Imperial Oil Limited · TSX:IMO
Imperial Oil — Q1 2025 Earnings Presentation
71 slides from Imperial Oil's earnings presentation, May 2, 2025
Slide 1: Cold Lake Investor Day
Cold Lake Investor Day April 17, 2025 Disclaimer: Due to changes to the Competition Act, this archived information is provided solely for historical information and reference purposes. This information does not constitute an active representation of Imperial. Imperial fully disclaims any liability f
Slide 2: Emergency evacuation route
Emergency evacuation route Imperial | 2025 2
Slide 3: Land Acknowledgement
Land Acknowledgement Spirit Gardens, Nathan Philips Square, Toronto, Ontario TOimages - stock.adobe.com Imperial | 2025 3
Slide 4: Our speakers
Our speakers Brad Corson John Whelan Dan Lyons Cheryl Gomez-Smith Scott Maloney Chairman and President Chief financial officer Senior vice-president, Vice-president, Downstream chief executive officer Upstream Peter Shaw Vice-president, investor relations Imperial | 2025 4
Slide 5: Agenda
Agenda 09:00 Company outlook and strategy Brad Corson 09:30 Upstream outlook Cheryl Gomez-Smith 10:15 Downstream & Chemicals outlook Scott Maloney 10:45 Break 11:00 Financial outlook Dan Lyons 11:15 Closing remarks Brad Corson / John Whelan 11:30 Q&A 12:00 – 1:00 Lunch with Imperial’s management and
Slide 6: Opening remarks
Strathcona refinery Opening remarks Brad Corson Chairman and chief executive officer Imperial | 2025 6
Slide 7: Strong earnings and cash flow
Strong earnings and cash flow Renewable Diesel facility, Strathcona Underpinned by continued operational excellence Net income Cash from Ops Free Cash Flow¹ 2024 financial highlights $4.8B $6.0B $4.2B Five-year cumulative (2020-2024) $17.6B $26.5B $20.5B ¹ Non-GAAP financial measure – see supplement
Slide 8: Strong shareholder returns in 2024
Strong shareholder returns in 2024 Effectively returning cash to shareholders $1.2B IMO share price since Jan 2024 20% Dividends paid $120 $100 $80 $60 2024 total $40 shareholder return¹ $2.7B $20 $0 Q1 Q2 Q3 Q4 Q1 Share buybacks 1 See supplemental information for definition Imperial | 2025 8
Slide 9: Strong shareholder returns since 2020
Strong shareholder returns since 2020 Consistently returning cash to shareholders 227% IMO share price 251% Dividend increase¹ $120 $100 $80 $60 Total $40 shareholder 32% $20 return² $0 2020 2021 2022 2023 2024 2025 Shares repurchased 1 Q1 2020 vs Q1 2025 quarterly dividend declared per share ² See
Slide 10: 2024 key accomplishments
2024 key accomplishments Delivering results across the value chain Highest annual Upstream Highest-ever Kearl production Grand Rapids SA-SAGD start-up Enhanced Bitumen Recovery production in over 30 years Achieved less than US $20/bbl exceeds expectations Technology (EBRT) pilot² unit cash
Slide 11: Energy improves quality of life
Energy improves quality of life More than 4 billion people live below modern standards for life expectancy, education and income Source: 2024 ExxonMobil’s Global Outlook Imperial | 2025 11
Slide 12: Global oil outlook requires significant investment
Global oil outlook requires significant investment Canada well positioned to support required supply Significant investment required to meet global demand › Production decline of ~15% per year without further investment › Production decline of ~4% per year if investment constrained to existing fie
Slide 13: Imperial's strategy to win
Imperial’s strategy to win Increase cash flow and deliver industry-leading shareholder returns Maximize value of existing assets › Targeted optimization and further strengthen reliability › Continued structural cost improvements Invest in select growth opportunities › Kearl enhancements, Cold La
Slide 14: Low Carbon Solutions business strategy
Low Carbon Solutions business strategy Leveraging decades of energy experience to develop profitable low-carbon solutions Carbon capture and storage Heavy industry and power generation Low Carbon Solutions strategic priorities Building on our technology, scale, project Advanced lower-emissions fue
Slide 15: Sustainability priorities
Sustainability priorities Advancing responsible energy solutions for a better tomorrow ¹ Scope 1 and 2 Imperial | 2025 15
Slide 16: What you will hear today
