Imperial Oil Limited · TSX:IMO
Imperial Oil — Corporate Update (November 2017)
33 slides from Imperial Oil's corporate update, Nov 1, 2017
Slide 1: Business Update
Business Update November 1 Exhibit 99.1
Slide 2: Cautionary statement
Cautionary statement Statements of future events or conditions in this report, including projections, targets, expectations, estimates, and business plans are forward-looking statements. Actual future financial and operating results, including demand growth and energy source mix; production growth a
Slide 3: Global energy outlook
Imperial 2017 3 Source: International Energy Agency, ExxonMobil 2017 Energy Outlook, WoodMac 0 30 60 90 120 2015 2040 Liquids production, mbd Global energy outlook Demand expected to increase 25% by 2040, oil and gas to remain key New Existing demand growth ±5% annual base decline 80% of 2040 demand
Slide 4: Canada's opportunity
Imperial 2017 4 Source: 2017 BP Statistical Review 0 100 200 300 Canada’s opportunity Uniquely positioned to meet demand, requires global competitiveness Stable, trade-driven economy World scale resources High regulatory standards Technology key to growth Oil reserves, billion barrels
Slide 5: Strategic priorities
Deliver industry leading performance in reliability, safety and operations integrity Be the most valued partner with key stakeholders within our industry Leverage technology, integration and ExxonMobil to differentiate versus competition Aggressively capture new opportunities and manage existing por
Slide 6: Milestones 2013-2017
Startup of Cold Lake Nabiye expansion Rebranding Husky truck transport sites to Esso Commissioned Edmonton rail terminal Acquired interest in Celtic assets Startup of first phase at Kearl Startup of second phase at Kearl Rebranding 200+ retail sites under Mobil brand 2013 2014 2015 2016 2017 Sale of
Slide 7: Scope of operations
Imperial 2017 7 Scope of operations Nationwide leadership across the full value chain Syncrudemining Kearl mining Cold Lake in situ Rail terminal F&L marketing Strathcona refinery Sarnia chemical Sarnia refinery Nanticoke refinery Research Distribution network
Slide 8: Upstream assets
Imperial 2017 8 1Gross production, IMO share 0 100 200 300 400 500 1987 1997 2007 2017 Upstream assets Large, long-life predominantly oil sands portfolio Production, koebd1 Kearl Mining—PFT 71% interest Cold Lake In situ – CSS 100% interest Syncrude Mining—upgrader 25% interest $7.5 billion cash fro
Slide 9: Cold Lake
Imperial 2017 9 1Gross production Cold Lake Industry-leading in situ operation with continued growth potential Production, kbd1 0 40 80 120 160 200 2014 2015 2016 YTD17 Base production Growth History of strong performance Recent growth with Nabiyestart-up 160 kbdnear-term average <$12/bblUS cash ope
Slide 10: Cold Lake enhancement
Imperial 2017 10 Cold Lake enhancement Initiatives to further drive performance and offset natural decline Steam management Drilling program Wellbore utilization Optimize distribution to highest value areas + LASER application + Facility debottlenecking Maximize use of existing wellbores + Enhanced
Slide 11: Kearl
Imperial 2017 11 1Gross production, 100% interest 0 40 80 120 160 200 2014 2015 2016 YTD17 Kearl Large, long-life mining operation focused on improving reliability Production, kbd1 Producing below design capacity + PFT technology operating as planned + Challenges associated with ore prep Progressing
Slide 12: 2017 reliability improvements
Imperial 2017 12 Flow system Mine equipment 2017 reliability improvements Actions completed to achieve annual production of 200 kbd Improved ore prep performance + Crushers and dump hoppers + Ore conveyor drive chains + Crusher teeth and bearings Enhanced piping durability + Primary separation cells
Slide 13: Ongoing reliability improvements
Imperial 2017 13 Front-end redundancy Flow distribution optionality Add supplemental crushing capacity + Offset equipment downtime + Create surge bin conveyor redundancy Install slurry piping interconnections + Minimize maintenance impacts + Ability to optimize flow to facilities Ongoing reliability
Slide 14: Syncrude
Imperial 2017 14 1Gross production, IMO share 0 30 60 90 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Production, kbd1 Syncrude High-potential asset with priority on eliminating one-time events 2016 2017 Actual production Event impact Unplanned downtime reduction + Rigorous inspection, maintenance plans + “Bad actor” perfo
Slide 15: Near-term production
Imperial 2017 15 1Gross production, IMO share 200 250 300 350 400 YTD17 2017e 2018e Near-term production Growth associated with reliability at Kearl and Syncrude Production, koebd1 Improve ore prep performance at Kearl Eliminate one-time events at Syncrude
Slide 16: Upstream resources
Imperial 2017 16 1 IMO share, before royalties, definitions from the Canadian Oil and Gas Evaluation Handbook, Presented in accordance with National instrument 51-101 2 Proved reserve life based on 2016 production rates Upstream resources Large, high quality resource base offers significant potentia
Slide 17: Technology key to meeting economic and environmental objectives
