Skip to main content February 2018 Investor Presentation – Canadian Natural Resources (CNRL) | Shale Experts
Loading...
Database
Slide Database

February 2018 Investor Presentation – Canadian Natural Resources (CNRL)

Canadian Natural Resources (CNRL) · Feb 15, 2018 · 68 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. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 1
  2. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 2
    Delivering Value and Growth SNAPSHOT 2017F 2018B Funds Flow (C$ million)(1) $6,800 - $7,000 $7,900 - $8,300 Per share $5.60 - 5.75 $6.50 - 6.80 Capital expenditures ? net (C$ million)(2) $4,855 $4,335 Annualized dividend…
  3. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 3
    Oil WTI (US$/bbl) $49.98 $52.03 Natural gas NYMEX (US$/MMbtu) $3.13 $2.91 Natural gas AECO (C$/GJ) $2.32 $2.11 Heavy oil diff (%) 24% 28% Exchange rate (C$ = XUS$) $0.77 $0.80 Company Gross Reserves, before royalties, of crude…
  4. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 4
    Canadian Natural?s Key Message Delivering Free Cash Flow Safe Growing Sustainable
  5. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 5
    Canadian Natural?s Strategy ? Flexible capital allocation to maximize value ? Strong Balance Sheet supports investment grade credit ? Defined growth / value enhancement plans by product and basin ? Large, diverse, balanced…
  6. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 6
    Balanced, Diverse Portfolio North America North Sea Offshore Africa ? Balanced, diverse production mix ? International exposure ? Vast, balanced resource base to develop ?…
  7. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 7
    Advantages of a Balanced Portfolio ? Facilitates capital flexibility to maximize returns ? Diverse product types, transportation logistics and time horizons ? Strong inventory of Low Capital Exposure Assets ? Primary heavy…
  8. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 8
    1P Reserves After Royalties (MMBOE) 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 CNQ Peers Note: Pro forma - CNQ Includes 70% ownership in AOSP. Excludes impacts…
  9. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 9
    Advantages of Infrastructure Ownership/Operatorship ? Control of our destiny ? Control development timing and pace eliminates commitments ? Control costs ? Operations flexibility with high working interest ? Return on…
  10. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 10
    Canadian Natural?s Advantage Impact of Long Life Assets on Decline Rates (%) 23% Maintenance Capital of ~$3 billion required 21% 19% 19% 17% 16% 15% 53% Reduction in 13% Corporate Conventional…
  11. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 11
    Delivering Safety Excellence Corporate total recordable injury frequency (incident per 200,000 hours) 1 0.5 0 2010 2011 2012 2013 2014 2015 2016 ? Safety is a core value ? Committed to…
  12. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 12
    Environmental Excellence Corporate GHG Emissions Intensity (tonnes CO2e/BOE) 0.075 0.070 16% Overall Reduction 0.065 0.060 0.055 2012 2013 2014 2015 2016 ? Proactive environmentally responsible…
  13. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 13
    Canadian Natural GHG Advantage Primary Heavy Crude Oil Vent (e3m3/year) 250,000 200,000 71% Reduction Absolute Vent Volumes 150,000 100,000 50,000 0 2012 2013 2014 2015 2016 ? Reduction of 71% from…
  14. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 14
    Leveraging Technology to Create Value & Enhance Performance Research & Development Investment ($ million) $600 $500 $400 $300 $200 $100 $0 2009 2010 2011 2012 2013 2014 2015 2016 Leading R&D…
  15. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 15
    Investing in Carbon Capture & Sequestration / Storage ? 4th largest CO2 capturer and sequesterer in the world(1) ? 18.4 million tonnes of CO2e conserved in last 5 years Quest ? Reduced CO2 footprint Horizon ? Reduced CO2…
  16. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 16
