Published
# Canadian Natural Resources (CNQ) - Recent Events Canadian Natural reports in Canadian dollars. Every money amount below is converted to US dollars from the company's Canadian-dollar figures, using the average exchange rate for the period a flow covers and the closing rate on the date for a balance or announced amount. Percentages the company gives are as it states them. Production volumes are in barrels and barrels of oil equivalent (BOE) as reported. ## Filings that contain financial statements Canadian Natural files Form 6-K for its interim results. These 6-Ks carry the full financial statements: - **Second quarter 2026 (three and six months ended June 30, 2026):** Form 6-K filed August 6, 2026, accession 0001017413-26-000043. It furnishes the interim consolidated financial statements (balance sheet, statements of earnings, comprehensive income, changes in equity and cash flows, with notes, including the Peace River acquisition note), the management's discussion and analysis, and the earnings press release. - **First quarter 2026 (three months ended March 31, 2026):** Form 6-K filed May 7, 2026, accession 0001017413-26-000024 (interim financial statements, MD&A and press release). - **Fourth quarter and year ended December 31, 2025:** Form 6-K filed March 6, 2026, accession 0001017413-26-000006 (annual financial statements, MD&A and press release). - **Third quarter 2025 (three and nine months ended September 30, 2025):** Form 6-K filed November 6, 2025, accession 0001017413-25-000056 (interim financial statements, MD&A and press release). The 6-Ks filed August 6, 2026 under accessions 0001017413-26-000045, and the other dividend notices, carry no financial statements. ## Second quarter 2026 results and guidance (August 6, 2026; accession 0001017413-26-000043) - **Earnings:** Second quarter net earnings were $3.25 billion (C$4,503 million), up 83.1% in US dollar terms from $1.78 billion in the second quarter of 2025. Adjusted net earnings from operations were a record $3.30 billion, or $1.59 per share. Adjusted funds flow was a record $4.96 billion, or $2.38 per share. Net earnings in the first quarter of 2026 were $982.92 million. - **Production:** Record quarterly production of about 1,677,000 BOE/d, up 256,000 BOE/d or 18% from the second quarter of 2025; liquids production was a record of about 1,249,000 bbl/d. Oil Sands Mining and Upgrading synthetic crude oil production was a record 624,754 bbl/d with 106% upgrader utilization, and Jackfish thermal production was a record 136,381 bbl/d against 120,000 bbl/d nameplate capacity. - **Guidance raised:** For the second time in 2026, full-year production guidance was raised to 1,637-1,682 MBOE/d from 1,615-1,665 MBOE/d, a 20 MBOE/d increase at the midpoint, citing the Peace River acquisition and conventional drilling results. Operating capital is unchanged at about $4.22 billion (C$5,990 million). Total 2026 capital including carbon capture and net acquisitions rises to $5.38 billion from $4.84 billion (C$7,641 million from C$6,880 million); net acquisitions in the forecast rise to $1.07 billion (C$1,526 million), all converted at the June 30, 2026 rate. - **Shareholder returns:** About $2.89 billion returned in the quarter: $1.73 billion directly ($939.25 million of dividends and $794.75 million of share repurchases) and about $1.2 billion through net debt reduction. Net debt was $10.23 billion (C$14,526 million) at June 30, 2026. From January 1 through August 5, 2026 the company returned about $4.12 billion directly: $2.75 billion of dividends and $1.37 billion of repurchases, retiring about 30.7 million shares at a weighted average of $44.46. - **Sulphur:** Net revenue from sulphur sales was about $195.08 million (C$270 million) in the quarter and $326.57 million (C$450 million) for the first half. - **New US pipeline capacity (signed Q2 2026, conditional):** The company signed 20-year crude oil transportation agreements for 150,000-165,000 bbl/d of new capacity to US markets, with service expected to begin in the fourth quarter of 2028. They are conditional on the project proponents' final investment decision and regulatory approvals and are not yet recognized as commitments; if all conditions are met they would add about C$500-550 million ($352-$387 million at the June 30, 2026 rate) of annual transportation payments. Accession 0001017413-26-000043. - **Growth projects on hold:** The company described a trilateral memorandum of understanding between the Oil Sands Alliance and the Alberta and federal governments as a positive first step, with definitive agreements targeted for November 2026. Until then the Jackfish expansion (30,000 bbl/d), Pike 2 (70,000 bbl/d), the Jackpine Mine expansion (150,000 bbl/d) and the Horizon in-pit extraction plant (90,000 bbl/d) remain on hold. - **Turnaround:** A planned 35-day Horizon turnaround begins September 8, 2026, expected to reduce 2026 annual average production by about 29,000 bbl/d, already included in guidance. - **Board:** Dr. G.E. Isaac, President and Chief Operating Officer of Cameco, joined the Board after his election at the May 7, 2026 annual meeting. ## Acquisitions (closed) - **Peace River, Alberta, June 2026 - closed.