Canadian Natural Resources Limited (CNQ – Free Report) reported first-quarter 2025 adjusted earnings per share of 81 cents, which beat the Zacks Consensus Estimate of 73 cents. The bottom line also increased from 51 cents in the year-ago quarter. The outperformance can be attributed to higher realized natural gas prices and higher realized oil and NGL prices.
Total revenues of $7.6 billion appreciated from $6.1 billion in the prior-year period. Additionally, the figure beat the Zacks Consensus Estimate of $6.8 billion, fueled by increased product sales.
Canadian Natural Resources Limited price, consensus and EPS surprise
Canadian Natural Resources Limited price-consensus-eps-surprise-chart | Canadian Natural Resources Limited Quote
On May 8, CNQ’s board of directors approved its quarterly cash dividend of 58.75 Canadian cents per common share. The dividend will be payable on July 3, 2025, to its shareholders of record as of the close of business on June 13. This marks the company’s continued commitment to returning value to its shareholders.
This commitment is further evidenced by CNQ’s impressive track record of growing and sustaining its dividend for 25 years, boasting a remarkable 21% annual growth rate over that period.
In the first quarter of 2025, the company returned around C$1.7 billion directly to its shareholders. This included C$1.2 billion in dividends and C$0.5 billion from the repurchase and cancellation of 11.2 million common shares, purchased at a weighted average price of C$43.66 per share.
The oil and gas exploration and production company delivered strong financial results in the first quarter of 2025, highlighted by net earnings of approximately C$2.5 billion. Furthermore, CNQ reported robust adjusted net earnings from operations of approximately C$2.4 billion. This strong performance was also reflected in the company’s cash flow, with cash flows from operating activities totaling approximately C$4.3 billion and adjusted funds flow reaching approximately C$4.5 billion.
On March 10, 2025, CNQ’s board of directors approved the renewal of its Normal Course Issuer Bid. This allows the company to repurchase up to 10% of its public float for cancellation between March 13, 2025, and March 12, 2026, subject to approval from the Toronto Stock Exchange.
Up to May 7, 2025, the Calgary-based company delivered significant returns to its shareholders, amounting to approximately C$3.1 billion. This total was composed of C$2.4 billion in dividends and C$0.7 billion through the repurchase and cancellation of 15.8 million common shares.
CNQ’s production and prices
Canadian Natural reported quarterly production of 1,582,348 barrels of oil equivalent per day (Boe/D), up 18.7% from the prior-year quarter’s level. Moreover, the figure beat our model projection of 1,494,762Boe/D.
The oil and natural gas liquid (NGL) output (accounting for around 75% of total volumes) increased to 1,173,804 barrels per day (Bbl/d) from 975,668 Bbl/d recorded a year ago. Moreover, the figure beat our model projection of 1,093,674Bbl/d.
Natural gas volumes totaled 2,451 million cubic feet per day (MMcf/d), up 14.2% from 2,147 MMcf/d recorded in the year-ago period. Furthermore, the figure beat our model projection of 2,407 MMcf/d.
Natural gas production in North America reached 2,436 MMcf/d in the first quarter of 2025, compared with 2,135 MMcf/d in the first quarter of 2024. Additionally, the figure beat our model projection of 2,395 MMcf/d.
Exploration and production activities in North America, not including thermal in situ methods, reported an average output of 276,532 barrels per day. This indicates a 16.4% year-over-year increase during this quarter. Meanwhile, thermal in situ production volume increased to 284,706 Bbl/d from 268,155 Bbl/d recorded a year ago. However, the figure missed our model projection of 296,259 Bbl/d.
In the first quarter of 2025, the company achieved record quarterly production in its Oil Sands Mining and Upgrading operations, reaching 595,116 barrels per day (bbl/d) of synthetic crude oil (“SCO”), including planned turnaround activities. This represented a 34% increase in quarterly production, approximately 445,209 bbl/d, compared with the first quarter of 2024.
