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

Canadian Natural Resources Limited (CNRL) · Nov 4, 2015 · 36 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. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 1
    CORPORATE PRESENTATION November 2015
  2. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 2
    Delivering Value and Growth SNAPSHOT 2014 2015F Cash flow(1) (C$ million) $9,587 $5,700 - 6,000 Per share ? basic(1) (C$) $8.87 $5.20 - 5.50 Capital expenditures (C$ million) $11,744 $5,435 Dividend (C$/Share) $0.90 Common shares…
  3. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 3
    CNQ (C$ million) Maturity 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…
  4. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 4
    CNQ 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 SIGNIFICANT VALUE TO UNLOCK Slide 10 1P Reserves After Royalties Note: Sourced from 2014 corporate reports. Peers include: APA, APC, EOG, CVE, CHK, DVN, ECA,…
  5. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 5
    CNQ $0 $10 $20 $30 $40 $50 $60 TOP TIER F&D COSTS Slide 11 F&D Costs Reserve Replacement ? 3 Year Average ($/BOE, net) Source: BMO Report, ?Oil & Gas: E&P? dated May 26, 2015. Peers include APA, APC, CHK, CVE, DVN, ECA, EOG,…
  6. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 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 costs deliver field operating cash flow ?…
  7. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 7
    CNQ 0% 10% 20% 30% 40% 50% 60% 70% 2007 2011 2015F 2018F Horizon - Sold as Synthetic Crude Oil Thermal In Situ - Sold as Heavy Crude Oil Pelican Lake - Sold as Heavy Crude Oil LONG LIFE ASSETS = MORE SUSTAINABLE CASH FLOW Slide…
  8. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 8
    CNQ $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Dividend Share Purchase Horizon Phase 1 build years RETURNS TO SHAREHOLDERS A PRIORITY Slide 14 Return…
  9. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 9
    CNQ ? In 2016, the Company is committed to the following priorities ? Continued focus on lowering cost structures ? Completion of Horizon Phase 2B and progression of Phase 3 toward completion in Q4/17 ? Maintenance of the Company?s…
  10. November 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. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 11
    CNQ ? Canadian Natural contributing to PrairieSky 5.4 million acres of royalty lands, including 2.2 million gross acres of fee simple mineral title and 3.3 million gross acres of GOR lands for $1.8 billion ? $680 million in cash and…
  12. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 12
    CNQ ? Low commodity price provides opportunity to focus on ?Right scoping ?Innovation; leveraging technology ?Execution/productivity enhancements ?Gaining regulatory effectiveness/efficiency ?Lower costs through the supply chain ?…
  13. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 13
    CNQ ($ million) 2014 2015F Natural gas $767 $410 Crude oil Pelican Lake 246 145 Primary Heavy 1,253 370 Thermal In Situ 1,039 320 Light Canada 639 160 International 823 1,070 Total crude oil $4,000 $2,065 Horizon Sustaining…
  14. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 14
    CNQ Targeted Production 2014 2015F % Change(1) Crude oil (Mbbl/d) North America Light Oil & NGLs 89 91 - 92 3% Pelican Lake 50 50 - 52 2% Primary Heavy 143 126 - 129 (11%) Thermal In Situ Oil Sands 108 126 - 140 23% International…
  15. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 15
    CNQ BUILDING A WORLD CLASS COMPANY Slide 21 Balanced, Diverse Portfolio ? Balanced, diverse production mix ? International exposure ? Vast, balanced resource base to develop ? Growing free cash flow Heavy Crude Oil ~35% Light…
  16. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 16
    CNQ ? Largest natural gas producer in Canada ? Q3/15 natural gas production of 1,592 MMcf/d ? Q3/15 average NGLs yield over 24 bbl/MMcf ? Large resource base ? 9.47 Tcfe reserves(1) ? Significant unconventional assets ? Montney…
  17. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 17
    CNQ 2014 2015F % Change Production (MMcf/d)* 1,527 1,655 - 1,692 10% Drilling (net wells) 76 17 Capital ($ million) $767 $410 MOST EFFECTIVE AND EFFICIENT PRODUCER Slide 23 North America Natural Gas & NGLs 2015 Plan ? Capital…
  18. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 18
    CNQ ? Q3/15 light crude oil and NGL production ? ~88 Mbbl/d ? 2P reserves ? Light crude oil 203 million barrels* ? High quality light crude oil horizontal multi-frac opportunities ? Montney ? Dunvegan ? Halfway/Doig ? Charlie…
  19. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 19
    CNQ ? 2015 activity ? Target multiple formations across basin ? Leverage infrastructure and ?Drill-to-Fill? ? Drive capital efficiencies ? Maximize value ? Opportunities to optimize facilities and operating costs ? Leverage…
