Skip to main content January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) | Shale Experts
Loading...
Pm

January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL)

Canadian Natural Resources Limited (CNRL) · Jan 5, 2017 · 32 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. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 1
  2. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 2
    CNQ Executing on Strategy PREMIUM VALUE. DEFINED GROWTH. INDEPENDENT. Key Messages 5 2017 Budget 6% Production Growth ~$3.9 billion Flexible Capital Budget 2017 Cash Flow ~$6.5 - $6.9 billion Balanced Cash Flow Allocation Balance…
  3. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 3
    CNQ ? Horizon lining out smoothly ?Strong production volumes after Phase 2B ramp-up ? October 2016 ~161,000 bbl/d ? November 2016 ~188,000 bbl/d ?Design capacity appears higher than the 182,000 bbl/d expected ?November average rates…
  4. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 4
    CNQ ? Monetize 15% interest in Cold Lake Pipeline system ? Not strategic to our long term operations ? Access to Cold Lake Pipeline retained ? Effectiveness and efficiency of operations not affected ? Asset not appropriately valued…
  5. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 5
    CNQ BUILDING A WORLD CLASS COMPANY 10 Balanced, Diverse Portfolio ? Balanced, diverse production mix ? International exposure ? Vast, balanced resource base to develop ? Growing, sustainable cash flow Heavy Crude Oil ~30% Light…
  6. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 6
    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…
  7. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 7
    CNQ Production levels maintained Forecast 14 Canadian Natural?s Advantage Impact of Long-Life Assets on Decline Rates DECLINE RATE SIGNIFICANTLY REDUCED BY LONG-LIFE PRODUCTION (%) 40% Reduction in Corporate Decline Rate…
  8. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 8
    CNQ 750 800 850 900 950 1,000 1,050 1,100 (MBOE/d) Strip(1) $US 60.00 WTI Capital ($ billion) 2016F(2) 2017B 2018F 2019F Strip(1) $3.9 $3.9 $4.1 $4.4 17 Canadian Natural 4 Year Production Growth Targets Note: 7% CAGR…
  9. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 9
    CNQ -$1 $0 $1 $2 $3 $4 SIGNIFICANT CASH FREE FLOW GENERATION 18 Canadian Natural 4 Year Free Cash Flow Targets ($ billion) Capital ($ billion) 2016F(2) 2017B 2018F 2019F Strip(1) $3.9 $3.9 $4.1 $4.4 Note: Free cash flow…
  10. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 10
    CNQ Long Term Target Range 1.8x - 2.2x RETURN TO TARGET RANGE IN 2017B Debt / Annual EBITDA (x) 20 Actual Strip $US 60.00 WTI Note: See Advisory for pricing assumptions and cautionary statements. 2016F reflects cash proceeds from…
  11. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 11
    CNQ ? Enhance Balance Sheet strength ? Horizon Phase 3 targeted start-up in Q4/17 ?Incremental 80,000 bbl/d of SCO production ? Horizon debottleneck decision in Q2/17 ? Target 6% production growth ? Capital ~$3.9 billion ? Cash…
  12. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 12
    CNQ ($ million) 2016F 2017B North America natural gas & NGLs $295 $460 North America crude oil 550 910 International crude oil 480 420 Total Exploration and Production $1,325 $1,790 Thermal In Situ Oil Sands $170 $365 Horizon…
  13. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 13
    CNQ 2016F 2017B* Variance North America Natural Gas 9 21 12 Light Oil 8 43 35 Pelican Lake 2 15 13 Primary Heavy 164 427 263 Thermal In Situ Oil Sands 9 54 45 International 1 3 2 Total Producer Well Count 193 563 370 STRATEGIC,…
  14. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 14
    CNQ Targeted Production 2016F 2017B % Change(1) Natural Gas (MMcf/d) 1,698 1,700 - 1,760 2% Crude Oil & NGLs (Mbbl/d) North America 241 232 - 242 (2%) North America ? Thermal In Situ 111 105 - 115 (1%) North America ? Oil Sands…
  15. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 15
    CNQ Wells Incremental Flex ($ millions) 12 months (BOE/d) (1) North America Natural Gas 34 $190 21,760 Light Oil 26 60 4,880 Pelican Lake(2) 29 45 380 Primary Heavy 49 20 1,365 Thermal In Situ Oil Sands 14 35 900 Total North…
  16. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 16
    CNQ TOP TIER ASSET BASE 27 Natural Gas & NGLs Core Area Summary ? Largest natural gas producer in Canada ? Q3/16 natural gas production ? 1,567 MMcf/d ? Q3/16 average NGL yield ? ~26 bbl/MMcf ? Large resource base ? 10.0 Tcfe…
