Imperial Oil Limited · TSX:IMO
Imperial Oil — Barclays CEO Energy-Power Conference 2013
31 slides from Imperial Oil's conference presentation, Sep 13, 2013
Slide 1: Barclays CEO Energy-Power Conference
Barclays CEO Energy-Power Conference Rich Kruger | September 13, 2013 —
Slide 2: Cautionary statement
Cautionary statement This presentation contains forward-looking information on future production, project start-ups and future capital spending. Actual results could differ materially due to changes in project schedules, operating performance, demand for oil and gas, commercial negotiations or other
Slide 3: Imperial Oil's business model
Imperial Oil’s business model 3 Deliver superior, long-term shareholder value 1.Long-life, advantaged assets 2.Value chain integration and synergies 3.Disciplined investment, cost management 4.High-impact technologies and innovation 5.Operational excellence, responsible growth ExxonMobil relationshi
Slide 4: Integration and synergies across the business chain
Chemical Upstream Downstream Integration & synergies Delivering value and competitive advantage across the business chain World-class producing assets Largest petroleum refiner in Canada Leading polyethylene market share
Slide 5: Industry-leading return on capital employed; unmatched shareholder distributions
IMO HSE CVE CNRL SU Source: Bloomberg, company publications ROCE 5-year average % IMO HSE SU CNRL CVE Shareholder distributions 2003-2012 $ billions Dividends Share reductions Industry-leading return on capital employed Unmatched shareholder distributions
Slide 6: Strong competitive performance
Strong competitive performance Industry-leading upstream profitability and record downstream earnings IMO Competitors IMO Competitors Source: Barclays Research; Competitors is a volume-weighted average and includes CVE, HSE, SU 2012 upstream profitability $/bbl 2012 downstream profitability $/bbl
Slide 7: Long-life, high-quality proved reserves
Long-life, high-quality proved reserves 3.6 billion oil-equivalent barrels, concentrated in world-class assets Syncrude Cold Lake Kearl Other YE 2012 proved reserves billion oeb* * after royalties Cold Lake Kearl Syncrude
Slide 8: Executing plans to achieve profitable growth
Executing plans to achieve profitable growth Investing about $40 billion this decade focused on upstream projects Average capex per year* $ billions 2000-2009 2010-2019 * Upstream, Downstream, Chemical & Corporate
Slide 9: New opportunities
New opportunities Oil sands—mining Oil sands—in-situ Conventional * before royalties Production volumes to double by about 2020 Nearly 200 kbd of additional liquids in funded projects Production outlook* kboed Existing Under construction To be funded Starting up ~2020
Slide 10: Financial strength to support growth plans
Financial strength to support growth plans Strong balance sheet maintained under a wide range of scenarios 10 S&P AAA rating Resiliency to crude prices Flexibility for new opportunities * Projected at May 31, 2013, includes Celtic acquisition $55/bbl WTI $95/bbl WTI Debt to capital* %
Slide 11: Cold Lake: a world-class in-situ operation
Cold Lake: a world-class in-situ operation 11 Ownership: 100% Imperial Oil Commercial start-up: 1985 Current production: 150+ kbd gross Active wells: ~ 4,500 Cumulative production: 1.2 billion bbls Proved reserves: 1.1 billion bbls* Non-proved resource: 2.9 billion bbls* * after royalties
Slide 12: Consistently delivering nameplate capacity at low unit costs
Consistently delivering nameplate capacity at low unit costs Industry-leading operating performance Reliability 3-year average1 % of capacity 2010-2012 1 Peters & Co. Limited, geoSCOUT 2 FirstEnergy Capital Corp., FirstFacts May 21, 2013; figures include cash G&A and stock-based compensation expense
Slide 13: Significantly increasing resource recovery
Significantly increasing resource recovery Leveraging high-impact technologies and operational best practices Cold Lake demonstrated recovery % 1970’s 1980’s 1990’s 2000’s 2010+ Megarow steaming 3D seismic analysis Commercialization of cyclic steam stimulation Liquid addition to steam Steamflood Lim
Slide 14: Expansion via "design one, build multiple" approach
Expansion via “design one, build multiple” approach Over 1.2 billion barrels produced, continued growth planned Cold Lake production* kbd Maskwa Mahihkan Nabiye Mahkeses Pilots 2012 2015 * before royalties
Slide 15: Cold Lake Nabiye project 56% complete
Cold Lake Nabiye project 56% complete Funded in 2012 for $2 billion, 40 kbd additional production “Design one, build multiple” replicates Mahkeses On schedule and on budget for late 2014 start-up
Slide 16: Kearl: a next generation mining development
Kearl: a next generation mining development Ownership: 71% Imperial Oil 29% ExxonMobil Commercial start-up: 2013 Gross production: 110 kbd (initial)* 345 kbd (ultimate)* Recoverable resource: 4.6 billion bbls* * Gross, before royalties
