(Oil Price) – Canada’s largest oil and gas producer, Canadian Natural Resources (NYSE: CNQ), reported lower adjusted net earnings from operations for the third quarter compared to a year earlier amid plunging natural gas prices in North America and lower international crude oil prices.
Canadian Natural said on Thursday that its adjusted net earnings from operations for the third quarter stood at US$1.5 billion (C$2.1 billion), down compared with US$2 billion (C$2.85 billion) for the third quarter of 2023.
The oil and gas producer attributed the decline to lower crude oil and NGLs sales volumes and netbacks in North America, lower natural gas pricing in North America, and lower realized prices for its synthetic crude from the oil sands production.
Natural gas prices in Canada and the United States continued to decline as a result of high storage levels in 2024, the company’s management said in the discussion of the third-quarter results.
Third-quarter natural gas production dropped by 5% year-over-year, while the realized natural gas price slumped by 56%. Crude oil and NGL realized prices fell by 10%, while realized sales prices from the oil sands production fell by 7% in the third quarter from a year earlier.
“Although inflationary pressures are easing, the Company has experienced and may continue to experience inflationary pressures on its operating and capital expenditures in addition to higher than normal fluctuations in commodity prices and interest rates,” Canadian Natural Resources said.
Due to low natural gas prices, Canadian Natural now targets to drill a total of 74 net natural gas wells in 2024. This number will be 17 fewer wells than targeted in the original 2024 budget, the company said.
After the Q3 reporting period ended, Canadian Natural agreed in early October to buy oil sands and shale assets in Canada from U.S. supermajor Chevron in a $6.5 billion cash deal.
By Charles Kennedy for Oilprice.com