    Balance & Optimize the Four Pillars of Cash Flow Allocation Maximizing Shareholder Value Balance Returns to Economic Opportunistic Sheet Resource Shareholders Acquisitions Strength…
  17. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 17
    Balanced Yet Flexible Capital Allocation Q4/16 to Q3/17 ($ billion) $3.5 $3.0 Horizon Project Capital $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 Balance Sheet Returns to Economic Resource Opportunistic Strength…
  18. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 18
    2018 Capital Budget ($ million) 2017F 2018B North America Natural Gas & NGLs $460 $440 North America Crude Oil 920 1,115 International Crude Oil 420 410 Total Exploration & Production $1,800 $1,965 Thermal In Situ Oil Sands…
  19. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 19
    2018 Production Targeted Production 2017F 2018B % Change(1) Natural Gas (MMcf/d) 1,655 - 1,705 1,650 - 1,710 - Crude Oil & NGLs (Mbbl/d) North America 236 - 246 253 - 263 7% North America ? Thermal In Situ 112 - 122 107 -…
  20. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 20
    2018 Capital Breakdown Maintenance Capital ($ million) 2018B Exploration & Production(1)(3) $1,765 Thermal In Situ Oil Sands 335 Maintains Production Volumes Oil Sands Mining & Upgrading 880 Total Maintenance Capital…
  21. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 21
    5 Year Production Growth (MBOE/d) 1,350 1,250 1,150 1,050 950 850 750 Capital ($ billion) 2016 2017F 2018B 2019F 2020F 2021F Strip pricing $3.8 $4.9(2) $4.3 $4.4 $4.5 $4.5 (1) Based upon midpoint…
  22. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 22
    Canadian Natural 5 Year Free Cash Flow ($ billion) $4 $3 $2 $1 $0 Capital ($ billion) 2017F 2018B 2019F 2020F 2021F Strip pricing $4.9(2) $4.3 $4.4 $4.5 $4.5 (1) Based upon 2018B midpoint to…
  23. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 23
    Natural Gas & NGLs Core Area Summary ? Largest natural gas producer in Canada BC AB SK MB ? Q3/17 natural gas production ???~1,593 MMcf/d ? Q3/17 average NGLs yield East 530 MMcf/d West 1,063 MMcf/d…
  24. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 24
    Deep Basin/Montney Natural Gas Projects Return on Capital, 15% After Tax AECO (C$/GJ) $3.50 Infrastructure Advantage Tier 4 $3.00 Greenfield $2.50 $2.00 Tier 3 Tier 2 Tier 1 $1.50…
  25. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 25
    North America Light Crude Oil Core Area Summary ? Q3/17 light crude oil and NGL production ? ~93 Mbbl/d BC AB SK MB ? 2P reserves ? 233 million barrels(1) ? High quality light crude oil horizontal multi-frac…
  26. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 26
    International Light Crude Oil Summary ? Q3/17 light crude oil production ? ~44 Mbbl/d ? 2P reserves North Sea ? 386 million barrels(1) ? North Sea ? Operating efficiency gains and more favorable tax regime increase…
  27. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 27
    Light Crude Oil Projects Return on Capital, 15% After Tax WTI (US$/bbl) $70.00 $60.00 $50.00 $40.00 $30.00 Tier 3 Tier 4 $20.00 Tier 2…
  28. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 28
    Primary Heavy Crude Oil Core Area Summary CNQ Heavy Crude Oil Producing Properties CNQ Land Base CNQ ECHO Pipeline AB SK ~200 km ? Largest primary heavy crude oil producer in Canada ?…
  29. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 29
    Primary Heavy Crude Oil Projects Return on Capital, 15% After Tax WTI (US$/bbl) $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 Tier 2 Tier 1 $10.00 $0.00 25,000 0 1 7 13192531…
  30. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 30
    Polymer Flood Crude Oil Production Polymer Injector ? Industry leading EOR technology ? Capital requirements are reduced and polymer driven performance is realized ? Current…
  31. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 31
    Pelican Lake Recovery Modes Recovery Factor Primary 6% Waterflood After Primary 15% Polymer After Waterflood and Primary 22% Polymer After Primary 28% Rate Time A CANADIAN NATURAL…
  32. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 32
