Core Viewpoint - Imperial Oil (IMO) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years, indicating a company's earnings outlook [1][2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4][6]. Recent Developments for Imperial Oil - Analysts have raised their earnings estimates for Imperial Oil, with the Zacks Consensus Estimate increasing by 15.5% over the past three months [8]. - For the fiscal year ending December 2025, Imperial Oil is expected to earn $5.82 per share, reflecting a year-over-year change of -11.7% [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Imperial Oil to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for near-term price increases due to favorable earnings estimate revisions [10].

Core Viewpoint - Imperial Oil (IMO) is currently outperforming the Oils-Energy sector, with a year-to-date gain of 6.6% compared to the sector's average return of -1.8% [4]. Group 1: Company Performance - Imperial Oil is ranked 2 (Buy) in the Zacks Rank, indicating a positive earnings outlook [3]. - The Zacks Consensus Estimate for Imperial Oil's full-year earnings has increased by 15.5% over the past three months, reflecting improving analyst sentiment [3]. - The company belongs to the Oil and Gas - Integrated - Canadian industry, which is currently ranked 88 in the Zacks Industry Rank, with its stocks losing about 8.3% year-to-date [5]. Group 2: Sector Comparison - The Oils-Energy group, which includes 247 companies, is currently ranked 8 within the Zacks Sector Rank [2]. - NextDecade (NEXT), another Oils-Energy stock, has returned 0.7% year-to-date, indicating it has also outperformed the sector [4][6]. - The Oil and Gas - Production Pipeline - MLB industry, to which NextDecade belongs, is ranked 4 and has moved -0.9% year-to-date [6].

Operational Efficiency and Technology - The company completed its multiyear program to convert 81 haul trucks to autonomous operation at the Kearl site, enhancing productivity and reducing costs [175]. - The company's operational efficiency is crucial for competitive performance, requiring continuous management focus on cost control and productivity enhancements [171]. - The company relies on research and development from both its own organization and ExxonMobil to maintain competitive positioning and adapt to technological changes [172]. Economic and Market Factors - Current inflationary pressures have persisted, impacting operating costs such as energy, transportation, and materials, which could adversely affect financial results [168]. - The company’s future business results depend on its ability to manage both external economic factors and internal capital allocation effectively [169]. - Low commodity prices could adversely affect reserves development and overall financial performance [185]. Future Production and Reserves - Future production and cash flows are highly dependent on the company's ability to replace produced reserves through exploration, appraisal, and acquisitions [184]. - Economically recoverable oil and natural gas reserves estimates involve significant uncertainties, including geological and engineering factors [185]. - Future net cash flows are subject to variances that could be material, affecting production, revenues, and operating costs [186]. - Actual production and operating expenditures may differ substantially from initial estimates, leading to financial implications [186]. Regulatory and Compliance Issues - Regulatory changes, including environmental regulations, may impose significant compliance costs and impact project viability [185]. - The company’s capital investment guidance in lower-emission investments is contingent on the availability of opportunities and public policy support [16]. Competition and Market Position - The company faces competition from alternative energy sources and established competitors as it pursues lower-emission business opportunities [182]. - The company’s reputation is a critical asset, influenced by operational incidents, consumer perceptions, and progress in energy transition efforts [183]. Cybersecurity Concerns - Cybersecurity threats are a significant concern, with the company experiencing several cyber-attacks on suppliers and partners in 2024, none of which had a material impact [180]. Financial Implications of Abandonment - Abandonment and reclamation costs, including mining operations, are critical factors in estimating future cash flows [185].

Group 1 - Imperial Oil (IMO) is outperforming the Oils-Energy sector with a year-to-date return of 8.4%, compared to the sector average of 4.5% [4] - The Zacks Rank for Imperial Oil is 2 (Buy), indicating strong analyst sentiment and a positive earnings outlook, with a consensus estimate for full-year earnings increasing by 2.4% over the past quarter [3] - The Oil and Gas - Integrated - Canadian industry, which includes Imperial Oil, is ranked 86 in the Zacks Industry Rank, with an average return of 3.7% this year [5] Group 2 - Kolibri Global Energy Inc. (KGEI) is another Oils-Energy stock that has outperformed the sector, with a year-to-date increase of 41.2% [4] - The consensus estimate for Kolibri Global Energy Inc.'s current year EPS has risen by 28.3% over the past three months, and it also holds a Zacks Rank of 2 (Buy) [5] - The Alternative Energy - Other industry, to which Kolibri Global Energy belongs, is ranked 60 and has gained 13.3% this year [6]

