Q2 2024 Canadian Natural Resources Ltd Earnings Call Transcript
Key Points
- Canadian Natural Resources Ltd (CNQ) reported a strong operational quarter with production of 1.29 million BOEs per day, an 8% increase compared to Q2 2023.
- The company achieved significant milestones, including the production of the 1 billionth barrel of bitumen at Horizon since operations began in 2009.
- Strong financial results were reported with adjusted funds flow of $3.6 billion and adjusted net earnings from operations of $1.9 billion.
- The company returned $1.9 billion to shareholders in the quarter, including $1.1 billion in dividends and $800 million in share buybacks.
- Canadian Natural Resources Ltd (CNQ) maintained a strong financial position with net debt at $9.2 billion and debt to EBITDA at 0.6 times at the end of Q2 2024.
- Pelican Lake production averaged approximately 45,000 barrels per day, down 5% from the second quarter of 2023.
- Operating costs at Pelican Lake increased by 4% compared to the second quarter of 2023, primarily due to lower production volumes.
- The company faced challenges with natural gas prices, leading to a shift in development activity to high-return multilateral heavy oil wells.
- The differential for Western Canadian crude oil widened, impacting realized pricing.
- The company is still working on finalizing the fiscal regime for the Pathways project, which is crucial for capturing CO2 emissions and future growth.
Good morning. We would like to welcome everyone to Canadian Natural's 2024 second quarter earnings conference call and webcast. After the presentation, we will conduct a question-and-answer session. (Operator Instructions) Please note this call is being recorded today, August 1, 2024, at 9 AM Mountain Time.
I would now like to turn the meeting over to your host for today's call, Lance Casson, Manager of Investor Relations.
Thank you, good morning, everyone, and thank you for joining Canadian Natural's second-quarter 2024 earnings conference call. As always, I'd like to remind you of our forward-looking statements. It should be noted that in our reporting disclosures, everything is in Canadian dollars unless otherwise stated, and we report our reserves and production before royalties.
Additionally, I would suggest you review our advisory section in our financial statements that includes comments on non-GAAP disclosures. Speaking on today's call, Scott Stauth, our President; and Mark Stainthorpe, our
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