Canadian Natural Resources Limited set a $6.425 billion capital budget for 2026, with the Naphtha Recovery Unit Tailings Treatment (NRUTT) at its Horizon facility scheduled to deliver 6,300 barrels per day of incremental synthetic crude oil production starting Q3 2027.
The Calgary-based producer allocated $2.98 billion to thermal and oil sands mining operations within its total budget. Operating capital reached $6.3 billion, with an additional $125 million earmarked for carbon capture infrastructure.
Total production guidance for 2026 spans 1,590-1,650 thousand barrels of oil equivalent per day, representing 3% growth over 2025 levels. Liquids production will reach 1,177-1,220 Mbbl/d, marking a 55,000 bbl/d increase year-over-year.
The company's production mix comprises 74% liquids, split between 49% light crude oil, natural gas liquids, and synthetic crude oil, with heavy crude oil accounting for 25%. Natural gas production will hold steady at 2,477-2,577 million cubic feet per day.
Canadian Natural's drilling program covers 448 net wells across conventional assets. The plan includes 110 light crude oil wells targeting Mannville, Montney, Charlie Lake, and Dunvegan formations, plus 252 heavy crude oil wells at Pelican Lake and Driftwood.
Thermal in-situ development features three cyclic steam stimulation pads at Primrose, with the first pad starting production in Q3 2026. One steam-assisted gravity drainage pad at Kirby will begin output in 2027, alongside 46 wells on existing mature pads.
The company reported Q3 2025 adjusted funds flow of $3.92 billion against net capital expenditures of $2.124 billion and dividends of $1.228 billion, generating $379 million in free cash flow. Long-term debt stood at $17.268 billion as of September 30, 2025, with net debt at $17.155 billion.
Under its free cash flow allocation policy, Canadian Natural directs 60% to shareholder returns and 40% to balance sheet reduction when net debt exceeds $15 billion. The allocation shifts to 75% shareholder returns below $15 billion and 100% at debt levels under $12 billion.
President Scott Stauth said the 2026 budget positions Canadian Natural as a reliable independent producer. CFO Victor Darel cited the company's balance sheet strength and disciplined capital allocation as key resilience factors.