Canadian Natural Raises Production Guidance After Record Quarter
The company reported record quarterly adjusted net earnings of $4.6 billion for the period ended June 30, 2026.
Canadian Natural Resources Limited (CNQ), an energy producer, increased its 2026 annual production guidance for the second time this year following a record second quarter. The company now forecasts production between 1,637 MBOE/d and 1,682 MBOE/d, raising the midpoint by 20 MBOE/d over previous estimates,.
Management attributed the guidance hike to strong conventional drilling results and the completion of a strategic acquisition in the Peace River area of Alberta for approximately $761 million,. Total corporate production for the second quarter reached a record 1,677,000 BOE/d, an 18% increase from the 1,621,000 BOE/d reported in the same period last year.
Performance was led by the Oil Sands Mining and Upgrading segment, which achieved its highest quarterly production in company history, averaging approximately 625,000 bbl/d. The segment benefited from high upgrader utilization of 106% and a synthetic crude oil premium to WTI that averaged US$8.37/bbl. Combined with operating costs of $22.19/bbl, the segment realized a record quarterly per barrel netback of approximately $78.00/bbl,.
North American Conventional E&P assets also reached record quarterly liquids production of approximately 338,000 bbl/d, representing a 25% increase over the second quarter of 2025,.
Financial results for the quarter ended June 30, 2026, included record adjusted funds flow of $6.9 billion, or $3.30 a share. Free cash flow for the period was $2,975 million, compared to negative $79 million in the second quarter of 2025. The company returned approximately $4.0 billion to shareholders in the quarter, consisting of $1.3 billion in dividends, $1.1 billion in share repurchases, and $1.6 billion in net debt reduction.
Net debt fell to $14,526 million as of June 30, 2026, down from $16,979 million a year earlier. The company stated it is working toward a target net debt level of $13 billion, at which point it intends to allocate 100% of free cash flow to direct shareholder returns via share repurchases,.
Operating capital expenditures for 2026 remain unchanged at approximately $6.0 billion. Total capital expenditures for the year are now forecasted at $7,641 million, up from a March forecast of $6,880 million due to the recent acquisition.
Regarding future growth, the company is working with the Alberta and federal governments on definitive agreements following a trilateral Memorandum of Understanding to establish pathways for economic production growth and greenhouse gas emission reductions,.