Canadian Natural Resources Ltd. press release

Canadian Natural Resources Limited Announces 2025 Third Quarter Results

2025-11-06

TSX - Toronto Stock Exchange · Oil · Bitumen · Natural Gas Liquids · Natural Gas · Canada

Calgary, Alberta--(Newsfile Corp. - November 6, 2025) - Canadian Natural's (TSX: CNQ) (NYSE: CNQ) President, Scott Stauth, commented on the Company's third quarter results, "Operations were strong in Q3/25 as we achieved record quarterly production volumes totaling approximately 1,620 MBOE/d, including records for both liquids and natural gas at 1,176 Mbbl/d and 2,668 MMcf/d respectively. We increased total corporate production by 19% or approximately 257,000 BOE/d from Q3/24 levels, reflecting both accretive acquisitions and organic growth achieved across our asset base over the last 12 months.

Our world class Oil Sands Mining and Upgrading assets continue to achieve strong operational performance as Q3/25 production averaged approximately 581,000 bbl/d of SCO, with strong utilization of 104% and industry leading operating costs of approximately $21 per barrel.

Subsequent to quarter end, we closed the AOSP swap with Shell Canada Limited and affiliates ("Shell") on November 1, 2025, with an effective date of March 1, 2025. Canadian Natural now owns and operates 100% of the Albian oil sands mines and associated reserves and retains a non-operated 80% interest in the Scotford Upgrader and Quest facilities. This generates additional cash flow and adds approximately 31,000 bbl/d of annual, zero decline bitumen production to our portfolio, driving long-term value creation for our shareholders. This swap also enhances our ability to integrate equipment and services across our mining operations, unlocking additional value through continuous improvement initiatives.

Additionally, we increased our annual 2025 corporate production guidance range to 1,560 MBOE/d to 1,580 MBOE/d, while our 2025 operating capital forecast remains unchanged at approximately $5.9 billion while executing additional activity on our increased asset base size."

Canadian Natural's Chief Financial Officer, Victor Darel, added, "Our business model is robust and sustainable, underpinned by a strong balance sheet that provides flexibility through significant liquidity, totaling approximately $4.3 billion as at September 30, 2025. We closed accretive and opportunistic acquisitions in the quarter and remained at similar net debt levels when compared to Q2/25. These are excellent results, highlighting the free cash flow generating capability of our top tier asset base.

In Q3/25, we generated adjusted net earnings of $1.8 billion or $0.86 per share, and adjusted funds flow of $3.9 billion or $1.88 per share. We returned approximately $1.5 billion to our shareholders in the quarter, including $1.2 billion in dividends and $0.3 billion in share repurchases as we continue to execute on our free cash flow allocation policy."

THIRD QUARTER HIGHLIGHTS

Generated net earnings of approximately $0.6 billion and adjusted net earnings from operations of approximately $1.8 billion.

Generated adjusted funds flow of approximately $3.9 billion.

Returns to shareholders totaled approximately $1.5 billion, comprised of $1.2 billion in dividends and $0.3 billion in share repurchases.

25 consecutive years of dividend growth with a CAGR of 21% over that time.

Subsequent to quarter end, declared a quarterly cash dividend on its common shares of $0.5875 per common share.

Record quarterly corporate production of 1,620,261 BOE/d.

Significant total BOE production growth of approximately 257,000 BOE/d or 19% from Q3/24 levels reflects accretive acquisitions and organic growth achieved over the last 12 months.

Record quarterly liquids production of 1,175,604 bbl/d was achieved, an increase of approximately 154,000 bbl/d or 15% from Q3/24 levels.

Oil Sands Mining and Upgrading production was strong, averaging 581,136 bbl/d of SCO with upgrader utilization of 104% and industry leading operating costs of $21.29/bbl (US$15.46/bbl) in Q3/25.

Canadian Natural continues to maintain a strong balance sheet and financial flexibility, with approximately $4.3 billion in liquidity(1)as at September 30, 2025. During Q3/25, the Company:

Repaid US$600 million of US dollar debt securities due in July 2025.

Received a new long-term investment grade credit rating of BBB+ from Fitch Ratings.

