Imperial Oil Limited · TSX:IMO
Imperial Oil — Shareholder Meeting (April 2019)
37 slides from Imperial Oil's shareholder meeting presentation, Apr 26, 2019
Slide 1: Form 8-K cover page
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 29, 2019 IMPERIAL OIL LIMITED (Exact name of registrant as specified in its c
Slide 2: Item 7.01 Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure On April 26, 2019, Rich Kruger, Imperial Oil Limited’s (the “Company”) chairman, president and chief executive officer, gave a presentation at the Company’s annual general meeting in Calgary, Alberta (the “Presentation”) that included an update on the Company’s cur
Slide 3: Item 9.01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. (d) Exhibits. The following exhibit is furnished as part of this Current Report on Form 8-K: 99.1 A copy of the slides presented during the Presentation. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has du
Slide 4: Annual Meeting of Shareholders
Exhibit 99.1 April 26 Annual Meeting of Shareholders
Slide 5: Cautionary statement
Cautionary statement Statements of future events or conditions in this Forward-looking statements are based on the regulation; currency exchange rates; availability and presentation, including projections, targets, expectations, company’s current expectations, estimates, projections allocation of ca
Slide 6: Meeting proceedings
Meeting proceedings Rich Kruger Chairman, President and CEO Ian Laing Corporate Secretary Imperial │ 2019 │ 3
Slide 7: Muster point
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Slide 8: Meeting proceedings
Meeting proceedings Rich Kruger Chairman, President and CEO Ian Laing Corporate Secretary Imperial │ 2019 │ 5
Slide 9: Audit committee report
Audit committee report Krystyna Hoeg Audit Committee Chair Imperial │ 2019 │ 6
Slide 10: Meeting proceedings
Meeting proceedings Rich Kruger Chairman, President and CEO Ian Laing Corporate Secretary Imperial │ 2019 │ 7
Slide 11: Election of directors
Election of directors David David Krystyna Miranda Rich Jack David Brownell Cornhill Hoeg Hubbs Kruger Mintz Sutherland Imperial │ 2019 │ 8
Slide 12: Shareholder proposals
Shareholder proposals Rich Kruger Chairman, President and CEO Ian Laing Corporate Secretary Imperial │ 2019 │ 9
Slide 13: Chairman’s remarks
Chairman’s remarks Rich Kruger Chairman, President and CEO Imperial │ 2019 │ 10
Slide 14: Global energy outlook
Global energy outlook Energy demand to increase 25% by 2040, oil and gas to remain key Liquids production, mbd 120 100 Population and economic growth drive demand New production 80 All practical and economic energy sources required 60 Oil and natural gas to meet 55-60% of total demand 40 Soc
Slide 15: Canada’s opportunity
Canada’s opportunity Highest quality oil sands expected to be competitive on a global basis Breakeven Brent price, $US/bbl 125 3rd largest liquid reserves globally 100 Record of innovation, responsible development mining 75 Historically conducive investment climate 50 in situ New technologie
Slide 16: Imperial’s operations
Imperial’s operations High quality, integrated, balanced, coast-to-coast asset portfolio Kearl mining F&L marketing Distribution network Syncrude mining Strathcona refinery Sarnia refinery Cold Lake in situ Sarnia chemical Rail terminal Nanticoke refinery Research Imperial │ 2019 │ 13
Slide 17: Imperial’s business model
Imperial’s business model Deliver superior, long-term shareholder value Long-life, competitively advantaged assets Disciplined investment and cost management Value chain integration and synergies High-impact technologies and innovation Operational excellence and responsible growth ExxonMob
Slide 18: Risk management
Risk management Comprehensive management of full spectrum of enterprise risks Strategic Reputational Safety Systematic approach in all areas Fundamental line management responsibility Financial Enterprise Risk Health and and Economic Management Environment Robust compliance processes Market Co
Slide 19: Corporate responsibility
Corporate responsibility Commitment to strong environmental, social and governance principles Guided by ‘Taskforce on Climate-related Financial Disclosures’ Issued inaugural Energy and carbon summary › Reducing GHG intensity of existing and future operations Released Water management summary ›
Slide 20: Safety
Safety Industry leading performance and commitment to ‘Nobody Gets Hurt’ TRIR, incidents per 200,000 hours worked 0.8 0.6 0.4 0.2 0.0 Husky CNRL Cenovus Suncor Imperial 5-year avg. Most recent Source: Company reports - equivalent to 100 workers for one year Imperial │ 2019 │ 17
