Canadian Natural Resources Limited (CNQ) 2024年年度報告「TSX」.pdf

《Canadian Natural Resources Limited (CNQ) 2024年年度報告「TSX」.pdf》由會員分享，可在線閱讀，更多相關《Canadian Natural Resources Limited (CNQ) 2024年年度報告「TSX」.pdf（112頁珍藏版）》請在三個皮匠報告上搜索。

1、2024 ANNUAL REPORTCANADIAN NATURAL2024 ANNUAL REPORT2024 Performance HighlightsCanadian Naturals flexible capital allocation strategy combined with our unique,diverse and balanced portfolio of assets maximizes value for our shareholders.In 2024,the Company focused on effective and efficient operatio

2、ns and achieved record production,which delivered strong financial results,significant returns to shareholders and reserves growth year over year.2024 2023 2022 FINANCIAL($millions,except per common share amounts)Product sales(1)$41,509$40,835$49,530 Net earnings$6,106$8,233$10,937 Per common share(

3、2)basic$2.87$3.77$4.82 diluted$2.85$3.74$4.76 Adjusted net earnings from operations(3)$7,414$8,533$12,863 Per common share(2)basic(4)$3.49$3.91$5.67 diluted(4)$3.46$3.87$5.60 Cash flows from operating activities$13,386$12,353$19,391 Adjusted funds flow(3)$14,859$15,274$19,791 Per common share(2)basi

4、c(4)$6.99$7.00$8.72 diluted(4)$6.94$6.93$8.61 Cash flows used in investing activities$14,095$4,858$4,987 Net capital expenditures(5)$14,431$4,909$5,136 Abandonment expenditures,net(3)$646$509$335 Long-term debt,net(6)$18,688$9,922$10,525 Shareholders equity$39,468$39,832$38,175 Debt to book capitali

5、zation(6)32%20%22%(1)Further details related to product sales are disclosed in the Segmented Information note to the Companys audited consolidated financial statements.(2)Per common share amounts have been updated to reflect the two for one common share split.Further details are disclosed in the Adv

6、isory section of the Companys MD&A and in the audited consolidated financial statements.(3)Non-GAAP Financial Measure.Refer to the Non-GAAP and Other Financial Measures section of the Companys annual Managements Discussion and Analysis(MD&A)included in this annual report.(4)Non-GAAP Ratio.Refer to t

7、he Non-GAAP and Other Financial Measures section of the Companys MD&A.(5)Non-GAAP Financial Measure.The composition of this measure was updated for all periods presented.Refer to the Non-GAAP and Other Financial Measures section of the Companys MD&A.(6)Capital Management Measure.Refer to the Non-GAA

8、P and Other Financial Measures section of the Companys MD&A.Cover:Steam Generators at Jackfish.TABLE OF CONTENTS0103060955562024 Performance HighlightsLetter to Shareholders2024 Year End ReservesManagements Discussion and AnalysisConsolidated Financial StatementsManagements Report57586597107109Manag

9、ements Assessment of Internal Control over Financial ReportingReport of Independent Registered Public Accounting FirmNotes to the Consolidated Financial StatementsSupplementary Oil and Gas InformationTen Year ReviewCorporate Information1Canadian Natural 2024 Annual Report 2024 2023 2022 OPERATINGDai

10、ly production,before royalties(1)Crude oil and NGLs(Mbbl/d)North America Exploration and Production 509 496 480 North America Oil Sands Mining and Upgrading 472 451 426 North Sea 12 13 13 Offshore Africa 13 13 14 1,006 974 933 Natural gas(MMcf/d)North America 2,136 2,139 2,075 North Sea 2 2 2 Offsho

11、re Africa 9 10 13 2,147 2,151 2,090 Barrels of oil equivalent(MBOE/d)(2)1,363 1,332 1,281 Drilling activity(3)North America 387 284 390 North Sea Offshore Africa 387 284 390(1)Numbers may not add due to rounding.(2)A barrel of oil equivalent(“BOE”)is derived by converting six thousand cubic feet(Mcf

12、)of natural gas to one barrel(bbl)of crude oil(6 Mcf:1 bbl).This conversion may be misleading,particularly if used in isolation,since the 6 Mcf:1 bbl ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wel

13、lhead.In comparing the value ratio using current crude oil prices relative to natural gas prices,the 6 Mcf:1 bbl conversion ratio may be misleading as an indication of value.(3)Net wells.Excludes net stratigraphic test and service wells.1,005,603BBL/DRECORD LIQUIDS PRODUCTION 78%OF TOTAL LIQUIDS PRO

14、DUCTION IS LONG LIFE LOW DECLINECanadian Natural 2024 Annual Report2Letter to ShareholdersOne of Canadian Naturals strengths is the diversity of our world class assets,which have been strategically assembled and developed over several decades.Our large,diverse portfolio is supported by long life low

15、 decline assets,which drive top tier operating costs and low maintenance capital relative to the size and quality of our reserves.This affords us significant flexibility when balancing our four pillars of capital allocation:returns to shareholders,balance sheet strength,resource value growth and opp

16、ortunistic acquisitions.We delivered on our capital allocation strategy in 2024,through our disciplined and flexible approach.When combined with our safe,reliable,effective and efficient operations and our culture of continuous improvement we drove strong operational and financial results in 2024,ma

17、ximizing value for our shareholders.2024 was an excellent year for the Company,as we achieved strong growth and set several new production records from our base operations,before including acquisitions that closed late in 2024.Additionally,including acquisitions,we achieved record annual average pro

18、duction of over 1,363 MBOE/d in 2024,which includes record annual liquids production of over onemillion barrels per day.At our world class Oil Sands Mining and Upgrading assets,we achieved record quarterly and annual Synthetic Crude Oil(”SCO”)production of approximately 535 Mbbl/d in Q4/24 and 472 M

19、bbl/d in 2024.This strong operational performance resulted in a high annual utilization rate of 99%,anchored by industry leading SCO operating costs averaging$22.88/bbl(US$16.70/bbl)in 2024,which drove significant free cash flow(1)in the year.Thermal in situ production also reached record annual pro

20、duction levels of approximately 271 Mbbl/d combined with strong operating costs of$11.04/bbl(US$8.06/bbl).Our conventional crude oil and liquids-rich natural gas operations continue to provide significant free cash flow with further potential for organic growth.When combined with our entire portfoli

21、o,we have significant organic growth opportunities.In 2024,we delivered strong financial results,with adjusted net earnings of approximately$7.4billion and adjusted funds flow of$14.9 billion.We returned approximately$7.1 billion to shareholders in 2024,inclusive of our sustainable and growing divid

22、end and share repurchases.The Board of Directors approved two separate increases to our quarterly dividend in 2024,for a combined increase of 13%to$0.5625 per common share.Subsequent to year end,in March of 2025,the Board of Directors approved an additional 4%increase to the quarterly dividend to$0.

23、5875 per common share,or$2.35 per common share on an annual basis,demonstrating the confidence that the Board of Directors has in the sustainability of our business model,our strong balance sheet and the strength of our diverse,long life low decline asset base.The Company has a leading track record

24、of 25 consecutive years of dividend increases,with a compound annual growth rate of 21%over that time period.Canadian Naturals reserves compete on a global scale supporting long-term organic growth opportunities,with total proved reserves of 15.2billion BOE and total proved plus probable reserves of

25、 20.1billion BOE as of year end 2024,both of which increased 9%from year end 2023 levels.The increase in our reserves reflects acquisitions and the success of our capital efficient development opportunities across our asset base with reserve replacement ratios of 365%and 422%on a total proved and to

26、tal proved plus probable basis respectively.With approximately 74%of the Companys total proved reserves being long life low decline,the strength and depth of our assets is evident and provides us with a total proved reserves life index(RLI)of 33years and a total proved plus probable RLI of 44years.T

27、his includes Oil Sands Mining and Upgrading reserves that have a total proved RLI of 43years,providing significant production for decades.In December 2024,we closed the acquisition of Chevrons Alberta assets,which included a 20%interest in the Athabasca Oil Sands Project(“AOSP”)and a 70%operated int

28、erest in light crude oil and liquids-rich Duvernay assets.Combined,these assets are targeted to add approximately 122,500 BOE/d of production in 2025,consisting of approximately 62,500 bbl/d of long life no decline SCO at AOSP and approximately 179MMcf/d of natural gas and 30,000 bbl/d of liquids fr

29、om the Duvernay.These acquisitions provide Canadian Natural with immediate free cash flow generation and further opportunities to drive long-term shareholder value.$7.1 BILLION RETURNED TO SHAREHOLDERSIN 2024 1,363,496BOE/DRECORD TOTAL PRODUCTION3Canadian Natural 2024 Annual ReportCanadian Natural i

30、s committed to supplying safe,reliable,responsible energy and to environmental stewardship.Weincorporate environmental,social and governance practices that strengthen our long-term sustainability across all aspects of our business and are uniquely positioned with diverse,long life low decline assets

31、 which are ideal for continued review and evaluation of new technologies designed to reduce environmental impacts.Canadas energy sector has an important role in Canadas economy,providing jobs,economic growth,and reliable,affordable energy that the world needs.We believe that Canada has the people,re

32、sources,and expertise to be a global leader in oil and natural gas production.We are committed to creating shared value in the communities where we operate in Canada,the United Kingdom and Africa.This group of stakeholders includes more than 24,000 landowners,over 160 municipalities and more than 80

33、 Indigenous communities in Western Canada,as well as industry,governments,regulators,academia,and non-governmental groups.The Company works with these diverse communities to identify opportunities for education and training,employment,business development and community investment.In 2024,we worked w

34、ith 212 Indigenous businesses through which approximately$855 million in contracts were awarded,a 3%increase from 2023 levels.Canadian Natural also has a strong commitment to corporate governance,which assures stakeholders that the Company always operates with the highest levels of integrity and eth

35、ical standards.Our strong execution in 2024 sets us up to continue delivering on our four pillars of capital allocation through our disciplined 2025 operating capital budget(1)of approximately$6.0 billion,along with approximately$787 million of abandonment expenditures before recoveries,approximatel

36、y$90 million of carbon capture expenditures and$45 million on a one-time office move.We have flexibility within our budget to adjust to evolving market conditions,ensuring we are allocating capital effectively,strengthening our balance sheet and maximizing value for our shareholders.We have a long t

37、rack record of consistently delivering strong,industry leading results driven by our safe,reliable operations and relentless focus on continuous improvement,which maximizes long-term shareholder value.We would like to thank our employees and contractors for their hard work and commitment to deliver

38、safe,reliable,effective and efficient operations across all areas of the business.Your commitment to operational excellence and relentless focus on continuous improvement by following our mission statement underpins the ongoing success of the business and positions Canadian Natural very well into th

39、e future to drive long-term shareholder value.N.MURRAY EDWARDSSCOTT G.STAUTHMARK A.STAINTHORPEVICTOR C.DARELExecutive ChairmanPresidentChief Financial OfficerSenior Vice-President,Finance and Principal Accounting Officer(1)Refer to page 5 and the Non-GAAP and Other Financial Measures section of the

40、Companys MD&A for additional details.Canadian Natural 2024 Annual Report4AdvisoryThis report includes references to non-GAAP and other financial measures as defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure.These financial measures are used by the Company to eval

41、uate its financial performance,financial position or cash flow and are not defined by IFRS and therefore are referred to as non-GAAP and other financial measures.These measures used by the Company may not be comparable to similar measures presented by other companies and should not be considered an

42、alternative to,or more meaningful than,the most directly comparable financial measure presented in the Companys financial statements,as applicable,as an indication of the Companys performance.Descriptions of the Companys non-GAAP and other financial measures included in this document,and reconciliat

43、ions to the most directly comparable GAAP measure,as applicable,are provided below as well as in the Non-GAAP and Other Financial Measures section of the Companys MD&A.FREE CASH FLOW ALLOCATION POLICYFree cash flow is a non-GAAP financial measure.The Company considers free cash flow a key measure in

