Canadian Natural Resources Limited (CNRL) posted a record quarter for total production, liquids production, adjusted net earnings, and funds flow, aided by strong operating results, acquisitions, and strong oil prices.
Q2 saw record total production (1.677 MMBoe/d, up 18% year-over-year) and record liquids production (1.249 MMb/d, up 23% year-over-year). The absence of planned turnarounds in Q2, upgrader utilization of 106%, and last year’s Chevron acquisition helped CNRL’s mining and upgrading production achieve a record 625 Mb/d in Q2, up 35% year-over-year.
2026 production guidance was increased by 20 MBoe/d (+1.2%) to 1.637 to 1.682 MBoe/d, due to strong drilling results and the CAD$804 MM Charlie Lake acquisition from Tamarack Valley, which closed in June and produced over 18 MBoe/d in Q1. This was the second Charlie Lake acquisition for CNRL this year; in Q1 it acquire Tourmaline’s “Peace River High” assets for CAD$765 MM. The company sees cost synergies from having scale in that area.
Helping drive financial results, prices for sweet synthetic crude oil (SCO) at Edmonton averaged US$8.37/Bbl above WTI in Q2 (vs. US$0.98/bbl in Q2 2025). The premium has been driven by strength in diesel cracks, as SCO yields more diesel than a conventional light oil barrel.
Regarding the recent Memorandum of Understanding between the Oil Sands Alliance and the federal and Alberta governments, CEO Scott Stauth noted that “until we have completed these definitive agreements, development of our medium and long-term projects remain on hold.” CNRL’s medium-term projects include thermal capacity additions at Jackfish (+30 Mb/d) and Pike 2 (+70 Mb/d), while longer-term projects include mining capacity additions (see chart below) at Jackpine (+150 Mb/d) and Horizon (+90 Mb/d).
Like other oil sands operators, CNRL is exploring the use of diluent as a solvent to enhance recovery and reduce steam-oil ratios at its thermal projects, and expects to begin injecting diluent solvent into wells at a pilot on its Kirby South leases early next year.
CNRL maintained its 2026 capital budget of CAD$6.1 billion before net acquisitions.
Source: Canadian Natural Resources Limited
