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January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL)

Canadian Natural Resources Limited (CNRL) · Jan 21, 2014 · 80 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 1
    Corporate Presentation January 2014
  2. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 2
    SNAPSHOT 2012 2013F 2014B Cash flow(1) (C$ million) $6,013 $7,400 - $7,800 $8,500 - $8,900 Per share ? basic(1) (C$) $5.48 $6.80 - $7.20 $7.80 - $8.20 Capital expenditures (C$ million)(2) $6,308 $7,175 $7,740 - $8,140 Dividend…
  3. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 3
    (1)Based upon the following actual and average strip pricing as at November 2013, including the impact of hedging. (2)2014 Budgeted capital is C$7,740 million, with the potential for an additional $400 million should favorable…
  4. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 4
    Who is Canadian Natural? ? Canadian based E&P company with international exposure ? 663-704 MBOE/d ? 2013F ? ~75% crude oil weighted ? 711-757 MBOE/d ? 2014B ? ~75% crude oil weighted ? Returns focused ? Major oil sands player ?…
  5. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 5
    CNQ The Sustainable Free Cash Flow Independent ? Largest reserve base in peer group ? Balanced ? Real value ? Delivering strong free cash flow ? Very large resources base to develop ? Long life, low decline ? Consistent capital…
  6. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 6
    CNQ Size of Canadian Natural Reserve Base 2012 1P Reserves After Royalties Significant Value to Unlock Note: Per BMO Capital Markets Research - 2012 Oil & Gas Global Cost Study. Peers include: APA, APC, EOG, CVE, CHK, DVN, ECA, HSE,…
  7. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 7
    CNQ Size of Canadian Natural Reserve Base 2012 2P Reserves Before Royalties PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 5 Significant Value to Unlock (MMBOE) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Based on…
  8. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 8
    CNQ Transitioning to a Longer Life Asset Base Long Life Assets = More Sustainable Cash Flow *2015F - 2018F based on company internal forecast as at May 2013. Dependent upon economic and regulatory conditions, commodity prices, global…
  9. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 9
    CNQ $0 $1 $2 $3 $4 $5 $6 $7 2013F 2014B 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F Canadian Natural Targeted Total Corporate Free Cash Flow PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 7 Free Cash Flow Growing…
  10. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 10
    CNQ 0 200 400 600 800 1,000 1,200 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F 2014B Dividend Share Purchase Horizon build years Balanced Free Cash Flow Allocation PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT…
  11. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 11
    Q3/13 Highlights ? Record quarterly production ?703,000 boe/d ?509,000 bbl/d crude oil & NGLs ? Record primary heavy crude oil production ? Record Pelican Lake crude oil production ? Kirby South commissioned ahead of schedule, on…
  12. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 12
    CNQ 2014 Targeted Free Cash Flow Uses Free Cash Flow Increases 115%, Dividends 66% PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 10 ($ million) 2013F 2014B Expected Cash Flow $7,640 $8,700 Capital Program 7,175 7,700 Free Cash…
  13. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 13
    CNQ Canadian Natural 2014 Capital Budget Capital ($ million) 2013F 2014B Natural gas $540 $590 Crude oil Pelican Lake 400 245 Primary Heavy 1,125 1,200 Thermal In Situ 1,260 1,130 Light Canada 530 545 North Sea 350 470…
  14. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 14
    Canadian Natural 2014 Production Budget Targeted Production 2013F* 2014B* %Change Crude oil (Mbbl/d) North America Light Oil & NGLs 65-69 72-76 Pelican Lake 46-50 47-51 Primary Heavy 139-143 142-146 Thermal In Situ Oil Sands…
  15. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 15
    CNQ North America Natural Gas Core Area Summary PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 13 Strong Asset Base ? 2nd largest producer of natural gas in Canada ? 1,136 MMcf/d of natural gas ? average NGL yield above 20…
  16. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 16
    CNQ 2013F 2014B % Change Production (MMcf/d) 1,065-1,135 1,100-1,140 2% Drilling (net wells) 42 61 Capital ($ million) $540 $590 North America Natural Gas 2014 Plan PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 14 Most…
