Calgary, August 1, 2025 Exhibit 99.1 Q2 News Release Imperial announces second quarter 2025 financial and operating results | | | Second quarter | | | Six months | | | --- | --- | --- | --- | --- | --- | --- | | millions of Canadian dollars, unless noted | 2025 | 2024 | ∆I | 2025 | 2024 | ∆I | | Net income (loss) (U.S. GAAP) | 949 | 1,133 | (184) | 2,237 | 2,328 | (91) | | Net income (loss) per common share, assuming dilution (dollars) | 1.86 | 2.11 | (0.25) | 4.38 | 4.34 | +0.04 | | Capital and exploration ...

Summary of Global Oil and Gas Valuation Report Industry Overview - The report focuses on the **Global Oil and Gas** industry, providing insights into major companies and market dynamics as of **July 18, 2025** [1][2]. Key Companies Mentioned - **India**: Bharat Petroleum, Hindustan Petroleum, Indian Oil, ONGC, Reliance Industries - **Europe**: BP, BW LPG, Ceres Power, ENI, Fuchs Petrolub, Galp, Industrie De Nora, ITM Power, MOL, Motor Oil - **North America**: Aemetis, Antero Resources, APA Corp, Chevron, ExxonMobil, Halliburton, Suncor Energy, Valero Energy - **China**: CNOOC, Petrochina, Sinopec - **Saudi Arabia**: Saudi Aramco - **Others**: Companies from South Africa, Thailand, South Korea, Japan, Australia, and Latin America are also included [2]. Core Insights and Arguments - **Valuation Metrics**: The report provides various valuation metrics such as **EV/DACF**, **FCF Yield**, and **P/E Ratios** for major oil companies, indicating their financial health and market performance [9]. - **Performance Ratings**: Companies are rated based on their performance, with **Chevron** and **ExxonMobil** receiving "Buy" ratings, while **Equinor** is rated as "Sell" [9]. - **Growth Projections**: The report includes **CAGR** estimates for 2024-2027, indicating expected growth rates for different companies, with **Cenovus Energy** projected to have a **78%** upside potential [9]. - **Market Trends**: The report highlights trends in the oil and gas sector, including shifts towards renewable energy and the impact of geopolitical factors on oil prices [6]. Important but Overlooked Content - **Analyst Conflicts of Interest**: The report discloses potential conflicts of interest due to UBS's business relationships with covered companies, which may affect the objectivity of the analysis [4][5]. - **Macro Assumptions**: The report includes macroeconomic assumptions that underpin the valuations, sourced from reputable databases like Bloomberg and Reuters [6]. - **Definitions and Metrics**: Key financial metrics and definitions are provided to ensure clarity in the analysis, such as the **Nelson Complexity Index** for refining capacity [8]. Conclusion - The **Global Oil and Gas Valuation Report** provides a comprehensive analysis of the industry, highlighting key players, financial metrics, and growth projections while also addressing potential conflicts of interest and macroeconomic assumptions that could influence investment decisions [1][2][4][5][9].

Core Insights - Imperial Oil Ltd. has identified a small diesel leak from its dock in Ontario, which has leaked into the Saint Clair River, and the company has taken measures to contain the spillage [1][8] Containment and Cleanup Efforts - Containment booms were deployed in the river to limit the damage caused by the leakage, and the source of the leak was promptly identified and stopped [2][8] - Cleanup efforts are currently underway, and precautionary water quality checks downstream indicate no significant levels of hydrocarbons have been detected [3]

