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THIRD QUARTER REPORT Canadian Natural NINE MONTHS ENDED SEPTEMBER 30 , 2021 TSX & NYSE : CNQ CANADIAN NATURAL RESOURCES LIMITED 2021 THIRD QUARTER RESULTS Commenting on the Company's third quarter 2021 results , Tim McKay , President of Canadian Natural stated " Our diverse product mix is a competitive advantage , as we can allocate capital to the highest return projects , without being reliant on any one commodity . Our effective and efficient operations combined with disciplined capital allocation generates significant free cash flow , which delivers substantial shareholder returns through our sustainable dividend and ongoing share repurchases . Our world class long life low decline assets , which have low maintenance capital requirements relative to the size and quality of the assets , delivered top tier Q3 / 21 operational and financial results with average production volumes of approximately 1,238 MBOE / d achieved in the quarter , representing increases of 11 % and 8 % over Q3 / 20 and Q2 / 21 levels respectively . Our strong operational results during Q3 / 21 delivered robust quarterly adjusted funds flow of approximately $ 3.6 billion . After our disciplined capital program and dividend , the Company generated quarterly free cash flow of approximately $ 2.2 billion . Environmental , Social and Governance ( " ESG " ) performance remains a priority . We continue to invest in technologies and innovations designed to improve our environmental performance and reduce our environmental footprint . As previously announced , the Oil Sands Pathways initiative to achieve net zero greenhouse gas emissions by 2050 is an unprecedented initiative by the Canadian energy industry . Canadian Natural and Pathways alliance members are developing several technology pathways that when implemented will strengthen our leading ESG performance through meaningful emissions reductions while maintaining jobs in the oil sands sector and creating thousands of new construction and permanent jobs in the energy and cleantech industries . Collaboration with the federal and Alberta governments on this initiative will be critical for Canada to achieve its climate goals . " Canadian Natural's Chief Financial Officer , Mark Stainthorpe , added " During the third quarter of 2021 our robust business model delivered strong net earnings of over $ 2.2 billion and adjusted net earnings of approximately $ 2.1 billion . Our diversified portfolio of world class assets combined with effective and efficient operations in a strong commodity price environment , allowed us to continue to enhance returns to shareholders by repurchasing shares and reducing debt at a faster rate than originally targeted . The Company's balance sheet continues to be a priority and was further strengthened during the quarter with ending net debt at approximately $ 15.9 billion , a reduction of approximately $ 2.3 billion compared to Q2 / 21 . We remain on track to meet our full year 2021 capital investment target of approximately $ 3.48 billion . Our commitment to returns to shareholders has been significant totaling $ 3.1 billion year to date through dividends and share repurchases . Subsequent to quarter end the Board of Directors has approved a 25 % increase to our quarterly dividend to $ 0.5875 per share , payable on January 5 , 2022. The increased dividend clearly demonstrates the confidence that the Board of Directors have in the sustainability of our business model , the strength of our balance sheet and the Company's effective and efficient operations supported by our robust , long life low decline asset base and associated low maintenance capital requirements . With this increase , 2022 will mark the 22nd consecutive year of dividend increases for the Company , and this 25 % increase from our previous quarterly dividend is in excess of our historical dividend compound annual growth rate of 20 % over the last 22 years . Effective July 1 , 2021 our free cash flow allocation policy authorized management to increase returns to shareholders through accelerated share repurchases under the Company's Normal Course Issuer Bid ( " NCIB " ) by targeting the repurchase of approximately 1 % of shares outstanding per quarter . This policy further states that once the Company reaches an absolute debt level of $ 15 billion , currently targeted to occur in Q4 / 21 , 50 % of free cash flow will be targeted