Canadian Natural Resources Q2 Earnings Beat Expectations, Boosts Oil Sands Output and Dividend Outlook.

Canadian Natural Resources (CNQ) reported Q2 2025 earnings with EPS of $0.71, exceeding analyst expectations of $0.63. Revenue was $8.7 billion, marginally higher than predicted $8.68 billion. The company saw a 3% increase in thermal in situ output and a 13% increase in oil sands mining and upgrading production. CNQ plans to keep oil sands mining production at 600,000 barrels per day and complete the AOSP swap in Q3 2025, predicting continuing dividend growth and a net debt reduction of $15 billion by 2026.

Canadian Natural Resources Limited (CNQ), a prominent Canadian energy company, has released its Q2 2025 earnings report, showcasing robust financial performance that exceeded analyst expectations. The company reported an earnings per share (EPS) of $0.71, which surpassed the anticipated $0.63 [1]. Revenue for the quarter stood at $8.7 billion, slightly above the projected $8.68 billion [1].

CNQ's operational performance was highlighted by a 3% increase in thermal in situ output and a 13% increase in oil sands mining and upgrading production, reaching 463,800 barrels per day [1]. The company aims to maintain this production level at 600,000 barrels per day and is scheduled to complete the AOSP swap in Q3 2025 [1].

Looking ahead, CNQ predicts continued dividend growth and plans to reduce its net debt by $15 billion by 2026 [1]. The company's strong fundamentals are reflected in its P/E ratio of 10.4x and a 25-year track record of consistent dividend payments [2]. Analysts remain bullish on the stock, with a consensus price target of $37.79, indicating a 21% upside from current levels [2]. Raymond James has raised its price target to C$54 and maintains an Outperform rating [2].

Despite mixed Q2 results, with revenue down 3% year-over-year (YoY), CNQ's earnings per share (EPS) exceeded expectations, highlighting the company's operational resilience. The stock experienced a pre-market decline but rebounded in aftermarket trading, reflecting a cautious yet optimistic investor sentiment [2].

References:
[1] https://ca.finance.yahoo.com/news/canadian-natural-resources-cnq-beats-034231232.html
[2] https://www.ainvest.com/news/canadian-natural-resources-stock-sees-bullish-outlook-q2-earnings-2508/