By Robb M. Stewart

Canadian Natural Resources' earnings fell in the first quarter as the Canadian energy company lifted production volumes but saw lower prices for oil and natural has liquids.

Canadian Natural, which has a portfolio of assets in North America, the U.K. North Sea and offshore Africa, recorded net earnings of 1.35 billion Canadian dollars (US$988.6 million), or C$0.64 a share, against C$2.46 billion, or C$1.17, a year earlier.

The result was held back by non-operating losses of C$1.1 billion related to items including the effects of share-based compensation, risk management activities, fluctuations in foreign exchange rates and realized foreign exchange on financing activities.

On an adjusted basis, per-share earnings from operations rose to C$1.17, topping the C$1.05 mean forecast of analysts polled by FactSet.

Product sales in the quarter totaled C$12.4 billion, up 16% over the prior quarter but down from C$12.71 billion in the same period of 2025.

Overall production before royalties for the first quarter hit about 1.64 million oil-equivalent barrels, up 3.8% on a year earlier. Crude oil and natural gas liquids volumes increased to almost 1.2 million barrels a day from 1.17 million in the same period the year before, while gas production before royalties was up 8.9% to 2.67 billion cubic feet per day.

The Calgary, Alberta, company in March said it is targeting production of between 1.615 million and 1.665 million barrels of oil equivalent a day in 2026.

Canadian Natural's realized crude oil and natural gas liquids prices were down roughly 5% from the first quarter of 2025, though up 18% over the final quarter of 2025. The realized natural gas price increased 6% year-over-year, and in its oil sands mining and upgrading segment its realized sales price decreased 6% from a year earlier but increased 18% from a quarter earlier.

Global crude oil benchmark prices rebounded during the first quarter as the conflict in the Middle East lifted concerns about possible supply disruptions. Canadian Natural said gas benchmark pricing remained supported during the quarter by winter seasonal demand and continued strength in liquefied natural gas exports from the U.S. Gulf Coast and in Canada by strong export demand from the Western Canadian Sedimentary Basin.

The company said the rise in commodity prices in recent months has helped it accelerate debt reduction, with net debt falling below C$16 billion. The company as a result said it has increased the pace of share buybacks, with C$309 million of shares picked up during April. The company's next targeted net debt level of C$13 billion approaches faster with increased free cash flows generated, it said.

Canadian Natural in March hit pause on a C$8.25 billion expansion of an oil sands mine in northern Alberta, citing uncertainty over government policies. Front-end engineering and design work has been deferred on the Jackpine mine expansion, and will only reassess the viability of the project when there is certainty on regulatory policies related to carbon pricing and methane and on project timing, it said.

The decision came not long after Canadian Natural stumped up about C$765 million for assets in Alberta's Peace River area.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

May 07, 2026 06:46 ET (10:46 GMT)

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