Canadian Natural Resources Limited · TSX:CNQ
Canadian Natural Resources — Investor Presentation (December 2021)
74 slides from Canadian Natural Resources's investor presentation, December 2021
Slide 1: Canadian Natural Corporate Presentation December 2021
Canadian Natural CORPORATE PRESENTATION December 2021
Slide 2: Canadian Natural Advantages
Canadian Natural Advantages Large, Long Life Low Decline Asset Base Diversified Asset Base & Product Mix Flexible Capital Allocation / Effective & Efficient Operations Low Maintenance Capital Leading Free Cash Flow Generation CANADIAN NATURAL’S COMPETITIVE ADVANTAGES 4
Slide 3: Q3/21 Quarterly Operational Highlights
Canadian Natural Q3/21 Quarterly Operational Highlights • BOE production of ~1,238 MBOE/d 11% increase over Q3/20 • Liquids production of ~953 Mbbl/d 8% increase over Q3/20 ‒ NA E&P liquids, including thermal in situ production of ~459 Mbbl/d ‒ Top tier Oil Sands Mining and Upgrading production in O
Slide 4: Balanced, Diverse Portfolio
Balanced, Diverse Portfolio • Balanced, diverse production mix North Sea ‒ Long Life Low Decline production ~80% of liquids North America • International Brent exposure • Vast, balanced resource base to develop • Light crude oil and SCO production ~47% of BOE • Natural gas ~23% of BOE Offshore Afric
Slide 5: Canadian Natural's Assets are Unique
Canadian Natural’s Assets are Unique Robust Through All Cycles • Long life low decline assets provide sustainable production and free cash flow even in lower price environment • Ability to ramp up production faster with improving prices • Exercising capital flexibility by reducing spend • Low capita
Slide 6: Canadian Natural's Advantage
Canadian Natural’s Advantage Low Corporate Decline Rate 2021F BOE Production Mix Oil Sands Mining Long Life & Upgrading Low Decline ~0% Decline Production ~61% Pelican & Thermal ~13% Decline ~10% Corporate Decline Rate Conventional & Unconventional Conventional & ~19% Decline Unconventional Producti
Slide 7: 1P Reserves After Royalties
1P Reserves After Royalties 2020 ~61% of reserves are high value SCO Reserve Life Index ~30 years* 0 5,000 10,000 15,000 20,000 (MMBOE) Global Peers Peers include: BP, COP, CVX, RDS, SU, TTE and XOM. *Reserve Life Index based upon 2020 Net Proved reserves, based on SEC constant prices and costs over
Slide 8: Net Debt to Reserves
Net Debt to Reserves 2020 (US$/BOE) $10.00 $8.00 $6.00 Peer Average $4.00 $2.00 $0.00 Global Peers Source: Company reports. Peers include BP, COP, CVX, RDS, SU, TTE and XOM. Note: See Advisory for cautionary statements, definitions, pricing assumptions and non-GAAP and other financial measures discl
Slide 9: Free Cash Flow Yield 2021F
Free Cash Flow Yield 2021F (%) 18% World class long life low decline assets Disciplined capital low maintenance capital 16% Top tier effective & efficient operations 14% 12% Peer Average 10% 8% Free Cash Flow $8,200 $5,000 $18,200 $13,400 $20,500 $10,300 $21,100 $26,700 ($US million) Global Pe
Slide 10: Debt to Cash Flow 2021F
Debt to Cash Flow 2021F (x) 1.8 1.6 1.4 Peer Average 1.2 1.0 0.8 0.6 Global Peers Source: RBC Global Integrated & E&P Comparative Valuation – October 21, 2021. Peers include BP, COP, CVX, RDS, SU, TTE and XOM. STRONG FINANCIAL POSITION 12
Slide 11: Enterprise Value to Debt Adjusted Cash Flow 2021F
