Q3 2025 Canadian Natural Resources Ltd Earnings Call

Speaker #1: Good morning. We would like to welcome everyone to Canadian Natural Resources Ltd's 2025 Third Quarter Earnings Conference Call and Webcast. After the presentation, we will conduct a question and answer session.

Operator: Good morning. We would like to welcome everyone to Canadian Natural Resources 2025 Q3 Earnings Conference Call and 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, 6 November 2025 at 9:00 AM Mountain Time. I would now like to turn the meeting over to your host for today's call, Lance Casson, Manager of Investor Relations. Please go ahead.

Operator: Good morning. We would like to welcome everyone to Canadian Natural Resources 2025 Q3 Earnings Conference Call and 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, 6 November 2025 at 9:00 AM Mountain Time. I would now like to turn the meeting over to your host for today's call, Lance Casson, Manager of Investor Relations. Please go ahead.

Speaker #1: Instructions will be given at that time. Please note that this call is being recorded today, November 6th, 2025, at 9 a.m.

Speaker #1: Mountain Time . I would now like to turn the meeting over to your host for today's call . Lance Casson Manager of Investor Relations .

Speaker #1: Please go ahead .

Speaker #2: Thank you . Operator . Good morning . Thanks for joining Canadian Naturals . 2025 third Quarter Earnings Conference Call . As always , I'd like to remind you of our forward looking statements .

Lance Casson: Thank you, operator. Good morning. Thanks for joining Canadian Naturals Q3 2025 Earnings Conference Call. As always, I'd like to remind you of our forward-looking statements. It should be noted that in our reporting disclosures, everything is in CAD unless otherwise stated, and we report our reserves and production before royalties. Also, I would suggest to review the advisory section in our financial statements that includes comments on non-GAAP disclosure. Speaking on today's call will be Scott Stauth, our President, and Victor Darel, our Chief Financial Officer. Additionally, in the room with us this morning are Robin Zabek, CEO of E&P, and Jay Froc, CEO of Oil Sands. Scott will begin by running through our strong operational performance that includes numerous production records in the quarter and our leading operating costs.

Lance Casson: Thank you, operator. Good morning. Thanks for joining Canadian Naturals Q3 2025 Earnings Conference Call. As always, I'd like to remind you of our forward-looking statements. It should be noted that in our reporting disclosures, everything is in CAD unless otherwise stated, and we report our reserves and production before royalties. Also, I would suggest to review the advisory section in our financial statements that includes comments on non-GAAP disclosure. Speaking on today's call will be Scott Stauth, our President, and Victor Darel, our Chief Financial Officer. Additionally, in the room with us this morning are Robin Zabek, CEO of E&P, and Jay Froc, CEO of Oil Sands. Scott will begin by running through our strong operational performance that includes numerous production records in the quarter and our leading operating costs.

Speaker #2: And it should be noted that in our reporting disclosures , everything is in Canadian dollars unless otherwise stated . And we report our reserves and production before royalties .

Speaker #2: Also , I would suggest you review the advisory section and our financial statements . That includes comments on non-GAAP disclosure . Speaking on today's call will be our president and Victor Darel , our chief Financial officer .

Speaker #2: Additionally , in the room with us this morning are Robin Zabek , CEO of IMP , and Jfrog , CEO of Oilsands . Scott will begin by running through our strong operational performance that includes numerous production records in the quarter and our leading operating costs .

Speaker #2: Victor will then summarize our strong financial results and our significant returns to shareholders so far this year . To close , Scott will summarize prior to opening the line for questions .

Lance Casson: Victor will summarize our strong financial results and our significant returns to shareholders so far this year. To close, Scott will summarize prior to open the line for questions. With that, over to you, Scott.

Lance Casson: Victor will summarize our strong financial results and our significant returns to shareholders so far this year. To close, Scott will summarize prior to open the line for questions. With that, over to you, Scott.

Speaker #2: With that, over to you, Scott.

Speaker #3: Thank you , Lance , and good morning , everyone . Canadian Natural retrieved record quarterly corporate production during the quarter , both in liquids and natural gas production .

Scott Stauth: Thank you, Lance Casson. Good morning, everyone. Canadian Natural achieved record quarterly corporate production during the quarter, both in liquids and natural gas production. This is the second time this year where we have achieved quarterly production records on strong performance by our teams as we executed both organic growth and accretive acquisitions. Our production totaled approximately 1.62 million BOEs per day, which, as mentioned, includes records for both liquids and natural gas at approximately 1.18 million barrels per day and approximately 2.7 Bcf per day, respectively. The increase in production from Q3 2024 levels is very significant, totaling approximately 257,000 BOEs per day or up 19%.

Scott Stauth: Thank you, Lance Casson. Good morning, everyone. Canadian Natural achieved record quarterly corporate production during the quarter, both in liquids and natural gas production. This is the second time this year where we have achieved quarterly production records on strong performance by our teams as we executed both organic growth and accretive acquisitions. Our production totaled approximately 1.62 million BOEs per day, which, as mentioned, includes records for both liquids and natural gas at approximately 1.18 million barrels per day and approximately 2.7 Bcf per day, respectively. The increase in production from Q3 2024 levels is very significant, totaling approximately 257,000 BOEs per day or up 19%.

Speaker #3: This is the second time this year where we have achieved quarterly production records on strong performance by our teams . As we executed both organic growth and accretive acquisitions .

Speaker #3: Our production totaled approximately 1.62 million viewers per day , which , as mentioned , includes records for both liquids and natural gas . At approximately 1.18 million barrels per day .

Speaker #3: And approximately 2.7 BCF per day , respectively . The increase in production from Q3 2024 levels is very significant , totaling approximately 257,000 dose per day , or up 19% .

Speaker #3: Our world class oilsands mining and upgrading assets continued to achieve strong operational performance as Q3 2025 production averaged approximately 581,000 barrels of SCO , with strong utilization of 104% and industry leading operating costs of approximately $21 per barrel .

Scott Stauth: Our world-class oil sands mining and upgrading assets continue to achieve strong operational performance. As Q3 2025 production averaged approximately 581,000 barrels of SCO, with strong utilization of 104% and industry-leading operating costs of approximately CAD 21 per barrel. On 1 November, we closed the AOSP swap with Shell Canada Limited. Canadian Natural now owns and operates 100% of the Albian oil sands mines and associated reserves, and retains a non-operated 80% working interest in the Scotford Upgrader and Quest facilities. This transaction adds approximately 31,000 barrels per day of annual zero decline bitumen production to our portfolio, providing additional cash flow, driving long-term value creation for our shareholders. This swap also enhances our ability to integrate equipment and services across our mining operations, unlocking additional value through continuous improvement initiatives.

Scott Stauth: Our world-class oil sands mining and upgrading assets continue to achieve strong operational performance. As Q3 2025 production averaged approximately 581,000 barrels of SCO, with strong utilization of 104% and industry-leading operating costs of approximately CAD 21 per barrel. On 1 November, we closed the AOSP swap with Shell Canada Limited. Canadian Natural now owns and operates 100% of the Albian oil sands mines and associated reserves, and retains a non-operated 80% working interest in the Scotford Upgrader and Quest facilities. This transaction adds approximately 31,000 barrels per day of annual zero decline bitumen production to our portfolio, providing additional cash flow, driving long-term value creation for our shareholders. This swap also enhances our ability to integrate equipment and services across our mining operations, unlocking additional value through continuous improvement initiatives.

Speaker #3: On November 1st, we closed the AOSp swap with Shell Canada Limited. Canadian Natural now owns and operates 100% of the Albian oilsands mines and associated reserves, and retains a non-operated 80% working interest in the Scotford Upgrader in Quest facilities.

Speaker #3: This transaction adds approximately 31,000 barrels per day of annual zero decline . Bitumen production to our portfolio , providing additional cash flow driving long term value creation for our shareholders .

Speaker #3: This swap also enhances our ability to integrate equipment and services across our mining operations . Unlocking additional value through continuous improvement initiatives . Subsequent to the close of the swap transaction .

Scott Stauth: Subsequent to the close of the swap transaction, we increased our 2025 corporate production guidance range to 1,560,000 BOEs per day, 1,580,000, excuse me, million barrels per day, while our operating capital forecast remained unchanged at approximately CAD 5.9 billion, despite executing on additional activity on our larger asset base reflecting acquisitions this year. I will now run through a Q3 area operating results, starting with Oil Sands Mining and Upgrading.

