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Canadian Natural Resources to drill fewer natgas wells as rates decrease

Canadian Natural Resources, the country's largest oil and gas manufacturer, said on Thursday it would drill less dry natural gas well this year than originally prepared due to the decline in costs.

The country's natgas costs slumped to their most affordable in more than two years in the July-September quarter as storage levels in Alberta reached complete capability due to weak demand throughout North America.

Months of subdued costs had actually already prompted a variety of significant manufacturers, including Canadian Natural, to shut in or delay finishing natgas wells.

In August, Canadian Natural said it would delay completing some new wells due to weak market conditions. It now stated it plans to drill a net total of 74 wells in 2024, 17 fewer than its original target for the year.

However, it preserved its forecast of natgas production of 2.12-2.23 billion cubic feet each day (bcfpd) for the year.

That was regardless of a 4.7% drop in natgas production to 2.05 bcfpd in the most recent 3rd quarter, which led to a 2% drop in general production to 1.36 million barrels of oil equivalent per day (boepd).

Canadian Natural's natgas recognized cost plunged 55.5% to C$ 1.25 per thousand cubic feet in the quarter, while understood rates for synthetic petroleum fell 7% to C$ 100.93 per barrel.

Global oil prices dropped during the quarter, harmed by slow demand from top importer China and oversupply issues.

The Calgary, Alberta-based company posted adjusted internet earnings from operations of 97 Canadian cents per share for the quarter ended Sept. 30.

That was greater than analysts' average price quote of 90 Canadian cents per share, according to data assembled by LSEG.

(source: Reuters)