Canadian Natural Resources Limited (CNQ) Management on Q2 2022 Results - Earnings Call Transcript

Canadian Natural Resources Limited (NYSE:CNQ) Q2 2022 Earnings Conference Call August 4, 2022 11:00 AM ET

Company Participants

Lance Casson - Manager of Investor Relations

Timothy McKay - President

Mark Stainthorpe - Chief Financial Officer

Conference Call Participants

Dennis Fong - CIBC World Markets

Greg Pardy - RBC

Doug Leggate - Bank of America

Menno Hulshof - TD Securities

Neil Mehta - Goldman Sachs

John Royall - JPMorgan

Manav Gupta - Credit Suisse

Roger Reed - Wells Fargo

Patrick O'Rourke - RBC Capital Markets

Operator

Good morning. We would like to welcome everyone to the Canadian Natural Resources 2022 Second Quarter Earnings Conference Call and Webcast. After the presentation, we will conduct a question-and-answer session. Instructions will be given at that time. Please note that this call is being recorded today, August 4, 2022 at 9:00 a.m. Mountain Time. I would now like to turn the meeting over to your host for today's call, Lance Casson, Manager of Investor Relations. Please go ahead, sir.

Lance Casson

Thank you, operator, good morning everyone, and welcome to Canadian Natural's Second Quarter 2022 Results Conference Call. Before we begin, I would like to remind you of our forward-looking statements and it should be noted that in our reporting disclosures, everything is in Canadian dollars unless otherwise stated, and reported reserves and production before royalties. Additionally, I would suggest you review our comments on non-GAAP disclosures in our financial statements.

With me this morning is Tim McKay, our President and Mark Stainthorpe, our Chief Financial Officer. Tim will first provide highlights of our ESG achievements evident in our 2021 stewardship report to stakeholders that was published today and how strong execution and efficiency so far this year have Canadian Natural in a unique position to maximize value for our shareholders by executing on additional strategic growth opportunities.

This will be followed by an overview of the quarter, including specifics of our world-class assets and operations. Mark will then provide an update on our strong financial position, substantial free cash flow generation and increasing returns to shareholders. To close, Tim will summarize our call prior to opening up the line for questions. With that, I'll turn it over to you Tim.

Timothy McKay

Thank you, Lance. Good morning, everyone. Canadian Natural delivered strong operational results in the second quarter of 2022. As we achieved quarterly production of approximately 1.21 million BOEs a day, which included record natural gas production of approximately 2.1 Bcf a day. Liquids production was strong at approximately 860,000 barrels a day as planned maintenance was completed on our oil sands mining assets. This combined with our capital discipline, generated significant free cash flow as we continue to balance free cash flow to our four pillars of capital allocation, maximizing value to our shareholders, as we have returned approximately $6.4 billion to our shareholders through dividends and share repurchases.