CALGARY, ALBERTA--(Marketwire - May 8, 2008) - Canadian Natural Resources Limited (TSX:CNQ) (NYSE:CNQ):
Commenting on first quarter 2008 results, Canadian Natural's Chairman, Allan Markin stated, "It has been a good start to the year for Canadian Natural. We completed our winter drilling program in advance of spring break-up, meeting our targets. Our teams were presented with several weeks of cold weather, leading to many weather related issues. The teams rose to the challenge and delivered impressive results. At the Horizon Project, severe weather conditions factored into lower productivity. As the weather became warmer, efficiencies improved and first oil remains targeted for the third quarter of this year."
John Langille, Vice-Chairman, stated, "First quarter cash flow was a reflection of higher realized crude oil pricing, resulting from a lower heavy crude oil differential. The heavy crude oil differential improved due to reduced refinery cracking margins that influence demand for heavy crude oil. Stronger natural gas pricing also added to the bottom line as a cold, late winter resulted in a draw on natural gas inventories. Natural gas pricing was also affected by fewer liquefied natural gas imports to North America and reduced production coming out of Canada. As a result of the increases in both crude oil and natural gas realized strip prices, our cash flow for the year is projected to be in balance with our capital program. Our balance sheet should continue to strengthen as we expect solid earnings throughout 2008."
Steve Laut, President and Chief Operating Officer of Canadian Natural commented, "During Q1/08, we saw the continued benefits of our high-graded natural gas drilling program with strong and steady production delivering on budget. Our North American crude oil drilling program also produced excellent results, particularly from our Pelican Lake assets. Looking ahead, work at the Primrose East Thermal Project continues on schedule, with production expected for early 2009, a further step towards unlocking the significant value of Canadian Natural's thermal crude oil resource base. Our International crude oil projects are also making significant strides with the Olowi Project in Offshore Gabon continuing on track for first oil targeted for late 2008, along with the mobilization of the deep water drilling rig for Baobab in Offshore Cote d'Ivoire. The Horizon Project remains targeted for a Q3/08 start up with operations readiness on schedule to date. The year of execution has started off extremely well."
HIGHLIGHTS
Three Months Ended
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Mar 31 Dec 31 Mar 31
($ millions, except as noted) 2008 2007 2007
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Net earnings $ 727 $ 798 $ 269
Per common share, basic and
diluted $ 1.35 $ 1.48 $ 0.50
Adjusted net earnings from
operations (1) $ 872 $ 546 $ 621
Per common share, basic and
diluted $ 1.61 $ 1.02 $ 1.15
Cash flow from operations (2) $ 1,725 $ 1,486 $ 1,622
Per common share, basic and
diluted $ 3.19 $ 2.75 $ 3.01
Capital expenditures, net of
dispositions $ 1,753 $ 1,514 $ 2,009
Daily production, before royalties
Natural gas (mmcf/d) 1,538 1,589 1,717
Crude oil and NGLs (bbl/d) 327,217 337,240 327,001
Equivalent production (boe/d) 583,488 601,908 613,114
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(1) Adjusted net earnings from operations is a non-GAAP measure that the
Company utilizes to evaluate its performance. The derivation of this
measure is discussed in the Management's Discussion and Analysis
("MD&A").
(2) Cash flow from operations is a non-GAAP measure that the Company
considers key as it demonstrates the Company's ability to fund capital
reinvestment and debt repayment. The derivation of this measure is
discussed in the MD&A.
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