Canadian Natural Resources Limited · TSX:CNQ
Canadian Natural Resources — Shareholder Meeting (May 2003)
18 slides from Canadian Natural Resources's shareholder meeting presentation, May 8, 2003
Slide 1: Annual General Meeting of Shareholders
Annual General Meeting of Shareholders May 8, 2003 May 8, 2003 Annual General Meeting of Shareholders The Premium Value, Defined Growth Independent Canadian Natural’s Mission Statement To develop people to work together to create value for the Company’s shareholders by doing it right with fun and in
Slide 2: Objectives Defined / A History of Value Creation
Annual General Meeting of Shareholders May 8, 2003 Objectives Defined • Value creation on “per share” basis • Production • Reserves • Cash flow • Net asset value • Returns on employed capital • Before future tax • EBITDA CNQ Our Goal is 10% p.a. TSX/NYSE Rolling Average Value Growth A History of Val
Slide 3: A History of Value Creation: Production and Cash Flow
Annual General Meeting of Shareholders May 8, 2003 A History of Value Creation Daily Production per 1,000 shares (boed) 4.0 3.5 3.0 CA GR 2.5 19% 2.0 1.5 1.0 0.5 0.0 1995 1996 1997 1998 1999 2000 2001 2002 Gas Oil CNQ Consistent Production Growth TSX/NYSE A History of Value Creation Cash Flow per sh
Slide 4: Net Asset Value and Shareholder Return
Annual General Meeting of Shareholders May 8, 2003 A History of Value Creation Pretax Net Asset Value per share $100 $80 R $60 CAG 23% $40 $20 $0 Based upon PV10 pretax reserve value 1995 1996 1997 1998 1999 2000 2001 2002 including 50% of probable reserve value as described in Annual Report. Undeve
Slide 5: Track Record of Value Creation / 2002 Highlights
Annual General Meeting of Shareholders May 8, 2003 Track Record of Value Creation • Share price CAGR of 20% Monthly Closing Share Price from 1992 to 2002 (Cdn $) $60 • Market cap. increased from Cdn$1.6bn in 1992 to $50 Cdn$6.3bn in 2002 GR $40 CA • Current annual dividend of % 20 Cdn$0.60 $30 • Lis
Slide 6: 2002 Financial and Operating Highlights
Annual General Meeting of Shareholders May 8, 2003 2002 Financial Highlights $millions (except per share amounts) 2002 2001 Oil and natural gas gross revenue 4,083 3,589 Net earnings* 570 643 Per share - basic 4.46 5.30 Cash flow* 2,254 1,920 Per share - basic 17.63 15.83 Long-term debt 4,074 2,669
Slide 7: First Quarter Highlights / Financial Strength
Annual General Meeting of Shareholders May 8, 2003 First Quarter Highlights Q1/03 Q1/02 Daily production Crude oil and natural gas liquids (bbl) 237.6 188.4 Natural gas (mmcf) 1,310 1,053 Barrels of oil equivalent (mboe) 456.0 364.0 Net earnings ($MM) 428 99 Per share 3.19 0.81 Cash flow ($MM) 906 3
Slide 8: Company Overview: Operations Defined Plan / Our Strategy
Annual General Meeting of Shareholders May 8, 2003 Company Overview: Operations Defined Plan CNQ The Premium Value, TSX/NYSE Defined Growth Independent Our Strategy • Capital allocation to maximize value • Defined growth/value enhancement plans by product/basin • Balance • Products • Project time ho
Slide 9: Overview of Global Operations / North American Overview
Annual General Meeting of Shareholders May 8, 2003 Overview of Global Operations Canada Liquids Gas BOE % of Total 2003B Production (mboe/d) 175-185 208-214 385-399 84% 2002 Proved Reserves (mmboe) 665 508 1,173 78% North Sea Liquids Gas BOE % of Total 2003B Production (mboe/d) 55-60 5-6 55-66 13% 2
Slide 10: North Alberta Core Area / Natural Gas Growth Prospects
Annual General Meeting of Shareholders May 8, 2003 North Alberta Core Area • Canadian Natural BC AB SK existing core area • 365 mmcf/d production • 2.5 million undeveloped acres • RAX additions to core area • 150 mmcf/d production • 1 million undeveloped acres CNQ RAX Core Area TSX/NYSE Fits Well Wi
Slide 11: Natural Gas Growth Prospects / North American Gas Future Plan
Annual General Meeting of Shareholders May 8, 2003 Natural Gas Growth Prospects Northeast B.C. BC AB SK • 1.5 million acres of net undeveloped land • 71 facilities/1,955 mi pipe • Average decline 21% • 500 expected locations • New reserve potential • Helmet > 0.5 Tcf potential • Fort St. John > 0.2
Slide 12: North American Liquids Resource Base and Future Plan
Annual General Meeting of Shareholders May 8, 2003 North American Liquids Resource Base Inventory 2003 Resource Plans Potential (mmbbl) Primary Heavy 1,000+ Locs 265 wells 110 ~65,000 bbl/d Thermal Heavy Primrose 48 HP wells 700 ~37,000 bbl/d Gregoire/Horizon 2,000 Pelican Lake 50-150 Locs 40 wells
Slide 13: Horizon Oil Sands Project Overview and Future Plan
Annual General Meeting of Shareholders May 8, 2003 Horizon Oil Sands Project Overview • Reserves • 6 billion bbl recoverable oil (unbooked) • Production CNRL KOCH SHELL HORIZON • 2008 110,000 bbl/d SCO SYNCRUDE AURORA • 2010 155,000 bbl/d SCO SHELL MUSKEG SUNCOR • 2012 232,000 bbl/d SCO FIREBAG SYNC
Slide 14: International Core Areas / North Sea
Annual General Meeting of Shareholders May 8, 2003 International Core Areas Murchison Hub Côte d’Ivoire Ninian Hub CI-26 CI-102 Northern WI 58.67% WI 72% North Sea Espoir Banff /Kyle Canadian Natural Lands Baobab CI-400 WI 90% CI-40 WI 61% Central North Sea Oil Field Gas Field CI-103 Prospect WI 35%
Slide 15: Côte d'Ivoire / Angola
Annual General Meeting of Shareholders May 8, 2003 Côte d’Ivoire • Espoir • Develop upper-east reservoir in Côte d’Ivoire mid-2003 • 5,000 bbl/d, net CI-26 CI-102 • West Espoir potential WI 58.67% WI 72% Espoir • Drill Acajou in H1/03 Canadian Natural • Baobab Baobab Lands • Estimate 200 mmbbls CI-4
Slide 16: International Plan Defined / Guidance
Annual General Meeting of Shareholders May 8, 2003 International Plan Defined • Near/Mid/Long-term - North Sea • Exploitation opportunities • Control core assets • Add value via cost reduction • Acquisition opportunities • Near/Mid/Long-term - Offshore West Africa • Continue Espoir development • Dev
Slide 17: Low Risk Profile / Investment Recap
Annual General Meeting of Shareholders May 8, 2003 Low Risk Profile • 90% independent evaluation of reserves • Clean balance sheet • Exploitation focus • Commodity production balance reduces sole price risk exposure • Future growth owned and controlled • 96% of production in G7 Countries, other prod
Slide 18: The Premium Value, Defined Growth Independent
Annual General Meeting of Shareholders May 8, 2003 The Premium Value, Defined Growth Independent 18
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