Core Viewpoint - Canadian Natural Resources Limited is conducting its Q1 2025 earnings conference call, highlighting its operational performance and financial results [1][3]. Group 1: Company Overview - The conference call is hosted by Lance Casson, Manager of Investor Relations, with key executives including Scott Stauth (President) and Victor Darel (CFO) present [2][4]. - The company emphasizes that all financial reporting is in Canadian dollars and reserves and production figures are reported before royalties [3]. Group 2: Operational Performance - Scott Stauth will discuss the company's top-tier operational performance and the efficiency driving strong results [4]. Group 3: Financial Results - Victor Darel will summarize the financial results, focusing on the company's strong financial position and returns to shareholders [4].

Group 1 - Canadian Natural Resources (CNQ) reported quarterly earnings of $0.81 per share, exceeding the Zacks Consensus Estimate of $0.73 per share, and up from $0.51 per share a year ago, representing an earnings surprise of 10.96% [1] - The company posted revenues of $7.62 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 12.04%, compared to year-ago revenues of $6.12 billion [2] - Over the last four quarters, Canadian Natural Resources has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2 - The stock has underperformed the market, losing about 6.8% since the beginning of the year, compared to the S&P 500's decline of 4.3% [3] - The current consensus EPS estimate for the coming quarter is $0.47 on revenues of $6.07 billion, and for the current fiscal year, it is $2.53 on revenues of $26.47 billion [7] - The Zacks Industry Rank for Oil and Gas - Exploration and Production - Canadian is in the top 38% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Core Insights - Canadian Natural achieved record quarterly production of approximately 1,582,000 BOE/d in Q1/25, with liquids production of approximately 1,174,000 bbl/d and natural gas production of 2,451 MMcf/d [1][12][13] - The company reported adjusted net earnings of $2.4 billion or $1.16 per share, and adjusted funds flow of $4.5 billion or $2.16 per share in Q1/25 [4][13] - Canadian Natural's focus on continuous improvement has led to significant cost efficiencies, allowing a reduction in the 2025 capital budget by $100 million to a total of $6.05 billion [4][6] Production and Operational Performance - Record quarterly Synthetic Crude Oil (SCO) production of approximately 595,000 bbl/d was achieved, reflecting a 34% increase from Q1/24 levels [2][29] - The company maintained industry-leading SCO operating costs of $21.88/bbl (US$15.25/bbl), a decrease of 12% from Q1/24 [2][29] - Thermal in situ production averaged 284,706 bbl/d, a 6% increase from Q1/24, with operating costs averaging $11.23/bbl (US$7.83/bbl), down 20% from Q1/24 [26][29] Financial Highlights - Canadian Natural returned approximately $1.7 billion to shareholders in Q1/25, including $1.2 billion in dividends and $0.5 billion in share repurchases [4][5][14] - The company reported cash flows from operating activities of approximately $4.3 billion in Q1/25, an increase from $2.9 billion in Q1/24 [8][13] - The company maintained liquidity of approximately $5.1 billion as of March 31, 2025, enhancing financial flexibility [6][13] Shareholder Returns - The Board of Directors approved a 4% increase in the quarterly dividend to $0.5875 per common share, marking the 25th consecutive year of dividend increases with a CAGR of 21% [5][21] - Year-to-date returns to shareholders totaled approximately $3.1 billion, including $2.4 billion in dividends and $0.7 billion in share repurchases [14][15] Market and Pricing - The average WTI benchmark price was $71.42/bbl in Q1/25, a decrease of $5.55/bbl compared to Q1/24 [31][32] - SCO pricing averaged $69.07/bbl in Q1/25, representing a $2.35/bbl discount to WTI pricing [31][32] - Natural gas realized price was $3.13/Mcf, reflecting a 52% premium over the AECO benchmark price [34]

Investment Strategy - The investment strategy focuses on constructing portfolios aimed at generating additional income through dividends, targeting a yield on cost of more than 12% over the next 10 years [1] - Emphasis is placed on identifying companies with significant competitive advantages and strong financials to provide attractive Dividend Yield and Dividend Growth [1] - The approach combines high Dividend Yield and Dividend Growth companies to reduce dependence on broader stock market fluctuations [1] Portfolio Diversification - A well-diversified portfolio across various sectors and industries is recommended to minimize portfolio volatility and mitigate risk [1] - Incorporating companies with a low Beta Factor is suggested to further reduce the overall risk level of the investment portfolio [1] - The suggested investment portfolios typically consist of a blend of ETFs and individual companies, emphasizing broad diversification and risk reduction [1] Total Return Focus - The selection process for high dividend yield and dividend growth companies is meticulously curated, prioritizing total return, which includes both capital gains and dividends [1] - This approach ensures that the portfolio is designed to maximize returns while considering the full spectrum of potential income sources [1] - Leveraging expertise in crafting investment portfolios aims to generate extra income through dividends while reducing risk through diversification [1]

