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Canadian Natural Q3 Earnings Beat Estimates, Expenses Increase Y/Y
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Key Takeaways
CNQ's Q3 adjusted earnings per share of 62 cents beat estimates but fell from 71 cents a year ago.
Revenues rose to $6.9B from $6.5B on higher output, with total production up 18.9% year over year.
CNQ hiked the 2025 capital forecast to C$6.7B and boosted production targets amid strong shareholder returns.
Canadian Natural Resources Limited (CNQ - Free Report) reported third-quarter 2025 adjusted earnings per share of 62 cents, which beat the Zacks Consensus Estimate of 54 cents. However, the bottom line decreased from 71 cents in the year-ago quarter. The underperformance can be attributed to lower realized oil and natural gas liquid (NGL) prices and rising expenses.
Total revenues of $6.9 billion increased from $6.5 billion in the prior-year period, fueled by increased production volumes. Additionally, the figure beat the Zacks Consensus Estimate of $6.7 billion.
Canadian Natural Resources Limited Price, Consensus and EPS Surprise
On Nov. 6, CNQ’s board of directors approved its quarterly cash dividend of 58.75 Canadian cents per common share. The dividend will be payable on Jan. 6, 2026, to its shareholders of record as of the close of business on Dec. 12, 2025. This marks the company's continued commitment to returning value to its shareholders.
This commitment is further evidenced by CNQ's impressive track record of growing and sustaining its dividend for 25 years, boasting a remarkable 21% annual growth rate over that period.
In the third quarter of 2025, the company returned around C$1.5 billion directly to its shareholders. This included C$1.2 billion in dividends and C$0.3 billion from the repurchase and cancellation of 7.2 million common shares, purchased at a weighted average price of C$43.12 per share.
The oil and gas exploration and production company delivered strong financial results in the third quarter of 2025, highlighted by net earnings of approximately C$0.6 billion. Furthermore, CNQ reported robust adjusted net earnings from operations of approximately C$1.8 billion. This strong performance was also reflected in the company's cash flow. Cash flows from operating activities totaled approximately C$3.9 billion and adjusted funds flow also reached approximately C$3.9 billion.
Up to Nov. 5, 2025, the Calgary-based company delivered significant returns to its shareholders, amounting to approximately C$6.2 billion. This total was composed of C$4.9 billion in dividends and C$1.3 billion through the repurchase and cancellation of 29.6 million common shares.
CNQ’s Q3 Production & Prices
Canadian Natural reported quarterly production of 1,620,261 barrels of oil equivalent per day (Boe/d), up 18.9% from the prior-year quarter’s level. Moreover, the figure beat our model projection of 1,556,398 Boe/d.
The oil and NGL output (accounting for around 75% of total volumes) increased to 1,175,604 barrels per day (Bbl/d) from 1,021,572 Bbl/d recorded a year ago. Additionally, the figure beat our model projection of 1,130,265 Bbl/d.
Natural gas volumes totaled 2,668 million cubic feet per day (MMcf/d), up 30.2% from the 2,049 MMcf/d recorded in the year-ago period. Additionally, the figure beat our model projection of 2,557 MMcf/d.
Natural gas production in North America reached 2,658 MMcf/d in the third quarter of 2025 compared with 2,039 MMcf/d in the third quarter of 2024. However, the figure beat our model projection of 2,545 MMcf/d.
Exploration and production activities in North America, not including thermal in situ methods, reported an average output of 309,873 Bbl/d. This indicates a 35.8% year-over-year increase during this quarter. Meanwhile, thermal in situ production volume increased to 274,752 Bbl/d from 271,551 Bbl/d recorded a year ago. However, the figure missed our model projection of 289,000 Bbl/d.
The Oil Sands Mining and Upgrading operations in North America reported an average output of 581,136 Bbl/d of synthetic crude oil. This represented a 16.8% increase from the prior-year quarter’s levels of 497,656 Bbl/d.
