Institutional Investor Open House PREMIUM VALUE. DEFINED GROWTH. INDEPENDENT.

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1 Institutional Investor Open House PREMIUM VALUE. DEFINED GROWTH. INDEPENDENT.

2 Presenter Biographies: N. Murray Edwards Chairman Mr. Edwards has been a Director of the Company since 1988, when he helped refinance the Company. He is a leading investor in and a Managing Director and Executive Chairman of Canadian Natural Resources Limited, Ensign Energy Services Inc. and Magellan Aerospace Corporation. After moving to Calgary in 1983, he became a lawyer and later a Partner with Burnet, Duckworth & Palmer, a Calgary based law firm. Mr. Edwards holds a Bachelor of Commerce degree from the University of Saskatchewan with Great Distinction and a Bachelor of Laws degree from the University of Toronto with Honours. Steve W. Laut President Mr. Laut is the President of Canadian Natural Resources, a position he has held since Mr. Laut joined Canadian Natural in 1991 as Senior Exploitation Engineer. He was appointed Vice-President Operations in 1996 and was appointed Senior Vice-President in Mr. Laut was appointed Executive Vice-President in 2001 and became Chief Operating Officer in 2003, assuming responsibility for all aspects of exploration, exploitation and production for the Company. In 2005, the role of President was added to his responsibilities and in 2006 he was appointed to the Board of Directors. Mr. Laut assumed the sole responsibility of President in Prior to joining the Company, Mr. Laut held various positions as Reservoir Engineer and Production Engineer with Poco Petroleum, Adams Pearson, Petro-Canada, Dome Petroleum and Unocal. Mr. Laut holds a Bachelor of Science degree in Mechanical Engineering from the University of Calgary. Tim S. McKay Chief Operating Officer Mr. McKay joined Canadian Natural in 1990 as a Production Engineer and was appointed Vice-President, Production, in He was named Senior Vice-President, Production, in 2001 and, Senior Vice-President, Operations in In 2010 Mr. McKay assumed the role of Chief Operating Officer, responsible for all aspects of exploration, exploitation and production in the Company. He was named Executive Vice-President and Chief Operating Officer in March Prior to joining the Company, Mr. McKay worked as a Production Engineer with EOG Canada. Mr. McKay holds a Bachelor of Science degree in Petroleum Engineering from the University of Alberta. Lyle G. Stevens Executive Vice-President, Canadian Conventional Mr. Stevens has worked for Canadian Natural since 1995, joining the Company as an Exploitation Engineer. He was promoted to Vice-President, Exploitation in 1997 and to Senior Vice-President, Exploitation in 2003 and to Executive Vice President, Canadian Conventional in Prior to joining the Company, Mr. Stevens held various positions with Husky Energy, CN Exploration and the Alberta Oil Sands Technology and Research Authority. He has more than 35 years of experience in the oil and gas industry specializing in reservoir engineering and in situ oil sands production. Mr. Stevens holds a Bachelor of Science degree in Mechanical Engineering from the University of Alberta and a Masters of Engineering degree in Mineral Engineering (Oil Sands) from the same institution. Corey B. Bieber Chief Financial Officer & Senior Vice-President, Finance Mr. Bieber has worked for Canadian Natural since 2001 when he joined the Company as Treasurer, also managing the Investor Relations program. Mr. Bieber was named Vice-President in 2005 and became a member of Canadian Natural s Management Committee in 2009 and was named Chief Financial Officer & Senior Vice-President Finance in March Prior to joining Canadian Natural, Mr. Bieber held various financial positions within Nexen and Enbridge. He has 30 years of experience in the oil and gas industry, with an emphasis on strategic financial analysis and disclosure. Mr. Bieber holds a Bachelor of Commerce degree and a Chartered Accountant Designation.

3 INSTITUTIONAL INVESTOR OPEN HOUSE PREMIUM VALUE. DEFINED GROWTH. INDEPENDENT. Agenda Presentations Introduction Mark Stainthorpe Strategy Steve Laut Asset Overview Lyle Stevens Effective & Efficient Operations Capital Allocation Tim McKay Finance Corey Bieber Summary Steve Laut Senior Management Q&A 2016 INVESTOR OPEN HOUSE 2 1

