Canadian Natural exceeds profit expectations on higher oil production

Canadian Natural Resources, the nation's largest oil-and-gas?producer exceeded expectations for its first quarter profit on Thursday. This was fueled by higher production of?its oil?sands segment?as well as conventional operations.

Canada's oil-sands producers continue benefiting from increased operational efficiency and stable production despite concerns about pipeline constraints and volatile commodities prices.

Canadian Natural said that its output increased to 1.64 million barrels of oil-equivalent per day during the three months ended March 31 from 1.58million boepd one year ago.

The company benefited from the Jackfish thermal oil-sands project. Production averaged a record 134 396 barrels a day, surpassing its maximum production capacity.

The company also reported a record quarterly North American gas production of 2,67 billion cubic feet daily.

The Calgary-based company reported that April production from its oil sands asset rose to approximately 630,000 barrels a day.

Natural gas prices rose by 5.7%, to C$3.32 for a thousand cubic feet. Total realized prices for exploration & production liquids fell 4.8%, to C$76.02 a barrel.

Peers Cenovus Energy announced strong earnings for the quarter, driven by record upstream production.

Canadian Natural reported a?profit adjusted of C$1.17 ($0.8587) for the three-month period ended March 31, according to data compiled by LSEG. According to LSEG data, analysts?on average? expected a?profit per?share of C$1.01. (1 Canadian dollar = 1.3626 US dollars) (Reporting and editing by Varun Shay, Bengaluru. Editing by Leroy Leo Joyjeet Das Pooja Deai

(source: Reuters)