Canadian Natural profit beats estimates on crude price rebound

Oil producer Canadian Natural Resources on Thursday posted a better-than-expected profit for the second quarter, buoyed by higher oil prices, which rebounded from pandemic-driven lows.

Oil and gas producers have bounced back this year as COVID-19 vaccinations allowed some countries to ease pandemic-related curbs, supporting higher crude prices.

Canadian Natural said if pipeline operator Inter Pipeline's (IPL.TO) takeover by Brookfield succeeds, it plans to increase its 2021 capital budget by $275 million to $3.48 billion. Canadian Natural owns about 6.4 million shares of Inter.

The company said average realized prices for crude rose 16.2% to C$61.2 per barrel in the second quarter, from the first.

The company, which operates in the Canadian provinces of Alberta, northeastern British Columbia and Saskatchewan, produced 1.14 million barrels of oil equivalent per day (boepd) in the reported quarter, compared to 1.25 million boepd in first quarter.

On an adjusted basis, the company posted a net income of C$1.24 per share in the quarter ended June 30, while analysts had expected 92 Canadian cents per share, according to Refinitiv IBES data.

($1 = 1.2520 Canadian dollars)

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