Nexen's sale of Canex Energy helps cut debt by C$2.1 billion in 2010

By Lisa Kerner

Charlotte, N.C., Feb. 17 - Nexen Inc.'s net income for 2010 more than doubled from the prior year to C$1.2 billion due in part to strong production and crude oil prices as well as the company's very successful asset-disposition program, chief financial officer Kevin Reinhart said during a conference call on Thursday.

Cash flow was down about C$100 million due to the year-over-year swing in cash flows from Nexen's gas marketing business that was sold during the third quarter.

The company generated C$1.7 billion of cash, more than the C$1 billion it expected, from the asset-disposition program, which included the recent sale of Canex Energy Inc.

Nexen has reduced its net debt by C$2.1 billion, including the removal of C$400 million of Canex Energy's debt from Nexen's balance sheet.

Reinhart said the company achieved its primary objectives with its disposition program, capturing significant value and becoming more focused on three primary growth strategies: conventional offshore, oil sands and shale gas.

During the year, Nexen invested C$2.5 billion in its oil and gas activities and boosted its proved reserves by 101 million barrels of oil equivalent.

The company's net debt-to-cash flow ratio dropped significantly to 1.7x.

Nexen also has about US$3 billion of undrawn credit facilities that help provide for a strong financial foundation.

Nexen plans to deliver new production of 70,000 boe per day over the next 12 to 24 months from its Usan start-up, shale gas growth, U.K. tie-backs and Long Lake ramp-up, a company news release said.

Nexen is an oil and gas company based in Calgary, Alta. Long Lake is a joint venture with OPTI Canada Inc.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.