Canadian Natural Resources, Canada’s largest oil and gas producer, reported a significant drop in its net earnings for the fourth quarter of 2024. The company’s profit halved compared to the same period last year, as falling oil prices overshadowed record production levels.
For the fourth quarter, Canadian Natural reported net earnings of US$793 million (C$1.14 billion), a sharp decline from US$1.8 billion (C$2.6 billion) in the fourth quarter of 2023.
Full-year net income also decreased in 2024, as lower oil and gas prices continued to affect the company’s bottom line.
In December, Canadian Natural completed a major acquisition of oil sands and shale assets from Chevron for US$6.5 billion (C$8.8 billion). This deal was part of Chevron’s strategy to streamline its portfolio by selling off non-core assets. The assets acquired included a 20% non-operated stake in the Athabasca Oil Sands Project, a 70% operated interest in the Duvernay shale, and other related interests, all based in Alberta.
Thanks to this acquisition, Canadian Natural achieved record production levels both for the fourth quarter and the entire year. In 2024, the company reached an annual average production of 1,363,496 barrels of oil equivalent per day (boe/d), marking a 2% increase from 2023.
For Q4 2024, Canadian Natural reported a new record of 1,470,428 boe/d in average production, including record highs in both liquids and natural gas output. Production per barrel was up 4% compared to Q4 2023 and 8% higher than in Q3 2024.
However, the company also issued a cautionary statement about potential risks. It noted that future operations could be affected by political factors and regulatory changes, including production restrictions and tariffs. This warning comes in light of new tariffs imposed by the U.S. government on March 4, 2025, and subsequent Canadian countermeasures, both of which are expected to evolve.
Related Topics:
- Do Natural Gas Logs Need to Be Vented?
- Natural Gas vs Coal: Which Burns Better?
- How Much Natural Gas Does It Take to Run a Generator?