By Robb M. Stewart

Canadian Natural Resources set an ambitious 6.15 billion Canadian dollars ($4.28 billion) budget for the coming year as it looks to grow production roughly 12%.

On guidance:

The Calgary, Alberta crude oil and natural gas producer unveiled operating capital plans for 2025 that target growth and strong returns, including money for its recent consolidation of assets in western Canada.

Canadian Natural is targeting production this year of between 1.51 million and 1.56 million barrels of oil equivalent, which at the midpoint would mark growth of about 170,000 barrels or 12% over 2024.

Output is expected to remain mixed, about 47% of the target light crude oil, natural gas liquids and synthetic crude oil, 26% heavy crude oil and 27% natural gas.

Last month, the company finalized a deal to buy Chevron's assets in Alberta, including a further 20% interest in the Athabasca Oil Sands project and a 70% interest in light crude oil and liquids rich Duvernay assets in the province. Canadian Natural expects the assets will produce about 122,500 oil-equivalent barrels a day this year and generate immediate cash flow.

Canadian Natural, which has operations in western Canada, the U.K. portion of the North Sea and offshore Africa, said some C$3.2 billion of the spending planned for 2025 will go toward conventional exploration and production and C$2.82 billion on thermal and oil sands mining and upgrading operations.

Additionally, the company has approved about C$90 million for carbon capture and C$45 million for a one-time office move.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

January 09, 2025 08:36 ET (13:36 GMT)

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