44、 demonstrating the Companys ability to generate cash flow to fund future growth through capital investment,pay returns to shareholders and to repay or maintain net debt levels,pursuant to the free cash flow allocation policy.The Companys free cash flow is used to determine the targeted amount of sha

45、reholder returns after dividends.The amount allocated to shareholders varies depending on the Companys net debt position.Free cash flow is calculated as adjusted funds flow less dividends on common shares,net capital expenditures and abandonment expenditures.The Company targets to manage the allocat

46、ion of free cash flow on a forward looking annual basis,while managing working capital and cash management as required.Up to October 2024,before the announcement of the Chevron acquisition,the Company was targeting to allocate 100%of its free cash flow in 2024 to shareholder returns.In October 2024,

47、with the announcement of the Chevron acquisition,the Board of Directors adjusted the allocation of free cash flow as follows:60%of free cash flow to shareholder returns and 40%to the balance sheet until net debt reaches$15 billion.When net debt is between$12 billion and$15 billion,free cash flow all

48、ocation will be 75%to shareholder returns and 25%to the balance sheet.When net debt is at or below$12 billion,free cash flow allocation will be 100%to shareholder returns.The Companys free cash flow for the year ended December 31,2024 is shown below:Year Ended($millions)Dec 312024Adjusted funds flow

49、(1)$14,859 Less:Dividends on common shares 4,429 Net capital expenditures,(2)excluding net acquisition costs 5,286 Abandonment expenditures 646 Free cash flow(3)$4,498(1)Refer to the descriptions and reconciliations to the most directly comparable GAAP measure,which are provided in the Non-GAAP and

50、Other Financial Measures section of the Companys MD&A for the year ended December31,2024,dated March5,2025.(2)Net Capital expenditures is a Non-GAAP Financial Measure.2024 Net capital expenditures,excluding net acquisition costs is equal to net capital expenditures of$14,431 million less net acquisi

51、tion costs of$9,145 million in the period.Refer to the Non-GAAP and Other Financial Measures section of the Companys MD&A for the year ended December31,2024,dated March5,2025.(3)The Companys free cash flow in 2023 was$6,917 million(2022$10,909 million),calculated as per the Companys free cash flow p

52、olicy at the time,as adjusted funds flow of$15,274 million(2022$19,791 million),less base capital expenditures of$3,958 million(2022$3,621 million),abandonment expenditures,net of$509 million(2022$335 million)and dividends on common shares of$3,891 million(2022$4,926 million).CAPITAL BUDGETCapital b

53、udget is a forward looking non-GAAP financial measure.The capital budget is based on net capital expenditures(Non-GAAP Financial Measure)and excludes net acquisition costs.Refer to the Non-GAAP and Other Financial Measures section of the Companys MD&A for more details on net capital expenditures.The

54、 2025 capital budget reflects budgeted net capital expenditures,before capital related to the office relocation and abandonment expenditures related to the execution of the Companys abandonment and reclamation programs in North America and the North Sea.The Company currently carries an Asset Retirem

55、ent Obligation(ARO)liability on its balance sheet for these budgeted future expenditures.Abandonment expenditures are reported before the impact of current income tax recoveries.Current tax recoveries are refundable at a rate of approximately 23%in Canada and a combined current income tax and Petrol

56、eum Revenue Tax(PRT)rate approximating 70%to 75%in the UK portion of the North Sea.The Company is eligible to recover interest on refunded PRT previously paid.LONG-TERM DEBT,NETLong-term debt,net(also referred to as net debt)is a capital management measure that is calculated as current and long-term

57、 debt less cash and cash equivalents.Refer to Note 16 to the Companys 2024 audited consolidated financial statements.5Canadian Natural 2024 Annual Report2024 Year End ReservesDETERMINATION OF RESERVESFor the year ended December 31,2024,Canadian Natural retained Independent Qualified Reserves Evaluat

58、ors(IQREs)to evaluate and review all of the Companys proved and proved plus probable reserves.The Company retained Sproule International Limited for its North America Conventional,International and Thermal reserves evaluation and review,and GLJ Ltd.for its Oil Sands Mining and Upgrading reserves eva

59、luation.The evaluation and review was conducted and prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook.The reserves disclosure is presented in accordance with National Instrument 51-101-Standards of Disclosure for Oil and Gas Activities(NI 51-101)requ

60、irements using forecast prices and escalated costs.The Reserves Committee of the Companys Board of Directors has met with and carried out independent due diligence procedures with the Independent Qualified Reserves Evaluators(IQRE)as to the Companys reserves.Additional reserves information is disclo

61、sed in the Companys Annual Information Form.RESERVES INFORMATION HIGHLIGHTSA key differentiator for Canadian Natural is the strength,diversity and balance of its world class,top tier assets.The Companys total proved reserve life index(RLI)(1)of 33 years is supported by long life low decline assets t

62、hat have been strategically assembled and developed over several decades.The low maintenance capital requirements relative to the size and quality of the reserves affords the Company significant flexibility when balancing its four pillars of capital allocation to maximize shareholder value.The follo

63、wing highlights are based on the Companys reserves using forecast prices and costs at December 31,2024(all reserves values are Company Gross unless stated otherwise).Total proved reserves increased 9%to 15.231 billion BOE,with reserves additions and revisions of 1.820billionBOE.Total proved plus pro

64、bable reserves increased 9%to 20.110 billion BOE,with reserves additions and revisions of 2.105billionBOE.The strength and depth of the Companys assets are evident as approximately 74%of total proved reserves are long life low decline reserves.This results in a total proved BOE RLI of 33years and a

65、total proved plus probable BOE RLI of 44 years.Additionally,high value,zero decline SCO represents approximately 50%of total proved reserves with a RLI of 43years.In 2024,proved developed producing reserves additions and revisions were 1.322 million BOE,replacing 2024 production by 265%.The proved d

66、eveloped producing BOE RLI is 21years.In 2024,total proved reserves additions and revisions replaced 2024 production by 365%.Total proved plus probable reserves additions and revisions replaced 2024 production by 422%.In 2024,Canadian Natural continued to achieve strong finding and development costs

67、:Finding,development and acquisition(FD&A)(1)costs,excluding changes in Future Development Cost(FDC),were$7.82/BOE for total proved reserves and$6.76/BOE for total proved plus probable reserves.FD&A costs,including changes in FDC,were$13.56/BOE for total proved reserves and$12.60/BOE for total prove

68、d plus probable reserves.At December 31,2024,the net present value of Future Net Revenues(FNR),before income tax,discounted at 10%,was$118.3billion for proved developed producing reserves,$170.2billion for total proved reserves,and$205.7billion for total proved plus probable reserves.The Companys to

69、tal proved net asset value(NAV)per share increased to$74.83 per share at December 31,2024 from$69.53per share at December 31,2023 after adjusting for asset retirement obligations and net debt and the share split that occurred in June 2024.Total proved plus probable NAV per share increased to$91.72 p

70、er share at December31,2024 from$84.83 per share at December 31,2023.(1)Supplementary financial measure.Refer to the notes to the 2024 Year End Reserves on page 8.Canadian Natural 2024 Annual Report6Summary of Company Gross Reservesas of December 31,2024Forecast Prices and CostsLight andMediumCrude

71、OilPrimary Heavy Crude OilPelican LakeHeavy Crude OilBitumen(Thermal Oil)SyntheticCrude OilNatural GasNatural GasLiquidsBarrels of OilEquivalentTotal Company(MMbbl)(MMbbl)(MMbbl)(MMbbl)(MMbbl)(Bcf)(MMbbl)(MMBOE)ProvedDeveloped Producing 118 123 202 631 7,567 5,034 172 9,652 Developed Non-Producing 5

72、 7 78 246 9 140 Undeveloped 129 88 53 2,603 96 11,625 533 5,440 Total Proved 252 219 255 3,312 7,663 16,904 713 15,231 Probable 94 99 105 1,878 593 10,252 403 4,879 Total Proved plus Probable 346 318 360 5,190 8,255 27,156 1,116 20,110 Reconciliation of Company Gross Reservesas of December 31,2024Fo

73、recast Prices and CostsTOTAL PROVEDLight andMediumCrude OilPrimary Heavy Crude OilPelican LakeHeavy Crude OilBitumen(Thermal Oil)SyntheticCrude OilNatural GasNatural GasLiquidsBarrels of OilEquivalentTotal Company(MMbbl)(MMbbl)(MMbbl)(MMbbl)(MMbbl)(Bcf)(MMbbl)(MMBOE)December 31,2023 218 193 258 3,28

74、7 6,910 15,005 543 13,910 Discoveries 1 1 Extensions 15 21 57 537 22 205 Infill Drilling 2 4 3 175 13 52 Improved Recovery 1 2 2 Acquisitions 8 853 1,266 157 1,229 Dispositions(1)(51)(2)(12)Economic Factors 1 1 (230)(4)(41)Technical Revisions 34 29 13 63 71 987 10 383 Production(25)(29)(16)(99)(173)

75、(786)(25)(499)December 31,2024 252 219 255 3,312 7,663 16,904 713 15,231 TOTAL PROVED PLUS PROBABLELight andMediumCrude OilPrimary Heavy Crude OilPelican LakeHeavy Crude OilBitumen(Thermal Oil)SyntheticCrude OilNatural GasNatural GasLiquidsBarrels of OilEquivalentTotal Company(MMbbl)(MMbbl)(MMbbl)(M

76、Mbbl)(MMbbl)(Bcf)(MMbbl)(MMBOE)December 31,2023 305 288 365 5,191 7,460 24,284 848 18,504 Discoveries 1 1 1 Extensions 21 31 75 1,169 55 377 Infill Drilling 3 6 4 268 18 77 Improved Recovery 1 2 3 Acquisitions 16 904 1,874 233 1,466 Dispositions(1)(66)(3)(15)Economic Factors 1 1 1 (269)(4)(46)Techni

77、cal Revisions 26 20 10 18 62 681 (6)243 Production(25)(29)(16)(99)(173)(786)(25)(499)December 31,2024 346 318 360 5,190 8,255 27,156 1,116 20,110 7Canadian Natural 2024 Annual ReportNOTES TO RESERVES:1.Company Gross reserves are working interest share before deduction of royalties and excluding any

78、royalty interests.2.Information in the reserves data tables may not add due to rounding.BOE values and oil and natural gas metrics may not calculate exactly due to rounding.3.Forecast pricing assumptions utilized by the IQREs in the reserves estimates are the 3-Consultant-Average of price forecasts

79、developed by Sproule International Limited,GLJ Ltd.and McDaniel&Associates Consultants Ltd.,dated December 31,2024:20252026202720282029Crude Oil and NGLsWTIUS$/bbl 71.58 74.48 75.81 77.66 79.22 WCSC$/bbl 82.69 84.27 83.81 85.70 87.45 Canadian Light SweetC$/bbl 94.79 97.04 97.37 99.80 101.79 Cromer L

80、SBC$/bbl 93.30 96.05 95.92 98.55 100.51 Edmonton C5+C$/bbl 100.14 100.72 100.24 102.73 104.79 BrentUS$/bbl 75.58 78.51 79.89 81.82 83.46 Natural GasAECOC$/MMBtu 2.36 3.33 3.48 3.69 3.76 BC Westcoast Station 2C$/MMBtu 2.15 3.14 3.29 3.50 3.57 Henry HubUS$/MMBtu 3.31 3.73 3.85 3.93 4.01 All prices inc

81、rease at a rate of 2%per year after 2029.A US$/C$foreign exchange rate of 0.7117 was used for 2025,0.7283 for 2026,and 0.7433 for 2027 and thereafter in the year end 2024 evaluation.4.A barrel of oil equivalent(BOE)is derived by converting six thousand cubic feet of natural gas to one barrel of crud

82、e oil(6Mcf:1bbl).This conversion may be misleading,particularly if used in isolation,since the 6 Mcf:1 bbl ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.In comparing the value ratio using cu

