Canadian Natural raises production outlook, beats quarterly profit estimates on higher crude prices

Canadian Natural Resources raised its full-year production forecast on Thursday for the second time in a row. It also beat analysts' expectations for the second quarter profit as record production and higher crude prices boosted earnings. Canada's oil-sands producers are benefiting from high oil prices due to supply concerns after months of conflict in Middle East. Years of investments in low cost operations have also helped boost cash flow. The tightening of crude?supplies and the strong demand for synthetic crude have led to a widening in price premiums. Cenovus and Imperial Oil both more than doubled their profits during the second quarter. Canadian Natural's realized prices for exploration and production fluids in the second quarter increased by 51% compared to a year ago, to C$105.11 (US$75.04). Meanwhile, realized synthetic crude oil prices rose by 44% to C$125.78.

The company reported that'synthetic oil traded at an average premium of $8.37 a barrel over U.S. West Texas Intermediate crude in the period. This is up from $0.98 one year ago, as increased refinery demand and Middle East supply disruptions, along with weather-related production effects in Western Canada, tightened crude markets.

Canadian Natural expects its 2026 production to average between 1.637 and 1.682 millions barrels of oil-equivalent per day (boepd), compared to the previous estimate?of 1.615 to 1.665million boepd.

The company stated that it was able to benefit from the results of conventional drilling and assets purchased during the second quarter.

According to LSEG, the Calgary-based company reported an adjusted 'profit' of C$2.19 for the three months ended June 30 compared to analysts' average estimates of C$1.90.

The largest oil and gas producer in the country said that its quarterly production grew from 1.42 to 1.68 millions boepd.

(source: Reuters)