Canadian Natural Resources Limited (NYSE:CNQ) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 11:00 am ET


Canadian Natural Resources Limited (NYSE:CNQ) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the Canadian Natural Resources earnings results conference call webcast. After the presentation, we will conduct a question-and-answer session, instructions will be given at that time. Please note that this call is being recorded today, August 6, 2020, at 9:00 a.m. Mountain Time.

I would now like to turn the meeting over to your host for today's call, Corey Bieber, Executive Advisor. Please go ahead, Mr. Bieber.

Corey Bieber

Thank you operator. And good morning everyone, and thank you for joining our second quarter 2020 conference call. With me this morning are Tim McKay, our President; and Mark Stainthorpe, our Chief Financial Officer.

Before we begin, I would refer you to the special note regarding non-GAAP measures contained in our press release. These measures used to evaluate the company's performance should not be considered to be more meaningful than those determined in accordance with IFRS. I would also like to refer you to the comments regarding forward-looking statements contained in our press release and also note that all amounts are in Canadian dollars and production and reserves are expressed as before royalties, unless otherwise noted.

With that, I will now pass the call over to Tim McKay.

Tim S. McKay

Thank you, Corey. Good morning, everyone. Canadian Natural delivered top tier operational results in the second quarter, as we have robust, long life, low decline assets, operational excellence, capital discipline and the ability to enhance our margins, which delivers sustainable cash flow. The strengths of Canadian Natural's business model were also implied to environmental, social and governance, to deliver industry leading performance across the board, a significant factor in our long term sustainability. And when it comes to environmental performance, Canada leads the world.

Canadian Natural and indeed the Canadian oil and gas sector has delivered game changing environmental performance. For instance, Canadian Natural has already reduced our overall corporate commission intensity by 30% since 2012. And at Horizon, our intensity is down 38%. And with our leading -- we are a leading capture and sequester of CO2 in the oil and gas sector worldwide. In just these areas, Canadian Natural has taken the equivalent of over 2 million cars off the road, equivalent to 5% of the entire vehicles in Canada and that is just what Canadian Natural has done. The entire industry has achieved similar, equally impressive results.

In our oil sands operation, we can develop technologies and by using Canadian ingenuity, we can even do better, moving closer to Canadian Natural's aspirational goal of reaching net zero emissions. Canadian Natural has multiple pathways to achieve net zero. With the actions identified in the near, mid and long-term and the strength of the Canadian oil sands mining asset with its long life, low decline and its manufacturing like operations, it can have one of the clearest, if not the clearest route, to net zero of any global oil asset. Canadian Natural had a very strong operational results as we achieved quarterly production of 1.165 million BOEs per