Enterprise Value to Debt Adjusted Cash Flow 2021F (x) 8.0 Canadian Natural is a significant investment opportunity 7.0 Peer Average 6.0 5.0 4.0 Global Peers Source: RBC Global Integrated & E&P Comparative Valuation – October 21, 2021. Peers include BP, COP, CVX, RDS, SU, TTE and XOM. SIGNIFICANT UPS
Slide 12: 2021F Capital & Production
Canadian Natural 2021F Capital & Production Capital Expenditures ($ million) 2020 2021F Total(1) $2,701 $3,480 2021F Maintenance Capital ~$3.0 billion Targeted Production 2020 2021F % Change(2) Natural Gas (MMcf/d) 1,477 1,680 - 1,720 ~15% Total Liquids (Mbbl/d)(3) 918 940 - 980 ~5% Total MBOE/d 1,1
Slide 13: Capital Discipline
Capital Discipline • Balance and optimize the four pillars of capital allocation ‒ Flexible capital allocation maximizes shareholder value • Further strengthen balance sheet Maximizing Shareholder Value ‒ Maintain investment grade credit ratings • Sustainable and growing dividend • Disciplined capit
Slide 14: Operational Excellence
Operational Excellence • Area knowledge, extensive infrastructure and operatorship • Top tier effectiveness and efficiency • Strong history of capturing margin growth opportunities • Process optimization and improvement • Technology and innovation • Economies of scale STRONG HISTORY OF EFFECTIVE & E
Slide 15: Near- & Mid-Term Growth Potential
Canadian Natural Near- & Mid-Term Growth Potential 70,000 bbl/d - 80,000 bbl/d of liquids* Conventional & Unconventional 300 MMcf/d - 350 MMcf/d of natural gas Thermal In Situ Pad additions 90,000 bbl/d - 100,000 bbl/d of bitumen Oil Sands Mining & Upgrading 35,000 bbl/d - 45,000 bbl/d of SCO Total
Slide 16: Financial Strength
Financial Strength
Slide 17: Q3/21 Quarterly Financial Highlights
Canadian Natural Q3/21 Quarterly Financial Highlights • Significant adjusted funds flow ~$3.6 billion ‒ Free cash flow ~$2.2 billion(1) • Increasing returns to shareholders ~$1.1 billion ‒ Quarterly dividend increased 25% to $0.5875 per common share payable in January 2022 2022 will mark the 22nd
Slide 18: 2021F Free Cash Flow
Canadian Natural 2021F Free Cash Flow ($ billion) $14 ~US$39 WTI ~US$66 WTI $12 $10 $8 $6 Dividend(2) $4 Dividend (1) $2 $0 (3) (3) 2020 2021F (1) Actual 2020 dividends. (2) Actual 2021 dividends. Capital Free Cash Flow (3) Excludes net acquisition costs. Note: See Advisory for cautionary statements
Slide 19: Free Cash Flow Allocation Policy
Free Cash Flow Allocation Policy • Currently repurchasing ~1% of common shares outstanding ~11 million shares per quarter • Free cash flow allocation policy once $15 billion of absolute debt is reached Q4/21 Adjusted Funds Flow Less: Budgeted Capital Expenditures Less: Dividends 50% Free Cash Flow 5
Slide 20: Dividend Sustainability Through the Cycle
Dividend Sustainability Through the Cycle 2019 vs. Q3 2021 Change (%) 60% CNQ increased dividend in November 2021 2 peers decreased their dividend 50% 1 peer reinstated their dividend 40% 4 peers increased their dividend 30% 20% 10% 0% -10% (49%) (51%) Global Peers Source: Company reports. Based upo
Slide 21: Long-Term Dividend Growth vs. Global Peers
Long-Term Dividend Growth vs. Global Peers 10 Year CAGR (% CAGR) 22% 18% 14% 10% 6% Peer Average 2% -2% -6% Global Peers Peers include: Peers include BP, COP, CVX, FP, RDS, SU and XOM. Note: Annual 2012 to 2021. 2021 based upon latest announced quarterly dividend, annualized, as at November 4, 2021,
Slide 22: Returns to Shareholders