Core Viewpoint - Imperial Oil Limited (IMO) has shown a 3.3% increase in share price over the past year, outperforming the broader oil and energy sector, which declined by 7.2% [1]. Company Overview - Imperial Oil is a major Canadian oil company with a diverse portfolio that includes oil and gas production, refining, marketing, and chemical manufacturing [4]. - The company is Canada's largest supplier of jet fuel and a top asphalt producer, benefiting from a 69.6% ownership stake by ExxonMobil, which provides access to global expertise and resources [4]. Key Factors Boosting Market Position - **Integrated Business Model**: Imperial's vertical integration combines upstream oil production with downstream refining and marketing, leading to a surge in downstream earnings to C$584 million in Q1 2025, up C$228 million from Q4 2024 [6]. - **Shareholder-Friendly Capital Allocation**: The company returned C$307 million in dividends in Q1 2025 and plans to renew its Normal Course Issuer Bid, indicating confidence in future cash flows [7][8]. - **Strategic Projects with Renewable Edge**: Key projects include the Leming SAGD development, expected to add 9,000 barrels per day, and the Strathcona renewable diesel facility, aligning with low-carbon fuel trends [9]. - **Efficiency-Driven Cost Reductions**: Imperial has reduced cash costs at Cold Lake by over C$3 per barrel year over year and aims for further reductions to C$13 per barrel at Cold Lake and C$18 at Kearl [10][11]. - **Strategic Infrastructure Positioning**: The company owns key pipelines and storage facilities, providing reliable market access and mitigating midstream bottlenecks [12]. Challenges and Risks - **Oil Price and Margin Volatility**: Imperial is sensitive to crude oil price fluctuations, with WTI prices averaging C$71.42 per barrel in Q1 2025, down from C$76.86 in Q1 2024 [13]. - **Operational Risks and Weather-Related Disruptions**: Production was impacted by extreme cold weather, with Kearl's output down by 21,000 barrels year over year [14]. - **Lower Bitumen Prices Pressure Upstream Realizations**: Weaker realizations in oil sands operations due to falling bitumen prices have impacted upstream margins [15]. - **Limited Exposure to LNG Growth**: Unlike peers investing in LNG projects, Imperial focuses on oil and refined products, potentially missing out on the growing demand for natural gas [17]. Final Assessment - Imperial Oil's integrated business model and strong shareholder returns position it well for long-term profitability, despite vulnerabilities to commodity price swings and operational risks [18][19].

Financial Performance - Net income for Q1 2025 was CAD 1,288 million, an increase from CAD 1,195 million in Q1 2024, representing a 7.8% year-over-year growth[44] - Cash flows from operating activities increased to CAD 1,527 million in Q1 2025, up from CAD 1,076 million in Q1 2024, reflecting higher upstream realizations[53] - Dividends paid increased to CAD 307 million in Q1 2025 from CAD 278 million in Q1 2024, with per share dividends rising to CAD 0.60 from CAD 0.50[55] Production and Operations - Kearl's production decreased to 181,000 barrels per day in Q1 2025 from 196,000 barrels per day in Q1 2024, primarily due to extreme cold weather and unplanned downtime[47] - Production at Cold Lake increased to 154,000 barrels per day in Q1 2025 from 142,000 barrels per day in Q1 2024, driven by Grand Rapids solvent-assisted SAGD[48] - Refinery throughput decreased to 397,000 barrels per day in Q1 2025 from 407,000 barrels per day in Q1 2024, with refinery capacity utilization dropping to 91% from 94%[50] Market Conditions - Average bitumen realizations increased by CAD 8.75 per barrel, driven by a narrowing WTI/WCS spread, while synthetic crude oil realizations rose by CAD 5.28 per barrel[45] - The average foreign exchange rate was CAD 0.70 per USD in Q1 2025, compared to CAD 0.74 per USD in Q1 2024[46] - The company continues to monitor the volatile global trade environment, with uncertainty regarding the impact of tariffs and trade sanctions on operations[43] Strategic Focus - The company is focused on executing its project plans, including the Strathcona renewable diesel project and autonomous operations at Kearl, amidst various market risks[58]

