Canadian Natural Allots $63.5MM for Carbon Capture

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Canadian Natural Allots $63.5MM for Carbon Capture

Canadian Natural Resources Ltd. is allotting $63.53 million (CAD 90 million) for carbon capture projects. The company is earmarking $4.34 billion (CAD 6.15 billion) for its operating capital budget, of which $2.26 billion (CAD 3.2 billion) will be for “conventional E&P” and $1.98 billion (CAD 2.8 billion) for “thermal and oil sands mining and upgrading,” […]

Canadian Natural Resources Ltd. is allotting $63.53 million (CAD 90 million) for carbon capture projects.

The company is earmarking $4.34 billion (CAD 6.15 billion) for its operating capital budget, of which $2.26 billion (CAD 3.2 billion) will be for “conventional E&P” and $1.98 billion (CAD 2.8 billion) for “thermal and oil sands mining and upgrading,” according to a recent news release.

Canadian Natural said it is aiming to drill 361 net wells across its crude oil and liquids-rich natural gas assets. The company’s program includes 97 net light crude oil wells, primarily in the Montney, Dunvegan and Mannville, as well as 82 net liquids-rich natural gas wells, primarily in its recently acquired Duvernay assets and in its Montney assets.

The company is also targeting to drill 174 heavy crude oil wells, of which 156 are multilateral wells primarily in the Mannville.

Canadian Natural has set a target production guidance range of 1.51 million barrels of oil equivalent per day (MMboepd) to 1.56 MMboepd in 2025, which represents growth of approximately 12 percent over 2024 levels, based on the midpoint of the range, according to the release.

Canadian Natural President Scott Stauth said, “Our 2025 operating capital budget of approximately $6 billion targets to deliver value growth and strong returns on capital”.

“This significant corporate growth includes the previously disclosed strategic acquisition of the AOSP and Duvernay assets completed in 2024. With our current shareholder returns framework, this growth is targeted to deliver production per share growth of 12 percent to 16 percent, based upon recent strip pricing,” Stauth added.

The company’s targeted production mix consists of approximately 47 percent high-value light crude oil, natural gas liquids (NGLs) and synthetic crude oil (SCO), 26 percent heavy crude oil and 27 percent natural gas, based upon the midpoint of its corporate production guidance. Natural gas production is targeted to range between 2.425 billion cubic feet per day (Bcfpd) to 2.48 Bcfpd, representing absolute growth of approximately 14 percent over 2024 levels, based on the midpoint of the 2025 range.

Canadian Natural CFO Mark Stainthorpe said, “With our disciplined 2025 capital budget, low maintenance capital requirements and a long-life low decline asset base, we target to generate strong returns on capital and continue to deliver returns to our shareholders while also reducing our net debt, as per the company’s free cash flow allocation policy”.

Last month, Canadian Natural closed the acquisition of Chevron Corp.’s stakes in producing and undeveloped oil sand, liquid and natural gas properties in Alberta province for $6.5 billion in cash.

The transaction consisted mainly of Chevron’s 20 percent interest in the Athabasca Oil Sands Project (AOSP) and 70 percent stake in the Duvernay play. It also included stakes in several other non-producing oil sands leases with aggregate acreage of about 100,000 net acres, according to an earlier statement.

The AOSP portion, which includes the Muskeg River and Jackpine mines, the Scotford Upgrader and the Quest Carbon Capture and Storage facility, has raised operator Canadian Natural’s stake to 90 percent. Shell plc holds the remaining 10 percent.

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