4 Forward Looking Statements Certain statements relating to Canadian Natural Resources Limited (the Company ) in this document or documents incorporated herein by reference constitute forward-looking statements or information (collectively referred to herein as forward-looking statements ) within the meaning of applicable securities legislation. Forward-looking statements can be identified by the words believe, anticipate, expect, plan, estimate, target, continue, could, intend, may, potential, predict, should, will, objective, project, forecast, goal, guidance, outlook, effort, seeks, schedule, proposed or expressions of a similar nature suggesting future outcome or statements regarding an outlook. Disclosure related to expected future commodity pricing, forecast or anticipated production volumes, royalties, operating costs, capital expenditures, income tax expenses, and other guidance provided throughout this presentation constitute forward-looking statements. Disclosure of plans relating to and expected results of existing and future developments, including but not limited to the Horizon Oil Sands operations and future expansion, Septimus, Primrose thermal projects, Pelican Lake water and polymer flood project, the Kirby Thermal Oil Sands Project, construction of the proposed Keystone XL Pipeline from Hardisty, Alberta to the US Gulf coast, the proposed Kinder Morgan Trans Mountain pipeline expansion from Edmonton, Alberta to Vancouver, British Columbia, the proposed Energy East pipeline from Hardisty to Eastern Canada, and the construction and future operations of the North West Redwater bitumen upgrader and refinery also constitute forward-looking statements. This forward-looking information is based on annual budgets and multi-year forecasts, and is reviewed and revised throughout the year as necessary in the context of targeted financial ratios, project returns, product pricing expectations and balance in project risk and time horizons. These statements are not guarantees of future performance and are subject to certain risks and the reader should not place undue reliance on these forward-looking statements as there can be no assurances that the plans, initiatives or expectations upon which they are based will occur. In addition, statements relating to reserves are deemed to be forward-looking statements as they involve the implied assessment based on certain estimates and assumptions that the reserves described can be profitably produced in the future. There are numerous uncertainties inherent in estimating quantities of proved and proved plus probable crude oil and natural gas and natural gas liquids (NGLs ) reserves and in projecting future rates of production and the timing of development expenditures. The total amount or timing of actual future production may vary significantly from reserve and production estimates. The forward-looking statements are based on current expectations, estimates and projections about the Company and the industry in which the Company operates, which speak only as of the date such statements were made or as of the date of the report or document in which they are contained, and are subject to known and unknown risks and uncertainties that could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others: general economic and business conditions which will, among other things, impact demand for and market prices of the Company s products; volatility of and assumptions regarding crude oil and natural gas prices; fluctuations in currency and interest rates; assumptions on which the Company s current guidance is based; economic conditions in the countries and regions in which the Company conducts business; political uncertainty, including actions of or against terrorists, insurgent groups or other conflict including conflict between states; industry capacity; ability of the Company to implement its business strategy, including exploration and development activities; impact of competition; the Company s defense of lawsuits; availability and cost of seismic, drilling and other equipment; ability of the Company and its subsidiaries to complete capital programs; the Company s and its subsidiaries ability to secure adequate transportation for its products; unexpected disruptions or delays in the resumption of the mining, extracting or upgrading of the Company s bitumen products; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; ability of the Company to attract the necessary labour required to build its thermal and oil sands mining projects; operating hazards and other difficulties inherent in the exploration for and production and sale of crude oil and natural gas and in mining, extracting or upgrading the Company s bitumen products; availability and cost of financing; the Company s and its subsidiaries success of exploration and development activities and their ability to replace and expand crude oil and natural gas reserves; timing and success of integrating the business and operations of acquired companies; production levels; imprecision of reserve estimates and estimates of recoverable quantities of crude oil, natural gas and NGLs not currently classified as proved; actions by governmental authorities; government regulations and the expenditures required tocomply with them (especially safety and environmental laws and regulations and the impact of climate change initiatives on capital and operating costs); asset retirement obligations; the adequacy of the Company s provision for taxes; and other circumstances affecting revenues and expenses. The Company s operations have been, and in the future may be, affected by political developments and by federal, provincial and local laws and regulations such as restrictions on production, changes in taxes, royalties and other amounts payable to governments or governmental agencies, price or gathering rate controls and environmental protection regulations. Should one or more of these risks or uncertainties materialize, or should any of the Company s assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent upon other factors, and the Company s course of action would depend upon its assessment of the future considering all information then available. For additional information refer to the Risks Factors section oftheaif. Readers are cautioned that the foregoing list of factors is not exhaustive. Unpredictable or unknown factors not discussed in this report could also have material adverse effects on forward-looking statements. Although the Company believes that the expectations conveyed by the forward-looking statements are reasonable based on information available to it on the date such forward-looking statements are made, no assurances can be given as to future results, levels of activity and achievements. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Except as required by law, the Company assumes no obligation to update forward-looking statements, whether as a result of new information, future events or other factors, or the foregoing factors affecting this information, should circumstances or Management s estimates or opinions change. Reporting Disclosures Special Note Regarding Currency, Production and Reserves Special Note Regarding Currency, Production and Reserves In this document, all references to dollars refer to Canadian dollars unless otherwise stated. Reserves and production data are presented on a before royalties basis unless otherwise stated. In addition, reference is made to crude oil, natural gas and NGLs in common units called barrel of oil equivalent ("BOE") or thousand cubic feet of gas equivalent ( McfGE ). A BOE is derived by converting six thousand cubic feet of natural gas to one barrel of crude oil or NGLs (6Mcf:1bbl). An McfGE is derived by converting one barrel of crude oil or NGLs to six thousand cubic feet of natural gas (1bbl:6Mcf). These conversions may be misleading, particularly if used in isolation, since the 6Mcf:1bbl ratio or the 1bbl:6Mcf ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In comparing the value ratio using current crude oil or NGL prices relative to natural gas prices, the 6Mcf:1bbl or 1bbl:6Mcf conversion ratios may be misleading as an indication of value. This document, herein incorporated by reference, have been prepared in accordance with IFRS, as issued by the International Accounting Standards Board. For the year ended December 31, 2015 the Company retained Independent Qualified Reserves Evaluators ( IQREs ), Sproule Associates Limited and Sproule International Limited (together as Sproule ) and GLJ Petroleum Consultants Ltd. ( GLJ ), to evaluate and review all of the Company s proved and proved plus probable reserves with an effective date of December 31, 2015 and a preparation date of February 1, Sproule evaluated the North America and International light and medium crude oil, primary heavy crude oil, Pelican Lake heavy crude oil, bitumen (thermal oil), natural gas and NGLs reserves. GLJ evaluated the Horizon SCO reserves. The evaluation and review was conducted in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook ( COGE Handbook ) and disclosed in accordance with National Instrument Standards of Disclosure for Oil and Gas Activities ( NI ) requirements. Reserves disclosure is presented in accordance with Canadian reporting requirements using forecast prices and escalated costs. The Company annually discloses net proved reserves and the standardized measure of discounted future net cash flows using 12-month average prices and current costs in accordance with United States Financial Accounting Standards Board Topic 932 Extractive Activities - Oil and Gas in the Company s Form 40- F filed with the SEC in the Supplementary Oil and Gas Information section of the Company s Annual Report. Special Note Regarding non-gaap Financial Measures This document includes references to financial measures commonly used in the crude oil and natural gas industry, such as adjusted net earnings from operations, cash flow from operations, cash production costs and net asset value. These financial measures are not defined by International Financial Reporting Standards ( IFRS ) and therefore are referred to as non-gaap measures. The non-gaap measures used by the Company may not be comparable to similar measures presented by other companies. The Company uses these non-gaap measures to evaluate its performance. The non-gaap measures should not be considered an alternative to or more meaningful than net earnings, as determined in accordance with IFRS, as an indication of the Company s performance. The non-gaap measures adjusted net earnings from operations and cash flow from operations are reconciled to net earnings, as determined in accordance with IFRS, in the Net Earnings and Cash Flow from Operations section of the Company s MD&A. The derivation of adjusted cash production costs and adjusted depreciation, depletion and amortization are included in the Operating Highlights Oil Sands Mining and Upgrading section of the Company s MD&A. The Company also presents certain non-gaap financial ratios and their derivation in the Liquidity and Capital Resources section of the Company s MD&A. Volumes shown are Company share before royalties unless otherwise stated. 2

5 STRATEGY STEVE LAUT, PRESIDENT Canadian Natural Key Drivers Deliver Operating Excellence Top Tier: Safety, Environment, Effective & Efficient Performance Maintain and Enhance Canadian Natural s Strengths Maximize and Balance Returns on Capital Create Shareholder Value Provide Returns to Shareholders PREMIUM VALUE. DEFINED GROWTH. INDEPENDENT. 6 3

6 Canadian Natural Key Messages Large, Strong Balanced Asset Base Significant Competitive Advantage Effective & Efficient Track Record of Execution and Capital Allocation Transition to Long-Life, Low Decline Assets Unique Exploration and Production Company PREMIUM VALUE. DEFINED GROWTH. INDEPENDENT. 7 Canadian Natural s Strengths Proven, effective strategy Flexible capital allocation Nimble to capture opportunities Balanced cash flow allocation Cultural advantage Strong operations Effective, efficient and reliable Safe and environmentally responsible Proven ability to execute Operational, technical, financial expertise Strong portfolio Large, diverse, well balanced assets Long-life, low decline, low risk assets Lower maintenance capital requirements Owned and controlled infrastructure Financial resilience Strong financial discipline Investment grade ratings Access to capital Financial levers Shareholder friendly 8 4

7 Our Strategy Flexible capital allocation to maximize value Strong Balance Sheet to support investment grade credit Defined growth/value enhancement plans by product/basin Diverse, balanced asset base Product mix Project timelines Resource development and acquisitions Opportunistic acquisitions Effective and efficient operations Area knowledge Extensive infrastructure ownership Operatorship of core areas PROVEN EFFECTIVE STRATEGY 9 Canadian Natural s Cultural Advantage Control our destiny Operate at high working interest Learning organization Focused on value creation Results driven Operations discipline Quick, effective communication High levels of accountability No economic layoffs Aligned with shareholders All employees are shareholders Management and Directors have significant wealth at stake OUR CULTURE MAKES US UNIQUE 10 5

8 Capital Allocation Principles Maximize returns/cash flow near, mid, long-term Maintain Balance Sheet strength Preserve asset base optionality Transition phase First priorities Long-life, low decline, Horizon expansion Balance Sheet Returns to shareholders Preserve asset base Second priorities Resource development Opportunistic acquisitions Sustaining, enhanced value growth phase 2016 forward Balanced allocation Balance Sheet Returns to shareholders Resource development low capital exposure projects Opportunistic acquisitions SIGNIFICANT FLEXIBILITY 11 Final Stages of Transition Long-life, low decline asset base transition near completion Horizon Phase 2B start-up in 4 months 45,000 bbl/d Horizon Phase 3 start-up in Q4/17 80,000 bbl/d Horizon targeted expansion capital drops significantly 2016F ~$2 billion 2017F ~$1 billion 2018F ~$0 Horizon operating costs drop significantly Q4/16F $25/bbl target range 2018F <$25/bbl target range Corporate average decline rate targeted to be ~12% in 2018F Targeted maintenance capital to hold company production flat 2018F $2.4 - $2.7 billion Q4/16F cash flow covers capital and dividend at US$30/bbl WTI A MAJOR STEP CHANGE IN OUR LONGER-LIFE TRANSITION 12 6

9 Canadian Natural s Unique Position Unique combination of: Asset base, strength, diversity and balance Strategy and competitive advantages Highly effective capital allocation Management and team culture Aligned with shareholders Delivers the Best of All Worlds 13 Delivering the Best of All Worlds Long-life, low decline assets Sustainable production Free cash flow Price volatility resilience Low capital exposure assets Capital flexibility High return on capital Leverage infrastructure Maximizes Cash Flow 14 7