83、rrent crude oil prices relative to natural gas prices,the 6 Mcf:1 bbl conversion ratio may be misleading as an indication of value.5.Oil and natural gas metrics included herein are commonly used in the crude oil and natural gas industry and are determined by Canadian Natural as set out in the notes

84、below.These metrics do not have standardized meanings and may not be comparable to similar measures presented by other companies and may be misleading when making comparisons.Management uses these metrics to evaluate Canadian Naturals performance over time.However,such measures are not reliable indi

85、cators of Canadian Naturals future performance and future performance may vary.6.Reserves additions and revisions are comprised of all categories of Company Gross reserves changes,exclusive of production.7.Reserves replacement or Production replacement ratio is the Company Gross reserves additions a

86、nd revisions,for the relevant reserves category,divided by the Company Gross production in the same period.8.Reserves Life Index(RLI)is based on the amount for the relevant reserves category divided by the 2025 proved developed producing production forecast prepared by the IQREs.9.Finding,Developmen

87、t and Acquisition(FD&A)costs excluding changes in Future Development Costs(FDC)are calculated by dividing the sum of total exploration,development and acquisition capital costs incurred in 2024 by the sum of total additions and revisions for the relevant reserves category.10.FD&A costs including cha

88、nges in FDC are calculated by dividing the sum of total exploration,development and acquisition capital costs incurred in 2024 and net changes in FDC from December 31,2023 to December31,2024 by the sum of total additions and revisions for the relevant reserves category.FDC excludes all abandonment,d

89、ecommissioning and reclamation(ADR)costs.11.ADR costs included in the calculation of the FNR consist of both the Companys total Asset Retirement Obligation(ARO),before inflation and discounting,for development existing as at December 31,2024 and forecast estimates of ADR costs attributable to future

90、 development activity.Canadian Natural 2024 Annual Report8Managements Discussion and AnalysisTable of ContentsDefinitions and Abbreviations10Advisory11Objectives and Strategy14Financial and Operational Highlights15Business Environment and Outlook18Analysis of Changes in Product Sales20Daily Producti

91、on21Exploration and Production23Oil Sands Mining and Upgrading27Midstream and Refining28Corporate and Other29Net Capital Expenditures32Liquidity and Capital Resources33Commitments and Contingencies36Subsequent Events36Reserves37Risks and Uncertainties38Environment39Accounting Policies and Standards4

92、2Control Environment44Non-GAAP and Other Financial Measures45Other519Canadian Natural 2024 Annual ReportDefinitions and AbbreviationsAECOAlberta natural gas reference locationAIFAnnual Information FormAOSPAthabasca Oil Sands ProjectAPIspecific gravity measured in degrees on the American Petroleum In

93、stitute scaleAROasset retirement obligationsbblbarrelbbl/dbarrels per dayBcfbillion cubic feetBcf/dbillion cubic feet per dayBitumena naturally occurring solid or semi-solid hydrocarbon consisting mainly of heavier hydrocarbons that are too heavy or thick to flow at reservoir conditions,and recovera

94、ble at economic rates using thermal in situ recovery methodsBOEbarrels of oil equivalentBOE/dbarrels of oil equivalent per dayBrentDated BrentC$Canadian dollarsCO2carbon dioxideCO2ecarbon dioxide equivalentsCORRACanadian Overnight Repo Rate AverageCrude oilincludes light and medium crude oil,primary

95、 heavy crude oil,Pelican Lake heavy crude oil,bitumen(thermal oil),and synthetic crude oilE&PExploration and ProductionFASBFinancial Accounting Standards BoardFPSOFloating Production,Storage and Offloading VesselGHGgreenhouse gasGJgigajoulesGJ/dgigajoules per dayHorizonHorizon Oil SandsIASBInternati

96、onal Accounting Standards BoardIFRSInternational Financial Reporting StandardsMbblthousand barrelsMbbl/dthousand barrels per dayMBOEthousand barrels of oil equivalentMBOE/dthousand barrels of oil equivalent per dayMcfthousand cubic feetMcfethousand cubic feet equivalentMcf/dthousand cubic feetper da

97、yMMbblmillion barrelsMMBOEmillion barrels of oil equivalentMMBtumillion British thermal unitsMMBtu/dmillion British thermal units per dayMMcfmillion cubic feetMMcf/dmillion cubic feet per dayNGLsnatural gas liquidsNWRPNorth West Redwater PartnershipNYMEXNew York Mercantile ExchangeNYSENew York Stock

98、 ExchangeOPEC+Organization of the Petroleum Exporting Countries PlusPRTPetroleum Revenue TaxSCOsynthetic crude oilSECUnited StatesSecurities and Exchange CommissionSOFRSecured Overnight Financing RateTMXTrans Mountain Expansion pipelineTSXToronto Stock ExchangeUKUnited KingdomUSUnited StatesUS$Unite

99、d States dollarsWCSWestern Canadian SelectWCS Heavy DifferentialWCS Heavy Differential from WTIWTIWest Texas Intermediate reference location at Cushing,OklahomaCanadian Natural 2024 Annual Report10AdvisorySPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTSCertain statements relating to Canadian Natura

100、l Resources Limited(the Company)in this document or documents incorporated herein by reference constitute forward-looking statements or information(collectively referred to herein as forward-looking statements)within the meaning of applicable securities legislation.Forward-looking statements can be

101、identified by the words believe,anticipate,expect,plan,estimate,target,focus,continue,could,intend,may,potential,predict,should,will,objective,project,forecast,goal,guidance,outlook,effort,seeks,schedule,proposed,aspiration or expressions of a similar nature suggesting future outcome or statements r

102、egarding an outlook.Disclosure related to the Companys strategy or strategic focus,capital budget,expected future commodity pricing,forecast or anticipated production volumes,royalties,production expenses,capital expenditures,abandonment expenditures,income tax expenses,and other targets provided th

103、roughout this Managements Discussion and Analysis(MD&A)of the financial condition and results of operations of the Company,including the strength of the Companys balance sheet,the sources and adequacy of the Companys liquidity,and the flexibility of the Companys capital structure,constitute forward-

104、looking statements.Disclosure of plans relating to and expected results of existing and future developments,including,without limitation,those in relation to:the Companys assets at Horizon,AOSP,the Primrose thermal oil projects(Primrose),the Pelican Lake water and polymer flood projects(Pelican Lake

105、),the Kirby thermal oil sands project(Kirby),the Jackfish thermal oil sands project(Jackfish)and the North West Redwater bitumen upgrader and refinery;construction by third parties of new,or expansion of existing,pipeline capacity or other means of transportation of bitumen,crude oil,natural gas,NGL

106、s,or SCO that the Company may be reliant upon to transport its products to market;the abandonment and decommissioning of certain assets and the timing thereof;the development and deployment of technology and technological innovations;the financial capacity of the Company to complete its growth proje

107、cts and responsibly and sustainably grow in the long-term;and the materiality of the impact of litigation and tax interpretations on the Companys results,also constitute forward-looking statements.These forward-looking statements are based on annual budgets and multi-year forecasts,and are reviewed

108、and revised throughout the year as necessary in the context of targeted financial ratios,project returns,product pricing expectations and balance in project risk and time horizons.These statements are not guarantees of future performance and are subject to certain risks.The reader should not place u

109、ndue reliance on these forward-looking statements as there can be no assurances that the plans,initiatives or expectations upon which they are based will occur.In addition,statements relating to reserves are deemed to be forward-looking statements as they involve the implied assessment based on cert

110、ain estimates and assumptions that the reserves described can be profitably produced in the future.There are numerous uncertainties inherent in estimating quantities of proved and proved plus probable crude oil,natural gas and NGLs reserves and in projecting future rates of production and the timing

111、 of development expenditures.The total amount or timing of actual future production may vary significantly from reserves and production estimates.The forward-looking statements are based on current expectations,estimates and projections about the Company and the industry in which the Company operate

112、s,which speak only as of the earlier of the date such statements were made or as of the date of the report or document in which they are contained,and are subject to known and unknown risks and uncertainties that could cause the actual results,performance or achievements of the Company to be materia

113、lly different from any future results,performance or achievements expressed or implied by such forward-looking statements.Such risks and uncertainties include,among others:general economic and business conditions(including as a result of the actions of OPEC+,the impact of conflicts in the Middle Eas

114、t and in Ukraine,increased inflation,and the risk of decreased economic activity resulting from a global recession)which may impact,among other things,demand and supply for and market prices of the Companys products,and the availability and cost of resources required by the Companys operations;volat

115、ility of and assumptions regarding crude oil,natural gas and NGLs prices;fluctuations in currency and interest rates;assumptions on which the Companys current targets are based;economic conditions in the countries and regions in which the Company conducts business;changes and uncertainty in the inte

116、rnational trade environment,including with respect to tariffs,export restrictions,embargoes and key trade agreements(including the tariffs on certain goods announced by the US government and Canadian countermeasures subsequently announced,both of which are anticipated to evolve);uncertainty in the r

117、egulatory framework governing greenhouse gas emissions,including among other things,financial and other support from various levels of government for climate related initiatives and potential emissions or production caps,political uncertainty,including changes in government,actions of or against ter

118、rorists,insurgent groups or other conflict including conflict between states;the ability of the Company to prevent and recover from a cyberattack,other cyber-related crime and other cyber-related incidents;industry capacity;ability of the Company to implement its business strategy,including explorat

119、ion and development activities;the impact of competition;the Companys defense of lawsuits;availability and cost of seismic,drilling and other equipment;ability of the Company to complete capital programs;the Companys ability to secure adequate transportation for its products;unexpected disruptions o

120、r delays in the mining,extracting or upgrading of the Companys bitumen products;potential delays or changes in plans with respect to exploration or development projects or capital expenditures;ability of the Company to attract the necessary labour required to build,maintain,and operate its thermal a

121、nd oil sands mining projects;operating hazards and other difficulties inherent in the exploration for and production and sale of crude oil and natural gas and in the mining,extracting or upgrading the Companys bitumen products;availability and cost of financing;the Companys success of exploration an

122、d development activities and its ability to replace and expand crude oil and natural gas reserves;the Companys ability to meet its targeted production levels;timing and success of integrating the business and operations of acquired companies and assets,including the acquired working interests in AOS

123、P and Duvernay assets from Chevron Canada Limited(Chevron)in December 11Canadian Natural 2024 Annual Report2024;production levels;imprecision of reserves estimates and estimates of recoverable quantities of crude oil,natural gas and NGLs not currently classified as proved;actions by governmental aut

124、horities;government regulations and the expenditures required to comply with them(especially safety,competition,environmental laws and regulations,and the impact of climate change initiatives on capital expenditures and production expenses);interpretations of applicable tax and competition laws and

125、regulations;asset retirement obligations;the sufficiency of the Companys liquidity to support its growth strategy and to sustain its operations in the short-,medium-,and long-term;the strength of the Companys balance sheet;the flexibility of the Companys capital structure;the adequacy of the Company

126、s provision for taxes;the impact of legal proceedings to which the Company is party;and other circumstances affecting revenues and expenses.The Companys operations have been,and in the future may be,affected by political developments and by national,federal,provincial,state and local laws and regula

127、tions such as restrictions on production,the imposition of tariffs,embargoes or export restrictions on the Companys products(including the tariffs on certain goods announced by the US government and Canadian countermeasures subsequently announced,both of which are anticipated to evolve),changes in t

128、axes,royalties and other amounts payable to governments or governmental agencies,price or gathering rate controls and environmental protection regulations.Should one or more of these risks or uncertainties materialize,or should any of the Companys assumptions prove incorrect,actual results may vary

129、in material respects from those projected in the forward-looking statements.The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent upon other factors,and the Companys course of action would depend upon its assessment of

130、 the future considering all information then available.Readers are cautioned that the foregoing list of factors is not exhaustive.Unpredictable or unknown factors not discussed in this MD&A could also have adverse effects on forward-looking statements.Although the Company believes that the expectati

