CALGARY — Canadian Natural Resources Ltd. raised its production outlook for 2026 after posting record quarterly crude oil production and stronger second-quarter earnings, driven in part by higher oil prices and continued growth in Alberta’s oil sands.
The Calgary-based producer said total production averaged 1.68 million barrels of oil equivalent per day during the second quarter, up 18 per cent from the same period last year.
The company also achieved record quarterly crude oil and natural gas liquids production of nearly 1.25 million barrels per day, a 23 per cent increase year over year. Oil sands mining production reached a record average of about 625,000 barrels per day during the quarter.
Canadian Natural raised its full-year production forecast for the second time this year. The company now expects average production of between 1.637 million and 1.682 million barrels of oil equivalent per day in 2026, an increase from its previous guidance.
The higher outlook reflects strong conventional drilling results and assets acquired during the second quarter.
Financial results also exceeded analyst expectations.
Canadian Natural reported adjusted earnings of $2.19 per share for the quarter ended June 30, ahead of analyst estimates. Net earnings rose to $4.5 billion from $1.35 billion a year earlier, while product sales increased 39 per cent to $17.2 billion.
The company said stronger crude prices helped drive the results. Its realized price for exploration and production liquids increased 51 per cent from a year earlier, while realized synthetic crude oil prices climbed 44 per cent.
Canadian Natural said synthetic crude traded at an average premium of $8.37 per barrel above the U.S. benchmark West Texas Intermediate crude during the quarter. The company attributed the stronger pricing to higher refinery demand, supply disruptions linked to conflict in the Middle East and weather-related production impacts in Western Canada.
The results continue a strong earnings season for Canada’s major oil sands producers. Reuters reported higher crude prices and years of investment in lower-cost operations have supported cash flow across the sector, while stronger demand for synthetic crude has widened price premiums.
Canadian Natural also noted recent progress on a proposed carbon capture and storage project involving Canada’s largest oil sands producers. The project is tied to a proposed new pipeline from Alberta to the British Columbia coast, following an agreement between the federal and Alberta governments announced earlier this summer.
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