Canadian Natural Resources Limited Announces Normal Course Issuer Bid

Core Viewpoint - Canadian Natural Resources Limited has announced its intention to initiate a Normal Course Issuer Bid (NCIB) to repurchase shares, with the Toronto Stock Exchange accepting the notice for this action [1][2]. Group 1: NCIB Details - The NCIB will allow Canadian Natural to purchase up to 178,738,237 shares, representing 10% of the public float as of February 28, 2025, over a 12-month period from March 13, 2025, to March 12, 2026 [2]. - The company will limit its daily purchases to 2,835,635 common shares, which is 25% of the average daily trading volume over the previous six months [2]. - Shares will be acquired at market price at the time of purchase, with the actual number and timing of purchases determined by the company [2]. Group 2: Free Cash Flow Management - Canadian Natural has established a free cash flow allocation policy, directing 60% of free cash flow to shareholder returns and 40% to the balance sheet until net debt reaches $15 billion [3]. - When net debt is between$12 billion and $15 billion, the allocation shifts to 75$12 billion, 100% will go to shareholder returns [3]. - Free cash flow is defined as adjusted funds flow minus dividends, net capital expenditures, and abandonment expenditures, and is considered a key measure for funding growth and shareholder returns [3]. Group 3: Automatic Share Purchase Plan (ASPP) - In conjunction with the NCIB, Canadian Natural plans to implement an Automatic Share Purchase Plan (ASPP) to facilitate share repurchases during regulatory black-out periods [4]. - The ASPP will be pre-cleared by the TSX and is expected to commence on March 13, 2025, terminating on March 6, 2026 [4]. - Purchases under the ASPP will be made at the discretion of a designated broker based on parameters set by Canadian Natural, and will count towards the total shares repurchased under the NCIB [4]. Group 4: Previous Share Buyback Program - As of February 28, 2025, Canadian Natural had repurchased 52,380,000 common shares at a weighted average price of $48.35 under its previous NCIB, which authorized the purchase of up to 180,462,858 shares [5].