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October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL)

Canadian Natural Resources Limited (CNRL) · Oct 7, 2015 · 38 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. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 1
  2. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 2
    SNAPSHOT 2014 2015F Cash flow(1) (C$ million) $9,587 $5,800 - 6,200 Per share ? basic(1) (C$) $8.87 $5.30 - 5.70 Capital expenditures (C$ million) $11,744 $5,500 Dividend (C$/Share) $0.90 Common shares (thousands) 1,091,837…
  3. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 3
    2014 2015F Oil WTI (US$/bbl) $92.92 $51.49 Natural gas NYMEX (US$/MMbtu) $4.37 $2.84 Natural gas AECO (C$/GJ) $4.19 $2.71 Heavy oil diff (%) 21% 26% Exchange rate (C$ = XUS$) $0.91 $0.79 Company Gross Reserves of crude oil and…
  4. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 4
    Long term ratings ?S&P: BBB+ (Stable Outlook) ?Moody?s: Baa1 (Stable Outlook) ?DBRS: BBB High (Stable Trend) ? Short term ratings ?S&P: A-2 ?Moody?s: P-2 ? Strong financial position as of June 30, 2015 ?Debt/book capitalization ?…
  5. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 5
    Revolving bank line 1 $2,425 June 2020 Revolving bank line 2 $2,425 June 2019 Non-revolving bank line 3 $1,500 April 2018 Non-revolving term facility $1,000 January 2017 Operating demand loan $ 100 Demand North Sea operating line…
  6. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 6
    1P Reserves After Royalties Note: Sourced from 2014 corporate reports. Peers include: APA, APC, EOG, CVE, CHK, DVN, ECA, HSE, IMO, OXY, NBL, SU, TLM.
  7. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 7
    F&D Costs Reserve Replacement ? 3 Year Average ($/BOE, net) Source: BMO Report, ?Oil & Gas: E&P? dated May 26, 2015. Peers include APA, APC, CHK, CVE, DVN, ECA, EOG, HSE, IMO, NBL, OXY, SU. Note: Uses a realized ratio defined as the…
  8. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 8
    Corporate Presentation October 2015 6 CNQ ? Conventional assets deliver field operating cash flow ? Fund the transition to long life, low decline asset mix ? Pelican Lake crude oil ?Leading-edge polymer flood ?Top tier operating…
  9. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 9
    LONG LIFE ASSETS = MORE SUSTAINABLE CASH FLOW Slide 13 Transitioning to a Longer Life Asset Base *2015F and 2018F based on company internal forecast at May 2015. Dependent upon fiscal, economic and regulatory conditions, commodity…
  10. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 10
    CNQ ? Committed to lowering cost structure ?Execution/productivity step changes ?Right scoping ?Leverage technology ?Regulatory effectiveness/efficiency ?Lower costs through the supply chain ? Committed to completing Horizon Phase…
  11. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 11
  12. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 12
    Canadian natural 2015 capital budget million natural gas crude oil pelican lake primary heavy light canada total crude oil sustaining capital  capital projects…
  13. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 13
    Corporate Presentation October 2015 9 CNQ Targeted Production 2014 2015F % Change(1) Crude oil (Mbbl/d) North America Light Oil & NGLs 89 91 - 96 5% Pelican Lake 50 53 - 55 8% Primary Heavy 143 130 - 133 (8%) Thermal In Situ Oil…
  14. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 14
    CNQ BUILDING A WORLD CLASS COMPANY Slide 19 Balanced, Diverse Portfolio ? Balanced, diverse production mix ? International exposure ? Vast, balanced resource base to develop ? Growing free cash flow Heavy Crude Oil ~35% Light…
  15. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 15
    Corporate Presentation October 2015 10 CNQ ? Largest natural gas producer in Canada ? Q2/15 natural gas production of 1,716 MMcf/d ? Q2/15 average NGLs yield over 22 bbl/MMcf ? Large resource base ? 9.47 Tcfe reserves(1) ?…
  16. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 16
    North America natural gas and NGL 2015 plan production (MMCF/d) drilling (net wells) Capital (million) capital discipline preserve land base for increaseing natural gas prices 2015
  17. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 17
    Corporate Presentation October 2015 11 CNQ ? Q2/15 light crude oil and NGLs production ? ~89 Mbbl/d ? 2P reserves ? Light crude oil 203 million barrels* ? High quality light crude oil horizontal multi-frac opportunities ?…
  18. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 18
    Corporate Presentation October 2015 11 CNQ ? Q2/15 light crude oil and NGLs production ? ~89 Mbbl/d ? 2P reserves ? Light crude oil 203 million barrels* ? High quality light crude oil horizontal multi-frac opportunities ?…
  19. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 19
    Corporate Presentation October 2015 12 CNQ LONG LIFE RESERVES Slide 24 International Light Crude Oil Summary North Sea C?te d?Ivoire Gabon *Company gross proved plus probable reserves at December 31, 2014. South Africa ? Q2/15…
  20. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 20
