To be the pre-eminent global independent energy producer based in North America, we are guided by the following core principles:

1. Focus on value
2. Diversify our growth strategies
3. Be a niche player
4. Diversify our portfolio
5. Invest counter-cyclically
6. Exploit technology
7. Leverage energy market knowledge
8. Invest in people
9. Operate ethically and responsibly

1. Focus on Value
Our investment decisions are based on value criteria rather than just reserves and production growth. This means we are return-driven and create per share growth in cash flow, reserves and production on a debt-adjusted basis.

2. Diversify our Growth Strategies
We employ various strategies for growth. We are prepared to consider new strategies provided they create value and leverage competitive advantage that we possess or can acquire.

3. Be a Niche Player
We focus on what we do well and do not try to pursue all opportunities. We operate in those areas that provide an optimal combination of prospectivity, fiscal returns and growth opportunities.

4. Diversify Our Portfolio
We diversify our portfolio so we are not dependant on any one geographical location, political regime or asset maturity cycle. Our international diversification biases our portfolio towards oil but we believe prices are correlated over the long run based on relative energy content.

5. Invest Counter-Cyclically
Commodity price cycles provide opportunities to enhance value. We are prepared to buy or sell properties, and accelerate or slow down activities depending on evolving commodity price environments. Financial flexibility and liquidity is key to pursuing such opportunities.

6. Exploit Technology
We exploit technology to enhance the value chain. In our business, technology can provide access to new resources, increase recovery factors on existing reserves and lower finding, development and production costs.

7. Leverage Energy Market Knowledge
We are one of Canada’s largest independent energy marketers in regional markets around the world where we have built a strategic presence. Our strategy is to maximize the prices we receive for our production by leveraging third-party volumes and access to physical assets like transportation, storage and facilities. We also create value by trading around these physical assets when market opportunities present themselves.

8. Invest in People
We recognize our employees as one of our most important assets. We build partnerships with them to provide technical and personal development opportunities that benefit both them and us. Our employees possess a vast knowledge base built on diversified experiences around the world that we can leverage to create value.

9. Operate Ethically and Responsibly
Our commitment to safety, environment and social responsibility is essential to creating and sustaining our competitive advantage. Nexen is a respected business leader with a recognized global reputation for integrity, ethics and environmental stewardship. Our ongoing commitment to ethics and social responsibility is a strong influence on the strategies and opportunities we pursue.

Learn more about the specific growth strategies we pursue within these core principles.