Canadian Natural Resources, the oil sands producer, announced this Thursday it is aming a 50% reduction on methane emissions; for its North American operations by 2030, from the 2016 baseline.
Firstly, the news comes as the company announces that it had beat second quarter profits estimates; pushed by higher oil prices. Also, it is the result of mounting pressure for upstream companies in Canada to align better to Canada’s goal on energy transition.
Secondly, the company also added that it plans to cut fresh water used to generate steam and mining fresh river water by 40% by 2026; from baseline of 2017.
Thirdly, as many other upstream companies in North America; Canadian Natural will join the buyback shares trend; announced it would set aside 50% of free e cash flow for share repurchases, once it reaches $15 billion in debt, expected in the fourth quarter.
Moreover, the company reported adjusted earnings of C$1.24 per share in the quarter ended June 30; beating analysts’ forecast of just 92 Canadian cents per share, according to Reuters, citing Refinitiv IBES data.
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Canadian Natural Resources with strong financial performance
In addition, the company reported a production of 1.14 million barrels of oil equivalent per day (boepd) in the reported quarter; slightly less than the 1.25 million boepd produced in first quarter.
Furthermore, as to the company’s financial performance, Canadian Natural’s Chief Financial Officer, Mark Stainthorpe, said. “Canadian Natural’s robust business model and world class assets delivered strong adjusted funds flow in Q2/21; of approximately $3.05 billion, resulting in approximately $1.5 billion in free cash flow; after dividends and capital expenditures, excluding acquisitions.”
He also remarked. “In Q2/21, we reduced net debt by approximately $1.7 billion; as we repaid and retired the remaining $2.125 billion on our non-revolving term loan; originally maturing in June 2022. In addition, subsequent to quarter end, we exercised the par call option on our US$0.5 billion November 2021 public bond; allowing us to repay the bond early in August 2021, capturing interest cost savings and further retiring absolute debt.”
Finally, Tim McKay, President of Canadian Natural, concluded. “Canadian Natural is in a strong position, as our vast and diverse asset base delivered strong operational and financial results in Q2/21; as we achieved production volumes of approximately 1,142 MBOE/d in the quarter; notwithstanding the planned turnaround at our Oil Sands Mining and Upgrading operations.”