10 Balance and Optimize the Four Pillars of Cash Flow Allocation Maximizing Shareholder Value Balance Sheet Strength Returns to Shareholders Economic Resource Development Opportunistic Acquisitions FLEXIBLE CAPITAL ALLOCATION MAXIMIZIES SHAREHOLDER VALUE 15 Canadian Natural 4 Year Production Growth Targets (MBOE/d) 1,100 1,050 1,000 US$60.00 WTI Low Case 950 US$60.00 WTI Low Case Capital ($ Billion) 2016F 2017F 2018F 2019F US$60.00 WTI $3.9 $4.5 $4.5 $4.5 Low Case $3.7 $2.7 $2.4 $2.4 *2016F midpoint to 2019F midpoint at US$60.00/bbl WTI. See Advisory for pricing assumptions and cautionary statements. VALUE DRIVEN 16 8

11 Canadian Natural 4 Year Debt/EBITDA Targets EBITDA ($ Billion) Debt/EBITDA (x) $ US$60.00 WTI Low Case $10 $ $6 $4 $2 EBITDA $0 Ending Debt ($ Billion) 2016F 2017F 2018F 2019F US$60.00 WTI $16.5 $14.7 $11.5 $7.9 Low Case $16.3 $15.6 $13.3 $ Note: See Advisory for pricing assumptions and cautionary statements. CAPITAL ALLOCATION TO MAINTAIN BALANCE SHEET STRENGTH 17 Canadian Natural 4 Year Free Cash Flow Targets ($ Billion) $4 $3 US$60.00 WTI $2 $1 $0 -$1 Capital ($ Billion) 2016F 2017F 2018F 2019F US$60.00 WTI $3.9 $4.5 $4.5 $4.5 Note: Free cash flow represents cash flow from operations less capital and dividends. See Advisory for pricing assumptions and cautionary statements. SIGNIFICANT CASH FLOW GENERATION 18 9

12 Outlook Today Strong position Horizon execution on track Q4/16F Cash flow exceeds capital and dividends by ~$670 million* 2017 Significant, sustainable production increase Balance Sheet strengthens quickly Sustainable free cash flow ramps up Significant commodity price upside 2018/2019 Balanced cash flow allocation Strong production growth Strong Balance Sheet Additional cash flow available for shareholders * Q4/16F pricing assumes strip pricing as of June 3, See Advisory for other cautionary statements. POSITIONED TO MAXIMIZE SHAREHOLDER VALUE 19 Summary Canadian Natural is in a unique position Top tier effectiveness and efficiency Significant long-life, low decline growth Significant low capital exposure projects Competitive advantages Optimal cash flow/capital allocation Commodity price upside Management aligned with shareholders CANADIAN NATURAL IS A UNIQUE E&P COMPANY 20 10

13 ASSET OVERVIEW LYLE STEVENS, EXECUTIVE VICE-PRESIDENT, CANADIAN CONVENTIONAL Canadian Natural s Strengths Proven, effective strategy Flexible capital allocation Nimble to capture opportunities Balanced cash flow allocation Cultural advantage Strong operations Effective, efficient and reliable Safe and environmentally responsible Proven ability to execute Operational, technical, financial expertise Strong portfolio Large, diverse, well balanced assets Long-life, low decline, low risk assets Lower maintenance capital requirements Owned and controlled infrastructure Financial resilience Strong financial discipline Investment grade ratings Access to capital Financial levers Shareholder friendly 22 11

14 Balanced, Diverse Portfolio Balanced, diverse production mix International exposure Light Crude Oil and NGLs / SCO ~30% Natural Gas ~35% Production Mix 2016F Heavy Crude Oil ~35% Vast, balanced resource base to develop Growing, sustainable cash flow BUILDING A WORLD CLASS COMPANY 23 Advantages of a Balanced Portfolio Significant portion of portfolio long-life, low decline Provides robust, sustainable cash flow Low reserve replacement risk Facilitates capital flexibility to maximize returns Deep inventory of mid-term projects Pelican Lake and Thermal In Situ Horizon debottlenecking Longer-life, low decline Strong return on capital Strong inventory of low capital exposure projects Primary Heavy Oil, Light Oil in Canada and Offshore Africa, Natural Gas in the Deep Basin and Montney Leverage infrastructure Full capital flexibility BALANCED ASSET BASE PROVIDES COMPETITIVE ADVANTAGE 24 12

15 Canadian Natural s Advantage Low Capital Exposure Projects Full capital flexibility to capture market opportunities Quick payout, high return on capital Extensive land base enables repeatable, low cost drilling Strong inventory of assets facilitates flexibility and replication Significantly owned and operated infrastructure lowers costs and maximizes returns Exposure to proven and emerging play types Multiple capital allocation decision points Flexible programs Technological enhancements improve returns over time Overall aggregate risk is lower FLEXIBILITY SUPPORTS SUSTAINABLE CASH FLOW 25 Canadian Natural s Advantage Long-Life, Low Decline Assets Low reserve replacement costs Significant, sustainable cash flow More tolerant to commodity price volatility Low production decline Low costs to maintain production Minimal to no reservoir risk Greater opportunity to leverage operational expertise, continuous improvement process Minimal to no land expiry issues High barrier to entry Technological advancement could add significant value DELIVERS SUSTAINABLE CASH FLOW 26 13

16 Canadian Natural s Advantage Impact of Long-Life Assets on Decline Rates (%) 24% 22% Forecast 20% 19.4% 19.4% 18% 16% 14% 12% 10% Conventional Assets Conventional, Pelican & Thermal Conventional, Pelican, Thermal & Horizon 13.4% Production levels maintained F 2017F 2018F 2019F 40% Reduction in Corporate Decline Rate 11.7% Note: Conventional Assets include North America crude oil and NGLs, International crude oil and NGLs and natural gas. Assumes Conventional, Pelican and Thermal production held constant post 2016F. DECLINE RATE SIGNIFICANTLY REDUCED BY LONG-LIFE PRODUCTION 27 Horizon vs Permian Reservoir Risk/Reserve Replacement (Mbbl/d) Horizon Phase 2/3 no reservoir or reserve replacement risk Required Permian wells 9, , Permian increasing reservoir & reserve replacement risk Horizon Production (LHS) Permian Well Count (RHS) THE LONG-LIFE, LOW DECLINE ADVANTAGE 28 14

17 Long-Life, Low Decline Asset Profile Price Impact on Production and Value Commodity Price Production from long-life, low decline assets withstands price volatility Minimal impact on NPV No impact on corporate declines Production Rate Time Long-Life, Low Decline Production Commodity Price LONG-LIFE PRODUCTION SUPPORTS BUSINESS 29 Low Capital Exposure Asset Profile Price Impact on Production and Value Production* Major impact on project NPV if timing wrong Difficult to invest Significant declining production Operating costs increase with lower production Commodity Price Production Rate Time Commodity Price *Single well production profile. Value Creation Value Destruction TIMING CAN ERODE ECONOMIC VALUE 30 15

18 Balanced Model Price Impact on Production and Value Low capital exposure production grows Long-life assets provide sustainable production Less impact on corporate declines Ability to ramp up production faster with improving prices Stronger Balance Sheet Low Capital Exposure Production Commodity Price Production Rate Time Long-Life, Low Decline Production Commodity Price BALANCED MODEL DELIVERS BEST OF BOTH WORLDS 31 Advantages of Infrastructure Ownership/Operatorship Control of our destiny Control development timing and pace eliminates commitments Control costs Operations flexibility with high working interest Minimal capital exposure Return on capital maximized Drill-to-fill strategy Leverage existing infrastructure Reduced throughput costs Optimization of reliability Integration of well operations and facility operations Reduced labour Leverage of our expertise Elimination of firm commitments and high fees SIGNIFICANT OWNERSHIP/OPERATORSHIP IS A STRONG ADVANTAGE 32 16

19 Infrastructure Cost Advantage BC AB SK MB Facilities Pipelines Land Base ~62,000 km of Pipelines ~50,000 km - natural gas ~12,000 km - crude oil & NGLs 37 Operated Major Natural Gas Processing Facilities CONTROL/FLEXIBILITY/RETURN ON CAPITAL MAXIMIZED 33 Infrastructure Cost Advantage Deep Basin / Montney 28 Operated Major Natural Gas Processing Facilities ~2.1 Bcf/d - net design capacity ~0.9 Bcf/d - net available capacity BC AB Natural Gas Processing & Compression Facilities Pipelines Land Base DRILL-TO-FILL STRATEGY IMPROVES ECONOMICS 34 17