Imperial 2017 17 Technology key to meeting economic and environmental objectives Pilot results, indexed 0 50 100 SA-SAGD LASER CSS SAGD CSP GHG intensity, indexed1 1Boone World Heavy Oil Conference, industry reports, internal estimates Proprietary technology development + Lab designed and tested + F
Slide 18: Unconventional growth
Imperial 2017 18 Unconventional growth Completed asset evaluations and acquisitions of contiguous acreage Celtic acquisition 2013 2014 2015 2016 2017 Trilogy acreage acquisition Yoho acreage acquisition Resource assessment: seismic evaluation, exploratory drilling, subsurface analysis Duvernayand Mo
Slide 19: Downstream assets
Imperial 2017 19 2007 2012 2017 0 250 500 Downstream assets Leveraging operational excellence and integration to capture market value Volumes1, kbd Strathcona refinery Fuels marketing Refinery throughput Sarnia refinery Nanticoke refinery Petroleum product sales Capacity 191 kbd Capacity 119 kbd Cap
Slide 20: Refining performance
Imperial 2017 20 70 80 90 100 Refining performance Relentless pursuit of reliability and profitability Utilization, % Regretted loss, % Prior 6 years1 2015-17 average 1Excludes Dartmouth refinery Global best practices + Equipment strategies + Maintenance planning + Turnaround execution Enhancing pro
Slide 21: Competitive ranking
Imperial 2017 21 Source: 2016 Solomon survey, includes 96 refineries in North America (13 in Canada) Competitive ranking Leading refining performance in North America, top-tier in Canada Imperial refineries Canadian industry ex. Imperial 1st 2nd 3rd 4th Energyefficiency Non-energycash opex Totalcost
Slide 22: Strathcona refinery cogeneration
Imperial 2017 22 Strathcona refinery cogeneration Improve energy efficiency, reduce GHGs and lower operating costs Supports energy efficiency objectives + Similar facilities in use at other operations + Sarnia refinery / Cold Lake / Kearl / Syncrude + Significant net GHG emissions reduction $250 mil
Slide 23: Downstream synergies
Imperial 2017 23 Refining and supply Downstream synergies Value captured through integrated manufacturing and marketing plans Superior position in core markets + Uniquely strong in Ontario and western regions + Comprehensive distribution network + Value chain based decision making Premium customer o
Slide 24: Fuels marketing
Imperial 2017 24 Fuels marketing Aggressively capturing new business and meeting customer needs New customer offerings Strategic nationwide accounts Long-term supply agreements + Introduction of Synergy fuels nationwide + Conversion of former Loblaw’s locations to Mobil brand + Conversion of Husky t
Slide 25: Chemical
Imperial 2017 25 Chemical Highly profitable business, leader in North American polyethylene PE rotational and injection molding Specialty customers and products Operational excellence + Facility integrated with Sarnia refinery + Proximity to major customers Enhancing profitability + Investment in ne
Slide 26: Demonstrating value of integration throughout the business cycle
Demonstrating value of integration throughout the business cycle Cash from operating activities, $ billion 1 Five-year average , % 5 4 3 2 Upstream Downstream & other 1 0 2012 2013 2014 2015 2016 YTD17 1 For the five year period ended December 31, 2016 Imperial 2017 26
Slide 27: Financial strength
Financial strength Strong balance sheet, optionality and priority access to financial markets 2Q17 debt to capital, % 50 Leverage XOM relationship 25 Borrow on most attractive terms Maintain capital structure flexibility 0 CNQ CVE SU HSE IMO BBB+ BBB A- BBB+ AA+ Ratings1 1Based on S&P Global debt ra
Slide 28: Dividends
Dividends Committed to paying shareholders a reliable and growing dividend Annual dividend Quarterly average per share1, C$ WTI, US$/bbl 0.75 125 100 100+ years of consecutive payment 0.50 75 23 years of consecutive growth 0.25 50 25 6.5% 10-yr compounded growth rate 0.00 0 1997 2007 20172 1Adjusted
Slide 29: Share buybacks
Share buybacks History of returning cash to shareholders and preserving value Shares outstanding, millions1 2,000 1,500 Repurchased 50% of shares since 1995 1,000 Expanded buyback program June 2017 + Increased NCIB to 3% shares outstanding 500 Returned ~$375M year-to-date 0 1995 3Q17 1Adjusted for t
Slide 30: Financial resilience
Financial resilience Strength provides flexibility under a range of oil prices 2017-21 annual average, C$ billion 5 4 $60 Ability to meet highest priorities 3 $50 Significant cash flow leverage 2 Growth 1 Sustaining $40 Flexibility for new opportunities Dividend1 0 Dividend Cash flow and capex from
Slide 31: Why Imperial?
Why Imperial? Distinct competitive advantages that deliver long-term value Asset base Growth opportunities High quality, long-life assets across Large inventory of opportunities to support the portfolio future upstream growth Operational excellence Technology leadership Technical, operational and fi
Slide 32: Question period
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Slide 33: For more information
For more information: Dave Hughes Manager, Investor Relations +1 587.476.4743 dave.a.hughes@exxonmobil.com imperialoil.ca twitter.com/imperialOil linkedin.com/company/imperialOil youtube.com/imperialOil