Group 1 - The current market presents a favorable environment for value investors, particularly in sectors such as energy, pharmaceuticals, and real estate, which are trading at low valuations [2] - The focus is on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] Group 2 - The investment strategy emphasizes defensive stocks with a medium- to long-term investment horizon [2]

Group 1 - The article promotes a research service focused on various income-generating investment vehicles such as REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs, highlighting its extensive research capabilities and positive user testimonials [1] - It mentions that there are 438 testimonials, with most being rated 5 stars, indicating high customer satisfaction and trust in the service [1] Group 2 - The article includes a disclosure from the analyst stating a beneficial long position in several companies, which may influence the analysis presented [2] - It clarifies that the opinions expressed are those of the author and not influenced by compensation from any mentioned companies, ensuring transparency in the analysis [2] Group 3 - The article contains a disclaimer from Seeking Alpha, emphasizing that past performance does not guarantee future results and that no specific investment advice is being provided [3] - It notes that the views expressed may not reflect those of Seeking Alpha as a whole, indicating a diversity of opinions among its analysts [3]

Core Insights - Canadian Natural Resources Limited (CNQ) reported second-quarter 2025 adjusted earnings per share of 51 cents, exceeding the Zacks Consensus Estimate of 44 cents, but down from 64 cents in the same quarter last year due to lower realized oil and natural gas liquid prices [1][11] - Total revenues for the quarter were $6.3 billion, a decrease from $6.6 billion in the prior-year period, but slightly above the Zacks Consensus Estimate by $5 million [2][11] Financial Performance - The company returned approximately C$1.6 billion to shareholders in Q2 2025, which included C$1.2 billion in dividends and C$0.4 billion from the repurchase of 8.6 million common shares at a weighted average price of C$41.46 per share [4][11] - Net earnings for the quarter were approximately C$2.5 billion, with adjusted net earnings from operations around C$1.5 billion [5] - Cash flows from operating activities totaled approximately C$3.1 billion, while adjusted funds flow reached approximately C$3.3 billion [5] Production and Prices - CNQ reported quarterly production of 1,420,358 barrels of oil equivalent per day (Boe/d), a 10.5% increase from the prior-year quarter, although it fell short of the model projection of 1,543,882 Boe/d [7] - Oil and NGL output increased to 1,019,149 barrels per day (Bbl/d) from 934,066 Bbl/d a year ago, but also missed the model projection of 1,137,442 Bbl/d [7] - Natural gas volumes totaled 2,407 million cubic feet per day (MMcf/d), up 14.1% from 2,110 MMcf/d in the year-ago period, yet below the model projection of 2,439 MMcf/d [8] Costs and Capital Expenditure - Total expenses in the quarter were C$5.9 billion, down from C$6.8 billion in the prior-year period, primarily due to lower blending and feedstock expenses [15] - Capital expenditure for the quarter totaled C$3 billion, compared to C$2 billion a year ago [15] Balance Sheet - As of June 30, 2025, CNQ had cash and cash equivalents of C$102 million and long-term debt of approximately C$15.7 billion, with a debt to capitalization ratio of about 27.6% [16] Guidance - CNQ's capital budget for 2025 remains unchanged at $6.05 billion, excluding abandonments, with a production target in the range of 1,510-1,555 thousand barrels of oil equivalent per day [17]

Group 1 - The article discusses the performance and investment outlook of LandBridge (LB) and Texas Pacific Land (TPL), both of which are under pressure due to the current state of the oil and gas market [1] - The author holds a long position in TPL, LB, and CNQ, indicating a personal investment interest in these companies [1] Group 2 - The article emphasizes the importance of thorough research and analysis in making investment decisions, particularly in the context of REITs and other income alternatives [1]

CANADIAN NATURAL RESOURCES LIMITED 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 meaning of applicable securities legislation. Forward-looking statements can be identified by the words "b ...

Core Insights - Canadian Natural Resources (CNQ) reported a revenue of $6.29 billion for the quarter ended June 2025, reflecting a year-over-year decline of 5% [1] - The earnings per share (EPS) for the same period was $0.51, down from $0.64 a year ago, but exceeded the consensus estimate of $0.44 by 15.91% [1] Financial Performance - The reported revenue of $6.29 billion slightly surpassed the Zacks Consensus Estimate of $6.28 billion, resulting in a surprise of +0.09% [1] - The company’s stock has returned -2% over the past month, while the Zacks S&P 500 composite increased by +1.2% [3] Production Metrics - Total average daily production was 1,420,358 BOE/D, below the analyst estimate of 1,467,614 BOE/D [4] - Oil & liquids average daily production was 1,019,149 BBL/D, compared to the estimate of 1,051,255 BBL/D [4] - Natural gas average daily production was 2,407 million cubic feet per day, slightly below the estimate of 2,427.79 million cubic feet per day [4] - Thermal In Situ Oil production was 274.79 thousand barrels per day, compared to the estimate of 283.52 thousand barrels per day [4] - Oil Sands Mining and Upgrading production was 463.81 thousand barrels per day, below the estimate of 486.95 thousand barrels per day [4] - North Sea Oil production was 7.76 thousand barrels per day, significantly lower than the estimate of 11.92 thousand barrels per day [4] - Offshore Africa Oil production was 1.77 thousand barrels per day, compared to the estimate of 7.21 thousand barrels per day [4] - North America Natural Gas production was 2,398 Mcf/D, below the estimate of 2,452.11 Mcf/D [4]