131、ons conveyed by the forward-looking statements are reasonable based on information available to it on the date such forward-looking statements are made,no assurances can be given as to future results,levels of activity and achievements.All subsequent forward-looking statements,whether written or ora

132、l,attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.Except as required by applicable law,the Company assumes no obligation to update forward-looking statements in this MD&A,whether as a result of new information,futur

133、e events or other factors,or the foregoing factors affecting this information,should circumstances or the Companys estimates or opinions change.SPECIAL NOTE REGARDING NON-GAAP AND OTHER FINANCIAL MEASURESThis MD&A includes references to non-GAAP measures,which include non-GAAP and other financial me

134、asures as defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure(NI 52-112).Non-GAAP measures are used by the Company to evaluate its financial performance,financial position or cash flow.Descriptions of the Companys non-GAAP and other financial measures included in t

135、his MD&A,and reconciliations to the most directly comparable GAAP measure,as applicable,are provided in the Non-GAAP and Other Financial Measures section of this MD&A.SPECIAL NOTE REGARDING COMMON SHARE SPLIT AND COMPARATIVE FIGURESAt the Companys Annual and Special Meeting held on May 2,2024,shareh

136、olders passed a Special Resolution approving a two for one common share split effective for shareholders of record as of market close on June 3,2024.On June 10,2024,shareholders of record received one additional share for every one common share held,with common shares trading on a split-adjusted bas

137、is beginning June 11,2024.Common share,per common share,dividend,and stock option amounts for periods prior to the two for one common share split have been updated to reflect the common share split.SPECIAL NOTE REGARDING AMENDMENTS TO THE COMPETITION ACT(CANADA)On June 20,2024,amendments to the Comp

138、etition Act(Canada)came into force with the adoption of Bill C-59,An Act to Implement Certain Provisions of the Fall Economic Statement,which impacted environmental and climate disclosures by businesses.As a result of these amendments,certain public representations by a business regarding the benefi

139、ts of the work it is doing to protect or restore the environment or mitigate the environmental and ecological causes or effects of climate change may violate the Competition Acts deceptive marketing practices provisions.These amendments include substantial financial penalties and,effective June 20,2

140、025,a private right of action which will permit private parties to seek an order from the Competition Tribunal under the deceptive marketing practices provisions.Uncertainty surrounding the interpretation and enforcement of this legislation may expose the Company to increased litigation and financia

141、l penalties,the outcome and impacts of which can be difficult to assess or quantify and may have a material adverse effect on the Companys business,reputation,financial condition,and results.SPECIAL NOTE REGARDING CURRENCY,FINANCIAL INFORMATION,PRODUCTION AND RESERVESThis MD&A should be read in conj

142、unction with the Companys audited consolidated financial statements for the year ended December31,2024.It should also be read in conjunction with the Companys MD&A for the three months and year ended December31,2024.All dollar amounts are referenced in millions of Canadian dollars,except where noted

143、 otherwise.The Companys audited consolidated financial statements for the year ended December 31,2024 and this MD&A have been prepared in accordance with IFRS as issued by the IASB.Canadian Natural 2024 Annual Report12Production volumes,per unit statistics and reserves data are presented throughout

144、this MD&A on a before royalties or company gross basis,and realized prices are net of blending and feedstock costs and exclude the effect of risk management activities.In addition,reference is made to crude oil and natural gas in common units called barrel of oil equivalent(BOE).A BOE is derived by

145、converting six thousand cubic feet(Mcf)of natural gas to one barrel(bbl)of crude oil(6 Mcf:1 bbl).This conversion may be misleading,particularly if used in isolation,since the 6 Mcf:1 bbl ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not re

146、present a value equivalency at the wellhead.In comparing the value ratio using current crude oil prices relative to natural gas prices,the 6 Mcf:1 bbl conversion ratio may be misleading as an indication of value.In addition,for the purposes of this MD&A,crude oil is defined to include the following

147、commodities:light and medium crude oil,primary heavy crude oil,Pelican Lake heavy crude oil,bitumen(thermal oil),and SCO.Production on an after royalties or company net basis is also presented for information purposes only.The following discussion and analysis refers primarily to the Companys 2024 f

148、inancial results compared to 2023 and 2022,unless otherwise indicated.In addition,this MD&A details the Companys targeted capital program for 2025.The accompanying tables form an integral part of this MD&A.Additional information relating to the Company,including its quarterly MD&A for the three mont

149、hs and year ended December31,2024,its Annual Information Form for the year ended December31,2024,and its audited consolidated financial statements for the year ended December 31,2024,is available on SEDAR+at www.sedarplus.ca,and on EDGAR at www.sec.gov.Information on the Companys website does not fo

150、rm part of and is not incorporated by reference in this MD&A.This MD&A is dated March5,2025.13Canadian Natural 2024 Annual ReportObjectives and StrategyThe Companys objectives are to increase crude oil and natural gas production,reserves,cash flow and net asset value on a per common share basis thro

151、ugh the economic and sustainable development of its existing crude oil and natural gas properties and through the discovery and/or acquisition of new reserves.The Company strives to meet these objectives and its commitments to environmental stewardship and safety excellence.The Company endeavors to

152、meet these objectives by having a defined growth and value enhancement plan for each of its products and segments.The Company takes a balanced approach to growth and investments,and focuses on creating long-term shareholder value,including through its dividend and share buyback programs,in accordanc

153、e with its capital allocation policy.The Company allocates its capital by maintaining:Balance among its products,namely light and medium crude oil and NGLs,primary heavy crude oil,Pelican Lake heavy crude oil(1),bitumen(thermal oil),SCO,and natural gas;A large,balanced,diversified,high quality,long

154、life low decline asset base;Balance among acquisitions,development and exploration;Balance between sources and terms of debt financing and a strong financial position;andCommitment to environmental stewardship throughout the decision-making process.The Companys three-phase crude oil marketing strate

155、gy includes:Blending various crude oil streams with diluents to create more attractive feedstock;Expanding market access for crude oil and natural gas by supporting and participating in pipeline and infrastructure projects that add incremental transportation capacity to existing and new markets;andS

156、upporting and participating in projects that will increase the downstream conversion capacity for heavy crude oil and bitumen(thermal oil).Operational discipline,safe,effective and efficient operations,and cost control are fundamental to the Company and embrace the key piece of the Companys mission

157、statement:doing it right.By consistently managing costs throughout all cycles of the industry,the Company believes it will achieve continued growth.Effective and efficient operations and cost control are attained by developing area knowledge,and by maintaining high working interests and operator sta

158、tus in the Companys properties.The Company is committed to maintaining a strong balance sheet and flexible capital structure.The Company believes it has built the necessary financial capacity to develop its reserves,execute on growth projects and take advantage of favourable acquisition opportunitie

159、s.Additionally,the Company periodically utilizes its risk management hedging program to reduce the risk of volatility in commodity prices and foreign exchange rates,and corresponding cash flows.Strategic accretive acquisitions are a key component of the Companys strategy.The Company has used a combi

160、nation of internally generated cash flows and debt and equity financing to selectively acquire properties generating future cash flows in its core areas.The Companys financial discipline,commitment to a strong balance sheet,and capacity to internally generate cash flows provide the means to responsi

161、bly and sustainably grow in the long term.(1)Pelican Lake heavy crude oil is 1217 API oil,which receives medium quality crude netbacks due to lower production expense and lower royalty rates.Canadian Natural 2024 Annual Report14Financial and Operational Highlights(1)($millions,except per common shar

162、e amounts)202420232022Product sales(1)$41,509$40,835$49,530 Crude oil and NGLs$39,084$37,300$43,009 Natural gas$1,568$2,575$5,236 Net earnings$6,106$8,233$10,937 Per common share basic$2.87$3.77$4.82 diluted$2.85$3.74$4.76 Adjusted net earnings from operations(2)$7,414$8,533$12,863 Per common share

163、basic(3)$3.49$3.91$5.67 diluted(3)$3.46$3.87$5.60 Cash flows from operating activities$13,386$12,353$19,391 Adjusted funds flow(2)$14,859$15,274$19,791 Per common share basic(3)$6.99$7.00$8.72 diluted(3)$6.94$6.93$8.61 Dividends declared per common share(4)$2.14$1.85$2.30 Total assets$85,359$75,955$

164、76,142 Long-term debt,net(5)$18,688$9,922$10,525 Cash flows used in investing activities$14,095$4,858$4,987 Net capital expenditures(6)$14,431$4,909$5,136 Abandonment expenditures,net(2)$646$509$335 Average realized priceCrude oil and NGLs Exploration and Production($/bbl)(3)$77.76$72.36$90.64 Natur

165、al gas Exploration and Production($/Mcf)(7)$1.86$3.10$6.55 SCO Oil Sands Mining and Upgrading($/bbl)(3)$98.03$100.06$117.69 Daily production,before royalties(BOE/d)1,363,496 1,332,105 1,281,434 Crude oil and NGLs(bbl/d)1,005,603 973,530 933,149 Natural gas(MMcf/d)(8)2,147 2,151 2,090(1)Further detai

166、ls related to product sales are disclosed in note 22 to the Companys audited consolidated financial statements.(2)Non-GAAP Financial Measure.Refer to the Non-GAAP and Other Financial Measures section of this MD&A.(3)Non-GAAP Ratio.Refer to the Non-GAAP and Other Financial Measures section of this MD

167、&A.(4)On March 5,2025,the Board of Directors approved a 4%increase in the quarterly dividend to$0.5875 per common share,beginning with the dividend payable on April 4,2025.On October 7,2024,the Board of Directors approved a 7%increase in the quarterly dividend to$0.5625 per common share,beginning wi

168、th the dividend paid on January 3,2025.On February 28,2024,the Board of Directors approved a 5%increase in the quarterly dividend to$0.525 per common share.On November 1,2023,the Board of Directors approved an 11%increase in the quarterly dividend to$0.50 per common share.On March 1,2023,the Board o

169、f Directors approved a 6%increase in the quarterly dividend to$0.45 per common share.On November 2,2022,the Board of Directors approved a 13%increase in the quarterly dividend to$0.425 per common share.On August 3,2022,the Board of Directors approved a special dividend of$0.75 per common share.On Ma

170、rch 2,2022,the Board of Directors approved a 28%increase in the quarterly dividend to$0.375 per common share.(5)Capital management measure.Refer to note 16 to the Companys audited consolidated financial statements.(6)Non-GAAP Financial Measure.The composition of this measure was updated for all peri

171、ods presented.Refer to the Non-GAAP and Other Financial Measures section of this MD&A.(7)Calculated as natural gas sales divided by sales volumes.(8)Natural gas production volumes approximate sales volumes.(1)Common share,per common share,dividend,and stock option amounts have been updated to reflec

172、t the two for one common share split.Further details are disclosed in the Advisory section of this MD&A and in note 1 to the Companys audited consolidated financial statements.15Canadian Natural 2024 Annual ReportCONSOLIDATED NET EARNINGS AND ADJUSTED NET EARNINGS FROM OPERATIONSFor 2024,the Company

173、 reported net earnings of$6,106 million compared with$8,233 million for 2023(2022$10,937 million).Net earnings for 2024 included non-operating losses,net of tax,of$1,308 million compared with non-operating losses of$300million for 2023(2022 non-operating losses of$1,926 million)related to the effect

174、s of share-based compensation,risk management activities,fluctuations in foreign exchange rates,realized foreign exchange on the repayment of US dollar debt securities,the gain from investments,a recoverability charge related to the notice to withdraw from Block 11B/12B in South Africa in 2024,and a

175、 recoverability charge related to the increase in estimate of the future abandonment costs for the Ninian field in the North Sea in 2024 and 2023.Excluding these items,adjusted net earnings from operations for 2024 were$7,414million compared with$8,533 million for 2023(2022$12,863million).The decrea