Core Insights - Imperial Oil reported revenue of $8.72 billion for Q1 2025, a year-over-year decline of 4.3%, and an EPS of $1.75, up from $1.65 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $11.11 billion, resulting in a surprise of -21.51%, while the EPS exceeded the consensus estimate of $1.52 by 15.13% [1] Financial Performance - Gross Oil-Equivalent Production was 418 KBBL, below the average estimate of 436.72 KBBL [4] - Gross Natural Gas Production reached 30 Mcf, slightly above the average estimate of 29.86 Mcf [4] - Total crude oil production was 413 KBBL, compared to the estimated 427.13 KBBL [4] - Total Refinery throughput was 397 KBBL, below the average estimate of 417.56 KBBL [4] - Net Petroleum Products Sales were 455 KBBL, compared to the average estimate of 469.33 KBBL [4] Stock Performance - Shares of Imperial Oil returned -0.8% over the past month, compared to a -0.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Core Viewpoint - Imperial Oil reported quarterly earnings of $1.75 per share, exceeding the Zacks Consensus Estimate of $1.52 per share, and showing an increase from $1.65 per share a year ago, representing an earnings surprise of 15.13% [1][2] Financial Performance - The company posted revenues of $8.72 billion for the quarter ended March 2025, which was 21.51% below the Zacks Consensus Estimate and a decrease from $9.11 billion year-over-year [2] - Over the last four quarters, Imperial Oil has surpassed consensus EPS estimates four times but has not beaten consensus revenue estimates [2] Stock Performance - Imperial Oil shares have increased approximately 10.5% since the beginning of the year, contrasting with a decline of 4.7% in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.19 on revenues of $10.98 billion, and for the current fiscal year, it is $5.64 on revenues of $40.1 billion [7] - The outlook for the industry, specifically the Oil and Gas - Integrated - Canadian sector, is favorable, ranking in the top 21% of over 250 Zacks industries [8]

Financial Performance - Net income for Q1 2025 was $1,288 million, an increase of $93 million from Q1 2024, with diluted earnings per share rising to $2.52 from $2.23[3] - Total revenues for Q1 2025 were CAD 12,517 million, an increase from CAD 12,283 million in Q1 2024, representing a growth of 1.9%[39] - Net income for Q1 2025 was CAD 1,288 million, compared to CAD 1,195 million in Q1 2024, reflecting an increase of 7.8%[39] - Earnings per share (diluted) for Q1 2025 were CAD 2.52, up from CAD 2.23 in Q1 2024, indicating a growth of 13.0%[39] - Total expenses for Q1 2025 were CAD 10,829 million, slightly up from CAD 10,711 million in Q1 2024, indicating a 1.1% increase[62] Cash Flow and Dividends - Cash flows from operating activities were $1,527 million, up from $1,076 million in Q1 2024, while cash flows excluding working capital increased to $1,760 million from $1,521 million[11] - The company returned $307 million to shareholders through dividends in Q1 2025, with a declared second quarter dividend of $0.72 per share[7] - Dividends declared on common stock increased to CAD 367 million in Q1 2025 from CAD 321 million in Q1 2024, representing a growth of 14.3%[39] - Free cash flow for Q1 2025 was CAD 1,150 million, significantly higher than CAD 595 million in Q1 2024, representing a 93% increase[58] Production and Operations - Upstream production averaged 418,000 gross oil-equivalent barrels per day, with Kearl production at 256,000 barrels per day, down from 277,000 barrels per day in Q1 2024 due to extreme cold weather[11] - Downstream throughput averaged 397,000 barrels per day, with refinery capacity utilization at 91%, down from 94% in Q1 2024 due to additional maintenance[22] - Gross crude oil production for Q1 2025 was 413,000 barrels per day, slightly down from 416,000 barrels per day in Q1 2024[46] Capital Expenditures and Projects - Capital and exploration expenditures totaled $398 million, a decrease from $496 million in Q1 2024[11] - Capital and exploration expenditures for Q1 2025 totaled CAD 398 million, down from CAD 496 million in Q1 2024, a decrease of 19.8%[44] - Construction of Canada's largest renewable diesel facility at the Strathcona refinery is on track for startup in mid-2025[4] - The Leming SAGD project is expected to start up in late 2025, with anticipated peak production of around 9,000 barrels per day[11] Asset and Debt Management - Total assets as of March 31, 2025, were CAD 43,889 million, an increase from CAD 42,513 million in the previous year[39] - Total debt decreased to CAD 4,006 million from CAD 4,127 million year-over-year, showing a reduction of 2.9%[39] Cost Management - Cash operating costs for Q1 2025 were CAD 1,947 million, compared to CAD 1,911 million in Q1 2024, reflecting a 1.9% increase[64] - Unit cash operating cost for the Upstream segment in Q1 2025 was CAD 31.31 per oil-equivalent barrel, up from CAD 31.04 in Q1 2024[66] - The Upstream segment's cash operating costs were CAD 1,178 million in Q1 2025, down from CAD 1,189 million in Q1 2024, showing a decrease of 0.9%[64] - The Downstream segment's cash operating costs increased to CAD 631 million in Q1 2025 from CAD 583 million in Q1 2024, a rise of 8.2%[64] Miscellaneous - Chemical net income for the quarter was $31 million, down from $57 million in Q1 2024[11] - There were no identified items impacting net income in Q1 2025 and Q1 2024, providing a clearer view of operational performance[60] - The company reported proceeds from asset sales of CAD 11 million in Q1 2025, up from CAD 4 million in Q1 2024[58] - The company plans to renew its normal course issuer bid in June 2025[6]