The realized natural gas price increased 19.2% to C$1.49 per thousand cubic feet from the year-ago level of C$1.25. The realized oil and NGL price decreased 19.7% to C$72.57 per barrel from C$79.15 in the third quarter of 2024.
The company also achieved industry-leading annual operating costs for Oil Sands Mining and Upgrading, amounting to C$21 per barrel in the third quarter of 2025.
After quarter-end, Canadian Natural completed the AOSP swap with Shell, gaining full ownership of the Albian oil sands mines and an 80% stake in the Scotford Upgrader. The deal adds 31,000 bbl/d of stable bitumen output and boosts long-term cash flow and operational efficiency.
CNQ’s Q3 Costs & Capital Expenditure
Total expenses in the quarter were C$9 billion, up from C$6.1 billion recorded in the year-ago period. The increase was mainly caused by higher Depletion, depreciation and amortization expense, which more than doubled during the quarter to C$3.2 billion, and partly due to an increase in production and blending and feedstock expense.
Capital expenditure totaled C$2.1 billion compared with C$1.3 billion a year ago.
CNQ’s Balance Sheet
As of Sept. 30, 2025, CNQ had cash and cash equivalents worth C$113 million and long-term debt of approximately C$16.4 billion, with a debt to capitalization of about 28.9%.
CNQ’s 2025 Guidance
On Nov. 3, 2025, CNQ issued its updated 2025 guidance and increased its 2025 capital forecast to C$6.7 billion. For 2025, the company also increased its production target in the range of 1,560 to 1,580 thousand barrels of oil equivalent per day.
For 2025, the natural gas production is expected to range between 2,535 and 2,575 MMcf/d and total liquids are projected to range between 1,137 and 1,151 Mbbl/d.
While we have discussed CNQ’s third-quarter results in detail, let us take a look at three other key reports in this space.
Alberta-based integrated energy company Suncor Energy Inc. (SU - Free Report) reported third-quarter 2025 adjusted operating earnings of $1.07 per share, which beat the Zacks Consensus Estimate of 85 cents. This outperformance can be attributed to strong production growth in its upstream segment. However, the bottom line declined marginally from the year-ago quarter’s reported figure of $1.08 due to lower upstream price realizations.
Operating revenues of $9.2 billion beat the Zacks Consensus Estimate by 11.1%, primarily driven by increased sales volumes in both the upstream and downstream segments. However, the top line decreased approximately 3.9% year over year.
As of Sept. 30, 2025, Suncor Energy had cash and cash equivalents of C$2.9 billion and long-term debt of C$8.6 billion. Its debt-to-capitalization was 16%.
The Denver, CO-based oil and gas exploration and production company, Ovintiv Inc. (OVV - Free Report) , reported third-quarter 2025 adjusted earnings per share of $1.03, which beat the Zacks Consensus Estimate of 97 cents. The outperformance was driven by higher plant condensate production volumes and higher average realized natural gas prices. However, the bottom line decreased from the year-ago level of $1.85.
OVV’s total revenues of $2.1 billion decreased 11% from the year-ago quarter’s figure, driven by lower oil production volumes and lower average realized oil and plant condensate prices. However, the top line beat the Zacks Consensus Estimate by 6.1%.
As of Sept. 30, the company had cash and cash equivalents worth $25 million and long-term debt of $4.4 billion. Its debt-to-capitalization was 30%.
The Calgary-based integrated oil and gas company, Imperial Oil Limited (IMO - Free Report) , reported third-quarter 2025 adjusted earnings per share of $1.57, which beat the Zacks Consensus Estimate of $1.44. However, the bottom line decreased from the year-ago quarter’s $1.71. This decrease was due to lower upstream price realizations, partly offset by higher production volumes.
Revenues of $8.8 billion missed the Zacks Consensus Estimate of $11.1 billion. The top line also decreased from the year-ago quarter’s level of $9.7 billion due to weak performance in both the Upstream and Downstream segments.
