Key Takeaways CNQ highlights 592,000 barrels per day of mining capacity, with most output upgraded to Synthetic Crude Oil.CNQ's oil sands mining holds 8.38 barrels of reserves, representing over 40% of total reserves and long life.CNQ cites low operating costs, low maintenance needs and high reliability across its mining operations.Canadian Natural Resources Limited (CNQ) continues to demonstrate the durability and scale of its Oil Sands Mining & Upgrading operations, which anchor its long-life production b ...

Group 1 - The article emphasizes the current favorable conditions for income investors, particularly in durable companies with valuable assets [2] - The S&P 500 is yielding only 1.1%, prompting a focus on higher returns through defensive stocks with medium- to long-term horizons [2] - The iREIT®+HOYA Capital group provides investment research on various income-producing asset classes, targeting dividend yields up to 10% [2] Group 2 - The service aims to help investors achieve dependable monthly income, portfolio diversification, and inflation hedging [2] - It covers a range of investment vehicles including REITs, ETFs, closed-end funds, preferreds, and dividend champions [2]

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Core Viewpoint - Canadian Natural is positioned as an unparalleled independent energy company that investors should consider owning [2]. Group 1: Company Overview - The company emphasizes its unparalleled assets, execution, and resilience as key differentiators in the energy sector [2]. - The agenda for the Investor Open House includes presentations from various executives, highlighting the company's strengths and future outlook [3]. Group 2: Leadership and Structure - Scott Stauth, the President, will initiate the presentation by establishing the foundation of Canadian Natural's unique position in the industry [3]. - Robin Zabek, CEO of E&P, will discuss the company's conventional assets, while Jay Froc, COO of Oil Sands, will cover thermal and oil sands mining and upgrading [3]. - Ron Laing, Chief Commercial and Corporate Development Officer, will present on the company's execution strategies, followed by CFO Victor discussing resilience [3].

Core Insights - Canadian Natural Resources Limited (CNQ) reported third-quarter 2025 adjusted earnings per share of 62 cents, exceeding the Zacks Consensus Estimate of 54 cents, but down from 71 cents in the previous year due to lower realized oil and natural gas liquid prices and rising expenses [1][11] - Total revenues reached $6.9 billion, an increase from $6.5 billion in the prior-year period, driven by higher production volumes and surpassing the Zacks Consensus Estimate of $6.7 billion [2][11] Financial Performance - CNQ's net earnings for the third quarter were approximately C$0.6 billion, with adjusted net earnings from operations around C$1.8 billion [5] - Cash flows from operating activities totaled approximately C$3.9 billion, with adjusted funds flow also reaching approximately C$3.9 billion [5] - The company returned about C$1.5 billion to shareholders, including C$1.2 billion in dividends and C$0.3 billion from share repurchases [4] Production and Prices - Quarterly production was reported at 1,620,261 barrels of oil equivalent per day (Boe/d), an 18.9% increase year-over-year, exceeding model projections [7][11] - Oil and NGL output increased to 1,175,604 barrels per day (Bbl/d) from 1,021,572 Bbl/d a year ago, also beating projections [7] - Natural gas volumes rose to 2,668 million cubic feet per day (MMcf/d), a 30.2% increase from the previous year, surpassing model estimates [8] Costs and Capital Expenditure - Total expenses for the quarter were C$9 billion, up from C$6.1 billion in the prior year, primarily due to increased depletion, depreciation, and amortization expenses [14] - Capital expenditure totaled C$2.1 billion, compared to C$1.3 billion a year ago [14] Shareholder Returns and Dividends - The board approved a quarterly cash dividend of 58.75 Canadian cents per common share, payable on January 6, 2026, marking a commitment to shareholder value [3] - CNQ has a strong track record of dividend growth, with a 21% annual growth rate over the past 25 years [3] Guidance and Future Outlook - CNQ increased its 2025 capital forecast to C$6.7 billion and raised production targets to a range of 1,560 to 1,580 thousand barrels of oil equivalent per day [16] - Natural gas production is expected to range between 2,535 and 2,575 MMcf/d for 2025 [16] Strategic Developments - After the quarter-end, CNQ completed the AOSP swap with Shell, gaining full ownership of the Albian oil sands mines and an 80% stake in the Scotford Upgrader, adding 31,000 bbl/d of stable bitumen output [13]

