Canadian Natural Resources (CNQ) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly production of 1,677,000 boepd in Q2 2026, up 18% year-over-year, with record liquids production of 1,249,000 bbl/d, 67% of which was high-value SCO, light crude oil, and NGLs.

• Set eight new operational and financial records, including highest-ever quarterly oil sands mining production at 625,000 bbl/d and upgrader utilization of 106%.

• Overcame challenging weather in oil sands mining, exceeding budget and delivering strong results.

• Completed a strategic acquisition in the Peace River area for $761 million, supporting increased production guidance.

• Returned $4.0 billion to shareholders in Q2 2026, including $2.4 billion in direct returns and $1.6 billion in net debt reduction.

Financial highlights

• Adjusted net earnings reached $4.6 billion ($2.20/share), and adjusted funds flow was $6.9 billion ($3.30/share), both quarterly records.

• Generated net earnings of $4.5 billion in Q2 2026.

• Operating costs for oil sands mining and upgrading averaged $22.19/bbl (US$16.03/bbl), down 16% year-over-year.

• Sulphur sales contributed $270 million in net revenue in Q2 2026 and CAD 450 million in the first half of 2026.

• Net debt reduced to $14.5 billion at June 30, 2026.

Outlook and guidance

• Annual production guidance raised for the second time in 2026, now targeting 1,637–1,682 MBOE/d, a 20,000 boepd midpoint increase.

• Operating capital guidance remains at approximately $6 billion before net acquisition cost.

• Growth projects (Jackfish, Pike 2, Albian, Horizon) remain on hold pending completion of definitive government agreements.

• Targeting net debt level of $13 billion, after which 100% of free cash flow will be returned to shareholders.