As of Sept. 30, Imperial Oil had cash and cash equivalents of C$1.9 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 14.4%.
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Canadian Natural Q3 Earnings Beat Estimates, Expenses Increase Y/Y
Key Takeaways
Canadian Natural Resources Limited (CNQ - Free Report) reported third-quarter 2025 adjusted earnings per share of 62 cents, which beat the Zacks Consensus Estimate of 54 cents. However, the bottom line decreased from 71 cents in the year-ago quarter. The underperformance can be attributed to lower realized oil and natural gas liquid (NGL) prices and rising expenses.
Total revenues of $6.9 billion increased from $6.5 billion in the prior-year period, fueled by increased production volumes. Additionally, the figure beat the Zacks Consensus Estimate of $6.7 billion.
Canadian Natural Resources Limited Price, Consensus and EPS Surprise
Canadian Natural Resources Limited price-consensus-eps-surprise-chart | Canadian Natural Resources Limited Quote
On Nov. 6, CNQ’s board of directors approved its quarterly cash dividend of 58.75 Canadian cents per common share. The dividend will be payable on Jan. 6, 2026, to its shareholders of record as of the close of business on Dec. 12, 2025. This marks the company's continued commitment to returning value to its shareholders.
This commitment is further evidenced by CNQ's impressive track record of growing and sustaining its dividend for 25 years, boasting a remarkable 21% annual growth rate over that period.
In the third quarter of 2025, the company returned around C$1.5 billion directly to its shareholders. This included C$1.2 billion in dividends and C$0.3 billion from the repurchase and cancellation of 7.2 million common shares, purchased at a weighted average price of C$43.12 per share.
The oil and gas exploration and production company delivered strong financial results in the third quarter of 2025, highlighted by net earnings of approximately C$0.6 billion. Furthermore, CNQ reported robust adjusted net earnings from operations of approximately C$1.8 billion. This strong performance was also reflected in the company's cash flow. Cash flows from operating activities totaled approximately C$3.9 billion and adjusted funds flow also reached approximately C$3.9 billion.
Up to Nov. 5, 2025, the Calgary-based company delivered significant returns to its shareholders, amounting to approximately C$6.2 billion. This total was composed of C$4.9 billion in dividends and C$1.3 billion through the repurchase and cancellation of 29.6 million common shares.
CNQ’s Q3 Production & Prices
Canadian Natural reported quarterly production of 1,620,261 barrels of oil equivalent per day (Boe/d), up 18.9% from the prior-year quarter’s level. Moreover, the figure beat our model projection of 1,556,398 Boe/d.
The oil and NGL output (accounting for around 75% of total volumes) increased to 1,175,604 barrels per day (Bbl/d) from 1,021,572 Bbl/d recorded a year ago. Additionally, the figure beat our model projection of 1,130,265 Bbl/d.
Natural gas volumes totaled 2,668 million cubic feet per day (MMcf/d), up 30.2% from the 2,049 MMcf/d recorded in the year-ago period. Additionally, the figure beat our model projection of 2,557 MMcf/d.
Natural gas production in North America reached 2,658 MMcf/d in the third quarter of 2025 compared with 2,039 MMcf/d in the third quarter of 2024. However, the figure beat our model projection of 2,545 MMcf/d.
Exploration and production activities in North America, not including thermal in situ methods, reported an average output of 309,873 Bbl/d. This indicates a 35.8% year-over-year increase during this quarter. Meanwhile, thermal in situ production volume increased to 274,752 Bbl/d from 271,551 Bbl/d recorded a year ago. However, the figure missed our model projection of 289,000 Bbl/d.
The Oil Sands Mining and Upgrading operations in North America reported an average output of 581,136 Bbl/d of synthetic crude oil. This represented a 16.8% increase from the prior-year quarter’s levels of 497,656 Bbl/d.
The realized natural gas price increased 19.2% to C$1.49 per thousand cubic feet from the year-ago level of C$1.25. The realized oil and NGL price decreased 19.7% to C$72.57 per barrel from C$79.15 in the third quarter of 2024.