Scott Stauth: Subsequent to the close of the swap transaction, we increased our 2025 corporate production guidance range to 1,560,000 BOEs per day, 1,580,000, excuse me, million barrels per day, while our operating capital forecast remained unchanged at approximately CAD 5.9 billion, despite executing on additional activity on our larger asset base reflecting acquisitions this year. I will now run through a Q3 area operating results, starting with Oil Sands Mining and Upgrading.

Speaker #3: We increased our 2025 corporate production guidance range to 1,560,000 boys per day , 101 1,580,000 million . Excuse me , million barrels per day .

Speaker #3: While our operating capital forecast remain unchanged at approximately 5.9 billion , despite executing on additional activity on our larger asset base , reflecting acquisitions this year .

Speaker #3: I will now run through a third quarter area operating results starting with oilsands mining and upgrading . During the quarter . Our world class oil sands mining upgrading production was strong , averaging 581,136 barrels per day of SCO , an increase of approximately 83,500 barrels per day , or 17% , from Q3 2024 levels , reflecting the additional interest in the AOSp acquired in December 2024 .

Scott Stauth: During the quarter, our world-class oil sands mining and upgrading production was strong, averaging 581,136 barrels per day of SCO, an increase of approximately 83,500 barrels per day or 17% from Q3 2024 levels, reflecting the additional interest in the AOSP acquired in December 2024, combined with our effective and efficient operations, which drove stronger utilization of approximately 104% in the quarter. Additionally, Canadian Natural's oil sands mining and upgrading operating costs continued to be industry-leading, averaging CAD 21.29 per barrel of SCO in Q3 2025. In our thermal in-situ operations, we achieved strong thermal production in the quarter, averaging 274,752 barrels per day Q3, up slightly from Q3 2024 levels.

Scott Stauth: During the quarter, our world-class oil sands mining and upgrading production was strong, averaging 581,136 barrels per day of SCO, an increase of approximately 83,500 barrels per day or 17% from Q3 2024 levels, reflecting the additional interest in the AOSP acquired in December 2024, combined with our effective and efficient operations, which drove stronger utilization of approximately 104% in the quarter. Additionally, Canadian Natural's oil sands mining and upgrading operating costs continued to be industry-leading, averaging CAD 21.29 per barrel of SCO in Q3 2025. In our thermal in-situ operations, we achieved strong thermal production in the quarter, averaging 274,752 barrels per day Q3, up slightly from Q3 2024 levels.

Speaker #3: Combined with our effective and efficient operations , which drove stronger utilization of approximately 104% in the quarter . Additionally , Canadian Natural's Oil Sands Mining and Upgrading operating costs continued to be industry leading , averaging $21.29 per barrel of SCO in Q3 of 2025 .

Speaker #3: And our thermal in-situ operations . We achieved strong thermal production in the quarter , averaging 274,152 barrels per day . Q3 up slightly from Q3 2024 levels .

Speaker #3: Thermal In-situ operating costs remained strong , averaging $10.35 per barrel in Q3 . A decrease of 2% from the same quarter last year .

Scott Stauth: Thermal in-situ operating costs remained strong, averaging $10.35 per barrel in Q3, a decrease of 2% from the same quarter last year. We continued to progress our pad development plans across our thermal assets. Primrose, we began drilling a CSS pad in Q3 2025, with production targeted to come on in the second half of 2026. At Jackfish, we brought a SAGD pad on production in July 2025 as planned. At Kirby, we brought on a five-well pair SAGD on production in late October as planned. Lastly, at Pike, the company tied in the two recently drilled SAGD pads into the Jackfish facilities. These two SAGD pads targeted to keep the Jackfish facilities at full capacity, with the first pad targeted to come on production in January 2026, the second pad Q2 2026.

Scott Stauth: Thermal in-situ operating costs remained strong, averaging $10.35 per barrel in Q3, a decrease of 2% from the same quarter last year. We continued to progress our pad development plans across our thermal assets. Primrose, we began drilling a CSS pad in Q3 2025, with production targeted to come on in the second half of 2026. At Jackfish, we brought a SAGD pad on production in July 2025 as planned. At Kirby, we brought on a five-well pair SAGD on production in late October as planned. Lastly, at Pike, the company tied in the two recently drilled SAGD pads into the Jackfish facilities. These two SAGD pads targeted to keep the Jackfish facilities at full capacity, with the first pad targeted to come on production in January 2026, the second pad Q2 2026.

Speaker #3: We continued to progress our Pad development plans across our thermal assets . Primrose . We began drilling at Pad in Q3 of 25 with production targeted to come on in the second half of 26 .

Speaker #3: At Jackfish , we brought a pad on production in July 25th as planned . At Kirby , we brought on a five well pair engaged on production in late October as planned .

Speaker #3: And lastly , at Pike , the company tied in the two recently drilled cig d pads into the Jackfish facilities . These two pads , targeted to keep the jackfish facilities at full capacity , with the first pad targeted to come on production in January 2026 .

Speaker #3: The second pad , Q2 of 26 at the commercial scale solvent D Pad Kirby North Current saw reductions in solvent recoveries or median expectations following recent workovers and optimizations .

Scott Stauth: At the commercial scale solvent SAGD pad in Kirby North, current SOR reductions in solvent recoveries are meeting expectations following recent workovers and optimizations. On the conventional side of the business, Canadian Natural's highly successful multilateral heavy crude oil drilling program continues to unlock opportunities on our approximately 3 million net acres of high-quality land throughout our primary heavy crude oil assets. Primary heavy crude oil production averaged 87,705 barrels during the quarter, an increase of 14% from Q3 2024 levels, reflecting strong drilling results on our multilateral wells. Operating costs in our primary heavy crude oil operations averaged CAD 16.46 per barrel in Q3, a decrease of 12% from Q3 of 2024, primarily reflecting higher production volumes and the increasing proportion of lower operating costs multilateral production.

Scott Stauth: At the commercial scale solvent SAGD pad in Kirby North, current SOR reductions in solvent recoveries are meeting expectations following recent workovers and optimizations. On the conventional side of the business, Canadian Natural's highly successful multilateral heavy crude oil drilling program continues to unlock opportunities on our approximately 3 million net acres of high-quality land throughout our primary heavy crude oil assets. Primary heavy crude oil production averaged 87,705 barrels during the quarter, an increase of 14% from Q3 2024 levels, reflecting strong drilling results on our multilateral wells. Operating costs in our primary heavy crude oil operations averaged CAD 16.46 per barrel in Q3, a decrease of 12% from Q3 of 2024, primarily reflecting higher production volumes and the increasing proportion of lower operating costs multilateral production.

Speaker #3: The conventional side of the business , Canadian Natural's highly successful multilateral heavy crude oil drilling program , continues to unlock opportunities on our approximately 3 million net acres of high quality land throughout our primary heavy oil , crude crude oil assets .

Speaker #3: Primary heavy crude oil production averaged 87,705 barrels during the quarter , an increase of 14% from Q3 2024 levels , reflecting strong drilling results on our multilateral wells .

Speaker #3: Operating costs in our primary heavy oil , crude oil operations averaged $16.46 per barrel in Q3 , a decrease of 12% from Q3 of 2024 , primarily reflecting higher production volumes in the increasing proportion of lower operating costs .

Speaker #3: Multilateral production . Pelican Lake production averaged approximately 42,100 barrels per day , a decrease of 7% from Q3 of 24 , reflecting planned maintenance that took place in Q3 of 25 .

Scott Stauth: Pelican Lake production averaged approximately 42,100 barrels per day, a decrease of 7% from Q3 2024, reflecting planned maintenance that took place in Q3 2025, the low nature of field declines from this long-life, low-decline asset. Low operating costs at Pelican averaged CAD 9 per barrel in the quarter. North American land crude oil and natural gas production averaged 180,100 barrels per day during the quarter, an increase of 69% or approximately 74,000 barrels per day from Q3 2024, primarily reflecting production volumes from the acquisition of the liquid rich Duvernay assets in September 2024 and land crude oil from the Palliser block assets in Q2 of this year, as well as liquid rich Montney assets in the Grande Prairie area during Q3.

