Strathcona Resources (TSE:SCR)
TSX:SCR
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Strathcona Resources
(TSX:SCR)
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Rating:70Outperform
Price Target:
C$46.00
▲(7.00% Upside)
Action:ReiteratedDate:03/28/26
The score is driven primarily by strong 2025 profitability and a significantly improved balance sheet, partly offset by weaker and more volatile free cash flow in 2025. Technicals support the uptrend but overbought signals add near-term risk, while valuation is constrained by an uninterpretable negative P/E and uncertainty around the sustainability of the exceptionally high dividend yield.
Positive Factors
Stronger balance sheet
Material de-leveraging through 2025 reduces solvency and refinancing risk for an upstream E&P. A stronger balance sheet increases flexibility to fund sustaining capex, endure commodity swings, and preserves access to capital for longer-term investments or opportunistic M&A.
Negative Factors
Weak/volatile free cash flow
A sharp drop and inconsistency in free cash flow reduces the company's dependable ability to fund dividends, buybacks, or growth capex from internal sources. For an E&P, volatile FCF complicates capital allocation and increases reliance on external financing in down cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Stronger balance sheet
Material de-leveraging through 2025 reduces solvency and refinancing risk for an upstream E&P. A stronger balance sheet increases flexibility to fund sustaining capex, endure commodity swings, and preserves access to capital for longer-term investments or opportunistic M&A.
Read all positive factors
Strathcona Resources (SCR) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$9.21B
Dividend Yield2.99%
Average Volume (3M)98.08K
Price to Earnings (P/E)―
Beta (1Y)0.59
Revenue Growth-11.41%
EPS Growth40.81%
CountryCA
Employees797
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.46
Shares Outstanding214,235,610
10 Day Avg. Volume90,167
30 Day Avg. Volume98,082
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)1.16
Price to Sales (P/S)1.81
P/FCF Ratio33.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$39.00Price Target Upside-9.28% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)1.52
Revenue Forecast (FY)C$2.99B
Strathcona Resources Business Overview & Revenue Model
Company Description
Strathcona Resources Ltd. operates as an exploration company. The Company engaged in the acquisition, exploration, development, and production of petroleum and natural gas reserves....
How the Company Makes Money
SCR primarily makes money by producing hydrocarbons from its operated and non-operated upstream assets and selling those volumes into commodity markets. Revenue is driven mainly by (1) crude oil sales and (2) natural gas and natural gas liquids (N...
Strathcona Resources Earnings Call Summary
Earnings Call Date:Aug 13, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive achievements such as consistent oil production, improved efficiency, and strategic partnerships for decarbonization, alongside challenges like reduced natural gas production and potential rail strike impacts.Positive Updates
Consistent Oil Production and Increased Sales Volume
Oil production for Q2 remained consistent with Q1 at approximately 131,000 barrels per day, while oil sales volumes increased to approximately 135,000 barrels per day due to inventory drawdown.
Negative Updates
Natural Gas Production Decline
Natural gas production was down 6% from Q1 due to planned and unplanned third-party outages, leading to a reduction in guidance by 15 million cubic feet per day.
Read all updates
Q2-2024 Updates
Positive
Negative
Consistent Oil Production and Increased Sales Volume
Oil production for Q2 remained consistent with Q1 at approximately 131,000 barrels per day, while oil sales volumes increased to approximately 135,000 barrels per day due to inventory drawdown.