    Pelican Lake Acquisition CNQ Pelican Lake Land Base CNQ Polymer Flood Pelican Lake Acquisition Lands Pelican Lake Acquisition Current Polymer Flood Heavy Oil Processing Facilities…
  33. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 33
    Pelican Lake Projects Return on Capital, 15% After Tax WTI (US$/bbl) $70.00 $60.00 $50.00 $40.00 Tier 4 $30.00 Tier 3 $20.00 Tier 2 Tier 1 $10.00 $0.00 0 5,000…
  34. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 34
    Thermal In Situ Oil Sands Portfolio Birch Mtn. Ells River Grosmont Saleski Gregoire Grand Rapids Leismer Grouse Kirby Ipiatik Primrose Wolf Lake Marie CNQ Thermal Producing Properties…
  35. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 35
    Thermal In Situ Oil Sands Primrose / Wolf Lake Primrose North Steam Generation Facility Primrose South Steam Generation Facility Primrose East Steam Generation Facility Wolf Lake Central Oil…
  36. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 36
    Thermal In Situ Oil Sands Kirby South SAGD ? Strong performance ? Q3/17 production ~37 Mbbl/d ? SOR of 2.7 ? 2P reserves ? 164 million barrels* ? 2018 plans ? 4 infill producers ??First…
  37. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 37
    Thermal In Situ Oil Sands Kirby North SAGD ? Reinitiated for development ? Major facility equipment on site Kirby North ? Lease delineated and ready for drilling ? Targeted first oil in Q1 2020…
  38. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 38
    Thermal In Situ Oil Sands Projects Return on Capital, 15% After Tax WTI (US$/bbl) $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 Primrose Pads $10.00 $0.00 0 25,000 50,000 Wolf Lake…
  39. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 39
    Oil Sands Mining & Upgrading Canadian Natural Advantages CNQ Operating Oil Sands Mining Operations CNQ Lands CNQ Horizon Oil Sands CNQ AOSP ~72 km Fort McMurray ? Operating synergies 2…
  40. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 40
    Athabasca Oil Sands Project Operating Cost Reductions ($/bbl) ? AOSP ? Horizon ? Enhanced reliability ? Continuous improvement strategy $55.00 ? Optimized plant capacity ? Preventative…
  41. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 41
    Horizon Oil Sands Industry Leading Utilization Rate Average Utilization (%) 100 98 96 94 92 90 88 86 84 82 80 2014 2015 2016 2017F* CNQ Peer Average Peers data includes SU, Syncrude, AOSP…
  42. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 42
    Robust Financial Position Long-Term Ratings Outlook Short-Term Ratings DBRS BBB High Stable n/a Standard & Poor?s BBB+ Negative A-2 Moody?s Baa3 Stable P-3 ? Strong financial position as of September 30, 2017 ? Debt/book…
  43. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 43
    Canadian Natural Debt to Book Capitalization Improves Quickly Debt/Book Cap (%) 70% Bank Covenant 60% 50% 40% 30% 20% 10% 0% Actual Forecast See Advisory for pricing assumptions and cautionary…
  44. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 44
    Canadian Natural Balance Sheet Strengthens Quickly (Debt/EBITDA) 4.5 Pro forma ratio 4.0 assuming AOSP 3.5 transaction occurred January 2017 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Actual…
  45. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 45
    Canadian Natural Return to Shareholders ($ million) 23% Dividend CAGR $1,600 (2009-2017F) $1,400 $1,200 $1,000…
  46. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 46
    Committed Management (% of Outstanding Shares) 2.5% 2.3% 2.0% ? Substantial management and director wealth at stake ? Strong motivation for management to perform 1.5% ? Delivers clear alignment with shareholder…
  47. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 47
    Canadian Natural?s Advantage ? Strong balance sheet ? Large, diversified, well balanced asset base ? Transition to longer-life, low decline assets reduces capital requirements while maintaining production ? Delivering…
  48. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 48