Scott Stauth: Pelican Lake production averaged approximately 42,100 barrels per day, a decrease of 7% from Q3 2024, reflecting planned maintenance that took place in Q3 2025, the low nature of field declines from this long-life, low-decline asset. Low operating costs at Pelican averaged CAD 9 per barrel in the quarter. North American land crude oil and natural gas production averaged 180,100 barrels per day during the quarter, an increase of 69% or approximately 74,000 barrels per day from Q3 2024, primarily reflecting production volumes from the acquisition of the liquid rich Duvernay assets in September 2024 and land crude oil from the Palliser block assets in Q2 of this year, as well as liquid rich Montney assets in the Grande Prairie area during Q3.

Speaker #3: The low nature of field declines from this long life low decline asset , low operating costs , Pelican averaged $9 per barrel in the quarter .

Speaker #3: North American light crude oil and natural gas production averaged 180,100 barrels per day during the quarter , an increase of 69% , or approximately 74,000 barrels per day from Q3 of 24 , primarily reflecting production volumes from the acquisition of the liquid rich DuVernay assets in December of 24 and light crude oil from the Palliser Block assets in Q2 of this year , as well as liquid rich Montney assets in the Grand Prairie era .

Speaker #3: During the third quarter , operating costs of the company's North American crude oil and NGLs operations averaged $12.91 per barrel , a decrease of 6% from Q3 24 , primarily reflecting higher production volumes .

Scott Stauth: Operating costs of the company's North American land crude oil and NGLs operations averaged CAD 12.91 per barrel, a decrease of 6% from Q3 2024, primarily reflecting higher production volumes. On the natural gas side, North American production averaged approximately 2.66 Bcf for the quarter, an increase of 30% from Q3 2024 levels, primarily reflecting the Duvernay and Montney acquisitions and strong drilling results in our liquid rich natural gas assets. North American natural gas operating costs averaged CAD 1.14 per Mcf in Q3, a decrease of 7% from Q3 2024 levels of CAD 1.23 per Mcf, reflecting higher production volumes and cost efficiencies. Our unique diverse asset base provides us with a competitive advantage. We allocate capital to the highest return projects without being reliant on any one commodity.

Scott Stauth: Operating costs of the company's North American land crude oil and NGLs operations averaged CAD 12.91 per barrel, a decrease of 6% from Q3 2024, primarily reflecting higher production volumes. On the natural gas side, North American production averaged approximately 2.66 Bcf for the quarter, an increase of 30% from Q3 2024 levels, primarily reflecting the Duvernay and Montney acquisitions and strong drilling results in our liquid rich natural gas assets. North American natural gas operating costs averaged CAD 1.14 per Mcf in Q3, a decrease of 7% from Q3 2024 levels of CAD 1.23 per Mcf, reflecting higher production volumes and cost efficiencies. Our unique diverse asset base provides us with a competitive advantage. We allocate capital to the highest return projects without being reliant on any one commodity.

Speaker #3: The natural gas site North America production averaged approximately 2.66 BCF for the quarter , an increase of 30% from Q3 2024 . Levels , primarily reflecting the DuVernay and Montney acquisitions and strong drilling results in our liquid rich natural gas assets .

Speaker #3: North American natural gas operating costs averaged $1.14 per MCF in Q3 , a decrease of 7% from Q3 of 24 levels of $1.20 per MCF , reflecting higher production volumes .

Speaker #3: Cost efficiencies , a unique and diverse asset base provides us with a competitive advantage . We allocate capital to the highest return projects without being reliant on any one commodity .

Speaker #3: Our consistent and top tier results are driven by safe and reliable operations . Our commitment to continuous improvement , supported by a strong team culture in all areas of our company that focus on improving our cost , driving execution of growth opportunities and increasing value to shareholders .

Scott Stauth: Our consistent and top-tier results are driven by safe and reliable operations. Our commitment to continuous improvement, supported by a strong team culture in all areas of our company that focus on improving our costs, driving execution of growth opportunities, and increasing value to shareholders. Now I will turn it over to Victor for our Q3 financial review.

Scott Stauth: Our consistent and top-tier results are driven by safe and reliable operations. Our commitment to continuous improvement, supported by a strong team culture in all areas of our company that focus on improving our costs, driving execution of growth opportunities, and increasing value to shareholders. Now I will turn it over to Victor for our Q3 financial review.

Speaker #3: Now I will turn it over to Victor for our third quarter financial review . Thanks , Scott , and good .

Victor Darel: Thanks, Scott. Good morning, everyone. In Q3 2025, we achieved several production records as a result of strong operational performance and the accretive acquisition over the past year. Contributing to the strong results this quarter, our teams demonstrated excellent execution, evidenced through a strong operating cost performance in the quarter. Our results, including strategic acquisitions completed in the last 12 months, supported strong quarterly adjusted funds flow of approximately CAD 3.9 billion and adjusted net earnings of CAD 1.8 billion. Returns to shareholders in the quarter were CAD 1.5 billion, including CAD 1.2 billion of dividends and CAD 300 million of share repurchases.

Victor Darel: Thanks, Scott. Good morning, everyone. In Q3 2025, we achieved several production records as a result of strong operational performance and the accretive acquisition over the past year. Contributing to the strong results this quarter, our teams demonstrated excellent execution, evidenced through a strong operating cost performance in the quarter. Our results, including strategic acquisitions completed in the last 12 months, supported strong quarterly adjusted funds flow of approximately CAD 3.9 billion and adjusted net earnings of CAD 1.8 billion. Returns to shareholders in the quarter were CAD 1.5 billion, including CAD 1.2 billion of dividends and CAD 300 million of share repurchases.

Speaker #4: Morning , everyone . In the third quarter of 2025 , we achieved several production records as a result of strong operational performance and the accretive acquisitions over the past year , contributing to the strong results this quarter .

Speaker #4: Our teams demonstrated excellent execution , evidenced through our strong operating cost performance in the . Our results , including strategic acquisitions completed in months , supported strong quarterly adjusted funds flow of approximately 3.9 billion and adjusted net earnings of 1.8 billion returns to shareholders in the quarter were 1.5 billion , including 1.2 billion of dividends and 300 million of share repurchases , dividend payments and share repurchases .

Victor Darel: Dividend payments and share repurchases in 2025 up to and including 5 November bring total year-to-date shareholder returns to approximately CAD 6.2 billion and contributing significant production growth per share in 2025, targeted at 16% compared to 2024, demonstrating very significant value creation this year. As a reminder, Canadian Natural has increased its dividend for 25 consecutive years with a CAGR of 21%, a truly impressive track record that is unique amongst our peer group. Subsequent to quarter end, the board has approved a quarterly dividend of CAD 0.5875 a common share payable on 6 January 2026 to shareholders of record at the close of business on 12 December 2025. Our balance sheet remains strong with quarter end debt-to-EBITDA of 0.9x and debt to book capital coming in at 29.8%.

Victor Darel: Dividend payments and share repurchases in 2025 up to and including 5 November bring total year-to-date shareholder returns to approximately CAD 6.2 billion and contributing significant production growth per share in 2025, targeted at 16% compared to 2024, demonstrating very significant value creation this year. As a reminder, Canadian Natural has increased its dividend for 25 consecutive years with a CAGR of 21%, a truly impressive track record that is unique amongst our peer group. Subsequent to quarter end, the board has approved a quarterly dividend of CAD 0.5875 a common share payable on 6 January 2026 to shareholders of record at the close of business on 12 December 2025. Our balance sheet remains strong with quarter end debt-to-EBITDA of 0.9x and debt to book capital coming in at 29.8%.

Speaker #4: In 2025 , up to and including November 5th bring total year to date shareholder returns to approximately 6.2 billion and contributing significant production growth per share in 2025 .

Speaker #4: Targeted at 16% compared to 2020 . For demonstrating very significant value creation this year . As a reminder , Canadian Natural has increased its dividend for 25 consecutive years with a kegger of 21% .

Speaker #4: A truly impressive track record that is unique amongst our peer group . Subsequent to quarter end , the board the last 12 dividend of 58.7 $0.05 per common share , payable on January 6th , 2026 , to shareholders of record at the close of business on December 12th , 2025 .