176、se in net earnings and adjusted net earnings from operations for 2024 compared with 2023 primarily reflected:lower realized natural gas pricing in the North America Exploration and Production segment;andlower netbacks(1)in the Oil Sands Mining and Upgrading segment;partially offset by:higher realize

177、d crude oil and NGLs pricing(1)in the North America Exploration and Production segment;andhigher SCO sales volumes in the Oil Sands Mining and Upgrading segment.A detailed reconciliation of the changes in the Companys product sales is provided in the Analysis of Changes in Product Sales section of t

178、his MD&A.The impacts of depletion,depreciation and amortization,share-based compensation,risk management activities,fluctuations in foreign exchange rates,and the gain from investments also contributed to the decrease in net earnings for 2024 from 2023.These items are discussed in detail in the rele

179、vant sections of this MD&A.CASH FLOWS FROM OPERATING ACTIVITIES AND ADJUSTED FUNDS FLOWCash flows from operating activities for 2024 were$13,386 million compared with$12,353 million for 2023(2022$19,391million).The increase in cash flows from operating activities for 2024 from 2023 were primarily du

180、e to the factors previously noted related to the fluctuations in adjusted net earnings from operations,together with the impact of net changes in non-cash working capital.Adjusted funds flow for 2024 was$14,859 million($6.99 per common share(2)compared with$15,274 million($7.00 per common share(2)fo

181、r 2023(2022$19,791 million;$8.72 per common share(2).The decrease in adjusted funds flow for 2024 from 2023 was primarily due to the factors noted above related to the increase in cash flows from operating activities,excluding the impact of the net change in non-cash working capital,abandonment expe

182、nditures,and movements in other long-term assets,including the unamortized cost of contributions to the Companys employee bonus program,accrued interest on PRT recoveries,and prepaid cost of service tolls.PRODUCTION VOLUMESRecord crude oil and NGLs production before royalties for 2024 of 1,005,603 b

183、bl/d increased 3%from 973,530 bbl/d in 2023(2022 933,149 bbl/d).Natural gas production before royalties for 2024 averaged 2,147 MMcf/d,comparable with2,151MMcf/d in 2023(2022 2,090 MMcf/d).Total production before royalties for 2024 of 1,363,496 BOE/d was comparable with 1,332,105 BOE/d in 2023(2022

184、1,281,434 BOE/d).Crude oil and NGLs and natural gas production volumes are discussed in detail in the Daily Production section of this MD&A.PRODUCT PRICESIn the Companys Exploration and Production segments,the 2024 realized crude oil and NGLs prices increased 7%to average$77.76 per bbl from$72.36 pe

185、r bbl in 2023(2022$90.64 per bbl),and the 2024 realized natural gas price decreased 40%to average$1.86 per Mcf from$3.10 per Mcf in 2023(2022$6.55 per Mcf).In the Oil Sands Mining and Upgrading segment,the Companys 2024 realized SCO sales price averaged$98.03 per bbl,comparable with$100.06 per bbl i

186、n 2023(2022$117.69per bbl).The Companys realized pricing reflected prevailing benchmark pricing.Crude oil and NGLs and natural gas prices are discussed in detail in the Business Environment and Outlook,Realized Product Prices Exploration and Production,and the Oil Sands Mining and Upgrading sections

187、 of this MD&A.(1)Non-GAAP Ratio.Refer to the Non-GAAP and Other Financial Measures section of this MD&A.(2)Common share,per common share,dividend,and stock option amounts have been updated to reflect the two for one common share split.Further details are disclosed in the Advisory section of this MD&

188、A and in note 1 to the Companys audited consolidated financial statements.Canadian Natural 2024 Annual Report16PRODUCTION EXPENSEIn the Companys Exploration and Production segments,the 2024 crude oil and NGLs production expense(1)decreased 9%to average$14.72 per bbl from$16.12 per bbl in 2023(2022$1

189、8.17 per bbl),and natural gas production expense(1)averaged$1.22 per Mcf in 2024,a decrease of 6%from$1.30 per Mcf in 2023(2022$1.22 per Mcf).In the Oil Sands Mining and Upgrading segment,the 2024 production expense(1)averaged$22.88 per bbl,a decrease of 6%from$24.32 per bbl in 2023(2022$26.04 per b

190、bl).Crude oil and NGLs and natural gas production expense is discussed in detail in the Production Expense Exploration and Production and the Oil Sands Mining and Upgrading sections of this MD&A.SUMMARY OF QUARTERLY FINANCIAL RESULTSThe following is a summary of the Companys quarterly financial resu

191、lts for the eight most recently completed quarters:($millions,except per common share amounts)2024TotalDec 31Sep 30Jun 30Mar 31Product sales(1)$41,509$11,064$10,401$10,622$9,422 Crude oil and NGLs$39,084$10,381$9,943$10,084$8,676 Natural gas$1,568$451$257$331$529 Net earnings$6,106$1,138$2,266$1,715

192、$987 Net earnings per common share(2)basic$2.87$0.54$1.07$0.80$0.46 diluted$2.85$0.54$1.06$0.80$0.46 2023TotalDec 31Sep 30Jun 30Mar 31Product sales(1)$40,835$10,679$11,762$8,846$9,548 Crude oil and NGLs$37,300$9,829$10,944$8,115$8,412 Natural gas$2,575$603$599$522$851 Net earnings$8,233$2,627$2,344$

193、1,463$1,799 Net earnings per common share(2)basic$3.77$1.22$1.08$0.67$0.82 diluted$3.74$1.21$1.06$0.66$0.81(1)Further details related to product sales are disclosed in note 22 to the Companys audited consolidated financial statements.(2)Common share,per common share,dividend,and stock option amounts

194、 have been updated to reflect the two for one common share split.Further details are disclosed in the Advisory section of this MD&A and in note 1 to the Companys audited consolidated financial statements.Volatility in the quarterly net earnings over the eight most recently completed quarters was pri

195、marily due to:Crude oil pricing Fluctuations in global supply/demand including crude oil production levels from OPEC+and its impact on world supply,the impact of geopolitical and market uncertainties(including those due to the conflicts in the Middle East and in Ukraine)on worldwide benchmark pricin

196、g,the impact of shale oil production in North America,the impact of the start-up of the TMX pipeline,the impact of the WCS Heavy Differential from WTI in North America,and the impact of the differential between WTI and Brent benchmark pricing in the International segments.Natural gas pricing Fluctua

197、tions in both the demand for natural gas and inventory storage levels,the impact of third-party pipeline maintenance and outages,the impact of geopolitical and market uncertainties,the impact of seasonal conditions,and the impact of shale gas production in the US.Crude oil and NGLs sales volumes Flu

198、ctuations in production from Kirby and Jackfish,fluctuations in production due to the cyclic nature of Primrose,fluctuations in the Companys drilling program in the North America Exploration and Production segment,natural field decline rates,the impact of turnarounds and pitstops in the Oil Sands Mi

199、ning and Upgrading segment,the impact and timing of acquisitions,including the acquisition of working interests in AOSP and Duvernay assets from Chevron in the fourth quarter of 2024,wildfires,and a third-party pipeline outage in 2023 in the North America Exploration and Production segment.Sales vol

200、umes also reflected fluctuations due to timing of liftings and maintenance activities in the International segments.Natural gas sales volumes Fluctuations in production due to the Companys drilling program in the North America Exploration and Production segment,the impact and timing of acquisitions,

201、including the acquisition of a working interest in the Duvernay assets from Chevron in the fourth quarter of 2024,natural field decline rates,the impact of seasonal conditions,wildfires,and a third-party pipeline outage in 2023 in the North America Exploration and Production segment.(1)Calculated as

202、 respective production expense divided by respective sales volumes.17Canadian Natural 2024 Annual ReportProduction expense Fluctuations primarily due to the impacts of the demand and cost for services,fluctuations in product mix and production volumes,seasonal conditions,increased carbon tax,fluctua

203、ting energy costs,inflationary cost pressures,cost optimizations across all segments,turnarounds and pitstops in the Oil Sands Mining and Upgrading segment,and maintenance activities in the International segments.Depletion,depreciation and amortization expense Fluctuations due to changes in sales vo

204、lumes,timing of acquisitions,proved reserves,asset retirement obligations,finding and development costs associated with crude oil and natural gas exploration,estimated future costs to develop the Companys proved undeveloped reserves,fluctuations in International sales volumes subject to higher deple

205、tion rates,the impact of turnarounds and pitstops in the Oil Sands Mining and Upgrading segment,a recoverability charge at December 31,2024 and December 31,2023 relating to the increase in estimate of future abandonment costs for the planned decommissioning activities at the Ninian field in the Nort

206、h Sea,and a recoverability charge at June 30,2024 relating to the notice to withdraw from Block 11B/12B in South Africa.Share-based compensation Fluctuations due to the measurement of fair market value of the Companys share-based compensation liability.Risk management Fluctuations due to the recogni

207、tion of gains and losses from the mark-to-market and subsequent settlement of the Companys risk management activities.Interest expense Fluctuations due to changing long-term debt levels,and the impact of movements in benchmark interest rates on outstanding floating rate long-term debt and accrued in

208、terest on PRT recoveries.Foreign exchange Fluctuations in the Canadian dollar relative to the US dollar,which impact the realized price the Company receives for its crude oil and natural gas sales,as sales prices are based predominantly on US dollar denominated benchmarks.Realized and unrealized for

209、eign exchange gains and losses are also recorded with respect to US dollar denominated debt.Loss(gain)from investments Fluctuations due to the loss(gain)from the Companys investment in PrairieSky Royalty Ltd.shares.Business Environment and OutlookGlobal crude oil benchmark pricing declined in the fo

210、urth quarter of 2024 as a result of weaker global demand growth and concerns of higher non-OPEC+supply,partially offset by continued supply quota management by OPEC+and geopolitical tensions in the Middle East.The start-up of the TMX pipeline in the second quarter of 2024 contributed to a narrowing

211、of the WCS differential with benefit to the Companys realized product pricing in 2024.Natural gas prices remained low as a result of higher storage levels in 2024 but recovered slightly during the fourth quarter due to seasonal demand factors and increased exports.Subsequent to December 31,2024,the

212、US government announced tariffs on certain Canadian goods imported into the United States,with countermeasures subsequently announced by the Canadian government.The effect of these actions may have an impact on the market and pricing received for the Companys products,increase the cost or reduce the

213、 availability of products in the Companys supply chain,and introduce additional foreign currency volatility.The timing,duration and impact of these trade actions remain uncertain.The Company will continue to assess the impacts of the tariffs on its business,financial condition and results.LiquidityA

214、s at December31,2024,the Company had undrawn revolving bank credit facilities of$4,562 million.Including cash and cash equivalents,the Company had approximately$4,693 million in liquidity(1).The Company also has certain other dedicated credit facilities supporting letters of credit.The Company remai

215、ns committed to maintaining a strong balance sheet,adequate available liquidity,and a flexible capital structure.Refer to the Liquidity and Capital Resources section of this MD&A for further details.Capital SpendingOn January 9,2025,the Company announced its 2025 operating capital budget(2)targeted

216、at approximately$6,015million,which includes capital related to a number of acquisitions for which agreements between parties have been reached,with closings targeted in the first half of 2025,and subject to regulatory approvals and other customary closing conditions.With this capital,the Company is

217、 targeting near-term production growth in 2025 and mid-and long-term production and capacity growth in 2026 and beyond.In addition,the Company has approved approximately$135 million of capital,consisting of$90million related to carbon capture and$45 million related to a one-time office move schedule

218、d to take place through 2026.The Company targets$787million in abandonment expenditures for 2025.Production for 2025 is targeted between 1,510 MBOE/d and 1,555MBOE/d.(1)Non-GAAP Financial Measure.Refer to the Non-GAAP and Other Financial Measures section of this MD&A.(2)Forward-looking non-GAAP Fina

219、ncial Measure.The operating capital budget is based on net capital expenditures(Non-GAAP Financial Measure).Refer to the Non-GAAP and Other Financial Measures section of this MD&A for more details on Net Capital Expenditures.Canadian Natural 2024 Annual Report18Annual budgets are developed and scrut

220、inized throughout the year and can be changed,if necessary,in the context of price volatility,project returns and the balancing of project risks and time horizons.The 2025 capital budget constitutes forward-looking statements and is based on net capital expenditures(Non-GAAP Financial Measure).Refer

221、 to the Advisory section of this MD&A for further details on forward-looking statements.BENCHMARK COMMODITY PRICES(Yearly average)202420232022WTI benchmark price(US$/bbl)$75.72$77.61$94.23 Dated Brent benchmark price(US$/bbl)$80.75$82.61$99.80 WCS Heavy Differential from WTI(US$/bbl)$14.73$18.62$18.

