Canadian Natural Q4 Earnings Beat Estimates, Expenses Decrease Y/Y

Core Insights - Canadian Natural Resources Limited (CNQ) reported fourth-quarter 2025 adjusted earnings per share of 59 cents, exceeding the Zacks Consensus Estimate of 53 cents, but down from 66 cents in the same quarter last year due to lower realized oil and natural gas liquid prices [1][11] Financial Performance - Total revenues for the fourth quarter reached $6.9 billion, an increase from $6.8 billion in the prior-year period, driven by higher production volumes, and surpassed the Zacks Consensus Estimate of $6.6 billion [2] - Net earnings for the quarter were approximately C$5.3 billion, with adjusted net earnings from operations around C$1.7 billion. Cash flows from operating activities totaled approximately C$3.8 billion [5] - Total expenses in the quarter were C$2.8 billion, significantly lower than C$7.9 billion recorded in the previous year, primarily due to gains on acquisitions and dispositions [14] Production and Prices - CNQ reported a quarterly production of 1,658,681 barrels of oil equivalent per day (Boe/d), a 13% increase from the prior-year quarter, exceeding estimates [7] - Oil and NGL output increased to 1,215,364 barrels per day (Bbl/d) from 1,090,002 Bbl/d a year ago, while natural gas volumes totaled 2,660 million cubic feet per day (MMcf/d), up 16.5% from the previous year [8][12] - The realized natural gas price increased by 43% to C$2.89 per thousand cubic feet, while the realized oil and NGL price decreased by 14.4% to C$64.42 per barrel [12] Shareholder Returns - The board approved a 6.4% increase in the quarterly cash dividend to 62.5 Canadian cents per share, payable on April 7, 2026 [3] - In the fourth quarter, CNQ returned approximately C$2.7 billion to shareholders, including C$1.2 billion in dividends and C$1.2 billion through net debt reduction [4] Capital Expenditure and Guidance - Capital expenditure for the quarter was C$1.2 billion, down from C$10.3 billion a year ago, reflecting a focus on disciplined capital spending [14] - For 2026, CNQ updated its guidance, reducing forecasted operating capital expenditures by approximately C$310 million to about C$5.99 billion, while increasing production guidance to a range of 1,615-1,665 MBOE/d [16][17]