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]