Canadian Natural Resources (CNQ) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 production of 1,643,000 BOE/d, with liquids production of 1,198,000 bbl/d, up 2–4% year-over-year, and North American E&P production at 773,000 BOE/d.

• 66% of liquids production was SCO, light crude oil, and NGLs.

• Strong operational performance and cost leadership drove significant free cash flow and netbacks.

• Continued focus on capital efficiency, asset optimization, and prudent capital allocation.

• Marked 26 consecutive years of dividend growth, with a 20% CAGR.

Financial highlights

• Adjusted net earnings of CAD 2.4 billion (CAD 1.17/share) and adjusted funds flow of CAD 4.4 billion (CAD 2.10/share) in Q1 2026.

• Net earnings were CAD 1.3 billion, impacted by non-cash items including LNG agreements, share-based compensation, and FX on USD debt.

• Returned CAD 1.5 billion to shareholders in Q1, including CAD 1.2 billion in dividends and CAD 300 million in share repurchases.

• Net debt at quarter-end was CAD 16.2 billion, reduced below CAD 16 billion by end of April 2026.

• Free cash flow for Q1/26 was CAD 875 million.

Outlook and guidance

• Targeting further debt reduction to CAD 13 billion, after which 100% of free cash flow will be returned to shareholders.

• Maintaining disciplined capital program execution and prioritizing balance sheet strength.

• Advancing front-end engineering for Jackfish and Pike 2 growth projects as part of medium-term growth strategy.

• Monitoring regulatory and fiscal frameworks to enable long-term oil sands growth.

• Short-term growth driven by capital-efficient drilling in conventional E&P and thermal in situ assets.