Canadian Natural Returns to Shareholders ($ million) Potential Incremental returns to shareholders through 4,000 free cash flow policy 3,500 22 years of consecutive dividend increases ~20% CAGR since inception 3,000 2,500 Horizon 2,000 Phase 3 complete 1,500 1,000 Horizon Phase 1 500 build years 0 2
Slide 23: Robust Financial Position
Canadian Natural Robust Financial Position Long-Term Ratings Outlook Short-Term Ratings DBRS BBB High Stable R-2 Standard & Poor’s BBB- Stable A-3 Moody’s Baa2 Stable P-2 • Balance Sheet strength as at September 30, 2021 • Debt to book capitalization ~31% • Debt to adjusted EBITDA ~1.2x • Significan
Slide 24: Balanced Credit Facility Profile
Canadian Natural Balanced Credit Facility Profile Revolving Credit Facilities (C$ million) Fully Drawn Term Credit Facilities* (C$ million) June 2022* $2,425 February 2023 $1,000 June 2023* $2,425 February 2023 $1,150 Operating demand loan $100 Total $2,150 North Sea operating line (£5 million) $9 T
Slide 25: Balance Sheet Strength
Canadian Natural Balance Sheet Strength Debt/Cash Flow (x) 5.0 • Strengthening metrics through the cycle • Prudent free cash flow allocation 4.0 4.1x • Priority towards absolute debt repayment 3.0 2.0 Net debt has been reduced by 1.0 ~$5.8 billion YTD(1) ~1.0x 0.0 2020 2021F(2) Debt to Book Cap 40%
Slide 26: Financial Strength Summary
Canadian Natural Financial Strength Summary • Balance Sheet Strength ‒ Maintained debt levels in 2020 ‒ Significant further debt reduction in 2021 Maximizing Shareholder Value • Returns to Shareholders ‒ Increasing dividends Leading • 22nd consecutive year ~20% CAGR* Balance Resource Opportunistic S
Slide 27: Canadian Natural Advantages 2021 Summary
Canadian Natural Advantages 2021 Summary • World class asset base ‒ ~83% of reserves are Long Life Low Decline(1) ~80% of total liquids production(2) No decline, high value net SCO production capacity ~475,000 bbl/d Top tier corporate decline rate ~10% • Diversified across products and basins ‒
Slide 28: 2021 Summary (cont'd)
Canadian Natural Advantages 2021 Summary (cont’d) • Increasing returns to shareholders ~$3.1 billion YTD* ‒ Sustainable and growing dividend Increased quarterly dividend by 25% in November 2021 second dividend increase of the year 22 consecutive years of dividend increases ~20% CAGR since incept
Slide 29: Asset Overview
Asset Overview
Slide 30: Natural Gas, Light Crude Oil & NGLs Core Area Summary
Natural Gas, Light Crude Oil & NGLs Core Area Summary • Large, Canadian, natural gas producer ‒ Q3/21 ~1,700 MMcf/d ‒ Q3/21 operating costs $1.14/Mcf • Significant light crude oil and NGL production base in Canada ‒ Q3/21 ~89,000 bbl/d ‒ Q3/21 operating costs $16.19/bbl • High return international l
Slide 31: Montney
Natural Gas, Light Crude Oil & NGLs Montney Lean Gas (<10 bbl/MMcf) Liquids Rich Gas (10-100 bbl/MMcf) • Large inventory of defined drilling opportunities Light Oil • Large contiguous Montney land holdings BC AB ‒ ~1.3 million net acres Umbach Townsend West Nig • Top tier key liquids rich natural ga
Slide 32: BC Montney – Defined Plan
Natural Gas, Light Crude Oil & NGLs BC Montney – Defined Plan • Townsend ‒ Strong Q3/21 production of 284 MMcf/d ‒ 6 net well pad on stream in Q2/21 Drill to fill average capital efficiency of ~$4,000/BOE/d ‒ ~700 defined locations* Septimus ‒ Owned processing capacity of ~150 MMcf/d and ~9,000 bb
Slide 33: BC Montney Drilling & Completion Costs
Natural Gas, Light Crude Oil & NGLs BC Montney Drilling & Completion Costs Drilling Performance Frac Performance ($/metre) ($/tonne) $500 $950 $850 $450 $750 $400 $650 $350 $550 $450 $300 $350 $250 $250 2017 2020 2017 2020 CONTINUOUS IMPROVEMENT MAXIMIZES VALUE 35
