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July 2022 Corporate Presentation – Canadian Natural Resources (CNRL)

Canadian Natural Resources (CNRL) · Jul 1, 2022 · 67 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. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 1
    Canadian Natural CORPORATE PRESENTATION July 2022
  2. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 2
    Our Strategy Flexible capital allocation to maximize value Strong Balance Sheet supporting investment grade credit ratings Defined growth/value enhancement plans by product/basin Diverse, balanced asset base strong differentiation…
  3. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 3
    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…
  4. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 4
    Canadian Natural Operational Excellence Area knowledge, extensive infrastructure and operatorship Top tier effectiveness and efficiency Strong history of capturing margin growth opportunities Process optimization and improvement…
  5. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 5
    Canadian Natural Capital Discipline Balance and optimize the four pillars of capital allocation Flexible capital allocation maximizes shareholder value Further strengthen balance sheet Maximizing Maintain investment grade credit…
  6. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 6
    Canadian Natural Premium Value Assets, Execution, Management & Cost Structure Unique, diverse, long life low decline asset base Large, low risk, high value reserves Competitive Low maintenance capital requirements advantages Top tier…
  7. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 7
    Canadian Natural Asset Base Drives Long-Term Value 2022 Increased 6% Significant YTD Disciplined Executing on Leading dividend by Targeted returns to capital free cash free cash flow 28% to production shareholders of program…
  8. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 8
    Canadian Natural Balanced, Diverse Portfolio Balanced, diverse production mix North Sea Long Life Low Decline production 78% of liquids North America International Brent exposure Vast, balanced resource base to develop Light crude…
  9. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 9
    Total Proved & Proved Developed Producing Reserves Canadian Peers 2021 60% of reserves are high value SCO, light crude oil & NGLs Total Proved Reserve Life Index Total Proved 30 years(1) peer average Reserve Life Index 19…
  10. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 10
    Total Proved Reserves After Royalties Global Peers 2021 Greater than 5 Billion Barrels 60% of reserves are high value SCO, light crude oil & NGLs Reserve Life Index 30 years* Only Canadian company with 5 billion barrels 0…
  11. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 11
    Canadian Naturals Advantage Low Corporate Decline Rate 2022B BOE Production Mix Oil Sands Mining Long Life & Upgrading Low Decline 0% Decline Production 58% Pelican & Thermal 10% 13% Decline Corporate Decline Rate Conventional…
  12. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 12
    2021E Maintenance Capital Ratio (%) 90% Canadian Natural is a leading, economic source of sustainable crude oil & natural gas supply 70% 50% Peer Average 30% 10% Canadian Peers US Peers Source: BMO Capital Markets…
  13. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 13
    Canadian Natural 2022 Budget Capital Expenditures ( millions)(1) 2021 2022B Base Capital 3,480 3,645 Strategic Growth Capital - 700 Total Capital 3,480 4,345 Targeted Production 2021 2022B % Change(2) Natural Gas (MMcf/d) 1,695 1,980…
  14. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 14
    2022 Capital Budget Conventional E&P Near-Term Growth Conventional (near-term growth) ( millions) Targeted Opportunity Base Capital(1) 1,875 Sustains safe and reliable base production Growth of 66,000 BOE/d in 2022 from 2021 average…
  15. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 15
    2022 Capital Budget Thermal In Situ Mid-, & Long-Term Growth Thermal In Situ (mid- & long-term growth) ( millions) Targeted Opportunity Base Capital 340 Sustains safe & reliable base production Strategic Growth Capital Opportunities(1)…
  16. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 16
    2022 Capital Budget Oil Sands Mining & Upgrading Mid- & Long-Term Growth Oil Sands Mining (mid- & long-term growth) ( millions) Targeted Opportunity Base Capital 1,430 Sustains safe & reliable base production Strategic Growth Capital…
  17. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 17
    2022 Capital Budget Drilling Program Net producer wells 2021 2022B Natural Gas wells 49 54 Crude Oil wells Primary Heavy 94 161 Pelican Lake 10 - Light 32 29 International 5.9 - Total Conventional E&P wells 191 244 Thermal wells 8…
  18. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 18
    Canadian Natural 2022 Execution Priorities Disciplined 2022B base capital of 3,645 million focused on free cash flow generation and maximizing value for shareholders Allocate to highest return projects Maintain capital flexibility…
  19. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 19
    Financial Strength
  20. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 20
    Canadian Natural Asset Base Supports Strong Financial Position Increased dividend Implemented Achieved net Significant twice in 2021 Accelerated Long-term free cash flow debt of debt reduction 38%* share shareholder allocation…
  21. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 21
