Canadian Natural Resources barrels ahead with oilsands expansion

CALGARY -- Canadian Natural Resources Ltd. (TSX:CNQ) says it's committing $2 billion of this year's capital budget to advancing its Horizon project and then expects the oilsand operation's funding requirements to drop in 2017 and thereafter.

See Full Article

The Calgary-based company views Horizon as a key part of its future business plan, as it depends less on conventional sources of oil and gas.

The full 2016 capital budget, including spending on Horizon Phases 2B and 3, has been set at between $3.5 billion and $3.9 billion.

CNRL says the Horizon expansion budget will drop to $1 billion in 2017 and to zero in 2018, after Phase 3 starts production in next year's fourth quarter.

The budget projection was contained in CNRL's latest financial report, which showed it eked out a small profit in the fourth quarter but ended 2015 with a full-year net loss of $637 million or 58 cents per share.

The three months ended Dec. 31 showed $131 million of net income or 12 cents per share, which was an improvement over the third quarter but down from nearly $1.2 billion or $1.09 per share in the fourth quarter of 2014.

The fourth quarter of 2015 included $181 million of favourable tax items and, without them CNRL would have had a loss.

Revenue dropped to $2.8 billion from $4.4 billion in the fourth quarter of 2014, but gains from the sale of properties increased to $690 million from $137 million.

After adjustments to exclude certain items, CNRL's operations lost $49 million or four cents per share in the fourth quarter and cash flow from operations dropped to $1.38 billion or $1.26 per share.

The company says the weakening of the Canadian dollar provided some buffer from the collapse of oil and gas prices that began in late 2014, since global commodity prices are in U.S. currency that's translated for the company's financial reports.

In the comparable period of 2014, Canadian Natural had $756 million of adjusted earnings from operations or 69 cents per share and cash flow from operations was $2.37 billion or $2.16 per share.

"Canadian Natural currently has in place sufficient liquidity to ensure the funding of all targeted activities in 2016 and 2017," CNRL chief financial officer said in a statement.

"By the fourth quarter of 2016, annualized cash flow will then be in a position to cover all base annual capital and current annualized dividend requirements."


Latest Economic News

  • Trump's goal of 'energy dominance' could change the global balance of power

    Economic CBC News
    Fuelled by technological breakthroughs and cuts to taxes and regulation, the United States is on target to become the world's biggest producer of crude oil in the next five years. Let that sink in. The U.S will be bigger than Russia and Saudi Arabia. Source
  • How to avoid spending money on unnecessary oil changes

    Economic CBC News
    Oil changes are by far the most common service performed on vehicles in Canada. Customers pay quick lube facilities, private garages and dealer maintenance centres well over a billion dollars a year for the service. But a CBC investigation finds many of us may be changing our oil far more often than automakers require. Source
  • Trans Mountain protester arrested, one day after court grants injunction

    Economic CTV News
    BURNABY, B.C. -- Burnaby RCMP say they arrested a woman who chained herself to a work truck Friday morning, one day after the B.C. Supreme Court granted Trans Mountain an injunction against demonstrators. Just before 8 a.m. Source
  • Enbridge, TransCanada shares flat after steep dive due to U.S. tax ruling

    Economic CTV News
    CALGARY -- Shares in Canadian pipeline companies Enbridge Inc. and TransCanada Corp. failed to recover fully Friday from a steep sell-off on Thursday after the U.S. said it would eliminate a tax break for owners of certain interstate pipelines. Source
  • WestJet union drive helped by unhappiness with pay formula, says flight attendant

    Economic CTV News
    MONTREAL -- A WestJet flight attendant says rules that effectively pay starting workers less than minimum wage because they're compensated only for time in the air is helping shore up support for a union drive at Canada's second-largest airline. Source
  • Sask. premier blasts 'mind-boggling' rail backlog of grain shipments

    Economic CTV News
    REGINA -- Saskatchewan Premier Scott Moe says it's mind-boggling that grain shipments have been delayed again by rail backlogs this year. Moe told the Saskatchewan Association of Rural Municipalities on Friday that this is the second time in four years that grain shipments have been delayed. Source
  • Canadian CEO charged with conspiring to sell unhackable phones to criminals

    Economic CTV News
    TORONTO - The United States has arrested the chief executive of Phantom Secure, a Canadian privacy and security firm, alleging the Vancouver-area resident has conspired to provide drug traffickers with modified BlackBerry smartphones to evade law enforcement. Source
  • $1.6B contract one of three awarded for Site C dam in northeastern B.C.

    Economic CTV News
    VANCOUVER - A $1.6 billion contract has been awarded for construction of the Site C hydroelectric dam in northeastern British Columbia, just three months after the province's NDP government reluctantly allowed the megaproject to continue. Source
  • Canadian dollar sinks to 76.35 cents US — lowest level since June 2017

    Economic CBC News
    The Canadian dollar continued its slide this week to fall to a nine-month low as it headed for its worst week against the U.S. dollar in over a year. The loonie was trading at 76.41 cents US on Friday afternoon, which is its lowest level since June last year and was down over 0.4 per cent from Thursday's average price of 76.73 cents US. Source
  • BMO joins TD in banning customers from buying bitcoin on credit cards

    Economic CBC News
    The Bank of Montreal has stopped allowing customers to use its credit cards to buy cryptocurrency such as bitcoin. The bank says it no longer allows retail consumers to buy cryptocurrencies using Mastercard-branded credit or debit cards. Source