Read all positive updates
Company Guidance
During the Q2 2024 earnings call for Strathcona Resources Limited, significant guidance was provided on various operational and financial metrics. The company reported an average production of approximately 182,000 barrels of oil equivalent (BOE) per day, generating funds from operations of $548 million, or $2.56 per share. Capital expenditures totaled $297 million, resulting in free cash flow of $247 million, or $1.15 per share. Oil production remained consistent with the previous quarter at around 131,000 barrels per day, while oil sales volumes increased to approximately 135,000 barrels per day due to the commissioning of a new crude by rail offloading facility. Natural gas production stood at 237 million cubic feet per day, down 6% from the first quarter, and natural gas liquids production was steady at 11,500 barrels per day. Strathcona announced a reduction in its annual natural gas guidance by 15 million cubic feet per day, adjusting the corporate guidance range to 185,000 to 190,000 BOE per day, with an oil weighting increase to 72%. The company maintained its capital budget guidance at $1.3 billion and achieved its debt target of $2.5 billion by June 30, leading to the approval of a quarterly base dividend of $0.25 per share. Additionally, Strathcona announced a partnership with Canada Growth Fund to develop up to $2 billion in carbon capture infrastructure, targeting a final investment decision by mid-2025. An Investor Day is scheduled for November 14, 2024, to elaborate on near- and long-term asset plans.Strathcona Resources Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.03B | 4.26B | 4.75B | 4.24B | 3.75B | 376.93M |
| Gross Profit | 1.10B | 1.17B | 1.30B | 1.09B | 1.29B | 180.82M |
| EBITDA | 1.70B | 1.76B | 2.01B | 1.85B | 1.51B | 179.27M |
| Net Income | 910.40M | 1.10B | 603.70M | 587.20M | 1.36B | 67.92M |
Balance Sheet | ||||||
| Total Assets | 8.79B | 11.05B | 10.98B | 10.50B | 9.16B | 886.17M |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 1.29B | 0.00 | 0.00 | 34.30M | 0.00 |
| Total Debt | 2.17B | 1.29B | 2.81B | 3.07B | 3.30B | 333.48M |
| Total Liabilities | 0.00 | 4.41B | 5.15B | 5.17B | 4.96B | 462.53M |
| Stockholders Equity | 4.34B | 6.64B | 5.82B | 5.33B | 4.20B | 423.64M |
Cash Flow | ||||||
| Free Cash Flow | 118.90M | 227.80M | 656.20M | 497.90M | 834.40M | -33.11M |
| Operating Cash Flow | 1.18B | 1.72B | 1.99B | 1.52B | 1.46B | 157.86M |
| Investing Cash Flow | -287.10M | -678.90M | -1.30B | -999.40M | -3.04B | -187.63M |
| Financing Cash Flow | -890.80M | -1.04B | -694.50M | -559.60M | 1.62B | 29.77M |
Strathcona Resources Technical Analysis
Positive
42.99
Price Trends
32.78
Positive
31.20
Positive
28.54
Positive
Market Momentum
2.63
Negative
68.31
Neutral
63.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SCR, the sentiment is Positive. The current price of 42.99 is above the 20-day moving average (MA) of 39.41, above the 50-day MA of 32.78, and above the 200-day MA of 28.54, indicating a bullish trend. The MACD of 2.63 indicates Negative momentum. The RSI at 68.31 is Neutral, neither overbought nor oversold. The STOCH value of 63.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SCR.
Strathcona Resources Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$5.34B | 10.89 | 15.30% | 5.77% | 11.52% | 24.76% | |
70 Outperform | C$9.21B | -15.31 | 15.77% | 2.99% | -11.41% | 40.81% | |
68 Neutral | C$5.61B | -110.02 | -1.84% | 1.91% | -1.36% | -149.45% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | C$1.80B | 31.40 | 2.90% | 1.59% | -9.76% | 374.65% | |
51 Neutral | C$1.72B | 36.95 | 3.19% | ― | 27.84% | 28.87% |
* Energy Sector Average
TSE:SCR
Strathcona Resources
42.99
26.06
153.90%
TSE:AAV
Advantage Energy
10.28
2.07
25.21%
TSE:BIR
Birchcliff Energy
6.54
1.12
20.55%
TSE:TVE
Tamarack Valley Energy
11.55
8.27
252.46%
TSE:PEY
Peyto Exploration & Dev
26.09
11.73
81.65%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.