Subsequent to quarter end, on November 1, 2025, Canadian Natural closed the AOSP swap with Shell. Canadian Natural now owns and operates 100% of the Albian oil sands mines and associated reserves and retains a non-operated 80% interest in the Scotford Upgrader and Quest facilities.

The transaction adds approximately 31,000 bbl/d of annual, zero decline bitumen production, providing additional cash flow and enabling more effective and efficient operations between the Horizon and Albian mines.

The swap did not include any cash consideration, with the exception of regular closing adjustments to reflect the effective date of March 1, 2025.

Following the close, Canadian Natural updated its 2025 capital and production guidance as follows:

2025 production guidance range of 1,560 MBOE/d to 1,580 MBOE/d.

2025 operating capital forecast remains unchanged at approximately $5.9 billion, following the $100 million reduction previously announced in May 2025.

As a result of strong operational execution and capital discipline, additional activity on a larger asset base, following opportunistic acquisitions in the year, has been executed with no incremental capital required.

(1) Non-GAAP Financial Measure. Refer to the "Non-GAAP and Other Financial Measures" section of the Company's MD&A for the three and nine months ended September 30, 2025 dated November 5, 2025 ("MD&A").

| | | Three Months Ended | | | Nine Months Ended | | | | | | | | | | | | | ($ millions, except per common share amounts) | | Sep 30 2025 | | | Jun 30 2025 | | | Sep 30 2024 | | | Sep 30 2025 | | | Sep 30 2024 | | | | Net earnings | $ | 600 | | $ | 2,459 | | $ | 2,266 | | $ | 5,517 | | $ | 4,968 | | | | Per common share | - basic | $ | 0.29 | | $ | 1.17 | | $ | 1.07 | | $ | 2.64 | | $ | 2.33 | | | | - diluted | $ | 0.29 | | $ | 1.17 | | $ | 1.06 | | $ | 2.63 | | $ | 2.31 | | | Adjusted net earnings from operations(1) | $ | 1,801 | | $ | 1,496 | | $ | 2,071 | | $ | 5,733 | | $ | 5,437 | | | | Per common share | - basic(2) | $ | 0.86 | | $ | 0.71 | | $ | 0.98 | | $ | 2.74 | | $ | 2.55 | | | | - diluted(2) | $ | 0.86 | | $ | 0.71 | | $ | 0.97 | | $ | 2.73 | | $ | 2.53 | | | Cash flows from operating activities | $ | 3,940 | | $ | 3,114 | | $ | 3,002 | | $ | 11,338 | | $ | 9,954 | | | | Adjusted funds flow(1) | $ | 3,920 | | $ | 3,262 | | $ | 3,921 | | $ | 11,712 | | $ | 10,673 | | | | Per common share | - basic(2) | $ | 1.88 | | $ | 1.56 | | $ | 1.85 | | $ | 5.59 | | $ | 5.01 | | | | - diluted(2) | $ | 1.87 | | $ | 1.55 | | $ | 1.84 | | $ | 5.57 | | $ | 4.97 | | | Cash flows used in investing activities | $ | 2,234 | | $ | 1,941 | | $ | 1,274 | | $ | 5,487 | | $ | 3,681 | | | | Net capital expenditures(3) | $ | 2,124 | | $ | 1,915 | | $ | 1,349 | | $ | 5,342 | | $ | 4,083 | | | | Net capital expenditures(3), excluding net acquisition costs | $ | 1,318 | | $ | 1,691 | | $ | 1,261 | | $ | 4,312 | | $ | 3,996 | | | | Abandonment expenditures | $ | 189 | | $ | 193 | | $ | 204 | | $ | 570 | | $ | 495 | | | | Daily production, before royalties | | | | | | | | | | | | | | | | | | Natural gas (MMcf/d) | | 2,668 | | | 2,407 | | | 2,049 | | | 2,510 | | | 2,102 | | | | Crude oil and NGLs (bbl/d) | | 1,175,604 | | | 1,019,149 | | | 1,021,572 | | | 1,122,859 | | | 977,265 | | | | Equivalent production (BOE/d)(4) | | 1,620,261 | | | 1,420,358 | | | 1,363,086 | | | 1,541,127 | | | 1,327,593 | | | | (1) Non-GAAP Financial Measure. Refer to the "Non-GAAP and Other Financial Measures" section of the Company's MD&A. (2) Non-GAAP Ratio. Refer to the "Non-GAAP and Other Financial Measures" section of the Company's MD&A. (3) Non-GAAP Financial Measure. The composition of this measure was updated in the fourth quarter of 2024. Refer to the "Non-GAAP and Other Financial Measures" section of the Company's MD&A. (4) A barrel of oil equivalent ("BOE") is derived by converting six thousand cubic feet ("Mcf") of natural gas to one barrel ("bbl") of crude oil (6 Mcf:1 bbl). This conversion may be misleading, particularly if used in isolation, or to compare the value ratio using current crude oil and natural gas prices since the 6 Mcf:1 bbl ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. | | | | | | | | | | | | | | | | |

