Key Takeaways IMO targets 2026 production of 441,000-460,000 boe/d, with reliability gains and growth at Kearl & Cold Lake.IMO plans C$2-C$2.2B in 2026 capital spending, prioritizing high-value upstream projects and cost reductions.IMO forecasts 441K-460K boe/d in 2026 as refinery upgrades and turnarounds support long-term returns.Imperial Oil Limited (IMO) , a leader in Canada's oil and gas sector, has outlined its strategic vision for 2026, focusing on driving robust, sustainable growth while maximizing v ...

Canada's Imperial Oil said on Monday it plans to increase capital spending and upstream production in 2026 as it doubles down on higher-return oil sands projects, aiming to lower costs and generate st... ...

CALGARY, Alberta--(BUSINESS WIRE)--Imperial (TSE: IMO, NYSE American: IMO) today provided its corporate guidance outlook for 2026. The company's strategy remains focused on maximizing the value of its existing assets and progressing advantaged high-value growth opportunities while delivering industry- leading returns to shareholders. 2 "Our 2026 plan builds on Imperial's strong foundation and positions the company to structurally increase cash flow, by progressing towards volume and unit cash cost targets a ...

It’s not often I cover integrated businesses like this. Imperial Oil ( IMO ) has it all, an upstream, midstream, downstream and chemicals business. While the midstream might not be a reportable segment, it does help transform oil andMy name is Andres Veurink and I have been in the financial markets for over a decade at this point, spending the majority of that in a hedge fund here in Rotterdam, working my way up as an analyst. My work relfect rigourious standards as I myself have a very high standard as to ...

It’s not often I cover integrated businesses like this. Imperial Oil ( IMO ) has it all, an upstream, midstream, downstream and chemicals business. While the midstream might not be a reportable segment, it does help transform oil andMy name is Andres Veurink and I have been in the financial markets for over a decade at this point, spending the majority of that in a hedge fund here in Rotterdam, working my way up as an analyst. My work relfect rigourious standards as I myself have a very high standard as to ...

Core Viewpoint - RBC Capital has raised the price target for Imperial Oil Limited (IMO) to C$118 from C$117 while maintaining a Sector Perform rating [1] Financial Performance - Imperial Oil reported revenue of C$12.05 billion, a decrease of over 9% compared to the previous year [3] - Cash flow from operating activities increased to C$1.798 billion, up from C$1.487 billion in Q3 2024 [3] - The company achieved an average production of 316,000 barrels per day, marking its highest quarterly production in the asset's history [3] Operational Highlights - The company announced a restructuring aimed at enhancing cash flow and delivering strong shareholder returns [2] - Downstream performance was strong, with refinery capacity utilization reaching 98% [2] - The new Leming SAGD development at Cold Lake is nearing its first output [3] Company Overview - Imperial Oil Limited is a Canadian integrated energy company involved in upstream oil and natural gas production as well as downstream refining and petroleum product marketing [4]

Core Insights - Imperial Oil Limited (IMO) has significantly outperformed its peers and benchmarks in 2025, with a stock surge of approximately 57.9%, compared to 21.8% for the Canadian Oil & Gas Exploration and Production sub-industry and only 6% for the broader Oils & Energy sector [1] Company Overview - Based in Calgary, Imperial Oil is involved in the entire oil and gas value chain, from extraction to refining and distribution, including a substantial share of Canada's jet fuel and asphalt production [3] - The company benefits from its relationship with ExxonMobil, which provides access to advanced technology and global expertise [3][10] Performance Drivers - Record upstream production was achieved in Q3 2025, with an average of 462,000 oil-equivalent barrels per day, driven by the Kearl asset [7] - Successful execution of lower-emission projects, with expectations that over 40% of production at Cold Lake will come from these technologies by 2030 [8] - The integrated business model allows Imperial Oil to hedge against market volatility, with stronger downstream margins offsetting weaker upstream realizations [12] Challenges - The chemical segment reported a decline in earnings, with Q3 earnings dropping to C$21 million from C$28 million a year ago due to weaker polyethylene margins [14] - Potential slowdown in shareholder returns in early 2026 due to reliance on commodity prices and the timing of share buybacks [16] - Long gestation period for next-generation technologies like Enhanced Bitumen Recovery Technology (EBRT), with commercial deployment not expected until early 2027 [17] - Significant exposure to volatile commodity prices, with crude oil prices averaging $64.97 per barrel in Q3 2025, down from $75.27 the previous year [18] Conclusion - Overall, Imperial Oil has demonstrated strong performance, particularly in upstream production and lower-emission projects, supported by its strategic partnership with ExxonMobil [19] - However, challenges such as weak chemical segment earnings, potential slowdowns in shareholder returns, and sensitivity to crude oil price volatility could impact future profitability [20]

