Canadian Natural Resources bumped up its production target for the year after record crude oil output in the second quarter alongside higher prices drove a jump in earnings.

The Canadian energy company, which has a portfolio of assets in North America, the U.K. North Sea and offshore Africa, recorded net earnings of 4.5 billion Canadian dollars (US$3.21 billion), or C$2.15 a share, against C$1.35 billion, or C$0.64, a year earlier

On an adjusted basis, per-share earnings from operations increased to C$4.57 billion, or C$2.19 per share, the highest in the company's history. Analysts polled by FactSet expected C$2.01 a share.

Product sales in the quarter totaled C$17.21 billion, a 39% increase from C$12.4 billion in the same period of 2025.

Total production before royalties for the second quarter reached about 1.68 million barrels of oil equivalent a day, up 18% from a year ago, and just ahead of the 1.66 million barrels analysts expected.

The Calgary, Alberta, company notched record quarterly crude oil and natural gas liquids output during the period of almost 1.25 million barrels a day, a rise of 23% on the same quarter last year and up 4% from the first quarter of 2026. The company also hit the highest quarterly oil sands mining production in its history, averaging about 625,000 barrels a day in the quarter. Natural gas production rose 7% year-over-year, though was down about 4% on the prior quarter.

For the second time this year Canadian Natural increased its annual production target, and is now guiding for total output of between 1.64 million and 1.68 million oil-equivalent barrels a day. That marks an increase of 20,000 barrels at the midpoint of its previous target.

Canadian Natural's realized price for crude oil and natural gas liquids averaged an increase of 51% on a year earlier, but the realized natural gas price decreased 21%.

Canadian Natural and the other big oil sands producers operating in Canada's west last month reached a deal with the federal and Alberta governments to push ahead with a carbon storage project, a development Ottawa has tied to approval for a new pipeline that would carry oil from Alberta to the west coast and on to export markets. Earlier in July, Prime Minister Mark Carney's government and Alberta agreed to support the pipeline that would to carry about 1 million barrels of oil daily.