Net earnings of $0.6 billion in Q3/25 reflected a non-cash recoverability charge of approximately $0.7 billion related to an increase in the estimate for future abandonment costs for the Ninian field and T-Block assets in the North Sea. Adjusted net earnings from operations, excluding the impact of the recoverability charge and unrealized foreign exchange and risk management activities, was strong at $1.8 billion in the quarter.

RETURNS TO SHAREHOLDERS

Canadian Natural has a strong history of 25 consecutive years of growing its sustainable dividend with a CAGR of 21% over that time, demonstrating the sustainability of our business model, our strong balance sheet and the strength of our diverse, long life low decline reserves and asset base.

Returns to shareholders in Q3/25 were strong, totaling approximately $1.5 billion, comprised of $1.2 billion of dividends and $0.3 billion through the repurchase and cancellation of approximately 7.2 million common shares at a weighted average price of $43.12 per share.

Year to date, up to and including November 5, 2025, the Company has returned a total of approximately $6.2 billion directly to shareholders through $4.9 billion in dividends and $1.3 billion through the repurchase and cancellation of approximately 29.6 million common shares at a weighted average price of $42.92 per share.

Subsequent to quarter end, Canadian Natural declared a quarterly cash dividend on its common shares of $0.5875 per common share. The quarterly dividend will be payable on January 6, 2026 to shareholders of record at the close of business on December 12, 2025.

CORPORATE UPDATE

Canadian Natural is pleased to announce the appointment of Ms. Shelley A.M. Brown, CM, FCPA, FCA, ICD.D, O.C., to the Board of Directors of the Company and to the Audit Committee effective November 4, 2025. Ms. Brown is a Chartered Accountant who retired as a Senior Audit Partner with Deloitte after more than 35 years in public accounting. Ms. Brown has extensive experience working with public companies in the mining and manufacturing sectors and has over 30 years of experience working with both non-profit and public company boards including in the role of audit committee chair. Ms. Brown holds a Bachelor of Commerce from the University of Saskatchewan and is a Fellow of the Institutes of Chartered Accountants of Alberta, Saskatchewan, British Columbia and Ontario.

OPERATIONS REVIEW

North America Oil Sands Mining and Upgrading

| | | Three Months Ended | | | Nine Months Ended | | | | | | | | | | | | | | Sep 30 2025 | | | Jun 30 2025 | | | Sep 30 2024 | | | Sep 30 2025 | | | Sep 30 2024 | | | Synthetic crude oil production (bbl/d) (1)(2) | | 581,136 | | | 463,808 | | | 497,656 | | | 546,635 | | | 451,298 | | | (1) SCO production before royalties and excludes production volumes consumed internally as diesel. (2) Consists of heavy and light synthetic crude oil products. | | | | | | | | | | | | | | | |

Oil Sands Mining and Upgrading production averaged 581,136 bbl/d of SCO in Q3/25, an increase of 17% from Q3/24 levels, reflecting the additional working interest in AOSP acquired in December 2024 combined with effective and efficient operations.

Oil Sands Mining and Upgrading achieved strong upgrader utilization in Q3/25 of 104%.

Oil Sands Mining and Upgrading operating costs are industry leading, averaging $21.29/bbl (US$15.46/bbl) of SCO in Q3/25.

