Canadian Natural Resources Ltd. (CNRL) doesn’t make flashy headlines when it comes to Montney development — but that’s exactly why its strategy is powerful. The company is quietly building one of the most efficient, liquids-rich natural gas portfolios in Canada. With LNG export capacity increasing over the next decade, CNRL is positioning itself to win the long game.
This blog breaks down how Canada’s largest producer is transforming its Montney footprint into a growth engine for both natural gas and liquids production.
🌄 Why the Montney Matters to CNRL
Montney is not new to CNRL, but what’s new is its role in the company’s growth story.
In Q3 2025, CNRL reported record North American natural gas production — and the Montney was a central driver:
*Production growth was “primarily reflecting the Duvernay and *Montney acquisitions and strong drilling results in our liquids-rich natural gas assets.” Canadian Natural Resources Limi…
Montney is delivering:
- Liquids-rich gas → Higher margins than dry gas
- Large contiguous blocks → Efficiency from pad development
- Support for LNG era supply growth
- Low-cost operations → A competitive edge at weak gas prices
📈 Growth Fueled by Acquisition + Execution
Unlike producers relying solely on the drill bit, CNRL uses a hybrid model: acquire high-quality resource, then scale it at low cost.
The strategy doesn’t just add reserves — it improves economics across the portfolio. Montney’s liquids uplift reduces exposure to AECO volatility, helping stabilize cash flow.
CNRL emphasized the exact sequencing of acquisitions and organic growth:
*North American production growth “reflects… the acquisition of … liquid-rich Duvernay assets… as well as *liquid-rich Montney assets in the Grande Prairie area during the third quarter.” Canadian Natural Resources Limi…
💰 Cost Advantage: Montney Scale = Leaner Molecules
The Montney is helping drive CNRL’s industry-leading cost structure. In Q3, natural gas operating costs dropped further:
“Operating costs averaged $1.14 per Mcf… reflecting higher production volumes and cost efficiencies.” Canadian Natural Resources Limi…
Why it matters:
Cost Driver Montney Advantage Pad drilling Scales horizontally across thick pay zones Infrastructure Shared facilities and pipelines reduce unit cost Liquids uplift Higher-margin barrels inside a gas stream Acquisition of adjoining lands Reduces infrastructure duplication
This is not just cheap gas — it’s profitable gas, even in low-price markets.
🚢 Montney and the LNG Era
CNRL CEO Scott Stauth made it clear that Montney’s future isn’t just about drilling — it’s about market access:
“The most important thing is egress… the more gas we can move out of the basin, the better… LNG projects are very much needed.” Canadian Natural Resources Limi…
As LNG Canada Phase 1 ramps up and more West Coast projects move toward sanctioning, Montney producers with liquids-rich inventory and scale will have a structural advantage. CNRL is positioning itself as both a supplier and consolidator.
🔮 2026 Outlook: More Capital Ahead
Investors asked directly whether Montney drilling will continue in 2026.
The answer was simple and bullish:
“…we continue the capital allocation towards drilling… and it will be a part of our program for next year as well.” Canadian Natural Resources Limi…
📍 Grande Prairie Drilling Snapshot – CNRL (Dataset: 2025–2026)
CNRL’s Montney growth isn’t just visible in financial results — it’s on the ground. The dataset of wells drilled around Grande Prairie shows a strong liquids-rich development trend supported by multi-rig pad activity and consistent contractor utilization.
Key Highlights:
Metric Result Total Wells 56 wells Primary Substance Crude Oil (30 wells), Gas (26 wells) Top Fields Elmworth (14), Wembley (12), Karr (11), Wapiti (6) Most Active Contractors Ensign (38 wells), Savanna (21 wells) Top Rigs Deployed Rig 651 (20), Rig 44 (14), Rig 37 (13)
🛢️ Liquids-rich drilling dominates, backing CNRL’s emphasis on higher-margin gas streams tied to future LNG demand.
🔧 High concentration of rigs across a few pad-focused contractors reflects repeatability, pad offsets, and lower per-well costs — the same low-cost strategy emphasized in its Q3 call.
🏭 Facility Permits Confirm Continued Infill Development (Elmworth – 2025)
CNRL’s drilling activity in Grande Prairie is being matched by targeted facility upgrades. A separate dataset includes two 2025 facility permit amendments in the Elmworth field, directly supporting infill development drilling.
Rather than building new infrastructure, CNRL is debottlenecking and expanding existing facilities, a cost-efficient way to add capacity.
Permit Insights:
Attribute Details Approvals 2 Facility Amendments Field Elmworth, Grande Prairie Purpose Support infill drilling & production optimization Approach Expand existing facilities, not build new
🏗 Infrastructure tuned incrementally to handle more liquids-rich production from the same drilling pads.
🚨 Infill focus = cost discipline: expand only when production is proven, rather than build capacity ahead of volumes.
Drill → Tie-In → Optimize, not Build Big → Hope to Fill.
🛢️ CNRL’s Montney Positioning: A Strategic Summary
| Attribute | CNRL Montney Strategy |
|---|---|
| Priority | Liquids-rich windows tied into facility infrastructure |
| Growth Tool | Acquisitions adjacent to core blocks |
| Objective | Low-cost scalable gas to support LNG demand |
| Financial Advantage | High-margin NGLs + industry-leading opex |
| Market Trigger | LNG egress and Canadian export capacity |
🏁 Conclusion: Building the Future Without Noise
CNRL is not chasing headlines in the Montney — it’s building a lasting competitive edge. While others respond to gas prices quarter-to-quarter, CNRL is assembling a portfolio that wins regardless of price cycles.
The future of Canadian gas will be defined by liquids, efficiency, and LNG-scale infrastructure. CNRL is quietly checking all three boxes.