Core Viewpoint - Canadian Natural Resources forecasts a modest rise in production for 2026 while reducing total capital spending from current levels, indicating a focus on efficiency and discipline [1] Group 1: Production Outlook - The company anticipates a slight increase in production for the year 2026 [1] Group 2: Capital Spending - Total capital spending is expected to be lower than this year's levels, reflecting a strategic emphasis on cost management and operational efficiency [1]

CANADIAN NATURAL RESOURCES LIMITED MANAGEMENT'S DISCUSSION & ANALYSIS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 NOVEMBER 5, 2025 MANAGEMENT'S DISCUSSION AND ANALYSIS ADVISORY Special Note Regarding Forward-Looking Statements Certain statements relating to Canadian Natural Resources Limited (the "Company") in this document or documents incorporated herein by reference constitute forward-looking statements or information (collectively referred to herein as "forward-looking statements") within the ...

Core Viewpoint - Canadian Natural Resources (CNQ) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company-Specific Insights - For Canadian Natural Resources, the recent upgrade reflects an improvement in its underlying business, which is expected to drive the stock price higher as investors respond to this positive trend [5][10]. - The Zacks Consensus Estimate for Canadian Natural Resources indicates an expected earnings per share of $2.43 for the fiscal year ending December 2025, with a 6.3% increase in estimates over the past three months [8]. Zacks Rating System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Financial Data and Key Metrics Changes - Canadian Natural achieved record quarterly corporate production of approximately 1.62 million BOEs per day, an increase of approximately 257,000 BOEs per day or up 19% from Q3 2024 levels [4][14] - Adjusted funds flow for Q3 2025 was approximately CAD 3.9 billion, with adjusted net earnings of CAD 1.8 billion [14][16] - Returns to shareholders in the quarter were CAD 1.5 billion, including CAD 1.2 billion in dividends and CAD 300 million in share repurchases [14][15] - The company reported a strong balance sheet with a debt to EBITDA ratio of 0.9 times and liquidity of over CAD 4.3 billion [15][16] Business Line Data and Key Metrics Changes - Oil sands mining and upgrading production averaged 581,136 bbl per day, an increase of approximately 83,500 bbl per day or 17% from Q3 2024 levels [7] - Thermal in situ operations averaged 274,752 bbl per day, slightly up from Q3 2024 levels, with operating costs averaging CAD 10.35 per barrel, a decrease of 2% [8] - Primary heavy crude oil production averaged 87,705 bbl per day, an increase of 14% from Q3 2024 levels, with operating costs averaging CAD 16.46 per barrel, a decrease of 12% [9] - North American light crude oil production averaged 180,100 bbl per day, an increase of 69% from Q3 2024 levels [10] Market Data and Key Metrics Changes - North American natural gas production averaged approximately 2.66 BCF for the quarter, an increase of 30% from Q3 2024 levels [11] - Operating costs for North American natural gas averaged CAD 1.14 per MCF, a decrease of 7% from Q3 2024 levels [11] Company Strategy and Development Direction - The company is focused on continuous improvement and operational efficiency, with a commitment to driving execution of growth opportunities and increasing shareholder value [12][16] - Canadian Natural has increased its dividend for 25 consecutive years, reflecting a strong commitment to returning value to shareholders [15] - The company is exploring egress opportunities to enhance market access for its crude, particularly in light of new pipeline projects [28][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current operational setup, indicating that all assets are performing as expected [48] - There is a cautious but positive outlook regarding engagement with the federal government on carbon competitiveness and pathways for future growth [39][40] - The company anticipates continued strong demand for Canadian heavy crude, supported by egress opportunities and stable pricing [55] Other Important Information - The company closed an asset swap with Shell Canada, enhancing its operational capabilities and production capacity [5][6] - The board approved a quarterly dividend of CAD 58.75 per common share, payable on January 6, 2026 [15] Q&A Session Summary Question: Potential operational benefits from the Albion Oil Sands asset swap - Management highlighted the potential for equipment utilization and cost savings due to the proximity of the two mining assets [20] Question: Opportunities for egress capacity to Midcontinent or Gulf Coast refiners - Management is open to participating in projects that enhance egress capacity, which is crucial for maintaining strong pricing differentials [28] Question: Need for further consolidation in Western Canada gas - Management noted that while consolidation is occurring, the focus should be on increasing egress opportunities to unlock the basin's potential [33] Question: Implications of T block decommissioning on capital expenditures - Management indicated that capital expenditures for 2026 are expected to increase modestly, with tax recoveries playing a significant role [44] Question: Operational setup and asset performance as the year ends - Management confirmed that all assets are performing as expected, with no significant issues to report [48] Question: Thoughts on M&A activity and capital allocation strategy - Management stated that while they look at M&A opportunities, there are no significant changes to their capital allocation strategy [54]

