Canadian Natural Resources oil sands mining operations at the Horizon oil sands facilityLarry MacDougal
Canadian Natural Resources Ltd. plans to buy up to 2.5 per cent of its outstanding shares from public markets over the coming year.
At current prices, the eligible shares are worth about $1-billion - although the company isn't obliged to make any purchases if conditions aren't right.
Under the normal course issuer bid, the Calgary-based oil and gas company can buy nearly 13.6 million of its shares in the 12 months starting April 6.
CNQ shares closed Wednesday at $75.17 on the Toronto Stock Exchange and opened Friday at $76.
By buying back its shares, CNQ reduces its equity base, spreading profits over fewer shares. That increases its return on equity and earnings per share, two key ratios used to determine a company's financial health and investment rating.