CANADIAN NATURAL RESOURCES LIMITED ANNOUNCES Q3 2021 RESULTS

Commenting on the Company’s third quarter 2021 results, Tim McKay, President of Canadian Natural stated “Our
diverse product mix is a competitive advantage, as we can allocate capital to the highest return projects, without being
reliant on any one commodity. Our effective and efficient operations combined with disciplined capital allocation
generates significant free cash flow, which delivers substantial shareholder returns through our sustainable dividend and ongoing share repurchases. Our world class long life low decline assets, which have low maintenance capital
requirements relative to the size and quality of the assets, delivered top tier Q3/21 operational and financial results with
average production volumes of approximately 1,238 MBOE/d achieved in the quarter, representing increases of 11%
and 8% over Q3/20 and Q2/21 levels respectively. Our strong operational results during Q3/21 delivered robust
quarterly adjusted funds flow of approximately $3.6 billion. After our disciplined capital program and dividend, the
Company generated quarterly free cash flow of approximately $2.2 billion.

CNRL 2021 Permit Downloads

CNRL Wells Drilled 2021

CNRL Facility Permits 2021

CNRL Pipeline Permits 2021


Environmental, Social and Governance (“ESG”) performance remains a priority. We continue to invest in technologies
and innovations designed to improve our environmental performance and reduce our environmental footprint. As
previously announced, the Oil Sands Pathways initiative to achieve net zero greenhouse gas emissions by 2050 is an
unprecedented initiative by the Canadian energy industry. Canadian Natural and Pathways alliance members are
developing several technology pathways that when implemented will strengthen our leading ESG performance through
meaningful emissions reductions while maintaining jobs in the oil sands sector and creating thousands of new
construction and permanent jobs in the energy and cleantech industries. Collaboration with the federal and Alberta
governments on this initiative will be critical for Canada to achieve its climate goals.”


Canadian Natural’s Chief Financial Officer, Mark Stainthorpe, added “During the third quarter of 2021 our robust
business model delivered strong net earnings of over $2.2 billion and adjusted net earnings of approximately
$2.1 billion. Our diversified portfolio of world class assets combined with effective and efficient operations in a strong
commodity price environment, allowed us to continue to enhance returns to shareholders by repurchasing shares and
reducing debt at a faster rate than originally targeted. The Company’s balance sheet continues to be a priority and was
further strengthened during the quarter with ending net debt at approximately $15.9 billion, a reduction of approximately $2.3 billion compared to Q2/21. We remain on track to meet our full year 2021 capital investment target of approximately $3.48 billion.


Our commitment to returns to shareholders has been significant totaling $3.1 billion year to date through dividends and
share repurchases. Subsequent to quarter end the Board of Directors has approved a 25% increase to our quarterly
dividend to $0.5875 per share, payable on January 5, 2022. The increased dividend clearly demonstrates the
confidence that the Board of Directors have in the sustainability of our business model, the strength of our balance sheet and the Company’s effective and efficient operations supported by our robust, long life low decline asset base and
associated low maintenance capital requirements. With this increase, 2022 will mark the 22nd consecutive year of
dividend increases for the Company, and this 25% increase from our previous quarterly dividend is in excess of our
historical dividend compound annual growth rate of 20% over the last 22 years.


Effective July 1, 2021 our free cash flow allocation policy authorized management to increase returns to shareholders
through accelerated share repurchases under the Company’s Normal Course Issuer Bid (“NCIB”) by targeting the
repurchase of approximately 1% of shares outstanding per quarter. This policy further states that once the Company
reaches an absolute debt level of $15 billion, currently targeted to occur in Q4/21, 50% of free cash flow will be targeted
to share repurchases, with the remaining 50% of free cash flow allocated to further strengthen our balance sheet. Per
this policy, the Company repurchased approximately 12 million shares in the quarter and year-to-date as of
November 3, 2021 we have repurchased a total of approximately 21.5 million shares for approximately $940 million.
Subsequent to quarter end, and as an enhancement to the free cash flow allocation policy, the Board of Directors has
authorized management to target absolute debt at levels below $15 billion (approximately 1.0 times debt to EBITDA in
the current price environment). To the extent debt is below $15 billion, such amount will be available for strategic growth/acquisition opportunities.”

