Canadian Natural Resources Q3 profit surges on record production
Overview
Canada oil and gas producer's Q3 total production rose 2% yr/yr to 1,652,000 BOE/d
Net earnings and adjusted net earnings rose sharply from prior year
Company to allocate all free cash flow to share repurchases, targeting C$800 mln per month
Outlook
Company targets $800 mln per month in share repurchases in Nov and Dec 2026
Company to allocate 100% of free cash flow to share repurchases in 2027, subject to market
Company targets Oil Sands Mining and Upgrading production capacity of about 597,000 bbl/d
Result Drivers
THERMAL IN SITU GROWTH - Record thermal in situ production driven by new SAGD and CSS pads at Pike and Primrose
CONVENTIONAL LIQUIDS EXPANSION - Record North America E&P liquids production aided by acquisitions and strong well performance
SULPHUR PRICING - Higher sulphur prices and production contributed to increased revenue in the quarter
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Net Income | C$3 bln | ||
Q3 Capex | C$1.88 bln | ||
Q3 Free Cash Flow | C$2.10 bln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 12 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the oil & gas exploration and production peer group is "buy."
Wall Street's median 12-month price target for Canadian Natural Resources Ltd is C$74.00, about 6.9% above its November 4 closing price of C$69.20
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
Nov 3 - Canada's Suncor Q3 adjusted operating earnings jump on higher upstream prices
Nov 4 - Canada's Tourmaline Oil Q3 earnings jump
Nov 4 - Cenovus expects widening Canadian crude discount to be temporary; won't change output plans
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)