Canadian Natural Resources Limited Announces Quarterly Dividend

Rhea-AI Summary

Canadian Natural Resources Limited (CNQ) announces a 5% increase in quarterly cash dividend, showcasing confidence in the company's business model and strong balance sheet. The dividend will be C$1.05 per common share, payable on April 5, 2024, to shareholders of record on March 15, 2024. This marks the 24th consecutive year of dividend increases with a CAGR of 21% over time.

Positive

• Approval of a 5% increase in quarterly cash dividend to C$1.05 per common share.
• Demonstration of confidence in the sustainability of the business model and strong balance sheet.
• 24th consecutive year of dividend increases with a compound annual growth rate of 21%.
• Leading track record of dividend increases by Canadian Natural Resources Limited.
• Continuing operations in core areas in Western Canada, the U.K. portion of the North Sea, and Offshore Africa.

Negative

• None.

Insights

Financial Analyst

The announcement of Canadian Natural Resources Limited increasing its quarterly dividend by 5% is a positive signal to investors, indicating the company's financial health and confidence in its sustained earnings and cash flow. This decision likely reflects a robust balance sheet and a strategic assessment of the company's long-term reserve assets and production capabilities. The increase in dividend is not only a direct benefit to shareholders but also serves as a barometer of the company's operational stability and profitability.

Furthermore, the company's consistent history of dividend increases, now entering its 24th year with a CAGR of 21%, positions it as a potentially attractive investment for income-focused portfolios. This pattern of dividend growth can be appealing to investors seeking steady income streams, especially in an industry that can be volatile due to fluctuating commodity prices. The cumulative 24% increase over the past year underscores a strategic approach to capital allocation that balances reinvestment in operations with shareholder returns.

Market Research Analyst

The oil and gas sector is subject to cyclical trends and is currently benefiting from a favorable market environment, allowing companies like Canadian Natural Resources to generate excess cash flows. The company's decision to increase dividends may also reflect a competitive stance in the market, aiming to attract and retain investors by demonstrating financial resilience and a shareholder-friendly policy amidst industry peers.

Given the company's presence in strategic locations like Western Canada, the North Sea and Offshore Africa, its diversified portfolio mitigates geographical risks and allows for a more stable performance. This diversification is critical in the energy sector, where geopolitical risks can significantly impact operations. Investors often look for such stability when assessing the long-term viability of energy companies.

Energy Sector Analyst

The emphasis on Canadian Natural Resources' 'long life low decline reserves' is of particular interest. These reserves are indicative of oil and gas assets that have a slower production decline rate compared to industry averages, which can lead to lower maintenance capital requirements and a more predictable cash flow stream. This characteristic is especially valuable in the energy sector where companies are often challenged by the high costs of developing new reserves.

The company's focus on core operational areas with proven reserves and production capabilities suggests a strategic prioritization of stable and efficient assets. This approach can lead to more sustainable operations and potentially shield the company from the volatility often associated with exploration and development of new fields.

Calgary, Alberta--(Newsfile Corp. - February 29, 2024) - Canadian Natural Resources Limited (TSX: CNQ) (NYSE: CNQ) announces that its Board of Directors approved a 5% increase to its quarterly cash dividend on its common shares to C$1.05 (One dollar and five cents) per common share. The dividend will be payable on April 5, 2024 to shareholders of record at the close of business on March 15, 2024.

Since March 2, 2023, the Company has increased its quarterly dividend 24% through three separate increases for a combined increase of $0.20 per common share. This demonstrates 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 reserves and asset base. The Company's leading track record of dividend increases continues, with 2024 marking the 24^th consecutive year of dividend increases with a compound annual growth rate ("CAGR") of 21% over that time.

Canadian Natural is a senior crude oil and natural gas production company, with continuing operations in its core areas located in Western Canada, the U.K. portion of the North Sea and Offshore Africa.

CANADIAN NATURAL RESOURCES LIMITED
2100, 855 - 2^nd Street S.W. Calgary, Alberta, T2P4J8
Phone: 403-514-7777 Email: ir@cnrl.com
www.cnrl.com
 

TIM S. MCKAY
Vice-Chairman

SCOTT G. STAUTH
President

MARK A. STAINTHORPE
Chief Financial Officer

LANCE J. CASSON
Manager, Investor Relations

Trading Symbol - CNQ
Toronto Stock Exchange
New York Stock Exchange

Certain information regarding the Company contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Refer to our website for complete forward-looking statements www.cnrl.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/199816

FAQ

What is the new quarterly cash dividend approved by Canadian Natural Resources Limited (CNQ)?

The new quarterly cash dividend approved by Canadian Natural Resources Limited (CNQ) is C$1.05 per common share.

When will the dividend be payable to shareholders of Canadian Natural Resources Limited (CNQ)?

The dividend will be payable on April 5, 2024, to shareholders of record at the close of business on March 15, 2024.

How many consecutive years has Canadian Natural Resources Limited (CNQ) increased its dividend?

Canadian Natural Resources Limited (CNQ) has increased its dividend for 24 consecutive years.

In which core areas does Canadian Natural Resources Limited (CNQ) have continuing operations?

Canadian Natural Resources Limited (CNQ) has continuing operations in Western Canada, the U.K. portion of the North Sea, and Offshore Africa.

What is the compound annual growth rate (CAGR) of dividend increases for Canadian Natural Resources Limited (CNQ)?

The compound annual growth rate (CAGR) of dividend increases for Canadian Natural Resources Limited (CNQ) is 21% over time.