  17. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 17
    CNQ North America Light Crude Oil and NGLs Core Summary PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 15 Near, Mid and Long Term Light Crude Oil Projects ? Q3/13 production ? ~70 Mbbl/d, 7% growth in 2013 ? 2013 light crude…
  18. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 18
    CNQ North America Light Crude Oil and NGLs 2014 Plan ? 2014 forecast activity ? Drill 93 wells ? Target multiple formations across basin ? Leverage technology, horizontal multifracs ? 80% of total drilling ? Horizontal ? 1.4…
  19. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 19
    CNQ International Light Crude Oil 2014 Plan ? 2P light crude oil reserves 490 million barrels* ? Light oil balance in portfolio Brent pricing ? Exposure to offshore operations and geographic diversification in asset base ? North…
  20. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 20
    CNQ International Light Crude Oil Offshore Cote d?Ivoire Opportunities Increasing Land Holdings = More Upside Potential CNRI Lands Ivoire-1X oil 2013 Espoir Acajou Baobab Kossipo CI-12 C1-103 C1-100 C1-401 Jubilee Jubilee…
  21. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 21
    CNQ International Light Crude Oil South Africa PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 19 High Impact Potential ? Partnering with Total SA (50% WI, Total as operator) ? 5 structures ranging up to 1 billion barrels ?…
  22. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 22
    CNQ Heavy Oil Assets PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 20 Technology Option ? Thermal in situ development ? Massive resource potential ? Staged value growth ? ~510,000 bbl/d of crude oil facility capacity ?…
  23. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 23
    CNQ Primary Heavy Crude Oil Core Area Summary PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 21 Vast Land Base and Infrastructure Captures Value ? Largest primary producer in Canada ? Q3/13 ~140,500 bbl/d, 13% growth in 2013F…
  24. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 24
    CNQ 2013F 2014B %Change Production (Mbbl/d) 139-143 142-146 2% Drilling (net wells) 852 898 Recompletion (net wells) 565 503 Capital ($ million) $1,125 $1,200 Primary Heavy Crude Oil 2014 Plan ? Low operating costs strong netbacks…
  25. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 25
    CNQ Pelican Lake Crude Oil Pool PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 23 ? Massive Wabiskaw heavy crude oil pool ? Industry leading EOR project ? Amongst the largest polymerfloods in the world ? Technology development…
  26. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 26
    CNQ 2013F 2014B %Change Production (bbl/d) 46-50 47-51 2% Drilling (net wells) ? Producers 33 17 Capital ($ million) $400 $245 Pelican Lake 2014 Plan ? Increasing free cash flow wedge as capital requirements are reduced and…
  27. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 27
    CNQ Thermal In Situ Oil Sands Land Holdings ? Clearwater ? Primrose, Wolf Lake ? Hilda Lake, Marie Lake ? McMurray ? Kirby ? Grouse ? Birch Mountain ? Gregoire ? Leismer ? Ipiatik ? Wabiskaw ? Kirby, Ipiatik ? Grand Rapids…
  28. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 28
    CNQ Thermal In Situ Oil Sands Tremendous Potential PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 26 Massive Resource to Exploit McMurray 49 billion barrels Wabiskaw 9 billion barrels Carbonates 10 billion barrels…
  29. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 29
    CNQ Thermal In Situ Oil Sands Growth Plan Phase Reservoir Oil Facility Capacity Target (bbl/d) Target Steam-In Timing (year) Primrose South/North ? CSS Clearwater 80,000 On Stream Primrose East ? CSS Clearwater 40,000 On…
  30. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 30
    Thermal In Situ Oil Sands Focused Execution Plan ? Primrose ? Causation review and remediation of seepage to surface ? Continue with cost effective pad adds ? Progress Follow Up Processes ? Evaluate facility steam expansion ? Kirby…
  31. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 31
    CNQ Thermal In Situ Oil Sands 2014 Plan 2013F 2014B %Change Production (Mbbl/d) 100-107 120-135 23% Drilling (net wells) Primrose producers 134 15 Kirby South producers 8 - Strats 73 130 Service / observation wells 64 54 Total…
  32. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 32