** The interim financial statements state the company "acquired" producing and non-producing crude oil, NGLs and natural gas assets in June 2026 for net cash consideration of $546.21 million (C$756 million), subject to final closing adjustments, accounted for as a business combination, with asset retirement obligations of about $22.40 million (C$31 million) assumed. The earnings press release describes the same second quarter purchase as about C$761 million net of closing adjustments, which is the figure the financial statements give for the first quarter purchase rather than the June one. Accession 0001017413-26-000043. - **Peace River, first quarter 2026 - closed.** An earlier acquisition of crude oil, NGLs and natural gas assets in the same area for net cash consideration of $554.90 million (C$761 million), with about $71.67 million of asset retirement obligations assumed. The company said on March 5, 2026 that this "strategic acquisition early in 2026" lowered its 2026 operating capital forecast by about $226.39 million (C$310 million) and raised production guidance to 1,615-1,665 MBOE/d (accession 0001017413-26-000006). The interim statements estimate the two Peace River deals together would have added about $317.13 million (C$437 million) of revenue for the first half of 2026 had they closed on January 1. - **Athabasca Oil Sands Project (AOSP) swap with Shell - closed November 1, 2025 (announced November 3, 2025).** Canadian Natural exchanged 10% of its working interest in the Scotford Upgrader and Quest carbon capture facilities for Shell's remaining 10% of the Albian mines, and now owns 100% of the Albian mines and 80% of Scotford and Quest. It adds about 31,000 bbl/d of bitumen production, included in 2025 guidance from November 1, 2025, which was then 1,560-1,580 MBOE/d. Unbudgeted 2025 acquisition capital was $493.82 million (C$690 million); the release also cites the Palliser Block assets (closed June 26, 2025) and Grande Prairie Montney assets (closed July 2, 2025). Accession 0001017413-25-000053. ## Capital returns and financing - **Dividend (August 5-6, 2026):** Quarterly dividend of $0.45 (C$0.625) per share, payable October 2, 2026 to holders of record September 11, 2026; $1.78 (C$2.50) annualized, the 26th consecutive annual increase. Accessions 0001017413-26-000045 and -000043. - **Dividend (May 7, 2026, amended May 11):** Same C$0.625 dividend, payable July 7, 2026; the record date was amended to June 23, 2026 from June 19. Accessions 0001017413-26-000026 and 0001017413-26-000033. - **Dividend increase (March 5, 2026):** Board raised the quarterly dividend 6.4% to C$0.625 ($0.46 at the March 5 closing rate; was C$0.5875, $0.43 at the first-quarter average rate), payable April 7, 2026. Accession 0001017413-26-000008. - **Share repurchases, normal course issuer bid (March 10, 2026):** Approval to buy back up to 182,396,564 shares (10% of the public float) between March 13, 2026 and March 12, 2027. The previous bid bought 27,810,000 shares at a weighted average of $31.75 (C$43.99). The company also adjusted its free cash flow allocation: 60% to buybacks and 40% to the balance sheet until net debt reaches $11.80 billion (C$16 billion); 75% and 25% between $11.80 billion and $9.59 billion (C$13 billion); and 100% to shareholders at or below $9.59 billion. Share repurchases were $224.66 million (C$309 million) in April 2026 alone (accession 0001017413-26-000024). Accession 0001017413-26-000011. - **Medium-term notes (December 4, 2025):** Priced C$1,650 million ($1.18 billion) of Canadian medium-term notes in three C$550 million ($394.58 million) tranches: 3-year 3.30% due December 8, 2028, 5-year 3.75% due February 8, 2031 and 10-year 4.55% due February 8, 2036. Proceeds go to general corporate purposes and possible debt repayment. Accession 0001017413-25-000059. ## Earlier results in the period - **First quarter 2026 (May 7, 2026):** Net earnings of $982.92 million, adjusted net earnings of $1.78 billion and adjusted funds flow of $3.19 billion; production about 1,643,000 BOE/d, up 4% from a year earlier; net debt moved below C$16 billion. Accession 0001017413-26-000024. - **Fourth quarter and 2025 (March 5-6, 2026):** Record 2025 production of about 1,571,000 BOE/d (up 15%); net earnings $7.74 billion, adjusted net earnings $5.33 billion and adjusted funds flow $11.06 billion; non-cash recoverability charges of C$1,731 million ($1.24 billion) in 2025, from North Sea abandonment-cost revisions (C$1,462 million) and Espoir, Offshore Africa (C$269 million); proved reserves 15.91 billion BOE and proved plus probable 20.75 billion BOE; net debt reduced by about $1.93 billion to just under $11.67 billion (C$16 billion) at year end; about $6.4 billion (C$9.0 billion) returned to shareholders: about $3.5 billion of dividends, $1.0 billion of share repurchases and $1.9 billion of net debt reduction. The company repaid US$1.2 billion of US dollar debt securities in 2025. Accession 0001017413-26-000006. - **2026 budget (December 16, 2025):** Operating capital of about $4.58 billion (C$6.3 billion) and 2026 production guidance of 1,590-1,650 MBOE/d, about 3% growth at the midpoint. Accession 0001017413-25-000061. - **Third quarter 2025 results (November 6, 2025):** Interim financial statements and results release; accession 0001017413-25-000056. ## Governance - **Annual meeting (May 7, 2026):** All director nominees were elected; the lowest support was 91.40% for Ambassador Gordon D. Giffin. Accession 0001017413-26-000030. - **Information circular (March 25-26, 2026):** Management information circular furnished for the annual meeting. Accession 0001017413-26-000020.