  17. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 17
    CNQ ? Q3/16 light crude oil and NGL production ? ~90 Mbbl/d ? 2P reserves ? 192 million barrels(1) ? High quality light crude oil horizontal multi-frac opportunities ? ~182 active waterfloods ? Maximize recovery ? Shallow…
  18. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 18
    CNQ ? Q3/16 light crude oil production ? ~50 Mbbl/d ? 2P reserves ? 426 million barrels(1) ? North Sea ? Operating efficiency gains and more favorable tax regime increase returns ? Offshore Africa ? High return development…
  19. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 19
    CNQ ? Largest primary heavy oil producer in Canada ? Q3/16 production of ~102 Mbbl/d ? Large inventory of development opportunities ? Premium land base and extensive infrastructure ? 2P reserves ? 294 million barrels(1) ? Low…
  20. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 20
    CNQ ? Industry leading EOR technology ? Capital requirements are reduced and polymer driven performance is realized ? Q3/16 production ~48 Mbbl/d ? Industry leading operating costs ? Q3/16 operating costs $6.09/bbl ? 2P reserves ?…
  21. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 21
    CNQ 2017B Operating Costs Targeted net wells* Non-Fuel Fuel 54 $6.00 - $6.50/bbl $8.75 - $9.25/bbl ? Vast resource base with short, mid and long-term value ? 2P reserves ? 2.41 billion barrels(1) ? Majority working interest and…
  22. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 22
    CNQ ? Reinitiated for development ? Major facility equipment purchased ? Lease delineated and ready for drilling ? Targeted first oil in Q1/2020 ? Strong performance ? Quarterly production in Q3/16 ? ~38 Mbbl/d with an SOR of 2.6…
  23. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 23
    CNQ ? Strong netbacks ? High quality crude oil ? Produced solution gas offsets fuel requirements ? Significant development opportunities ? Steamflooding ? First commercial horizontal well steamflood at Primrose East, Primrose…
  24. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 24
    CNQ ? World Class asset ? 2P SCO reserves ? 3.63 billion barrels(1) ? Phased development (SCO) ? Current design capacity of 182,000 bbl/d ? Phase 2B on stream ? Targeted start-up of Phase 3 Q4/17 ? Potential 5,000 -15,000 bbl/d…
  25. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 25
    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…
  26. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 26
    CNQ ? Phase 2A exceeded design rates ? Early indications show Phase 2B may exceed design rates ?November 2016 ~188,000 bbl/d ? 2017 budget includes a 24 day turnaround and tie-in of Phase 3 ? Preserve option for 2017 capital to…
  27. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 27
    CNQ ? Capital ~$3.9 billion ?E&P Capital flexibility ~$525 million opportunity; ~$900 million rollback ?Corporate production growth targeted to be 6% ? Natural Gas targeted production increases ~2% ? Crude oil and NGL targeted…
  28. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 28
    CNQ Long Term Target Range 25% - 45% WELL WITHIN COVENANTS AND LONG-TERM RANGES Debt / Book Capitalization 42 (%) Bank Debt Covenant @65% Actual Strip Note: See Advisory for pricing assumptions and cautionary statements. 2016F…
  29. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 29
    CNQ Long Term Target Range 1.8x - 2.2x RETURN TO TARGET RANGE IN 2017B Debt / Annual EBITDA (x) 43 Actual Strip $US 60.00 WTI Note: See Advisory for pricing assumptions and cautionary statements. 2016F reflects cash proceeds from…
  30. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 30
    CNQ (C$ 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…
  31. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 31
    CNQ ? Canadian Natural more robust and sustainable ?Horizon Phase 2B on stream ? Currently 182,000 bbl/d of capacity ?Horizon Phase 3 targeted start-up in Q4/17 ? Incremental 80,000 bbl/d of SCO production ?Lower decline rate, lower…
  32. January 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 32
    CNQ 55 Hedging Note: The Company?s outstanding commodity derivative financial instruments are expected to be settled monthly based on the applicable index pricing for the respective contract month. At September 30, 2016, the Company…

From the store

Browse maps, data & reports in the Shale Experts store