Financial Data and Key Metrics Changes - Canadian Natural reported net earnings of CAD 1.55 billion and significant adjusted funds flow of CAD 3.05 billion for Q2 2021, with free cash flow of approximately CAD 1.5 billion after capital and dividends [29] - The net debt balance at Q2 2021 was CAD 18.2 billion, down CAD 3.1 billion from the end of 2020, and a reduction of CAD 1.7 billion from Q1 2021 [30] - The company has returned over CAD 1.5 billion to shareholders in 2021 through dividends and share repurchases [30] Business Line Data and Key Metrics Changes - Quarterly production reached approximately 1.142 million BOEs per day, with a breakdown of 43% light crude oil, 34% heavy oil, and 23% natural gas [34] - North American natural gas production was 1.614 Bcf per day, an increase from Q1's 1.598 Bcf per day [14] - Q2 North American light oil and NGL production was 98,559 barrels per day, up 6% from Q1 2021 [18] Market Data and Key Metrics Changes - AECO strip prices for natural gas are strong at over CAD 3.50 per GJ, improving the economics of natural gas projects [17] - The company revised its natural gas guidance up to 1.68 Bcf per day to 1.72 Bcf, targeting an exit rate in excess of 1.8 Bcf per day by the end of 2021 [17] Company Strategy and Development Direction - The company focuses on generating real returns for shareholders and has a corporate strategy that emphasizes capital discipline and operational excellence [3][4] - Canadian Natural aims to achieve net zero emissions in oil sands operations by 2050, with interim targets set for 2030 [10][36] - The company plans to allocate 50% of free cash flow to share repurchases once net debt is below CAD 15 billion, with the remaining 50% aimed at strengthening the balance sheet [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver meaningful economic growth and increasing returns to shareholders [4] - The positive outlook for commodity prices in 2021 has led to an increase in the annual capital budget by CAD 275 million [11] - The company is committed to maintaining a sustainable, growing, and predictable dividend, having increased it for 21 consecutive years [31] Other Important Information - The company has a strong liquidity position with approximately CAD 5.6 billion available at Q2 2021 [31] - Canadian Natural's environmental initiatives have led to a 38% reduction in GHG intensity in oil sands operations from 2016 to 2020 [9] Q&A Session Summary Question: What is the sustainability of the 495,000 barrels per day production at Horizon? - Management indicated that the production level is becoming more achievable on a sustained basis due to continuous improvements [39] Question: How does the increased production impact operating costs? - Incremental barrels produced are low in cost, helping to absorb higher gas and power prices [40] Question: What is the outlook for capital spending in 2022? - Management stated it is too early to provide guidance, as the capital budget is typically set in the fall [42] Question: Will there be another dividend raise later this year? - The board will consider the dividend at the regular time, with significant free cash flow expected [45] Question: What is the current status of emissions reduction initiatives? - Management noted that teams are using advanced technologies to reduce methane emissions and improve operational efficiency [55]

Financial Data and Key Metrics Changes - Canadian Natural reported a strong Q1 2021 with adjusted funds flow over CAD 2.7 billion and free cash flow exceeding CAD 1.4 billion after capital expenditures and dividends [20][21] - Absolute debt was reduced by CAD 1.4 billion compared to Q4 2020, marking a total reduction of CAD 2.9 billion since June 2020 [20][21] - The company increased its quarterly dividend by 11% to CAD 0.47 per share, contributing to a year-to-date shareholder return of approximately CAD 1.1 billion [20][21] Business Line Data and Key Metrics Changes - Record production of approximately 1.246 million BOEs and record liquids production of approximately 979,000 barrels per day, representing increases of 6% and 4% respectively over Q1 2020 [12] - Oil sands mining production reached approximately 468,800 barrels per day, while North American E&P production, including thermal, was approximately 478,700 barrels per day [12] - Natural gas production was approximately 1.6 Bcf, reflecting an 11% increase over Q1 2020 [12] Market Data and Key Metrics Changes - The Canadian oil and gas sector is expected to benefit from improving egress and heavy oil differentials returning to historical levels [17] - The company anticipates significant free cash flow generation in 2021, targeting CAD 5.7 billion to CAD 6.2 billion after budgeted capital and dividends [20][21] Company Strategy and Development Direction - Canadian Natural focuses on generating real returns for shareholders while maintaining a strong balance sheet and capital discipline [3][14] - The company emphasizes environmental, social, and governance (ESG) performance, aiming for long-term value creation through technology and innovation [6][8] - The corporate strategy includes a balanced and diverse product mix, with approximately 48% being high-value light crude oil and NGL [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver significant free cash flow and reduce debt quickly due to improved pricing [20][21] - The company is optimistic about the Canadian oil and gas industry's future, expecting the discount to global peers to diminish [17] - Management highlighted the importance of technology and innovation in achieving net-zero emissions and improving GHG intensity [11][12] Other Important Information - Canadian Natural has a unique asset base with a low corporate decline rate of approximately 10%, requiring less maintenance capital compared to peers [15][19] - The company has a strong reserve life index of approximately 30 years, with 61% of reserves being long life, no decline SCO reserves [16] Q&A Session Summary Question: What is the endgame in terms of the leveraging process? - Management indicated that the focus will remain on balance sheet improvement and absolute debt repayment in the near term, with buybacks currently aimed at offsetting dilution [31][32] Question: Thoughts on current market access and egress? - Management expects egress to improve, with no apportionment on the light oil side in Alberta, but noted that it is too early to speculate on the impact of ongoing issues [33][34] Question: Update on solvent technology application? - Management confirmed that the pilot at Kirby South is advanced, and both Kirby and Jackfish sites are suitable for solvent technology [37][38] Question: Scope for increasing CO2 capture at Horizon facility? - Management stated there is available capacity for increased CO2 capture at Horizon, with opportunities for expansion [39][40] Question: Thoughts on the A&D market? - Management noted that while smaller entities are consolidating, they do not see significant opportunities for larger acquisitions as they have ample opportunities within their own portfolio [48][49] Question: Has the net debt target changed post-COVID? - Management affirmed that while they are focused on absolute debt reduction, the long-term target remains relevant [51][52] Question: Will there be incremental capital spending for GHG objectives? - Management indicated it is too early to determine the capital profile for GHG initiatives, pending government consultations [54][55]

