Canadian Natural Resources' (CNQ) leadership team has a well-defined plan and a history of capturing incremental value by acquiring assets that fit within its portfolio, RBC Capital Markets said in a note on Tuesday.

The analysts said CNQ's pending acquisition of Tourmaline's Peace River complex can fetch a valuation in the upper hundreds of millions, while its 2026 base capital investment budget of $6.3 billion would likely increase by less than the purchase price as it adjusts its spending plans.

RBC said that the company's operating performance, focus on shareholder returns, and free cash flow make it its favorite senior producer.

CNQ is focusing on market diversification for oil production in Canada over the Gulf Coast, but emphasizes that Canada's two-year regulatory process is too long, particularly versus the US, where the process for major projects takes months, the note said.

RBC maintained its outperformed rating and CA$61 ($44.56) price target on the stock.

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