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CNQ Q3 Earnings Beat on Strong Pricing and Record Thermal Output
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Key Takeaways
CNQ's Q3 adjusted EPS of $1.18 beat estimates by 12.38%, while revenue topped projections by 10.25%.
Record thermal output rose 9.1% to 299,632 bpd, while conventional liquids production advanced 15.7%.
CNQ generated C$2.10B in free cash flow and returned C$2.9B to shareholders via dividends and buybacks.
Canadian Natural Resources Limited (CNQ - Free Report) reported third-quarter 2026 adjusted earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.05 by 12.38% aided by stronger realized oil prices and conventional liquids production.
Revenues of $9.14 billion surpassed the Zacks Consensus Estimate of $8.3 billion by 10.25%. Total production averaged 1,651,720 barrels of oil equivalent per day (BOE/d), up 1.9%, despite a planned Horizon turnaround.
Canadian Natural Resources Limited Price, Consensus and EPS Surprise
Crude oil and natural gas liquids (NGLs) product sales rose to C$14.27 billion from C$10.47 billion a year ago. Natural gas sales climbed to C$531 million from C$399 million. These figures represent product sales before royalties.
Liquids production reached 1,217,178 barrels per day, up 3.5% year over year. Natural gas volumes eased to 2,607 million cubic feet per day (MMcf/d) from 2,668 MMcf/d, reflecting declines in North American gas output.
Realized exploration and production oil and NGL prices increased to C$95.93 per barrel from C$72.57. Realized natural gas prices improved to C$2.09 per thousand cubic feet from C$1.49. Strong synthetic crude pricing also helped, with a $6.65-per-barrel premium to West Texas Intermediate crude.
Canadian Natural's Oil Sands and Conventional Operations
North American exploration and production segment revenue rose to C$6.22 billion from C$4.41 billion. Oil Sands Mining and Upgrading revenue advanced to C$5.78 billion from C$4.47 billion, reflecting higher pricing despite reduced synthetic crude volumes.
Record thermal in situ output averaged 299,632 barrels per day, up 9.1% from a year ago, supported by new steam-assisted gravity drainage pads at Pike and production additions at Primrose. Conventional North American liquids production, excluding thermal operations, climbed 15.7% to a record 358,484 barrels per day.
Mining and upgrading production fell to 543,089 barrels per day from 581,136 barrels per day as the scheduled Horizon maintenance reduced quarterly volumes. International crude production, meanwhile, increased 62% following the return of Baobab production in Offshore Africa.
CNQ's Q3 Costs and Profitability
Total expenses declined to C$8.89 billion from C$9.03 billion a year earlier. Production expenses, however, increased to C$2.55 billion from C$2.22 billion, while blending and feedstock costs rose to C$2.64 billion from C$1.97 billion.
Oil Sands Mining and Upgrading production costs averaged C$25.80 per barrel, up from C$21.29, primarily due to reduced production during Horizon maintenance. Thermal in situ operating costs declined to C$10.19 per barrel from C$10.35.
Adjusted net earnings from operations climbed to C$3.43 billion from C$1.80 billion. Reported net earnings reached C$3.00 billion, versus C$600 million a year earlier, when results included a substantial North Sea abandonment-related charge.
Canadian Natural's Cash Flow and Balance Sheet
Cash flows from operating activities reached C$7.01 billion, compared with C$3.94 billion a year earlier. Adjusted funds flow rose to C$5.52 billion from C$3.92 billion, while free cash flow increased to C$2.10 billion from C$379 million.
Net capital expenditures totaled C$1.88 billion, down from C$2.12 billion in the year-ago quarter. At Sept. 30, cash and cash equivalents stood at C$4.52 billion, and net debt had fallen to C$12.12 billion from C$14.53 billion at June 30. Debt to book capitalization improved to 20.5%.
CNQ's Shareholder Returns Gain Momentum
The Zacks Rank #1 (Strong Buy) company returned approximately C$2.9 billion directly to shareholders during the third quarter, comprising C$1.3 billion in dividends and C$1.6 billion in share repurchases. Having reached its C$13 billion net debt threshold, the company now targets 100% of free cash flow for buybacks.
The board declared a quarterly dividend of 62.5 Canadian cents per common share, payable Jan. 5, 2027, to shareholders of record Dec. 15, 2026. CNQ also targets C$800 million in monthly repurchases in both November and December, supported by its 26-year record of consecutive dividend increases.
Canadian Natural's Outlook and Growth Projects
Horizon completed its scheduled turnaround Oct. 6, seven days ahead of budget, adding an expected 23,000 barrels per day of fourth-quarter synthetic crude production compared with the original plan. Following the turnaround, mining and upgrading output has averaged approximately 640,000 barrels per day.