222、26 SCO price(US$/bbl)$75.09$79.64$98.66 Condensate benchmark price(US$/bbl)$72.94$76.55$93.69 NYMEX benchmark price(US$/MMBtu)$2.27$2.74$6.64 AECO benchmark price(C$/GJ)$1.36$2.77$5.28 US/Canadian dollar average exchange rate(US$)$0.7300$0.7409$0.7686 US/Canadian dollar year end exchange rate(US$)$0

223、.6942$0.7573$0.7389 Substantially all of the Companys production is sold based on US dollar benchmark pricing.Specifically,crude oil is marketed based on WTI and Brent indices.Canadian natural gas pricing is primarily based on AECO reference pricing,which is derived from the NYMEX reference pricing

224、and adjusted for its basis or location differential to the NYMEX delivery point at Henry Hub.The Companys realized prices are directly impacted by fluctuations in foreign exchange rates resulting in product revenues being impacted by changes in Canadian dollar sales prices relative to the US dollar

225、benchmark prices.Crude oil sales contracts in North America are typically based on WTI benchmark pricing.WTI averaged US$75.72 per bbl for 2024,comparable with US$77.61 per bbl for 2023(2022 US$94.23 per bbl).Crude oil sales contracts for the Companys International segments are typically based on Br

226、ent benchmark pricing,which is representative of international markets and overall global supply and demand.Brent averaged US$80.75 per bbl for 2024,comparable with US$82.61 per bbl for 2023(2022 US$99.80 per bbl).The decrease in WTI and Brent benchmark pricing for 2024 from 2023 primarily reflected

227、 weaker global demand growth and concerns of higher non-OPEC+supply,partially offset by continued supply quota management by OPEC+,and geopolitical tensions in the Middle East.The WCS Heavy Differential averaged US$14.73 per bbl for 2024 compared with US$18.62 per bbl for 2023(2022 US$18.26per bbl).

228、The narrowing of the WCS Heavy Differential for 2024 from 2023 primarily reflected the start-up of the TMX pipeline in the second quarter of 2024,combined with stronger US Gulf Coast heavy oil pricing.The SCO price averaged US$75.09 per bbl for 2024,a decrease of 6%from US$79.64 per bbl for 2023(202

229、2 US$98.66per bbl).The decrease in SCO pricing for 2024 from 2023 primarily reflected weaker diesel pricing,together with increased production in the Western Canadian Sedimentary Basin(WCSB)in 2024.NYMEX natural gas prices averaged US$2.27 per MMBtu for 2024,a decrease of 17%from US$2.74 per MMBtu f

230、or 2023(2022 US$6.64 per MMBtu).The decrease in NYMEX natural gas prices for 2024 from 2023 primarily reflected high North American and European inventory levels resulting from weaker demand following mild winter weather in 2024.AECO natural gas prices averaged$1.36 per GJ for 2024,a decrease of 51%

231、from$2.77 per GJ for 2023(2022$5.28perGJ).The decrease in AECO natural gas prices for 2024 from 2023 reflected high storage inventories resulting from weaker demand and increased production levels in the WCSB,combined with weaker NYMEX benchmark pricing.19Canadian Natural 2024 Annual ReportAnalysis

232、of Changes in Product SalesChanges due toChanges due to($millions)2022VolumesPricesOther2023VolumesPricesOther 2024 North AmericaCrude oil and NGLs$20,755$730$(4,110)$17,375$283$1,082$18,740 Natural gas 4,931 153 (2,709)2,375 3 (963)1,415 Other(1)217 (207)10 (4)6 25,903 883 (6,819)(207)19,760 286 11

233、9 (4)20,161 North SeaCrude oil and NGLs 623 (117)(71)435 30 2 467 Natural gas 13 (3)(3)7 1 (1)7 Other(1)4 4 636 (120)(74)442 31 1 4 478 Offshore AfricaCrude oil and NGLs 694 1 (118)577 (142)(1)434 Natural gas 55 (8)4 51 (7)(2)42 Other(1)8 1 9 (5)4 757 (7)(114)1 637 (149)(3)(5)480 Oil Sands Mining an

234、d UpgradingCrude oil and NGLs 20,804 1,012 (3,155)18,661 823 (221)19,263 Other(1)149 (144)5 11 16 20,953 1,012 (3,155)(144)18,666 823 (221)11 19,279 Midstream and RefiningMidstream activities 80 (4)76 6 82 Refined product sales and other(1)906 20 926 (113)813 986 16 1,002 (107)895 Inter-segment Elim

235、ination and Other(2)Product sales 290 28 318 (116)202 Other(1)5 5 10 4 14 295 33 328 (112)216 Total$49,530$1,768$(10,162)$(301)$40,835$991$(104)$(213)$41,509(1)Includes the sale of diesel and other refined products and other income,including government grants and recoveries associated with the joint

236、 operations partners share of the costs of lease contracts.(2)Eliminates internal transportation and electricity charges and includes production,processing and other purchasing and selling activities that are not included in the above segments.Product sales increased 2%to$41,509 million for 2024 fro

237、m$40,835 million for 2023(2022$49,530 million).The increase in product sales was primarily due to higher realized crude oil and NGLs pricing and sales volumes in North America,together with higher SCO sales volumes in the Oil Sands Mining and Upgrading segment,partially offset by lower realized natu

238、ral gas pricing,and lower realized SCO pricing.Crude oil and NGLs and natural gas pricing are discussed in detail in the Business Environment and Outlook,Exploration and Production and the Oil Sands Mining and Upgrading sections of this MD&A.Crude oil and NGLs and natural gas production volumes are

239、discussed in detail in the Daily Production section of this MD&A.For 2024,2%of the Companys crude oil and NGLs and natural gas product sales were generated outside of North America(2023 3%;2022 3%).North Sea accounted for 1%of crude oil and NGLs and natural gas product sales for 2024(2023 1%;2022 1%

240、),and Offshore Africa accounted for 1%of crude oil and NGLs and natural gas product sales for 2024(2023 2%;2022 2%).Canadian Natural 2024 Annual Report20Daily ProductionDAILY PRODUCTION,BEFORE ROYALTIES202420232022Crude oil and NGLs(bbl/d)North America Exploration and Production 509,288 496,100 479,

241、971 North America Oil Sands Mining and Upgrading(1)472,245 451,339 425,945 International Exploration and ProductionNorth Sea 11,536 12,639 12,890 Offshore Africa 12,534 13,452 14,343 Total International(2)24,070 26,091 27,233 Total Crude oil and NGLs 1,005,603 973,530 933,149 Natural gas(MMcf/d)(3)N

242、orth America 2,136 2,139 2,075 InternationalNorth Sea 2 2 2 Offshore Africa 9 10 13 Total International 11 12 15 Total Natural gas 2,147 2,151 2,090 Total Barrels of oil equivalent(BOE/d)1,363,496 1,332,105 1,281,434 Product mixLight and medium crude oil and NGLs10%10%11%Pelican Lake heavy crude oil

243、3%3%4%Primary heavy crude oil6%6%5%Bitumen(thermal oil)20%20%20%Synthetic crude oil(1)35%34%33%Natural gas26%27%27%Percentage of product sales(1)(4)(5)Crude oil and NGLs96%93%88%Natural gas4%7%12%(1)SCO production before royalties excludes SCO consumed internally as diesel.(2)International includes

244、North Sea and Offshore Africa Exploration and Production segments in all instances used in this MD&A.(3)Natural gas production volumes approximate sales volumes.(4)Net of blending and feedstock costs and excluding risk management activities.(5)Excluding Midstream and Refining revenue.21Canadian Natu

245、ral 2024 Annual ReportDAILY PRODUCTION,NET OF ROYALTIES202420232022Crude oil and NGLs(bbl/d)North America Exploration and Production 408,237 406,534 374,089 North America Oil Sands Mining and Upgrading(1)386,171 385,996 351,740 International Exploration and ProductionNorth Sea 11,509 12,609 12,849 O

246、ffshore Africa 11,918 12,183 12,972 Total International 23,427 24,792 25,821 Total Crude oil and NGLs 817,835 817,322 751,650 Natural gas(MMcf/d)North America 2,091 2,055 1,885 InternationalNorth Sea 2 2 2 Offshore Africa 9 10 11 Total International 11 12 13 Total Natural gas 2,102 2,067 1,898 Total

247、 Barrels of oil equivalent(BOE/d)1,168,209 1,161,852 1,068,063(1)SCO production net of royalties excludes SCO consumed internally as diesel.The Companys business approach is to maintain large project inventories and production diversification among each of the commodities it produces;namely light an

248、d medium crude oil and NGLs,primary heavy crude oil,Pelican Lake heavy crude oil,bitumen(thermal oil),SCO,and natural gas.Total 2024 production before royalties averaged 1,363,496 BOE/d,comparable with 1,332,105 BOE/d in 2023(2022 1,281,434BOE/d).Record crude oil and NGLs production before royalties

249、 for 2024 averaged 1,005,603 bbl/d,an increase of 3%from973,530bbl/d for 2023(2022 933,149 bbl/d).The increase in crude oil and NGLs production before royalties for 2024 from 2023 primarily reflected high utilization in the Oil Sands Mining and Upgrading segment,combined with strong drilling results

250、 in the North America Exploration and Production segment.Annual crude oil and NGLs production for 2024 was within the Companys previously issued production target of 977,000 bbl/d and 1,008,000 bbl/d.Annual crude oil and NGLs production for 2025 is targeted to average between 1,106,000 bbl/d and 1,1

251、42,000 bbl/d.Production targets constitute forward-looking statements.Refer to the Advisory section of this MD&A for further details on forward-looking statements.Natural gas production before royalties accounted for 26%of the Companys total production in 2024 on a BOE basis.Natural gas production b

252、efore royalties for 2024 averaged 2,147 MMcf/d,comparable with 2,151 MMcf/d for 2023(2022 2,090MMcf/d).Annual natural gas production for 2024 was within the Companys previously issued production target of 2,120 MMcf/d and 2,230 MMcf/d.Annual natural gas production for 2025 is targeted to average bet

253、ween 2,425 MMcf/d and 2,480 MMcf/d.Production targets constitute forward-looking statements.Refer to the Advisory section of this MD&A for further details on forward-looking statements.North America Exploration and ProductionRecord North America crude oil and NGLs production before royalties for 202

254、4 averaged 509,288 bbl/d,an increase of 3%from 496,100bbl/d for 2023(2022 479,971 bbl/d).The increase in North America crude oil and NGLs production for 2024 from 2023 primarily reflected increased production from thermal oil pad additions,and strong drilling results for liquids-rich natural gas and

255、 heavy oil,partially offset by natural field declines.Thermal oil production before royalties for 2024 averaged 271,011 bbl/d,an increase of 3%from 262,000 bbl/d for 2023(2022 252,018 bbl/d).The increase in thermal oil production for 2024 from 2023 primarily reflected pad additions at Kirby and Jack

