Profile: Imperial Oil Ltd (IMO.TO)

IMO.TO on Toronto Stock Exchange

51.81CAD
30 Oct 2014
Price Change (% chg)

$-0.15 (-0.29%)
Prev Close
$51.96
Open
$51.62
Day's High
$51.84
Day's Low
$50.84
Volume
486,467
Avg. Vol
634,007
52-wk High
$57.96
52-wk Low
$44.10

Search Stocks

Imperial Oil Limited (Imperial), incorporated on May 1, 1978, is an integrated oil company. The Company is engaged in the exploration for, and production and sale of, crude oil and natural gas. In Canada, it is a producer of crude oil and natural gas, a petroleum refiner and a marketer of petroleum products. The Company is also a producer of petrochemicals. The Company’s operates in three segments: Upstream, Downstream and Chemical. Upstream operations include the exploration for, and production of, conventional crude oil, natural gas, synthetic oil and bitumen. Downstream operations consist of the transportation and refining of crude oil, blending of refined products, and the distribution and marketing of those products. Chemical operations consist of the manufacturing and marketing of various petrochemicals. On February 26, 2013, ExxonMobil Canada acquired Celtic Exploration Ltd. (Celtic).

Upstream

As of December 31, 2012, approximately 6% of the Company’s proved reserves were proved undeveloped reserves reflecting volumes of 2,318 million oil-equivalent barrels. During 2012, wells drilled to add productive capacity included 28 bitumen development wells in undeveloped areas of existing phases at Cold Lake, three development evaluation wells at Cold Lake, four net Horn River pilot wells and four net tight oil development wells.

As of December 31, 2012, the Company held a 100% interest in the Mackenzie Delta fields and a 50% interest in Beaufort Sea. Imperial also has interests in other oil sands leases in the Athabasca and Peace River areas of northern Alberta. The Company holds a 70.96% participating interest in the Kearl oil sands project, a joint venture with ExxonMobil Canada Properties, a subsidiary of Exxon Mobil Corporation. The project is located approximately 40 miles north of Fort McMurray, Alberta. During 2012, average net production at Cold Lake was about 123,000 barrels a day and gross production was about 160,000 barrels a day. Most of the production from Cold Lake is sold to refineries in the northern United States. The majority of the remainder of Cold Lake production is shipped to certain of the Company’s refineries and to third-party Canadian refineries.

The Company holds a 25% participating interest in Syncrude, a joint venture established to recover shallow deposits of oil sands using open-pit mining methods to extract the crude bitumen. The Syncrude operation, located near Fort McMurray, Alberta, mines a portion of the Athabasca oil sands deposit. The produced synthetic crude oil is shipped from the Syncrude site to Edmonton, Alberta by Alberta Oil Sands Pipeline Ltd. During 2012, Syncrude’s net production of Syncrude’s net production of synthetic crude oil was about 69,000 barrels a day and gross production was about 72,000 barrels a day. The Company’s conventional oil producing asset is the Norman Wells oil field in the Northwest Territories. Imperial produces natural gas from a number of gas fields located in the Western provinces, primarily in Alberta, which accounts for about 70% of the Company’s gross production of conventional crude oil.

The Company’s bitumen leases include about 193,000 acres of oil sands leases near Cold Lake and an area of about 34,000 net acres at Kearl. Imperial has about 80,000 net acres of undeveloped, mineable oil sands acreage in the Athabasca region. In addition, the Company also has interests in other bitumen oil sands leases in the Athabasca and Peace River areas totaling about 141,000 net acres. The Company’s share of Syncrude joint-venture leases covering about 63,000 net acres accounts for the entire synthetic oil acreage. Imperial holds interest in an additional 1,046,000 net acres of developed and undeveloped land in Western Canada related to conventional oil and natural gas. Included in this number is a total acreage position of about 170,000 net acres at Horn River, British Columbia. Land holdings in Canada lands include acreage in the Beaufort Sea of about 252,000 net acres, the Summit Creek area of central Mackenzie Valley totaling about 222,000 net acres and the Mackenzie Delta of about 184,000 net acres. The company’s land holdings in the Orphan Basin totaled about 224,000 net acres.

Downstream

The Company supplements its own production with purchases from others. Crude oil from foreign sources is purchased by Imperial through Exxon Mobil Corporation. The Company owns and operates four refineries. The Strathcona refinery operates lubricating oil production facilities. The Strathcona refinery processes Canadian crude oil, and the Dartmouth, Sarnia and Nanticoke refineries process a combination of Canadian and foreign crude oil. In addition to crude oil, the Company purchases finished products to supplement its refinery production. The Company maintains a nationwide distribution system, including 22 primary terminals, to handle bulk and packaged petroleum products moving from refineries to market by pipeline, tanker, rail and road transport. Imperial owns and operates natural gas liquids and products pipelines in Alberta, Manitoba and Ontario and has interests in the capital stock of one crude oil and two products pipeline companies.

The Company markets more than 600 petroleum products throughout Canada under brand names, such as Esso and Mobil, to all types of customers. Imperial sells to the motoring public through Esso retail service stations. On average, during 2012, there were more than 1,770 retail service stations, of which about 470 were company owned or leased, but none of which were Company-operated. The Canadian farm, residential heating and small commercial markets are served through about 50 branded agents and resellers. It also sells petroleum products to industrial and commercial accounts, as well as to other refiners and marketers.

Chemical

The Company’s Chemical operations manufacture and market ethylene, benzene, aromatic and aliphatic solvents, plasticizer intermediates and polyethylene resin. The Company's petrochemical and polyethylene manufacturing operations are located in Sarnia, Ontario, adjacent to the Company’s petroleum refinery. There is also a heptene and octene plant located in Dartmouth, Nova Scotia.

Company Address

Imperial Oil Ltd

Station M
P.O. Box 2480
CALGARY   AB   T2P 3M9
P: +1800.5673776
F: +1800.3670585

Search Stocks