Slide 34: Greater Wembley Area – Defined Plan
Natural Gas, Light Crude Oil & NGLs Greater Wembley Area – Defined Plan • Strategically owned plant capacity of ~205 MMcf/d Sexsmith Gas Plant • ~153 sections undeveloped land in Greater Wembley ‒ De-risked by proven production ‒ ~495 defined locations* Wembley ‒ ~190 additional locations* in emergi
Slide 35: Infrastructure Advantage
Natural Gas, Light Crude Oil & NGLs Infrastructure Advantage • Extensive owned and controlled infrastructure Umbach ‒ Drives costs lower West Nig Townsend ‒ Strategic infrastructure proximal to liquids rich land base Graham • Low capital exposure drill to fill strategy Stoddart Septimus ‒ Flexible t
Slide 36: Natural Gas, Light Crude Oil & NGLs Summary
Natural Gas, Light Crude Oil & NGLs Summary • Leveraging Canadian Natural’s competitive advantages ‒ Large, diverse, balanced asset base ‒ Owned and controlled infrastructure ‒ Flexible capital allocation ~2,500 defined locations* ‒ Effective and efficient operations ‒ Technology and innovation *Ass
Slide 37: Heavy Crude Oil Core Area Summary
Heavy Crude Oil Core Area Summary ~500 km • Largest primary heavy crude oil producer Cliffdale in Canada Pelican Lake ‒ Q3/21 ~63,900 bbl/d ‒ Q3/21 operating costs $19.51/bbl AB SK Smith • Industry leading polymer flood at Pelican Lake ‒ Q3/21 ~53,900 bbl/d ‒ Q3/21 operating costs $5.90/bbl CNQ Land
Slide 38: Heavy Crude Oil Horizontal Multilateral & Fishbone Wells
Technology & Innovation Heavy Crude Oil Horizontal Multilateral & Fishbone Wells Multilateral & Fishbone • Multilateral technology unlocks multi-year low-risk development opportunities ‒ Benefits: Increased recovery up to 30x over vertical wells Higher initial crude oil rates Lower per barrel
Slide 39: Pelican Lake Operating Costs
Pelican Lake Operating Costs • Leveraging area and technological ($/bbl) $9.00 expertise, economies of scale to drive value growth ‒ Facility consolidations $8.00 ‒ Improved polymer quality and price ‒ Consolidation of power contracts Q4/17 $7.00 Acquisition ‒ Elimination of underutilized camps ‒ Re
Slide 40: Heavy Crude Oil Summary
Heavy Crude Oil Summary • Leveraging Canadian Natural’s competitive advantages ‒ Large, diverse, balanced asset base ‒ Owned and controlled infrastructure ‒ Flexible capital allocation ~3,000 defined locations* ‒ Effective and efficient operations ‒ Technology and innovation *Assumes US$45/bbl WTI,
Slide 41: Thermal In Situ Oil Sands Asset Overview
Thermal In Situ Oil Sands Asset Overview CNQ Thermal Producing Properties Birch Mtn. • Long Life Low Decline assets CNQ In Situ Project Inventory Peers ‒ ~122 billion barrels BIIP(1) Ells River • Facility capacity of ~340,000 bbl/d(2) Liege ‒ Q3/21 ~248,100 bbl/d Gregoire ‒ Q3/21 operating costs $12
Slide 42: Primrose / Wolf Lake Overview
Thermal In Situ Oil Sands Primrose / Wolf Lake Overview • Total facility capacity ~140,000 bbl/d • Leverage annual unutilized facility capacity of ~60,000 bbl/d Primrose North ‒ Future pad adds capital efficiency ~$10,000/bbl/d(1) Primrose East ‒ Average CSS production of ~400 bbl/d per well(2) ‒ Co
Slide 43: Kirby / Jackfish SAGD Overview
Thermal In Situ Oil Sands Kirby / Jackfish SAGD Overview • Total facility capacity of ~200,000 bbl/d(1) Kirby Jackfish • Leverage annual unutilized facility capacity North of ~35,000 bbl/d ‒ Future pad adds capital efficiency ~$8,000/bbl/d(2) ~6% reduction from 2020F ‒ Construction of 4 new pads t
