Canadian Natural Resources Reports $2.4 Billion Adjusted Net Earnings
The energy producer returned $1.5 billion to shareholders in the first quarter of 2026.
Canadian Natural Resources Limited (CNQ), the energy producer, generated adjusted net earnings of $2.4 billion, or $1.17 a share, for the first quarter of 2026. The company reported adjusted funds flow of $4.4 billion, or $2.10 a share, for the period.
Total company production averaged approximately 1,643,000 BOE/d in the first quarter, representing a 4% increase over the 61,000 BOE/d growth seen from first quarter 2025 levels. This growth was supported by record quarterly North American exploration and production (E&P) output of approximately 773,000 BOE/d, which included record liquids production of approximately 329,000 bbl/d and record natural gas production of 2,668 MMcf/d.
Production trajectories varied across the company's asset base. Oil Sands Mining and Upgrading production averaged 587,946 bbl/d of synthetic crude oil (SCO), a level comparable to the first quarter of 2025. The company attributed this result to unplanned maintenance and third-party natural gas supply restrictions, which were partially offset by an increased working interest in AOSP mines. Thermal in situ production averaged 274,674 bbl/d, a 4% decrease from the first quarter of 2025. This decline was attributed to natural field declines and the cyclical nature of Primrose, though pad additions at Pike 1 provided a partial offset.
Operating costs for Oil Sands Mining and Upgrading averaged $23.73/bbl (US$17.30/bbl) of SCO in the first quarter. This figure represents an 8% increase from the first quarter of 2025, which the company attributed primarily to increased maintenance activities. Thermal in situ operating costs averaged $12.59/bbl (US$9.18/bbl).
Capital allocation focused heavily on shareholder returns and debt management. The company returned $1.5 billion to shareholders in the first quarter, comprising $1.2 billion in dividends and $0.3 billion in share repurchases. The board of directors increased the quarterly dividend to $0.625 per common share, bringing the annualized dividend to $2.50 per common share. This marks the 26th consecutive year of dividend increases.
Free cash flow for the three months ended March 31, 2026, was $875 million, down from $1,855 million in the first quarter of 2025. Net debt stood at $16.153 billion as of March 31, 2026.
Looking forward, the company noted that SCO prices on the forward strip for the remainder of 2026 average a premium to WTI of approximately US$5.70/bbl. The company is also progressing its Naphtha Recovery Unit Tailings Treatment project at Horizon, which targets incremental SCO production of approximately 6,300 bbl/d following mechanical completion in the third quarter of 2027.