20 Infrastructure Cost Advantage Primary Heavy Oil Heavy Oil Processing & Sand Disposal Facilities Echo Pipeline Land Base 15 Crude Oil Processing Facilities 8 Sand Disposal Caverns AB SK INFRASTRUCTURE STRATEGY DRIVES LOW OPERATING COSTS 35 Natural Gas & NGLs Core Area Summary BC West 1,259 MMcf/d Land Base AB SK MB East 463 MMcf/d Note: Reflects Q1/16 actual production, before royalties. NGL production included in light crude oil production volumes. Largest natural gas producer in Canada Q1/16 natural gas production of 1,722 MMcf/d Q1/16 average NGL yield ~24 bbl/mmcf 21% condensate, 16% C5+ Large resource base 10.0 Tcfe reserves (1) Significant unconventional assets Montney and Deep Basin Large land position High working interest, low decline assets Owned and operated infrastructure $1 increase in AECO = ~$420 million additional annual cash flow (2) (1) Company Gross proved plus probable reserves at December 31, 2015; North America natural gas and NGLs. (2) Dependent upon economic and regulatory conditions, commodity prices, global economic factors, project sanction and capital allocation. TOP TIER ASSET BASE 36 18

21 Natural Gas & NGLs Montney Umbach West Nig Graham/Kobes Septimus Septimus Minor Pouce Coupe Progress Albright Elmworth Gold Creek Kakwa Conventional Oil & Gas Volatile Oil Liquids Rich Gas ( bbl/mmcf) Lean Gas (<10 bbl/mmcf) Large inventory of defined development projects Potential to add ~2.8 Bcf/d ~136 Mbbl/d NGLs 1.23 million net acres Montney rights Smoky Wild River BC AB UNTAPPED GROWTH POTENTIAL 37 Natural Gas & NGLs Deep Basin Spirit River Multiple Deep Basin targets with thick reservoir positions Extensive upside potential Potential to add ~1.7 Bcf/d ~34 Mbbl/d NGLs 1.81 million net acres Spirit River rights Paddy Cadotte Harmon Joli Fou Horizontal Drilling Targets Up to 350 meters Notikewin A B C D E F Wilrich Bluesky Gething G Upper Mannville Ostracod Spirit River Land Spirit River Natural Gas >3.5MMcf/d Spirit River Natural Gas UNLOCKING VALUE 38 19

22 Natural Gas Plays Across North America Breakeven Well Costs (US$/MMBtu) $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 Source: RS Energy Group. Note: Pricing converted to NYMEX on a 20:1 basis from WTI. s MONTNEY/DEEP BASIN PROJECTS WELL BELOW AVERAGE 39 North America Light Crude Oil Core Area Summary BC Light Oil Producing Properties Land Base AB SK MB Q1/16 light crude oil and NGL production ~90 Mbbl/d 2P reserves Light crude oil 192 million barrels* High quality light crude oil horizontal multi-frac opportunities Montney Dunvegan Halfway/Doig Cardium Spearfish ~125 active waterfloods Maximize recovery Shallow decline *Company Gross proved plus probable reserves at December 31, SIGNIFICANT LAND BASE AND OPPORTUNITY 40 20

23 Primary Heavy Crude Oil Core Area Summary Heavy Oil Producing Properties ECHO Pipeline Land Base Largest primary heavy oil producer in Canada Q1/16 production of ~114 Mbbl/d Large inventory of development opportunities Potential to execute cost-effective large drilling programs Premium land base and extensive infrastructure 15 crude oil processing facilities ECHO sales pipeline 2P reserves 294 million barrels* Low operating costs ~212km ~212km *Company Gross proved plus probable reserves as at December 31, VAST LAND BASE AND INFRASTRUCTURE CAPTURES VALUE 41 International Light Crude Oil Summary Q1/16 light crude oil production ~49 Mbbl/d 2P light crude oil reserves 426 million barrels* Long reserve life Low decline waterfloods Exploitation based Offshore Africa High return development opportunities Low operating costs in Côte d Ivoire Exploration upside North Sea Côte d Ivoire Gabon South Africa *Company Gross proved plus probable reserves at December 31, OPTIMIZATION OF SIGNIFICANT RESERVE BASE 42 21

24 Pelican Lake Polymerflood Crude Oil Production Polymer Injector Industry leading EOR technology Capital requirements are reduced and polymer driven performance is realized Q1/16 production ~48 Mbbl/d Industry leading operating costs Q1/16 operating costs $6.92/bbl Drives higher netbacks 2P reserves 388 million barrels* High quality infrastructure 3 processing facilities Significant expansion opportunities 55% of developed pool under polymerflood *Company Gross proved plus probable reserves as at December 31, INDUSTRY LEADING EOR TECHNOLOGY 43 Pelican Lake Production by Recovery Method (bbl/d) 60,000 50,000 40,000 30,000 20,000 Water flood/polymer flood Polymerflood Post Primary 10,000 Primary THREE PRODUCING REGIMES THREE DIFFERENT PROFILES 44 22

25 Pelican Lake Polymerflood Post Primary Production (bbl/d) 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 May 2005 Started pilot March 2006 Started commercialized development Polymerflood Post Primary 5, POLYMERFLOOD PERFORMANCE DRIVING GROWTH 45 Thermal In Situ Oil Sands Portfolio Birch Mtn. Vast resource base with short, mid and long-term value Allows flexibility in our capital allocation Saleski Germain Pelican Lake Thermal Producing Properties In Situ Project Inventory Oil Sands Grouse Gregoire Leismer Wolf Lake Kirby Ipiatik Primrose Marie Lake Hilda Lake 2P reserves 2.41 billion barrels* Majority working interest and operatorship Effective and efficient thermal operator Top tier in situ operating costs Excellent track record of project execution Leverage use of technology to enhance recovery and optimize costs Expertise in Cyclic Steam Stimulation (CSS), SAGD and Steamflood *Company Gross proved plus probable reserves as at December 31, VAST LAND BASE AND GREAT ASSETS = FLEXIBILITY 46 23

26 Thermal In Situ Oil Sands CSS Development Opportunities Primrose North Steam Generation Facility Primrose South Steam Generation Facility Primrose East Steam Generation Facility Wolf Lake Central Oil Processing and Steam Generation Facility Primrose/Wolf Lake Higher netbacks High quality crude oil Produced solution gas offsets fuel requirements CSS project expansion 864 additional horizontal wells* Steamflooding First commercial horizontal well steamflood at Primrose East Follow-up process to CSS Targeted recovery factor of ~69% OOIP at Primrose East Targeted production ~18,000 bbl/d Potential application post-css across all of Primrose *Company Gross proved plus probable reserves at December 31, STRONG DEVELOPMENT OPPORTUNITIES 47 Primrose and Wolf Lake Development Opportunities Significant development opportunities to Maximize utilization of existing facilities Support Primrose / Wolf Lake expansion Primrose North Primrose South Primrose East Primrose 284 CSS wells* - next 5 years 294 CSS wells* - 5+ years Wolf Lake 48 SAGD well pairs* next 5 years 97 SAGD well pairs* 5+ years 286 CSS wells* 5+years Wolf Lake Undrilled Development Pads *Company Gross proved plus probable reserves at December 31, INVENTORY CREATES VALUE 48 24

