UPDATE 2-Canadian Natural Resources misses first-quarter profit estimates on lower sales, pricing

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May 2 (Reuters) - Canada's largest oil and gas producer Canadian Natural Resources 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. (Reporting by Seher Dareen and Kabir Dweit in Bengaluru; Editing by Varun H K and Vijay Kishore)