256、fish,partially offset by the cyclical nature of Primrose and natural field declines.Pelican Lake heavy crude oil production before royalties averaged 44,779 bbl/d for 2024,a decrease of 5%from 47,078bbl/d for 2023(2022 50,333 bbl/d)reflecting Pelican Lakes long life low decline production.North Amer

257、ica natural gas production before royalties for 2024 averaged 2,136 MMcf/d,comparable with 2,139 MMcf/d for 2023(2022 2,075 MMcf/d).Canadian Natural 2024 Annual Report22North America Oil Sands Mining and UpgradingRecord SCO production before royalties for 2024 averaged 472,245 bbl/d,an increase of 5

258、%from 451,339 bbl/d for 2023(2022 425,945 bbl/d).The increase in SCO production for 2024 from 2023 primarily reflected strong performance and utilization at Horizon following the completion of the reliability enhancement project,and the acquisition of Chevrons assets in December 2024 at AOSP.Interna

259、tional Exploration and ProductionInternational crude oil and NGLs production before royalties for 2024 averaged 24,070 bbl/d,a decrease of 8%from26,091bbl/d for 2023(2022 27,233 bbl/d).The decrease in crude oil and NGLs production for 2024 from 2023 reflected natural field declines.INTERNATIONAL CRU

260、DE OIL INVENTORY VOLUMESThe Company recognizes revenue on its crude oil production when control of the product passes to the customer and delivery has taken place.Revenue has not been recognized in the International segments on crude oil production held in various storage facilities or FPSOs,as foll

261、ows:(bbl)202420232022International 1,051,540 515,543 390,959 Exploration and ProductionOPERATING HIGHLIGHTS202420232022Crude oil and NGLs($/bbl)(1)Realized price(2)$77.76$72.36$90.64 Transportation(2)5.50 4.23 4.13 Realized price,net of transportation(2)72.26 68.13 86.51 Royalties(3)14.85 12.55 18.9

262、1 Production expense(4)14.72 16.12 18.17 Netback(2)$42.69$39.46$49.43 Natural gas($/Mcf)(1)Realized price(5)$1.86$3.10$6.55 Transportation(6)0.62 0.56 0.51 Realized price,net of transportation 1.24 2.54 6.04 Royalties(3)0.05 0.13 0.61 Production expense(4)1.22 1.30 1.22 Netback(7)$(0.03)$1.11$4.21 B

263、arrels of oil equivalent($/BOE)(1)Realized price(2)$50.82$50.54$70.07 Transportation(2)4.78 3.88 3.72 Realized price,net of transportation(2)46.04 46.66 66.35 Royalties(3)8.96 7.77 12.75 Production expense(4)11.73 12.74 13.76 Netback(2)$25.35$26.15$39.84(1)For crude oil and NGLs and BOE sales volume

264、s,refer to the Non-GAAP and Other Financial Measures section of this MD&A.For natural gas sales volumes,refer to the Daily Production,before royalties section of this MD&A.(2)Non-GAAP Ratio.Refer to the Non-GAAP and Other Financial Measures section of this MD&A.(3)Calculated as royalties divided by

265、respective sales volumes.(4)Calculated as production expense divided by respective sales volumes.(5)Calculated as natural gas sales divided by natural gas sales volumes.(6)Calculated as natural gas transportation expense divided by natural gas sales volumes.(7)Natural gas netbacks exclude NGLs netba

266、cks derived from the Companys liquids-rich natural gas plays.23Canadian Natural 2024 Annual ReportREALIZED PRODUCT PRICES EXPLORATION AND PRODUCTION202420232022Crude oil and NGLs($/bbl)(1)North America(2)$76.37$70.51$88.43 International average(3)$108.80$107.46$128.41 North Sea(3)$111.53$110.99$129.

267、04 Offshore Africa(3)$106.00$106.25$127.85 Crude oil and NGLs average(2)$77.76$72.36$90.64 Natural gas($/Mcf)(1)(3)North America$1.81$3.04$6.51 International average$12.01$12.81$12.78 North Sea$9.93$10.45$15.75 Offshore Africa$12.46$13.19$12.23 Natural gas average$1.86$3.10$6.55 Average($/BOE)(1)(2)

268、$50.82$50.54$70.07(1)For crude oil and NGLs and BOE sales volumes,refer to the Non-GAAP and Other Financial Measures section of this MD&A.For natural gas sales volumes,refer to the Daily Production,before royalties section of this MD&A.(2)Non-GAAP Ratio.Refer to the Non-GAAP and Other Financial Meas

269、ures section of this MD&A.(3)Calculated as crude oil and NGLs sales and natural gas sales divided by respective sales volumes.North AmericaNorth America realized crude oil and NGLs prices increased 8%to average$76.37 per bbl for 2024 from$70.51 per bbl for 2023(2022$88.43 per bbl),primarily reflecti

270、ng the narrowing of the WCS Heavy Differential.The Company remains focused on its crude oil blending and marketing strategy,which includes expanding market access within existing pipeline infrastructure,supporting pipeline projects that increase transportation capacity to new markets,and collaborati

271、ng with refiners to enhance heavy conversion capacity.During 2024,the Company contributed approximately 212,000bbl/d of heavy crude oil blends to the WCS stream.The Company has 20-year transportation agreements to ship 169,000 bbl/d of crude oil on the Trans Mountain Pipeline Expansion that provides

272、 waterborne access to international markets.North America realized natural gas prices decreased 40%to average$1.81 per Mcf for 2024 from$3.04 per Mcf for 2023(2022$6.51 per Mcf).The decrease in realized natural gas prices per Mcf for 2024 from 2023 reflected lower AECO benchmark pricing.Comparisons

273、of the prices received in North America Exploration and Production by product type were as follows:(Yearly average)202420232022Wellhead Price(1)Light and medium crude oil and NGLs($/bbl)$69.42$70.72$88.24 Pelican Lake heavy crude oil($/bbl)$82.83$77.69$96.18 Primary heavy crude oil($/bbl)$81.97$75.6

274、7$93.80 Bitumen(thermal oil)($/bbl)$76.57$67.62$85.51 Natural gas($/Mcf)$1.81$3.04$6.51(1)Amounts expressed on a per unit basis are based on sales volumes of the respective product type.InternationalInternational realized crude oil and NGLs prices averaged$108.80 per bbl for 2024,comparable with$107

275、.46 per bbl for 2023(2022$128.41 per bbl).Realized crude oil and NGLs prices per bbl in any particular year are dependent on the terms of the various sales contracts,the frequency and timing of liftings from each field,and prevailing Brent benchmark prices and foreign exchange rates at the time of l

276、ifting.Canadian Natural 2024 Annual Report24ROYALTIES EXPLORATION AND PRODUCTION202420232022Crude oil and NGLs($/bbl)(1)North America$15.40$12.89$19.64 International average$2.75$5.99$6.38 North Sea$0.26$0.33$0.30 Offshore Africa$5.30$10.08$11.79 Crude oil and NGLs average$14.85$12.55$18.91 Natural

277、gas($/Mcf)(1)North America$0.04$0.13$0.61 Offshore Africa$0.57$0.62$1.50 Natural gas average$0.05$0.13$0.61 Average($/BOE)(1)$8.96$7.77$12.75(1)Calculated as royalties divided by respective sales volumes.For crude oil and NGLs and BOE sales volumes,refer to the Non-GAAP and Other Financial Measures

278、section of this MD&A.For natural gas sales volumes,refer to the Daily Production,before royalties section of this MD&A.North AmericaGovernment royalties on a significant portion of North America crude oil and NGLs production fall under the oil sands royalty regime and are calculated on a project by

279、project basis as a percentage of gross revenue less production,capital and abandonment costs incurred.North America crude oil and NGLs and natural gas royalties for 2024 and the comparable periods reflected movements in benchmark commodity prices,fluctuations in the WCS Heavy Differential and the im

280、pact of sliding scale royalty rates.Crude oil and NGLs royalty rates(1)averaged approximately 20%of product sales for 2024,compared with 18%of product sales for 2023(2022 22%).The increase in royalty rates for 2024 from 2023 primarily reflected increased realized heavy oil and bitumen pricing in 202

281、4.Natural gas royalty rates averaged approximately 2%of product sales for 2024,compared with 4%of product sales for 2023(2022 9%).The decrease in royalty rates for 2024 from 2023 primarily reflected lower benchmark pricing.Offshore AfricaUnder the terms of the various Production Sharing Contracts,ro

282、yalty rates fluctuate based on realized commodity pricing,capital expenditures and production expenses,the status of payouts,and the timing of liftings from each field.Royalty rates as a percentage of product sales averaged approximately 5%for 2024 compared with 9%of product sales for 2023(2022 9%).

283、Royalty rates as a percentage of product sales reflected the timing of liftings and the status of payout in the various fields.PRODUCTION EXPENSE EXPLORATION AND PRODUCTION202420232022Crude oil and NGLs($/bbl)(1)North America$12.55$14.46$16.25 International average$62.99$48.16$51.01 North Sea$103.28

284、$85.57$88.99 Offshore Africa$21.77$21.14$17.25 Crude oil and NGLs average$14.72$16.12$18.17 Natural gas($/Mcf)(1)North America$1.19$1.27$1.19 International average$6.51$7.26$5.16 North Sea$8.95$9.85$9.27 Offshore Africa$5.98$6.83$4.40 Natural gas average$1.22$1.30$1.22 Average($/BOE)(1)$11.73$12.74$

285、13.76(1)Calculated as production expense divided by respective sales volumes.For crude oil and NGLs and BOE sales volumes,refer to the Non-GAAP and Other Financial Measures section of this MD&A.For natural gas sales volumes,refer to the Daily Production,before royalties section of this MD&A.(1)Non-G

286、AAP Ratio.Refer to the Non-GAAP and Other Financial Measures section of this MD&A.25Canadian Natural 2024 Annual ReportNorth AmericaNorth America crude oil and NGLs production expense for 2024 averaged$12.55 per bbl,a decrease of 13%from$14.46perbbl for 2023(2022$16.25 per bbl).The decrease in crude

287、 oil and NGLs production expense per bbl for 2024 from 2023 primarily reflected lower energy costs.North America natural gas production expense for 2024 averaged$1.19 per Mcf,a decrease of 6%from$1.27 per Mcf for 2023(2022$1.19 per Mcf).The decrease in natural gas production expense per Mcf for 2024

288、 from 2023 primarily reflected lower energy costs and maintenance activities.InternationalInternational crude oil and NGLs production expense for 2024 averaged$62.99 per bbl,an increase of 31%from$48.16 per bbl for 2023(2022$51.01 per bbl).The increase in crude oil and NGLs production expense per bb

289、l for 2024 from 2023 reflected the timing of liftings from various fields that have different cost structures and the impact of foreign exchange.ADJUSTED DEPLETION,DEPRECIATION AND AMORTIZATION EXPLORATION AND PRODUCTION($millions,except per BOE amounts)202420232022North America$3,831$3,679$3,595 No

290、rth Sea 279 494 1,747 Offshore Africa 297 213 173 Depletion,Depreciation and Amortization$4,407$4,386$5,515 Less:Recoverability charge(1)(2)222 436 1,620 Adjusted depletion,depreciation and amortization(3)$4,185$3,950$3,895$/BOE(4)$12.92$12.27$12.45(1)As at December 31,2024,as a result of refined pr

291、oject scope and cost estimates associated with abandonment activities,the Company recognized a recoverability charge of$160million(December 31,2023$436 million;December 31,2022$1,620 million)in depletion,depreciation and amortization expense related to an increase in its estimate of future abandonme

292、nt costs for the Ninian field in the North Sea.(2)In connection with the Companys notice of withdrawal from Block 11B/12B in South Africa in the second quarter of 2024,the Company derecognized$62million of exploration and evaluation assets through depletion,depreciation and amortization expense.(3)T

293、his is a non-GAAP financial measure used to calculate depletion,depreciation and amortization,less the impact of charges that are not related to current period normal course depletion,depreciation and amortization expense such as asset recoverability charges that are not related to current period pr