  20. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 20
    CNQ LONG LIFE RESERVES Slide 26 International Light Crude Oil Summary North Sea C?te d?Ivoire Gabon South Africa *Company gross proved plus probable reserves at December 31, 2014. ? Q3/15 light crude oil production ? ~43 Mbbl/d…
  21. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 21
    CNQ 2014 2015F % Change Crude oil production (Mbbl/d) 30 41 - 47 47% Capital ($ million) $823 $1,070 Slide 27 International Light Crude Oil 2015 Plan Note: Rounded to the nearest 1,000 bbl/d. ? Offshore Africa ? Espoir 10 gross…
  22. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 22
    CNQ ? Largest primary heavy oil producer in Canada ? Q3/15 production of ~126 Mbbl/d ? Delivering strong execution ? Extensive land base and infrastructure ? 5 major processing facilities ? ECHO sales pipeline ? 2P reserves ?…
  23. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 23
    CNQ 2014 2015F %Change Production (Mbbl/d) 143 126 - 129 (11%) Drilling (net wells) 896 107 Recompletion (net wells) 637 393 Capital ($ million) $1,253 $370 STRONG CASH-ON-CASH RETURNS Slide 29 Primary Heavy Crude Oil 2015 Plan…
  24. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 24
    CNQ 2014 2015F %Change Production (bbl/d) 50 50 - 52 2% Drilling (net wells) ? Producers & Injectors 24 - Capital ($ million) $246 $145 TECHNOLOGY ADVANCEMENT PROVIDES SIGNIFICANT UPSIDE Slide 30 Pelican Lake 2015 Plan Note:…
  25. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 25
    CNQ VAST LAND BASE AND GREAT ASSETS = FLEXIBILITY Slide 31 Thermal In Situ Oil Sands Land Holdings Birch Mtn. Gregoire Leismer Ipiatik Grouse Pelican Lake Germain Primrose Wolf Lake Hilda Lake Marie Lake Saleski ?…
  26. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 26
    CNQ Phase Reservoir Oil Facility Capacity Target (bbl/d) Primrose South/North CSS Clearwater 80,000 Primrose East CSS Clearwater 40,000 Kirby South SAGD McMurray 40,000 Kirby North Phase 1 SAGD McMurray 40,000 Grouse SAGD…
  27. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 27
    CNQ 2014 2015F % Change Production (Mbbl/d) 108 126 - 140 23% Drilling (net wells) Primrose producers 11 - Kirby producers 4 3 Strats 78 17 Service / observation wells 65 24 Total 158 44 Capital ($ million) $1,039 $320 CONTINUED…
  28. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 28
    CNQ ? Debottlenecking pipeline capacity to USGC adds substantial incremental markets ? Flanagan south start-up in early 2015 adds approximately 600,000 bbl/d of incremental USGC pipeline capacity ? Clipper Expansion in Q3/15…
  29. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 29
    CNQ 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Western Canadian Refineries TMPL ENB- Ex Superior W. Access to PADD IV Clearbrook/Superior Keystone Base (in service)…
  30. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 30
    CNQ ? World Class asset ? 2P SCO reserves ? 3.6 billion barrels(1) ? Phased development (SCO) ? Current targeted nameplate capacity of 137,000 bbl/d ? Targeted completion of Phase 2/3 to 250,000 bbl/d ? Potential future expansion…
  31. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 31
    CNQ FOCUS ON OPERATIONAL EXCELLENCE Slide 37 Horizon Oil Sands - Operations 2015 Plan 2014 2015F % Change Production (Mbbl/d) 111 121 - 131 14% Sustaining Capital ($ million) $352 $290 Turnarounds & Reclamation ($ million) $50 $40…
  32. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 32
    CNQ 96 89 85 75 89 85 85 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 100 Q3 2015 CNQ Peer 1 Peer 2 CNQ Peer 1 Peer 2 BEST IN CLASS OPERATIONAL PERFORMANCE Slide 38 Horizon Oil Sands ?…
  33. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 33
    CNQ Slide 39 Horizon Oil Sands - Expansion 2015 Plan ? Phase 2/3 Project Expansion FOCUS ON PROJECT EXECUTION 2014 2015F Project Capital ($ million) Reliability ? Tranche 2 $60 $0 Directive 74 and Technology 129 40 Phase 2A 95 35…
  34. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 34
    CNQ FUTURE EXPANSION CREATES VALUE Slide 40 Horizon Oil Sands - Expansion Production Capacity Plan Note: Capacity additions ? 3-6 months required to ramp up to full rates. Project progress dependent upon economic and regulatory…
  35. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 35
    CNQ 50 100 150 200 250 300 2015F 2017F 2018F HORIZON PRODUCTION DOUBLES BY 2018 Slide 41 Horizon Significant Operating Cost Reductions (MBOE/d) Note: Assumes current fiscal terms. Incremental 125,000 bbl/d Long life, no…
  36. November 2015 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 36
    CNQ IMPROVING ECONOMICS THROUGH EXPANSION Slide 42 Horizon Oil Sands ? Operations Targeted Operating Costs ($ million) ($/bbl) Targeted Operating Cost per Year Targeted Operating Cost per Barrel *Phase 1 & 2A reflect 2015F data.…

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