Q2 Oil profits are on the rise

It’s hard not to keep a close on eye on oil sand profits in Fort McMurray on a daily occurrence, as they directly influence the “boom or bust” times in Alberta. After poor showings for most of 2008 and early 2009, second quarter profits are starting to bear fruit. CNRL, Inter Pipeline and Flint Energy Services all swung to a Q2 profit compared to losses in the same period last year.

Canadian Natural Resources Limited (CNRL) made $162 million, or 30 cents a share, in the three-month period, compared to a loss of $347 million - or 65 cents a share - in the same period a year earlier. CNRL gave credit to the growing output from the newly commissioned Horizon oil sands mine for boosting its oil production by about 11 per cent to 366,000 barrels a day. Including natural gas, the company produced about 591,000 barrels equivalent per day.1

Inter Pipeline Fund Announces Strong Second Quarter 2009 Results. Inter Pipeline announced today its financial and operating results for the three and six month periods ended June 30, 2009. Some highlights include:
•    Funds from operations totaled $68.5 million in the second quarter
•    Attractive payout ratio before sustaining capital of 71.0%
•    Cash distributions to unit holders totaled $48.6 million or $0.21 per unit during the quarter 2


Flint Energy Services Ltd. ("Flint" or the "Company") reported today that revenue for the three months ended June 30, 2009 was $424.2 million, down $107.5 million compared to $531.7 million for the same period in 2008.

Decreases in revenue in the Production Services and Oilfield Services operating segments were a result of reduced natural gas drilling activity in both Canada and the United States. Revenue from the Maintenance Services segment was down year over year due to the large turnaround performed last year for Suncor, not repeated during the second quarter of 2009. The Facility Infrastructure division reported $131.3 million in revenue, up $10.9 million over the same period last year as a result of increased work on the Shell Albian Sands project and work on the StatoilHydro project at Leismer, Alberta. Revenues from the United States were 18.3 percent of Company revenue for the quarter, down $55.1 million from last year as a result of lower United States activity levels and proportionately more revenues from Canadian operating segments.3  

Although a many oil sand projects were not as lucky as these 3 in the second quarter for profits this is a great sign of things to come from Fort McMurray to help aid in the resurgence of oil prices.

1Calgary Herald- Shaun Polczer
2Market Wire- Inter Pipeline Fund
3CNW Group- Flint Energy Services LTD