Management is targeting a three-year interval between Horizon turnarounds, potentially increasing average production capacity by 5,000 barrels per day. The company also targets full-year 2026 natural gas production of 2,595-2,635 MMcf/d, with additional thermal pads at Primrose and Kirby scheduled for 2027.
Important Earnings at a Glance
While we have discussed CRGY’s third-quarter results in detail, let us take a look at other key reports in this space.
Kinder Morgan, Inc. (KMI - Free Report) reported third-quarter 2026 adjusted earnings of 35 cents per share, beating the Zacks Consensus Estimate of 33 cents by 6.1%. Earnings increased 20.7% from 29 cents in the year-ago quarter.
Revenues increased 9.3% year over year to $4.53 billion from $4.15 billion. Revenues surpassed the consensus estimate of $4.38 billion by 3.4%.
Strong quarterly results benefited from higher natural gas transportation and gathering volumes, alongside improved contributions from the Terminals and CO2 businesses.
As of Sept. 30, 2026, cash and cash equivalents totaled $918 million, compared with $63 million at 2025-end. Net debt stood at $32.23 billion.
Marathon Petroleum Corporation (MPC - Free Report) reported third-quarter 2026 adjusted earnings of $26.93 per share, beating the Zacks Consensus Estimate of $25.74 by 4.62%. The bottom line surged 794.7% from the year-ago adjusted earnings of $3.01 per share, driven primarily by stronger refining margins and favorable market crack spreads.
The Findlay, OH-based refiner reported revenues of $56.49 billion, surpassing the consensus estimate of $33.56 billion by 68.3%. Revenues increased 57.6% year over year. Refining capacity utilization reached 100%, compared with 95% in the prior-year quarter.
The company had cash, cash equivalents and short-term investments of approximately $13.6 billion, including $1.3 billion held at MPLX.
NOV Inc. (NOV - Free Report) reported third-quarter 2026 earnings of 25 cents per share, beating the Zacks Consensus Estimate of 24 cents by 4.17%. The bottom line increased 127.3% from the year-ago quarter's 11 cents, supported by improved operational execution and cost efficiencies.
The oil and gas equipment and services company's revenues of $2.23 billion surpassed the Zacks Consensus Estimate of $2.2 billion by 1.2%. Revenues increased 2.3% year over year, driven by growth in Energy Products and Services. Energy Equipment's capital equipment bookings totaled $577 million, representing a book-to-bill ratio of 91%.
As of Sept. 30, 2026, NOV had cash and cash equivalents of $1.06 billion and total debt of $1.71 billion. The company also had $1.5 billion available under its revolving credit facility.
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CNQ Q3 Earnings Beat on Strong Pricing and Record Thermal Output
Key Takeaways
Canadian Natural Resources Limited (CNQ - Free Report) reported third-quarter 2026 adjusted earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.05 by 12.38% aided by stronger realized oil prices and conventional liquids production.
Revenues of $9.14 billion surpassed the Zacks Consensus Estimate of $8.3 billion by 10.25%. Total production averaged 1,651,720 barrels of oil equivalent per day (BOE/d), up 1.9%, despite a planned Horizon turnaround.
Canadian Natural Resources Limited Price, Consensus and EPS Surprise
Canadian Natural Resources Limited price-consensus-eps-surprise-chart | Canadian Natural Resources Limited Quote
CNQ's Q3 Production and Realized Prices
Crude oil and natural gas liquids (NGLs) product sales rose to C$14.27 billion from C$10.47 billion a year ago. Natural gas sales climbed to C$531 million from C$399 million. These figures represent product sales before royalties.
Liquids production reached 1,217,178 barrels per day, up 3.5% year over year. Natural gas volumes eased to 2,607 million cubic feet per day (MMcf/d) from 2,668 MMcf/d, reflecting declines in North American gas output.
Realized exploration and production oil and NGL prices increased to C$95.93 per barrel from C$72.57. Realized natural gas prices improved to C$2.09 per thousand cubic feet from C$1.49. Strong synthetic crude pricing also helped, with a $6.65-per-barrel premium to West Texas Intermediate crude.
Canadian Natural's Oil Sands and Conventional Operations
North American exploration and production segment revenue rose to C$6.22 billion from C$4.41 billion. Oil Sands Mining and Upgrading revenue advanced to C$5.78 billion from C$4.47 billion, reflecting higher pricing despite reduced synthetic crude volumes.
Record thermal in situ output averaged 299,632 barrels per day, up 9.1% from a year ago, supported by new steam-assisted gravity drainage pads at Pike and production additions at Primrose. Conventional North American liquids production, excluding thermal operations, climbed 15.7% to a record 358,484 barrels per day.
Mining and upgrading production fell to 543,089 barrels per day from 581,136 barrels per day as the scheduled Horizon maintenance reduced quarterly volumes. International crude production, meanwhile, increased 62% following the return of Baobab production in Offshore Africa.