What you will hear today Well-positioned for the future Growing Imperial’s Investing in technology Delivering superior Engaged in competitive advantages and innovation shareholder value energy transition Segment strategies focused Technology solutions Strong cash flow Leveraging on growth, flexibili
Slide 17: Upstream outlook
Kearl Upstream outlook Cheryl Gomez-Smith Senior vice-president, Upstream Imperial | 2025 17
Slide 18: Upstream strategy
Upstream strategy Cold Lake Increasing volumes with lower unit cash costs¹ Maximize value from long-life, low-decline assets Delivering safety and operational excellence Targeting industry-leading unit cash costs¹ and reliability Growing volumes through select, disciplined capital investment
Slide 19: 2024 Upstream performance
2024 Upstream performance Kearl Continued strong safety and operational performance Kearl Record full-year production¹ of 281 kbd Achieved below US $20/bbl unit cash costs² target First sub-20 day turnaround Cold Lake Increased full-year production by 10% from 2023 Grand Rapids first oil a
Slide 20: Long-life, low-decline asset base
Long-life, low-decline asset base High-quality stable production base Production¹ forecast Koebd 500 Multi-decade production profile 400 › ~3.3 billion boe of proved and probable reserves² 300 433-456 koebd production outlook for 2025 200 25% volume growth 2019-2029¹ 100 Leveraging GHG-advan
Slide 21: Path to lower unit cash costs
Path to lower unit cash costs Transformation through structured and sustainable approach Focused on reducing unit cash costs¹ through volume growth and structural cost reductions Executing sustainable improvements via structured, rapid execution approach › Development of opportunity inventory in
Slide 22: Unleashing digital across the Upstream
Unleashing digital across the Upstream Significant portfolio of opportunities Initiatives in development Business intelligence automated process mapping Digital investment principles: Improved inspections and modernized condition-based monitoring Capital-efficient Fast payback ~ $1.2B Gene
Slide 23: Digital technology driving value
Digital technology driving value Delivering efficiencies, volume growth and creating operator bandwidth Advanced controls Robotics Field surveillance Improved reliability and analytics > $30M/yr savings > 2 kbd captured > 2 kbd potential > 2 kbd captured Routine inspections and surveillance Machine
Slide 24: Kearl: strong foundation supports potential for 300+ kbd
Kearl: strong foundation supports potential for 300+ kbd Growing volumes with lower unit cash costs¹ Production² forecast kbd 300 Delivered outstanding results in 2024 250 300 › Best-ever annual production² (281 kbd) 281 270 › 4% growth in volume vs. 2023 200 › 12% reduction in unit cash costs¹ vs
Slide 25: Kearl: enhanced recovery
Kearl: enhanced recovery 1 Ore selectivity Improved recovery every step along the way Observe, analyze, select ore to minimize waste to plant 2 Process aids 1 Enhance recovery with chemical aids, analyzers and real time automation tools 2 3 Flotation columns Enhanced secondary bitumen recovery in ex
Slide 26: Kearl: unlocking equipment full potential
Kearl: unlocking equipment full potential Driving productivity and reliability through technology and metallurgy improvements Haul truck fleet Mine materials and design Hydrotransport lines Oil sands’ first fully automated Doubled interval between truck Larger diameter lines, doubling truck fl
Slide 27: Kearl: turnaround optimization
Kearl: turnaround optimization K1, Kearl Improvement journey with path to four-year interval Maximizing the base through turnaround excellence › Strong safety and cost performance › Extended turnaround interval between each plant from 12 to 24 months › Reduced duration to sub-20 days in 2024 Pla
Slide 28: Cold Lake: transformation supports potential for 165+ kbd
Cold Lake: transformation supports potential for 165+ kbd Transforming asset through technology to grow volumes at lower unit cash costs¹ Production forecast kbd Delivered strong results in 2024 200 › Full-year production (148 kbd) 150 › 22 kbd from Grand Rapids SA-SAGD in Q4 100 › 10% growth in v
Slide 29: Cold Lake: optimizing base to maximize value
Cold Lake: optimizing base to maximize value Strategic capital deployment to increase productivity Sustaining LASER Offsetting base decline with capital efficient investments Compact rig infilling Warm Flow Nabiye Key projects: LASER¹, compact rig infilling, Warm Flow Growth SAGD ~10 kbd per pro
