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Canadian Natural president Tim McKay to retire, Scott Stauth to be promoted to role

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CALGARY — Canadian Pure Sources Ltd. president Tim McKay will retire subsequent yr after a five-year management stint that coincided with the Calgary-based firm surpassing $100 billion in market worth.

CNRL, Canada’s largest oil and gasoline producer by market capitalization, made the succession announcement Thursday — the identical day it raised its quarterly dividend and reported a third-quarter revenue of $2.34 billion, down from $2.81 billion a yr in the past.

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McKay, an engineer who joined the corporate in 1990 and was promoted to president in 2018 to exchange outgoing president Steve Laut, will assume the function of vice-chair on Feb. 28, 2024.

CNRL’s new president can be Scott Stauth, the corporate’s present chief working officer of oilsands. As vice-chair, McKay will assist with the administration transition till his retirement subsequent summer season.

Firm founder and billionaire Murray Edwards stays govt chair.

Like all Canadian oil and gasoline producers, CNRL has benefited from the final two years of robust commodity costs. In 2022, the corporate grew to become the first-ever Canadian publicly traded oil and gasoline agency to surpass a $100-billion market cap, and CNRL continues to be a favorite among the many funding neighborhood for its historical past of robust efficiency and wholesome returns to shareholders.

On a convention name Thursday, McKay stated shareholders shouldn’t count on important modifications after the introduced C-suite modifications.

“I don’t actually see any actual change to our enterprise,” he stated. “I believe in case you have a look at our succession (plan), all people’s nicely ingrained with our firm and understands all of the alternatives that we’ve.”

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Within the third quarter, CNRL broke its all-time quarterly manufacturing quantity for each liquids and pure gasoline, at roughly 1.03 million barrels per day and a pair of.1 million cubic toes per day.

Whereas McKay acknowledged that there have been numerous main oilpatch offers in each the U.S. and Canada not too long ago, and that the business will seemingly see additional consolidation within the months to come back, he stated CNRL shouldn’t be depending on acquisitions so as to develop its output.

“Consolidation may occur right here in Canada as nicely. However you already know, the important thing for us, anyway, is that we’ve an enormous reserve,” McKay stated.

“We don’t must do acquisitions to create or refine our reserves. We’ve got that half within the bag. To me, we sit again and do what we do greatest.”

Like different Canadian oil producers, CNRL is eagerly awaiting the start-up of the Trans Mountain pipeline. The corporate is anticipated to ship a number of hundred thousand barrels per day on the pipeline, which can give Alberta oil producers extra export capability to the West coast.

The extra export capability can be anticipated to have a constructive affect on the Western Canada Choose differential, which is the time period for the worth low cost Canadian heavy oil producers usually have to soak up on their product partially as a result of lack of pipeline egress.

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On Thursday, McKay stated the corporate expects to be known as on to start filling the pipeline quickly.

“Proper now we don’t know if that may occur right here within the fourth quarter, or early subsequent yr,” he stated.

“If it occurs earlier, between now and the tip of the yr, that’s truly very constructive within the sense that ought to begin to tighten the WCS differential.”

CNRL stated Thursday it’s going to now pay a quarterly dividend of $1 per share, up from 90 cents.

The corporate’s revenue amounted to $2.13 per diluted share for the quarter ended Sept. 30, down from $2.49 per diluted share a yr earlier.

Income for the quarter totalled $9.90 billion, down from $10.46 billion in the identical quarter final yr.

On an adjusted foundation, the corporate says it earned $2.59 per diluted share in its most up-to-date quarter, down from $3.09 per diluted share a yr in the past. Analysts on common had anticipated an adjusted revenue of $2.39 per share and $9.55 billion in income, in line with estimates compiled by monetary markets information agency Refinitiv.

This report by The Canadian Press was first printed Nov. 2, 2023.

Firms on this story: (TSX:CNQ)

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