27 Thermal In Situ Oil Sands Kirby SAGD KIRBY WEST KIRBY NORTH Approved Project Area Approved Development Areas KIRBY CENTRAL KIRBY SOUTHWEST KIRBY SOUTH Kirby South Strong performance Productivity at/near facility design capacity of 40,000 bbl/d Instantaneous SOR = 2.5 Facility repairs completed in Q1/16 Strong inventory of new pads to maintain facility capacity 2P reserves 176 million barrels* Kirby North Regulatory approval in place Major facility equipment purchased Lease delineated and ready for drilling On hold pending economic conditions *Company Gross proved plus probable reserves as at December 31, ADDING VALUE WITH SAGD ASSETS 49 Thermal In Situ Oil Sands SAGD Development Opportunities Saleski Germain Pelican Lake Thermal Producing Properties In Situ Project Inventory Oil Sands Birch Mtn. Grouse Gregoire Leismer Wolf Lake Kirby Ipiatik Primrose Marie Lake Hilda Lake Athabasca SAGD Projects Inventory of 6 additional defined projects Potential of 200, ,000 bbl/d facility capacity Small Scale SAGD Projects Active commercial projects Tangleflags and Senlac May production ~3,100 bbl/d Seven opportunities identified Geological and engineering evaluation underway New Technology Steamflood application/enhancement Solvent assisted processes LONG-TERM FUTURE POTENTIAL 50 25

28 Horizon Oil Sands Operations Core Area Summary World Class asset 2P SCO reserves 3.63 billion barrels * ~43 miles Horizon Oil Sands DVN Deer Creek PCA SYN SHC UTS SYN SHC SU Fort McMurray SHC IOL XOM SYN SU HSE IOL PCA XOM ECA Synenco SU SU ECA ECA SU Phased development (SCO) Current targeted nameplate capacity of 137,000 bbl/d Targeted start-up of Phase 2B 4 months Targeted start-up of Phase 3 Q4/17 Potential future expansion to ~500,000 bbl/d of SCO or Bitumen equivalent 50+ years of production with no declines 100% working interest * Company Gross proved plus probable reserves as at December 31, LONG-LIFE, LOW DECLINE ASSET 51 Horizon Oil Sands Expansion Production Capacity Plan Phase 2B targeted start-up in 4 months (bbl/d) 250,000 Annual Expansion Capital Annual Expansion Capital ($ million) $2, ,000 $2, ,000 Phase 3 80,000 bbl/d $1,500 Phase 2B 45,000 bbl/d $1, ,000 $500 50, F F F F $0 Note: Production capacity assumes 3 months ramp up to full rates and excludes planned turnaround time. Project progress dependent upon economic and regulatory conditions, commodity prices, global economic factors, project sanction and capital allocation. 2016F F based on Company internal forecast as at May FUTURE EXPANSION CREATES VALUE 52 26

29 Horizon Oil Sands Significant Operating Cost Reductions Production (bbl/d) 250,000 Annual Operating Cost (C$/bbl) $45 200,000 $40 150, ,000 50,000 Q1/16 $26.55/bbl Phase 2B 45,000 bbl/d Phase 3 80,000 bbl/d Targeted below $25.00/bbl F F F F $35 $30 $25 $20 Note: Production capacity assumes 3 months ramp up to full rates and excludes planned turnaround time. Project progress dependent upon economic and regulatory conditions, commodity prices, global economic factors, project sanction and capital allocation. 2016F F based on Company internal forecast as at May Horizon Oil Sands Current Status - Operations Operations were stable throughout the wildfires and continue to be stable April production ~126,900 bbl/d May production ~110,400 bbl/d July turnaround status 35 day major maintenance activities All materials and work packages in place Supervision and craft labour lined up Accommodations secured Well organized, ready to execute SAFE AND RELIABLE OPERATIONS AT HORIZON 54 27

30 Horizon Oil Sands Current Status Expansion Phase 2B 95% physically complete Phase 3 on track Phase 2B commissioning and start-up Final start-up targeted for October 75 systems already turned over ~120 systems targeted to be turned over in June, July, August Some plants will start in June Integrated project/commissioning/operation teams (2 years) Minimal fire impact on schedule HORIZON EXPANSION ON TRACK 55 In Summary Strong portfolio Large, diverse, well balanced assets Long-life, low decline, low risk assets Lower maintenance capital requirements Owned and controlled infrastructure HIGH QUALITY INVENTORY OF ASSETS IS A KEY ADVANTAGE 56 28

31 EFFECTIVE & EFFICIENT OPERATIONS TIM MCKAY, CHIEF OPERATING OFFICER Canadian Natural s Strengths Proven, effective strategy Flexible capital allocation Nimble to capture opportunities Balanced cash flow allocation Cultural advantage Strong operations Effective, efficient and reliable Safe and environmentally responsible Proven ability to execute Operational, technical, financial expertise Strong portfolio Large, diverse, well balanced assets Long-life, low decline, low risk assets Lower maintenance capital requirements Owned and controlled infrastructure Financial resilience Strong financial discipline Investment grade ratings Access to capital Financial levers Shareholder friendly 58 29

32 Delivering Safety Excellence Lost time incident rate (Incident per 200,000 hours) 0.2 Safety is a core value Committed to continuous improvement 0.1 No harm to people, no safety incidents Top tier recordable injury frequency in North America conventional operations SAFETY IS A CORE VALUE 59 Environmental Performance Proactive environmentally responsible operations Drive continuous improvement to reduce environmental impacts Meet or exceed all regulatory requirements Reducing Greenhouse Gas Emissions Intensity 2015 Reduction vs 2014 Levels Conventional Operations 7% Horizon Operations 5% International Operations 13% Restoring sites to natural conditions Safe abandonment of old wellbores 519 wells in ,825 wells or 26% of industry between 2010 and 2014 DELIVERING ENVIRONMENTALLY RESPONSIBLE OPERATIONS 60 30

33 Leveraging Technology to Create Value and Enhance Performance Research & Development Investment ($ million) $500 $450 $400 $350 $300 Leading R&D Investor Largest crude oil and natural gas R&D investor in Canada in th largest R&D investor for all industries in Canada in $527 million 2014 $450 million 2013 $390 million $250 $200 $150 $100 $50 $ Creating Value Reduces environmental footprint Lowers operating costs Enhances productivity Unlocks reserves Note: Sourced from Company internal reports. TECHNOLOGY CREATES VALUE 61 Scientific, Research and Development Expenditures Technology and innovation Process Enhancement Other 33% 12% Technology & Innovation 33% Non-Segregated Tailings (NST) technology development Process enhancement Steamflooding at Primrose East Environmental Mature Fine Tailings (MFT) project 23% Environmental SIGNIFICANT R&D INVESTMENT 62 31

34 Horizon Oil Sands Mining & Upgrading Dewatered Tailings Non-Segregating Tailings (NST) NST production through two-stage cyclones Process expected to increase fines capture from 50% to 80% Thickeners creates warm water for reuse in operations Improved energy efficiency Sequestration of CO 2 Hydrogen & CO2 Capture Facilities Creating Value Environmental Benefits 25% less natural gas required to heat water 16% targeted reduction in GHG emissions 428,000 tonnes of CO 2 capture at new plant Results in 30% reduction of fresh water use intensity Economic Benefits Minimizes tailings footprint lower $/bbl Less natural gas used to heat water 30% savings in operating costs Increased bitumen recovery Cyclones ACHIEVING MULTIPLE BENEFITS 63 Canadian Natural s Advantages High working interest, operate essentially all production Significantly owned and operated infrastructure Large, high quality land base Strong operations Cultural advantages Cost control Operating and capital discipline Leverage technology Highly motivated teams CONTINUING ENHANCED EFFECTIVENESS AND EFFICIENCY 64 32

35 Enhancing Effectiveness & Efficiency Low commodity price provides further opportunities to enhance Right scoping and optimization Innovation; leverage technology Execution/productivity enhancements Gain regulatory effectiveness/efficiency Lower costs through the supply chain Work together with contractors and suppliers Production/reserve enhancements DRIVING SUSTAINABLE COST REDUCTIONS 65 Industry Leading 1P FD&A Costs ($/BOE) $60.00 $ Year 1P FD&A 3 Year 1P FD&A $40.00 $30.00 $20.00 $10.00 $0.00 Peers Source: BMO Capital Markets, 2016 Global Cost Study. Peers include APA, APC, CHK, CVE, DVN, ECA, EOG, HSE, IMO, NBL, OXY, SU. Note: Shown on a normalized basis, which excludes material revisions/impairments where applicable. Excludes change in FDC costs. INDUSTRY LEADING RESERVE METRICS 66 33