Slide 44: Solvents – Reducing GHG Emissions Through Steam Efficiencies
Technology & Innovation Solvents – Reducing GHG Emissions Through Steam Efficiencies • Co-injecting solvent with steam ‒ Kirby South is currently piloting solvent SAGD SOR and GHG intensity reduction of ~45% Steam Assisted Gravity Drainage Solvent recovery of ~85% (SAGD) • Next steps: ‒ Primrose
Slide 45: Thermal In Situ Oil Sands Summary
Thermal In Situ Oil Sands Summary • Large, Long Life Low Decline asset base • Capture low cost opportunities with annual unutilized capacity of ~95,000 bbl/d • Leveraging technology and innovation Solvents ‒ Significant GHG emission improvements ‒ Operating cost, energy and water use reductions • Po
Slide 46: Oil Sands Mining & Upgrading
Oil Sands Mining & Upgrading • Industry leading oil sands mine operator ‒ Net capacity ~475,000 bbl/d of SCO CNQ Operating Oil Sands Mines CNQ Lands • No decline, reservoir risk or reserve replacement cost ‒ 50+ year reserve life(1) • Significant resource in place Horizon ‒ ~17.5 billion barrels BII
Slide 47: Oil Sands Mining & Upgrading Plant Capacity Utilization
Oil Sands Mining & Upgrading Plant Capacity Utilization (%) 90% 80% 70% 1 year 2 year CNQ Peer Average Note: Sourced from TD research: Mine your own Business reports, includes trailing data as of July 2021 Peers Include: IMO Kearl, SU Base, SU Fort Hills and Syncrude. CONTINUOUS IMPROVEMENT DRIVES H
Slide 48: Oil Sands Mining & Upgrading Operating Costs
Oil Sands Mining & Upgrading Operating Costs ($/bbl) $45.00 $40.00 Over a 50% reduction in operating costs $35.00 Equates to a $30.00 ~$3.5 billion reduction in annual $25.00 operating costs in 2020* $20.00 $15.00 $10.00 2013 * 2013 * 2020 2020 (C$) (US$) (C$) (US$) Cash Costs Fuel Costs *2013 opera
Slide 49: Horizon Oil Sands Mid-Term Opportunities
Horizon Oil Sands Mid-Term Opportunities • Opportunities provide incremental economic production ‒ Incremental 35,000 bbl/d - 45,000 bbl/d of SCO • Reliability improvements ‒ Diluent Recovery and Vacuum Distillate Units Potential operating cost • Potential future production reliability savings of an
Slide 50: In-Pit Extraction Process (IPEP)
Technology & Innovation In-Pit Extraction Process (IPEP) • IPEP is a modular extraction plant that separates bitumen in the mine pit • Benefits ‒ Reduces GHG emissions by ~40% ‒ Eliminates tailings ponds, as it produces dry stackable tailings IPEP Field Pilot at Horizon ‒ Significant potential recla
Slide 51: Oil Sands Mining & Upgrading Summary
Oil Sands Mining & Upgrading Summary • Long Life, no decline assets ‒ ~475,000 bbl/d net capacity • Capturing synergies through technology and innovation ‒ Reliability and capacity increases ‒ In-Pit Extraction Process • Effective and efficient operations ‒ Continuous improvement drives cost savings
Slide 52: Environmental, Social & Governance
Environmental, Social & Governance
Slide 53: 2020 Environmental Achievements
2020 Environmental Achievements • Canadian Natural's corporate GHG emissions intensity continues to improve ‒ Decreased by 18% from 2016 levels ‒ Decreased by 2% from 2019 levels • One of the largest owners of Carbon Capture and Storage and sequestration capacity globally ‒ Quest CCS facility marked
Slide 54: New Environmental Targets
