Canadian Natural Resources targets 25% capex boost
Canadian Natural Resources Limited (CNRL), Canada’s largest oil and gas producer, said January 11 it was targeting a 25% increase in capital spending for 2022 that it said would allow for a modest increase in production – including an 18% boost in natural gas output – and continued distribution of 50% of free cash flow to shareholders.
Base capital expenditures of about C$3.6bn (US$2.85bn) will deliver targeted production in the 1.27mn-1.32mn barrels of oil equivalent (boe)/day, CNRL said, while another C$700mn of “strategic growth capital” would be allocated to its long-life, low decline oil sands assets, adding incremental production in 2023 and beyond, totalling about 63,000 barrels/day by 2025.
CNRL’s natural gas production will benefit the most from the base capital expenditure increase, rising to 1.98bn-2.03bn ft3/day in 2022 from 1.69bn ft3/day forecast for 2021. Liquids production – conventional crude oil and natural gas liquids and thermal oil sands mining and upgrading – will hold in the 940,000-982,000 b/d range compared to 2021 forecast production of 953,000 b/d.