Canadian Natural Resources anticipates higher production and lower expenditure in 2026

Canadian Natural Resources forecast on Friday a modest increase in production by 2026, while reducing total capital expenditures from the levels of this year. This signals a continued focus and disciplined growth.

Canada's oil producers have fared better than their global counterparts during the oil slump, thanks to years of investment. They are now among the lowest-cost producers in North America.

Canadian Natural, for example, has leveraged assets with a long life and low decline rate and capital strategies that are disciplined to maintain growth and high shareholder returns in weaker market conditions.

The company, which is one of Canada's biggest oil and gas producers said that it expects its 2026 production to increase by about 3% compared to 2025, supported in part by stable performances across oil sands assets, liquids and natural gas assets.

Canadian Natural anticipates that production in 2026 will range between 1,59 and 1,65 million barrels equivalent per day (boepd).

Canadian Natural stated that the increase in revenue will be driven primarily by gains made across all of its assets including oil sands and thermal in situ mining projects.

The company expects future growth of up to 745,000 bpd, including 210,000 bpd for thermal assets and 245,000 bpd for oil sands.

The producer has set a capital budget of C$6.43 (US$4.58 billion) for the next year. This is down from C$6.68 in 2025. It reflects tighter spending to target steady resource growth.

The Calgary-based company reported earnings on Thursday that were just above analysts' expectations, thanks to record oil and natural gas production, which helped offset the decline in crude price.

(source: Reuters)