Canadian Natural Resources beats profit estimates on higher production

March 5 (Reuters) - Oil and gas producer Canadian Natural Resources CNQ.TO posted a better-than-expected profit for the fourth quarter, as higher output helped offset weaker crude prices.

Canadian oil sands producers, including Canadian Natural Resources, have weathered a global sector downturn, hit by U.S. tariff uncertainty and rising OPEC+ supply, thanks to years of investment that kept their costs among the lowest in North America.

The country's largest oil and gas producer said its output jumped 12.8% from a year earlier to a record 1.66 million barrels of oil equivalent per day (boepd) in the fourth quarter.

Canadian Natural also raised its 2026 production forecast to 1.62-1.67 million boepd, from 1.59-1.65 million boepd projected earlier.

The Calgary, Alberta-based company posted an adjusted profit of 82 Canadian cents per share for the three months ended December 31, compared with analysts' average estimate of 69 Canadian cents, according to data compiled by LSEG.

Its U.S.-listed shares were up 2.2% in premarket trading.

CRUDE PRICES UNDER PRESSURE

The quarter played out amid a weaker oil environment, as crude prices came under pressure from mounting oversupply concerns, slowing demand and rising stock builds. The increasing likelihood of Venezuela adding more barrels to global supply only deepened those worries.

Benchmark Brent crude LCOc1 averaged at about $63.13 per barrel during the October-December period, down more than 9% sequentially.

Prime Minister Mark Carney, however, said in January Canadian crude was low-risk and would stay competitive even if output in Venezuela rises after the U.S. capture of President Nicolas Maduro.

Canadian Natural said average realized price for exploration and production liquids was C$64.42 per barrel during the quarter, compared with C$75.22 per barrel a year earlier.

It also raised its current-year capital expenditure plan by C$455 million to C$6.88 billion.

($1 = 1.3645 Canadian dollars)