Speaker #4: Our balance sheet remains strong , with quarter end debt to EBITDA of 0.9 times and debt to book capital coming in at 29.8% .

Speaker #4: Quarter end liquidity was also strong at over 4.3 billion , reflecting undrawn revolving bank facilities . Cash on hand at period end . Additionally , during Q3 .

Victor Darel: Quarter end liquidity was also strong at over CAD 4.3 billion, reflecting undrawn revolving bank facilities and cash on hand at period end. Additionally, during Q3, the company repaid $600 million of US dollar debt securities and received a new long-term investment grade credit rating of BBB+ from Fitch Ratings. Our Q3 results reflect the impact of accretive acquisitions which have immediately contributed to incremental production and additional free cash flow generation. Our robust quarterly funds flow and strong balance sheet demonstrates our industry-leading cost structure, large reserve base of high quality, long life, low decline assets, and our commitment to continuous improvement and reliable execution. These factors, along with the company's track record of delivering strong shareholder returns, support significant long-term value creation for Canadian Natural and our shareholders. With that, I'll turn it back to you, Scott Stauth.

Victor Darel: Quarter end liquidity was also strong at over CAD 4.3 billion, reflecting undrawn revolving bank facilities and cash on hand at period end. Additionally, during Q3, the company repaid $600 million of US dollar debt securities and received a new long-term investment grade credit rating of BBB+ from Fitch Ratings. Our Q3 results reflect the impact of accretive acquisitions which have immediately contributed to incremental production and additional free cash flow generation. Our robust quarterly funds flow and strong balance sheet demonstrates our industry-leading cost structure, large reserve base of high quality, long life, low decline assets, and our commitment to continuous improvement and reliable execution. These factors, along with the company's track record of delivering strong shareholder returns, support significant long-term value creation for Canadian Natural and our shareholders. With that, I'll turn it back to you, Scott Stauth.

Speaker #4: The company repaid $600 million of US dollar debt securities and received a new long term investment grade credit rating of Triple-b plus from Fitch .

Speaker #4: Rating . Our third quarter results reflect the impact of route of acquisition , which have immediately contributed incremental production and additional free cash flow generation .

Speaker #4: Our robust quarterly funds flow and strong balance sheet demonstrates our industry leading cost structure , large reserve base of high quality , long life , low decline assets and our commitment to continuous improvement and reliable execution .

Speaker #4: These factors , along the company's track record of delivering strong shareholder returns for its significant long term value creation for Canadian natural and our shareholders .

Speaker #4: With that , I'll turn it back to you , Scott .

Speaker #3: Thanks , Victor . In summary here at Canadian Natural , our culture of continuous improvement and ownership alignment with shareholders drives our teams to create significant value across all of the areas .

Scott Stauth: Thanks, Victor. In summary, here at Canadian Natural, our culture of continuous improvement and ownership alignment with shareholders drives our teams to create significant value across all of the areas of the company. Once again, we achieved record production levels, strong financial results through our effective and efficient operations, driving strong returns on capital, and value creation for our shareholders. Lastly, just a reminder that we will be hosting our open house tomorrow morning, starting at 8:30 AM Eastern Standard Time, where we will go over our strategy and unparalleled independence, and provide details on our assets and value creation opportunities. You're also invited to listen to the management presentation and view the presentation slides via webcast. You can look for our website for further details. With that, I will turn it over for questions.

Scott Stauth: Thanks, Victor. In summary, here at Canadian Natural, our culture of continuous improvement and ownership alignment with shareholders drives our teams to create significant value across all of the areas of the company. Once again, we achieved record production levels, strong financial results through our effective and efficient operations, driving strong returns on capital, and value creation for our shareholders. Lastly, just a reminder that we will be hosting our open house tomorrow morning, starting at 8:30 AM Eastern Standard Time, where we will go over our strategy and unparalleled independence, and provide details on our assets and value creation opportunities. You're also invited to listen to the management presentation and view the presentation slides via webcast. You can look for our website for further details. With that, I will turn it over for questions.

Speaker #3: Company . Once again , we achieved record production levels , strong financial results through our effective and efficient operations , driving strong returns on capital value creation for our shareholders .

Speaker #3: Lastly , just a reminder that we will be hosting our open house tomorrow morning starting at 830 Eastern Standard Time , where we will go over our strategy and unparalleled dependent provide details on our assets and value creation opportunities .

Speaker #3: We also invited you to listen to the management presentation and view the presentation slides via webcast. You can look to our website for further details. I will now turn it over for questions.

Speaker #1: Thank you . Ladies and gentlemen , we will now begin the question and answer session . Should you have a question , please press star one on your touch tone phone .

Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star two. If you're using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question. Your first question comes from Dennis Fong of CIBC World Markets. Your line is already open.

Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star two. If you're using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question. Your first question comes from Dennis Fong of CIBC World Markets. Your line is already open.

Speaker #1: You will hear a prompt that your hand has been raised should you wish to decline from the polling process , please press star two .

Speaker #1: If you are using a speakerphone , please lift the handset before pressing any keys . One moment please , for your first question .

Speaker #1: Your first question comes from Dennis Fong of CIBC World Markets . Your line is already open .

Speaker #5: Hi . Good morning , and thank you for taking my questions . The first one is is related to your recent closing of the asset swap for the Albion Mine .

Dennis Fong: Hi, good morning, thank you for taking my questions. The first one is related to your recent closing of the asset swap for the Albian mine. Now that you control two mining assets in very close proximity to each other, can you talk to some of the potential upside or opportunities that exist? I know you've already addressed consolidating inventory and lowering kind of spare parts required in various storerooms, but can you talk towards maybe operational benefits beyond that, again, given the proximity of the two assets?

Dennis Fong: Hi, good morning, thank you for taking my questions. The first one is related to your recent closing of the asset swap for the Albian mine. Now that you control two mining assets in very close proximity to each other, can you talk to some of the potential upside or opportunities that exist? I know you've already addressed consolidating inventory and lowering kind of spare parts required in various storerooms, but can you talk towards maybe operational benefits beyond that, again, given the proximity of the two assets?

Speaker #5: Now that you control two mining assets in very close proximity to each other , can you talk to some of the potential upside or opportunities that exist ?

Speaker #5: I know you've already addressed consolidating inventory and lowering kind of spare parts required in kind of various storerooms . But can you talk towards maybe operational benefits beyond that ?

Speaker #5: Again , given the proximity of the two assets ?

Speaker #3: Yeah . Thanks , Dennis . And in addition to to what you had mentioned , there's also the utilization of equipment . So that would include the large haul trucks and the support equipment such as dozers , graders and and other assets , that of of that nature .

Scott Stauth: Yeah. Thanks, Dennis. In addition to what you had mentioned, there's also the utilization of equipment. That would include the large haul trucks and the support equipment such as dozers, graders, and other assets of that nature. Dennis, I would suggest that it would be worthwhile for listening for more details tomorrow during our open house, and we can get into some more detail in terms of the cost savings that we are working on and working to achieve there. I think that's probably the best way to explain it, is be a part of our open house tomorrow.

Scott Stauth: Yeah. Thanks, Dennis. In addition to what you had mentioned, there's also the utilization of equipment. That would include the large haul trucks and the support equipment such as dozers, graders, and other assets of that nature. Dennis, I would suggest that it would be worthwhile for listening for more details tomorrow during our open house, and we can get into some more detail in terms of the cost savings that we are working on and working to achieve there. I think that's probably the best way to explain it, is be a part of our open house tomorrow.

Speaker #3: But Dennis I would I would suggest that it would be worthwhile for listening for more details tomorrow during an open house and we can get into some more detail in terms of the cost savings that that we are working on and working to achieve there .

Speaker #3: So I think that's probably the best way to explain it is be a part of our open house tomorrow .

Speaker #5: Perfect . I'll have to wait and see , I guess . On on that basis , I suspect this . The second question may have a similar answer , but I mean , given the continued development and the the timing of the wells at Pike , I was just kind of looking through and it seems like grouse in close proximity to your Kirby assets , has a similar , I guess , opportunity there .

