Calgary-based energy giant Canadian Natural Resources Ltd. saw its net earnings in the first quarter of this year soar by 65 per cent compared to a year ago, reaching close to $1 billion.

On Thursday, the company reported earnings of $961 million, or 80 cents per share, compared to $583 million, or 48 cents per share, for the first quarter of 2018.

“In the first quarter, the company demonstrated the resilience and strength of its long life low decline and low capital exposure assets, generating significant adjusted funds flow of approximately $2.2 billion. The company was able to achieve adjusted funds flow that exceeded net capital expenditures by approximately $1.3 billion, largely due to a strong operational quarter and improvement in crude oil differentials, driven by the government of Alberta’s mandatory production curtailments which is strongly supported by Canadian Natural,” said Steve Laut, executive vice-chairman of Canadian Natural, in a news release.

“Canadian Natural’s top tier low sustaining capital required to maintain production levels, combined with industry leading effective and efficient operations, were evident in Q1/19 as adjusted funds flow less net capital expenditures was comparable to Q1/18 when West Texas Intermediate (WTI) was approximately US$8/bbl higher.”

Canadian Natural’s president Tim McKay said operations were strong in the first quarter as its large, balanced and diverse asset base allowed the company to strategically manage through the mandatory production curtailments to maximize value.

Production was as expected in the quarter, reaching approximately 1,035,000 barrel of oil equivalent per day, consisting of 54 per cent light crude oil, natural gas liquids and synthetic crude oil, 22 per cent heavy crude oil and 24 per cent natural gas, he said.

– Mario Toneguzzi for Calgary’s Business

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