QUARTERLY HIGHLIGHTS

Net earnings of $2,202 million and adjusted net earnings from operations of $2,095 million were realized in Q3/21,
significant increases from Q2/21 net earnings of $1,551 million and adjusted net earnings from operations of
$1,480 million, primarily as a result of higher realized pricing and effective and efficient operations.
▪ Cash flows from operating activities were $4,290 million in Q3/21, increases from $2,070 million in Q3/20 and
$2,940 million in Q2/21.
▪ The strength of our balanced asset base, supported by safe, effective and efficient operations generates
significant free cash flow over the long-term, making Canadian Natural’s business unique, robust and sustainable.
• Canadian Natural has a diverse asset base underpinned by low maintenance capital requirements and
effective and efficient operations that delivers significant free cash flow.
• Canadian Natural generated strong quarterly adjusted funds flow of $3,634 million in Q3/21, a significant
increase from Q2/21 levels of $3,049 million, primarily the result of higher realized pricing and effective and
efficient operations.
• Reflecting the strength of our effective and efficient operations and our high quality, long life low decline asset
base, Canadian Natural generated strong quarterly free cash flow of $2,195 million in Q3/21, after dividend
payments of $558 million and net capital expenditures of $881 million, excluding acquisitions.
▪ Returns to shareholders year to date in 2021 have been significant, as Canadian Natural has returned
approximately $3.1 billion by way of dividends and share repurchases up to and including November 3, 2021.
Canadian Natural Resources Limited 3 Nine months ended September 30, 2021
• Share repurchases for cancellation during Q3/21 per the free cash flow allocation policy, totaled 11,984,400
shares or 1% of common shares outstanding at a weighted average price of $42.26 per share. Share
repurchases for cancellation in 2021 up to and including November 3, 2021 total 21,464,400 common shares
at a weighted average price of $43.77 per share.
• Subsequent to quarter end the Board of Directors has approved a 25% increase to our quarterly dividend to
$0.5875 per share, payable on January 5, 2022. The increased dividend clearly demonstrates the confidence
that the Board of Directors have in the sustainability of our business model, the strength of our balance sheet
and the Company’s effective and efficient operations supported by our robust, long life low decline asset base
and associated low maintenance capital requirements.
◦ With this increase, 2022 will mark the 22nd consecutive year of dividend increases for the Company, and
this 25% increase from our previous quarterly dividend is in excess of our historical dividend compound
annual growth rate of 20% over the last 22 years.
▪ Canadian Natural executed on our commitment to further strengthen our balance sheet with strong financial
results in Q3/21, reducing net debt by approximately $2.3 billion from Q2/21 levels, while net debt has decreased
by approximately $5.8 billion over the last 12 months ended September 30, 2021. In Q3/21 the Company executed
on the following:
• On August 16, 2021 the Company repaid the US$500 million 3.45% notes originally due November 15, 2021.
• The Company repaid $500 million on its $2,650 million term credit facility due February 2023.
◦ Subsequent to quarter end the Company repaid an additional $1,000 million, which reduced the facility
balance to $1,150 million as at November 3, 2021.
▪ Effective July 1, 2021 our free cash flow allocation policy authorized management to increase returns to
shareholders through accelerated share repurchases under the Company’s NCIB by targeting the repurchase of
approximately 1% of shares outstanding per quarter. This policy further states that once the Company reaches an
absolute debt level of $15 billion, currently targeted to occur in Q4/21, 50% of free cash flow will be targeted to
share repurchases, with the remaining 50% of free cash flow allocated to further strengthen our balance sheet.
Per this policy, the Company repurchased approximately 12 million shares in the quarter and year to date as of
November 3, 2021 we have repurchased a total of approximately 21.5 million shares for approximately
$940 million. Subsequent to quarter end, and as an enhancement to the free cash flow allocation policy, the Board
of Directors has authorized management to target absolute debt at levels below $15 billion (approximately 1.0
times debt to EBITDA in the current price environment). To the extent debt is below $15 billion, such amount will
be available for strategic growth/acquisition opportunities.
▪ In Q3/21 the Company continued its focus on safe, effective and efficient operations averaging quarterly
production volumes of 1,237,503 BOE/d, increases of 11% and 8% from Q3/20 and Q2/21 levels respectively. The
increases from prior periods are primarily as a result of robust natural gas production and strong Oil Sands Mining
and Upgrading performance after completion of planned turnaround activities.
• The Company delivered strong natural gas performance in Q3/21 with corporate natural gas production of
1,708 MMcf/d, an increase of 6% from Q2/21 levels. The increase from Q2/21 levels primarily reflects
reinstated production volumes from the Pine River Gas Plant, acquisitions, and strong drilling results, partially
offset by natural field declines.
◦ Corporate natural gas operating costs in Q3/21 averaged $1.17/Mcf, a decrease of 2% from Q2/21 levels.
• Strong quarterly liquids production volumes averaged 952,839 bbl/d in Q3/21, increases of 8% and 9% from
Q3/20 and Q2/21 levels respectively, primarily due to Canadian Natural’s effective and efficient operations and
planned turnaround activities completed in prior periods.

