Canadian Natural Resources (CNQ) Q4 2024 earnings summary

Executive summary

• Achieved record annual production of 1.36 million BOEs/day in 2024, with over 1 million barrels/day in liquids and record oil sands mining and upgrading output of 472,245 barrels/day, peaking at 534,631 barrels/day in Q4.

• Completed major acquisitions, including Chevron's Duvernay and Alberta assets and consolidation of Albian Mines to 100% ownership, adding 93,500 barrels/day of long-life, zero-decline production.

• Delivered strong operational execution, with multiple projects brought online ahead of schedule and significant cost reductions across assets.

• Returned $7.1 billion to shareholders in 2024 through dividends and share repurchases, with a 4% dividend increase approved for 2025 and a 25th consecutive year of dividend increases.

Financial highlights

• 2024 net earnings were $6.1 billion; adjusted net earnings from operations were $7.4 billion.

• Annual adjusted funds flow reached $14.9 billion, with Q4 at $4.2 billion.

• Free cash flow for 2024 was $4.5 billion after dividends, capital, and abandonment expenditures.

• Capital program was $100 million under budget at $5.3 billion, resulting in significant free cash flow.

• Debt to EBITDA at 1.1x and debt to book capital at 32% at year-end; liquidity of $4.7 billion.

Outlook and guidance

• 2025 capital budget set at $6.0 billion, with $787 million for abandonment, $90 million for carbon capture, and $45 million for a one-time office move.

• Expansion potential at Jackpine Mine (100,000 barrels/day) and further pad adds in thermal operations, contingent on market and regulatory factors.

• Corporate production guidance will increase after closing the AOSP swap, adding 31,000 barrels/day of bitumen.

• Oil Sands Mining and Upgrading production capacity targeted at 592,000 barrels/day post-swap and project completions.

• Anticipates continued strong production rates, with some allowance for unplanned downtime.