Dennis Fong: Perfect. I'll have to wait and see, I guess, on that basis. I suspect the second question may have a similar answer, but I mean, given the continued development, and the tie-in of the wells at Pike, I was just kind of looking through, and it seems like Grouse in close proximity to your Kirby assets has a similar, I guess, opportunity there. Can you maybe outline maybe some of the efficiencies that you could see via developing kind of proximal resource to your two other central processing facilities?

Dennis Fong: Perfect. I'll have to wait and see, I guess, on that basis. I suspect the second question may have a similar answer, but I mean, given the continued development, and the tie-in of the wells at Pike, I was just kind of looking through, and it seems like Grouse in close proximity to your Kirby assets has a similar, I guess, opportunity there. Can you maybe outline maybe some of the efficiencies that you could see via developing kind of proximal resource to your two other central processing facilities?

Speaker #5: Can you maybe outline maybe some of the efficiencies that you could see via developing kind of proximal resource to your two other central processing facilities ?

Speaker #3: Yeah, for sure, Dennis. And I think you were bang on when you suggested that there's probably going to be a similar answer.

Scott Stauth: For sure, Dennis. I think you're bang on when you suggested it's probably gonna be a similar answer. For sure, we'll walk you through tomorrow, the assets that are adjacent to the adjacent Jackfish and Kirby assets. We'll be able to give you a good rundown tomorrow of how we would look at development plans, given the opportunities that are presented in those areas. Looking forward to that discussion tomorrow.

Scott Stauth: For sure, Dennis. I think you're bang on when you suggested it's probably gonna be a similar answer. For sure, we'll walk you through tomorrow, the assets that are adjacent to the adjacent Jackfish and Kirby assets. We'll be able to give you a good rundown tomorrow of how we would look at development plans, given the opportunities that are presented in those areas. Looking forward to that discussion tomorrow.

Speaker #3: I for sure we'll walk you through tomorrow . The assets that are adjacent to the list . Adjacent Jackfish and Kirby assets . So we'll be able to give you a good rundown tomorrow of how we would look at development plans , given the opportunities that are presented in those areas .

Speaker #3: So looking forward to that discussion tomorrow.

Speaker #5: Sounds good Scott . Thanks . I'll turn it back .

Dennis Fong: Sounds good, Scott. Thanks. I'll turn it back.

Dennis Fong: Sounds good, Scott. Thanks. I'll turn it back.

Speaker #3: Thanks , Dennis .

Scott Stauth: Thanks, Dennis.

Scott Stauth: Thanks, Dennis.

Speaker #1: Your next question comes from Manav Gupta of UBS. Your line is already open.

Operator: Your next question comes from Manav Gupta of UBS. Your line is already open.

Operator: Your next question comes from Manav Gupta of UBS. Your line is already open.

Manav Gupta: Good morning. Congrats on a very strong quarter again. I wanted to ask you about announcement yesterday from Energy Transfer that they are looking to FID their Southern Illinois Connector pipeline, looking to get more Canadian crude into Illinois and to Gulf Coast. I just wanted to understand, would you be open to participating in any such project or any other major projects out there which give you more incremental egress capacity towards the MidCon or the Gulf Coast refiners where your crude is highly valued?

Speaker #6: Good morning . Congrats on a very strong quarter again . I wanted to ask you about an announcement yesterday from Energy Transfer that they are looking to fit their South Illinois Connector pipeline .

Manav Gupta: Good morning. Congrats on a very strong quarter again. I wanted to ask you about announcement yesterday from Energy Transfer that they are looking to FID their Southern Illinois Connector pipeline, looking to get more Canadian crude into Illinois and to Gulf Coast. I just wanted to understand, would you be open to participating in any such project or any other major projects out there which give you more incremental egress capacity towards the MidCon or the Gulf Coast refiners where your crude is highly valued?

Speaker #6: Getting looking to get more Canadian crude into Illinois and to Gulf Coast . And I just wanted to understand , would you be open to participating in any such project or any other major projects out there which give you more incremental progress capacity towards the mid corner or the Gulf Coast refiners , where your crude is highly valued ?

Speaker #3: Yeah , thanks for the question . And certainly we review those opportunities for egress when tabled . And you know , I can just tell you that there are a number of opportunities , whether it be Enbridge , TMX or others .

Scott Stauth: Yeah, thanks for the question. Certainly, we review those opportunities for egress when fabled. You know, I can just tell you that there are a number of opportunities, whether it be Enbridge, TMX, or others. Certainly gonna look at those and to see if we would participate in volumes commitments on those or otherwise. The good news is for the basin and the egress opportunities that companies have been talking about bode very well for strong differentials, and ultimately, that's the most important part of the aspect. Whether your barrels are locked up or whether they're sold in the Hardisty Edmonton areas, it's a positive for Canadian crude. Looking forward to those opportunities as they come about, and we'll see where that goes.

Scott Stauth: Yeah, thanks for the question. Certainly, we review those opportunities for egress when fabled. You know, I can just tell you that there are a number of opportunities, whether it be Enbridge, TMX, or others. Certainly gonna look at those and to see if we would participate in volumes commitments on those or otherwise. The good news is for the basin and the egress opportunities that companies have been talking about bode very well for strong differentials, and ultimately, that's the most important part of the aspect. Whether your barrels are locked up or whether they're sold in the Hardisty Edmonton areas, it's a positive for Canadian crude. Looking forward to those opportunities as they come about, and we'll see where that goes.

Speaker #3: Certainly going to look at those and to see if we would participate . And volumes commitments on those or otherwise . But the good news is , for the basin and the egress opportunities that companies have been talking about , bode very well for strong differentials and ultimately , that's the most important part of the aspect , whether your barrels are locked up or whether they're sold in the Hardisty , Edmonton areas , it's a positive for for Canadian crude .

Speaker #3: So looking forward to those opportunities as they come about . And we'll see where that goes .

Speaker #6: Thank you . I'll turn it over .

Manav Gupta: Thank you. I'll turn it over.

Manav Gupta: Thank you. I'll turn it over.

Speaker #1: Your next question comes from Doug Leggate of Wolfe Research. Your line is open.

Operator: Your next question comes from Doug Leggate of Wolfe Research. Your line is already open.

Operator: Your next question comes from Doug Leggate of Wolfe Research. Your line is already open.

Speaker #7: Hey good morning Jim . This is Carlos actually on for Doug , who , by the way , is on his way to your Analyst Day .

[Analyst] (Wolfe Research): Hey, good morning, team. This is Carlos actually on for Doug, who, by the way, is on his way to your Analyst Day. He sends his apologies. Just to be real quick with this, respectful of my peers' time. Number one, wonder what your perception is today of the need to further consolidate Western Canada gas in the context of weak AECO pricing and despite the ramp in LNG, perhaps similar to how your US peers have been doing in the recent past.

Carlos Escalante: Hey, good morning, team. This is Carlos actually on for Doug, who, by the way, is on his way to your Analyst Day. He sends his apologies. Just to be real quick with this, respectful of my peers' time. Number one, wonder what your perception is today of the need to further consolidate Western Canada gas in the context of weak AECO pricing and despite the ramp in LNG, perhaps similar to how your US peers have been doing in the recent past.

Speaker #7: So he sends his apologies , but just to be real quick with this , respectful of my peers time number one . Wonder what your perception is today of of the need to further consolidate West Canada gas in the context of weak AA pricing and despite the ramp in LNG , perhaps similar to how your US peers have been doing in the recent past .

Speaker #3: Yeah , it's a good question . You don't have to apologize for for Doug . That's good to see that . He'll show up tomorrow .

Scott Stauth: Yeah, it's a good question, and you don't have to apologize for Doug. That's good to see that he'll show up tomorrow. We're looking forward to those discussion. In terms of a consolidation, certainly we're seeing some of that evolve. I think the most important thing to the basin is, maybe it's a certain degree of consolidation, but the most important thing is egress opportunities. The more gas that we can move out of the basin, the better. The LNG projects that are online now, LNG Canada and others that are coming on in the future, are very much needed for the basin to fully unlock the potential.

Scott Stauth: Yeah, it's a good question, and you don't have to apologize for Doug. That's good to see that he'll show up tomorrow. We're looking forward to those discussion. In terms of a consolidation, certainly we're seeing some of that evolve. I think the most important thing to the basin is, maybe it's a certain degree of consolidation, but the most important thing is egress opportunities. The more gas that we can move out of the basin, the better. The LNG projects that are online now, LNG Canada and others that are coming on in the future, are very much needed for the basin to fully unlock the potential.

