10 Oil Stocks with Biggest Upside Potential According to Analysts

1. Canadian Natural Resources Limited (NYSE:CNQ) 

Upside Potential: 63.04%

Number of Hedge Fund Holders: 48

Canadian Natural Resources (NYSE:CNQ) is one of Canada’s largest independent crude oil and natural gas producers. The company manages a diverse portfolio of assets, including significant operations in Western Canada, the United Kingdom, the North Sea, offshore Africa, and various other international locations.

Canadian Natural Resources (NYSE:CNQ) has announced that it has entered into an agreement to acquire a 20% interest in the Athabasca Oil Sands Project (AOSP) from Chevron Canada Limited. This acquisition will increase the company’s total interest in AOSP to 90%. The deal includes a 20% stake in the Muskeg River and Jackpine mines, the Scotford Upgrader, and the Quest Carbon Capture and Storage facility. The acquisition is expected to add approximately 62,500 barrels per day of synthetic crude oil production to the company’s portfolio.

In a separate deal, Canadian Natural Resources (NYSE:CNQ) has also agreed to acquire Chevron’s 70% operated working interest in light crude oil and liquids-rich assets in the Duvernay play in Alberta. This acquisition is expected to add approximately 60,000 barrels of oil equivalent per day to the company’s production in 2025. The Duvernay assets are expected to provide near-term growth and contribute to the company’s free cash flow.

The two acquisitions are expected to close in the fourth quarter of 2024. The total consideration for the deals is approximately US$6.5 billion. The acquisitions are expected to add approximately 122,500 barrels of oil equivalent per day to the company’s production in 2025 and increase the company’s total proved and probable reserves by approximately 1,448 million barrels of oil equivalent.

While we acknowledge the potential of Canadian Natural Resources (NYSE:CNQ) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CNQ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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