Canadian Natural’s North America E&P liquids production, including thermal in situ, averaged 454,888 bbl/d during
Q3/21, decreases of 8% and 5% from Q3/20 and Q2/21 levels respectively. The decreases from Q3/20 and Q2/21
levels were primarily due to natural field declines, planned turnaround activities at Jackfish and lower NGL
production volumes largely due to third-party outages in the quarter.
• North American E&P liquids, including thermal in situ, operating costs averaged $13.33/bbl (US$10.58/bbl) in
Q3/21, an increase of 4% from Q2/21 levels. The increase in operating costs from Q2/21 was primarily due to
increased energy costs and lower production volumes.

Canadian Natural Resources Limited 4 Nine months ended September 30, 2021
▪ Canadian Natural’s thermal in situ production averaged 248,113 bbl/d in Q3/21, decreases of 14% and 4% from
Q3/20 and Q2/21 levels respectively. The decrease in thermal in situ production during Q3/21 compared to Q3/20
and Q2/21 was primarily due to planned turnaround activities at Jackfish and natural field declines.
• Thermal in situ assets operating costs averaged $12.24/bbl (US$9.71/bbl) in Q3/21, an increase of 4% from
Q2/21 levels. The increase in operating costs from Q2/21 was primarily due to increased energy costs and
lower production volumes due to planned turnaround activities.
▪ The Company’s world class Oil Sands Mining and Upgrading assets averaged quarterly production of
468,126 bbl/d of Synthetic Crude Oil (“SCO”) in Q3/21, increases of 34% and 29% from Q3/20 and Q2/21 levels
respectively and comparable to the record average quarterly production volumes achieved in Q1/21. Strong Q3/21
production performance was due to the Company’s focus on continuous improvement, effective and efficient
operations as well as planned turnaround activities completed during prior periods.
• Following recently completed maintenance and turnaround activities across the Oil Sands Mining and
Upgrading assets, top tier performance and utilization resulted in industry leading operating costs. During the
first nine months of 2021, as a result of the successful completion of the Scotford turnaround and expansion in
2020, the Company increased sales volumes by over 20,000 bbl/d of SCO.
• Operating costs from the Company’s Oil Sands Mining and Upgrading assets were strong and remain top tier
averaging $19.86/bbl (US$15.76/bbl) of SCO during Q3/21, a decrease of 22% from Q2/21 levels. The
decrease from Q2/21 was primarily due to strong production volumes, the Company’s culture of continuous
improvement and planned turnaround activities completed during the prior period.
• Oil Sands Mining and Upgrading continue to be top tier with production volumes for October 2021 of
approximately 477,000 bbl/d of SCO.

OPERATIONS REVIEW AND CAPITAL ALLOCATION

Canadian Natural has a balanced and diverse portfolio of assets, primarily Canadian-based, with international
exposure in the UK section of the North Sea and Offshore Africa. Canadian Natural’s production is well balanced
between light crude oil, medium crude oil, primary heavy crude oil, Pelican Lake heavy crude oil, bitumen (thermal oil)
and SCO (herein collectively referred to as “crude oil”) and natural gas and NGLs. This balance provides optionality for
capital investments, maximizing value for the Company’s shareholders.


Underpinning this asset base is the Company’s long life low decline production, representing approximately 81% of
our total liquids production in Q3/21, the majority of which is zero decline high value SCO production from the
Company’s world class Oil Sands Mining and Upgrading assets. The remaining balance of long life low decline
production comes from Canadian Natural’s top tier thermal in situ oil sands operations and the Company’s Pelican
Lake heavy crude oil assets. The combination of these long life low decline assets, low reserves replacement costs,
and effective and efficient operations, results in substantial and sustainable adjusted funds flow throughout the
commodity price cycle.