Strong Commitment to Improving Performance New Environmental Targets 50% in E&P methane emissions by 2030 from 2016 baseline Reduction 40% in in situ fresh water intensity Reduction by 2026 from 2017 baseline 40% in mining fresh water intensity Reduction by 2026 from 2017 baseline DELIVERING GAME CH
Slide 55: The World Needs More Canadian Energy
The World Needs More Canadian Energy (Aggregate ESG Score) 300 Environment(1) Social(2) 250 Governance(3) 200 Average 150 100 50 0 (1) 2020 Yale Environment Protection Index (EPI). (2) 2021 Social Progress Index (SPI) prepared by Social Progress Imperative. (3) 2020 World Governance Indicators (WGI)
Slide 56: Canadian Natural Has Delivered Advancing Innovation
Canadian Natural Has Delivered Advancing Innovation • Recognize the need to reduce GHG emissions ~$3.9 Billion • Leverage technology and Canadian ingenuity Invested in Research & Development* • Opportunities to reduce emissions further ~$48 Million Invested in GHG research & technologies in 2020 R
Slide 57: Continuous Improvement in GHG Emissions
Continuous Improvement in GHG Emissions Corporate GHG Emissions Intensity (tonnes CO2e/BOE) 0.075 0.070 ~32% 0.065 Reduction in GHG intensity since 2012 0.060 Equivalent to removing 0.055 ~1.9 million Cars off the road annually* 0.050 0.045 2012 2013 2014 2015 2016 2017 2018 2019 2020 *Go forward es
Slide 58: Leading Canadian Oil Sands Intensity
Leading Canadian Oil Sands Intensity GHG Emissions Intensity (kgCO2/bbl) 80 70 60 50 ~35% 40 Lower than total peer upstream scope 1 average 30 20 10 0 Total Peer Oil Sands Total peer average includes all Canadian thermal in situ and oil sands mining peer assets. Source: Facility Greenhouse Gas Repor
Slide 59: Journey to Net Zero
Technology & Innovation Journey to Net Zero Near-Term Actions Medium-Term Actions Long-Term Actions • IPEP pilot • IPEP commercialization • Carbon capture and conversion (carbon fibers, asphalts, plastics) • Solvent EOR pilots • Solvent EOR commercialization • Molten carbonate fuel cells • Enhanced
Slide 60: Oil Sands Pathways to Net Zero Initiative
Oil Sands Pathways to Net Zero Initiative • Canada’s largest oil sands producers form an alliance to achieve net zero GHG emissions ‒ Members includes Canadian Natural, Cenovus, ConocoPhillips Canada, Imperial, MEG and Suncor ‒ Progressing towards Canada’s climate goals ‒ The initiative targets a nu
Slide 61: Carbon Capture & Sequestration / Storage Technology
Carbon Capture & Sequestration / Storage Technology Quest TOP TIER CO2 capturer & sequesterer in the world(1) • Reduced CO2 footprint • Reduced CO2 charges Tonnes/Year Equivalent to Horizon Quest(2) ~1.1 million removing Horizon ~0.4 million ~576,000 NWR(3) ~1.2 million Cars off the Total ~2.7 milli
Slide 62: Industry Leading Safety Performance
Industry Leading Safety Performance (Per 200,000 Hours) 0.75 ~25% 0.50 TRIF reduction vs 2019 ~58% 0.25 TRIF reduction vs 2016 0.00 2016 2017 2018 2019 2020 Total Recordable Injury Frequency TARGET: NO SAFETY INCIDENTS, NO HARM TO PEOPLE 64
Slide 63: Investing in Indigenous Communities
Investing in Indigenous Communities ~$490 Million In contracts with local indigenous businesses in 2020 >$1.0 Billion In last 2 years Canadian Natural works with ~160 Indigenous businesses Fort McKay Métis Elder and Fort McKay First Nation Cultural & Special Events Lead with Canadian Natural staff d
Slide 64: Governance: Risk Assessment & Mitigation