Financial Data and Key Metrics Changes - Canadian Natural achieved record quarterly corporate production of approximately 1.62 million BOEs per day, a significant increase of approximately 257,000 BOEs per day, or up 19% from Q3 2024 levels [4][14] - Adjusted funds flow for Q3 2025 was approximately CAD 3.9 billion, with adjusted net earnings of CAD 1.8 billion [14][16] - Returns to shareholders in the quarter totaled CAD 1.5 billion, including CAD 1.2 billion in dividends and CAD 300 million in share repurchases [14][15] - The company increased its 2025 corporate production guidance range to 1,560,000-1,580,000 BOEs per day [6] Business Line Data and Key Metrics Changes - Oil sands mining and upgrading production averaged 581,136 barrels per day of SCO, an increase of approximately 83,500 barrels per day, or 17% from Q3 2024 levels [7] - Thermal in situ operations averaged 274,752 barrels per day, showing slight growth from Q3 2024 [8] - Primary heavy crude oil production averaged 87,705 barrels per day, an increase of 14% from Q3 2024 levels [9] - North American light crude oil and natural gas production averaged 180,100 barrels per day, a 69% increase from Q3 2024 [10][11] Market Data and Key Metrics Changes - North American natural gas production averaged approximately 2.66 BCF for the quarter, a 30% increase from Q3 2024 levels [11] - Operating costs for North American natural gas averaged CAD 1.14 per MCF, a decrease of 7% from Q3 2024 [11] Company Strategy and Development Direction - The company focuses on continuous improvement and operational efficiency to drive value creation for shareholders [12][16] - Canadian Natural is exploring egress opportunities to enhance market access for its crude, particularly in light of new pipeline projects [28][40] - The company is committed to capital allocation towards high-return projects without reliance on any single commodity [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the operational setup into the end of the year, with all assets performing as expected [48] - There is a positive outlook on discussions with the federal government regarding carbon competitiveness and egress opportunities [39][40] - The company anticipates maintaining light-heavy differentials in the range of CAD 10-13 per barrel, supported by strong demand and egress capacity [55] Other Important Information - The company has a strong balance sheet with a quarter-end debt to EBITDA ratio of 0.9 times and liquidity of over CAD 4.3 billion [15][16] - Canadian Natural has increased its dividend for 25 consecutive years, with a CAGR of 21% [14][15] Q&A Session Summary Question: Potential operational benefits from the Albion Oil Sands asset swap - Management highlighted the potential for equipment utilization and cost savings due to the proximity of the two mining assets [20] Question: Opportunities for egress capacity to Midcontinent or Gulf Coast refiners - Management is open to reviewing opportunities for egress and sees positive implications for Canadian crude pricing [28] Question: Need for further consolidation in Western Canada gas - Management noted that while consolidation is occurring, the focus should be on increasing egress opportunities for gas [33] Question: Production growth outlook from Palliser and Endeavor assets - Management confirmed that both areas will be part of the capital allocation strategy for next year [34] Question: Progress on working with the federal government on pathways - Management reported more positive engagement with the new federal government, emphasizing the need for detailed discussions on carbon competitiveness [39][40] Question: Implications of potential acceleration of T block decommissioning on capital expenditures - Management indicated that capital expenditures for 2026 are expected to increase modestly, with tax recoveries considered [44] Question: Operational performance as the year ends - Management stated that all assets are performing as expected, with strong optimization and utilization [48] Question: Scheduled maintenance for 2026 - Management confirmed that Horizon will have a significant turnaround in Q3 2026, along with routine maintenance for thermal facilities [50] Question: Updated thoughts on M&A and capital allocation strategy - Management indicated no significant changes in M&A strategy, focusing on accretive opportunities close to core areas [54]