In addition, Canadian Natural maintains a substantial inventory of low capital exposure projects within the Company’s
conventional asset base. These projects can be executed quickly and, in the right economic conditions, provide
excellent returns and maximize value for our shareholders. Supporting these projects is the Company’s undeveloped
land base which enables large, repeatable drilling programs that can be optimized over time. Additionally, by owning
and operating most of the related infrastructure, Canadian Natural is able to control major components of the
Company’s operating costs and minimize production commitments. Low capital exposure projects can be quickly
stopped or started depending upon success, market conditions or corporate needs.
Canadian Natural’s balanced portfolio, built with both long life low decline assets and low capital exposure assets,
enables effective capital allocation, production growth and value creation.

The Company’s total crude oil and natural gas drilling program of 168 net wells for the nine months
ended September 30, 2021, excluding stratigraphic/service wells, represents an increase of 110 net wells from the
same period in 2020, consistent with the 2021 capital budget.

North America Exploration and Production

Crude oil and NGLs – excluding Thermal In Situ Oil Sands

Canadian Natural’s North America E&P crude oil and NGL production volumes, excluding thermal in situ averaged
206,775 bbl/d in Q3/21, comparable with Q3/20 levels. Production volumes decreased by 6% from Q2/21 levels
primarily due to lower NGL production volumes largely as a result of third-party outages and natural field declines.
• Primary heavy crude oil production averaged 63,891 bbl/d in Q3/21, decreases of 10% and 3% from Q3/20
and Q2/21 levels respectively, primarily due to natural field declines, partially offset by strong drilling results
and increased development activity in 2021.
◦ Operating costs in the Company’s primary heavy crude oil operations averaged $19.51/bbl (US$15.48/bbl)
in Q3/21, comparable to Q2/21 levels.
◦ At the Company’s Clearwater play at Smith, the 6 net horizontal multilateral wells brought onstream in the
first half of 2021 continue to perform well, with current production rates totaling over 1,800 bbl/d.
– The additional 6 net horizontal multilateral wells that were targeted to be onstream in Q4/21 are now
on production with current volumes totaling approximately 2,100 bbl/d, exceeding the targeted rate of
2,000 bbl/d.
• Pelican Lake production in Q3/21 averaged 53,923 bbl/d, decreases of 4% and 2% from Q3/20 and Q2/21
levels respectively. The production decreases reflect the low decline nature of this long life low decline asset
and the continued success of the Company’s world class polymer flood.
◦ The Company continues to focus on safe, effective and efficient operations, realizing low operating costs
in Q3/21 at Pelican Lake, averaging $5.90/bbl (US$4.68/bbl), a decrease of 14% from Q2/21 levels. The
operating cost decrease from Q2/21 levels was primarily due to Canadian Natural’s culture of continuous
improvement.
• North America light crude oil and NGL production averaged 88,961 bbl/d in Q3/21, an increase of 12% from
Q3/20 levels and a decrease of 10% from Q2/21 levels. The increase from Q3/20 was primarily due to strong
drilling results, acquired production over the past 12 months and development activities. The decrease from
Q2/21 was primarily due to lower NGL production volumes, which impacted the quarter by approximately
8,400 bbl/d and natural field declines, offset by strong light crude oil drilling results.
◦ Operating costs in the Company’s North America light crude oil and NGL areas averaged $16.19/bbl
(US$12.85/bbl) in Q3/21, an increase of 13% from Q2/21 levels. The increase in Q3/21 was primarily the
result of increased energy costs and decreased NGL production volumes.
◦ The Company continues to advance its high-value Montney light crude oil development plan at Wembley.
– 13 net wells were onstream in Q3/21 with 5 additional net wells targeted to be onstream in Q4/21.
– Construction of a new crude oil battery was completed ahead of schedule and below budgeted costs.
– The project now targets to exit 2021 with total production rates of more than 10,000 bbl/d of liquids and
30 MMcf/d of natural gas, representing an increase of over 1,500 bbl/d of liquids and approximately
2 MMcf/d of natural gas.
– The Company is targeting strong well capital efficiencies of approximately $6,800/BOE/d.

