1,747 million (June 30, 2008 - cash of $32
million and short-term investments of $582 million).
(1) Net of income tax expense for the three months ended June 30, 2009 of $62
million (2008 - $4 million expense) and net of income tax expense for the
six months ended June 30, 2009 of $38 million (2008 - $19 million
recovery).
At June 30, 2009, our restricted cash consists of margin deposits of $335
million (December 31, 2008 - $103 million) related to exchange-traded derivative
financial contracts used by our energy marketing group to hedge physical
commodities, and storage, transportation and customer sales contracts. We are
required to maintain margin for net out-of-the-money derivative financial
contracts. The increase in margin primarily relates to derivative financial
contracts hedging our natural gas positions. Declining natural gas prices and
widening time spreads increased the value of storage and fixed price customer
sales contracts. Concurrently, the derivative financial contracts hedging these
positions declined in value. Additional margin was required to cover the
increase in the net out-of-the-money derivative financial contracts.
As at June 30, 2009, we have exploratory costs that have been capitalized for
more than one year relating to our interests in two exploratory blocks in the
Gulf of Mexico ($120 million), certain coalbed methane and shale gas exploratory
activities in Canada ($77 million), four exploratory blocks in the North Sea
($78 million), and our interest in an exploratory block offshore Nigeria ($20
million). These costs relate to projects with exploration wells for which we
have not been able to recognize 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 June 30, 2009, the estimated fair value of our long-term debt was
$7,571 million (December 31, 2008 - $5,686 million) as compared to the carrying
value of $7,863 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.
Read the The complete Report
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 $10.55 billion; its shares were traded at around $20.26 with a P/E ratio of 9.6 and P/S ratio of 1.5. The dividend yield of Nexen Inc. stocks is 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 $10,722 (December 31, 2008 - $10,393) 15,917 14,922
GOODWILL 372 390
FUTURE INCOME TAX ASSETS 921 351
DEFERRED CHARGES AND OTHER ASSETS (Note 6) 370 570
-
TOTAL ASSETS 23,926 22,155
=
(1) Cash and cash equivalents at June 30, 2009 consist of cash of $227 million
and short-term investments of $1,747 million (June 30, 2008 - cash of $32
million and short-term investments of $582 million).
(1) Net of income tax expense for the three months ended June 30, 2009 of $62
million (2008 - $4 million expense) and net of income tax expense for the
six months ended June 30, 2009 of $38 million (2008 - $19 million
recovery).
At June 30, 2009, our restricted cash consists of margin deposits of $335
million (December 31, 2008 - $103 million) related to exchange-traded derivative
financial contracts used by our energy marketing group to hedge physical
commodities, and storage, transportation and customer sales contracts. We are
required to maintain margin for net out-of-the-money derivative financial
contracts. The increase in margin primarily relates to derivative financial
contracts hedging our natural gas positions. Declining natural gas prices and
widening time spreads increased the value of storage and fixed price customer
sales contracts. Concurrently, the derivative financial contracts hedging these
positions declined in value. Additional margin was required to cover the
increase in the net out-of-the-money derivative financial contracts.
As at June 30, 2009, we have exploratory costs that have been capitalized for
more than one year relating to our interests in two exploratory blocks in the
Gulf of Mexico ($120 million), certain coalbed methane and shale gas exploratory
activities in Canada ($77 million), four exploratory blocks in the North Sea
($78 million), and our interest in an exploratory block offshore Nigeria ($20
million). These costs relate to projects with exploration wells for which we
have not been able to recognize 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 June 30, 2009, the estimated fair value of our long-term debt was
$7,571 million (December 31, 2008 - $5,686 million) as compared to the carrying
value of $7,863 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.
Read the The complete Report
