Canadian Natural Resources Issues FY19 Production Outlook - Quick Facts

(RTTNews) - Canadian Natural Resources Limited (CNQ.TO, CNQ) announced the company targets annual 2019 production levels to average between 782,000 and 861,000 bbl/d of crude oil and NGLs and between 1,485 and 1,545 MMcf/d of natural gas, before royalties. First-quarter production guidance before royalties is targeted to average between 759,000 and 817,000 bbl/d of crude oil and NGLs and between 1,490 and 1,520 MMcf/d of natural gas.

The company achieved record annual production volumes of 1,078,813 BOE/d in 2018, an increase of 12% over 2017 levels. The company said the increase from 2017 was mainly due to a full year of Horizon Phase 3 production and a full year of production from acquisitions completed in 2017, partially offset by declines in natural gas production along with voluntary natural gas and crude oil curtailments, shut ins and reduced drilling activity.

For the fourth-quarter, adjusted FFO per share was C$1.02 compared to C$1.88, a year ago. For the fiscal 2018, adjusted FFO per share was C$7.43 compared to C$6.21, last year.

Canadian Natural's CFO, Corey Bieber, said, "Net earnings of approximately C$2.6 billion and adjusted net earnings of approximately C$3.3 billion were achieved in 2018, contributing to the reduction in absolute long-term debt by approximately C$1.8 billion. Free cash flow was significant in the year at approximately C$2.8 billion after net capital expenditures and dividend commitments. Canadian Natural's free cash flow allocation policy that came into effect November 1, 2018 was demonstrated in 2018 as approximately 46% of annual 2018 free cash flow was allocated to share purchases and approximately 54% was allocated to the Balance Sheet, including the impact of foreign exchange, working capital and other adjustments."