Thermal In Situ Oil Sands

Thermal in situ assets operating costs averaged $12.24/bbl (US$9.71/bbl) in Q3/21, an increase of 4% from
Q2/21 levels. The increase in operating costs from Q2/21 was primarily due to increased energy costs and
lower production volumes due to planned turnaround activities.
▪ Solvent enhanced oil recovery technology is being piloted by the Company with an objective to increase bitumen
production, reduce the Steam to Oil Ratio (“SOR”), reduce greenhouse gas (“GHG”) intensity and have high
solvent recovery. This technology has the potential for application throughout the Company’s extensive thermal in
situ asset base.
• Results at Kirby South from our on-going two year pilot of this technology were positive, showing SOR and
GHG intensity reductions of 45% through the piloted process, consistent with the targeted range, as well as
solvent recoveries of approximately 85%, confirming the viability of this technology. As a result, the Company
is progressing with engineering and design of a commercial scale SAGD pad development at Kirby North.
• As previously announced, a second solvent injection pilot intended to further validate this technology
commenced in October 2021, in the steam flood area of Primrose. The Company’s second pilot consists of
9 net wells, 5 producers and 4 injectors. The second pilot targets to operate for a two year period with targeted
SOR and GHG intensity reductions of 40 to 45% and solvent recoveries of greater than 70%.

North America natural gas production was strong in Q3/21 averaging 1,698 MMcf/d, increases of 27% and 7%
from Q3/20 and Q2/21 levels respectively. The increase from Q3/20 was primarily the result of acquired production
in Q4/20 and strong drilling results, partially offset by natural field declines. The increase from Q2/21 levels
primarily reflects reinstated production volumes from the Pine River Gas Plant, acquisitions, and strong drilling
results, partially offset by natural field declines.
• North America natural gas operating costs in Q3/21 averaged $1.14/Mcf, comparable with Q2/21 levels.
▪ As part of the 2021 budget, in the liquids-rich Montney area, the Company targets to utilize facility capacity
through its drill-to-fill strategy adding low cost, high value liquids rich natural gas production volumes.
• At Septimus, production additions from the 5 net well pad completed in June 2021, brought the facility to full
capacity of 150 MMcf/d of natural gas and 9,000 bbl/d of liquids. As a result of the strong performance of this
pad, the facility is targeted to remain at full capacity into early 2022.
◦ Operating costs at Septimus remained strong in Q3/21, averaging $0.25/Mcfe, a decrease of 22% from
Q2/21 levels. The decrease in operating costs was primarily the result of the Company’s drill to fill strategy
and maximizing operational and cost efficiencies in the quarter.
▪ Production at Townsend of 284 MMcf/d of natural gas was achieved in Q3/21, an increase of 7% over
Q2/21 levels.
• Due to a recent BC court decision, all development activities at Townsend have been temporarily suspended
with 9 wells that are awaiting facilities and pipeline permit approvals. Capital has been redeployed into our
deep inventory of natural gas opportunities in northwest Alberta with similar strong drill-to-fill capital efficiencies
and production volume profiles.

International E&P crude oil production volumes averaged 29,825 bbl/d in Q3/21, decreases of 23% and 9% from
Q3/20 and Q2/21 levels respectively. The fluctuations in production from prior periods primarily reflects planned
maintenance activities and natural field declines.
• Crude oil operating costs increased from prior periods primarily due to lower production volumes as a result of
planned maintenance activities in the North Sea and Offshore Africa. Increased costs from prior periods also
reflects the timing of liftings from various fields that have different cost structures in addition to fluctuations in
the Canadian dollar.
• During Q3/21 the Company completed the planned turnaround at the Ninian Central platform in the North Sea.
The planned maintenance activities at Espoir in Offshore Africa were completed subsequent to quarter end.
Targeted production impacts are included in the Company’s annual 2021 budgeted production volume range.

