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June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL)

Canadian Natural Resources Limited (CNRL) · Jun 30, 2016 · 37 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. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 1
  2. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 2
    CNQ Large, Diverse Portfolio, Transitioning to Long-Life, Low Decline Assets Strong Financial Position Uniquely Positioned to Deliver Value Growth Increasing Sustainable Cash Flow Balanced, Proven, Effective & Efficient Operations…
  3. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 3
    CNQ ? Flexible capital allocation to maximize value ? Strong Balance Sheet to support investment grade credit ? Defined growth/value enhancement plans by product/basin ? Diverse, balanced asset base ?Product mix ?Project timelines…
  4. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 4
    CNQ BUILDING A WORLD CLASS COMPANY Balanced, Diverse Portfolio ? Balanced, diverse production mix ? International exposure ? Vast, balanced resource base to develop ? Growing, sustainable cash flow Heavy Crude Oil ~35% Light…
  5. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 5
    CNQ 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 CNQ IMO SU CVE OXY DVN EOG APC APA CHK NBL ECA HSE SIGNIFICANT VALUE TO UNLOCK 1P Reserves After Royalties Note: Based on SEC reserve reporting, sourced from…
  6. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 6
    CNQ ? Conventional assets deliver field operating cash flow ? Reserve replacement costs for long-life assets are low ? Substantial, sustainable cash flow ? More tolerant to commodity price volatility ?Very low production decline…
  7. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 7
    CNQ (% of CNQ liquids production)* Transitioning to a Longer-Life Asset Base 0% 10% 20% 30% 40% 50% 60% 70% 2007 2011 2015 2018F Pelican Lake, Thermal in situ & Horizon oil sands production *2018F based on company internal…
  8. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 8
    CNQ ? Long-life low decline asset base transition near completion ?Horizon Phase 2B start-up in 4 months 45,000 bbl/d ?Horizon Phase 3 start-up in Q4/17 80,000 bbl/d ? Horizon targeted expansion capital drops significantly ?2016F ~$2…
  9. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 9
    CNQ Long-Term Ratings Short-Term Ratings Standard & Poor?s BBB+ A-2 DBRS BBB High n/a Moody?s Baa3 P-3 ? Strong financial position as of March 31, 2016 ?Debt/book capitalization 38% ?Available bank lines of $2.3 billion ?…
  10. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 10
    CNQ $0 $5 $10 $15 $20 $25 DEBT LEVELS ALIGN WITH PEERS 2015 Ending Debt Per BOE/d (After Royalties) Peers Note: Sourced from Company Reports and Bloomberg. Peers include: APA, APC, COP, CVE, DVN, EOG, OXY, SU. CNQ…
  11. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 11
    CNQ (C$ million) Maturity Revolving bank line 1(1) $2,425 June 2019 Revolving bank line 2(1) $2,425 June 2020 Non-revolving syndicated term facility(1) $1,500 April 2018 Non-revolving term facilities(1) $ 875 February 2019 Operating…
  12. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 12
    CNQ ? 2016 ?Major component of transition to long-life, low decline asset base near completion ?Canadian Natural becomes a stronger, more robust company ?Cash flow in Q4/16 covers all capital and dividends ? 2017 ?At US$43.00/bbl…
  13. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 13
    CNQ ? Committed to lowering cost structure ?Execution/productivity step changes ?Leverage technology ?Regulatory effectiveness/efficiency ?Lower costs through the supply chain ? Disciplined approach lowered unit operating costs…
  14. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 14
    CNQ ($ million) 2015 2016F North America natural gas and NGLs $375 $160 - 195 North America crude oil 718 305 - 435 International crude oil 1,062 450 - 495 Total Exploration and Production $2,155 $915 - 1,125 Thermal in Situ Oil…
  15. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 15
    CNQ Targeted Production 2015 2016F % Change(1) Natural Gas (MMcf/d) 1,726 1,725 - 1,785 2% Crude Oil and NGLs (Mbbl/d) North America 270 235 - 245 (11%) North America ? Thermal In Situ 130 110 - 130 (8%) North America ? Oil Sands…
  16. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 16
    CNQ Canadian Natural Operating Costs 2016 Area (C$/bbl) 2014 2015 2016F % Change(1) North America Light Oil & NGLs $17.24 $14.88 $13.50 - 14.50 (19%) Pelican Lake 8.52 7.24 5.75 - 6.75 (27%) Primary Heavy 17.61 15.01 13.75 - 14.75…
  17. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 17
    CNQ ? Largest natural gas producer in Canada ? Q1/16 natural gas production of 1,722 MMcf/d ? Q1/16 average NGLs yield over 24 bbl/MMcf ? Large resource base ? 10.0 TcfGE reserves(1) ? Significant unconventional assets ? Montney…
  18. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 18