Slide 30: Cold Lake: accretive transformative growth projects
Cold Lake: accretive transformative growth projects Grow volumes by leveraging solvent technology and existing infrastructure Grand Rapids SA-SAGD Leming SAGD First commercial application of SA-SAGD 2025 target start up Exceeding early production expectations 9 kbd production at peak Deliv
Slide 31: Syncrude
Syncrude Delivering improvements in production and costs through shareholder alignment Syncrude Delivered solid results in 2024 › Full-year production¹ (75 kbd) › 8% reduction in unit cash costs² vs. 2023 Continued focus on sustaining volumes and lowering cost structure › Near-term capital incre
Slide 32: Upstream investment outlook
Upstream investment outlook Investing for value through advantaged volume growth Average annual capital expenditures¹ forecast Advantaged volume and value growth $B › Kearl secondary recovery $1.6 › Cold Lake Leming SAGD › Cold Lake SA-SAGD (Mahihkan and Grand Rapids) $1.2 2025-2026 key sustaini
Slide 33: Upstream cash flow outlook
Upstream cash flow outlook Structurally improved cash flow Average annual cash from operating activities $B $9 $8.1 B Outlook for improved cash flows across a range of price cases $100 US WTI $6 Pipeline of highly accretive investments $5.3 B $4.7 B $76 US WTI Focused on industry-leading unit
Slide 34: Future Upstream opportunities
Future Upstream opportunities Advancing transformative technology to unlock globally competitive growth opportunities Advancing EBRT pilot in Aspen area, anticipated start up 2027 › Pilot to derisk technology and validate solvent recoverability › Increased volume delivery and higher plateau rates
Slide 35: Upstream summary
Upstream summary Cold Lake Growing volumes, lowering unit cash costs¹ and applying technology Advantaged long-life portfolio Structurally improving cash flow generation Kearl growing volumes at lower unit costs¹ Cold Lake transforming through technology Capital-efficient growth opportuniti
Slide 36: Downstream and Chemicals
Calgary distribution terminal Downstream and Chemicals Scott Maloney Vice-president, Downstream Imperial | 2025 36
Slide 37: Downstream and Chemicals strategy
Downstream and Chemicals strategy Strathcona refinery Maximize earnings and cash flow across the value chain Deliver industry-leading performance in safety, reliability and operations integrity Drive lowest cost of supply through strong utilization and reliability Strategically expand efficien
Slide 38: Structurally advantaged Downstream and Chemicals business
Structurally advantaged Downstream and Chemicals business Robust margins throughout the commodity cycle Integrated assets 10-year average gasoline and diesel crack¹ Upstream, refining, and chemicals US $/bbl 60 US CDN Proximity To crude, feedstock, and market Durable 40 competitive advantage Advanta
Slide 39: Canadian fuel market update
Canadian fuel market update Robust liquid fuel demand Balanced overall gasoline market today Canadian fuel demand outlook¹ Indexed, 2024 = 100 › Significant gasoline supplier in advantaged markets › Positioned to grow gasoline market share as demand moderates 100 Stable distillate demand outlook
Slide 40: Imperial Downstream and Chemical network advantage
Imperial Downstream and Chemical network advantage Access to advantaged Canadian crudes and attractive Canadian markets Eastern manufacturing hub 237 kbd crude capacity Western manufacturing hub Efficient western Canadian crude pipeline connectivity 197 kbd crude capacity Sarnia and Nanticok
Slide 41: Downstream and Chemical manufacturing advantage
Downstream and Chemical manufacturing advantage Maximizing benefits of integration and molecule uplift through advantaged crude and feedstock flexibility Refinery crudes and production Chemical plant feedstock kbd kta 600 400 Other lights ~400 kbd throughput in 2024 Other products Other • 20% heavy
Slide 42: Refining performance
Refining performance Canada’s largest refiner, industry-leading performance Refinery crude throughput and utilization forecast Throughput Utilization kbd 100% 400 Driving operational excellence and asset maximization 80% 300 › Continuously improve turnaround performance 60% › Industry leading Solo
Slide 43: Fuels, asphalt and lubricant marketing