Core Viewpoint - Imperial Oil (IMO) is expected to report quarterly earnings of $1.48 per share, a decline of 10.3% year-over-year, while revenues are forecasted to increase by 21.9% to $11.11 billion [1]. Earnings Estimates - The consensus EPS estimate has been revised 7.2% lower over the last 30 days, indicating a collective reevaluation by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock performance [3]. Key Metrics Projections - Analysts project 'Gross Oil-Equivalent Production' to reach 436.72 KBBL, up from 421 KBBL a year ago [5]. - 'Gross Natural Gas Production' is estimated at 29.86 Mcf, slightly down from 30 Mcf in the same quarter last year [5]. - 'Gross Total Crude Oil Production' is forecasted to be 427.13 KBBL, compared to 416 KBBL a year ago [5]. Daily Production Estimates - 'Gross Crude Oil and NGL Production per day - Conventional' is expected to be 4.77 KBBL, down from 5 KBBL in the same quarter last year [6]. - 'Net Crude Oil and NGL Production per day - Kearl' is projected at 180.17 KBBL, down from 183 KBBL a year ago [6]. - 'Net Crude Oil and NGL Production per day - Cold Lake' is estimated at 108.58 KBBL, consistent with last year's figure of 108 KBBL [7]. Additional Production Insights - 'Gross Crude Oil and NGL Production per day - Syncrude' is expected to reach 76.01 KBBL, up from 73 KBBL a year ago [8]. - 'Gross Crude Oil and NGL Production per day - Cold Lake' is projected at 154.07 KBBL, compared to 142 KBBL last year [8]. - 'Total Refinery throughput' is expected to be 417.56 KBBL, up from 407 KBBL in the same quarter last year [9]. Sales Projections - 'Net Petroleum Products Sales' is estimated at 469.33 KBBL, compared to 450 KBBL a year ago [10].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Imperial Oil despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Imperial Oil is expected to report quarterly earnings of $1.48 per share, reflecting a year-over-year decrease of 10.3%, while revenues are projected to be $11.11 billion, an increase of 21.9% from the previous year [3]. - The consensus EPS estimate has been revised down by 9.9% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, making it challenging to predict an earnings beat [10][11]. - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, which historically leads to a positive surprise nearly 70% of the time [8]. Historical Performance - In the last reported quarter, Imperial Oil exceeded the expected earnings of $1.42 per share by delivering $1.69, resulting in a surprise of +19.01% [12]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [13]. Market Reaction Considerations - An earnings beat or miss alone may not dictate stock movement, as other factors can influence investor sentiment [14]. - Although Imperial Oil does not appear to be a strong candidate for an earnings beat, investors should consider additional factors before making investment decisions [16].