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September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL)

Canadian Natural Resources Limited (CNRL) · Sep 23, 2016 · 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. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 1
  2. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 2
    SNAPSHOT 2015 2016F Cash flow(1) (C$ million) $5,785 $3,500 - 3,900 Per share ? basic(1) (C$) $5.29 $3.20 - 3.55 Capital expenditures ? net (C$ million) $3,853 $3,500 - $3,900 Dividend (C$/Share) $0.92 Common shares (thousands)…
  3. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 3
    2015 2016F Oil WTI (US$/bbl) $48.76 $43.67 Natural gas NYMEX (US$/MMbtu) $2.67 $2.45 Natural gas AECO (C$/GJ) $2.62 $1.96 Heavy oil diff (%) 28% 32% Exchange rate (C$ = XUS$) $0.78 $0.76 Company Gross Reserves, before royalties, of…
  4. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 4
    CNQ BUILDING A WORLD CLASS COMPANY 6 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. September 2016 Investor 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. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 6
    CNQ $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 CNQ CVE IMO ECA HSE CHK EOG NBL SU OXY APA DVN APC Industry Leading 1P FD&A Costs INDUSTRY LEADING RESERVE METRICS CNQ ($/BOE) 8 1 Year 1P FD&A 3 Year 1P FD&A Peers…
  7. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 7
    CNQ Production levels maintained 10% 12% 14% 16% 18% 20% 22% 24% 2009 2010 2011 2012 2013 2014 2015 2016F 2017F 2018F 2019F Conventional Assets Conventional, Pelican & Thermal Conventional, Pelican, Thermal & Horizon…
  8. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 8
    CNQ ? Long-life, low decline asset base transition near completion ?Horizon Phase 2B start-up targeted in October 45,000 bbl/d ?Horizon Phase 3 start-up in Q4/17 80,000 bbl/d ? Horizon targeted expansion capital drops significantly…
  9. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 9
    CNQ 750 800 850 900 950 1,000 1,050 1,100 Capital ($ Billion) 2016F 2017F 2018F 2019F US$60.00 WTI $3.9 $4.5 $4.5 $4.5 Low Case $3.7 $2.7 $2.4 $2.4 VALUE DRIVEN 13 Canadian Natural 4 Year Production Growth Targets (MBOE/d)…
  10. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 10
    CNQ SIGNIFICANT CASH FLOW GENERATION 14 Canadian Natural 4 Year Free Cash Flow Targets ($ Billion) Capital ($ Billion) 2016F 2017F 2018F 2019F US$60.00 WTI $3.9 $4.5 $4.5 $4.5 US$60.00 WTI Note: Free cash flow represents cash flow…
  11. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 11
    CNQ ? Committed to lowering cost structure ?Execution/productivity step changes ?Leverage technology ?Regulatory effectiveness/efficiency ?Disciplined approach driving lower unit operating costs through the supply chain ? ~$1.1…
  12. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 12
    CNQ ($ 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 $915 - 1,125 Thermal in Situ Oil…
  13. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 13
    CNQ Targeted Production 2015 2016F % Change(1) Natural Gas (MMcf/d) 1,726 1,705 - 1,735 (1%) Crude Oil and NGLs (Mbbl/d) North America 270 235 - 245 (11%) North America ? Thermal In Situ 130 110 - 130 (8%) North America ? Oil Sands…
  14. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 14
    CNQ ? Low commodity price provides further opportunities to enhance ?Right scoping and optimization ?Innovation; leverage technology ?Execution/productivity enhancements ?Gain regulatory effectiveness/efficiency ?Lower costs through…
  15. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 15
    CNQ ? Control of our destiny ?Control costs, development timing and pace ? eliminates commitments ?Operations flexibility with high working interest ? Minimal capital exposure and return on capital maximized ? Drill-to-fill strategy…
  16. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 16
    CNQ Canadian Natural Operating Costs 2016 Area (C$/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. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 17
    CNQ TOP TIER ASSET BASE 24 Natural Gas & NGLs Core Area Summary ? Largest natural gas producer in Canada ? Q2/16 natural gas production ? 1,620 MMcf/d ? Q2/16 average NGL yield ? ~23 bbl/MMcf ? Large resource base ? 10.0 Tcfe…
  18. September 2016 Investor 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. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 19
    CNQ ? Q2/16 light crude oil and NGL production ? ~84 Mbbl/d ? 2P reserves ? Light crude oil 192 million barrels* ? High quality light crude oil horizontal multi-frac opportunities ? Montney ? Dunvegan ? Halfway/Doig ?…
  20. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 20
    CNQ OPTIMIZATION OF SIGNIFICANT RESERVE BASE 27 International Light Crude Oil Summary North Sea C?te d?Ivoire Gabon South Africa *Company Gross proved plus probable reserves at December 31, 2015. ? Q2/16 light crude oil…
