Canadian Natural Announces 2018 Capital Budget; Sees Production Growth Of 17%

(RTTNews) - Canadian Natural (CNQ, CNQ.TO) Tuesday announced that its 2018 capital budget is targeted at approximately C$4.3 billion, C$0.5 billion less than 2017, excluding the Athabasca Oil Sands Project or AOSP acquisition capital.

The Company targets to deliver 2018 production growth of approximately 17% at the midpoint of 2018 budget guidance with targeted maintenance capital at approximately C$3.0 billion, demonstrating the benefit of a long life low decline asset base.

Overall production in 2018 is expected to be between 1.09 million BOE/d and 1.17 million BOE/d, with a product mix of approximately 75% crude oil and NGLs and 25% natural gas. In 2018, approximately 55% of the Company's production is targeted to come from long life low decline assets.

For the year, overall crude oil and NGL production is expected to increase from 2017 levels by 23%, ranging from 815,000 bbl/d to 885,000 bbl/d in 2018. The increase represents approximately 160,000 bbl/d of production growth. It is mainly as a result of the completion of the Phase 3 expansion at Horizon Oil Sands Mining & Upgrading and a full year of production at the AOSP.

North American crude oil and NGL production is targeted to range from 253,000 bbl/d to 263,000 bbl/d, representing a 7% increase from 2017 production levels.

The 2018 funds flow from operations is targeted to be approximately C$7.9 billion to C$8.3 billion. Free cash flow is targeted to be approximately C$2.3 billion to C$2.7 billion, after budgeted capital and the current dividend.

Canadian Natural's Chief Operating Officer, Tim McKay, said, "The Company will focus on reliability across our diverse asset base and continue to integrate and optimize the assets acquired in 2017. Modest drilling programs will ensure cost control, which is essential in this commodity price environment. Project development at our Steam Assisted Gravity Drainage project, Kirby North will continue in 2018 as we advance the project for ultimate completion in Q4/19."