    Long-Term Dividend Growth vs. Global Peers 10 Year CAGR (% CAGR) 25% Leading long-term dividend growth Maintained dividend in low commodity price period while 20% others cut sustainable Increased dividend for 22nd consecutive year…
  22. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 22
    Canadian Natural Balancing the Four Pillars Balance Sheet Strength Balance Sheet strengthens with Maximizing free cash flow generation Shareholder Value Returns to Shareholders Growing, sustainable dividends Increasing share…
  23. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 23
    Canadian Natural Free Cash Flow Allocation Policy Adjusted Funds Flow Less: Base Capital Expenditures Less: Dividends 50% Free Cash Flow 50% Enhanced in May 2022 Further enhancement to free Balance Sheet Share cash flow…
  24. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 24
    Canadian Natural Cash Returns Market Cap Returned(1) Committed to returns to shareholders (%) 15% Current annualized dividend 3.00 per share 22 consecutive years of dividend increases 22% CAGR since inception in 2001 1.6 billion in…
  25. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 25
    Canadian Natural Production per Share Growth (BOE production/share) 0.44 0.42 0.40 0.38 0.36 0.34 0.32 2019 2020 2021 2022E Capital* 3.9 2.7 3.5 4.3 ( billions) *Capital excludes net acquisition costs. Note: Based…
  26. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 26
    Canadian Natural Returns to Shareholders ( millions) 12,000 Potential incremental returns 22 years of consecutive dividend increases through free cash flow policy 10,000 22% CAGR since inception 8,000 6,000 4,000 Horizon Phase 3…
  27. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 27
    Canadian Natural Balance Sheet Strength Debt/Cash Flow(1) (x) 5.0 Strengthening metrics through the cycle 4.0 Prudent free cash flow allocation Priority towards debt repayment 3.0 2.0 Targeted net debt reduction of 1.0 13…
  28. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 28
    Canadian Natural Robust Financial Position Long-Term Ratings Outlook Short-Term Ratings DBRS A (low) Stable R-1 Standard & Poors BBB- Stable A-3 Moodys Baa1 Stable P-2 Balance Sheet strength as at March 31, 2022 Net debt 13.8 billion…
  29. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 29
    Canadian Natural Balanced Credit Facility Profile Revolving Credit Facilities (C millions) Fully Drawn Term Credit Facilities(3) (C millions) June 2024(1)(3) 2,495 February 2023 1,150 June 2025(2)(3) 2,495 February 2023(3) 500…
  30. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 30
    Canadian Natural Financial Summary Significant debt reduction 50% of free cash flow Returns to shareholders to increase when 8 billion of Increased share repurchases 50% of free cash flow net debt is achieved Sustainable and growing…
  31. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 31
    Canadian Natural Advantages Summary World class asset base 77% of reserves are Long Life Low Decline(1) 78% of total liquids production in 2022B(2) Includes no decline, high value net SCO production capacity 475,000 bbl/d Top tier…
  32. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 32
    Asset Overview
  33. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 33
    Natural Gas, Light Crude Oil & NGLs Core Area Summary Large, Canadian natural gas producer 2021 annual production of 1,695 MMcf/d 2022B 1,980 - 2,030 MMcf/d Targeting 54 natural gas wells in 2022B NEBC and NW Alberta Montney and…
  34. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 34
    Natural Gas, Light Crude Oil & NGLs Montney Lean Gas…
  35. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 35
    Natural Gas, Light Crude Oil & NGLs Infrastructure Advantage Extensive owned and controlled infrastructure Umbach Drives costs lower Strategic infrastructure proximal to liquids rich Townsend land base Farrell Creek Low capital…
  36. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 36
    Heavy Crude Oil Core Area Summary Largest primary heavy crude oil producer Cliffdale in Canada Pelican Lake 2021 annual production 64,400 bbl/d AB SK Targeting 161 heavy crude oil wells in 2022B Smith This includes 41 heavy crude…
  37. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 37
    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…
  38. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 38
    Thermal In Situ Oil Sands Asset Overview Birch Mtn. Long Life Low Decline assets 126 billion barrels BIIP(1) Ells River Facility capacity of 340,000 bbl/d(2) Liege 2021 annual production 259,300 bbl/d(3) Gregoire Strategic growth…
  39. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 39
    Thermal In Situ Oil Sands Primrose / Wolf Lake Overview Total facility capacity 140,000 bbl/d Leverage annual unutilized facility capacity of 70,000 bbl/d Primrose North Future pad adds capital efficiency 10,000/bbl/d* Primrose…
  40. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 40
    Thermal In Situ Oil Sands Kirby / Jackfish SAGD Overview Total facility capacity of 200,000 bbl/d(1) Kirby Jackfish Leverage annual unutilized facility capacity North of 30,000 bbl/d Future pad adds capital efficiency 8,000/bbl/d(2)…
  41. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 41
    Technology & Innovation Solvents Reducing GHG Emissions Through Steam Efficiencies Co-injecting solvent with steam Kirby South is currently piloting solvent SAGD SOR and GHG intensity reductions of 45% Steam Assisted Gravity Drainage…
  42. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 42
    Oil Sands Mining & Upgrading Industry leading oil sands mine operator Net capacity 475,000 bbl/d of SCO CNQ Operating Oil Sands Mines 2021 annual production 448,100 bbl/d of SCO CNQ Lands No decline, reservoir risk or reserve…
