Canadian Natural Resources (NYSE:CNQ) Announces Quarterly Earnings Results

Canadian Natural Resources (NYSE:CNQ) (TSE:CNQ) released its quarterly earnings data on Thursday. The oil and gas producer reported $0.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.53 by $0.06, Zacks reports. Canadian Natural Resources had a net margin of 14.90% and a return on equity of 18.93%. The company had revenue of $6.89 billion for the quarter, compared to analysts’ expectations of $6.64 billion. During the same quarter in the prior year, the firm earned $0.93 EPS.

Here are the key takeaways from Canadian Natural Resources’ conference call:

• Record production and operating performance: 2025 set multiple records — ~1,571,000 BOE/d annual production (up 15% YoY) and ~1,659,000 BOE/d in Q4 — with lower operating costs and capital spending coming in below prior forecasts.
• Strong financial results and accelerated shareholder returns: adjusted net earnings of CAD 7.4 billion and adjusted funds flow of CAD 15.5 billion in 2025, ~CAD 9 billion returned to shareholders, a 6% dividend increase, and a revised free cash flow policy that raises payout targets when net debt falls below CAD 16B (75%) and CAD 13B (100%), with the company below the CAD 16B trigger at year-end.
• Reserve growth at low FD&A costs: year-end 2025 total proved reserves increased 4% to 15.9 billion BOE (proved + probable 20.75 billion), replacing 218% of 2025 production on a proved basis with FD&A costs of CAD 3.64/BOE (proved).
• Full ownership of Albian (AOSP) creates synergies and a non‑cash gain: the 100% AOSP asset swap produced a ~CAD 3.8 billion after‑tax non‑cash fair value adjustment and management expects operational synergies (estimated CAD 30–40 million/year) and further cost improvements.
• Big project deferral due to regulatory uncertainty: FEED capital for the ~CAD 8.25 billion Jackpine mine expansion has been deferred because of unsettled carbon‑pricing, methane rules and egress concerns, which delays a major long‑term growth option.

Canadian Natural Resources Stock Performance

Shares of NYSE CNQ traded up $1.13 during midday trading on Friday, reaching $46.45. The company’s stock had a trading volume of 3,192,605 shares, compared to its average volume of 9,769,823. The company has a debt-to-equity ratio of 0.41, a current ratio of 0.86 and a quick ratio of 0.53. The stock has a market capitalization of $96.83 billion, a P/E ratio of 20.55 and a beta of 0.63. The firm has a 50 day moving average price of $37.57 and a 200-day moving average price of $33.97. Canadian Natural Resources has a 12-month low of $24.65 and a 12-month high of $46.85.

Canadian Natural Resources Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, April 7th. Stockholders of record on Friday, March 20th will be paid a $0.625 dividend. This represents a $2.50 dividend on an annualized basis and a dividend yield of 5.4%. The ex-dividend date is Friday, March 20th. This is a boost from Canadian Natural Resources’s previous quarterly dividend of $0.59. Canadian Natural Resources’s dividend payout ratio (DPR) is presently 74.34%.

Institutional Trading of Canadian Natural Resources

Hedge funds have recently added to or reduced their stakes in the stock. Sunbelt Securities Inc. purchased a new stake in shares of Canadian Natural Resources during the 4th quarter worth approximately $25,000. Manchester Capital Management LLC purchased a new position in shares of Canadian Natural Resources during the 4th quarter valued at $28,000. Quarry LP bought a new position in shares of Canadian Natural Resources during the 3rd quarter worth $32,000. Geneos Wealth Management Inc. increased its holdings in Canadian Natural Resources by 47.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,644 shares of the oil and gas producer’s stock worth $51,000 after acquiring an additional 528 shares during the last quarter. Finally, Brown Brothers Harriman & Co. raised its stake in Canadian Natural Resources by 885.9% in the 4th quarter. Brown Brothers Harriman & Co. now owns 2,238 shares of the oil and gas producer’s stock valued at $76,000 after acquiring an additional 2,011 shares during the period. Institutional investors own 74.03% of the company’s stock.

More Canadian Natural Resources News

Here are the key news stories impacting Canadian Natural Resources this week:

• Positive Sentiment: Q4 beat and record output: CNQ reported quarterly results that beat EPS forecasts and achieved record production (about 1.66 million barrels per day), which investors view as evidence of operational strength and resilience to higher oil prices. Article Title
• Positive Sentiment: Dividend hike & capital-allocation update: The board raised the quarterly dividend ~6% to $0.625 and signaled a framework to return more cash to shareholders at higher debt thresholds — a direct shareholder-friendly action supporting the dividend yield. Article Title
• Positive Sentiment: Oil-price tailwind: A stronger crude market (WTI above ~$75) keeps CNQ and other large producers in focus for additional upside as higher commodity prices boost cash flow. Article Title
• Neutral Sentiment: Mixed financials and cash dynamics: Third‑party summaries show revenue up modestly and operating cash flow improving, but operating profit and net income fell year‑over‑year and diluted EPS declined — a mixed signal for near‑term valuation. Article Title
• Neutral Sentiment: Analyst coverage and targets: Recent analyst updates and institutional activity are notable (several buy/outperform ratings and a median multi-analyst target around ~$55), which may influence sentiment but already appear partially priced in. Article Title
• Negative Sentiment: Project pause over policy uncertainty: CNQ paused an $8.25 billion oil‑sands expansion, citing carbon policy uncertainty — a direct hit to growth visibility and potential long‑term production upside. Article Title
• Negative Sentiment: Profitability pressure: While cash flow improved, operating profit and net income were materially lower YoY in some reports — a reminder that higher revenue and production don’t fully offset rising costs and elevated capex in the quarter. Article Title

Analyst Ratings Changes

Several research firms have recently commented on CNQ. The Goldman Sachs Group set a $35.00 price objective on Canadian Natural Resources and gave the company a “buy” rating in a report on Friday, January 2nd. Royal Bank Of Canada boosted their price target on shares of Canadian Natural Resources from $61.00 to $65.00 and gave the company an “outperform” rating in a research note on Friday. Zacks Research downgraded shares of Canadian Natural Resources from a “strong-buy” rating to a “hold” rating in a report on Friday, December 19th. Wall Street Zen upgraded shares of Canadian Natural Resources from a “sell” rating to a “hold” rating in a report on Saturday, January 31st. Finally, Evercore downgraded shares of Canadian Natural Resources from an “outperform” rating to an “in-line” rating in a research report on Tuesday, January 6th. Five analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, Canadian Natural Resources presently has an average rating of “Hold” and a consensus target price of $50.00.

About Canadian Natural Resources

Canadian Natural Resources Limited (NYSE: CNQ) is a Calgary-based independent oil and natural gas exploration and production company. Established in the early 1970s and publicly listed in Canada and the United States, the company is principally engaged in the exploration, development, production, and marketing of crude oil, natural gas and natural gas liquids. Its asset base spans conventional and unconventional reservoirs and includes oil sands mining and in-situ thermal projects, midstream processing and upgrading capacity, and related field operations.

The company’s operations are concentrated in Western Canada, where it develops heavy crude, bitumen from oil sands and conventional light crude and natural gas resources.