Canadian Natural beats profit estimates on higher oil prices, output (updated)

Cenovus Energy Incorporation

Yesterday 09:47

Updates after conference call; adds bylines and bullets; adds CEO comment and context in paragraphs 6-11
Company encouraged by developments in Canada, including fast-tracking of proposed West Coast pipeline
Company will not assure November 15 date for Pathways agreements with governments
Jackfish, Pike 2 and Jackpine expansion remain paused pending binding deals
By Varun  Sahay and Amanda Stephenson
Nov 5 (Reuters) - Canadian Natural Resources CNQ.TO beat analysts' estimate for third-quarter profit on Thursday, helped by higher crude prices and stronger production.
Higher global oil prices have provided a favourable backdrop for Canadian oil sands producers, whose long-life reserves help shield them from volatility, even as maintenance and operational constraints limit production growth.
Canadian Natural's realized prices for exploration and production liquids rose to C$95.93 per barrel in the quarter from C$72.57 a year earlier. Output grew to 1.65 million barrels of oil equivalent per day (boepd) from 1.62 million boepd a year earlier. 
Canadian Natural is the country's largest oil and gas producer. 
The Calgary, Alberta-based company posted an adjusted profit of C$1.65 per share for the three months ended September 30, compared with analysts' average estimate of C$1.45 per share, according to data compiled by LSEG.
On a conference call with analysts, CEO Scott Stauth said Canadian Natural was encouraged by recent developments supporting the long-term competitiveness of Canada's energy sector, including the federal government's move last month to fast-track approvals for a new proposed crude export pipeline to the West Coast. 
But he did not say whether oil sands producers would reach definitive agreements by mid-November with the Alberta and federal governments on carbon pricing, financial support and permitting of projects. The industry and both levels of government have been negotiating for months to reach  final agreements that would pave the way for the Pathways project, a proposed ​CO2 transportation pipeline and storage hub that Prime Minister Mark Carney has said must be built alongside a new oil pipeline.
"It's more about focusing on ensuring that we get it right than focusing on a particular date to get it completed and signed," Stauth said.
The CEOs of Imperial Oil and Suncor, on separate conference calls this week and last, also declined to say whether the Nov. 15 target date for definitive agreements would be met.
In August, Canadian Natural said it would not move ahead with any ‌mid- to long-term oil sands expansion projects until those binding legal agreements were signed. 
The company's roughly C$650 million, 30,000-barrel-per-day Jackfish project and ​roughly C$2.5 billion, 70,000-bpd Pike 2 project therefore remain on hold, as does the ​proposed 150,000-bpd Jackpine mine expansion. 
     

(Reporting by Amanda Stephenson in Calgary and Varun Sahay in Bengaluru; Editing by Jonathan Ananda, Shilpi Majumdar and Sanjeev  Miglani)
((amanda.stephenson@thomsonreuters.com))