Marketing & Midstream

Canadian Natural’s long-term marketing objective is to maximize the realized price for our overall portfolio in all market conditions.

For crude oil in particular, our strategy consists of a three-pronged approach: the blending of various crude oil streams and diluents to better serve the needs of our refining customers, the supportive participation in the expansion of pipeline export capacity and finally, the support and potential participation in projects adding incremental conversion capacity for bitumen and synthetic crude oil. When appropriate Canadian Natural employs hedging techniques to provide some assurance on price realizations and adjusted funds flow generation, in order to fund ongoing resource development programs.

We view ownership and operation of midstream assets as an important part of cost control. Canadian Natural’s midstream asset portfolio is comprised of two crude oil pipeline systems, a 50% ownership in an 84 megawatt cogeneration plant at the Company’s steam generation facilities at Primrose. The Company also owns and operates cogeneration plants at Horizon totaling 185 megawatts. Together, through the 100% owned and operated ECHO Pipeline and the 100% owned and operated Pelican Lake Pipeline, the Company transports in excess of 50% of our heavy crude oil production to sales points with international market access.

During 2024, the Company increased its contracted crude oil transportation capacity to 256,500 bbl/d, expanding its committed volumes to Canada’s West Coast and to the United States Gulf Coast (“USGC”) to approximately 23% of 2025 targeted liquids production based on the mid-point of 2025 corporate annual guidance. The additional egress supports Canadian Natural’s long-term sales strategy by targeting expanded refining markets, driving stronger netbacks while also reducing exposure to egress constraints.

• Commending in December 2024, the Company increased its capacity on the Trans Mountain Expansion (“TMX”) pipeline by 75,000 bbl/d to a total of 169,000 bbl/d with access to global markets.
• In Q1/24, the Company increased its capacity on the Flanagan South pipeline by 55,000 bbl/d to a total of 77,500 bbl/d, further expanding the Company’s heavy oil diversification and market access to the USGC.
• The Company also has committed volumes of 10,000 bbl/d on the Keystone Base pipeline, with direct access to the USGC.