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June 2021 Corporate Presentation – Canadian Natural Resources (CNRL)

Canadian Natural Resources (CNRL) · Jun 1, 2021 · 69 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 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 1
    Canadian Natural CORPORATE PRESENTATION June 2021
  2. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 2
    Advisory Special Note Regarding 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…
  3. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 3
    Canadian Natural Advantages Large, Long Life Low Decline Asset Base Diversified Asset Base & Product Mix Flexible Capital Allocation / Effective & Efficient Operations Low Maintenance Capital Leading Free Cash Flow…
  4. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 4
    Canadian Natural Q1/21 Quarterly Operational Highlights Record BOE production of 1,246 MBOE/d 6% increase over Q1/20 Record liquids production of 979,400 bbl/d 4% increase over Q1/20 Record Oil Sands Mining and Upgrading production of…
  5. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 5
    Balanced, Diverse Portfolio Balanced, diverse production mix North Sea Long Life Low Decline production 81% of liquids North America International Brent exposure Vast, balanced resource base to develop Light crude oil and SCO…
  6. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 6
    Canadian Naturals Assets are Unique Robust Through All Cycles Long life low decline assets provide sustainable production and free cash flow even in lower Ability to ramp up production price environment faster with improving prices…
  7. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 7
    Canadian Naturals Advantage Low Corporate Decline Rate 2021B BOE Production Mix Oil Sands Mining Long Life & Upgrading Low Decline 0% Decline Production 63% Pelican & Thermal 13% Decline 10% Corporate Decline Rate…
  8. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 8
    1P Reserves After Royalties 2020 61% of reserves are high value SCO Reserve Life Index 30 plus years* 0 5,000 10,000 15,000 20,000 (MMBOE) Global Peers Peers include: BP, COP, CVX, FP, RDS, SU and XOM. *Reserve Life Index…
  9. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 9
    Net Debt to Reserves 2020 (US/BOE) 10.00 8.00 6.00 Peer Average 4.00 2.00 0.00 Global Peers Source: Company reports. Peers include BP, COP, CVX, FP, RDS, SU and XOM. TOP DECILE FINANCIAL POSITION 10
  10. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 10
    Free Cash Flow Yield 2021F (%) 24% World class long life low decline assets Disciplined capital low maintenance capital 20% Top tier effective and efficient operations 16% Peer Average 12% 8% 4% Free Cash Flow 7,900…
  11. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 11
    Debt to Cash Flow 2021F (x) 2.2 1.8 1.4 Peer Average 1.0 0.6 0.2 Global Peers Source: RBC Global Integrated & E&P Comparative Valuation - April 22, 2021. Peers include BP, COP, CVX, FP, RDS, SU and XOM. STRONG…
  12. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 12
    Enterprise Value to Debt Adjusted Cash Flow 2021F (x) 9.0 Canadian Natural is a significant 8.0 investment opportunity 7.0 6.0 Peer Average 5.0 4.0 3.0 Global Peers Source: RBC Global Integrated & E&P Comparative…
  13. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 13
    Canadian Natural 2021 Budget Capital Expenditures ( million) 2020 2021B Total(1) 2,701 3,205 2021B Maintenance Capital 3.0 billion 2021B Growth Capital 200 million Targeted Production 2020 2021B % Change(2) Natural Gas (MMcf/d)…
  14. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 14
    Capital Discipline Balance and optimize the four pillars of capital allocation Flexible capital allocation maximizes shareholder value Maintain balance sheet strength Maximizing Shareholder Value Maintain investment grade credit…
  15. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 15
    Operational Excellence Area knowledge, extensive infrastructure and operatorship Top tier effectiveness and efficiency Strong history of capturing margin growth opportunities Process optimization and improvement Technology and…
  16. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 16
    Canadian Natural Near- & Mid-Term Growth Potential 70,000 bbl/d - 80,000 bbl/d of liquids* Conventional & Unconventional 300 MMcf/d - 350 MMcf/d of natural gas Thermal In Situ Pad Additions 90,000 bbl/d - 100,000 bbl/d of bitumen…
  17. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 17
    Financial Strength
  18. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 18
    Canadian Natural Q1/21 Quarterly Financial Highlights Significant adjusted funds flow 2.7 billion Free cash flow 1.4 billion(1) Disciplined capital 0.8 billion Balance sheet is strong Reduced absolute net debt by 1.4 billion from…