| --- | --- | |------------------|-----------------------------------| | | | | | | | | | | Canadian Natural | | | | Corporate Presentation April 2021 | Delivering Value & Growth | --- | --- | --- | --- | |------------------------------------------------|-------|----------------------|-------| | SNAPSHOT 2021F 2020 2019 | | | | | Capital expenditures – net (C$ million) (1) | | $3,205 $2,701 $3,904 | | | Annualized dividend (C$/share) (2) | | $1.88 $1.70 $1.50 | | | Production (annual average, before royaltie ...

Canadian Natural Resources Limited (NYSE:CNQ) Q4 2020 Earnings Conference Call March 4, 2021 11:00 AM ET Company Participants Corey Bieber - Executive Advisor Tim McKay - President Darren Fichter - Chief Operating Officer, Exploration and Production Mark Stainthorpe - Chief Financial Officer Conference Call Participants Menno Hulshof - TD Securities Philip Gresh - J.P. Morgan Greg Pardy - RBC Capital Markets Manav Gupta - Credit Suisse Neil Mehta - Goldman Sachs William Lacey - ATB Capital Markets Operator ...

Canadian Natural's Investor Presentation & 2021 Budget December 9, 2020 | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Canadian Natural Resources Limited (NYSE:CNQ) Q3 2020 Earnings Conference Call November 5, 2020 11:00 AM ET Company Participants Corey Bieber - Executive Advisor Tim McKay - President Mark Stainthorpe - Chief Financial Officer Conference Call Participants Greg Pardy - RBC Capital Markets Neil Mehta - Goldman Sachs Asit Sen - Bank of America Menno Hulshof - TD Securities Manav Gupta - Credit Suisse Matt Murphy - Tutor, Pickering, Holt Roger Reed - Wells Fargo Operator Good morning, ladies and gentlemen, and ...

Canadian Natural Resources Ltd (NYSE:CNQ) Q2 2020 Earnings Conference Call August 6, 2020 11:00 AM ET Company Participants | --- | --- | |------------------------------------------|-------| | | | | | | | Corey Bieber - Executive Advisor | | | Timothy McKay - President & Director | | | Mark Stainthorpe - CFO & SVP, Finance | | | Conference Call Participants | | | Greg Pardy - RBC Capital Markets | | | Neil Mehta - Goldman Sachs Group | | | Asit Sen - Bank of America Merrill Lynch | | | Joseph Gemino - Mornin ...

| --- | --- | |-----------|-------| | | | | Corporate | | Delivering Value & Growth | --- | --- | --- | |----------------------------------------------------------|-------|-------------| | SNAPSHOT 2019 2020F | | | | Capital expenditures – net (C$ million)(1) $3,904 $2,680 | | | | Annualized dividend (C$/share)(2) | | $1.50 $1.70 | | Production (annual average, before royalties) | | | | Natural gas (MMcf/d) 1,491 | | | | Crude Oil (Mbbl/d) 850 | | | | BOE (MBOE/d) 1,099 | | | Company Gross Reserves, before ...

Canadian Natural Resources Limited (NYSE:CNQ) Q1 2020 Earnings Conference Call May 7, 2020 10:00 AM ET Company Participants Corey Bieber - Executive Advisor Tim McKay - President Mark Stainthorpe - Chief Financial Officer Conference Call Participants Greg Pardy - RBC Capital Markets Benny Wong - Morgan Stanley. Philip Gresh - JPMorgan Phi Skolnick - Eight Capital Mike Dunn - Stifel FirstEnergy Menno Hulshof - Dundee Securities Manav Gupta - Credit Suisse Neil Mehta - Goldman Sachs Harry Mateer - Barclays Ca ...

Canadian Natural Resources Limited (NYSE:CNQ) Q4 2019 Earnings Conference Call March 5, 2020 11:00 AM ET Company Participants Corey Bieber - Executive Advisor Steve Laut - Executive Vice Chairman Tim McKay - President Scott Stauth - Chief Operating Officer for Oil Sands Darren Fichter - Chief Operating Officer, Exploration and Production Mark Stainthorpe - Chief Financial Officer Conference Call Participants Greg Pardy - RBC Capital Markets Benny Wong - Morgan Stanley Dennis Fong - Canaccord Genuity Asit Se ...