  21. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 21
    CNQ ? Largest primary heavy oil producer in Canada ? Q2/16 production of ~104 Mbbl/d ? Large inventory of development opportunities ? Potential to execute cost-effective large drilling programs ? Premium land base and extensive…
  22. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 22
    CNQ ? Industry leading EOR technology ? Capital requirements are reduced and polymer driven performance is realized ? Q2/16 production ~48 Mbbl/d ? Industry leading operating costs ? Q2/16 operating costs $6.81/bbl ? Drives higher…
  23. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 23
    CNQ 0 10,000 20,000 30,000 40,000 50,000 60,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 THREE PRODUCING REGIMES ? THREE DIFFERENT PROFILES 30 Pelican Lake Production by Recovery Method…
  24. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 24
    CNQ ? Vast resource base with short, mid and long-term value ? Allows flexibility in our capital allocation ? 2P reserves ? 2.41 billion barrels* ? Majority working interest and operatorship ? Effective and efficient thermal…
  25. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 25
    CNQ ? Strong performance ? Record quarterly production in Q2/16 ? ~39 Mbbl/d ? Instantaneous SOR = 2.55 ? Strong inventory of new pads to maintain facility capacity ? 2P reserves ? 176 million barrels* ? Regulatory approval in…
  26. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 26
    CNQ ? Higher netbacks ? High quality crude oil ? Produced solution gas offsets fuel requirements ? Expansion potential ? 864 horizontal CSS wells* ? 145 Wolf Lake SAGD wells* ? Steamflooding ? First commercial horizontal well…
  27. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 27
    CNQ ? Inventory of 6 additional defined projects ? Potential of 200,000-260,000 bbl/d facility capacity ? Active commercial projects ? Tangleflags and Senlac ? July production ~3,000 bbl/d ? Seven opportunities identified ?…
  28. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 28
    CNQ ? World Class asset ? 2P SCO reserves ? 3.63 billion barrels* ? Phased development (SCO) ? Current targeted nameplate capacity of 137,000 bbl/d ? Targeted start-up of Phase 2B October 2016 ? Targeted start-up of Phase 3 Q4/17…
  29. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 29
    CNQ $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 50,000 100,000 150,000 200,000 250,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 37 Horizon Oil Sands Significant Operating Cost Reductions…
  30. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 30
    CNQ Annual Expansion Capital ($ million) $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 38 Horizon Oil Sands Expansion…
  31. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 31
    CNQ Long Term Target Range 25% - 45% 0 10 20 30 40 50 60 70 2012 2013 2014 2015 2016F 2017F 2018F 2019F WELL WITHIN COVENANTS AND LONG-TERM RANGES Debt / Book Capitalization Note: See Advisory for pricing assumptions and…
  32. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 32
    CNQ Long Term Target Range 1.8x - 2.2x 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2012 2013 2014 2015 2016F 2017F 2018F 2019F Low Case US$60.00 WTI RETURN TO CONSERVATIVE TARGET RANGE IN 2018F/2019F Debt / Annual EBITDA (x) 41…
  33. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 33
    CNQ (C$ 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…
  34. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 34
    CNQ Production Capability (Bcfe/d) $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 STRONG PORTFOLIO OF LIQUIDS-RICH GAS PROJECTS 47 Deep Basin/Montney Natural Gas Projects Return on Capital, 15% After Tax $2.00-$2.50 Tier 3…
  35. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 35
    CNQ $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 DIVERSE ASSET PORTFOLIO 48 Light Crude Oil Projects Return on Capital, 15% After Tax $45.00-$50.00 Tier 3 - Deep Basin $40.00-$45.00 Tier 2 ? Deep Basin…
  36. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 36
    CNQ $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 ABILITY TO ADD SIGNIFICANT GROWTH 49 Primary Heavy Crude Oil Projects Return on Capital, 15% After Tax Tier 3 Tier 4 Tier 2 Tier 1 0 20,000 40,000 60,000 80,000…
  37. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 37
    CNQ $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 GROWING PRODUCTION WITH LEADING EDGE TECHNOLOGY 50 Pelican Lake Projects Return on Capital, 15% After Tax WTI (US$/bbl) 0 5,000 10,000 15,000 20,000 Infill Drilling…
  38. September 2016 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 38
    CNQ $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 LONG-LIFE, LOW DECLINE ASSETS GROWTH POTENTIAL 51 Thermal In Situ Oil Sands Projects Return on Capital, 15% After Tax WTI (US$/bbl) Primrose Pads Kirby North Wolf…

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