Citigroup Reiterates Buy, $50 Target on Canadian Natural Resources

Citigroup maintains its Buy rating and $50 target price on Canadian Natural Resources

as Horizon and Primary Heavy Oil are expected to drive 2012 growth. Citi comments, “Total production next year is expected to be up ~17% to 717 MBOE/d. Roughly two-thirds of next year's production growth should be driven by Horizon operating at near full capacity followed by sharp upticks in Canadian Light and Primary Heavy Oil volumes adding 10 MBBl/d and 18MBbl/d respectively. … We adjusted our 2011-2013 EPS/CFPS estimates to reflect our new crude oil and natural gas price forecasts. Our estimates are now $2.14/$5.69 from $2.16/$5.72 for 2011, $3.77/$8.11 from $3.15/$7.40 for 2012, $5.52/$10.32 from $3.46/$8.05 for 2013.” CNQ closed at $37 per share, up 2.24 percent, on Friday.