Canadian Natural Resources (NYSE:CNQ) Posts Earnings Results, Beats Expectations By $0.11 EPS

Key Points

• Canadian Natural Resources beat first-quarter expectations, reporting EPS of $0.85 versus the $0.74 consensus and revenue of $7.72 billion versus estimates of $7.57 billion.
• Operational performance was strong, with record Q1 production and solid free cash flow supported by a sustained SCO premium, helping drive very strong netbacks.
• The company is returning cash to shareholders through a quarterly dividend of C$0.625 per share, while also continuing buybacks and reducing net debt below C$16 billion.

Canadian Natural Resources (NYSE:CNQ - Get Free Report) TSE: CNQ announced its earnings results on Thursday. The oil and gas producer reported $0.85 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.74 by $0.11, Zacks reports. Canadian Natural Resources had a net margin of 22.04% and a return on equity of 17.80%. The company had revenue of $7.72 billion during the quarter, compared to analyst estimates of $7.57 billion. During the same period in the previous year, the business earned $1.16 earnings per share.

Here are the key takeaways from Canadian Natural Resources' conference call:

• Record Q1 production and a sustained SCO premium drove very strong netbacks and free cash flow — Q1 production averaged ~1,643,000 BOE/d with liquids ~1,198,000 bpd and SCO forward premium ~US$5.70/bbl for the remainder of 2026.
• Robust financial results and shareholder returns — adjusted net earnings of CAD 2.4B and adjusted funds flow of CAD 4.4B; net debt fell below CAD 16B, the board set a 75% of FCF payout target, and CAD 360M of buybacks were completed since March 31 (annualized dividend CAD 2.50).
• Execution on growth projects — Jackfish exceeded nameplate (averaged ~134,000 bpd) with Pike One pads producing ~41,000 bpd and management advancing FEED/long‑lead procurement for a 30kbd Jackfish expansion and 70kbd Pike 2.
• Larger oil‑sands mining expansion remains contingent on long‑term egress, regulatory and fiscal frameworks (MoU) and pipeline capacity; management says resolving these constraints is required before committing to major mining growth.

Canadian Natural Resources Trading Down 0.5%

Shares of CNQ traded down $0.22 during trading hours on Friday, hitting $44.52. The company had a trading volume of 8,409,617 shares, compared to its average volume of 11,261,196. Canadian Natural Resources has a 52-week low of $29.30 and a 52-week high of $51.34. The company has a quick ratio of 0.63, a current ratio of 0.95 and a debt-to-equity ratio of 0.36. The stock's 50 day moving average price is $46.63 and its 200 day moving average price is $38.73. The firm has a market cap of $92.87 billion, a P/E ratio of 13.29 and a beta of 0.47.

Canadian Natural Resources Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 7th. Stockholders of record on Friday, June 19th will be paid a dividend of $0.625 per share. This represents a $2.50 dividend on an annualized basis and a dividend yield of 5.6%. The ex-dividend date of this dividend is Thursday, June 18th. Canadian Natural Resources's dividend payout ratio (DPR) is 54.93%.

Hedge Funds Weigh In On Canadian Natural Resources

Several institutional investors and hedge funds have recently bought and sold shares of CNQ. Sunbelt Securities Inc. bought a new stake in Canadian Natural Resources in the fourth quarter valued at approximately $25,000. Compound Planning Inc. grew its holdings in shares of Canadian Natural Resources by 9.6% in the fourth quarter. Compound Planning Inc. now owns 26,778 shares of the oil and gas producer's stock worth $906,000 after purchasing an additional 2,349 shares during the last quarter. Mercer Global Advisors Inc. ADV increased its stake in shares of Canadian Natural Resources by 2.6% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 18,975 shares of the oil and gas producer's stock worth $642,000 after buying an additional 472 shares during the period. Wahed Invest LLC increased its stake in shares of Canadian Natural Resources by 20.4% in the fourth quarter. Wahed Invest LLC now owns 45,592 shares of the oil and gas producer's stock worth $1,546,000 after buying an additional 7,731 shares during the period. Finally, EP Wealth Advisors LLC bought a new stake in Canadian Natural Resources during the 4th quarter valued at $479,000. 74.03% of the stock is currently owned by institutional investors.

Trending Headlines about Canadian Natural Resources

Here are the key news stories impacting Canadian Natural Resources this week:

• Positive Sentiment: Canadian Natural Resources beat Q1 expectations, with earnings and revenue coming in above analyst estimates; that kind of outperformance can support the stock as investors reward better-than-expected operating results. Article Title
• Positive Sentiment: Raymond James upgraded Canadian Natural Resources from “market perform” to “outperform,” while Zacks Research also raised its view to “strong-buy,” signaling improved analyst confidence in CNQ’s outlook. Article Title
• Positive Sentiment: The company declared a quarterly dividend of C$0.625 per share, underscoring its cash-return profile and offering investors a 5.6% annualized yield, which can attract income-focused buyers. Article Title
• Neutral Sentiment: CNQ also released first-quarter results showing strong revenue but softer profitability metrics versus last year, including lower gross profit, operating profit, and EPS year over year, which may temper enthusiasm even after the earnings beat. Article Title

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on CNQ shares. The Goldman Sachs Group lifted their price target on Canadian Natural Resources from $37.00 to $49.00 and gave the stock a "buy" rating in a research note on Thursday, March 12th. Wall Street Zen raised Canadian Natural Resources from a "sell" rating to a "hold" rating in a report on Saturday, January 31st. Weiss Ratings upgraded Canadian Natural Resources from a "hold (c+)" rating to a "buy (b)" rating in a research report on Friday, March 27th. Royal Bank Of Canada upped their target price on Canadian Natural Resources from $61.00 to $65.00 and gave the stock an "outperform" rating in a research note on Friday, March 6th. Finally, Zacks Research upgraded shares of Canadian Natural Resources from a "hold" rating to a "strong-buy" rating in a research report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Canadian Natural Resources currently has an average rating of "Moderate Buy" and a consensus target price of $57.00.

About Canadian Natural Resources

Canadian Natural Resources Limited NYSE: CNQ is a Calgary-based independent oil and natural gas exploration and production company. Established in the early 1970s and publicly listed in Canada and the United States, the company is principally engaged in the exploration, development, production, and marketing of crude oil, natural gas and natural gas liquids. Its asset base spans conventional and unconventional reservoirs and includes oil sands mining and in-situ thermal projects, midstream processing and upgrading capacity, and related field operations.

The company's operations are concentrated in Western Canada, where it develops heavy crude, bitumen from oil sands and conventional light crude and natural gas resources.

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