  43. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 43
    Oil Sands Mining & Upgrading (contd) Horizon 2022B targeted activities Sustain safe and reliable base production CNQ Operating Oil Sands Mines Advancing reliability enhancement project CNQ Lands Targeting to extended major…
  44. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 44
    Oil Sands Mining & Upgrading Plant Capacity Utilization (%) 100% 90% 80% 70% 1 year 2 year CNQ Peer Average Peers Include: IMO Kearl, SU Base, SU Fort Hills and Syncrude. Note: Sourced from TD research: Mine your own…
  45. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 45
    Oil Sands Mining & Upgrading Operating Costs (/bbl) 45.00 40.00 Over a 50% reduction in 35.00 operating costs 30.00 Equates to a 3.7 billion reduction in annual 25.00 operating costs in 2021 20.00 15.00 10.00 2013 * 2013 * 2021…
  46. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 46
    Technology & Innovation In-Pit Extraction Process (IPEP) IPEP is a modular extraction plant that separates bitumen in the mine pit IPEP pilot was successful Next Step: front end engineering for a demonstration plant 10 million in…
  47. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 47
    Environmental, Social & Governance
  48. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 48
    Canadian Natural Environmental Achievements ESG is a priority and we have a strong history of environmental stewardship Reporting aligned with recommendations from the Task Force on Climate-related Financial Disclosures and the…
  49. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 49
    Strong Commitment to Improving Performance New Environmental Targets 2021 50% in E&P methane emissions by 2030 from 2016 baseline Reduction 40% in in-situ fresh water intensity Reduction by 2026 from 2017 baseline 40% in…
  50. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 50
    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) 2021 Social Progress Index (SPI)…
  51. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 51
    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 48…
  52. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 52
    Continuous Improvement in GHG Emissions Corporate GHG Emissions Intensity (tonnes CO2e/BOE) 0.075 0.070 32% 0.065 Reduction in GHG intensity since 2012 0.060 Equivalent to removing 0.055 1.9 million cars off the road…
  53. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 53
    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 Average Peer Oil Sands Total peer average includes all Canadian…
  54. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 54
    Carbon Capture & Sequestration / Storage Technology Quest TOP TIER CO2 capturer & sequesterer in the world(1) Reduced CO2 footprint Reduced CO2 charges Tonnes/Year Quest(2) 1.1 million Horizon Equivalent to removing Horizon…
  55. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 55
    Technology & Innovation Journey to Net Zero Current Actions Medium-Term Actions Long-Term Actions IPEP demonstration plant IPEP commercialization Carbon capture and Solvent EOR pilots Solvent EOR commercialization conversion (carbon…
  56. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 56
    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, ConocoPhillips Canada, Imperial, MEG and Suncor Progressing…
  57. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 57
    Industry Leading Safety Performance (Per 200,000 Hours) 0.75 25% 0.50 TRIF reduction vs 2019 58% 0.25 TRIF reduction vs 2016 0.00 2016 2017 2018 2019 2020 Total Recordable Injury Frequency TARGET: NO SAFETY INCIDENTS,…
  58. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 58
    Investing in Indigenous Communities 490 million in contracts with local indigenous businesses in 2020 1.0 billion in last 2 years Canadian Natural works with 160 Indigenous businesses Fort McKay Mtis Elder and Fort McKay…
  59. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 59
    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…
  60. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 60
    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%…
  61. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 61
    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…
  62. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 62
    Canadian Natural
  63. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 63
    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…
  64. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 64
    Advisory Long-term debt, net Long term debt, net (also referred to as net debt) is a capital management measure that is calculated as current and long-term debt less cash and cash equivalents. Refer to the Non-GAAP and Other Financial…
  65. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 65
    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. Thermal In Situ Oil Sands…
  66. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 66
    Advisory Pricing Assumptions Glossary of Terms 2022E 2021 AECO Alberta Energy Company (benchmark pricing) Strip AOSP Athabasca Oil Sands Project US WTI/bbl 96.76 67.96 BOE barrels of oil equivalent C AECO/GJ 5.74 3.38 BBL barrels of…
  67. July 2022 Corporate Presentation – Canadian Natural Resources (CNRL) – slide 67
    Advisory Reserves Notes: 1. Company Gross reserves are working interest share before deduction of royalties and excluding any royalty interests. 2. Information in the reserves data tables may not add due to rounding. BOE values and oil…

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