Speaker #3: We're looking forward to those discussions . In terms of a consolidation . Certainly we're seeing some of that evolve . I think the most important thing to the basin is maybe a certain degree of consolidation , but the most important thing is egress opportunities .

Speaker #3: So the more gas that we can move out of the basin , the better the LNG projects that are are online . Now , LNG Canada and others that are are coming on in the future are very much needed for the basin to fully unlock the potential .

Speaker #3: So , you know , in spite of weather , whatever M&A activity that may be going on in the basin , we look forward to more egress because ultimately that's what the basin requires .

Scott Stauth: You know, in spite of whatever M&A activity that may be going on in the basin, we look forward to more egress because ultimately that's what the basin requires.

Scott Stauth: You know, in spite of whatever M&A activity that may be going on in the basin, we look forward to more egress because ultimately that's what the basin requires.

Speaker #7: So, thank you very much. I appreciate that. And just a real quick housekeeping item: looks like your Palace are in Denver.

[Analyst] (Wolfe Research): Sweet. Thank you very much. Appreciate that. Just a real quick housekeeping item. Looks like your Palliser and Duvernay might have contributed to your sequential oil production growth. Just wonder if you could share if that is the case, and if so, how does it set you up for your growth outlook into first half of 2026?

Carlos Escalante: Sweet. Thank you very much. Appreciate that. Just a real quick housekeeping item. Looks like your Palliser and Duvernay might have contributed to your sequential oil production growth. Just wonder if you could share if that is the case, and if so, how does it set you up for your growth outlook into first half of 2026?

Speaker #7: Might have contributed to your sequential oil production growth . Just just wonder if you could share if that is the case . And if so , how how does it set you up for your growth outlook into first half of 26 ?

Speaker #3: Yeah , certainly both of those areas will be part of our budgeting activities for for next year . We've got strong production growth in the DuVernay .

Scott Stauth: Yeah, certainly both of those areas will be part of our budgeting activities for next year. We've got strong production growth in the Duvernay, and having taken over the assets earlier this year in the Palliser Block, we continue the capital allocation towards going light oil wells in that area, and it'll be a part of our program for next year as well.

Scott Stauth: Yeah, certainly both of those areas will be part of our budgeting activities for next year. We've got strong production growth in the Duvernay, and having taken over the assets earlier this year in the Palliser Block, we continue the capital allocation towards going light oil wells in that area, and it'll be a part of our program for next year as well.

Speaker #3: And having taken over the assets earlier this year , and the Palace , block , we continue the capital allocation towards the only light oil wells in that area , and it will be a part of our program for next year as well .

Speaker #7: Thank you Jim . Appreciate it .

[Analyst] (Wolfe Research): Thank you, team. Appreciate it.

Carlos Escalante: Thank you, team. Appreciate it.

Speaker #3: Thanks .

Scott Stauth: Thanks.

Scott Stauth: Thanks.

Speaker #1: Your next question comes from Greg Pardy of RBC Capital Markets . Your line is already open .

Operator: Your next question comes from Greg Pardy of RBC Capital Markets. Your line is already open.

Operator: Your next question comes from Greg Pardy of RBC Capital Markets. Your line is already open.

Speaker #8: Yeah . Thanks . Thanks . Good morning . And Scott , I'll apologize because I won't be there in person tomorrow , which is probably the first time in , you know , 20 something years .

Greg Pardy: Yeah, thanks. Thanks. Good morning. Scott Stauth, I'll apologize 'cause I won't be there in person tomorrow, which is probably the first time in, you know, 20-something years. In any event, I'll have a go at you maybe ahead of tomorrow. What's your thinking now? I mean, we've had a new federal government in place for a little bit of time now. There's been a lot more dialogue with the industry. Just curious, any broad strokes on progress on things like Pathways Alliance? How much easier is it maybe now to work with the federal government? Is this sort of a cautious approach? Just interested in any broad strokes there that you might have.

Greg Pardy: Yeah, thanks. Thanks. Good morning. Scott Stauth, I'll apologize 'cause I won't be there in person tomorrow, which is probably the first time in, you know, 20-something years. In any event, I'll have a go at you maybe ahead of tomorrow. What's your thinking now? I mean, we've had a new federal government in place for a little bit of time now. There's been a lot more dialogue with the industry. Just curious, any broad strokes on progress on things like Pathways Alliance? How much easier is it maybe now to work with the federal government? Is this sort of a cautious approach? Just interested in any broad strokes there that you might have.

Speaker #8: But in any event , I'll have a go at you . Maybe a head of tomorrow . What's your thinking now ? I mean , we've had a new federal government in place for a little bit of time now .

Speaker #8: There's dialogue with the industry . Just curious , any broad strokes on progress , on things like pathways ? How much easier is it ?

Speaker #8: There's been a lot more

Speaker #8: Maybe now to to work with the federal government ? Is this sort of a cautious approach ? Just interested in any , any broad strokes there that you might have ?

Speaker #3: Well , we'll miss you tomorrow there , Greg . But I do appreciate your question . There today . And and certainly we're seeing more positive signs than we've seen in the past under previous leadership .

Scott Stauth: Well, we'll miss you tomorrow there, Greg, but I do appreciate your question there today. Certainly we're seeing more positive signs than we've seen in the past under previous leadership. We like the discussions that are going on, Greg, but as always, there's lots of details to work through in terms of carbon competitiveness. That's going to be key to understand the impacts that may come out of that level of discussion.

Scott Stauth: Well, we'll miss you tomorrow there, Greg, but I do appreciate your question there today. Certainly we're seeing more positive signs than we've seen in the past under previous leadership. We like the discussions that are going on, Greg, but as always, there's lots of details to work through in terms of carbon competitiveness. That's going to be key to understand the impacts that may come out of that level of discussion.

Speaker #3: So we like the discussions that are going on . Greg . But as always , there's lots of details to work through in terms of carbon competitiveness .

Speaker #3: That's going to be key to understand the impacts that may come out of that level of discussion . That the details at this point are not well understood .

Scott Stauth: The details at this point are not well understood, and we'll certainly be very anxious to work with the government and the government of Alberta to make sure that we've got a collaborative way to move forward to address the needs for Pathways and certainly for future growth opportunities to, again, unlock additional value out of the basin, whether it be Oil sands or conventional, more egress is needed on both gas and oil. The more that we can do collectively working together with the governments to help promote that growth, increase the jobs, Canada increase, of course, taxes, and royalties. Certainly everyone's aware on this call the importance of the industry for the GDP to Canada. I think it's really important to continue on these discussions.

Scott Stauth: The details at this point are not well understood, and we'll certainly be very anxious to work with the government and the government of Alberta to make sure that we've got a collaborative way to move forward to address the needs for Pathways and certainly for future growth opportunities to, again, unlock additional value out of the basin, whether it be Oil sands or conventional, more egress is needed on both gas and oil. The more that we can do collectively working together with the governments to help promote that growth, increase the jobs, Canada increase, of course, taxes, and royalties. Certainly everyone's aware on this call the importance of the industry for the GDP to Canada. I think it's really important to continue on these discussions.

Speaker #3: way to move forward to address the the needs for pathways , and certainly for future growth opportunities to again unlock additional value out of the basin , whether it be oil sands or conventional more egress is needed on both gas and oil .

Speaker #3: And so the more that we can do collectively working together with the governments to help promote that growth , increase the jobs Canada increased , of course , taxes and royalties , certainly everyone's aware on this call .

Speaker #3: The importance of the industry for the for the GDP of Canada . So I think it's really important to , to to continue on these discussions .

Scott Stauth: Good to see what we have seen so far, but wanna get into the detailed discussions, Greg, and make sure we truly understand what carbon competitive actually means. Until we get those details, it's a little bit early to say exactly how things will unfold, but we are encouraged by the engagement.

Speaker #3: Good to see what we have seen so far, but I want to get into the detailed discussions. Greg, let's make sure we truly understand what carbon competitive actually means.

Scott Stauth: Good to see what we have seen so far, but wanna get into the detailed discussions, Greg, and make sure we truly understand what carbon competitive actually means. Until we get those details, it's a little bit early to say exactly how things will unfold, but we are encouraged by the engagement.