Group 1 - The article promotes iREIT on Alpha as a source for in-depth research on various investment vehicles including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] - It highlights the positive feedback from users, with 438 testimonials, most rated 5 stars, indicating a strong reputation in the investment community [1] Group 2 - The article includes a disclosure from the analyst stating a beneficial long position in shares of TPL, LB, and CNQ, indicating personal investment interests [2] - It clarifies that the opinions expressed are those of the author and not influenced by compensation from any company mentioned [2] Group 3 - Seeking Alpha emphasizes that past performance does not guarantee future results, indicating a cautious approach to investment advice [3] - The platform notes that its analysts are third-party authors, which may include both professional and individual investors without formal licensing [3]

Core Viewpoint - Canadian Natural Resources Limited (CNRL) reported strong financial performance in Q2 2025, driven by effective capital allocation, operational efficiencies, and successful acquisitions, which collectively enhance shareholder value. Financial Performance - In Q2 2025, CNRL generated adjusted net earnings of approximately $1.5 billion or $0.71 per share, with adjusted funds flow of $3.3 billion or $1.56 per share [7][9][12] - The company returned approximately $1.6 billion to shareholders in Q2 2025, including $1.2 billion in dividends and $0.4 billion in share repurchases [7][15] - For the first half of 2025, net earnings totaled approximately $4.9 billion, reflecting a significant increase from $2.7 billion in the same period of 2024 [9][12] Production and Operations - CNRL's total production in Q2 2025 was approximately 1,420,358 BOE/d, a 10% increase from Q2 2024 levels, despite a production reduction of about 120,000 bbl/d due to a planned turnaround at the Athabasca Oil Sands Project (AOSP) [3][13] - Oil Sands Mining and Upgrading production averaged 463,808 bbl/d in Q2 2025, a 13% increase from Q2 2024, attributed to successful operational enhancements [29][32] - The company achieved high upgrader utilization of 106% in July 2025, with expectations for continued strong operating results in the second half of 2025 [2][32] Capital Allocation and Acquisitions - CNRL successfully completed a planned turnaround at AOSP five days ahead of schedule and on budget, enhancing production reliability [2][3] - The company closed an acquisition of liquids-rich Montney assets for approximately $750 million, adding about 32,000 BOE/d to production [7][17] - CNRL's business model allows for a top-tier WTI breakeven in the low to mid-US$40 per barrel range, ensuring sufficient cash flow to cover maintenance capital and dividends [8][9] Cost Management - Operating costs in the Duvernay assets averaged $8.43/BOE in Q2 2025, a decrease of 11% from Q1 2025 levels, reflecting continuous improvement efforts [5][27] - The company achieved strong capital efficiencies in its drilling programs, targeting to drill 182 net primary heavy crude oil multilateral wells in 2025, an increase of 26 wells from the original budget [4][24] Market Conditions - The WTI benchmark price averaged US$63.71/bbl in Q2 2025, reflecting a decrease from previous quarters due to weaker global demand and increased OPEC+ output [33][36] - The SCO price averaged US$64.69/bbl in Q2 2025, representing a premium to WTI pricing, which improved compared to previous quarters [33][36]

Core Viewpoint - Canadian Natural Resources Limited (CNQ) is expected to report second-quarter 2025 earnings of 44 cents per share on revenues of $6.28 billion, reflecting a year-over-year decrease in both earnings and revenues [1][3][8]. Group 1: Recent Performance - In the last reported quarter, CNQ achieved adjusted earnings per share of 81 cents, surpassing the Zacks Consensus Estimate of 73 cents, with total revenues of $7.6 billion exceeding the estimate of $6.8 billion [2]. - CNQ has beaten the Zacks Consensus Estimate three times in the last four quarters, with an average surprise of 3.95% [3]. Group 2: Factors Influencing Q2 Performance - The company has seen a rebound in North America's natural gas prices, with Henry Hub spot prices averaging $3.19 per million British thermal units in Q2 2025, which is expected to support CNQ's realized pricing [5]. - CNQ's production growth is anticipated to be around 12% for the year, driven by recent acquisitions and ongoing drilling programs, contributing to increased output in Q2 2025 [6]. - However, revenues are projected to decline by 5.1% from the previous year due to poor performance in the Exploration and Production segments [7]. Group 3: Cost and Margin Pressures - The newly imposed U.S. tariffs on Canadian oil and gas exports since March 2025 are expected to create additional cost burdens and competitive disadvantages for CNQ, impacting margins and earnings [8][9]. - Total expenses for Q2 are estimated at C$7.13 billion, a 4.3% increase from C$6.80 billion in the same quarter last year, with production costs rising by 2.4% to C$2.03 billion [10].

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Canadian Natural Resources (CNQ) due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to show earnings of $0.44 per share, reflecting a year-over-year decrease of 31.3%, with revenues projected at $6.28 billion, down 5.1% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for CNQ is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +4.89%, indicating a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, CNQ exceeded the expected earnings of $0.73 per share by delivering $0.81, resulting in a surprise of +10.96%. Over the last four quarters, the company has beaten consensus EPS estimates three times [13][14]. Conclusion - Canadian Natural Resources is positioned as a strong candidate for an earnings beat, but investors should consider additional factors beyond earnings expectations when making investment decisions [17].