Canadian Natural Resources drifts lower despite Q3 earnings topper

Canadian Natural Resources (CNQ) -1.4% in Thursday's trading after posting better than expected Q3 adjusted earnings, as record oil and gas production helped offset a decline in crude prices.

Q3 net earnings plunged by nearly 75% to C$600 million (~US$425 million), or C$0.29/share, from C$2.27 billion, or C$1.06/share, in the year-earlier quarter; results included C$1.2 billion in non-operating losses, related to items including the effects of share-based compensation and risk management activities.

Q3 product sales for the quarter rose to C$11.07 billion from C$10.4 billion a year ago; not including royalties, revenues rose 7% Y/Y to C$9.52 billion, slightly short of analyst expectations for C$9.66 billion.

Canadian Natural (CNQ) said expenses for production, transportation and blending and feedstock all increased compared with last year, and it recorded a C$290 million foreign exchange loss vs. a gain in 2024.

Q3 production jumped 19% Y/Y to a record 1.62 million boe/day, driven by acquisitions and strong operational performance, which the company said included quarterly records for both liquids and natural gas.

Canadian Natural (CNQ) said it forecasts full-year production to rise to 1.56 million-1.58 million bbl/day from 1.36 million bbl/day in 2024 and priorguidance of 1.51 million-1.55 million boe/day, citing newly integrated assets and stable field performance.