Canadian Natural Resources CNQ-T +5.99%increase reported a first-quarter profit on Thursday that beat analysts’ estimates, helped by higher oil and natural gas production, sending the company’s U.S.-listed shares up more than 2 per cent in premarket trading.
Oil producers in Canada are benefiting from the start up of the Trans Mountain pipeline expansion project, which has nearly tripled the flow of oil to the country’s Pacific Coast from landlocked Alberta, raised the price of Canadian crude and opened up market access to refineries in Asia and the U.S. West Coast.
Canadian Natural Resources’ quarterly output also got a boost from the recently acquired Athabasca oil sands and Duvernay shale formation assets, which the company bought from Chevron for US$6.5-billion.
Canadian Natural Resources, the country’s largest oil and gas producer, said its total output rose to 1.58 million barrels of oil equivalent per day (mboepd) during the first quarter from 1.33 mboepd.
The company produced 1.17 million barrels per day (bpd) of liquids and 2.45 billion cubic feet (bcf) per day of natural gas during the quarter.
Total realized price for exploration and production liquids rose 14 per cent to $79.85 per barrel, while realized prices for natural gas output climbed nearly 23 per cent to $3.13 per thousand cubic feet.
Canadian Natural Resources said it would lower its annual capital budget by $100-million to $6.05-billion, adding that it would have no impact on the company’s planned operating activities or targeted production levels for 2025.
The company aims to produce between 1.51 million and 1.55 million barrels of oil equivalent per day (boepd) in 2025, the upper limit of which is in line with analysts’ expectations, according to data compiled by LSEG.
On an adjusted basis, Canadian Natural Resources earned $1.16 per share in the quarter, compared with analysts’ average expectation of $1.05.
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