CNQ's Q3 Costs and Profitability
Total expenses declined to C$8.89 billion from C$9.03 billion a year earlier. Production expenses, however, increased to C$2.55 billion from C$2.22 billion, while blending and feedstock costs rose to C$2.64 billion from C$1.97 billion.
Oil Sands Mining and Upgrading production costs averaged C$25.80 per barrel, up from C$21.29, primarily due to reduced production during Horizon maintenance. Thermal in situ operating costs declined to C$10.19 per barrel from C$10.35.
Adjusted net earnings from operations climbed to C$3.43 billion from C$1.80 billion. Reported net earnings reached C$3.00 billion, versus C$600 million a year earlier, when results included a substantial North Sea abandonment-related charge.
Canadian Natural's Cash Flow and Balance Sheet
Cash flows from operating activities reached C$7.01 billion, compared with C$3.94 billion a year earlier. Adjusted funds flow rose to C$5.52 billion from C$3.92 billion, while free cash flow increased to C$2.10 billion from C$379 million.
Net capital expenditures totaled C$1.88 billion, down from C$2.12 billion in the year-ago quarter. At Sept. 30, cash and cash equivalents stood at C$4.52 billion, and net debt had fallen to C$12.12 billion from C$14.53 billion at June 30. Debt to book capitalization improved to 20.5%.
CNQ's Shareholder Returns Gain Momentum
The Zacks Rank #1 (Strong Buy) company returned approximately C$2.9 billion directly to shareholders during the third quarter, comprising C$1.3 billion in dividends and C$1.6 billion in share repurchases. Having reached its C$13 billion net debt threshold, the company now targets 100% of free cash flow for buybacks.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The board declared a quarterly dividend of 62.5 Canadian cents per common share, payable Jan. 5, 2027, to shareholders of record Dec. 15, 2026. CNQ also targets C$800 million in monthly repurchases in both November and December, supported by its 26-year record of consecutive dividend increases.
Canadian Natural's Outlook and Growth Projects
Horizon completed its scheduled turnaround Oct. 6, seven days ahead of budget, adding an expected 23,000 barrels per day of fourth-quarter synthetic crude production compared with the original plan. Following the turnaround, mining and upgrading output has averaged approximately 640,000 barrels per day.
Management is targeting a three-year interval between Horizon turnarounds, potentially increasing average production capacity by 5,000 barrels per day. The company also targets full-year 2026 natural gas production of 2,595-2,635 MMcf/d, with additional thermal pads at Primrose and Kirby scheduled for 2027.
Important Earnings at a Glance
While we have discussed CRGY’s third-quarter results in detail, let us take a look at other key reports in this space.
Kinder Morgan, Inc. (KMI - Free Report) reported third-quarter 2026 adjusted earnings of 35 cents per share, beating the Zacks Consensus Estimate of 33 cents by 6.1%. Earnings increased 20.7% from 29 cents in the year-ago quarter.
Revenues increased 9.3% year over year to $4.53 billion from $4.15 billion. Revenues surpassed the consensus estimate of $4.38 billion by 3.4%.
Strong quarterly results benefited from higher natural gas transportation and gathering volumes, alongside improved contributions from the Terminals and CO2 businesses.
As of Sept. 30, 2026, cash and cash equivalents totaled $918 million, compared with $63 million at 2025-end. Net debt stood at $32.23 billion.
Marathon Petroleum Corporation (MPC - Free Report) reported third-quarter 2026 adjusted earnings of $26.93 per share, beating the Zacks Consensus Estimate of $25.74 by 4.62%. The bottom line surged 794.7% from the year-ago adjusted earnings of $3.01 per share, driven primarily by stronger refining margins and favorable market crack spreads.
The Findlay, OH-based refiner reported revenues of $56.49 billion, surpassing the consensus estimate of $33.56 billion by 68.3%. Revenues increased 57.6% year over year. Refining capacity utilization reached 100%, compared with 95% in the prior-year quarter.
The company had cash, cash equivalents and short-term investments of approximately $13.6 billion, including $1.3 billion held at MPLX.
NOV Inc. (NOV - Free Report) reported third-quarter 2026 earnings of 25 cents per share, beating the Zacks Consensus Estimate of 24 cents by 4.17%. The bottom line increased 127.3% from the year-ago quarter's 11 cents, supported by improved operational execution and cost efficiencies.
The oil and gas equipment and services company's revenues of $2.23 billion surpassed the Zacks Consensus Estimate of $2.2 billion by 1.2%. Revenues increased 2.3% year over year, driven by growth in Energy Products and Services. Energy Equipment's capital equipment bookings totaled $577 million, representing a book-to-bill ratio of 91%.
As of Sept. 30, 2026, NOV had cash and cash equivalents of $1.06 billion and total debt of $1.71 billion. The company also had $1.5 billion available under its revolving credit facility.