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

Canadian Natural Resources Limited (CNRL) · Mar 9, 2017 · 30 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. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 1
  2. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 2
    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 ~30% Light…
  3. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 3
    CNQ 750 800 850 900 950 1,000 1,050 1,100 (MBOE/d) Strip(1) $US 60.00 WTI Capital ($ billion) 2016 2017B 2018F 2019F Strip(1) $3.8 $3.9 $4.1 $4.4 VALUE ADDING PRODUCTION GROWTH 10 Canadian Natural 4 Year Production Growth…
  4. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 4
    CNQ SIGNIFICANT FREE CASH FLOW GENERATION 11 Canadian Natural 4 Year Free Cash Flow Targets ($ billion) Capital ($ billion) 2016 2017B 2018F 2019F Strip(1) $3.8 $3.9 $4.1 $4.4 Note: Free cash flow represents funds flow from…
  5. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 5
    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 ~$3.9 billion ? Targeted…
  6. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 6
    CNQ ($ million) 2016 2017B North America natural gas & NGLs $277 $460 North America crude oil 512 910 International crude oil 477 420 Total Exploration and Production $1,266 $1,790 Thermal In Situ Oil Sands $192 $365 Horizon…
  7. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 7
    CNQ Targeted Production 2016 2017B % Change(1) Natural Gas (MMcf/d) 1,691 1,700 - 1,760 2% Crude Oil & NGLs (Mbbl/d) North America 240 232 - 242 (2%) North America ? Thermal In Situ 111 105 - 115 (1%) North America ? Oil Sands…
  8. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 8
    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…
  9. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 9
    CNQ TOP TIER ASSET BASE 19 Natural Gas & NGLs Core Area Summary ? Largest natural gas producer in Canada ? Q4/16 natural gas production ? 1,578MMcf/d ? Q4/16 average NGL yield ? ~25 bbl/MMcf ? Large resource base ? 10.6 Tcfe…
  10. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 10
    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 Q2/16 Q3/16 Source: Company reports. Note: Peers include ARX, BNP, ECA, HSE, PGF, PWT. *Deep…
  11. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 11
    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 21 Deep Basin/Montney Natural Gas Projects Return on Capital, 15% After Tax $2.00-$2.50 Tier 3…
  12. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 12
    CNQ ? Q4/16 light crude oil and NGL production ? ~88 Mbbl/d ? 2P reserves ? 233 million barrels(1) ? High quality light crude oil horizontal multi-frac opportunities ? ~182 active waterfloods ? Maximize recovery ? Shallow…
  13. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 13
    CNQ ? Q4/16 light crude oil production ? ~46 Mbbl/d ? 2P reserves ? 386 million barrels(1) ? North Sea ? Operating efficiency gains and more favorable tax regime increase returns ? Offshore Africa ? High return development…
  14. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 14
    CNQ $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 DIVERSE ASSET PORTFOLIO 24 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…
  15. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 15
    CNQ ? Largest primary heavy oil producer in Canada ? Q4/16 production of ~97 Mbbl/d ? Large inventory of development opportunities ? Premium land base and extensive infrastructure ? 2P reserves ? 259 million barrels(1) ? Low…
  16. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 16
    CNQ $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 ABILITY TO ADD SIGNIFICANT GROWTH 26 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…
  17. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 17
    CNQ ? Industry leading EOR technology ? Capital requirements are reduced and polymer driven performance is realized ? Q4/16 production ~48 Mbbl/d ? Industry leading operating costs ? Q4/16 operating costs $6.57/bbl ? 2P reserves ?…
  18. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 18
    CNQ $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 GROWING PRODUCTION WITH LEADING EDGE TECHNOLOGY 29 Pelican Lake Projects Return on Capital, 15% After Tax WTI (US$/bbl) 0 5,000 10,000 15,000 20,000 Infill Drilling…
  19. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 19
    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 ? 2.52 billion barrels(1) ? Majority working interest and…
  20. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 20
    CNQ ADDING VALUE WITH SAGD ASSETS 31 Thermal In Situ Oil Sands Kirby SAGD ? Reinitiated for development ? Major facility equipment purchased ? Lease delineated and ready for drilling ? Targeted first oil in Q1/2020 ? 2P reserves…
  21. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 21
    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…
  22. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 22
    CNQ $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 LONG-LIFE, LOW DECLINE ASSETS GROWTH POTENTIAL 33 Thermal In Situ Oil Sands Projects Return on Capital, 15% After Tax WTI (US$/bbl) Primrose Pads Kirby North Wolf…
  23. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 23
    CNQ ? World Class asset ? 2P SCO reserves ? 3.60 billion barrels(1) ? Phased development (SCO) ? Phase 2B on stream ? Q4/16 production of 178 Mbbl/d of SCO ? Targeted start-up of Phase 3 Q4/17 ? Potential 5,000 -15,000 bbl/d…
  24. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 24
    CNQ BEST IN CLASS OPERATIONAL PERFORMANCE 35 Horizon Oil Sands ? Operations Industry Leading Utilization Rate Note: Peers include AOSP, Suncor, Syncrude. *2016 reflects planned downtime of 35 days and includes unplanned downtime for…
  25. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 25
    CNQ $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 50,000 100,000 150,000 200,000 250,000 36 Horizon Oil Sands Significant Operating Cost Reductions Production (bbl/d) Annual Operating Cost (C$/bbl) Phase 3 80,000 bbl/d…
  26. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 26
    CNQ ? Early indications show Phase 2B may exceed design rates ?December 2016 ~184,000 bbl/d ?January 2017 ~195,000 bbl/d ?February 2017 ~203,600 bbl/d ? 2017 budget includes a 24 day turnaround and tie-in of Phase 3 ? Preserve…
  27. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 27
    CNQ Long-Term Ratings Outlook Short-Term Ratings Standard & Poor?s BBB+ Stable A-2 DBRS BBB High Stable n/a Moody?s Baa3 Stable P-3 ? Strong financial position as of December 31, 2016 ?Debt/book capitalization 39% ?Available bank…
  28. March 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 39 (%) Bank Debt Covenant @65% Actual Strip Note: See Advisory for pricing assumptions and cautionary statements. 0 10…
  29. March 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) 40 Actual Strip $US 60.00 WTI Note: See Advisory for pricing assumptions and cautionary statements. 0.0 0.5 1.0 1.5 2.0 2.5…
  30. March 2017 Investor Presentation – Canadian Natural Resources Limited (CNRL) – slide 30
    CNQ (C$ 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…

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