Oil and gas producer Canadian Natural Resources on Thursday posted a better-than-expected profit in the fourth quarter, as executives pointed to the company's ability to weather dramatic swings in oil prices thanks to a low-cost structure and diversification strategy.

Canada's largest oil-and-gas producer beat analysts' expectations during a global sector downturn, hit by US tariff uncertainty and rising OPEC+ supply.

Its output jumped 12.8% from a year earlier to a record 1.66-million barrels of oil equivalent per day in the fourth quarter, while it also raised its 2026 production forecast to 1.62-million to 1.67-million boepd, from 1.59-million to 1.65-million boepd projected earlier.

Lower oil prices in the fourth quarter have since surged as a result of the US-Israel war on Iran, which has significantly reduced crude supplies from the Middle East and has helped to boost prices for Canadian oil sands heavy crude.

But Canadian Natural CEO Scott Stauth said the company aims to maintain a steady hand in the face of commodity price swings. The company has total contracted crude oil transportation capacity of 256 500 barrels per day, consisting of committed volumes both to Canada's west coast for export overseas and to the United States Gulf Coast.

He said this market diversification means Canadian Natural does not need to take drastic action in the face of geopolitical turmoil.

"It's all about continued focus on our operating costs and ensuring that we can be competitive in all the markets," Stauth said.

Canadian Natural raised its quarterly dividend by 6.4% to C$0.625 per share.

The Calgary, Alberta-based company posted an adjusted profit of 82 Canadian cents per share in the fourth quarter, beating analysts' average expectation of 69 Canadian cents, according to data compiled by LSEG.

Its US-listed shares were up 1.5% as of mid-day trading.

The company said on Thursday it is deferring its C$8.25-billion Jackpine oil sands mine expansion project, for which early-stage engineering had been expected to start this year and which was intended to add 150 000 bpd of bitumen production to Canadian Natural's asset base.

Stauth said it is too risky to go ahead with the project until Canada's federal government finalizes its policies on methane and industrial carbon pricing. Once there is more certainty on these regulations as well as approval timelines and Canadian pipeline export capacity, Canadian Natural will reassess the viability of the Jackpine expansion, he said.