Canadian Natural Resources Limited Announces Normal Course Issuer Bid
Rhea-AI Summary
Canadian Natural Resources (CNQ) has announced a new Normal Course Issuer Bid (NCIB) program, allowing the company to purchase and cancel up to 178,738,237 shares (10% of public float) between March 13, 2025, and March 12, 2026. The daily purchase limit on TSX is set at 2,835,635 shares.
The company has outlined its free cash flow allocation strategy:
- 60% to shareholder returns and 40% to balance sheet until net debt reaches $15 billion
- 75% to shareholder returns and 25% to balance sheet when net debt is between $12-15 billion
- 100% to shareholder returns when net debt is at or below $12 billion
Under its previous NCIB program, CNQ purchased 52,380,000 common shares at a weighted average price of $48.35. The company plans to implement an automatic share purchase plan (ASPP) on March 13, 2025, facilitating share repurchases during blackout periods.
Positive
- Significant share buyback program of up to 178.7M shares (10% of float)
- Strong shareholder return policy with up to 100% of free cash flow allocation
- Implementation of ASPP ensures continuous buyback execution during blackout periods
- Demonstrated commitment to capital returns with previous NCIB completion
Negative
- Share buybacks contingent on net debt levels
- Daily purchase limitations may restrict buyback execution speed
News Market Reaction
On the day this news was published, CNQ gained 1.23%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Calgary, Alberta--(Newsfile Corp. - March 10, 2025) - Canadian Natural Resources Limited (TSX: CNQ) (NYSE: CNQ) ("Canadian Natural") announced today that the Toronto Stock Exchange ("TSX") has accepted notice filed by Canadian Natural of its intention to make a Normal Course Issuer Bid ("NCIB") through the facilities of the TSX or other alternative Canadian trading systems. Purchases may also be made through the facilities of the New York Stock Exchange.
The notice provides that Canadian Natural may, during the 12 month period commencing March 13, 2025 and ending March 12, 2026, purchase for cancellation up to 178,738,237 shares, being
Canadian Natural targets to manage the allocation of free cash flow on a forward looking annual basis, while managing working capital and cash management as required. In October 2024, the Board of Directors adjusted the allocation of free cash flow as follows: (i)
In connection with the NCIB, Canadian Natural expects to enter into an automatic share purchase plan ("ASPP") in relation to purchases made by it under the NCIB. The ASPP has been pre-cleared by the TSX and is expected to be implemented on March 13, 2025. The ASPP is intended to facilitate repurchases of common shares at times under the NCIB when Canadian Natural would ordinarily not be permitted to make purchases due to regulatory restrictions or customary self-imposed blackout periods. Before the commencement of any particular trading black-out period, Canadian Natural may, but is not required to, instruct its designated broker to make purchases of common shares under the NCIB during the ensuing black-out period in accordance with the terms of the ASPP. Such purchases will be determined by the designated broker at its sole discretion based on purchasing parameters set by Canadian Natural in accordance with the rules of the TSX, applicable securities laws and the terms of the ASPP. All purchases of common shares made under the ASPP will be included in determining the number of common shares purchased under the NCIB. The ASPP will terminate on March 6, 2026. The ASPP constitutes an "automatic securities purchase plan" under applicable Canadian securities law. Outside of pre-determined blackout periods, common shares may be purchased under the NCIB based on management's discretion, in compliance with TSX rules and applicable securities laws.
As of February 28, 2025, after giving effect to the two for one common share split effective for shareholders of record as of market close on June 3, 2024 (the "Share Split"), Canadian Natural purchased 52,380,000 of its common shares at a weighted average price of
Canadian Natural is a senior crude oil and natural gas production company, with continuing operations in its core areas located in Western Canada, the U.K. portion of the North Sea and Offshore Africa.
| CANADIAN NATURAL RESOURCES LIMITED T (403) 517-6700 F (403) 517-7350 E ir@cnrl.com 2100, 855 - 2 Street S.W. Calgary, Alberta, T2P 4J8 www.cnrl.com | ||
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| SCOTT G. STAUTH President MARK A. STAINTHORPE Chief Financial Officer LANCE J. CASSON Manager, Investor Relations Trading Symbol - CNQ Toronto Stock Exchange New York Stock Exchange |
Certain information regarding the Company contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. The Company does not undertake to update forward-looking statements except as required by applicable securities laws. Refer to our website for detailed forward-looking statements and notes regarding Non-GAAP and Other Financial Measures at www.cnrl.com.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/244031
FAQ
How many shares can Canadian Natural Resources (CNQ) buy back under the new NCIB program?
What is CNQ's daily purchase limit on the TSX under the new buyback program?
How does Canadian Natural Resources allocate its free cash flow?
What was CNQ's share repurchase performance under the previous NCIB program?
When will CNQ implement its automatic share purchase plan (ASPP)?