Slide 17: Kearl's competitive advantages
17 Kearl’s competitive advantages Proprietary froth treatment Competitive cost structure High-quality resource Environmental performance Adding value and establishing new performance standards
Slide 18: Initial development update
18 Initial development update Bitumen production kbd, gross 2Q13 July August Current rates greater than 80 kbd First sales occurred in 3Q ?Crude runs at Joliet in August, Sarnia in September ?4Q deliveries to 3rd parties 110 kbd expected in late 2013 ?Addressing equipment issues Production ramp-up c
Slide 19: Increasing Mining Efficiency
Increasing Mining Efficiency 9.5 10.0 10.5 11.0 11.5 12.0 Total volume to bitumen in place ratio Top-tier resource quality Increasing Processing Efficiency A definitive, long-term unit cost advantage Athabasca undeveloped mining resources ore grade, % bitumen 19 Kearl Source: development plan applic
Slide 20: Onsite upgrader
Onsite upgrader “Naphthenic” Froth Treatment Refinery Refinery “Paraffinic” Froth Treatment Asphaltenes Bitumen Sediment and water Bitumen Sediment and water 20 Producing pipeline-quality crude without an on-site upgrader Existing mines Kearl Synthetic crude Proprietary froth treatment Dilbit Diluen
Slide 21: Improved environmental performance
600Wells-to-wheels GHG Emissions kgCO2/bbl of refined products Improved environmental performance Kearl emissions comparable to average barrel of crude refined in U.S. Source: IHS CERA Oil Sands, Greenhouse Gases, and U.S. Oil supply Getting the Numbers Right – 2012 Update 12005 2Canadian oil sands
Slide 22: Cost structure competitive with SAGD
Realization (vs. Kearl) CO2 tax Sustaining capital Initial development Opex—natural gas Opex—other Average SAGD 3.0 SOR Top-tier SAGD 2.5 SOR Cost structure competitive with SAGD Profitable across a wide range of oil prices 22 Source: FirstEnergy Capital Corp., FirstFacts, February 14, 2013; costs i
Slide 23: Kearl development plan
Kearl development plan kbd, gross 40+ year asset life Gross production plateau of 345 kbd, Imperial Oil share 71% Initial Development Expansion Project Third Ore Preparation Plant Plant Debottleneck 110 kbd 110 kbd 80 kbd 45 kbd Funded
Slide 24: Kearl expansion project 52% complete
24 Kearl expansion project 52% complete On schedule and on budget for late 2015 start-up Funded in 2011 for $8.9 billion, 110 kbd additional production Contractor continuity with KID, constructing full-size modules in Edmonton
Slide 25: Market access strategy
Market access strategy Commitments to new pipeline capacity kbd Currently transporting 400 kbd from Alberta by pipeline ?Secured 390 kbd of additional capacity ?Keystone, Gulf Coast Access, Keystone XL, Trans Mountain, Energy East Advancing rail options to mitigate pipeline uncertainties Pursuing a
Slide 26: A history of success, commitment to further innovate
A history of success, commitment to further innovate 26 Advancing game-changing technologies SA-SAGD Solvent-assisted SAGD CIMA Chemically induced micro agglomeration CSP Cyclic solvent process NAE Non-aqueous extraction in-situ mining Now Future Time to commercialization
Slide 27: Large, non-proved resource base
Large, non-proved resource base 13 billion oil-equivalent barrels to support further growth 27 YE 2012 resource base billion oeb, excludes 2013 acquisitions (Celtic and Clyden)* * after royalties In-situ Mining Other Liquids Gas Growth opportunities Progressing
Slide 28: New in-situ opportunities
New in-situ opportunities Resource potential 295,000 net acres 3+ billion barrels Top-tier quality Enabling technology SAGD/SA-SAGD Potential scope 9+ phases 35-45 kbd per phase Commercial start-up Post-2020 Forward plans Regulatory applications starting in 2013/14 Development planning on-going, pro
Slide 29: Unconventional gas opportunities
Unconventional gas opportunities Large acreage position, development optionality Resource potential Enabling technology Potential scope Forward plans 50:50 Imperial Oil, ExxonMobil 495,000 net acres 15+ TCF Liquids-rich Montney Horizontal drilling Hydraulic fracturing Large-scale LNG project Favoura
Slide 30: Long-term growth potential of 1+ million barrels per day
30 * before royalties 0 ~2020 ~2030 New technologies/opportunities Oil sands—mining Oil sands—in-situ Conventional Production outlook* kboed Long-term growth Potential of 1+ million barrels per day by about 2030
Slide 31: For more information
For more information www.imperialoil.ca For more detailed investor information, or to receive annual and interim reports, please contact: John A. Charlton Manager, Investor Relations Imperial Oil Limited 237 Fourth Avenue SW Calgary, Alberta T2P 3M9 Email: john.a.charlton@esso.ca Phone: (403) 237-45
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