Canadian Natural Resources Limited Announces Closing of AOSP Swap Transaction and Updated 2025 Guidance

Executive Summary

• Canadian Natural completed an asset swap with Shell Canada, acquiring the remaining 10 % working interest in the Albian oil‑sands mines and attaining 100 % ownership of those assets.
• The transaction adds approximately 31,000 bbl/d of zero‑decline bitumen production, prompting an upward revision to 2025 production guidance (now 1,560–1,580 MBOE/d).
• Capital forecast for 2025 remains unchanged at roughly $5.9 bn operating capital (excluding $690 m unbudgeted acquisitions), despite the larger asset base.

Key Details

• Transaction Structure
• Canadian Natural swapped its 10 % working interest in the Scotford Upgrader and Quest CCS facilities for Shell’s remaining 10 % interest in Albian mines and related non‑producing leases.

• No cash consideration exchanged, aside from normal closing adjustments effective March 1 2025.

• Ownership Changes

• Canadian Natural now owns 100 % of the Albian oil‑sands mines (operated).

• Retains a non‑operated 80 % interest in Scotford Upgrader and Quest; Shell holds the remaining 20 % and remains operator.

• Production Impact

• Added 31,000 bbl/d of bitumen production (zero decline) to Canadian Natural’s portfolio.

• Updated 2025 production guidance (before royalties):

  • Total Liquids: 1,137–1,151 Mbbl/d
  • Total MBOE/d: 1,560–1,580 MBOE/d (≈15 % growth vs. 2024)

• Capital Forecast (2025)

• Operating Capital (excluding unbudgeted acquisitions): $5.915 bn
• Unbudgeted Acquisitions: $690 m (incl. Grande Prairie Montney assets, other deals)
• Carbon Capture & Office Move: $75 m

• Total Capital Forecast: $6.68 bn

• Operating Capital Allocation

• Conventional E&P: $3.14 bn

• Thermal & Oil‑Sands Mining & Upgrading: $2.775 bn

• Guidance Adjustments

• Production guidance reflects the added 31,000 bbl/d effective November 1 2025.

• No change to operating capital forecast despite larger asset base, due to prior $100 m capital reduction announced May 2025 and disciplined spending.

• Management Commentary

• President Scott Stauth highlighted the swap as a “significant milestone” enabling more efficient integration of Horizon and Albian mines and unlocking value through continuous‑improvement initiatives.

Notable Quotes

“This is a significant milestone for our Company, enabling more effective and efficient operations between our now 100 % owned Horizon and Albian mines… The transaction adds approximately 31,000 bbl/d of annual, zero decline, bitumen production to our portfolio, providing additional cash flow and driving long‑term value creation for our shareholders.” – Scott G. Stauth, President, Canadian Natural Resources Limited.