Canadian Natural Resources posts record production, cuts 2026 capex by $310 million
According to BOE Report, Canadian Natural Resources Limited posted record annual production of 1,571 MBOE/d in 2025, representing 15% year-over-year growth, while announcing plans to cut 2026 capital spending by approximately $310 million.
Strong Operations Drive Growth
The Calgary-based oil sands producer achieved record annual liquids production of 1,146 Mbbl/d, with 65% consisting of synthetic crude oil, light crude oil and NGLs that avoid heavy oil price differentials. The company completed several acquisitions in 2025, including the Palliser Block assets in southern Alberta and liquids-rich Montney assets in the Grande Prairie area.
Canadian Natural increased its 2026 production guidance to between 1,615 and 1,665 MBOE/d, up from previous estimates of 1,590 to 1,650 MBOE/d. The company generated adjusted funds flow of $15.5 billion in 2025, according to CFO Victor Darel.
What It Means for Subcontractors
- Stable Alberta work: Record production levels and increased 2026 guidance suggest sustained drilling and completion activity in southern Alberta and Grande Prairie areas
- Mixed capital signals: The $310 million capex reduction could mean fewer new projects, but higher production targets indicate ongoing maintenance and optimization work
- Oil sands focus: With 100% ownership of Albian mines and strong synthetic crude production, expect continued demand for specialized oil sands services
- Acquisition integration: Recent asset purchases will likely require infrastructure tie-ins, facility modifications, and increased service activity in newly acquired areas
The company’s 31-year proved reserves life and strong cash flow position suggests Canadian Natural will remain an active operator requiring consistent field services, even with reduced capital spending.
