Canadian Natural Resources (CNQ) Q4 2025 earnings summary

Executive summary

• Achieved record annual production of 1,571,000 BOEs/day in 2025, up 15% year-over-year, driven by organic growth and accretive acquisitions, including full ownership of Albian mines, Palliser Block, Montney, and Grande Prairie assets.

• Set new records in total liquids, oil sands mining, thermal in-situ, and natural gas production, with significant cost reductions across operations.

• Net earnings reached $10.8 billion, with adjusted net earnings of $7.4 billion and adjusted funds flow of $15.5 billion.

• Returned $9.0 billion to shareholders in 2025 through dividends, share repurchases, and net debt reduction.

• Board approved a 6.4% quarterly dividend increase, marking 26 consecutive years of dividend growth and enhanced free cash flow allocation policy.

Financial highlights

• Adjusted Net Earnings for 2025 were $7.4 billion (CAD 3.56/share); adjusted funds flow was $15.5 billion (CAD 7.39/share).

• Net earnings for 2025 were $10.8 billion, including a non-cash gain from the AOSP asset swap.

• Returned $9.0 billion to shareholders: $4.9 billion in dividends, $1.4 billion in share repurchases, and $2.7 billion in net debt reduction.

• Year-end net debt was just under $16 billion; liquidity exceeded $6.3 billion.

• Operating costs for liquids averaged $18.44/bbl; Oil Sands Mining and Upgrading costs were $21.84–22.66/bbl.

Outlook and guidance

• Increased 2026 production guidance midpoint by 20,000 BOEs/day to a range of 1,615,000–1,665,000 BOEs/day.

• Reduced 2026 capital forecast by $310 million to approximately $6 billion.

• Deferred major capital projects, including the $8.25 billion Jackpine Mine expansion, due to regulatory uncertainty on carbon pricing and methane.

• Focus remains on organic growth, operational efficiency, and maximizing shareholder value.