  49. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 49
    2016 Corporate Breakeven Oil Price (US$/BOE) $80.00 $60.00 $40.00 $20.00 $0.00 Peer Average $43.09 CNQ Peers Integrated Peers Peers include: APA, APC, CPG,…
  50. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 50
    Production per Share CAGR (2012 - 2016) Production/share (% CAGR) 10% 5.9% 5% CNQ 0% CNQ -5% -10% Peers Integrated Peers (15.7%) Peers include: APA, APC, COP, CVE, DVN, ECA, EOG, HSE, MRO,…
  51. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 51
    Return on Equity (2012 - 2016) (%) 8% 6% 4% 2% 0% -2% 7.7% 6.0% 2017F CNQ CNQ Peers Integrated Peers (12%) (14%) (17%) (29%) Peers Include: APA, APC, COP, CVE,…
  52. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 52
    2018 Estimated Free Cash Flow Yield (%) 10% 8% 6% 4% 2% 0% -2% 9.6% CNQ Peers Integrated Peers Peers Include: APA, APC, COP, CVE, DVN, ECA, EOG, HSE, IMO, MRO, NBL,…
  53. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 53
    Returns to Shareholders Short Term Change in Dividend vs. Peers (3 year) (%) Change in Dividend 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% CNQ US Canada R.O.W. Super…
  54. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 54
    Advisory Special Note Regarding Currency, Production and Reserves In this document, all references to dollars refer to Canadian dollars unless otherwise stated. Reserves and production data are presented on a before royalties basis…
  55. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 55
    Forward Looking Statements Certain statements relating to Canadian Natural Resources Limited (the ?Company?) in this document or documents incorporated herein by reference constitute forward-looking statements or information…
  56. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 56
    Advisory Cautionary Statement Project progress and financial results are dependent upon economic and regulatory conditions, commodity prices, global economic factors, project sanction and capital allocation. Pricing…
  57. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 57
    Advisory Reserves Notes: (1) Company Gross reserves are working interest share before deduction of royalties and excluding any royalty interests. (2) Company Net reserves are working interest share after deduction of…
  58. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 58
  59. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 59
    Hedging At September 30, 2017, the Company had the following derivative financial instruments outstanding to manage its commodity price risk: Sales Contracts Remaining term Volume Weighted average price Index…
  60. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 60
    Key Historic Data Operational Information 2011 2012 2013 2014 2015 2016 Daily production, before royalties Crude oil and NGLs (Mbbl/d) 389 451 478 531 564 524 Natural gas (MMcf/d)…
  61. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 61
    Ratios Debt to funds flow, trailing 12 months 1.3x 1.5x 1.3x 1.4x 2.6x 3.5x Debt to book capitalization 27% 26% 27% 33% 38% 39% Return on common equity, trailing 12 months 12% 8% 9% 14% (2%) (1%)…
  62. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 62
    2017 Corporate Guidance November 2, 2017 Daily Production Volumes (before royalties) Natural gas (MMcf/d) Crude oil and NGLs (Mbbl/d) North America(1) North America ? Thermal In Situ(1) North America ?…
  63. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 63
  64. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 64
    2018 Corporate Guidance November 7, 2017 Daily Production Volumes (before royalties) Natural gas (MMcf/d) Crude oil and NGLs (Mbbl/d) North America ? E&P North America ? Thermal In Situ North America ? Oil…
  65. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 65
  66. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 66
  67. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 67
  68. February 2018 Investor Presentation – Canadian Natural Resources (CNRL) – slide 68

From the store

Browse maps, data & reports in the Shale Experts store