The Company’s world class Oil Sands Mining and Upgrading assets averaged strong quarterly production of
468,126 bbl/d of SCO in Q3/21, increases of 34% and 29% from Q3/20 and Q2/21 levels respectively and
comparable to the record average quarterly production volumes achieved in Q1/21. Strong Q3/21 production
performance was due to the Company’s focus on continuous improvement, effective and efficient operations as
well as planned turnaround activities completed during prior periods.
• Following recently completed maintenance and turnaround activities across the Oil Sands Mining and
Upgrading assets, top tier performance and utilization resulted in industry leading operating costs. During the
first nine months of 2021, as a result of the successful completion of the Scotford turnaround and expansion in
2020, the Company has increased sales volumes by over 20,000 bbl/d of SCO.
• Operating costs from the Company’s Oil Sands Mining and Upgrading assets were strong and remain top tier
averaging $19.86/bbl (US$15.76/bbl) of SCO during Q3/21, a decrease of 22% from Q2/21 levels. The
decrease from Q2/21 was primarily due to strong production volumes, the Company’s culture of continuous
improvement and planned turnaround activities completed during the prior period.
• Oil Sands Mining and Upgrading continue to be top tier with production volumes for October 2021 of
approximately 477,000 bbl/d of SCO.

Crude oil prices continue to improve with WTI averaging US$70.55/bbl in Q3/21, increases of 72% and 7% from
Q3/20 and Q2/21 levels respectively. The increase in WTI from comparable periods primarily reflects increased
demand, the continuation of agreements by OPEC+ to maintain the majority of production cuts implemented in
2020 and the strengthening of the global economy.
• As at November 2, 2021 for crude oil, annual WTI pricing of US$69.22/bbl is currently 76% higher than 2020
levels and the annual WCS heavy oil differential, currently at approximately a 19% discount to WTI, is in line
with average historical levels.
▪ Natural gas prices continue to improve with AECO averaging $3.36/GJ in Q3/21, increases of 66% and 24% from
Q3/20 and Q2/21 levels respectively. The increase in natural gas prices from the comparable periods primarily
reflects lower storage levels and increased NYMEX benchmark pricing.
▪ Market egress has improved as Enbridge’s Line 3 pipeline replacement began operations on October 1, 2021,
increasing incremental transportation throughout the month of October.
• November 2021 is expected to be the first full month of incremental crude oil transportation of approximately
370,000 bbl/d on Enbridge’s Line 3 pipeline, increasing crude oil egress from western Canada.
▪ Improved performance at the North West Redwater (“NWR”) Refinery continues to increase local demand for
heavy crude oil.
▪ Construction on the 590,000 bbl/d Trans Mountain Expansion targets an on stream date in early 2023, on which
Canadian Natural has committed 94,000 bbl/d.

FINANCIAL REVIEW


The Company continues to implement proven strategies including its disciplined approach to capital allocation. As a
result, the financial position of Canadian Natural remains strong. Canadian Natural’s adjusted funds flow generation,
credit facilities, US commercial paper program, access to capital markets, diverse asset base and related flexible
capital expenditure program, all support a flexible financial position and provide the appropriate financial resources for
the near-, mid- and long-term.
▪ The Company’s strategy to maintain a diverse portfolio, balanced across various commodity types, averaged
quarterly production of 1,237,503 BOE/d in Q3/21, with approximately 99% of total production located in
G7 countries.