Subsequent to quarter end, Canadian Natural closed the AOSP swap with Shell on November 1, 2025, with an effective date of March 1, 2025. Canadian Natural now owns and operates 100% of the Albian oil sands mines and associated reserves and retains a non-operated 80% interest in the Scotford Upgrader and Quest Carbon Capture and Storage facilities.

At Horizon, the Company is progressing its Naphtha Recovery Unit Tailings Treatment ("NRUTT") project which targets incremental production of approximately 6,300 bbl/d of SCO, following mechanical completion in Q3/27.

North America Exploration and Production

| Thermal In Situ Oil Sands | | | | | | | | | | | | | | | | | | | Three Months Ended | | | Nine Months Ended | | | | | | | | | | | | | | Sep 30 2025 | | | Jun 30 2025 | | | Sep 30 2024 | | | Sep 30 2025 | | | Sep 30 2024 | | | Bitumen production (bbl/d) | | 274,752 | | | 274,789 | | | 271,551 | | | 278,046 | | | 269,258 | | | Net bitumen wells drilled | | 11 | | | 24 | | | 25 | | | 53 | | | 78 | | | Net successful bitumen wells drilled | | 11 | | | 24 | | | 25 | | | 53 | | | 78 | | | Success rate | | 100% | | | 100 % | | | 100 % | | | 100% | | | 100 % | |

Thermal in situ production averaged 274,752 bbl/d in Q3/25, comparable to Q3/24 levels.

Thermal in situ operating costs remain strong, averaging $10.35/bbl (US$7.52/bbl) in Q3/25, a decrease of 2% from Q3/24 levels of $10.52/bbl.

Canadian Natural has significant thermal in situ facility processing capacity of 340,000 bbl/d, resulting in approximately 70,000 bbl/d of annual available capacity. The Company has decades of strong capital efficient drill to fill growth opportunities on its long life low decline thermal in situ assets, which we continue to develop in a disciplined manner to deliver safe and reliable thermal in situ production.

At Primrose, the Company began drilling a Cyclic Steam Stimulation ("CSS") pad in Q3/25 with production targeted to come on in the second half of 2026.

At Jackfish, the Company brought a Steam Assisted Gravity Drainage ("SAGD") pad on production in July 2025 as planned.

At Kirby, the Company brought a five well-pair SAGD pad on production in late October 2025 as planned.

At Pike, the Company tied the two recently drilled SAGD pads into the Jackfish facilities. These two SAGD pads are targeted to keep the Jackfish facilities at full capacity with the first pad targeted to come on production in January 2026 and the second pad targeted to come on production in Q2/26.

Canadian Natural has been piloting solvent enhanced oil recovery technology on certain thermal in situ assets with an objective to increase bitumen production while reducing the Steam to Oil Ratio ("SOR") and optimizing solvent recovery. This technology has the potential for application throughout the Company's extensive thermal in situ asset base.

At the commercial scale solvent SAGD pad at Kirby North, current SOR reductions and solvent recoveries are meeting expectations following recent workovers and optimizations.

At Primrose, the Company is continuing to operate its solvent enhanced oil recovery pilot in the steam flood area to optimize solvent efficiency and to further evaluate this commercial development opportunity.

| Crude oil and NGLs - excluding Thermal In Situ Oil Sands | | | | | | | | | | | | | | | | | | | Three Months Ended | | | Nine Months Ended | | | | | | | | | | | | | | Sep 30 2025 | | | Jun 30 2025 | | | Sep 30 2024 | | | Sep 30 2025 | | | Sep 30 2024 | | | Crude oil and NGLs production (bbl/d) | | 309,873 | | | 271,022 | | | 228,221 | | | 285,931 | | | 234,537 | | | Net crude oil wells drilled | | 78 | | | 57 | | | 59 | | | 192 | | | 130 | | | Net successful crude oil wells drilled | | 78 | | | 57 | | | 58 | | | 191 | | | 129 | | | Success rate | | 100% | | | 100 % | | | 98 % | | | 99% | | | 99 % | |

North America E&P liquids production, excluding thermal in situ, averaged 309,873 bbl/d in Q3/25, an increase of 36% or approximately 82,000 bbl/d from Q3/24 levels, reflecting opportunistic acquisitions and strong organic growth from heavy crude oil multilaterals, liquids-rich natural gas and light crude oil, partially offset by natural field declines.

