Profits of Canadian Natural Resources Ltd more than doubled from last year in the first quarter, as rising oil prices pushed the Calgary-based energy company closer to reaching its debt reduction target.

On Thursday, CNRL said it earned $3.1 billion or $2.63 per diluted share for the quarter ending March 31, up from $1.38 billion or $1.16 per diluted share in the same quarter last year.

With the war in Ukraine driving oil prices to heights not seen in years, CNRL said it now expects its net debt level to fall below $8 billion by late 2022 or early 2023.

The company's net debt was steady at $13.8 billion at the end of the first quarter.

CNRL’s board set $8 billion as the "base level" for corporate debt. Once this level is reached, additional free cash flow will be allocated as additional returns to shareholders, the company says. CNRL – which is now Canada’s largest oil and gas company by market value – paid out nearly $1.8 billion to shareholders in the first quarter of 2022, including $700 million in dividends and $1.1 billion in share buybacks.

Phil Skolnick, an analyst at Eight Capital, said in a research note: "Notably, while we thought it might be possible, the company did not raise dividends for the third consecutive quarter."

Last year, CNRL indicated that to the extent that its net debt falls below $15 billion, that amount would be allocated for strategic growth and acquisition opportunities.

In the first quarter, the company completed a number of acquisitions, including the remaining 50 percent stake in Pike lands in the Jackfish and Kirby areas of northern Alberta, and the liquids-rich Montney lands in the Wembley area north of Alberta.

On the call, CNRL CEO Tim McKay said the company intends to be disciplined when it comes to pursuing any future acquisitions.

McKay said: "Up to this point, acquisitions have always been part of our strategy. However, we have no gaps in our portfolio, and acquisitions must make sense and add long-term value."

CNRL recorded product sales of $12.13 billion in the quarter, up from $7.02 billion in the first quarter of 2021.

Adjusted net earnings from operations were $2.86 per diluted share, up from $1.03 per diluted share in the first three months of 2021.

Analysts on average expected adjusted earnings of $2.54 per share, according to financial market data company Refinitiv.

CNRL shares traded at $80.81 on the Toronto Stock Exchange midday Thursday, down $2.81 or 3.4 percent.