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Written by Jitendra Parashar at The Motley Fool Canada
If you’ve been looking for a reliable TSX energy company, Canadian Natural Resources (TSX:CNQ), or CNQ stock, is likely already on your watchlist. While it may not always be a very exciting stock to own, it has maintained a solid track record of rewarding patient investors with attractive dividends and handsome capital gains for decades.
Even though CNQ stock hasn’t surged lately as some investors expected, its earnings and guidance updates continue to show strength. That gap between its operational performance and share price movement is worth exploring. In this article, I’ll talk about CNQ stock, review its latest financial performance, and explain whether this energy giant still makes sense as a buy, a hold, or a sell right now.
This Calgary-based crude oil and natural gas producer has operations across Western Canada, the United Kingdom portion of the North Sea, and Offshore Africa.
After rallying by nearly 200% over the last five years, CNQ stock is currently trading around $45 per share, giving it a market cap of about $93.9 billion. It rewards investors with a quarterly dividend and offers an annualized dividend yield of roughly 5.2% at the current market price.
In the third quarter of 2025, Canadian Natural delivered record production of roughly 1.6 million barrels of oil equivalent per day. With the help of accretive acquisitions and organic growth across oil sands, liquids, and natural gas assets, the company’s total quarterly production rose 19% YoY (year-over-year). As a result, its adjusted net earnings reached $1.8 billion, while adjusted funds flow came in at $3.9 billion.
Although its reported net earnings were lower due to a non-cash charge tied to higher future abandonment cost estimates in the North Sea, CNQ’s operating performance remained solid.
Canadian Natural’s revenue rose nearly 7% YoY in the latest quarter, helped by higher production volumes. Its adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed more than 15% YoY due mainly to improved operating efficiency and strong performance from oil sands mining and upgrading assets. Similarly, the firm’s EBITDA margin also expanded compared to last year, supported by industry-leading operating costs at key facilities.
Interestingly, the Canadian oil and gas giant returned about $1.5 billion through dividends and share repurchases in the most recent quarter alone. The company has now grown its dividend for 25 consecutive years, clearly highlighting its reputation as a dependable income stock.
Taking the bigger picture into account can clarify if CNQ stock is best seen as a buying opportunity, something to hold, or a stock to move on from.
For 2026, Canadian Natural has outlined an operating capital budget of about $6.3 billion and is targeting production between 1.59 and 1.65 million barrels of oil equivalent per day. That points to roughly 3% production growth at the midpoint, with liquids making up the majority of output. The company is also beginning engineering work on future oil sands and thermal projects that could support value creation beyond 2026.
With its long life, low decline asset base, disciplined capital allocation, and strong free cash flow generation, CNQ stock appears well-positioned for investors seeking income and stability. Overall, I’d consider it a hold for those already in, while investors looking for dependable income could still find value at current levels, even if it may not be a great stock for short-term trading.
The post CNQ Stock: Buy, Hold, or Sell Now? appeared first on The Motley Fool Canada.
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Fool contributor Jitendra Parashar has positions in Canadian Natural Resources. The Motley Fool recommends Canadian Natural Resources. The Motley Fool has a disclosure policy.
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