Canadian Natural Resources CNQ-T -0.67%decrease on Thursday posted quarterly earnings that narrowly beat analysts’ estimates, as record oil and gas production helped offset a decline in crude prices.
The country’s oil sands producers, including Canadian Natural Resources, have shown resilience during the global oil industry downturn, buoyed by years of investment that have made them among the lowest-cost operators in North America.
Quarterly production jumped about 19 per cent from a year earlier to a record 1.62 million barrels of oil equivalent per day (boepd), driven by both acquisitions and strong operational performance.
The Calgary-based company raised its 2025 production guidance to between 1.56 million and 1.58 million boepd from a prior range of 1.51 million to 1.55 million boepd, citing newly integrated assets and stable field performance.
Following its asset swap with Shell Canada SHEL-N -0.05%decrease on Nov. 1, Canadian Natural now fully owns and operates the Albian oil sands mines and associated reserves, and holds an 80-per-cent non-operated stake in the Scotford Upgrader and Quest facilities.
The deal adds about 31,000 barrels per day of low-decline bitumen output, further strengthening its oil sands business.
The company kept its annual capital budget steady at about $5.9-billion.
While weaker Western Canadian Select differentials and maintenance work have tempered margins at times, Canadian producers remain well-positioned heading into 2026 with disciplined capital spending.
For Canadian Natural, realized price of exploration and production liquids fell 8.3 per cent in the reported quarter to $72.57 per barrel.
The quarter included a $700-million charge related to updated cost estimates for its Ninian and T-Block assets in the North Sea.
On an adjusted profit of 86 cents a share for the three months ended Sept. 30, compared with analysts’ average estimate of 85 cents, according to data compiled by LSEG.
Leave a Reply
You must be logged in to post a comment.