Speaker #3: And until we get those details , it's a little bit early to to say exactly how things were unfold . But we are encouraged by the engagement .

Speaker #8: Okay , okay . Terrific . No , I think that's probably as much as you can say right now . And as you say , there's there's a lot more water that needs to flow into the bridge .

Greg Pardy: Okay. Okay, terrific. No, I think that's probably as much as you can say right now. As you say, there's a lot more water that needs to flow under the bridge. Maybe I'll pivot just on a specific question that came in from one investor, which was just around the potential acceleration of the T block decommissioning. If we look at your financing cost in Q3, significantly lower. I know some of that had to do with PRT and so forth. The abandonment expenditures tend to be a fairly large number.

Greg Pardy: Okay. Okay, terrific. No, I think that's probably as much as you can say right now. As you say, there's a lot more water that needs to flow under the bridge. Maybe I'll pivot just on a specific question that came in from one investor, which was just around the potential acceleration of the T block decommissioning. If we look at your financing cost in Q3, significantly lower. I know some of that had to do with PRT and so forth. The abandonment expenditures tend to be a fairly large number.

Speaker #8: Maybe I'll pivot just on a specific question that came in from , from one investor , which was just around the potential acceleration of the T block decommissioning .

Speaker #8: So if we look at your financing costs in Q3, they are significantly lower. I know some of that had to do with PRT.

Speaker #8: And so forth . The abandonment expenditures tend to be a fairly large number . I'm just trying to get , even though you may not want to talk too much about 26 CapEx and so forth , maybe I just want to get a sense maybe from Victor as to what the implications there could be and to the extent you can quantify it , that would or even roughly quantify it , that would be super helpful .

Greg Pardy: I'm just trying to get, even though you may not wanna talk too much about 2026 CapEx and so forth, maybe, just wanna get a sense maybe from Victor as to what the implications there could be and to the extent you can quantify it, or even roughly quantify it, that would be super helpful.

Greg Pardy: I'm just trying to get, even though you may not wanna talk too much about 2026 CapEx and so forth, maybe, just wanna get a sense maybe from Victor as to what the implications there could be and to the extent you can quantify it, or even roughly quantify it, that would be super helpful.

Speaker #4: Just in terms of the impacts on the 26 capital budget , is that the question effectively ? Greg .

Scott Stauth: Just in terms of the impacts on the 2026 capital budget, is that the question effectively, Greg?

Victor Darel: Just in terms of the impacts on the 2026 capital budget, is that the question effectively, Greg?

Speaker #8: Yeah , I mean , so , Victor , like if I look at what , 25 I think it was like , what , 756 million ?

Greg Pardy: Yeah. I mean, Victor, like, if I look at, what, 2025, I think it was like what, $756 million. A good chunk of that I know is North Sea, and then there's PRT in there, and you get cash, you know, you get cash recoveries. I'm just trying to understand, should we be directionally thinking about, you know, a bigger number than, say, $750 next year if you decide to accelerate, or would this all kinda come out in the wash?

Greg Pardy: Yeah. I mean, Victor, like, if I look at, what, 2025, I think it was like what, $756 million. A good chunk of that I know is North Sea, and then there's PRT in there, and you get cash, you know, you get cash recoveries. I'm just trying to understand, should we be directionally thinking about, you know, a bigger number than, say, $750 next year if you decide to accelerate, or would this all kinda come out in the wash?

Speaker #8: A good chunk of that I know is North Sea . And then there's PRT in there and you get , you know , you get cash recoveries .

Speaker #8: But I'm just trying to understand , should we be directionally thinking about , you know , a bigger number than , say , 750 next year ?

Speaker #8: If you decide to accelerate ? Or would this all kind of come out in the wash ?

Speaker #4: Yeah . The way I look at it , Greg , is , is that 2025 coming into 2026 ? The expenditure levels do go up modestly in 26 overall .

Scott Stauth: Yeah. The way I look at it, Greg, is that 2025 coming into 2026, the expenditure levels do go up modestly in 2026 overall. That would be the target, but we're working through that still, and we're trying to plan for our 2026 budget. Overall, when we look at the next five-year period, you do have to remember that the tax recoveries on that expenditure, they're actually weighted first five years. The net increase after tax recovery is fairly modest. We'll see about a 75% tax recovery on next five years' expenditures.

Victor Darel: Yeah. The way I look at it, Greg, is that 2025 coming into 2026, the expenditure levels do go up modestly in 2026 overall. That would be the target, but we're working through that still, and we're trying to plan for our 2026 budget. Overall, when we look at the next five-year period, you do have to remember that the tax recoveries on that expenditure, they're actually weighted first five years. The net increase after tax recovery is fairly modest. We'll see about a 75% tax recovery on next five years' expenditures.

Speaker #4: That would be the target . But we're working through that still and we're trying to plan for our 2026 budget overall . Over .

Speaker #4: You look at the next five year period . You do have to remember that the tax recovery is on that . They're actually weighted first five years .

Speaker #4: So the net increase after tax recovery is fairly modest . We'll see about a 75% tax recovery on next five years expenditure .

Speaker #8: Okay . Very helpful . Thanks very much .

Greg Pardy: Okay. Very helpful. Thanks very much.

Greg Pardy: Okay. Very helpful. Thanks very much.

Speaker #3: Thanks , Greg .

Scott Stauth: Thanks, Greg.

Scott Stauth: Thanks, Greg.

Speaker #4: Thank you .

Dennis Fong: Thank you.

Victor Darel: Thank you.

Speaker #1: Your next question comes from Mino Halshaw of TD Cowan . Your line is already open .

Operator: Your next question comes from Mino Hallschoff of TD Cowen. Your line is already open.

Operator: Your next question comes from Mino Hallschoff of TD Cowen. Your line is already open.

Speaker #9: Good morning everyone , and thanks for taking my question . I'll just put I'm just going to put a very short term lens on things and for my first question , now that we're halfway through the fourth quarter , give or take , how would you describe the operational setup in the end of the year ?

Mino Hallschoff: Good morning, everyone. Thanks for taking my question. I'm just gonna put a very short-term lens on things. For my first question, now that we're halfway through the Q4, give or take, how would you describe the operational setup into the end of the year? Are there any assets that you would flag as having outperformed or underperformed, quarter to date?

Menno Hulshof: Good morning, everyone. Thanks for taking my question. I'm just gonna put a very short-term lens on things. For my first question, now that we're halfway through the Q4, give or take, how would you describe the operational setup into the end of the year? Are there any assets that you would flag as having outperformed or underperformed, quarter to date?

Speaker #9: And are there any assets that you would flag as having outperformed or underperformed a to date ?

Speaker #3: Yeah , it's a good question . At this point in the quarter , all assets are performing as expected . Optimization utilization looks very strong and continuance from what we've seen over the past couple of quarters here .

Scott Stauth: Yeah, it's a good question. At this point in the quarter, all assets are performing as expected. Optimization, utilization looks very strong and continuance from what we've seen over the past couple of quarters here from that perspective of utilization. Nothing really to highlight there, just the assets are performing as we would expect them to perform.

Scott Stauth: Yeah, it's a good question. At this point in the quarter, all assets are performing as expected. Optimization, utilization looks very strong and continuance from what we've seen over the past couple of quarters here from that perspective of utilization. Nothing really to highlight there, just the assets are performing as we would expect them to perform.

Speaker #3: From that perspective of so nothing really to highlight , there , just the assets are performing as we would expect them to perform .

Speaker #9: Terrific . Thanks , Scott . And then you may or may not want to answer this one because it might cannibalize tomorrow a little bit , but second question is on maintenance .

Mino Hallschoff: Terrific. Thanks, Scott. You may or may not wanna answer this one because it might cannibalize tomorrow a little bit. Second question is on maintenance. Maybe you could just remind us of which assets are scheduled for turnaround in 2026. Presumably, Horizon is one of them, but what are the others and how large are these turnarounds expected to be?

Menno Hulshof: Terrific. Thanks, Scott. You may or may not wanna answer this one because it might cannibalize tomorrow a little bit. Second question is on maintenance. Maybe you could just remind us of which assets are scheduled for turnaround in 2026. Presumably, Horizon is one of them, but what are the others and how large are these turnarounds expected to be?