  19. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 19
    Canadian Natural Robust Financial Position Long-Term Ratings Outlook Short-Term Ratings DBRS BBB High Stable R-2 Standard & Poors BBB- Stable A-3 Moodys Baa2 Stable P-2 Balance Sheet strength as of March 31, 2021 Debt to book…
  20. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 20
    Canadian Natural Balanced Credit Facility Profile Revolving Credit Facilities (C million) Fully Drawn Term Credit Facilities(1) (C million) June 2022(1) 2,425 February 2023(2) 1,000 June 2023(1) 2,425 June 2022(3) 1,475 Operating…
  21. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 21
    Canadian Natural 2021F Free Cash Flow ( billion) 12 US39 WTI US60 WTI 10 8 6 Dividend(2) 4 Dividend(1) 2 0 (3) 2020 2021F (1) Actual 2020 dividends. Capital Free Cash Flow (2) Current quarterly dividend annualized.…
  22. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 22
    Canadian Natural Balance Sheet Strength ( millions) 25,000 Free Cash Flow generation 23,000 is significant 21,000 Balance Sheet strengthens very quickly 19,000 Over 3.2 billion returned to 17,000 shareholders over same period(2)…
  23. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 23
    Canadian Natural Balance Sheet Strength Debt/EBITDA (x) 4.5 Strengthening metrics through the cycle 4.0 Prudent free cash flow allocation 3.5 3.6x Priority towards absolute debt repayment 3.0 Demonstrates resilience of high…
  24. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 24
    Changes to Net Debt 2019 to 2020 (%) In 2020 Canadian Natural: 90% Maintained net debt levels Executed share repurchases 70% Increased dividend Increased reserves 50% Increased production Opportunistic natural gas acquisition…
  25. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 25
    Dividend Sustainability Through the Cycle 2020 vs. Q1 2021 Change (%) 15% CNQ increased dividend in March 2021 4 peers decreased their dividend 10% 2 peers maintained their dividend 1 peer increased their dividend 5% 0%…
  26. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 26
    Long-Term Dividend Growth vs. Global Peers 20 Year CAGR (% CAGR) 25% 20% 15% 10% Peer Average 5% 0% -5% Global Peers Peers include: Peers include BP, COP, CVX, FP, RDS, SU and XOM. Note: Annual 2002 to 2021. 2021 based…
  27. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 27
    Canadian Natural Returns to Shareholders Dividends ( million) 2,250 2,000 21 years of consecutive dividend increases 20% CAGR since inception 1,750 Horizon Phase 3 1,500 complete 1,250 1,000 750 500 Horizon Phase 1 build…
  28. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 28
    Canadian Natural Financial Strength Summary Balance Sheet Strength Maintained debt levels in 2020 Maximizing Significant further debt reduction in 2021 Shareholder Value Returns to Shareholders Increased dividends in 2020 and 2021…
  29. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 29
    Canadian Natural Advantages Summary World class asset base 83% of reserves are Long Life Low Decline(1) 81% of total liquids production(2) No decline, high value SCO production 455,000 bbl/d Top tier corporate decline rate 10%…
  30. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 30
    Canadian Natural Advantages Summary (contd) Leading free cash flow generation 5.7 billion to 6.2 billion* Supports sustainable and growing dividend Increase quarterly dividend by 11% in March 2021 21 consecutive years of dividend…
  31. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 31
    Asset Overview
  32. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 32
    Natural Gas, Light Crude Oil & NGLs Core Area Summary Large, Canadian, natural gas producer 2020 1,480 MMcf/d 2020 operating costs 1.14/Mcf Significant light crude oil and NGL production base in Canada 2020 84,700 bbl/d 2020…
  33. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 33
    Natural Gas, Light Crude Oil & NGLs Montney Lean Gas…
  34. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 34
    Natural Gas, Light Crude Oil & NGLs BC Montney Defined Plan Townsend Targeting 35 wells by the end of 2021 Targeting a 2021 exit production rate of 340 MMcf/d Average capital efficiency of 5,500/BOE/d 700 defined locations*…
  35. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 35
    Natural Gas, Light Crude Oil & NGLs BC Montney Drilling & Completion Costs (/metre) (/tonne) 500 950 850 450 750 400 650 350 550 450 300 350 250 250 2017 2020 2017 2020 Drilling Performance Frac Performance CONTINUOUS…
  36. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 36
