CNQ · Canadian Natural Resources Limited

Canadian Natural Resources delivered solid Q1 2026 results amid robust commodity prices and operational efficiency, generating $1.3 billion GAAP net earnings and $2.4 billion adjusted net earnings, down slightly from prior year due to impacts from share-based compensation, unrealized LNG and FX losses. Adjusted funds flow reached $4.4 billion, supporting $1.5 billion in direct shareholder returns including $1.2 billion dividends and $0.3 billion buybacks, with YTD returns totaling $3.2 billion through May 6. Production hit a quarterly average of 1,643,000 BOE/d, up 4% YoY, driven by record North American E&P at 773,000 BOE/d (329,000 bbl/d liquids, 2,668 MMcf/d gas) and strong Oil Sands Mining SCO output of 588,000 bbl/d at leading $23.73/bbl costs. Jackfish thermal in situ achieved record 134,000 bbl/d, exceeding nameplate capacity via Pike 1 pads with low 1.8x SOR. Net debt fell below $16 billion, accelerating toward $13 billion target to unlock 100% free cash flow returns. Management highlighted 26th consecutive year of dividend growth to $2.50 annualized, 20% CAGR, underscoring sustainable model. April production strength at 630,000 bbl/d SCO with 106% upgrader utilization and $309 million buybacks signal confidence. Growth plans progress with short-term drill-bit opportunities, medium-term FEED on Jackfish/Pike expansions, while long-term mining projects paused pending regulatory/fiscal clarity.