Speaker #9: Maybe you could just remind us of which assets are scheduled for turnaround in 2026 . Presumably horizon is one of them , but what are the others and how large are these turnarounds expected to to be ?

Speaker #3: Yeah , horizon would certainly be the most significant . We likely in the third quarter of next year . So outside of that , it would be our normal routine ones that we'd see every one one facility once every like every five years .

Scott Stauth: Yeah. Horizon would certainly be the most significant, likely in Q3 of next year. Outside of that, it would be our normal, routine ones that we see every 5 years. Our thermal facilities go in for a turnaround. There'll be one next year as well. Nothing too significant and nothing stands out. The only real difference from 25 to 26 would be Horizon.

Scott Stauth: Yeah. Horizon would certainly be the most significant, likely in Q3 of next year. Outside of that, it would be our normal, routine ones that we see every 5 years. Our thermal facilities go in for a turnaround. There'll be one next year as well. Nothing too significant and nothing stands out. The only real difference from 25 to 26 would be Horizon.

Speaker #3: Our thermal facilities go in for a turnaround . So there'll be one next year as well . So nothing to significant and nothing stands out .

Speaker #3: The only real difference from 25 to 26 would be horizon .

Speaker #9: Terrific . Appreciate the confirmation . I'll turn it back .

Mino Hallschoff: Terrific. Appreciate the confirmation. I'll turn it back.

Menno Hulshof: Terrific. Appreciate the confirmation. I'll turn it back.

Speaker #1: Your next question comes from Alexa Patrick of Goldman Sachs . Your line is already open .

Operator: Your next question comes from Alexa Patrick of Goldman Sachs. Your line is already open.

Operator: Your next question comes from Alexa Patrick of Goldman Sachs. Your line is already open.

Speaker #10: Good morning , team , and thank you for taking our question . You know , following the close of several accretive acquisitions , we were curious , what are your updated thoughts on M&A .

Alexa Patrick: Good morning, team, and thank you for taking our question. You know, following the close of several accretive acquisitions, we were curious, what are your updated thoughts on M&A? Can you provide any broader commentary around your capital allocation strategy, balancing dividend growth with share repurchases and potential for further M&A? Thanks.

Alexa Petrick: Good morning, team, and thank you for taking our question. You know, following the close of several accretive acquisitions, we were curious, what are your updated thoughts on M&A? Can you provide any broader commentary around your capital allocation strategy, balancing dividend growth with share repurchases and potential for further M&A? Thanks.

Speaker #10: And then can you provide any broader commentary around your capital allocation strategy, balancing dividend growth with share repurchases and potential for further M&A?

Speaker #10: Thanks .

Speaker #3: Yeah , not a lot to comment , Alexa , on the M&A activity . You know , certainly you you made reference to some recent acquisitions that were opportunistic for us as you probably are aware , we do look at a lot of opportunities of M&A .

Scott Stauth: Yeah. Not a lot to comment, Alexa, on the M&A activity. you know, certainly you made a reference to some recent acquisitions that were opportunistic for us. As you probably are aware, we do look at a lot of opportunities of M&A. We execute on very few, we certainly look at the ones that seem to be most accretive to our operations and generally in close proximity to our core areas. you know, I think that in terms of our allocation, no significant changes there. The allocation policy is pretty straightforward. We don't have any plans to change that relative to M&A activity or not.

Scott Stauth: Yeah. Not a lot to comment, Alexa, on the M&A activity. you know, certainly you made a reference to some recent acquisitions that were opportunistic for us. As you probably are aware, we do look at a lot of opportunities of M&A. We execute on very few, we certainly look at the ones that seem to be most accretive to our operations and generally in close proximity to our core areas. you know, I think that in terms of our allocation, no significant changes there. The allocation policy is pretty straightforward. We don't have any plans to change that relative to M&A activity or not.

Speaker #3: We execute on very few , but we certainly look at the ones that seem to be most accretive to our operations and generally in close proximity to our core areas .

Speaker #3: So , you know , I think that in terms of our allocation , no significant changes there , it's the allocation policy is is pretty straightforward .

Speaker #3: We we we don't have any plans to change that relative to M&A activity or not .

Speaker #10: Okay . That's helpful . And then maybe just as a follow up , if we could dig a little more into kind of your macro outlook , how are you thinking about light heavy differentials from here , particularly as we see OPEC add barrels into the market .

Alexa Patrick: Okay. That's helpful. Maybe just as a follow-up, if we could dig a little more into kind of your macro outlook, how are you thinking about light heavy differentials from here, particularly as we see OPEC add barrels into the market? Any views on mid-cycle differentials and some of the assumptions embedded in that?

Alexa Petrick: Okay. That's helpful. Maybe just as a follow-up, if we could dig a little more into kind of your macro outlook, how are you thinking about light heavy differentials from here, particularly as we see OPEC add barrels into the market? Any views on mid-cycle differentials and some of the assumptions embedded in that?

Speaker #10: And then any views on mid-cycle differentials and some of the assumptions embedded in that ?

Speaker #3: I think we expect to see Alexa , the differentials to be stay in that range of , you know , that 10 to $13 a barrel and then it'll go up and down very depending on Turner activities in the refineries in the United States .

Scott Stauth: I think we expect to see, Alexa, the differentials to be stay in that range of, you know, the $10 to $13 a barrel, and it'll go up and down very dependent on turner activities in the refineries in the United States. I don't really see any of that changing in the near term. As long as we have strong egress out of Western Canada, those differentials will remain in that range. There's still some block capacity on the TMX system, which is very supportive for pricing. We're seeing a strong demand out of Asia for our Canadian heavy crude. That's also very supportive, and we like what we've seen. Essentially, TMX has stabilized the entire Western market here.

Scott Stauth: I think we expect to see, Alexa, the differentials to be stay in that range of, you know, the $10 to $13 a barrel, and it'll go up and down very dependent on turner activities in the refineries in the United States. I don't really see any of that changing in the near term. As long as we have strong egress out of Western Canada, those differentials will remain in that range. There's still some block capacity on the TMX system, which is very supportive for pricing. We're seeing a strong demand out of Asia for our Canadian heavy crude. That's also very supportive, and we like what we've seen. Essentially, TMX has stabilized the entire Western market here.

Speaker #3: So I don't really see any of that , any of that changes changing in the near term . And as long as we have strong egress out of Western Canada , those differentials will remain in that range .

Speaker #3: And so there's still some flood capacity on the TMX system, which is very supportive for pricing. We're seeing strong demand in Asia for our Canadian heavy crude.

Speaker #3: out of So

Speaker #3: That's also very supportive . And we like what we what we've seen . Essentially TMX has stabilized the entire Western market here . that's how I would sum it up , summarize it up for you okay .

Scott Stauth: That's how I would summarize it up for you.

Scott Stauth: That's how I would summarize it up for you.

Speaker #10: Great . Well we'll turn it back . Thank you so much .

Alexa Patrick: Okay, great. Well, we'll turn it back. Thank you so much.

Alexa Petrick: Okay, great. Well, we'll turn it back. Thank you so much.

Speaker #3: Thank .

Scott Stauth: Thank you.

Scott Stauth: Thank you.

Speaker #11: You .

Speaker #1: There are no further questions at this time . I would hand over the call to Lance Casson for

Operator: There are no further questions at this time. I would hand over the call to Lance Casson for closing remarks. Please go ahead.

Operator: There are no further questions at this time. I would hand over the call to Lance Casson for closing remarks. Please go ahead.

Speaker #1: closing remarks . Please go ahead .

Speaker #2: Thank you . Operator . Excuse me . Thanks , everyone , for joining our call this morning , and we look forward to seeing you all tomorrow at our Investor Open House or on the webcast , if you have any questions , please call .

Scott Stauth: Thank you, operator. Excuse me. Thanks, everyone, for joining our call this morning. We look forward to seeing you all tomorrow at our investor open house or on the webcast. If you have any questions, please give a call.

Lance Casson: Thank you, operator. Excuse me. Thanks, everyone, for joining our call this morning. We look forward to seeing you all tomorrow at our investor open house or on the webcast. If you have any questions, please give a call.

Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation, and you may now disconnect.

Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation, and you may now disconnect.