Canadian Natural Resources exceeds profit expectations on higher production

Canadian Natural Resources, an oil and gas producer, posted a profit that was higher than expected for the fourth quarter. The company's increased output offset lower crude prices.

Canadian Natural Resources and other oil sands producers in Canada have survived a 'global downturn', despite the uncertainty caused by U.S. Tariffs, as well as a rise in OPEC+ production, due to their years of investment. Their costs are among the lowest found anywhere in North America.

The largest oil and natural gas producer in the country said that its production jumped by 12.8% compared to a year ago, reaching a record of 1.66 million barrels equivalents per day (boepd).

Canadian Natural has also increased its production forecast for 2026?from 1.59-1.65million boepd to 1.62-1.67million boepd.

According to data compiled and analyzed by LSEG, the Calgary, Alberta based company reported an adjusted profit per share of 82 'Canadian cents' for the three-month period ended December '31. This compares with analysts average estimate of 69 Canadiancents.

The company's U.S. listed shares rose 2.2% during premarket trading.

CRUDE PRICE UNDER PRESSURE

The quarter was characterized by a weaker oil market, with crude prices under pressure due to concerns about oversupply, a slowing of?demand, and a rise in stock levels. Venezuela's increasing likelihood to add more barrels into the global supply has only exacerbated those fears.

Benchmark Brent crude averaged about $63.13 a barrel between October and December, down by?more?than 9%.

Mark Carney said, however, that Canadian crude oil was low-risk, and would remain?competitive? even if Venezuelan output increases after the U.S. Capture of President Nicolas Maduro.

Canadian Natural reported that the average realized price of exploration and production liquids was C$64.42 a barrel in the third quarter. This compares to C$75.22 a barrel compared to a year ago.

The capital expenditure plan for the current year was also increased by C$455 to C$6.88billion. ($1 = 1.3645 Canadian dollars) (Reporting by Sumit Saha in Bengaluru; Editing by Shilpi Majumdar)

(source: Reuters)