Group 1: Canadian Energy Sector Overview - The Canadian energy sector, particularly oil and gas stocks, has reached a new all-time high, including dividends, reflecting strong performance [2][4] - The investment thesis for Canadian oil and gas stocks has proven successful, with the index (XEG-T) increasing by 410% since October 2020, as companies have heavily invested in their projects and are well-positioned for lower price environments [4][8] - Canadian pipeline companies are also increasing their volumes, with TC Energy and Enbridge being highlighted as strong performers in the sector [6][8] Group 2: Key Companies in the Sector - Major companies such as Canadian Natural Resources (CNQ), Imperial Oil (IMO), Suncor Energy (SU), and Tourmaline Oil (TOU) are favored investments, with many accounts holding these stocks [5] - Fortis Inc. reported net earnings of CAD 409 million for Q3 2025 and increased its dividend by 4.1%, with a capital plan of CAD 28.8 billion for 2026-2030 [17] - Brookfield Infrastructure Partners operates in various sectors, including utilities, and has a valuation that is 7.9% higher than its current price [19] Group 3: Performance and Future Outlook - The performance of Canadian energy holdings is beneficial for Canadian investors and indices, with materials being a significant driver of stock outperformance compared to the U.S. [8][12] - Analysts have noted the durability of earnings in Canadian regulated utilities, with companies like Fortis and Hydro One showing strong growth trajectories [11][12] - The long-term outlook for the utility sector suggests a reliable total return in the high-single to low-double digits, driven by sustainable dividend growth [12]

Core Insights - Imperial Oil Limited (IMO) reported third-quarter 2025 adjusted earnings per share of $1.57, exceeding the Zacks Consensus Estimate of $1.44, but down from $1.71 in the same quarter last year [1][10] - Revenues of $8.8 billion fell short of the Zacks Consensus Estimate of $11.1 billion and decreased from $9.7 billion year-over-year, attributed to weak performance in both Upstream and Downstream segments [2][10] - The company returned C$366 million to shareholders through dividend payments during the quarter [2] Financial Performance - The company announced a quarterly dividend of 72 Canadian cents per share, payable on January 1, 2026, to shareholders of record as of December 3, 2025 [3] - Total expenses were C$11.3 billion, down from C$11.7 billion year-over-year and below the prediction of C$12.4 billion [13] - Cash flow from operating activities was C$1.8 billion, an increase from C$1.5 billion in the prior year [14] Segment Performance - Upstream revenues were C$4.1 billion, down from C$4.6 billion year-over-year and missing expectations of C$5.1 billion, with net income of C$728 million compared to C$1 billion in the previous year [4] - Average upstream production was 462,000 gross oil-equivalent barrels per day, up from 447,000 boe/d year-over-year and exceeding expectations of 450,000 boe/d [5] - Downstream revenues decreased to C$13.2 billion from C$14.6 billion year-over-year, missing expectations of C$13.6 billion [8] Production and Pricing - Total gross bitumen production at Kearl averaged 316,000 barrels per day, an increase from 295,000 barrels per day in the third quarter of 2024, driven by improved reliability [6] - Bitumen price realizations were C$68.22 per barrel, down from C$77.24 year-over-year, while synthetic oil averaged C$91.12 per barrel compared to C$104.41 in the prior year [8] - The company recorded petroleum product sales of 464,000 barrels per day, down from 487,000 barrels per day in the third quarter of 2024 [11] Strategic Initiatives - Imperial Oil announced restructuring plans to streamline operations by centralizing corporate and technical functions, aiming to enhance cash flow and deliver superior shareholder returns [3]

Financial Performance - Net income for Q3 2025 was CAD 539 million, down 56.4% from CAD 1,237 million in Q3 2024, with diluted earnings per share decreasing from CAD 2.33 to CAD 1.07[52] - Net income excluding identified items for Q3 2025 was CAD 1,094 million, compared to CAD 1,237 million in Q3 2024[84] - Cash flows from operating activities for Q3 2025 were CAD 1,798 million, compared to CAD 1,487 million in Q3 2024, reflecting favorable working capital impacts[60] Production and Operations - Total production at Kearl increased to 316,000 barrels per day in Q3 2025, compared to 295,000 barrels per day in Q3 2024, driven by improved reliability[56] - Refinery throughput increased to 425,000 barrels per day in Q3 2025, up from 389,000 barrels per day in Q3 2024, with refinery capacity utilization rising to 98%[59] Market Conditions - Average bitumen realizations decreased by CAD 9.02 per barrel, while synthetic crude oil realizations fell by CAD 13.29 per barrel due to lower marker prices[53] - The average price of West Texas Intermediate (WTI) was USD 64.97 per barrel in Q3 2025, down from USD 75.27 per barrel in Q3 2024[55] Shareholder Returns - The company paid CAD 366 million in dividends during Q3 2025, with a per share dividend of CAD 0.72, up from CAD 0.60 in Q3 2024[61] - The company plans to accelerate share repurchases under its normal course issuer bid program, with a maximum of 25,452,248 common shares to be purchased by June 28, 2026[79] Risks and Uncertainties - Key risks include changes in global supply and demand for oil and gas, economic conditions, and regulatory events that could impact performance[87] - The company anticipates no material near-term financial impacts from recent trade-related actions announced by the United States[51] - The company emphasizes that forward-looking statements are based on current expectations and may differ materially from actual results due to various risks and uncertainties[86] - The company does not guarantee future performance and cautions against undue reliance on forward-looking statements[88] - Market risks for the nine months ended September 30, 2025, remain consistent with those discussed in the annual report for the year ended December 31, 2024[89]