Canadian Natural Resources (CNQ) Q4 2024 earnings summary

Executive summary

• Achieved record annual average production of 1.36 million BOEs/day in 2024, with over 1 million barrels/day of liquids and record quarterly production of 1.47 million BOEs/day in Q4/24.

• Oil Sands Mining and Upgrading assets delivered record annual and quarterly SCO production, with 99% annual utilization and industry-leading operating costs.

• Completed major acquisitions, consolidating 100% interest in Albian Mines and acquiring Chevron's Duvernay assets, adding significant production capacity.

• Demonstrated strong operational execution, bringing multiple thermal and heavy oil pads online ahead of schedule and reducing operating costs across segments.

• Maintained a culture of continuous improvement, driving efficiency, reliability, and long-term sustainability.

Financial highlights

• Annual adjusted funds flow reached CAD 14.9 billion, with Q4 at CAD 4.2 billion.

• 2024 net earnings were $6.1 billion; adjusted net earnings from operations were $7.4 billion.

• Returned $7.1 billion to shareholders in 2024 through dividends and share repurchases, with a 4% dividend increase approved for 2025.

• Capital program was CAD 100 million under budget at CAD 5.3 billion, generating significant free cash flow.

• Debt to EBITDA at 1.1x and debt to book capital at 32% at year-end; liquidity of CAD 4.7 billion.

Outlook and guidance

• Focus on leveraging expanded asset base for organic growth and continued shareholder returns.

• 2025 capital budget set at $6.0 billion, with $787 million for abandonment, $90 million for carbon capture, and $45 million for a one-time office move.

• Corporate production guidance will increase after closing the AOSP swap, adding 31,000 bbl/d of bitumen.

• Oil Sands Mining and Upgrading production capacity targeted at 592,000 bbl/d post-swap and project completions.

• Ongoing evaluation of solvent technology for thermal operations, with potential expansion to other assets by 2027-2028.