    CNQ Thermal In Situ Oil Sands Pad Add Profitability PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 30 Lowest Cost In Situ Production in Canada Source: FirstEnergy. Peers include: COP Surmont, CVE Christina Lake, CVE Foster…
  33. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 33
    CNQ Primrose Plan ? Going Forward* ? All wells, including old legacy wells, thoroughly reviewed for the potential to fail mechanically ? All wells with identified potential to fail will be repaired prior to additional steaming ?…
  34. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 34
    CNQ Thermal In Situ Oil Sands Kirby South PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 32 Ahead of Schedule ? On Budget ? First steam September 16, 2013 ? First shipment of crude oil from commissioning activities November…
  35. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 35
    North American Crude Oil Markets Canadian Natural?s Viewpoint ? Pipeline/transportation infrastructure is complex ?Misconceptions are common ? Significant North American heavy oil demand ?260,000 bbl/d PADD II demand increase…
  36. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 36
    CNQ 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2013 2016F 2019F 2022F 2025F Crude Supply Dispositions With Keystone XL Slide 34 Take Away Capacity is Sufficient to Meet Supply Forecast PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT…
  37. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 37
    CNQ Crude Supply Dispositions Without Keystone XL PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 35 Incremental Rail Capacity Will be Added to Meet Supply 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2013 2016F 2019F 2022F 2025F…
  38. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 38
    CNQ Horizon Oil Sands Core Area Summary ? World Class asset ? 14.4 billion barrels BIIP* ? 2P SCO reserves ? 3.4 billion barrels** ? Best estimate contingent resources other than reserves ? 3.3 billion barrels of bitumen*** ?…
  39. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 39
    CNQ Horizon Oil Sands 2014 Plan PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 37 Focus on Operational Excellence 2013F 2014B % Change Production (Mbbl/d) 100-108 107-115 7% Sustaining Capital ($ million) $290 $260…
  40. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 40
    CNQ Horizon Oil Sands Targeted Fixed vs. Variable Operating Costs ? Labour is a major portion of fixed costs ? Production increases 2.4x while labour increases 1.4x ? Introduction of thickeners, saves energy, reduces cost ? Increase…
  41. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 41
    CNQ 2013F 2014B Project Capital ($ million) Reliability ? Tranche 2 $90 $40 Directive 74 55 200 Phase 2A 165 100 Phase 2B 1,005 1,325-1,575 Phase 3 495 550-700 Owner?s Costs & Other 225 305 Total $2,035* $2,520-$2,920* Horizon…
  42. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 42
    CNQ Horizon Oil Sands Efficiencies Achieved Through Expansion ? Reliability and efficiencies will be achieved through completion of original design of Phase 1,2,3 with higher vacuum yield and a more integrated, energy-efficient…
  43. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 43
    CNQ Horizon Oil Sands Production Capacity Plan* ? Moving Phase 2A into 2014* PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 41 Future Expansion 110 Mbbl/d up to 250 Mbbl/d 75,000 100,000 125,000 150,000 175,000 200,000…
  44. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 44
    Canadian Natural 2014 Budget Summary 2014B Cash Flow $8.7 billion Capital $7.7 - $8.1 billion Crude oil & NGLs production growth 9% growth Capital for future production $3.6 billion ~45% Capital flexibility in original budget $3.2…
  45. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 45
    CNQ $0 $1 $2 $3 $4 $5 $6 $7 2013F 2014B 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F Canadian Natural Targeted Total Corporate Free Cash Flow PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 43 Free Cash Flow Growing…
  46. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 46
    CNQ Free Cash Flow Uses 1. Resource development ? Executing our defined plan 2. Dividends ? 14 consecutive years of dividend increases ? 31% CAGR (2009 ? 2014) ? Must be sustainable 3. Share purchases ? 11.0 million common shares…
  47. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 47
    CNQ Committed Management ? Substantial management and director wealth at stake ? Strong motivation for management to perform ? Delivers clear alignment with shareholder interests PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT…
  48. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 48
