CIBC World Markerts Inc. said Nexen Inc.'s (TSX: NXY.TO) (NYSE: NXY) fortunes appear to be turning with good news announced at Appomattox discovery, Usan poised to begin production at early end of initial expectations as well as Long Lake Pad 11 delivering reasonable performance.
The Canada-based global energy company reported Q4/11 CFPS of $1.11, below CIBC expectations of $1.22, but slightly above consensus of $1.09. Operating EPS of $0.43 were below CIBC estimate of $0.57, but in line with consensus, the brokerage noted.
Q4 production of 208,000 Boe/d was below CIBC estimate of 213,831 Boe/d, but in line with consensus and within its guidance range. Production missed CIBC estimate due to lower-than-expected North Sea production, the brokerage said. Buzzard production averaged 186,000 Boe/d during the quarter (80,000 Boe/d net).
CIBC, which maintained its "Sector Outperformer" rating and $25 price target on the stock, lifted its 2012 EPS estimate for the company to $2.05 from $2.01 and 2013 EPS estimate to $2.82 from $2.78.
On Friday, the stock rose 2.48 percent to $20.25 on the NYSE. On the Toronto Stock Exchange, shares advanced 2.03 percent to $20.11.