Imperial Oil Stock Near 52-Week High: Should You Consider Buying?

Core Insights - Imperial Oil Limited (IMO) shares closed at $92.96, near its 52-week high of $93.09, reflecting a 38.6% gain over the past year, outperforming the sub-industry and broader oil and energy sector [1][9] - The company has demonstrated strong performance compared to peers such as Gibson Energy Inc., Suncor Energy Inc., and Cenovus Energy Inc., which gained 14.3%, 15%, and 4.4% respectively [2][3] Company Performance - Imperial Oil is recognized as one of Canada's most resilient energy companies, with a diversified portfolio that includes upstream, downstream, and chemicals [4] - The company achieved record upstream production averaging 427,000 barrels of oil equivalent per day (boe/d), the highest second-quarter level in over 30 years, with Kearl reaching 275,000 gross barrels per day [6][9] - The Strathcona renewable diesel facility, the largest in Canada, is expected to enhance the company's clean energy profile and long-term growth [7][10] Financial Strength - Imperial Oil has returned over C$20 billion to shareholders since 2020, including C$15 billion in buybacks, and has a strong track record of dividend growth, with a quarterly dividend of 72 Canadian cents per share [11] - The company ended the second quarter with C$2.4 billion in cash and modest debt of C$4 billion, indicating a strong balance sheet and financial flexibility [12] Growth Prospects - Future growth initiatives, such as the Leming SAGD redevelopment expected to bring first oil by late 2025, further enhance the company's medium-term outlook [12] - The backing from ExxonMobil provides Imperial Oil with unmatched financial strength and access to low-cost capital, positioning it well for long-term value creation [4][13]