36 Reserve Replacement F&D Costs 3 Year Average Comparison ($/BOE, net) $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 Average $20.00 $10.00 $0.00 Peers Source: BMO Capital Markets, 2016 Global Cost Study. Peers include APA, APC, CHK, CVE, DVN, ECA, EOG, HSE, IMO, NBL, OXY, SU. Note: Shown on a normalized basis, which excludes material revisions/impairments where applicable. Uses a realized ratio defined as the actual realized price of oil divided by the actual realized price of gas. F&D costs exclude future development costs (FDC). TOP TIER F&D COSTS 67 Recycle Ratio 3 Year Comparison (x) Average CVE EOG SU IMO OXY NBL CHK DVN HSE ECA APA APC Non Integrated Peers Integrated Peers Source: BMO Capital Markets, 2016 Global Cost Study. Peers include APA, APC, CHK, CVE, DVN, ECA, EOG, HSE, IMO, NBL, OXY, SU. BEST IN CLASS RECYCLE RATIO 68 34

37 Asset Retirement Obligations to Proved Developed Reserves Comparison ($US/BOE) $4.00 $3.00 $2.00 Average $1.00 $0.00 CHK IMO OXY EOG DVN NBL APC ECA APA CVE SU HSE Peers Source: Company Reports. Reserves represent constant dollar SEC reserves. Peers include APA, APC, CHK, CVE, DVN, ECA, EOG, HSE, IMO, NBL, OXY, SU. PROACTIVELY MANAGING FUTURE OBLIGATIONS 69 Thermal CSS Pad Add Cost Reductions 11% Drilling cost/well ($ thousand) $4,000 $3,800 Previous Cost = $3,754M/well $3,600 $3,400 $3,200 Target Cost Reduction $884M/well $3,000 $2,800 Current Estimate = $2,870M/well $2,600 PRS Pads Metric Drilling Earthworks Completions Pad Facilities Pipelines Contingency Target Per Well SIGNIFICANT CAPITAL COST REDUCTIONS 70 35

38 Thermal CSS Drilling Cost Reductions Drilling cost/well ($ thousand) $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $900 $800 $700 Previous Cost = $1,561M/well Current Estimate = $1,236M/well Target Cost Reduction $325M/well $600 PRS Pads Metric Rig Selection LWD/Geo Vendors Casing Misc CSS Drilling MAXIMIZING COST OPPORTUNITIES 71 Thermal SAGD Drilling Cost Reductions Drilling cost/well ($ thousand) $1,600 $1,500 Previous Cost = $1,498M/well $1,400 $1,300 Target Cost Reduction $407M/well $1,200 $1,100 $1,000 Current Estimate = $1,091M/well $900 $800 $700 $600 Kirby North Rig Selection LWD/Geo Vendors Misc SAGD Drilling COST DISCIPLINE CREATES VALUE 72 36

39 Drilling Efficiency and Cost Reductions Heavy Oil Slant Drilling Optimization Drilling Cost/Well ($ thousand) $450 $400 $350 $300 $250 $200 Cost reductions in core areas of 25%-30% Step changes in performance/cost Vendor initiatives Reduction in daily costs Drilling days reduced by 19% Resetting drilling expectations Employing most efficient rigs Drilling costs comparable to 2006 Regulatory supported process changes Preplanning, readiness and project based *2015 included deeper drilling which required extra investment to optimize results. DRIVING PERFORMANCE 73 Drilling and Completions Baobab Deep Water Phase 3/4 ($ thousand) $ days $100 $80 $60 $40 $20 57 days 52 days % Cost Reduction Step changes in performance Casing design change (5 vs 4 strings) Drill string and drill bit redesign Lateral length increased over plan 4,924 meters drilled vs 3,121 meters planned Reduced drilling and completion days 32% reduction in drilling days Completion success 100% sand placement on gravel packs $0 Phase 1 & 2 Phase 3 Phase 4 Total D&C Days Cost per Meter 0 OPTIMIZE PROCESSES FOR POSITIVE RESULTS 74 37

40 Well Servicing Cost Reductions Pelican Lake (C$/Job) $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 Jan-14 Apr-14 Jul-14 Oct-14 Feb-15 May-15 Aug-15 Dec-15 Mar-16 Jun-16 Average Job Cost *Percentage change is highest point to current. FOCUSED ON CONTINUOUS IMPROVEMENT 75 Well Servicing Cost Reductions Woodenhouse (C$/Job) $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 Jan-14 Apr-14 Jul-14 Oct-14 Feb-15 May-15 Aug-15 Dec-15 Mar-16 Jun-16 Average Job Cost * Percentage change is highest point to current. UTILIZING EFFECTIVE AND EFFICIENT PROCESSES 76 38

41 Heavy Oil Fuel Efficiency Propane Usage vs Oil Production (L/bbl) Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 *Percentage change is Q1/14 to Q1/16. MAXIMIZING EFFICIENCIES 77 Operating Costs Natural Gas - Canada (C$/Mcf) $3.00 $2.50 $2.00 Peer Range $1.50 Peer Average $1.00 $0.50 $0.00 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Source: Company reports. Note: Peers include ARX, BNP, ECA, HSE, PGF, PWT. *Deep Basin/Septimus operating costs disclosed on a C$/Mcfe basis. Deep Basin* Septimus* STRONG NATURAL GAS OPERATING COSTS 78 39

42 Operating Costs Primary Heavy Oil (C$/bbl) $26.00 Peer Average $21.00 Peer Range $16.00 $11.00 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Source: Company reports. Note: Peers include CVE, HSE, PWT, TBE. INDUSTRY LEADING OPERATING COSTS 79 Operating Costs Pelican Lake (C$/bbl) $15.00 Facility constraints $10.00 $5.00 Q1/11 Q3/11 Q1/12 Q3/12 Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Source: Company reports. STRONG OPERATING COSTS 80 40

43 Operating Costs Thermal In Situ Oil Sands (C$/bbl) $40.00 $35.00 $30.00 $25.00 Peer Average $20.00 Peer Range $15.00 $10.00 $5.00 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Source: Company reports. Note: Peers include CVE, HSE, IMO, MEG, SU. COMPETITIVE OPERATING COSTS 81 Operating Costs Horizon Oil Sands (C$/bbl) $80.00 $70.00 $60.00 $50.00 Peer Average Peer Range $40.00 Q1/16 $26.55/bbl $30.00 $20.00 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Source: Company reports. Note: Peers include Albian Sands (Shell RDS), Syncrude, SU. INDUSTRY LEADING OPERATING COSTS 82 41

44 Horizon Oil Sands Operations Industry Leading Utilization Rate (% Average Utilization) Outperformance Peers Note: Peers include AOSP, Suncor, Syncrude. Source: Peer data per FirstEnergy Capital Corp. Synopsis: Integrated, Oilsands, and Large Cap Oil & Gas Producers, April BEST IN CLASS OPERATIONAL PERFORMANCE 83 Canadian Natural Operating Costs Trend Area (C$/bbl) F % Change (1) North America Light Oil & NGLs $17.24 $14.88 $ (19%) Pelican Lake (27%) Primary Heavy (19%) Thermal In Situ Oil Sands (15%) Horizon Oil Sands (2) (28%) North Sea (41%) Offshore Africa (62%) North America Gas (C$/Mcf) $1.42 $1.27 $ (19%) Corporate Total (C$/BOE) $18.29 $15.18 $ (23%) (1) Percentage change of 2016F midpoint over (2) Reflects production downtime for turnarounds and tie-ins. DRIVING SIGNIFICANT OPERATING COST REDUCTIONS 84 42

45 Net G&A Costs (US$/BOE) (1) $7.00 Costs comparable to 2010 levels $6.00 $5.00 $4.00 Peer Range Peer Average $3.00 $2.00 $1.00 $ (1) Production is net of royalties. Source: Company reports. Peers include: APA, APC, CHK, CVE, DVN, ECA, EOG, HSE, OXY. Net G&A includes selling, general and administrative expenses and excludes stock-based compensation. TOP TIER G&A COSTS 85 Canadian Natural Effective and Efficient Operations Long history of top tier cost performance Culture of disciplined cost control Cost structure reduced significantly ~50% sustainable Cost structure can be lowered further Execution Scope Technology Regulatory effectiveness and efficiency LOWER COST STRUCTURES DRIVE HIGHER RETURNS 86 43

