Canadian Natural Resources stock targets higher buybacks after debt milestone

Canadian Natural Resources said on November 5 that it had reached its 13 billion Canadian dollar net debt target in the third quarter, changing the planned allocation of future free cash flow toward share repurchases. The announcement was published by Nasdaq from the company release.

Management now targets allocating 100% of free cash flow to share repurchases, subject to market conditions. The near-term plan calls for 800 million Canadian dollars of monthly purchases in both November and December 2026. The company said shareholder returns are expected to remain strong into 2027 if free cash flow holds up.

Debt milestone changes capital allocation

Net debt stood at 12.1 billion Canadian dollars on September 30, below the 13 billion Canadian dollar target. Canadian Natural said it returned approximately 5.3 billion Canadian dollars to shareholders in the third quarter, including 1.3 billion Canadian dollars in dividends and 1.6 billion Canadian dollars in share repurchases. A further 2.4 billion Canadian dollars went toward debt reduction.

The policy shift gives investors clearer visibility on near-term capital returns, but the planned pace remains dependent on commodity prices and operating cash flow. Canadian Natural's adjusted funds flow reached approximately 5.5 billion Canadian dollars in the quarter, while adjusted net earnings from operations were approximately 3.4 billion Canadian dollars.

Horizon returns ahead of plan

The planned Horizon turnaround ended on October 6 after 28 days, seven days earlier than budgeted. Canadian Natural expects the earlier completion to add approximately 23,000 barrels per day of high-margin synthetic crude production in the fourth quarter compared with the original plan. Oil Sands Mining and Upgrading production was averaging approximately 640,000 barrels per day after the work.

The company is also targeting a three-year interval between major Horizon turnarounds instead of two years. It expects the change to raise average production capacity by approximately 5,000 barrels per day across the three-year cycle and to bring total Oil Sands Mining and Upgrading capacity to approximately 597,000 barrels per day.

Quarterly production remains resilient

Total production averaged approximately 1,652,000 barrels of oil equivalent per day in the third quarter, up 2% from the same period a year earlier despite the planned Horizon maintenance. Liquids production reached approximately 1,217,000 barrels per day, while thermal in situ production rose 9% year over year to 299,632 barrels per day.

Canadian Natural also approved a quarterly cash dividend of 0.625 Canadian dollars per common share on November 4. The dividend is payable on January 5, 2027, to shareholders of record at the close of business on December 15, 2026.

Canadian Natural Resources stock traded at 44.09 euros on Lang & Schwarz at 12:42 CET on Thursday, November 12, 2026.

Canadian Natural Resources is part of the Canadian energy market. Investors can follow the S&P/TSX Composite market environment for broader sector context.

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