Slide 21: 2018 results
2018 results Focused on strengthening performance and returning value to shareholders 383,000 boepd $2,314 million Upstream production Net income 392,000 bpd $3,922 million Refinery throughput Cash from operations 504,000 bpd $2,543 million Petroleum product sales Returned to shareholders Imperial │
Slide 22: Upstream assets
Upstream assets $5.3 billion cash generated from operating activities over the last 5 years Production, koebd Kearl Mining - PFT 400 71% interest 300 Kearl Other Syncrude Mining - upgrader 200 25% interest Syncrude 100 Cold Lake Cold Lake In situ – CSS/other 0 100% interest 2009 2018 Gross productio
Slide 23: Kearl performance
Kearl performance Focused on improving reliability, profitability and continued growth Production, kbd 200 Large, high quality mining resource 200 kbd commitment achieved in 2018 100 Other ongoing performance improvements Increasing to 240 kbd+ 0 2014 2015 2016 2017 2018 Gross production, 10
Slide 24: Upstream summary
Upstream summary Near-term growth through reliability and capital efficient projects Production, koebd 450 Sustained production at Cold Lake 400 Supplemental crusher at Kearl Improved reliability at Syncrude 350 Restarting of Norman Wells 300 2018 2019e 2020e Gross production, Imperial share
Slide 25: Upstream growth potential
Upstream growth potential Technology-enabled economic and environmental advancements Kearl Aspen Large portfolio of quality opportunities Syncrude Fort McMurray Chard Focused on in situ developments Corner Clyden CL Expansion Disciplined investment approach Cold Lake Cold Lake Edmonton Pace
Slide 26: Downstream overview
Downstream overview $9.1 billion in cash flow generated from operating activities over the last 5 years Volumes, kbd Strathcona refinery 191 kbd capacity 500 Petroleum product sales 400 Sarnia refinery 119 kbd capacity 300 Refinery throughput Nanticoke refinery 200 113 kbd capacity 100 Fuels marketi
Slide 27: Retail sales
Retail sales Captured #1 market position in 2018, driven by site growth Branded sites, # 2000 1500 1000 2014 2015 2016 2017 2018 Retail market share source: The Kent Group Ltd. Imperial │ 2019 │ 24
Slide 28: Commercial sales
Commercial sales Targeted growth in high value aviation and asphalt segments Sales, kbd 50 Increased fuel sales into major airports 40 › Market leader in growing segment 30 › Over 50% of Ontario market 20 Asphalt projects to increase capacity 10 › Meets growing North American demand › Leveraging
Slide 29: Downstream summary
Downstream summary Positioned for continued industry leading financial and operating performance High performing refineries Scale, integration and logistics Advantaged feedstocks High value sales growth Premium brand advantages Strong sustained cash flow Imperial │ 2019 │ 26
Slide 30: Cash flow
Cash flow Integration resiliency, $33 billion cash from operations over last 10 years Cash from operating activities, $B 10-year average, % 5-year range 5 Max 4 3 Downstream Upstream & Chemical 2 Min 1 0 10-year avg. Imperial │ 2019 │ 27
Slide 31: Financial strength
Financial strength Unmatched balance sheet, optionality and priority access to financial markets YE 2018 debt-to-capital, % 50 Maintain existing assets 25 Pay reliable and growing dividend Invest in high value projects 0 CNRL Cenovus Suncor Husky Imperial Return surplus cash to shareholders
Slide 32: Shareholder distributions
Shareholder distributions $2.5 billion returned through dividends and share purchases in 2018 Dividend per share, $ 0.80 100+ years of uninterrupted dividend payment › 24 consecutive years of growth 0.60 › 8.7% 5-year compound annual growth 0.40 Reinstated major buyback program in 2017 › $2.6B i
Slide 33: 2019 Q1 results
2019 Q1 results Continued focus on enhancing financial and operating performance 388,000 boepd $293 million Upstream production Net income 383,000 bpd $1.0 billion Refinery throughput Cash from operations 477,000 bpd $510 million Petroleum product sales Returned to shareholders Imperial │ 2019 │ 30
Slide 34: Why Imperial?
Why Imperial? Distinct competitive advantages that deliver long-term shareholder value Asset base Growth opportunities High quality, long-life assets across Large inventory of opportunities to the portfolio support future upstream growth Operational excellence Technology leadership Technical, operat
Slide 35: Q&A
Slide 36: Scrutineers’ report
Scrutineers’ report Ian Laing Corporate Secretary Imperial │ 2019 │ 33
Slide 37: Annual Meeting of Shareholders
April 26 Annual Meeting of Shareholders