In This Article:
Canadian Natural Resources Limited CNQ recently announced its 2025 budget, highlighting its competitive advantage driven by its diversified asset base and flexible capital allocation strategy. The company’s capital allocation strategy is based on high-return projects that deliver maximum shareholder value. With a C$6 billion operating capital budget, the company targets strong returns on capital.
The production volume for 2025 is targeted between 1,510 MBOE/d (thousand barrels of oil equivalent per day) and 1,555 MBOE/d, indicating a 12% rise over 2024 levels at the midpoint of the guidance. CNQ targets natural gas production to range between 2,425 MMcf/d (million cubic feet per day) and 2,480 MMcf/d, representing growth of about 14% over the 2024 levels based on the average guidance range.
The acquisition of key assets, including Duvernay and AOSP in 2024, has been pivotal in expanding CNQ's production portfolio. The 2025 production mix is targeted to be across 47% light crude oil, NGLs and synthetic crude; 26% heavy crude oil; and 27% natural gas, showcasing a balanced and diversified product mix.
CNQ’s Strong Cash Flow to Deliver Shareholder Returns
CNQ’s, currently carrying a Zacks Rank #3 (Hold), strong cash flow generation is driven by its commitment to deliver shareholder returns. The company has a strong financial position supported by efficient operations that provide it with the flexibility to deliver its planned results and long-term shareholder value. The company has a record of increasing its dividend payout for 25 consecutive years. The 2025 strategy extends this momentum, targeting 60% of the free cash flow to be allocated to its shareholders. In 2025, the company plans to generate strong returns on capital while further reducing net debt.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CNQ’s 2025 Drilling Targets
CNQ's efficiency-driven approach is evident in its capital-efficient drilling strategy, which targets 361 net wells across its crude oil and liquids-rich natural gas assets. The company also plans to continue its capital-efficient thermal drilling program, which includes drilling programs to be carried out at major sites like Kirby and Pike. CNQ also plans to bring 25 infill wells across its thermal in situ assets into production during the year.
Some other Canadian companies that released their 2025 guidance and budget are Imperial Oil Limited IMO, Pembina Pipeline Corporation PBA and Suncor Energy Inc. SU.