In Q3/21, reflecting the strength of our effective and efficient operations and our high quality, long life low decline
asset base, Canadian Natural generated robust quarterly free cash flow of $2,195 million, after dividend payments
of $558 million and net capital expenditures of $881 million, excluding acquisitions.
▪ Returns to shareholders year to date in 2021 have been significant, as Canadian Natural has returned
approximately $3.1 billion by way of dividends and share repurchases up to and including November 3, 2021.
• Share repurchases for cancellation during Q3/21 per the free cash flow allocation policy, totaled 11,984,400
shares or 1% of common shares outstanding at a weighted average price of $42.26 per share. Share
repurchases for cancellation in 2021 up to and including November 3, 2021 total 21,464,400 common shares
at a weighted average price of $43.77 per share.
• Subsequent to quarter end the Board of Directors has approved a 25% increase to our quarterly dividend to
$0.5875 per share, payable on January 5, 2022. The increased dividend clearly demonstrates the confidence
that the Board of Directors have in the sustainability of our business model, the strength of our balance sheet
and the Company’s effective and efficient operations supported by our robust, long life low decline asset base
and associated low maintenance capital requirements.
◦ With this increase, 2022 will mark the 22nd consecutive year of dividend increases for the Company, and
this 25% increase from our previous quarterly dividend is in excess of our historical dividend compound
annual growth rate of 20% over the last 22 years.
▪ Canadian Natural executed on our commitment to further strengthen our balance sheet with strong financial
results in Q3/21, reducing net debt by approximately $2.3 billion from Q2/21 levels, while net debt has decreased
by approximately $5.8 billion over the last 12 months ended September 30, 2021.
• On August 16, 2021 the Company repaid the US$500 million 3.45% notes originally due November 15, 2021.
• During Q3/21 the Company repaid $500 million on its’ $2,650 million term credit facility due February 2023.
◦ Subsequent to quarter end the Company repaid an additional $1,000 million, which reduced the facility
balance to $1,150 million as at November 3, 2021.
▪ As at September 30, 2021, the Company had undrawn revolving bank credit facilities of approximately $5.0 billion.
Including cash and cash equivalents and short-term investments, the Company had significant liquidity of
approximately $6.2 billion. At September 30, 2021, the Company did not have any funds drawn under its
commercial paper program, and reserves capacity under its revolving bank credit facilities for amounts outstanding
under this program.
▪ Effective July 1, 2021 our free cash flow allocation policy authorized management to increase returns to
shareholders through accelerated share repurchases under the Company’s NCIB by targeting the repurchase of
approximately 1% of shares outstanding per quarter. This policy further states that once the Company reaches an
absolute debt level of $15 billion, currently targeted to occur in Q4/21, 50% of free cash flow will be targeted to
share repurchases, with the remaining 50% of free cash flow allocated to further strengthen our balance sheet.
Per this policy, the Company repurchased approximately 12 million shares in the quarter and year-to-date as of
November 3, 2021 we have repurchased a total of approximately 21.5 million shares for approximately
$940 million. Subsequent to quarter end, and as an enhancement to the free cash flow allocation policy, the Board
of Directors has authorized management to target absolute debt at levels below $15 billion (approximately 1.0
times debt to EBITDA in the current price environment). To the extent debt is below $15 billion, such amount will
be available for strategic growth/acquisition opportunities.
▪ During Q3/21, the Company filed base shelf prospectuses that allow for the offer for sale from time to time of up to
$3,000 million of medium-term notes in Canada and US$3,000 million of debt securities in the United States,
which expire August 2023, replacing the Company’s previous base shelf prospectuses which would have expired
in August 2021. If issued, these securities may be offered in amounts and at prices, including interest rates, to be
determined based on market conditions at the time of issuance.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE HIGHLIGHTS


Canada and Canadian Natural are well positioned to deliver responsibly produced energy that the world needs
through leading ESG performance. Canadian Natural’s culture of continuous improvement provides a significant
advantage and results in continued improvement in the Company’s environmental performance.

2020 Stewardship Report
Canadian Natural published its 2020 Stewardship Report to Stakeholders in August 2021, which is available on the
Company’s website at https://www.cnrl.com/report-to-stakeholders. The report displays how Canadian Natural
continues to focus on safe, reliable, effective and efficient operations while minimizing its environmental footprint.
Canadian Natural outlined its pathway to lower carbon emissions and its journey to achieve its goal of net zero GHG
emissions in the oil sands. Highlights from the Company’s 2020 report are as follows:
▪ Canadian Natural’s corporate GHG emissions intensity continues to improve, decreasing by 18% from 2016 to
2020, a material reduction in emissions intensity.
▪ The Company reduced methane emissions in its North American E&P segment by 28% from 2016 to 2020.
▪ The Company continues to improve corporate total recordable injury frequency (“TRIF”) in 2020, with a TRIF of
0.21 in 2020 compared to 0.50 in 2016. The Company’s TRIF is down 58% since 2016, while man-hours have
increased over this time period.
▪ Canadian Natural is one of the largest owners of Carbon Capture and Storage (“CCS”) and sequestration capacity
in the oil and natural gas sector globally through projects at Horizon, the Company’s 70% owned Quest CCS
facility located at Scotford, and its 50% working interest in the NWR Refinery. As part of our comprehensive GHG
emissions reduction strategy, our CCS projects include carbon dioxide (“CO2”) storage in geological formations,
the use of CO2 in enhanced oil recovery techniques and injection of CO2 into tailings. Gross carbon capture
capacity through these projects combined is approximately 2.7 million tonnes of CO2 annually, equivalent to taking
approximately 576,000 cars off the road per year.
▪ The Quest Carbon Capture, Utilization and Storage (“CCUS”) (70% Company ownership) facility captures and
stores approximately 1.1 million tonnes of CO2 per year, the equivalent of removing approximately 235,000 cars
off the road annually. In May 2020 Quest reached the milestone of 5 million tonnes of stored carbon dioxide, equal
to the emissions from approximately 1.25 million cars.
• At Horizon, annual capture capacity is approximately 0.4 million tonnes of CO2 from the hydrogen plant, the
equivalent of removing approximately 85,000 cars off the road annually.
• At the NWR Refinery, captured CO2 is delivered to the Alberta Carbon Truck Line for enhanced oil recovery
and permanent storage in central Alberta. At full capacity, approximately 1.2 million tonnes of CO2 per year is
targeted to be captured, the equivalent of removing approximately 256,000 cars off the road annually.
▪ The Company continues to increase the level of third party verified direct GHG emissions and indirect energy use.
• The Company targets to increase the total corporate level of third party verification of GHG emissions to 95%
in 2021, an increase of 9% from 2020 levels of 87%.
▪ In 2020 the Company planted its one millionth tree at AOSP and its one and a half millionth tree at Horizon,
reclaiming land and contributing to increased carbon capture.