    Corporate Presentation October 2015 12 CNQ LONG LIFE RESERVES Slide 24 International Light Crude Oil Summary North Sea C?te d?Ivoire Gabon *Company gross proved plus probable reserves at December 31, 2014. South Africa ? Q2/15…
  21. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 21
    Corporate Presentation October 2015 13 CNQ ? Largest primary heavy oil producer in Canada ? Q2/15 production of ~129 Mbbl/d ? Delivering strong execution ? Extensive land base and infrastructure ? Over 8,000 potential drilling…
  22. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 22
    VAST LAND BASE AND INFRASTRUCTURE CAPTURES VALUE Slide 26 Primary Heavy Crude Oil Core Area Summary *Company Gross proved plus probable reserves as at December 31, 2014. ECHO Pipeline CNQ Producing Properties CNQ Land ~212km…
  23. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 23
    MASSIVE RESOURCES TO EXPLOIT Slide 28 Pelican Lake Crude Oil Summary How much of that crude oil is recoverable? OIIP(1) 4.1 billion barrels Developed Region 19% RF Produced to Date 215 MMbbl Resources(3) 153 MMbbl…
  24. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 24
    MASSIVE RESOURCES TO EXPLOIT Slide 28 Pelican Lake Crude Oil Summary How much of that crude oil is recoverable? OIIP(1) 4.1 billion barrels Developed Region 19% RF Produced to Date 215 MMbbl Resources(3) 153 MMbbl…
  25. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 25
    Corporate Presentation October 2015 15 CNQ VAST LAND BASE AND GREAT ASSETS = FLEXIBILITY Slide 30 Thermal In Situ Oil Sands Land Holdings Birch Mtn. Gregoire Leismer Ipiatik Grouse Pelican Lake Germain Primrose Wolf Lake…
  26. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 26
    Corporate Presentation October 2015 15 CNQ VAST LAND BASE AND GREAT ASSETS = FLEXIBILITY Slide 30 Thermal In Situ Oil Sands Land Holdings Birch Mtn. Gregoire Leismer Ipiatik Grouse Pelican Lake Germain Primrose Wolf Lake…
  27. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 27
    Corporate Presentation October 2015 16 CNQ Phase Reservoir Oil Facility Capacity Target (bbl/d) Primrose South/North CSS Clearwater 80,000 Primrose East CSS Clearwater 40,000 Kirby South SAGD McMurray 40,000 Kirby North Phase 1…
  28. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 28
    Corporate Presentation October 2015 16 CNQ Phase Reservoir Oil Facility Capacity Target (bbl/d) Primrose South/North CSS Clearwater 80,000 Primrose East CSS Clearwater 40,000 CONTINUED PRODUCTION GROWTH WITH LONG TERM FOCUS…
  29. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 29
    Slide 34 Marketing Continued Strong Heavy Oil Pricing INCREMENTAL MARKETS ? STRONG HEAVY OIL PRICING CNQ 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Western…
  30. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 30
    Slide 34 Marketing Continued Strong Heavy Oil Pricing INCREMENTAL MARKETS ? STRONG HEAVY OIL PRICING CNQ 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Western…
  31. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 31
    WORLD CLASS OPPORTUNITY Slide 36 Horizon Oil Sands ? Operations Core Area Summary (1) Discovered Bitumen Initially in Place. (2) Company Gross proved plus probable reserves as at December 31, 2014. (3) Best estimate contingent…
  32. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 32
    Horizon Oil Sands - Operations 2015 Plan 2014 2015F % Change Production (Mbbl/d) 111 121 - 131 14% Sustaining Capital ($ million) $352 $290 Turnarounds & Reclamation ($ million) $50 $40 Capitalized Interest & Other ($ million)…
  33. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 33
    Corporate Presentation October 2015 19 CNQ 98 89 85 75 89 85 85 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 100 Q1 2015 CNQ Peer 1 Peer 2 CNQ Peer 1 Peer 2 BEST IN CLASS OPERATIONAL…
  34. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 34
    CNQ Slide 39 Horizon Oil Sands - Expansion 2015 Plan ? Phase 2/3 Project Expansion FOCUS ON PROJECT EXECUTION 2014 2015F Project Capital ($ million) Reliability ? Tranche 2 $60 $0 Directive 74 and Technology 129 40 Phase 2A 95…
  35. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 35
    Corporate Presentation October 2015 20 CNQ FUTURE EXPANSION CREATES VALUE Slide 40 Horizon Oil Sands - Expansion Production Capacity Plan Note: Capacity additions ? 3-6 months required to ramp up to full rates. Project progress…
  36. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 36
    Corporate Presentation October 2015 20 CNQ IMPROVING ECONOMICS THROUGH EXPANSION Slide 41 Horizon Oil Sands ? Operations Targeted Operating Costs ($ million) ($/bbl) Targeted Operating Cost per Year Targeted Operating Cost per…
  37. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 37
    HORIZON PRODUCTION DOUBLES BY 2018 Slide 42 Production (MBOE/d) Note: Assumes current fiscal terms 250,000 bbl/d long life, no decline light oil barrels onstream Horizon Production Increases Operating costs reduced…
  38. October 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 38
    Slide 43 Royalty Revenue Stream MAXIMIZING VALUE FOR SHAREHOLDERS Q3/14 Q4/14 Q1/15 Production (BOED) 8,448 8,732 8,537 From third parties (%) 84% 85% 86% Revenue ($MM) $47 $40 $24 From third parties (%) 85% 87% 88%

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