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CNOOC is set to formally apply this week for Investment Canada’s approval to take over Calgary-based Nexen, whose board has agreed to the offer that would provide shareholders with a 62-per-cent premium on the stock price.
CNOOC is set to formally apply this week for Investment Canada’s approval to take over Calgary-based Nexen, whose board has agreed to the offer that would provide shareholders with a 62-per-cent premium on the stock price.
(HANDOUT/Reuters)

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Nexen’s dwindling Canadian cash flows

Nexen Inc.’s new set of quarterly earnings make one thing abundantly clear: the company isn’t making much from its Canadian assets.

Although the overall cash flows look decent year-to-date – its cash flow from operations during the first three quarters is up roughly 9 per cent over the same period in 2011 – its Canadian oil operations have stumbled. From January to September, they posted a 25 per cent drop in cash flows over the year prior.