Canadian Natural to increase 2021 capital spending to $3.2 billion
Canadian Natural Resources Ltd. says it plans to increase its capital spending next year by nearly 19 per cent to $3.2 billion.
About 42 per cent of spending or $1.345 billion will go to conventional and unconventional assets, while 58 per cent or $1.86 billion will be spent on long-life low-decline assets.
Capital spending for this year is expected to come in at $2.7 billion.
The Calgary-based energy producer says its output should be between 1,190,000 and 1,260,000 barrels of oil equivalent per day, up from 1,163,000 boepd in 2020.
The midpoint of the guidance implies volumes will increase 5.3 per cent from 2020.
CNQ foresees $2 billion to $2.5 billion in free cash flow after paying its dividend, assuming a West Texas Intermediate price of US$45 per barrel. The money will be primarily used to reduce debt.
“Canadian Natural is a unique, sustainable and robust company, proven by its ability to generate sustainable free cash flow through the commodity price cycle, setting us apart from our peers,” stated president Tim McKay.
“Our balanced, diverse and high quality assets, of which the majority are long life no decline synthetic crude oil reserves with low reservoir risk and low capital requirements, provide us the opportunity to sustain or grow production.”