Aug 1 (Reuters) - Canadian Natural Resources ( CNQ )

beat second-quarter profit estimates on Thursday, as the energy

producer benefited from higher crude prices and a rise in

output.

Crude prices traded higher in the April-June quarter on

escalating tensions in the Middle East, OPEC+ production cut

extension and expectations of interest rate cuts from the U.S.

Federal Reserve.

Canadian Natural said the realised price for exploration and

production liquids rose to C$86.64 per barrel in the quarter

from C$72.06 per barrel a year ago.

It delivered 8% growth in average production despite the

second quarter of each calendar year being a period of high

turnaround activity for the company.

Total production stood at 1.29 million barrels of oil

equivalent per day (boepd) in the quarter, higher than 1.19

million boepd a year earlier.

Realized prices for synthetic crude oil rose over 14% to

C$108.81 per barrel.

The Calgary, Alberta-based company's second-quarter net

income rose 17.2% to C$1.72 billion ($1.24 billion) from a year

earlier.

"Our capital program for 2024 remains on target and as per

our free cash flow allocation policy, we are returning 100% of

free cash flow to shareholders in 2024 and we will continue to

manage this allocation on a forward looking annual basis,"

Canadian Natural's CFO Mark Stainthorpe said in a statement.

Canadian Natural posted adjusted net earnings from

operations of 88 Canadian cents per share for the three months

ended June 30, compared with analysts' average estimate of 81

Canadian cents per share, according to LSEG data.

($1 = 1.3832 Canadian dollars)