With ExxonMobil owning 69.6% of Imperial Oil the company was always going see an impact from Exxon’s analyst day after $XOM’s aggressive earnings and CapEx outline. The affect on $IMO is where XOM ranks Oil Sands in their future strategy, the answer not highly.
With ExxonMobil owning 69.6% of Imperial Oil the company was always going see an impact from Exxon’s analyst day after $XOM’s aggressive earnings and CapEx outline. The affect on $IMO is where XOM ranks Oil Sands in their future strategy, the answer not highly.
Imperial Oil’s Kearl Oil Sands Operation
The research side of Barclays Bank issued a note saying they were fine-tuning estimates to reflect Exxon pushing back their assumed start up of the future growth SA-SAGD Aspen project to mid/late 2022 from late 2021. This was taken from management commentary during XOM’s 2018 Analyst Day on Wednesday 3/7/18.
Barclays noted it is clear that XOM ranks its oil sands prospects among the low-end of its opportunity set, especially considering its more profitable long-cycle options in LNG and deepwater.
Barclays said that “following IMO’s Nov. 2017 Analyst Day it seemed likely that the company was teeing up an FID of Aspen Phase 1 (75 mb/d) during 1H18, which now seems incrementally unlikely.”
As a result of this change Barclays revised their 2021 EPS to C$3.85 (C$3.90 prior) and 2022 EPS to C$3.25 (C$3.50 prior).
About Imperial Oil
Imperial Oil Limited is Canada’s second-biggest integrated oil company. ExxonMobil $XOM had a 69.6 percent ownership stake in the company as of December 31, 2012. It is a significant producer of crude oil, diluted bitumen and natural gas, Canada’s major petroleum refiner, a key petrochemical producer and a national marketer with coast-to-coast supply and retail networks. Imperial Oil has 1700 service stations with majority owned third parties and sold 497 stations in 2016.
Its retail operations include Esso-brand service stations and On the Run/Marché Express and Tiger Express-brand convenience stores. It is also known for its Imperial owns 25 percent of Syncrude, which is one of the world’s largest oil sands operations. Imperial is also in a joint venture oil sands mining operation with ExxonMobil Corp., called Kearl Oil Sands. Most of Imperial’s production is from its Alberta Oil sands and the Norman Wells oil field in the Northwest Territories.
The company is headquartered in Calgary, Alberta, Imperial Oil was based in Toronto, Ontario, until 2005.
Source: Imperial Oil, Exxon Lays Out Aggressive CapEx and Earnings Outlook
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