Canadian Natural — Company directory

Canadian Natural Resources Limited, commonly referred to as Canadian Natural or CNRL, is a Canadian oil and natural gas producer founded in 1989 and headquartered in Calgary, Alberta. It is listed on the TSX and NYSE under the symbol CNQ.

Overview

Canadian Natural Resources Limited, commonly referred to as Canadian Natural or CNRL, is one of Canada's largest oil and natural gas producers. The company was founded in 1989. Its portfolio of assets includes oil sands mining, thermal in situ recovery, conventional oil and natural gas production, and offshore oil and gas production. Canadian Natural is listed on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE) under the symbol CNQ.

The company reports approximately 10,000 employees as of 2023. Revenue was CAD $32.5 billion in 2022 and net income was CAD $10.9 billion in the same year. Operations span North America, the UK North Sea, and Offshore Africa.

Headquarters and Regional Presence

The corporate headquarters is located in Calgary, Alberta, Canada, at 2100, 855 – 2 Street S.W., Calgary, Alberta T2P 4J8. The Calgary headquarters serves as the central hub for corporate strategy, finance, and overall management.

Regional offices and operational sites include Fort McMurray, Alberta for oil sands operations, Aberdeen, Scotland for North Sea operations, and various field offices across Western Canada.

Operations

Oil sands mining and upgrading. Canadian Natural operates in Alberta's oil sands, with operations in the Athabasca region. The Horizon Oil Sands facility began production in 2009 and is an integrated mining and upgrading operation that produces high-quality, low-sulfur synthetic crude oil. Mining uses truck and shovel operations to extract bitumen-rich oil sands, and upgrading converts bitumen into synthetic crude oil. Capacity is approximately 250,000 barrels per day of synthetic crude oil. The company also operates the Athabasca Oil Sands Project (AOSP) through a joint venture, which includes the Muskeg River and Jackpine mines.

Thermal in situ recovery. For oil sands deposits that are too deep to mine, the company uses thermal in situ recovery methods. The primary technique is Steam-Assisted Gravity Drainage (SAGD), which involves injecting steam into the reservoir to heat the bitumen so that it flows and can be pumped to the surface. Major thermal in situ projects include Kirby, Primrose, Wolf Lake, and Pelican Lake, which uses polymer flooding technology.

Conventional oil and natural gas. Conventional operations across Western Canada include light crude oil and natural gas liquids in parts of Alberta and British Columbia, heavy crude oil in the Lloydminster region of Alberta and Saskatchewan, and natural gas in multiple basins across Western Canada.

Offshore oil and gas. Offshore operations are located in two main regions. In the North Sea (UK sector) these include the Ninian field, the Tiffany field, and other smaller fields. In Offshore Africa they include Côte d'Ivoire, with the Baobab and Espoir fields, and South Africa, where the company conducts exploration activities.

Investments, Subsidiaries and Affiliates

Subsidiaries include Canadian Natural Resources International (CNRI), which manages international operations, particularly in the North Sea and Offshore Africa; Horizon Oil Sands Inc., a wholly-owned subsidiary that operates the Horizon Oil Sands project; and Canadian Natural Resources Northern Alberta Partnership, which manages certain oil sands assets in northern Alberta. Canadian Natural also holds a partial ownership in Baytex Energy Ltd., a stake acquired through its merger with Athabasca Oil Corporation in 2023.

Joint ventures and affiliates include the Athabasca Oil Sands Project (AOSP), in which Canadian Natural holds a 70% interest and which includes the Muskeg River and Jackpine mines and the Scotford upgrader; partners are Shell Canada Energy (20%) and Chevron Canada Limited (10%). The company holds a 50% interest in the North West Redwater Partnership, which operates the Sturgeon Refinery in Alberta, with North West Refining Inc. as partner. It also holds a significant equity stake in Inter Pipeline Ltd., a petroleum transportation and storage company, and has partnership arrangements for its offshore operations in Côte d'Ivoire, including with the national oil company PETROCI.

The company maintains a portfolio of strategic investments, including carbon capture and storage projects such as the Quest Carbon Capture and Storage project, renewable energy projects, and investments in technology companies developing technologies for the oil and gas industry, particularly in environmental performance and operational efficiency.

Acquisitions

Devon Energy's Canadian assets (2019), CAD $3.8 billion, which expanded thermal and heavy oil operations in Alberta.
Athabasca Oil Sands Project stake (2017), CAD $12.7 billion, a 70% interest acquired from Shell and Marathon Oil, including the Muskeg River and Jackpine mines.
Royal Dutch Shell's oil sands assets (2017), part of the same deal, including Shell's Peace River operations and undeveloped oil sands leases.
Painted Pony Energy Ltd. (2020), CAD $461 million, which added natural gas assets in the Montney region of northeastern British Columbia.
Laricina Energy (2018), a private company holding oil sands leases in the Athabasca region.
Barrick Energy Inc. (2013), CAD $173 million, which added light oil assets.
Anadarko Canada Corporation (2006), CAD $4.1 billion, which expanded Western Canadian operations, particularly in natural gas.
Petro-Canada's Western Canadian assets (2002), CAD $1.6 billion, including properties in Alberta and British Columbia.

Financial Performance

For fiscal year 2022 the company reported revenue of CAD $32.5 billion, net earnings of CAD $10.9 billion, cash flow from operating activities of CAD $19.4 billion, and capital expenditures of CAD $4.9 billion. Total assets were CAD $93.5 billion, total liabilities CAD $40.2 billion, and shareholders' equity CAD $53.3 billion.

Production in 2022 totalled 1,281,434 barrels of oil equivalent per day (BOE/d). Oil sands mining and upgrading accounted for 448,133 barrels per day; thermal and oil sands production 263,194 barrels per day; North America conventional oil and NGL 227,390 barrels per day; North America natural gas 1,918 million cubic feet per day; and international production 34,643 BOE/d.

Financial ratios as of 2022 included a return on equity of 20.5%, a return on assets of 11.7%, a debt-to-equity ratio of 0.34, and a current ratio of 0.81. The price-to-earnings ratio was 7.2. As of 2023, the company had increased its dividend for 23 consecutive years, making it a Dividend Aristocrat on the Toronto Stock Exchange.