Governance Risk Assessment & Mitigation • Strong track record of identifying, assessing, adapting, aligning and executing • Board of Directors as well as Board Governance and Risk Committees ‒ Review and hold management accountable to identify and mitigate risks • Strong, effective strategies to pla
Slide 65: Management Aligned With Shareholders
Management Aligned With Shareholders Management Ownership (% of Outstanding Shares) 2.5% ~2.3% 2.0% Substantial Management & Director invested wealth delivers clear alignment with shareholder interests 1.5% 1.0% 0.5% 0.0% Peers Integrated Peers Peers include APA, COP, CVE, DVN, EOG, IMO, OVV, PXD an
Slide 66: The Strength of Canadian Natural's Business Model
The Strength of Canadian Natural’s Business Model • Leaders in ESG performance • Advantaged assets ‒ Long life low decline assets ‒ Effective and efficient operations • Leverage technology, innovation and continuous improvement ‒ Delivered game changing environmental performance ‒ Track record of co
Slide 67: Advisory: Forward-Looking Statements
Advisory Special Note Regarding Forward-Looking Statements Certain statements relating to Canadian Natural Resources Limited (the "Company") in this document or documents incorporated herein by reference constitute forward-looking statements or information (collectively referred to herein as "forwar
Slide 68: Advisory: Non-GAAP Financial Measures
Advisory Special Note Regarding non-GAAP Financial Measures This presentation includes references to financial measures commonly used in the crude oil and natural gas industry, such as: adjusted net earnings (loss) from operations, adjusted funds flow and net capital expenditures. These financial me
Slide 69: Advisory: Cautionary Statement
Advisory Cautionary Statement Project progress and financial results are dependent upon economic and regulatory conditions, commodity prices, global economic factors, project sanction and capital allocation. Thermal In Situ Oil Sands Overview – Clearwater, McMurray, Bluesky, Grand Rapids and Grosmon
Slide 70: Advisory: Pricing Assumptions and Glossary
Advisory Pricing Assumptions 2021F* 2020 2019 Strip US$ WTI/bbl $ 66.31 $ 39.40 $ 57.04 C$ AECO/GJ $ 3.29 $ 2.12 $ 1.54 SCO Diff/(Prem) US$/bbl $ 1.69 $ 3.14 $ 0.69 WCS Differential US$/bbl $ 12.94 $ 12.57 $ 12.79 FX 1.00 US$ = X C$ $ 1.25 $ 1.34 $ 1.33 *Strip pricing as of July 26, 2021. Glossary o
Slide 71: Advisory: Non-GAAP and Other Financial Measures
Advisory NON-GAAP AND OTHER FINANCIAL MEASURES This presentation includes references to non-GAAP and other financial measures used by the Company to evaluate its financial performance, financial position or cash flow. These specified financial measures include non-GAAP financial measures, non-GAAP r
Slide 72: Advisory: Free Cash Flow
Advisory Free Cash Flow Free cash flow is a non-GAAP measure that represents cash flows from operating activities as presented in the Company's consolidated Statements of Cash Flows, adjusted for the net change in non-cash working capital from operating activities, abandonment, certain movements in
Slide 73: Advisory: Reserves Notes
Advisory Reserves Notes: 1. Company Gross reserves are working interest share before deduction of royalties and excluding any royalty interests. 2. Information in the reserves data tables may not add due to rounding. BOE values and oil and gas metrics may not calculate exactly due to rounding. 3. Fo
Slide 74: Canadian Natural
Canadian Natural PROVEN EFFECTIVE STRATEGY
Canadian Natural Resources — Investor Presentation (December 2021) on 6ix