The realized natural gas price increased 22.7% to C$3.13 per thousand cubic feet from the year-ago level of C$2.55. The realized oil and NGL price increased 14% to C$79.85 per barrel from C$70.01 in the first quarter of 2024.
The company also achieved industry-leading annual operating costs for Oil Sands Mining and Upgrading, amounting to C$21.88 per barrel in the first quarter of 2025.
At the Athabasca Oil Sands Project, the planned turnaround that began on April 4, 2025, is targeted for 73 days. In addition, the Scotford Upgrader will operate at reduced rates during the turnaround period, impacting the company’s net annual average production by approximately 31,000 bbl/d, based on its current 90% working interest.
On the recently acquired Duvernay assets, Canadian Natural’s effective and efficient operations have resulted in both capital and operating cost efficiencies. Additionally, the company is on track to achieve a 2025 budget production of approximately 60,000 Boe/d.
CNQ’s costs and capital expenditure
Total expenses in the quarter were C$7.8 billion, up from C$6.8 billion recorded in the year-ago period. The increase was due to higher costs in production, transportation, blending and feedstock, depletion, depreciation and amortization, along with increased interest and financing expenses.
Capital expenditure totaled C$1.1 billion compared with C$876 million a year ago.
CNQ’s balance sheet
As of March 31, 2025, CNQ had cash and cash equivalents worth C$93 million and long-term debt of approximately C$16 billion, with a debt to capitalization of about 28.3%.
CNQ’s 2025 guidance
During the first quarter of 2025, CNQ reduced its 2025 capital budget by $100 million and is now forecasting capital for 2025 at $6.05 billion, excluding abandonments.
For 2025, CNQ expects a 12% increase in production, targeting a range of 1,510 MBOE/d to 1,555 MBOE/d. The company anticipates a 14% rise in natural gas production, with a targeted range of 2,425 MMcf/d to 2,480 MMcf/d. It plans to allocate 60% of free cash flow to shareholders, continuing its 25-year track record of increasing dividends.
CNQ currently carries a Zacks Rank #3 (Hold).
Important earnings at a glance
While we have discussed CNQ’s first-quarter results in detail, let us take a look at three other key reports in this space.
Cheniere Energy, Inc. reported a first-quarter 2025 adjusted profit of $1.57 per share, which missed the Zacks Consensus Estimate of $2.81. Moreover, the bottom line decreased from the year-ago quarter’s level of $2.13 per share. The underperformance can be attributed to an increase in operating costs and expenses.
Revenues totaled $5.4 billion, beating the Zacks Consensus Estimate of $4.4 billion and increasing 28% from the year-ago quarter’s level of $4.3 billion. The increase in revenues can be attributed to the strength in liquefied natural gas (“LNG”) shipments. During the period, Cheniere Energy loaded 608 trillion British thermal units (TBtu) of LNG, ahead of the consensus mark of 586 TBtu.
As of March 31, 2025, Cheniere had approximately $2.5 billion of cash and cash equivalents. Its net long-term debt amounted to $22.5 billion, with a debt-to-capitalization of 69.1%.
Oil and gas equipment and services provider TechnipFMC plc reported first-quarter 2025 adjusted earnings of 33 cents per share, which missed the Zacks Consensus Estimate of 36 cents, primarily due to a 4.8% year-over-year increase in costs and expenses. However, the bottom line increased from the year-ago quarter’s reported profit of 22 cents, driven by improved performance in the Subsea segment.
The company’s revenues of $2.2 billion missed the Zacks Consensus Estimate by 1.1%. However, the top line increased from the year-ago quarter’s reported figure of $2 billion.
Houston, TX-based oil and gas equipment and services provider Baker Hughes reported first-quarter 2025 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 47 cents. The bottom line also improved from the year-ago level of 43 cents.
As of March 31, 2025, Baker had cash and cash equivalents of $3,277 million. Baker had a long-term debt of $5,969 million at the end of the reported quarter, with a debt-to-capitalization of 25.9%.
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