46 CAPITAL ALLOCATION TIM MCKAY, CHIEF OPERATING OFFICER Advantages of a Balanced Portfolio Significant portion of portfolio long-life, low decline Provides robust, sustainable cash flow Low reserve replacement risk Facilitates capital flexibility to maximize returns Deep inventory of mid-term projects Pelican Lake and Thermal In Situ Horizon debottlenecking Longer-life, low decline Strong return on capital Strong inventory of low capital exposure projects Primary Heavy Oil, Light Oil in Canada and Offshore Africa, Natural Gas in the Deep Basin and Montney Leverage infrastructure Full capital flexibility BALANCED ASSET BASE PROVIDES CAPITAL FLEXIBILITY 88 44

47 Canadian Natural 2016 Capital Budget ($ million) F North America natural gas and NGLs $375 $ North America crude oil International crude oil 1, Total Exploration and Production $2,155 $915-1,125 Thermal in Situ Oil Sands $314 $ Horizon Sustaining capital $301 $ Turnarounds, reclamation & other Capital projects 2,186 1,890-1,990 Technology and Phase Total Horizon $2,743 $2,415-2,565 Net Acquisitions, midstream & other (1,359) Total $3,853 $3,500-3,900 SIGNIFICANT CAPITAL FLEXIBILITY 89 Capital Allocation Completion of Horizon Phases 2B and 3 increases Canadian Natural s flexibility Horizon targeted expansion capital drops significantly 2016F ~$2 billion 2017F ~$1 billion 2018F ~$0 Increased sustainable cash flow allocation will be balanced between Debt repayment Returns to shareholders Resource development Opportunistic acquisitions HORIZON SIGNIFICANTLY INCREASES CASH FLOW 90 45

48 Capital Allocation to Resource Development Enhanced capital flexibility will drive more fluid capital allocation based on return on capital Low capital exposure, higher return on capital areas will likely see greater allocation (price dependent) Leverage infrastructure Mid-term capital dependent on commodity price and sustainability Pelican Lake Thermal In Situ projects Horizon debottlenecking Balanced with opportunistic acquisitions VAST HIGH QUALITY DEVELOPMENT OPPORTUNITIES 91 Value Focused Production Enhancements 2015 enhancement program 36,435 wells reviewed Incremental production of ~23,000 BOE/d with capital efficiency of ~$1,700/BOE/d ~$39 million total capital expenditures 2016 YTD enhancement program 22,506 wells reviewed Incremental production of ~30,000 BOE/d with capital efficiency of ~$2,650/BOE/d ~$79 million total capital expenditures WELL OPTIMIZATION DRIVES STRONG CAPITAL EFFICIENCY 92 46

49 Deep Basin/Montney Natural Gas Projects Return on Capital, 15% After Tax AECO (C$/GJ) $3.50 $3.00 Infrastructure Advantage Greenfield $2.50 $2.00 $2.00-$2.50 Tier 3 $1.50 $1.00 $0.50 $1.00-$1.50 Tier 1 $1.50-$2.00 Tier 2 $2.50-$3.00 Tier 4 $3.00-$3.50 Tier 5 $ Production Capability (Bcfe/d) Note: Assumes WTI = $50.00 US$/bbl benchmark for natural gas liquids. See Advisory for pricing assumptions and cautionary statements. STRONG PORTFOLIO OF LIQUIDS-RICH GAS PROJECTS 93 Light Crude Oil Projects Return on Capital, 15% After Tax WTI (US$/bbl) $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $25.00-$40.00 Tier 1 Deep Basin, Espoir/Baobab $40.00-$45.00 Tier 2 Deep Basin $45.00-$50.00 Tier 3 - Deep Basin $50.00-$60.00 Tier 4 - Southern Alberta $ ,000 30,000 45,000 60,000 75,000 90,000 Production Capability (bbl/d) Note: Assumes AECO= $2.50 C$/GJ for natural gas, and an exchange rate of US$1.00 to C$1.30. See Advisory for cautionary statements. DIVERSE ASSET PORTFOLIO 94 47

50 Primary Heavy Crude Oil Projects Return on Capital, 15% After Tax WTI (US$/bbl) $70.00 $60.00 $50.00 $40.00 $30.00 Tier 4 $20.00 Tier 2 Tier 3 $10.00 Tier 1 $ ,000 40,000 60,000 80, , ,000 Production Capability (bbl/d) Note: Assumes an exchange rate of US$1.00 to C$1.30 and a WCS differential range of 22%-27%. See Advisory for cautionary statements. ABILITY TO ADD SIGNIFICANT GROWTH 95 Pelican Lake Projects Return on Capital, 15% After Tax WTI (US$/bbl) $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 Infill Drilling and Brownfield Polymer Expansions Tier 1 Tier 2 Infill Drilling and Brownfield Polymer Expansions Tier 1 Greenfield Polymer Expansions Tier 2 Greenfield Polymer Expansions Tier 3 Brownfield Polymer Expansions $ ,000 10,000 15,000 20,000 Production Capability (bbl/d) Note: Assumes an exchange rate of US$1.00 to C$1.30 and a WCS differential range of 22%-27%. See Advisory for cautionary statements. GROWING PRODUCTION WITH LEADING EDGE TECHNOLOGY 96 48

51 Thermal In Situ Oil Sands Projects Return on Capital, 15% After Tax WTI (US$/bbl) $70.00 $60.00 $50.00 $40.00 Future Greenfield SAGD Projects $30.00 $20.00 $10.00 Primrose Pads Kirby South Pads - Tier 1 Wolf Lake Sparky Kirby North Kirby South Pads - Tier 2 Primrose Expansion Small Scale SAGD Projects Grouse $ , , , , , , , , ,000 Production Capability (bbl/d) Note: Assumes AECO= $2.50 C$/GJ for natural gas, an exchange rate of US$1.00 to C$1.30 and a WCS differential range of 22%-27%. See Advisory for cautionary statements. LONG-LIFE, LOW DECLINE ASSETS GROWTH POTENTIAL 97 Canadian Natural 4 Year Production Growth Targets (MBOE/d) 1,100 1,050 1,000 US$60.00 WTI Low Case 950 US$60.00 WTI Low Case Capital ($ Billion) 2016F 2017F 2018F 2019F US$60.00 WTI $3.9 $4.5 $4.5 $4.5 Low Case $3.7 $2.7 $2.4 $2.4 *2016F midpoint to 2019F midpoint at US$60.00/bbl WTI. See Advisory for pricing assumptions and cautionary statements. VALUE DRIVEN 98 49

52 In Summary Strong operations Effective, efficient and reliable Safe and environmentally responsible Proven ability to execute Operational, technical, financial expertise STRONG OPERATIONS IS A KEY ADVANTAGE 99 50

53 FINANCE COREY BIEBER, CHIEF FINANCIAL OFFICER & SENIOR VICE-PRESIDENT FINANCE Canadian Natural s Strengths Proven, effective strategy Flexible capital allocation Nimble to capture opportunities Balanced cash flow allocation Cultural advantage Strong operations Effective, efficient and reliable Safe and environmentally responsible Proven ability to execute Operational, technical, financial expertise Strong portfolio Large, diverse, well balanced assets Long-life, low decline, low risk assets Lower maintenance capital requirements Owned and controlled infrastructure Financial resilience Strong financial discipline Investment grade ratings Access to capital Financial levers Shareholder friendly

54 North American Natural Gas Demand (Bcf/d) Bcf/d Other 80 Electricity Generation Residential 20 Industrials LNG Exports (9 Bcf/d) 0 Exports to Mexico (6 Bcf/d) F 2017F 2018F 2019F 2020F Source: Platts, NWRFC, NEB and Citi Research. DEMAND AND EXPORTS INCREASE THROUGH Natural Gas Pricing Price (US$/MMbtu) $3.50 $3.00 NYMEX Basis (US$/MMbtu) $1.65 $1.45 Forward gas prices increase to justify incremental supply to meet growing demand Canadian gas growth opportunities $2.50 $2.00 $1.50 $1.00 AECO $1.25 $1.05 $0.85 Coal displacement Oil Sands growth Canadian pipeline infrastructure available to access growing US demand $0.50 AECO Basis $0.65 $ F 2017F 2018F 2019F 2020F $0.45 Note: Strip pricing as of June 3, DEMAND GROWTH OPPORTUNITIES

