#Canadian Natural Resources Reports Q4 2025 Results
Canadian Natural Resources Limited (TSX: CNQ / NYSE: CNQ) reported record annual production of approximately 1.57 million barrels of oil equivalent per day (BOE/d) for 2025 on March 5, 2026, while announcing a 6.4% quarterly dividend increase and raising its 2026 production outlook following a string of acquisitions.
#Dividend Raised for 26th Consecutive Year
The board of directors approved an increase to the quarterly cash dividend to $0.625 per common share from $0.5875, payable April 7, 2026 to shareholders of record as of March 20, 2026. The annualized rate moves to $2.50 per share. The increase extends the company's consecutive annual dividend growth streak to 26 years, with a compound annual growth rate of 20% over that period, according to the company.
#Full-Year 2025 Financial Results
Adjusted net earnings from operations — a non-GAAP measure — totaled $7.4 billion, or $3.56 per diluted share, roughly in line with $7.4 billion in 2024. Adjusted funds flow reached $15.5 billion, or $7.39 per diluted share. Net earnings on a reported basis were approximately $10.8 billion, a figure that included non-cash accounting gains from an asset swap and non-cash reclamation charges related to North Sea and Offshore Africa operations.
The company returned approximately $9.0 billion to shareholders in 2025 through $4.9 billion in dividends, $1.4 billion in share repurchases covering roughly 33.5 million shares, and $2.7 billion in net debt reduction. Net debt fell to approximately $15.9 billion at year-end from $18.7 billion a year earlier. Liquidity stood at approximately $6.3 billion, with Debt to Adjusted EBITDA at 0.7x.
The company's WTI breakeven price, calculated as the oil price at which adjusted funds flow equals maintenance capital plus dividends, remains in the low-to-mid US$40 per barrel range by the company's own methodology.
#Production Records and Acquisitions
The 15% year-over-year production increase reflected both organic growth and several acquisitions completed during the year, including Palliser Block assets in southern Alberta, liquids-rich Montney assets near Grande Prairie, and the consolidation of the Athabasca Oil Sands Project (AOSP) to 100% ownership through an asset swap with Shell that closed November 1, 2025. Oil Sands Mining and Upgrading — which produces zero-decline synthetic crude oil — averaged a record 565,102 bbl/d in 2025, up 20% from 2024, at an upgrader utilization rate of 100%.
In Q4 2025 alone, production reached a quarterly record of approximately 1,659,000 BOE/d, with Oil Sands Mining and Upgrading hitting 620,000 bbl/d at 105% upgrader utilization.
#2026 Guidance and Capital Changes
Following a subsequent acquisition in the Peace River area of Alberta for approximately $765 million, Canadian Natural raised its 2026 production guidance to 1,615,000–1,665,000 BOE/d from a prior range of 1,590,000–1,650,000 BOE/d. Operating capital expenditures were reduced by approximately $310 million to $5.99 billion.
A portion of that reduction reflects the deferral of an approximately $8.25 billion Jackpine mine expansion at Albian. The company stated the project is on hold due to the absence of finalized government policy on carbon pricing and methane regulation, which it said creates uncertainty for long-term capital commitments. The company said it will reassess the project once regulatory clarity improves.
#Reserves and Cash Flow Policy
Year-end 2025 total proved reserves grew 4% to 15.91 billion BOE, with a reserves life index of 31 years. Total proved plus probable reserves rose 3% to 20.75 billion BOE. Approximately 73% of proved reserves are classified as long-life, low-decline assets. Reserves were evaluated independently by Sproule International Limited and GLJ Ltd. under NI 51-101 standards.
The board also revised its free cash flow allocation policy effective January 1, 2026, raising the net debt threshold at which shareholder returns via share repurchases accelerate to 75% of free cash flow — from a prior net debt level of $15 billion to $16 billion. The board separately renewed its Normal Course Issuer Bid on March 4, 2026, permitting repurchase of up to 10% of the public float through March 12, 2027, subject to TSX approval.