Canadian quarterly natural gas profits rise as production increases

By Robb M. Stewart

Natural Resources Canada said Thursday that profit rose significantly in the second quarter on stronger-than-expected production.

The Canadian energy company, which has a portfolio of assets in North America, the U.K. North Sea and offshore Africa, reported net income of C$1.715 billion ($1.24 billion), or C$0.80 per share, compared with C$987 million, or C$0.46, for the year.

On an adjusted basis, operating earnings per share rose to C$0.89, beating the C$0.80 average forecast by FactSet analysts.

Production for the quarter averaged nearly 1.29 million barrels of oil equivalent per day, up 7.7% from a year ago during a period when maintenance is typically higher. Production included 934,000 barrels per day of liquids and 2.1 billion cubic feet per day of natural gas, and the company’s oil sands operations delivered production of 410,518 barrels per day, up 16% from a year ago.

The company sold its stake in PrairieSky Royalty during the quarter for C$575 million, which helped Canadian Natural reduce debt and strengthen its balance sheet. With net debt falling to C$10 billion at the end of last year, the company plans to return 100% of its free cash flow to shareholders this year.

Write to Robb M. Stewart at [email protected]

(END) Dow Jones Newswires

August 1, 2024, 09:08 ET (13:08 GMT)