    CNQ Canadian Natural Advantage ? Strong, balanced assets deliver excess cash flow over near term growth requirements ? Free cash flow allocation ?Increase asset strength and free cash flow ? Resource development ? Opportunistic…
  49. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 49
    Reporting Disclosures Special Note Regarding Currency, Production and Reserves In this document, all references to dollars refer to Canadian dollars unless otherwise stated. Reserves and production data are presented on a before…
  50. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 50
    CNQ PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 50 Appendices
  51. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 51
    CNQ Who is Canadian Natural? ? Consistent value creation through successful ? Exploitation ? Exploration ? Opportunistic acquisitions ? 100% of reserves subject to independent evaluation PREMIUM VALUE | DEFINED GROWTH |…
  52. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 52
    CNQ PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 52 Effective - Repeatable - Efficient Primary Heavy Crude Oil Key Advantages in the Area ? Flexible and repeatable ? Year round access ? Efficient rig fleet delivers repeatable…
  53. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 53
    CNQ PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 53 Technology Unlocks Value Primary Heavy Crude Oil Unlocking Resources ? Horizontal wells ?Two main applications ? Oil over water ? Less permeable pools - 20,000 40,000…
  54. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 54
    CNQ PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 54 Industry Leading EOR Technology Pelican Lake Polymerflood ? What is polymer? ? It is a non-toxic polyacrylamide powder mixed with water ? Why does it help recovery? ?…
  55. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 55
    CNQ PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 55 Pelican Lake Polymerflood Expansion Polymerflood at end of 2011 49% 5 Year Polymer Plan 73% 2012 / 2013 Polymer Plan 56% Contingent 97%
  56. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 56
    CNQ 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 56…
  57. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 57
    CNQ Thermal In Situ Oil Sands Primrose / Wolf Lake Development Plan PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 57 Greater Than 900 CSS Future Horizontal Wells Primrose South 50 wells ? 2013 15 wells ? 2014 96 wells ? 2017…
  58. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 58
    CNQ Primrose Seepage to Surface Update ? Seepage contained ? Cleanup >80% complete ? Causation review well underway ? Confident wellbore failure is root cause PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 58
  59. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 59
    CNQ Primrose Causation Review Update Wellbore Pathway PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 59 ? Clearwater reservoir is 500m deep ? 3 barriers ?Clearwater Shale ?Grand Rapids Formation ?Colorado Group Shales Paleo
  60. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 60
    CNQ Primrose Causation Review Update ? Working well with the AER ? Results to date: ?4 legacy wells identified as likely wellbore failures ?2 of 4 have identified mechanical failures ? Further delineation required to prove…
  61. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 61
    CNQ Kirby North Kirby West Kirby South CNQ Lands Acquisition Lands Kirby South Plant (Steam & Oil Treating) Kirby North Plant (Steam & Oil Treating) Thermal In Situ Oil Sands Kirby Project ? Two main plants ? 100% working…
  62. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 62
    Thermal In Situ Oil Sands Kirby South Phase 1 Geology Foster Creek Type Log SAGD PAY TOP SAGD PAY BASE Kirby South Type Log
  63. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 63
    CNQ -45 -40 -35 -30 -25 -20 -15 -10 -5 5 0 10 15 20 25 30 35 WTI WCS Maya LLS (1) Midwest refinery conversion (260 Mbbl/d) Selected Differentials Percentage of WTI PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT…
  64. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 64
    CNQ Expanding Pipeline Options ? Access to New Markets PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 64 Superior Fort McMurray Kitimat Edmonton Steele City Sarnia Montreal Quebec City Portland St. John Enbridge Gateway…
  65. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 65
