Canadian Natural Resources (NYSE:CNQ) Issues Quarterly Earnings Results

Key Points

• Canadian Natural Resources reported quarterly EPS of $1.18, beating the $1.05 consensus, while revenue of $8.74 billion slightly missed the $8.79 billion estimate.
• Third-quarter production reached about 1.65 million BOE per day, up roughly 31,000 year over year. The Horizon turnaround finished seven days ahead of schedule, supporting an expected increase in high-margin production in Q4.
• Net debt declined to CAD 12.1 billion, below the company’s CAD 13 billion target. CNQ said it plans to direct 100% of free cash flow to share buybacks under its policy.

Canadian Natural Resources (NYSE:CNQ - Get Free Report) TSE: CNQ posted its quarterly earnings data on Thursday. The oil and gas producer reported $1.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.05 by $0.13, Zacks reports. Canadian Natural Resources had a net margin of 25.24% and a return on equity of 26.79%. The business had revenue of $8.74 billion for the quarter, compared to the consensus estimate of $8.79 billion.

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

• Canadian Natural reported Q3 production of approximately 1.65 million BOE per day, up about 31,000 BOE per day year over year, with record quarterly output in thermal in-situ operations and North American conventional liquids.
• The Horizon turnaround was completed safely in 28 days, seven days ahead of schedule, supporting an expected 23,000-barrel-per-day increase in high-margin SCO production in Q4. The company also plans to extend Horizon turnaround intervals from two years to three, which it says will raise average production capacity by about 5,000 barrels per day over the cycle.
• Q3 adjusted funds flow was approximately CAD 5.5 billion and adjusted net earnings were CAD 3.4 billion; net debt fell to CAD 12.1 billion, below the CAD 13 billion target. The company said it will allocate 100% of free cash flow to buybacks under its policy and target CAD 800 million in monthly purchases in November and December, with a similar pace possible in 2027 if cash flow remains strong.
• Management said the WCS differential has been affected by higher shipping rates and increased Venezuelan production, while describing the pipeline system as close to—but not completely—full. It cited an additional 90,000 barrels per day of TMX egress from the DRA expansion, but said the timing of the Alberta–federal government MOU matters less than reaching the intended outcomes.

Canadian Natural Resources Price Performance

NYSE CNQ traded down $0.43 during trading hours on Friday, hitting $48.49. 6,921,929 shares of the company's stock traded hands, compared to its average volume of 6,459,060. The company has a market capitalization of $99.23 billion, a PE ratio of 11.56 and a beta of 0.45. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.00 and a quick ratio of 0.75. Canadian Natural Resources has a 52-week low of $30.13 and a 52-week high of $56.27. The firm's 50-day moving average is $50.82 and its 200-day moving average is $46.27.

Canadian Natural Resources Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, January 5th. Investors of record on Tuesday, December 15th will be paid a dividend of C$0.62 per share. This represents a $2.50 annualized dividend and a yield of 5.2%. The ex-dividend date of this dividend is Tuesday, December 15th. Canadian Natural Resources's dividend payout ratio is currently 44.44%.

Canadian Natural Resources News Roundup

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

• Positive Sentiment: Adjusted earnings were C$1.18 per share, above the C$1.05 consensus and up from C$0.62 a year earlier. Net profit reportedly rose to C$3 billion from C$600 million, supported by higher energy prices and production. CNQ beats Q3 earnings estimates
• Positive Sentiment: CNQ reached its net-debt target ahead of schedule and plans to accelerate share buybacks, adding to its dividend distributions. That may support shareholder returns. Earnings call highlights: buybacks and production outlook
• Positive Sentiment: The company declared a quarterly dividend of C$0.625 per share, payable January 5, 2027. Improved Horizon reliability and strong thermal production also underpin a more favorable fourth-quarter outlook. Quarterly dividend announcement Production outlook and reliability update
• Neutral Sentiment: Quarterly revenue of C$8.74 billion narrowly missed analysts’ C$8.79 billion estimate, despite the earnings beat. That modest shortfall may have tempered the market response. CNQ quarterly earnings report

Analysts Set New Price Targets

Several research firms recently weighed in on CNQ. Scotiabank restated a "sector perform" rating on shares of Canadian Natural Resources in a research report on Monday, October 19th. Zacks Research upgraded Canadian Natural Resources from a "hold" rating to a "strong-buy" rating in a report on Monday, October 5th. TD Securities reiterated a "buy" rating on shares of Canadian Natural Resources in a research note on Friday, August 7th. Weiss Ratings upgraded Canadian Natural Resources from a "buy (b)" rating to a "buy (b+)" rating in a research note on Thursday, October 8th. Finally, Wall Street Zen cut Canadian Natural Resources from a "buy" rating to a "hold" rating in a report on Saturday. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $57.00.

About Canadian Natural Resources

Canadian Natural Resources Limited is an independent energy company engaged in the exploration, development, production and marketing of crude oil, natural gas and natural gas liquids. Its operations span several resource types and production methods, including oil sands mining and upgrading, thermal in situ projects, conventional oil and gas production, and offshore assets.

The company's principal operating areas are in Western Canada, the United Kingdom's North Sea and offshore Africa.

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