Canadian Natural revises stock option plan for shareholder approval

Published 15/04/2025, 23:14
Canadian Natural revises stock option plan for shareholder approval

CALGARY, Alberta - Canadian Natural Resources Limited (TSX: CNQ) (NYSE: CNQ), one of Canada’s leading crude oil and natural gas production companies with a market capitalization of $57.6 billion and a robust dividend yield of 6%, announced an amendment to its Stock Option Plan, necessitating shareholder approval for any future changes to the amendment provisions. According to InvestingPro data, the company has maintained dividend payments for 25 consecutive years, demonstrating strong financial stability. This clarification aligns with the disclosure on page 16 and Schedule D of the company’s management information circular dated March 19, 2025.

The company’s shareholders will vote on the approval of the unallocated stock options under the modified Plan at the annual and special meeting scheduled for May 8, 2025, which coincides with the next earnings release date. Trading at a P/E ratio of 13.3 and currently showing signs of being undervalued according to InvestingPro analysis, Canadian Natural has expressed confidence that the amendment adheres to Institutional Shareholder Services (ISS) policies and has recommended shareholders to vote in favor of the proposal.

Canadian Natural operates primarily in Western Canada, with additional activities in the U.K. North Sea and Offshore Africa. The amendment is part of the company’s ongoing efforts to maintain transparent and responsible corporate governance practices.

The information provided in this announcement is based on a press release statement from Canadian Natural Resources Limited.

In other recent news, Canadian Natural Resources Limited reported strong financial results for the fourth quarter of 2024, with an annual adjusted funds flow of $14.9 billion and a return of approximately $7.1 billion to shareholders. The company achieved record production levels, particularly in oil sands mining and upgrading, with over 1 million barrels of liquids produced daily. Additionally, Canadian Natural Resources’ capital program came in under budget by approximately $100 million, showcasing its operational efficiency. The company ended the quarter with $4.7 billion in liquidity, reflecting its robust financial health.

In analyst updates, RBC Capital maintained an Outperform rating on Canadian Natural Resources, citing the company’s effective management and ability to generate free cash flow as key strengths. RBC Capital also reaffirmed a price target of Cdn$63.00, highlighting the company’s low-cost structure and agility in capital allocation. Meanwhile, Evercore ISI upgraded Canadian Natural Resources from In Line to Outperform, maintaining a price target of Cdn$58.00. The analyst noted the company’s consistent management approach and diversified portfolio as significant advantages.

These developments underscore Canadian Natural Resources’ strong financial performance and strategic positioning in the energy sector. The company’s ability to adapt to market conditions and maintain a flexible capital allocation strategy has been recognized as a cornerstone of its success. Despite challenges such as potential tariffs and acquisition-related debt, analysts express confidence in the company’s long-term growth prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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