Canadian Natural Resources Ltd. announced Thursday it had a net loss of $1.282 billion in the first quarter of this year compared with net earnings of $961 million in the same period in 2019.
“Through the first quarter of 2020 and in response to the outbreak of the novel coronavirus, we have taken proactive and effective steps to ensure the safety and health of our employees, service providers and the communities we work in, while maintaining safe, reliable operations. We currently have approximately 6,000 employees working remotely and approximately 4,000 field personnel working under safety protocols with minimal impact to our operations,” said Tim McKay, President of Canadian Natural, in a news release.
“Canadian Natural is in a strong position. Our vast and diverse asset base is robust, unique and sustainable. The effectiveness of our strategies and our ability to execute on those strategies allows us to react quickly in this challenging commodity price environment. Our long life low decline assets have industry leading breakeven prices as a result of low sustaining capital requirements, effective and efficient operations, low operating costs and low to no reservoir risk, a distinct advantage in volatile price environments. As a result, a small percentage of our total proved reserves are produced during challenging commodity price periods, resulting in very little impact to net asset value, thereby preserving long-term value for our stakeholders.
“In Q1/20, we delivered top tier operational results, producing our maximum allowable volumes under the Government of Alberta curtailment program, achieving record quarterly corporate production of approximately 1,179 MBOE/d (Thousand Barrels Of Oil Equivalent Per Day), including record liquids production of approximately 939 Mbbl/d. Importantly, we increased the level of high value Synthetic Crude Oil production in the quarter, maximizing adjusted funds flow.
“We target to effectively and efficiently manage through the current environment. Our balance sheet is strong with significant liquidity available and our 2020 capital program is disciplined at approximately $2.7 billion having executed on approximately $1.4 billion in reductions. Targeted operating cost reductions from 2019 levels are significant in 2020, at approximately $745 million and the Board of Directors has maintained our current dividend levels, demonstrating their confidence in the Company’s assets and plan moving forward.”
Mark Stainthorpe, Canadian Natural’s Chief Financial Officer, said the company has reduced its targeted capital expenditures by approximately $1.4 billion in 2020 from the original budget announced in December 2019, while at the same time targeting to increase crude oil and natural gas production over 2019 levels.