Fuels, asphalt and lubricant marketing Industry-leading brands and product suite Proud supporter of Canadian Strategic retail branded wholesale model hockey for over 90 years › Site count growth of 35% since 2016 to 2,600 sites currently › Targeting capital efficient market share growth › Strategi
Slide 44: Strathcona Renewable Diesel advantage
Strathcona Renewable Diesel advantage Structurally advantaged project, positioned for the future Fully integrated With existing refinery infrastructure and utilities Large scale Capacity of 20 kbd of renewable diesel production Feedstock advantaged Close proximity and export-parity pricing Proprieta
Slide 45: Strathcona renewable diesel market
Strathcona renewable diesel market Structurally advantaged market, with strong underlying market fundamentals Increasing demand for renewable diesel in Canada › Canada is a net importer of biodiesel and renewable diesel › Layered Canadian and British Columbia regulations¹ create demand for lower c
Slide 46: Downstream and Chemicals investments
Downstream and Chemicals investments Strategic investments in low-capital, high-return business Average annual capital expenditures¹ forecast $B Increase in growth capital from 2022-2025 $0.7 for Strathcona Renewable Diesel project Disciplined approach to capital expenditures¹ Selective invest
Slide 47: Downstream and Chemicals profitability
Downstream and Chemicals profitability Resilient business model, focused on maximizing profitability Annual net income $B $4 Resilient, reliable performance across the cycle $3 Fully integrated, flexible business model to capture maximum value Focusing on profitable volume and margin growth $2
Slide 48: Downstream and Chemicals summary
Downstream and Chemicals summary Sarnia Integrated across the value chain to maximize earnings Structurally advantaged Downstream and Chemicals business Industry-leading operational performance Access to global expertise through ExxonMobil relationship Highly-integrated assets and coast-to-c
Slide 49: Break
Aerium Analytics Robird, Kearl Break 15 minutes Imperial | 2025 49
Slide 50: Financial outlook
Cold Lake Financial outlook Dan Lyons Chief financial officer Imperial | 2025 50
Slide 51: Current business environment
Current business environment Renewable Diesel facility, Strathcona Well-positioned for strong performance TMX supports heavy oil egress › Tighter and less volatile heavy differentials › Narrower light-heavy spread Tariffs risk › Integration provides natural hedge Supportive forex environment
Slide 52: Financial profile
Financial profile Resilient business model with upside leverage 10-year cash flow from operating activities¹ Integrated, advantaged business model › Upstream: low-cost growth, long-life low decline assets Downstream & Chemical › Downstream: advantaged margins and logistics Upstream › Chemicals: ad
Slide 53: Capital allocation priorities
Capital allocation priorities Committed to returning surplus cash to shareholders Dividend CAGR¹ 30% 20% Reliable and growing dividend 10% › 30 years of consecutive increases › 23% dividend CAGR¹ over past 5 years 0% 10-Year CAGR 5-Year CAGR IMO Peer Avg. Low sustaining capital requirements Shar
Slide 54: Delivering impressive shareholder returns
Delivering impressive shareholder returns Dedicating free cash flow to shareholder returns Annual cash distributions $B $8 $6 Returned $20.3B to shareholders since 2020 $4 $2 Dividend payments of $4.9B › Largest nominal dividend increase of 12 cents per share $0 2020 2021 2022 2023 2024 Q1 2025
Slide 55: Cash operating costs
Cash operating costs Relentless focus on efficiency Refining leads peers² Annual cash operating costs¹ › Process utilization $B › Energy efficiency $9 › Turnaround performance › Non-energy cash costs Upstream increasing production, while reducing cash operating costs¹ $6 › Achieved unit cash cos
Slide 56: Capital expenditure forecast
Capital expenditure forecast Low sustaining capital, high-return growth projects Annual capital expenditures¹ forecast $B $2.5 Forecasted sustaining capital² averages ~$1.4B › Temporary increase in 2025 and 2026 $2.0 • Kearl and Syncrude mine progression › Moderates in 2027-2029 $1.5 Forecasted
Slide 57: Free cash flow and break-even outlook