55 Incremental Canadian Crude Oil Exports to US US imports more than 7 MMbbl/d of crude oil 1.2 MMbbl/d of Non-Canadian light oil imports US oil production has decreased 800 Mbbl/d in the past year US export policy shift allows for oil exports Light oil pricing will be tied to world pricing Source: CAPP, CA Energy Commission, EIA, Statistics Canada. HORIZON PRODUCTION GROWTH WILL DISPLACE SHALE OIL AND IMPORTS 105 Crude Oil WCSB Takeaway Capacity (MMbbl/d) Western Canadian Supply Forecast (CAPP 2015) +/- 250 Mbbl/d Western Canadian Supply Forecast (CAPP 2013) RAIL (AB Loading capacity up to 600 Mbbl/d) Gateway Pipeline (525 Mbbl/d) Energy East Pipeline (1,100 Mbbl/d) TransMountain Expansion Pipeline (590 Mbbl/d) Keystone Pipeline (Base 590 Mbbl/d) Enbridge System (Ex Superior 2,730 Mbbl/d) 2.0 Clearbrook Superior (300 Mbbl/d) 1.0 Access to PADD IV (400 Mbbl/d) TransMountain Pipeline (Base 300 Mbbl/d) Western Canadian Refining (586 Mbbl/d) Source: CAPP June 2015, Enbridge and Company Reports *Note: Includes Bakken volume into Superior AMPLE TAKEAWAY CAPACITY

56 Canadian Natural Manages Price Volatility Canadian Natural proactively manages volatility Canadian Natural manages future liquidity on a weekly basis considering: Current and anticipated production changes Current and future strip pricing (WTI, WCS, AECO, NYMEX, Sulphur, FX rates, etc.) Current and forecast operating costs and capital expenditures Current and forecast changes in working capital, income taxes and capital structure We react to the future strip in real time and plan accordingly Capital flexibility Production planning Optimizing returns Bank liquidity / Debt Capital Markets (US and Canada) PROACTIVE THINKING IN A VOLATILE ENVIRONMENT 107 Proactive Management of Capital Expenditures in Volatile Price Environment Canadian Natural actively uses the strip to manage economics of investment activities In a very low price environment, Canadian Natural could further reduce capital expenditures In 2018F, we would target maintenance capital of $2.4 - $2.7 billion Depending on financial capacity, commodity volatility and targeted returns, Canadian Natural proactively shifts capital between: Long-life, low decline projects and limited capital exposure projects Light crude oil, heavy crude oil and natural gas Domestic and international opportunities PROACTIVELY MONITORING PRICE VOLATILITY

57 Commodity Price Risk Management Considerations for risk Size of entity and cash flow generated Capital flexibility Firm commitments Commodity price downside vs upside Availability of other financial levers Board authorization Up to 60% of next 12 months production Up to 40% of the following 12 months production Current assessment Commodity prices closer to trough than crest Significant capital flexibility and financial levers available Sufficient liquidity to absorb downside risks, while not limiting upside potential MANAGING FINANCIAL OPTIONS 109 Robust Financial Position Long-Term Short-Term Outlook Ratings Ratings Standard & Poor s BBB+ Stable A-2 DBRS BBB High Negative n/a Moody s Baa3 Negative P-3 Strong financial position as of March 31, 2016 Debt/book capitalization 38% Available bank lines of $2.3 billion Disciplined allocation of capital delivers sustainable dividend policy 15 consecutive years of dividend increases $0.92 per share annualized dividend declared March 2016 PrairieSky share distribution DELIVERING ON OUR FINANCIAL PLAN

58 2015 Ending Debt Per BOE/d (After Royalties) US$/BOE/d ($ thousand) $25 $20 Average $15 $10 $5 $0 Peers Note: Sourced from Company Reports and Bloomberg. Peers include: APA, APC, CHK, CVE, DVN, ECA, EOG, HSE, IMO, NBL, OXY, SU.. DEBT LEVELS ALIGN WITH PEERS Ending Debt Per Net BOE Reserves (US$/BOE) $9.00 $8.00 $7.00 $6.00 $5.00 Average $4.00 $3.00 $2.00 $1.00 $0.00 Peers Note: Sourced from Company Reports (FAS 69 disclosures) and Bloomberg. Peers include: APA, APC, CHK, CVE, DVN, ECA, EOG, HSE, IMO, NBL, OXY, SU. DEBT LEVELS SUPPORTED BY STRONG RESERVES

59 Canadian Natural 4 Year Free Cash Flow Targets ($ Billion) $4 $3 US$60.00 WTI Stress Case $2 $1 $0 -$1 -$2 Capital ($ Billion) 2016F 2017F 2018F 2019F US$60.00 WTI $3.9 $4.5 $4.5 $4.5 Stress Case $3.5 $2.6 $2.4 $2.0 Note: Free cash flow represents cash flow from operations less capital and dividends. See Advisory for pricing assumptions and cautionary statements. SIGNIFICANT FREE CASH FLOW GENERATION 113 Debt / Book Capitalization (%) 70 Bank Debt Long Term Target Range 25% - 45% F 2017F 2018F 2019F Low Case Note: See Advisory for pricing assumptions and cautionary statements. WELL WITHIN COVENANTS AND LONG-TERM RANGES

60 Debt / Annual EBITDA (x) Long Term Target Range 1.8x - 2.2x F 2017F 2018F 2019F Low Case US$60.00 WTI Note: See Advisory for pricing assumptions and cautionary statements. RETURN TO CONSERVATIVE TARGET RANGE IN 2018F/2019F 115 Debt Maturities vs Forecasted Liquidity ($ Billion) $4.5 $4.0 Excludes other financial levers available $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $ F 2017F 2018F 2019F Forecast Available Liquidity (Low Case) Public Debt Forecasted liquidity is available credit lines plus cash flow after capital and dividends. All amounts expressed as C$ equivalent as at March 31, See Advisory for pricing assumptions and cautionary statements. AMPLE LIQUIDITY SUPPORTS MATURITY PROFILE

61 Credit Facility Summary (C$ millions) Maturity Revolving bank line 1 (1) $2,425 June 2019 Revolving bank line 2 (1) $2,425 June 2020 Non-revolving syndicated term facility (1) $1,500 April 2018 Non-revolving term facilities (1) $ 875 February 2019 Operating demand loan $ 100 Demand North Sea operating line ( 15 million) $ 28 Demand Total bank lines $7,353 Available March 31, 2016 $2,299 (1) Financial covenant Consolidated Debt to Book Capital ratio not to exceed 0.65:1.00. NO RENEWALS UNTIL AFTER COMPLETION OF HORIZON EXPANSION 117 Beyond Capital Flexibility Debt Capital Markets Canadian US royalty revenue streams ~1,000 BOE/d 3 rd party ~1,200 BOE/d to PrairieSky shares 22.6 million shares Post 2020 cross currency swaps SIGNIFICANT FINANCIAL LEVERS ARE READILY AVAILABLE

62 PrairieSky Canadian Natural sold to PrairieSky royalty lands, including fee simple mineral title and GOR lands for $1.66 billion $673 million in cash and $985 million in PrairieSky shares Retained approximately 20% of Canadian Natural s royalty volumes Additional lands acquired in 2015 Use of proceeds $673 million of cash applied to Canadian Natural credit facilities 21.8 million shares distributed to shareholders as return of capital in June 6, 2016 Actual value $542.6 million 22.6 million shares retained as future optionality Approximate value ~$580 million * * Based on PrairieSky (PSK.TO) closing price of $25.63 on June 7, DELIVERING RETURNS TO SHAREHOLDERS 119 Return to Shareholders ($ million) 1,600 1,400 31% CAGR F 1,200 1, Horizon Phase 1 build years F Dividend Share Purchase PSK Distribution RETURNS TO SHAREHOLDERS A PRIORITY