Canadian Natural Boosts Q1 Production YOY

Canadian Natural Resources Limited reported net income of $722.2 million (CAD 987 million) for the first quarter, compared to $1.32 billion (CAD 1.8 billion) in the same period in 2023.

Canadian Natural increased its average production in the first quarter year over year to 1,333,502 barrels of oil equivalent per day (boepd), consisting of total liquids production of 975,668 barrels per day (bpd) and natural gas production of 2,147 million cubic feet per day (MMcfpd), according to the company’s recent earnings release.

Production in the previous-year quarter was 1,319,391 boepd, consisting of total liquids production of 962,908 bpd and natural gas production of 2,139 MMcfpd.

Canadian Natural President Scott Stauth said, "Crude oil price forecasts have strengthened for the remainder of 2024, including improvements in West Texas Intermediate (WTI), Western Canadian Select (WCS) and Synthetic Crude Oil (SCO) pricing over those prices experienced in the first quarter of 2024, driving significant targeted free cash flow generation going forward”.

“Canadian Natural's large, unique and diversified asset base provides a key competitive advantage enabling us to effectively allocate capital across our asset base and manage the pace and timing of development activities, maximizing value for our shareholders,” Stauth said.

“We are executing on our 2024 plan which is strategically weighted to longer cycle thermal development projects in the first half of the year and shorter cycle growth projects in the second half of the year, which aligns with increased market egress and improved forward strip crude oil pricing. As a result, we target to finish the year with strong exit rates as conventional activity ramps up in the second half of the year,” he continued.

The company’s near-term projects include the reliability enhancement project at Horizon Oil Sands, which targets to increase the two-year average synthetic crude oil capacity by approximately 14,000 bpd by extending the turnaround schedule to once every two years.

“In Oil Sands Mining and Upgrading, at the Horizon site, we are well prepared for 2024 turnaround activity and final tie ins of the reliability enhancement project in the second quarter of the year which will be followed by targeted strong production in the second half of the year with high upgrader utilization,” Stauth outlined. “Through optimization efforts and early turnaround work done in early 2024, we have reduced the Horizon turnaround to 28 days from 30 days and improved the commissioning schedule for the reliability enhancement project. These optimizations will advance and shorten commissioning timing after the turnaround to support high targeted utilization and production rates in the second half of the year”.

“We have a defined path to reduce our environmental footprint and continue delivering sustainable, responsibly produced energy that the world needs. We are committed to supporting Canada's and Alberta's climate goals and have robust environmental targets, including net zero greenhouse gas (GHG) emissions for the oil sands by 2050. We are uniquely positioned with diverse, long life low decline assets, which are ideal for applying GHG reduction technologies and providing industry leading environmental performance,” he added.

Canadian Natural Chief Financial Officer Mark Stainthorpe, said, "In Q1/24, we delivered strong financial results, including adjusted net earnings of approximately $1.5 billion and adjusted funds flow of $3.1 billion, which drove significant returns to shareholders totaling $1.7 billion in the quarter. Commencing in 2024, we are returning 100 percent of free cash flow to shareholders, as per our free cash flow allocation policy, and continue to manage the allocation on a forward looking annual basis”.

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