Free cash flow and break-even outlook Substantial free cash flow¹ across a range of business environments Free cash flow¹ profile² $B $9 Break-evens³ - US $ WTI Cash flow from operations < $25/bbl $6 $3 Sustaining capital⁴ and dividend < $35/bbl $0 $50 WTI $60 WTI $70 WTI $80 WTI $90 WTI $100 WTI 20
Slide 58: 2025 Corporate guidance
2025 Corporate guidance Capital, volumes and planned turnarounds 2025 Full-Year Guidance 2025 Planned Turnarounds Canadian dollars, unless noted Production, throughput and operating costs³ annualized basis, before royalties, Imperial's share Total capital and exploration expenditures¹ $M 1,900 - 2,1
Slide 59: Closing remarks
Strathcona refinery Closing remarks Brad Corson John Whelan Chairman and chief executive officer President Imperial | 2025 59
Slide 60: Reflections on the past five years
Reflections on the past five years Strong past, bright future Resilience through the pandemic and strong recovery Strong operating performance across the integrated business Strategic investments to deliver growth and cost reductions Significant cash generation and shareholder returns Stro
Slide 61: Why Imperial
Why Imperial Confidence in the future High-quality, long-life, low decline upstream assets › Growing volumes and lowering unit cash costs¹ Advantaged downstream and chemicals assets › Maximizing value through integration, logistics flexibility and strong brands Low-cost, high-return growth › P
Slide 62: Imperial's strategy to win
Imperial’s strategy to win Increase cash flow and deliver industry-leading shareholder returns Maximize value of existing assets › Targeted optimization and further strengthen reliability › Continued structural cost improvements Invest in select growth opportunities › Kearl enhancements, Cold La
Slide 63: Q&A
Renewable Diesel facility, Strathcona Q&A Imperial | 2025 63
Slide 64: Cautionary statement
Cautionary statement Statements of future events or conditions in this presentation, including projections, targets, expectations, estimates, and business plans are forward-looking statements. Similarly, discussion of roadmaps or future plans related to carbon capture, transportation and storage, bi
Slide 65: Cautionary statement
Cautionary statement Forward-looking and other statements regarding Imperial's environmental, social and other sustainability efforts and aspirations are not an indication that these statements are material to investors or require disclosure in the company's filings with securities regulators. In ad
Slide 66: Supplemental information
Supplemental information Capital and exploration expenditures Capital and exploration expenditures (or capital expenditures) represents the combined total of additions at cost to property, plant and equipment, additions to finance leases, additional investments and acquisitions; exploration expenses
Slide 67: Supplemental information
Supplemental information Free cash flow Free cash flow is a non-GAAP financial measure that is cash flows from operating activities less additions to property, plant and equipment and equity company investments plus proceeds from asset sales. The most directly comparable financial measure that is di
Slide 68: Supplemental information
Supplemental information Operating costs Operating costs is a non-GAAP financial measure that is the costs during the period to produce, manufacture, and otherwise prepare the company’s products for sale – including energy costs, staffing and maintenance costs. It excludes the cost of raw materials,
Slide 69: Supplemental information
Supplemental information Cash operating costs (Cash costs) Cash operating costs is a non-GAAP financial measure that consists of total expenses, less purchases of crude oil and products, federal excise taxes and fuel charge, financing, and costs that are non- cash in nature, including depreciation a
Slide 70: Supplemental information
Supplemental information Unit cash operating costs (Unit cash costs) Unit cash operating costs is a non-GAAP ratio. Unit cash operating costs (unit cash costs) is calculated by dividing cash operating costs by total gross oil-equivalent production, and is calculated for the Upstream segment, as well
Slide 71: Peter Shaw
Strathcona refinery For more information: Peter Shaw Vice-president, investor relations +1 587.962.4401 peter.g.shaw@esso.ca imperialoil.ca x.com/ImperialOil linkedin.com/company/Imperial-Oil youtube.com/ImperialOil facebook.com/ImperialOilLimited Imperial | 2025 71