The company also achieved industry-leading annual operating costs for Oil Sands Mining and Upgrading, amounting to C$21 per barrel in the third quarter of 2025.
After quarter-end, Canadian Natural completed the AOSP swap with Shell, gaining full ownership of the Albian oil sands mines and an 80% stake in the Scotford Upgrader. The deal adds 31,000 bbl/d of stable bitumen output and boosts long-term cash flow and operational efficiency.
CNQ’s Q3 Costs & Capital Expenditure
Total expenses in the quarter were C$9 billion, up from C$6.1 billion recorded in the year-ago period. The increase was mainly caused by higher Depletion, depreciation and amortization expense, which more than doubled during the quarter to C$3.2 billion, and partly due to an increase in production and blending and feedstock expense.
Capital expenditure totaled C$2.1 billion compared with C$1.3 billion a year ago.
CNQ’s Balance Sheet
As of Sept. 30, 2025, CNQ had cash and cash equivalents worth C$113 million and long-term debt of approximately C$16.4 billion, with a debt to capitalization of about 28.9%.
CNQ’s 2025 Guidance
On Nov. 3, 2025, CNQ issued its updated 2025 guidance and increased its 2025 capital forecast to C$6.7 billion. For 2025, the company also increased its production target in the range of 1,560 to 1,580 thousand barrels of oil equivalent per day.
For 2025, the natural gas production is expected to range between 2,535 and 2,575 MMcf/d and total liquids are projected to range between 1,137 and 1,151 Mbbl/d.
CNQ currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Important Earnings at a Glance
While we have discussed CNQ’s third-quarter results in detail, let us take a look at three other key reports in this space.
Alberta-based integrated energy company Suncor Energy Inc. (SU - Free Report) reported third-quarter 2025 adjusted operating earnings of $1.07 per share, which beat the Zacks Consensus Estimate of 85 cents. This outperformance can be attributed to strong production growth in its upstream segment. However, the bottom line declined marginally from the year-ago quarter’s reported figure of $1.08 due to lower upstream price realizations.
Operating revenues of $9.2 billion beat the Zacks Consensus Estimate by 11.1%, primarily driven by increased sales volumes in both the upstream and downstream segments. However, the top line decreased approximately 3.9% year over year.
As of Sept. 30, 2025, Suncor Energy had cash and cash equivalents of C$2.9 billion and long-term debt of C$8.6 billion. Its debt-to-capitalization was 16%.
The Denver, CO-based oil and gas exploration and production company, Ovintiv Inc. (OVV - Free Report) , reported third-quarter 2025 adjusted earnings per share of $1.03, which beat the Zacks Consensus Estimate of 97 cents. The outperformance was driven by higher plant condensate production volumes and higher average realized natural gas prices. However, the bottom line decreased from the year-ago level of $1.85.
OVV’s total revenues of $2.1 billion decreased 11% from the year-ago quarter’s figure, driven by lower oil production volumes and lower average realized oil and plant condensate prices. However, the top line beat the Zacks Consensus Estimate by 6.1%.
As of Sept. 30, the company had cash and cash equivalents worth $25 million and long-term debt of $4.4 billion. Its debt-to-capitalization was 30%.
The Calgary-based integrated oil and gas company, Imperial Oil Limited (IMO - Free Report) , reported third-quarter 2025 adjusted earnings per share of $1.57, which beat the Zacks Consensus Estimate of $1.44. However, the bottom line decreased from the year-ago quarter’s $1.71. This decrease was due to lower upstream price realizations, partly offset by higher production volumes.
Revenues of $8.8 billion missed the Zacks Consensus Estimate of $11.1 billion. The top line also decreased from the year-ago quarter’s level of $9.7 billion due to weak performance in both the Upstream and Downstream segments.
As of Sept. 30, Imperial Oil had cash and cash equivalents of C$1.9 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 14.4%.