Core Insights - Imperial Oil reported revenue of $9.01 billion for the quarter ended December 2024, a decrease of 6.4% year-over-year, and EPS of $1.69, down from $1.81 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $11.2 billion by 19.54%, while the EPS exceeded the consensus estimate of $1.42 by 19.01% [1] Financial Performance - Total refinery throughput was 411 KBBL, slightly above the average estimate of 405.67 KBBL [4] - Gross crude oil and NGL production per day from Kearl was 212 KBBL, exceeding the average estimate of 209.9 KBBL [4] - Net petroleum products sales were 458 KBBL, below the average estimate of 485.08 KBBL [4] - Refinery capacity utilization was 95%, higher than the average estimate of 93.8% [4] - Gross oil-equivalent production reached 460 KBBL, surpassing the average estimate of 449.15 KBBL [4] - Gross natural gas production was 29 Mcf, slightly below the average estimate of 30.28 Mcf [4] - Total petrochemical sales were 174 KTon, significantly above the average estimate of 128.35 KTon [4] - Net crude oil and NGL production per day from conventional sources was 5 KBBL, exceeding the average estimate of 4.66 KBBL [4] - Net crude oil and NGL production per day from Cold Lake was 118 KBBL, above the average estimate of 111.99 KBBL [4] - Gross crude oil and NGL production per day from Cold Lake was 157 KBBL, exceeding the average estimate of 149.79 KBBL [4] - Gross crude oil and NGL production per day from Syncrude matched the average estimate of 81 KBBL [4] - Gross crude oil and NGL production per day from conventional sources was 5 KBBL, above the average estimate of 3.42 KBBL [4] Market Performance - Shares of Imperial Oil have returned +6.8% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Imperial Oil Limited (IMO) reported fourth-quarter 2024 adjusted earnings per share of $1.69, which beat the Zacks Consensus Estimate of $1.42. This increase was driven by higher production levels, improved bitumen realizations and a year-over-year decrease in total expenses. However, the bottom line declined from the year-ago quarter’s $1.81 due to declining downstream margins and lower realized synthetic crude prices.Revenues of $9 billion missed the Zacks Consensus Estimate of $11.2 billion. The top line ...

Imperial Oil (IMO) came out with quarterly earnings of $1.69 per share, beating the Zacks Consensus Estimate of $1.42 per share. This compares to earnings of $1.81 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 19.01%. A quarter ago, it was expected that this oil and gas and petroleum products company would post earnings of $1.48 per share when it actually produced earnings of $1.71, delivering a surprise of 15.54%.Over the l ...

Calgary, January 31, 2025 Exhibit 99.1 Q4 News Release Imperial announces fourth quarter 2024 financial and operating results | | | Fourth quarter | | | Twelve months | | | --- | --- | --- | --- | --- | --- | --- | | millions of Canadian dollars, unless noted | 2024 | 2023 | ∆I | 2024 | 2023 | ∆I | | Net income (loss) (U.S. GAAP) | 1,225 | 1,365 | (140) | 4,790 | 4,889 | (99) | | Net income (loss) per common share, assuming dilution (dollars) | 2.37 | 2.47 | (0.10) | 9.03 | 8.49 | +0.54 | | Capital and expl ...

Industry Overview - Energy is one of the most volatile sectors, driven by geopolitical tensions, disrupted supply chains, fluctuating demands, and natural disasters [1] Company Performance - Imperial Oil Limited has consistently delivered consistent results despite the uncertainty in the energy sector [1] Author Background - Rick is a Wall Street Journal best-selling author with over 20 years of experience trading stocks and options [2] - His work is covered by authoritative publications including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News [2] - In 2018, Rick wrote "The Financially Independent Millennial" to inspire readers with his story of becoming financially independent at age 35 [2]

The market expects Imperial Oil (IMO) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on January 31, 2025, might help the stock move higher if these key numbers a ...