294、oduction.It may not be comparable to similar measures presented by other companies and should not be considered an alternative to,or more meaningful than,the most directly comparable financial measure presented in the financial statements(depletion,depreciation and amortization expense),as an indica

295、tion of the Companys performance.(4)This is a non-GAAP ratio calculated as adjusted depletion,depreciation and amortization expense divided by sales volumes.For sales volumes,refer to the Non-GAAP and Other Financial Measures section of this MD&A.Adjusted depletion,depreciation and amortization expe

296、nse for 2024 of$12.92 per BOE increased 5%from$12.27 per BOE for 2023(2022$12.45 per BOE).The increase in adjusted depletion,depreciation and amortization expense per BOE for 2024 from 2023 primarily reflected the impact of changes in North America depletion rates due to changes in reserve estimates

297、 at December 31,2023.Adjusted depletion,depreciation and amortization expense on an absolute and per BOE basis also reflects the impact of the timing of liftings from each field in the North Sea and Offshore Africa.ASSET RETIREMENT OBLIGATION ACCRETION EXPLORATION AND PRODUCTION($millions,except per

298、 BOE amounts)202420232022North America$231$234$171 North Sea 65 46 33 Offshore Africa 9 8 7 Asset Retirement Obligation Accretion$305$288$211$/BOE(1)$0.94$0.89$0.67(1)Calculated as asset retirement obligation accretion divided by sales volumes.For sales volumes,refer to the Non-GAAP and Other Financ

299、ial Measures section of this MD&A.Asset retirement obligation accretion expense represents the increase in the carrying amount of the asset retirement obligation due to the passage of time.Asset retirement obligation accretion expense for 2024 of$0.94 per BOE increased 6%from$0.89per BOE for 2023(20

300、22$0.67 per BOE).The increase in asset retirement obligation accretion expense per BOE for 2024 from 2023 primarily reflected the impact of the Companys estimate for future abandonment costs for the Ninian field in the North Sea at December 31,2023.Canadian Natural 2024 Annual Report26Oil Sands Mini

301、ng and UpgradingOPERATING HIGHLIGHTSThe Company continues to focus on safe,reliable and efficient operations,leveraging its technical expertise across the Horizon and AOSP sites,resulting in record SCO production averaging 472,245 bbl/d in 2024.REALIZEDPRODUCTPRICES,ROYALTIESANDTRANSPORTATIONOILSAND

302、SMININGANDUPGRADING($/bbl)202420232022Realized SCO sales price(1)$98.03$100.06$117.69 Bitumen value for royalty purposes(2)$72.68$65.43$83.07 Bitumen royalties(3)$17.23$14.43$20.71 Transportation(1)$2.91$1.89$1.71(1)Non-GAAP Ratio.Refer to the Non-GAAP and Other Financial Measures section of this MD

303、&A.(2)Calculated as the quarterly average of the bitumen methodology price.(3)Calculated as royalties divided by sales volumes.The realized SCO sales price averaged$98.03 per bbl for 2024,comparable with$100.06 per bbl for 2023(2022$117.69perbbl).Bitumen royalties averaged$17.23 per bbl for 2024,an

304、increase from$14.43 per bbl for 2023(2022$20.71 per bbl)primarily reflecting an increase in average bitumen pricing for royalty purposes in 2024.Transportation expense averaged$2.91 per bbl for 2024,an increase of 54%from$1.89 per bbl for 2023(2022$1.71 per bbl).The increase in transportation expens

305、e per bbl for 2024 from 2023 primarily reflected volumes being shipped on the TMX pipeline beginning in 2024.PRODUCTION EXPENSE OIL SANDS MINING AND UPGRADINGThe following tables are reconciled to the Oil Sands Mining and Upgrading production expense disclosed in note 22 to the Companys audited cons

306、olidated financial statements.($millions)202420232022Production expense,excluding natural gas costs$3,801$3,794$3,743 Natural gas costs 120 195 333 Production expense$3,921$3,989$4,076($/bbl)202420232022Production expense,excluding natural gas costs(1)$22.18$23.13$23.91 Natural gas costs(2)0.70 1.19

307、 2.13 Production expense(3)$22.88$24.32$26.04 Sales volumes(bbl/d)468,280 449,282 428,820(1)Calculated as production expense,excluding natural gas costs divided by sales volumes.(2)Calculated as natural gas costs divided by sales volumes.(3)Calculated as production expense divided by sales volumes.T

308、he Company incurred production expense of$3,921 million for 2024,comparable with$3,989 million for 2023(2022$4,076million),reflecting the Companys continued focus on cost control and driving efficiencies across the Oil Sands Mining and Upgrading segment.Production expense for 2024 of$22.88 per bbl d

309、ecreased 6%from$24.32 per bbl for 2023(2022$26.04 per bbl).The decrease in production expense per bbl for 2024 as compared to 2023 reflected higher production volumes from strong utilization,combined with lower energy costs.27Canadian Natural 2024 Annual ReportDEPLETION,DEPRECIATION AND AMORTIZATION

310、 OIL SANDS MINING AND UPGRADING($millions,except per bbl amounts)202420232022Depletion,depreciation and amortization$2,258$2,011$1,822$/bbl(1)$13.17$12.26$11.64(1)Calculated as depletion,depreciation and amortization divided by sales volumes.Depletion,depreciation and amortization expense for 2024 o

311、f$13.17 per bbl increased 7%from$12.26 per bbl for 2023(2022$11.64 per bbl),primarily reflecting derecognitions related to the Horizon turnaround in the second quarter of 2024,partially offset by higher sales volumes in 2024.ASSET RETIREMENT OBLIGATION ACCRETION OIL SANDS MINING AND UPGRADING($milli

312、ons,except per bbl amounts)202420232022Asset retirement obligation accretion$84$78$70$/bbl(1)$0.49$0.48$0.45(1)Calculated as asset retirement obligation accretion divided by sales volumes.Asset retirement obligation accretion expense represents the increase in the carrying amount of the asset retire

313、ment obligation due to the passage of time.Asset retirement obligation accretion expense for 2024 of$0.49 per bbl was comparable with$0.48 per bbl for 2023(2022$0.45 per bbl).Midstream and Refining($millions)202420232022Product salesMidstream activities$82$76$80 NWRP,refined product sales and other

314、813 926 906 Segmented revenue 895 1,002 986 Less:NWRP,refining toll 295 303 247 Midstream activities 20 29 24 Production expense 315 332 271 NWRP,transportation and feedstock costs 685 664 691 Depreciation 16 16 16 Segmented(loss)earnings$(121)$(10)$8 The Companys Midstream and Refining assets consi

315、st of two crude oil pipeline systems,a 50%working interest in an 84-megawatt cogeneration plant at Primrose,and the Companys 50%equity investment in NWRP.Approximately 25%of the Companys crude oil production is transported through its fully owned and operated Pelican Lake and ECHO pipelines to Edmon

316、ton and Hardisty,Alberta,providing access to international export pipelines.Ownership of these midstream pipeline assets enables the Company to control transportation costs and generate third-party revenue.NWRP operates a 50,000 bbl/d bitumen upgrader and refinery that processes approximately 12,500

317、 bbl/d of bitumen feedstock for the Company(25%toll payer)and 37,500 bbl/d of bitumen feedstock for the Alberta Petroleum Marketing Commission(APMC)(75%toll payer),an agent of the Government of Alberta.The Company is unconditionally obligated to pay its 25%pro rata share of the debt component of the

318、 monthly fee-for-service toll over the 40-year tolling period until 2058.Sales of diesel and refined products and associated refining tolls are recognized in the Midstream and Refining segment.Production of ultra-low sulphur diesel and other refined products for 2024 averaged 76,664 BOE/d(19,166 BOE

319、/d to the Company)(2023 81,525BOE/d;20,381 BOE/d to the Company;2022 58,351 BOE/d;14,588 BOE/d to the Company),reflecting the 25%toll payer commitment.During 2024,NWRP repaid$500 million of 3.20%series A bonds.Additionally,in 2024 NWRP issued$700million of 4.85%series P bonds due June 2034 and$600mi

320、llion of 5.08%series Q bonds due June 2054.During 2024,NWRP entered into a$2,000 million unsecured commercial paper program and reserves capacity under its revolving credit facility for these amounts.Canadian Natural 2024 Annual Report28NWRPs credit facilities consist of a$2,150 million syndicated c

321、redit facility(December 31,2023$3,115 million)comprised of a$1,900 million revolving portion maturing June 2027(December 31,2023$2,175 million),and a$250 million non-revolving portion maturing June 2025(December 31,2023$940 million).The syndicated credit facility reserves capacity for a debt service

322、 reserve equal to six months of anticipated facility interest and fees,and for amounts outstanding under its commercial paper program.During 2024,NWRP amended its syndicated credit facility to extend the revolving portion originally maturing June 2025 to June 2027,and reduce the authorized limit on

323、the revolving portion by$275 million to$1,900 million.In 2024,NWRP repaid$657million on its non-revolving facility,and reduced the authorized limit to$250 million.NWRP also has dedicated short-term borrowings under a$300 million syndicated credit facility(demand operating facility)(December 31,2023$

324、300 million),and$300 million uncommitted demand revolving letter of credit facilities(bilateral facilities)(December 31,2023$150 million).During 2024,NWRP increased its availability on its bilateral facilities,supporting letters of credit,to$300 million(December 31,2023$150 million).As at December31

325、,2024,NWRP had borrowings of$251million under the syndicated credit facility(December31,2023$2,559million),$1,459 million under its commercial paper program(December31,2023$nil),and$103million under its demand operating facility(December31,2023$77million).As at December31,2024,NWRP had$8,750 million

326、 in long-term notes outstanding(December31,2023$7,950 million).As at December 31,2024,the cumulative unrecognized share of the equity loss and partnership distributions from NWRP was$509 million(2023$555 million).The recovery of unrecognized equity losses from NWRP for 2024 was$46 million(2023 unrec

327、ognized equity loss of$4 million;2022 recovery of unrecognized equity losses of$11 million).Corporate and OtherADMINISTRATION EXPENSE($millions,except per BOE amounts)202420232022Expense$503$452$415$/BOE(1)$1.02$0.93$0.88 Sales volumes(BOE/d)(2)1,353,166 1,331,092 1,285,877(1)Calculated as administr

328、ation expense divided by sales volumes.(2)Total Company sales volumes.Administration expense for 2024 of$1.02 per BOE increased 10%from$0.93 per BOE for 2023(2022$0.88 per BOE).Administration expense per BOE increased from 2023 primarily reflecting higher personnel costs,partially offset by higher o

329、verhead recoveries.SHARE-BASED COMPENSATION($millions)202420232022Share-based compensation expense$279$491$804 The Companys Stock Option Plan provides employees with the right to receive common shares or a cash payment in exchange for stock options surrendered.The Performance Share Unit(PSU)plan pro

330、vides certain executive employees of the Company with the right to receive a cash payment,the amount of which is determined with reference to the value of the Companys shares,and by individual employee performance and the extent to which certain other performance measures are met.The Company recogni

331、zed$279 million of share-based compensation expense for 2024,primarily as a result of the measurement of the fair value of outstanding stock options related to the impact of normal course graded vesting of stock options granted in prior periods,the impact of vested stock options exercised or surrend

332、ered during the period,and changes in the Companys share price.An expense of$77million related to PSUs granted to certain executive employees was included in the share-based compensation expense for 2024(2023$70million expense;2022$101million expense).29Canadian Natural 2024 Annual ReportINTEREST AN

333、D OTHER FINANCING EXPENSE($millions,except effective interest rate)202420232022Interest and other financing expense$592$636$549 Less:Interest(income)and other expense(1)(81)(55)(121)Interest expense on long-term debt and lease liabilities(1)$673$691$670 Average current and long-term debt(2)$11,895$12,749$13,986 Average lease liabilities(2)1,509 1,500 1,531 Average long-term debt and lease liabilit