CNQ Stock Forecast & Price Target

Canadian Natural Resources has successfully increased its gross AOSP production by approximately 50,000 barrels per day while significantly reducing unit costs from around $38 per barrel to about $25 per barrel. This ongoing operational and financial improvement strategy is expected to offset cost pressures and enhance capacity and margins across its portfolio. The company's position as the largest oil producer and second-largest natural gas producer in Canada, combined with its diversified production operations, supports a robust financial outlook.

Canadian Natural Resources is focused on reducing its net debt, aiming for approximately $16.7 billion by the end of 2025, which reflects a decrease of about $2 billion from the forecasted year-end 2024 level of $18.69 billion. Despite ongoing free cash flow generation that supports this debt reduction, the company faces inherent risks associated with fluctuating commodity prices and the external factors impacting its export market, predominantly the US. Additionally, the high levels of existing net debt may limit financial flexibility and increase vulnerability to adverse market conditions, contributing to a negative outlook for the stock.