Oil Sands Pathway to Net Zero Initiative
On June 9, 2021 Canadian Natural together with oil sands industry participants formally announced the Oil Sands
Pathways to Net Zero initiative. Canadian Natural and these companies operate approximately 90% of Canada’s oil
sands production. The goal of this unique alliance, working collectively with the federal and Alberta governments, is to
achieve net zero GHG emissions from oil sands operations by 2050 to help Canada meet its climate goals, including
its Paris Agreement commitments and 2050 net zero aspirations.
▪ This collaborative effort follows welcome announcements from the Government of Canada and the Government of
Alberta of important support programs for emissions-reduction projects and infrastructure. Collaboration between
industry and government will be critical to progressing the Oil Sands Pathways to Net Zero vision and achieving
Canada’s climate goals.
▪ The Pathways vision is anchored by a major CCUS trunkline connected to a carbon sequestration hub to enable
multi-sector ‘tie-in’ projects for expanded emissions reductions. The proposed CCUS system will involve significant

collaboration between industry and government, which is similar to the Longship/Northern Lights project in Norway
as well as other CCUS projects in the Netherlands, UK and USA.
▪ The Pathways initiative is ambitious and will require significant investment on the part of both industry and
government to advance the research and development of new and emerging technologies.
▪ The companies involved look forward to continuing to work with governments and to engage with Indigenous and
local communities in northern Alberta, to make this ambitious, major emissions-reduction vision a reality so those
communities can continue to benefit from Canadian resource development.
Government Support for Carbon Capture, Utilization and Storage
The Government of Canada has recognized the important role of carbon capture, utilization and storage projects for
the oil sands sector to continue contributing to Canada’s economic growth while working towards climate objectives.
Canadian Natural is a leader in CCUS and GHG reduction projects and sees many opportunities for industry to
advance investments in CCUS projects. Details of the proposed government programs to support CCUS are important
and the Company looks forward to continuing to provide input as government finalizes its plans.

ENVIRONMENTAL TARGETS


▪ As previously announced in August 2021, Canadian Natural has committed to new environmental targets as
follows:
• 50% reduction in North America E&P, including thermal in situ, methane emissions by 2030, from a 2016
baseline.
• 40% reduction in thermal in situ fresh water usage intensity by 2026, from a 2017 baseline.
• 40% reduction in mining fresh river water usage intensity by 2026, from a 2017 baseline.
▪ In 2018, Canadian Natural was one of the first oil companies to announce an aspirational goal of achieving net
zero emissions in its oil sands operations.
▪ Through the Company’s participation in the Oil Sands Pathways to Net Zero Initiative with our industry partners
and collaboration with the federal and Alberta governments, the Company is further refining its goal by targeting to
achieve net zero emissions in its oil sands operations by 2050.
▪ The Company is currently working through the details with members of the net zero initiative alliance to advance
key milestones to be achieved over the next decade as we accelerate related projects through the Pathways
initiative.

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