    Natural Gas, Light Crude Oil & NGLs Greater Wembley Area Defined Plan Strategically owned plant capacity of 205 MMcf/d Sexsmith Gas Plant 153 sections undeveloped land in Greater Wembley De-risked by proven production 495 defined…
  37. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 37
    Natural Gas, Light Crude Oil & NGLs Infrastructure Advantage Extensive owned and controlled infrastructure Umbach Drives costs lower West Nig Townsend Strategic infrastructure proximal to liquids rich land base Graham Low capital…
  38. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 38
    Natural Gas, Light Crude Oil & NGLs Summary Leveraging Canadian Naturals competitive advantages Large, diverse, balanced asset base Owned and controlled infrastructure Flexible capital allocation 2,500 defined locations*…
  39. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 39
    Heavy Crude Oil Core Area Summary 500 km Largest primary heavy crude oil producer Cliffdale in Canada Pelican Lake 2020 production 70,300 bbl/d AB SK 2020 operating costs 17.59/bbl Smith Industry leading polymer flood at Pelican…
  40. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 40
    Technology & Innovation Heavy Crude Oil Horizontal Multilateral & Fishbone Wells Multilateral & Fishbone Multilateral technology unlocks multi-year low-risk development opportunities Benefits: Increased recovery up to 30x over…
  41. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 41
    Pelican Lake Operating Costs Leveraging area and technological (/bbl) 9.00 expertise, economies of scale to drive value growth Facility consolidations 8.00 Improved polymer quality and price Consolidation of power contracts Q4/17…
  42. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 42
    Heavy Crude Oil Summary Leveraging Canadian Naturals competitive advantages Large, diverse, balanced asset base Owned and controlled infrastructure Flexible capital allocation 3,000 defined locations* Effective and efficient…
  43. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 43
    Thermal In Situ Oil Sands Asset Overview CNQ Thermal Producing Properties Birch Mtn. Long Life Low Decline assets CNQ In Situ Project Inventory Peers 122 billion barrels BIIP(1) Ells River Facility capacity of 340,000 bbl/d(2)…
  44. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 44
    Thermal In Situ Oil Sands Primrose / Wolf Lake Overview Total facility capacity 140,000 bbl/d 2020 production 82,000 bbl/d Leverage annual unutilized facility capacity of 60,000 bbl/d Primrose North Primrose East Future pad adds…
  45. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 45
    Thermal In Situ Oil Sands Kirby / Jackfish SAGD Overview Total facility capacity of 200,000 bbl/d(1) 2020 production 165,000 bbl/d Kirby Jackfish North Leverage annual unutilized facility capacity of 35,000 bbl/d Future pad adds…
  46. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 46
    Technology & Innovation Solvents Reducing GHG Emissions Through Steam Efficiencies Co-injecting solvent with steam Kirby South is currently piloting solvent SAGD Steam Assisted Gravity Drainage SOR and GHG intensity reduction of 45%…
  47. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 47
    Thermal In Situ Oil Sands Summary Large, Long Life Low Decline asset base Capture low cost opportunities with annual unutilized capacity of 95,000 bbl/d Leveraging technology and innovation Solvents Significant GHG emission…
  48. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 48
    Oil Sands Mining & Upgrading Industry leading oil sands mine operator Net capacity 475,000 bbl/d of SCO CNQ Operating Oil Sands Mines CNQ Lands No decline, reservoir risk or reserve replacement cost 50+ year reserve life(1)…
  49. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 49
    Oil Sands Mining & Upgrading Plant Capacity Utilization (%) 100% 90% 80% 70% 1 year 2 year CNQ Peer Average Note: Sourced from TD research: Mine your own Business reports, includes trailing data as of February 2021.…
  50. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 50
    Oil Sands Mining & Upgrading Operating Costs (/bbl) 45.00 40.00 Over a 50% reduction in operating costs 35.00 Equates to a 30.00 3.5 billion reduction in annual 25.00 operating costs in 2020* 20.00 15.00 10.00 2013 * 2013 * 2020…
  51. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 51
    Horizon Oil Sands Mid-Term Opportunities Opportunities provide incremental economic production Incremental 35,000 bbl/d - 45,000 bbl/d of SCO Reliability improvements Diluent Recovery and Vacuum Distillate Units Potential…
  52. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 52