    CNQ $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Source: Company reports. Note: Peers include ARX, BNP, ECA, HSE, PGF, PWT. *Deep Basin/Septimus…
  19. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 19
    CNQ ? Q1/16 light crude oil and NGL production ? ~90 Mbbl/d ? 2P reserves ? Light crude oil 192 million barrels* ? High quality light crude oil horizontal multi-frac opportunities ? Montney ? Dunvegan ? Halfway/Doig ? Charlie…
  20. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 20
    CNQ LONG-LIFE RESERVES International Light Crude Oil Summary North Sea C?te d?Ivoire Gabon South Africa *Company gross proved plus probable reserves at December 31, 2015. ? Q1/16 light crude oil production ? ~49 Mbbl/d ? 2P…
  21. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 21
    CNQ ? Largest primary heavy oil producer in Canada ? Q1/16 production of ~114 Mbbl/d ? Delivering strong execution ? Extensive land base and infrastructure ? 5 major processing facilities ? ECHO sales pipeline ? 2P reserves ?…
  22. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 22
    CNQ $11.00 $16.00 $21.00 $26.00 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 2015 OPERATING COSTS REDUCED 15% FROM 2014 Operating Costs Primary Heavy Oil (C$/bbl) Peer Range Source: Company…
  23. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 23
    CNQ ? Capital requirements are reduced and polymer driven performance is realized ? Q1/16 production ~48 Mbbl/d ? Industry leading operating costs ? Q1/16 industry leading operating costs of $6.92/bbl ? Drives higher netbacks in…
  24. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 24
    CNQ 2015 OPERATING COSTS REDUCED 15% FROM 2014 Operating Costs Pelican Lake (C$/bbl) CNQ Source: Company reports. 24 $5.00 $10.00 $15.00 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16
  25. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 25
    CNQ ? Vast resource base with short, mid and long-term value ? Allows flexibility in our capital allocation ? 2P reserves ? 2.41 billion barrels* ? 100% working interest and operatorship ? Effective and efficient thermal operator ?…
  26. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 26
    CNQ $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 2015 OPERATING COSTS REDUCED 17% FROM 2014 Operating Costs Thermal In Situ Oil Sands (C$/bbl)…
  27. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 27
    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 increases…
  28. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 28
    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)…
  29. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 29
    CNQ ? World Class asset ? 2P SCO reserves ? 3.63 billion barrels(1) ? Phased development (SCO) ? Current targeted nameplate capacity of 137,000 bbl/d ? Targeted completion of Phase 2B 4 months ? Targeted completion of Phase 3…
  30. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 30
    CNQ FOCUS ON OPERATIONAL EXCELLENCE Horizon Oil Sands ? Operations 2016 Plan 2015 2016F % Change Production (Mbbl/d) 123 120 - 132 2% Sustaining Capital ($ million) $301 $280 - 310 Turnarounds & Reclamation ($ million) $31 $110 -…
  31. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 31
    CNQ 2015 OPERATING COSTS REDUCED 23% FROM 2014 Operating Costs Horizon Oil Sands (C$/bbl) CNQ Source: Company reports. Note: Peers include Albian Sands (Shell RDS), Syncrude, SU. 31 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00…
  32. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 32
    CNQ 80 82 84 86 88 90 92 94 2013 2014 2015 BEST IN CLASS OPERATIONAL PERFORMANCE 32 Horizon Oil Sands ? Operations Industry Leading Utilization Rate Note: Peers include AOSP, Suncor, Syncrude. Source: Peer data per…
  33. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 33
    CNQ $0 $500 $1,000 $1,500 $2,000 $2,500 50,000 100,000 150,000 200,000 250,000 2013 2014 2015 2016 2017 2018 2019 FUTURE EXPANSION CREATES VALUE Horizon Oil Sands Expansion Production Capacity Plan Note: Production…
  34. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 34
    CNQ $20 $25 $30 $35 $40 $45 50,000 100,000 150,000 200,000 250,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Horizon Oil Sands Significant Operating Cost Reductions Production* (bbl/d)…
  35. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 35
    CNQ 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% CNQ PXD DVN EOG APA APC CVE SU ECA ? Substantial management and director wealth at stake ? Strong motivation for management to perform ? Delivers clear alignment with shareholder…
  36. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 36
    CNQ 0 200 400 600 800 1,000 1,200 1,400 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Dividend Share Purchase Horizon Phase 1 build years RETURNS TO SHAREHOLDERS A PRIORITY Return to Shareholders ($…
  37. June 2016 Corporate Presentation – Canadian Natural Resources Limited (CNRL) – slide 37
    CNQ ? 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…

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