Results / Oil & Gas /
Canadian Natural raises 2026 guidance again on record synthetic crude output
Net earnings of C$4,503 million and adjusted funds flow of C$6,866 million on WTI of US$92.85 let the company cut net debt to C$14,526 million and return about C$4.0 billion; four growth projects stay on hold until the trilateral MOU becomes binding agreements.
Canadian Natural reported second-quarter 2026 net earnings of C$4,503 million, up from C$2,459 million a year earlier, adjusted funds flow (management's non-GAAP measure) of C$6,866 million against C$3,262 million, and free cash flow of C$2,975 million after net capital spending of C$2,405 million [1]. Production averaged 1,676,754 BOE/d, 18% more than in the second quarter of 2025, including a record 624,754 bbl/d of synthetic crude with the upgraders at 106% of nameplate; WTI averaged US$92.85, the Western Canadian Select discount was US$14.62 and the company's synthetic crude sold at a US$8.37 premium [1].
Net debt fell about C$1.6 billion in the quarter to C$14,526 million, and with C$1.3 billion of dividends and C$1.1 billion of buybacks the company counts roughly C$4.0 billion returned directly and indirectly [1]. It raised 2026 production guidance for the second time this year, to 1,637–1,682 MBOE/d from 1,615–1,665, after a C$761 million Peace River acquisition and conventional drilling results, and scheduled a 35-day Horizon turnaround from September 8 [1].
The strategic line is the one to keep. Four growth projects (a Jackfish expansion, Pike 2, the Jackpine mine and a Horizon extraction project) remain on hold until definitive agreements are signed under the July 2 trilateral MOU with Canada and Alberta, which sets November 15, 2026 as the deadline [1][2]. Until then the cash goes to debt and shareholders, and the 60/75/100% payout rule moves to 100% at C$13 billion of net debt [1].
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Canadian Natural Resources Limited Announces 2026 Second Quarter Results
Net earnings C$4,503M (Q2 2025 C$2,459M); adjusted net earnings from operations C$4,568M; adjusted funds flow C$6,866M (C$3,262M); cash from operations C$6,823M; net capex C$2,405M; FCF C$2,975M; production 1,676,754 BOE/d (1,420,358), +18%; SCO 624,754 bbl/d record, upgrader utilization 106%; opex C$22.19/bbl; WTI US$92.85; WCS −US$14.62; SCO premium US$8.37; SCO C$125.78 (C$87.22); net debt C$14,526M, reduced about C$1.6B; dividends C$1.3B and buybacks C$1.1B in the quarter; 2026 guidance 1,637–1,682 MBOE/d from 1,615–1,665; Peace River acquisition ~C$761M; 2026 capital C$7,641M; Horizon turnaround 35 days from Sept 8, ~29,000 bbl/d impact; four growth projects on hold pending definitive agreements under the trilateral MOU; Cheniere 140,000 MMBtu/d from 2030; dividend C$0.625.
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Advancing emissions reductions and expanded export capacity: The trilateral Memorandum of Understanding between Canada, Alberta and the Oil Sands Alliance
Oil Sands Alliance members include Canadian Natural; binding agreements due on or before November 15, 2026.
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