May 2 (Reuters) - Canada's largest oil and gas producer

Canadian Natural Resources ( CNQ ) missed analysts' estimates

for first-quarter profit on Thursday, hurt by

lower-than-expected production, along with a decrease in sales

and realized pricing.

The firm posted an adjusted profit of C$1.37 per share,

below analysts' average estimates of C$1.48 per share, according

to LSEG data.

The company in its outlook for 2024 in December said that it

expects to drill more wells in the second half and exit the year

with higher production to better align with market fundamentals

and improved commodity pricing.

Net earnings were C$987 million compared with C$1.8 billion

for the first quarter of 2023 due to lower realized synthetic

crude oil (SCO) and natural gas pricing.

The realized natural gas price fell 40% to C$2.55 per

thousand cubic feet (/mcf) on average for the quarter from a

year earlier, while in oil sands mining, SCO prices decreased

nearly 8% to an average C$88.84 per barrel.

Natural gas prices fell about 30% in the first

quarter on ample supply, as output rose to record levels and

demand for heating fell due to a mild winter.

Product sales came in at C$9.42 billion, slightly below the

year-ago quarter, with a nearly 39% drop in natural gas sales.

However, the company expects oil prices to strengthen for

the remainder of 2024 after the first quarter, "driving

significant targeted free cash flow generation going forward,"

said the president of the company Scott Stauth.

Overall production came in at 1.33 million barrels of oil

equivalent per day (boepd), lower than analysts' expectations of

1.35 million boepd.

CNQ also saw a drop in its oil sands mines, coming in at

445,209 barrels a day, a decrease of 3% from year-ago levels, on

planned and unplanned maintenance.

It also said it would benefit from the starting up of the

Trans Mountain Oil pipeline, in which it can move 94,000 barrels

a day. The pipeline overall could nearly triple the flow of oil

to Canada's west coast and reduce the discount on Canadian

benchmark crude.