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 (thousands) 1,091,837 Production (annual average,…
? Long term ratings ?S&P: BBB+ ?Moody?s: Baa1 ?DBRS: BBB High ? Short term ratings ?S&P: A-2 ?Moody?s: P-2 ? Strong financial position as of September 30, 2015 ?Debt/book capitalization ? 38% ?Revised financial covenants ?…
strong liquidity bank line loan maturity debt operating line million credit
1P Reserves after royalties Peers
F&D Costs Reserve Replacement
? 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 ?…
? 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 strong…
? 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 2/3…
? 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 $1,120…
? 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 ? Work…
? Balanced, diverse production mix ? International exposure ? Vast, balanced resource base to develop ? Growing free cash flow
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 and…
? Capital discipline ? Preserve land base for increasing natural gas prices ? 2015 operating cost guidance $1.25 - $1.35/Mcf ? Q3/15 Septimus operating costs $0.20/Mcfe ? Targeting selective liquids rich gas plays ? Septimus, Deep…
? 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 Lake…
? 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 technology,…
Q3/15 light crude oil production ? ~43 Mbbl/d ? 2P light crude oil reserves ? 457 million barrels* ? Long reserve life ? Low decline water floods ? Exploitation based ? High return development opportunities in Offshore Africa ?…
? Offshore Africa ? Espoir 10 gross well infill drilling program (4 water injection wells) targeting to add 5,900 BOE/d ? To date, 5 gross wells drilled and completed for production 5,300 bbl/d (net) ? Under budget and on schedule ?…
? 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 ? 317…
? Low operating costs high netbacks strong field operating free cash flow ? Reducing capital to maintain capital efficiencies ? Most flexible capital in portfolio ? Technology advancements unlock value
? Industry leading operating costs drives high netbacks ? 20% decrease in 2014 from 2013 levels $8.52/bbl ? 2015 targeted operating costs of less than $8.00/bbl ? Q3/15 industry leading operating costs of $6.64/bbl ? Increasing field…
? Clearwater ? Primrose, Wolf Lake ? Hilda Lake, Marie Lake ? McMurray ? Kirby ? Grouse ? Birch Mountain ? Gregoire ? Leismer ? Ipiatik ? Wabiskaw ? Kirby, Ipiatik ? Grand Rapids ? Primrose, Wolf Lake, Pelican Lake, Germain,…
? 522,000 bbl/d of oil facility capacity in the defined growth plan ? 40,000 - 60,000 bbl/d addition every 2-3 years ? 100% working interest and operatorship
? Advance Kirby South production to facility capacity of 40,000 bbl/d ? Primrose Area 1 (PRE 1) and Primrose Area 2 (PRE 2) current production volumes range from 15,000 bbl/d to 20,000 bbl/d in Q3/15 ? PRE 1 employs low pressure…
? 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 increases…
? 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 to…
? Enhanced reliability ? Q3/15 production volumes ~132 Mbbl/d ? Continued focus on safe, steady and reliable operations ? Industry leading plant utilization rates ? Greater focus on operating cost efficiencies ? 2015 operating cost…
horizon oil sands oil sands upgrader utilization
? CNQ execution strategy is working ? Overall costs tracking to budget ? Phase 2/3 expansion remains on track ? Phase 2B ahead of schedule, tie-in of Phase 2B components during major turnaround targeted in mid-2016
horizon oil sands production capacity phase
? Labour is a major portion of fixed costs ? Production increases 2.3x while labour increases 1.4x ? Introduction of thickeners, saves energy, reduces cost ? Increased yield
? Substantial management and director wealth at stake ? Strong motivation for management to perform ? Delivers clear alignment with shareholder interests
? Strong balance sheet ? Large, diversified, well balanced asset base ? Transition to longer-life, low decline assets reduces capital requirements while maintaining production ? Delivering increasing and more sustainable cash flow to…
As at November 5, 2015, the Company had the following net derivative financial instruments outstanding: Sales contracts Remaining term Volume Weighted average price Index Crude oil Price collars Oct 2015 ? Dec 2015 50,000 bbl/d…
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