Primary heavy crude oil production averaged 87,705 bbl/d in Q3/25, an increase of 14% from Q3/24 levels, reflecting strong drilling results from the Company's multilateral wells, partially offset by natural field declines.

Canadian Natural's highly successful multilateral drilling program continues to unlock opportunity on our approximately 3 million net acres of high quality land throughout our primary heavy crude oil assets.

Operating costs in the Company's primary heavy crude oil operations averaged $16.46/bbl (US$11.95/‍bbl) in Q3/25, a decrease of 12% from Q3/24 levels, primarily as a result of higher production volumes and the increasing proportion of lower operating cost multilateral production.

Pelican Lake production averaged 42,070 bbl/d in Q3/25 a decrease of 7% from Q3/24 levels, reflecting planned maintenance in Q3/25 and the low natural field declines from this long life low decline asset.

Operating costs at Pelican Lake averaged $9.00/bbl (US$6.54/bbl) in Q3/25, an increase of 3% Q3/24 levels.

North America light crude oil and NGLs production averaged 180,098 bbl/d in Q3/25, an increase of 69% or approximately 74,000 bbl/d from Q3/24 levels, primarily reflecting production volumes from the acquisition of liquids-‍rich Duvernay assets in Q4/24, light crude oil Palliser Block assets in Q2/25 and the liquids-rich Montney assets in the Grande Prairie area in Q3/25.

Operating costs in the Company's North America light crude oil and NGLs operations averaged $12.91/‍bbl (US$9.38/bbl) in Q3/25, a decrease of 6% from Q3/24 levels of $13.73/bbl, primarily reflecting higher production volumes.

As previously announced, on July 2, 2025, Canadian Natural closed an acquisition of liquids-rich Montney assets located in the Grande Prairie area for approximately $750 million, which included production of approximately 32,000 BOE/d, including 12,500 bbl/d of NGLs.

| North America Natural Gas | | | | | | | | | | | | | | | | | | | Three Months Ended | | | Nine Months Ended | | | | | | | | | | | | | | Sep 30 2025 | | | Jun 30 2025 | | | Sep 30 2024 | | | Sep 30 2025 | | | Sep 30 2024 | | | Natural gas production (MMcf/d) | | 2,658 | | | 2,398 | | | 2,039 | | | 2,498 | | | 2,091 | | | Net natural gas wells drilled | | 17 | | | 22 | | | 24 | | | 58 | | | 65 | | | Net successful natural gas wells drilled | | 17 | | | 22 | | | 24 | | | 58 | | | 64 | | | Success rate | | 100% | | | 100 % | | | 100 % | | | 100% | | | 98 % | |

North America natural gas production averaged 2,658 MMcf/d in Q3/25, an increase of 30% from Q3/24 levels, primarily reflecting opportunistic acquisitions and strong drilling results in the Company's liquids-rich natural gas assets, partially offset by natural field declines.

North America natural gas operating costs averaged $1.14/Mcf in Q3/25, a decrease of 7% from Q3/24 levels of $1.23/Mcf, primarily reflecting higher production volumes and cost efficiencies.

International Exploration and Production

| | | Three Months Ended | | | Nine Months Ended | | | | | | | | | | | | | | Sep 30 2025 | | | Jun 30 2025 | | | Sep 30 2024 | | | Sep 30 2025 | | | Sep 30 2024 | | | Crude oil production (bbl/d) | | 9,843 | | | 9,530 | | | 24,144 | | | 12,247 | | | 24,293 | | | Natural gas production (MMcf/d) | | 10 | | | 9 | | | 10 | | | 12 | | | 11 | |

International E&P crude oil production volumes averaged 9,843 bbl/d in Q3/25, a decrease of 59% compared to Q3/24 levels. The decrease reflects temporary suspension of production at Baobab in Offshore Africa due to the planned refurbishment on its floating production storage and offloading ("FPSO") vessel, both planned and unplanned maintenance and planned decommissioning activities in the North Sea and natural field declines.