Canadian Natural Resources expects higher production, lower spending in 2026

Nov 7 (Reuters) - Canadian Natural Resources CNQ.TO on Friday forecast a modest rise in production for 2026 while lowering total capital spending from this year's levels, signaling a continued focus on efficiency and disciplined growth.

Canada's producers have weathered the global oil downturn better than many global peers, buoyed by years of investment that have turned the country's oil sands operators into some of North America's lowest-cost producers.

Companies such as Canadian Natural have leveraged long-life, low-decline assets and disciplined capital strategies to sustain growth and strong shareholder returns even in a weaker price environment.

The company, one of Canada's largest oil and gas producers, said it expects 2026 output to grow about 3% from 2025 expectation, supported by stable performance across its oil sands, liquids, and natural gas assets.

Canadian Natural expects 2026 production to be between 1.59 million and 1.65 million barrels of oil equivalent per day (boepd).

The increase will be driven by steady gains across its assets, including thermal in situ and oil sands mining projects, Canadian Natural said.

The company said it expects potential for up to 745,000 boepd of future growth, with 210,000 bpd from thermal assets and 240,000 bpd from oil sands expansions.

The producer set a C$6.43 billion ($4.58 billion) capital budget for next year, down from C$6.68 billion in 2025, reflecting tighter spending as it targets steady resource growth.

On Thursday, the Calgary-based company posted quarterly earnings that narrowly beat analysts' estimates, as record oil and gas production helped offset a decline in crude prices.

($1 = 1.4024 Canadian dollars)