Core Viewpoint - Canadian Natural Resources Limited (CNQ) is expected to report first-quarter results on May 8, with earnings estimated at 73 cents per share and revenues of $6.8 billion, reflecting a year-over-year increase in both earnings and revenues [1][3]. Group 1: Previous Quarter Performance - In the last reported quarter, CNQ missed the consensus earnings estimate, reporting adjusted earnings per share of 66 cents against an expectation of 69 cents, while total revenues of $6.8 billion exceeded estimates by 6.3% due to increased product sales [2]. - CNQ has had a mixed earnings surprise history, beating estimates twice in the last four quarters and missing twice, with an average surprise of 0.7% [2]. Group 2: Estimate Revisions and Predictions - The Zacks Consensus Estimate for first-quarter 2025 earnings has remained unchanged over the past week, indicating a 43.14% year-over-year increase, while revenue estimates suggest an 11.21% increase from the previous year [3]. - CNQ's revenues are projected to rise to $6,395 million in the upcoming quarter, up from $6,115 million in the same quarter last year, driven by strong performance in the Exploration & Production and Oil Sands Mining and Upgrading segments [5]. Group 3: Production and Operational Highlights - CNQ's oil sands mining and upgrading assets have shown strong production, averaging about 634,000 bbl/d in January and February 2025, with February marking the highest monthly gross production in its history at approximately 640,000 bbl/d [4]. - The company recently completed a swap with Shell, acquiring a 10% interest in the Scotford Upgrader and Quest Carbon Capture facilities, which enhances its production capacity by 31,000 bbl/d [3]. Group 4: Expense Considerations - CNQ is facing rising expenses across various segments, with North Sea expenses expected to increase to $254.2 million from $140 million year-over-year, and Offshore Africa expenses anticipated to rise to $88.6 million from $70 million [6]. - The Oil Sands Mining and Refining expenses are projected to increase to $2,186.5 million and $254.3 million, respectively, compared to $2,139 million and $241 million in the previous year [6].

Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at notable firms [1] - He is a Professional Engineer and Project Management Professional with degrees in Civil Engineering & Mathematics and a Master's in Engineering focused on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value in investment strategies [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content for investors [2] - The service includes an active chat room for like-minded investors to share insights and strategies [2]

Group 1 - Canadian Natural Resources Limited has amended its Stock Option Plan to require shareholder approval for any amendments to the plan [1] - Shareholders are being asked to approve all unallocated stock options at the upcoming annual and special meeting on May 8, 2025 [2] - The company believes the amendment aligns with the policies of Institutional Shareholder Services and encourages shareholders to vote in favor [2] Group 2 - Canadian Natural is a senior crude oil and natural gas production company with operations in Western Canada, the U.K. North Sea, and Offshore Africa [3]

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Group 1: Oil Market Overview - Crude oil prices have fallen more than 15% in 2025, dropping below $60 a barrel, the lowest since 2021, due to fears of a global recession and OPEC+'s decision to accelerate the end of production cuts [1][4] - Saudi Arabia has significantly reduced its official selling prices, adding further pressure to the oil market [1][5] - OPEC+ announced a crude production increase of 411,000 barrels per day for May, which is three times more than expected, raising concerns about oversupply amid economic uncertainty [4][5] Group 2: Investment Opportunities in Energy Stocks - Large-cap, high-yield energy stocks such as Kinder Morgan, Canadian Natural Resources Limited, and Chevron are seen as stable investments during market uncertainty, offering steady dividends and resilience against market fluctuations [2][6] - These companies, with market capitalizations over $10 billion, are characterized by strong cash flows and durable business models, making them attractive for income-seeking investors [6][8] Group 3: Company Profiles - **Kinder Morgan**: A leading midstream energy infrastructure provider in North America with a market cap of approximately $56 billion and a projected 11.3% year-over-year earnings growth for 2025. It offers a quarterly dividend of 28.75 cents, yielding 4.6% [9][10] - **Canadian Natural Resources**: One of Canada's largest independent energy companies with a market cap of around $58 billion. It has a diversified portfolio and a quarterly dividend of 58.75 Canadian cents, yielding 6% annually, which is above the sector average [11][12] - **Chevron**: A major publicly traded oil and gas company with a market cap exceeding $250 billion. It has a projected 2.9% earnings growth for 2025 and offers a quarterly dividend of $1.71 per share, yielding 4.8% [12][13]

Group 1 - The article promotes iREIT on Alpha as a source for in-depth research on various income alternatives 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 market [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]