    Technology & Innovation In-Pit Extraction Process (IPEP) IPEP is a modular extraction plant that separates bitumen in the mine pit Benefits Reduces GHG emissions by 40% Eliminates tailings ponds, as it produces dry stackable…
  53. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 53
    Oil Sands Mining & Upgrading Summary Long Life, no decline assets 475,000 bbl/d net capacity Capturing synergies through technology and innovation Reliability and capacity increases In-Pit Extraction Process Targeting Effective and…
  54. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 54
    Environmental, Social & Governance
  55. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 55
    2020 Environmental Achievements Canadian Natural's corporate GHG emissions intensity continues to improve Decreased by 18% from 2016 levels Decreased by 2% from 2019 levels One of the largest owners of Carbon Capture and Storage and…
  56. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 56
    The World Needs More Canadian Energy (Aggregate ESG Score) 300 Environment(1) Social(2) 250 Governance(3) 200 Average 150 100 50 0 (1) 2020 Yale Environment Protection Index (EPI). (2) 2020 Social Progress Index (SPI)…
  57. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 57
    Canadian Natural Has Delivered Advancing Innovation Recognize the need to reduce GHG emissions 3.9 Billion Leverage technology and Canadian ingenuity INVESTED IN RESEARCH & DEVELOPMENT* Opportunities to reduce emissions further 77.4…
  58. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 58
    Continuous Improvement in GHG Emissions Corporate GHG Emissions Intensity (tonnes CO2e/BOE) 0.075 0.070 32% REDUCTION IN GHG INTENSITY 0.065 SINCE 2012 0.060 EQUIVALENT TO REMOVING 0.055 1.9 million CARS OFF THE ROAD…
  59. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 59
    Leading Canadian Oil Sands Intensity GHG Emissions Intensity (kgCO2/bbl) 80 70 60 50 35% 40 LOWER THAN TOTAL PEER UPSTREAM SCOPE 1 AVERAGE 30 20 10 0 Total Peer Oil Sands Total peer average includes all Canadian…
  60. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 60
    Technology & Innovation Journey to Net Zero Near-Term Actions Medium-Term Actions Long-Term Actions IPEP pilot IPEP commercialization Carbon capture and conversion (carbon fibers, asphalts, plastics) Solvent EOR pilots Solvent EOR…
  61. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 61
    Oil Sands Pathways to Net Zero Initiative Canadas largest oil sands producers form an alliance to achieve net zero GHG emissions Members includes Canadian Natural, Cenovus, Imperial, MEG and Suncor Progressing towards Canadas climate…
  62. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 62
    Carbon Capture & Sequestration / Storage Technology Quest TOP TIER CO2 CAPTURER AND SEQUESTERER IN THE WORLD(1) Reduced CO2 footprint Reduced CO2 charges Tonnes/Year EQUIVALENT TO Horizon Quest(2) 1.1 million REMOVING Horizon…
  63. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 63
    Carbon Capture, Utilization, and Storage (CCUS) Federal Budget 2021 Federal budget includes support for CCUS and low-carbon fuels (e.g. hydrogen) as important pathways to achieve climate objectives Proposed CCUS tax credit 319…
  64. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 64
    Industry Leading Safety Performance (Per 200,000 Hours) 0.75 25% 0.50 TRIF REDUCTION VS 2019 58% TRIF REDUCTION VS 2016 0.25 0.00 2016 2017 2018 2019 2020 Total Recordable Injury Frequency TARGET: NO SAFETY…
  65. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 65
    Investing in Indigenous Communities 550 Million IN CONTRACTS WITH LOCAL INDIGENOUS BUSINESSES IN 2019 1.4 Billion IN LAST 3 YEARS CANADIAN NATURAL WORKS WITH 150 Indigenous Companies Fort McKay Mtis Elder and Fort McKay…
  66. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 66
    Governance Risk Assessment & Mitigation Strong track record of identifying, assessing, adapting, aligning and executing Board of Directors as well as Board Governance and Risk Committees Review and hold management accountable to…
  67. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 67
    Management Aligned With Shareholders Management Ownership (% of Outstanding Shares) 2.5% 2.3% 2.0% Substantial Management & Director invested wealth delivers clear alignment with shareholder interests 1.5% 1.0% 0.5%…
  68. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 68
    The Strength of Canadian Naturals Business Model Leaders in ESG performance Advantaged assets Long life low decline assets Effective and efficient operations Leverage technology, innovation and continuous improvement Delivered game…
  69. June 2021 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 69
    Canadian Natural PROVEN EFFECTIVE STRATEGY

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