Canadian Natural Resources (CNQ) Q2 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q2 2025, driven by efficient operations, continuous improvement, and accretive acquisitions, with production up 10% year-over-year to 1,420,358 BOE/d despite a planned turnaround at AOSP.

• Completed planned turnaround at AOSP five days ahead of schedule and on budget, with high production and utilization at Horizon and AOSP.

• Opportunistic acquisitions, including Palliser and Grande Prairie Montney assets, expanded high-quality land and production inventory, supporting long-term value creation.

• Multilateral drilling and Duvernay asset integration delivered capital efficiencies and cost reductions.

Financial highlights

• Adjusted funds flow in Q2 2025 was $3.3 billion, with adjusted net earnings of $1.5 billion and net earnings of $2.46 billion.

• Returns to shareholders in Q2 totaled $1.6 billion, including $1.2 billion in dividends and $400 million in share repurchases; year-to-date returns reached $4.6 billion.

• Net debt reduced to $16.98 billion at quarter end; debt to EBITDA at 0.9x and debt to book capital at 29.1%.

• Liquidity exceeded $4.8 billion, reflecting strong undrawn bank facilities and cash on hand.

• Free cash flow in Q2 2025 was $739 million; net capital expenditures were $1.92 billion.

Outlook and guidance

• Second half of 2025 expected to deliver strong operating results, with production guidance to be updated after the AOSP swap closes.

• Full-year capital budget remains unchanged, excluding the Grande Prairie acquisition purchase price; all maintenance capital for new assets covered by the 2025 budget.

• Targeting to maintain a top-tier WTI breakeven in the low to mid-$40 per barrel range, post-dividend.

• Anticipates similar shareholder returns in 2025 as in 2024, despite allocating only 60% of free cash flow to returns versus 100% in 2024.