    CNQ USGC Heavy Oil Demand PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 65 31% 2.3 MMbbl/d 37% 2.8 MMbbl/d 31% 2.3 MMbbl/d 28% 2.1 MMbbl/d 41% 3.1 MMbbl/d Source: Muse Stancil. Note: Assume 7.5 MMbbl/d of USGC refining…
  66. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 66
    CNQ Redwater Upgrader / Refinery ? Project sanctioned November 2012 ? 50,000 bbl/d additional bitumen conversion capacity ?Canadian Natural ? 50% ownership ? Return on capital generated by tolls ?Canadian Natural will earn a 10%…
  67. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 67
    CNQ Horizon Oil Sands Site Layout PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 67 60+ Years of Operation at 250,000 bbl/d of SCO Lease 11 Lease 12 Lease 15 Lease 19 Lease 20 Lease 18 Lease 25 Tailings Pond Northwest…
  68. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 68
    CNQ Horizon Oil Sands Original Design for Phase 3 Capacity Slide 68 ? Design optimized at 250,000 bbl/d of quality SCO ? Equipment redundancy increases reliability ? Improvement of 4% production yield (SCO per ton of ore) as Phase…
  69. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 69
    CNQ Horizon Oil Sands Expansion Update ? Overall expansion 30% physically complete PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 69 Future Expansion 110 Mbbl/d up to 250 Mbbl/d Reliability (5,000 bbl/d capacity) ? Projects on…
  70. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 70
    CNQ Horizon Expansion Horizon Expansion by Phase Capacity (bbl/d) Phase 1 110,000 Onstream Q1/09 Reliability 5,000 Onstream Q2/13 Phase 2A 12,000 Targeted for 2014 Phase 2B 45,000 Targeted for 2016 Phase 3 80,000 Targeted for…
  71. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 71
    CNQ Revolving Bank Credit Facilities (C$ million) Maturity Revolving bank line 1 $3,000 June 2017 Revolving bank line 2 $1,500 June 2016 Operating demand loan $ 200 Demand North Sea operating line (?15 million) $ 25 Demand Total…
  72. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 72
    CNQ 0 200 400 600 800 1,000 1,200 1,400 2014 2017 2020 2023 2026 2029 2032 2035 2038 C$ Public US$ Public (converted to C$ Equivalent) Maturity Schedule Public Debt PREMIUM VALUE | DEFINED GROWTH | INDEPENDENT Slide 72 (C$…
  73. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 73
    CNQ Horizon Oil Sands Synthetic Crude Oil Discovered Bitumen Initially-In-Place 14.4 billion barrels Proved Company Gross Reserves 2.3 billion barrels of SCO Bitumen volume associated with Proved SCO reserves 2.6 billion barrels of…
  74. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 74
    Hedging At November 7, 2013, the Company had the following net derivative financial instruments and physical sales outstanding: Sales contracts Remaining term Volume Weighted average price Index Crude oil Price collars Oct 2013 ?…
  75. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 75
    Note: The Company?s outstanding commodity derivative financial instruments are expected to be settled monthly based on the applicable index pricing for the respective contract month. Physical crude oil sales Remaining term Volume…
  76. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 76
    2007 2008 2009 2010 2011 2012 Operational Information Daily production, before royalties Crude oil and NGLs (Mbbl/d) 331 316 355 425 389 451 Natural gas (MMcf/d) 1,668 1,495 1,315 1,243 1,257 1,220 Barrels of oil equivalent (MBOE/d)…
  77. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 77
    Results of operations (C$ million, except per share) Cash flow from operations 6,198 6,969 6,090 6,333 6,547 6,013 per share ? Basic 5.75 6.45 5.62 5.82 5.98 5.48 Net earnings 2,608 4,985 1,580 1,673 2,643 1,892 per share ? Basic 2.42…
  78. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 78
    Q4/13 Guidance 2013 Original 2014 Budget Guidance Guidance Daily Production Volumes (before royalties) Natural gas (MMcf/d) 1,195 - 1,205 1,085 - 1,145 1,140 - 1,180 Crude oil and NGLs (Mbbl/d) North America 255 - 270 250 - 262 261 -…
  79. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 79
    Note: Interest rates are subject to change depending upon short term rate changes. Cash income taxes are subject to variation with commodity prices and the level and classification of capital expenditures. Cash PRT is subject to…
  80. January 2014 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 80
    CANADIAN NATURAL RESOURCES LIMITED 2500, 855 - 2nd Street S.W., Calgary, Alberta, T2P 4J8 Telephone: (403) 514-777 Facsimile: (403) 514-788 Email: ir@cnrl.com Steve W. Laut President Tim S. McKay Chief Operating Officer and…

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