Canadian Natural Resources sees limited production during transport crunch

|About: Canadian Natural Resources,... (CNQ)|By:, SA News Editor

Canadian Natural Resources (CNQ -1.9%) says it will produce less than expected this spring, as transportation bottlenecks pressure prices of Canadian heavy crude.

CNQ forecasts current quarter production of 1.05M boe/day, missing analyst expectations of 1.13M boe/day, after Q1 output reached a record 1.12M boe/day, representing respective 10% and 28% increases from Q4 2017 and Q1 2017 levels.

“We are in a very strong, enviable position to be able to curtail natural gas and heavy oil volumes when pricing anomalies arise due to Western Canada’s pipeline constraints,” CNQ President Tim McKay said during today's earnings conference call.

Higher production helped CNQ beat Q1 earnings estimates and lift funds flow from operations to $2.32B vs. $2,31B in Q4 2017 and $1.64B in the year-ago quarter.

However, CNQ’s average realized price for crude oil and natural gas liquids fell 8.5% to C$43.06/bbl.

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