If you’re looking for a stock you can buy and hold forever, Canadian Natural Resources (TSX:CNQ) deserves a spot at the top of your list.
The TSX energy stock is up roughly 54% over the past year, but that headline number may undersell the long-term story here.
CNQ is a cash-generating machine with world-class assets, decades of dividend growth, and a quality management team. Valued at a market cap of $137 billion, CNQ stock has returned 4,740% to shareholders since the start of 2001, after adjusting for dividends.
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CNQ stock delivered a solid quarter in Q1 of 2026
In the first quarter of 2026, Canadian Natural Resources produced approximately 1,643,000 barrels of oil equivalent per day, an increase of 4% year over year.
The company set new quarterly highs in North American exploration and production of liquids and natural gas, and at its Jackfish thermal in situ operation.
The Jackfish facility was designed to produce 120,000 barrels per day. In Q1, it averaged 134,000 barrels per day, which reflects CNQ’s relentless focus on sustainably squeezing more value out of assets it already owns.
Two new production pads at Pike 1 came online in late 2025 and early 2026. They’re already producing a combined 41,000 barrels per day with a steam-to-oil ratio of roughly 1.8, well ahead of expectations.
A strong performance in Q1 of 2026
CNQ generated adjusted funds flow of $4.4 billion or $2.10 per share in Q1. It also reported adjusted earnings of $2.4 billion or $1.17 per share.
CNQ benefits from low operating costs, a premium-priced product mix, and assets that continue to outperform their design specs.
One of CNQ’s key advantages right now is its synthetic crude oil, or SCO, which is trading at a premium of approximately US$5.70 per barrel above West Texas Intermediate on the forward strip for the rest of 2026.
SCO accounts for a significant share of the company’s liquids production, which allows CNQ to generate industry-leading cash flows.
In Q1, the Canadian energy giant returned $1.5 billion to shareholders, which includes $1.2 billion in dividends and $300 million in buybacks.
Notably, CNQ has raised its dividend for 26 consecutive years, and these payouts have grown by 20% annually, which is exceptional for an oil and gas company.
CNQ pays an annual dividend of $2.50 per share, which translates to a forward yield of almost 4%. CNQ has reduced its net debt to below $16 billion. Once its net debt falls below $13 billion, it will return 100% of free cash flow to shareholders.
The long-term growth runway is real
CNQ also has meaningful growth projects already in motion.
Front-end engineering is underway on a 30,000-barrel-per-day expansion at Jackfish and a 70,000-barrel-per-day Pike 2 project.
The company’s oil sands mining and upgrading assets present a potential 90,000-barrel-per-day expansion opportunity at Horizon alone.
Additionally, management is actively working with federal and provincial governments to establish a competitive fiscal framework for oil sands development.
If that framework comes together, CNQ has the assets, balance sheet, and operational expertise to grow meaningfully over the next decade.
Put simply, CNQ is not a stock you own for what it did last year. You own it for what it will likely keep doing for the next 20.
