IMO.TO - Earnings call 4 2023 | Imperial Oil Limited

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Imperial Oil Fourth Quarter '23 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Peter Shaw, VP, Investor Relations. Please go ahead.

Peter Shaw

Good morning, everybody. Quarter Call. Fourth our to Earnings Conference Welcome Senior I'm including CEO; Brad morning Product by Solutions; Sherri Dan Development Younger, Sustainability, management of team, Imperial's senior the Evers, Administration; Corson, and Vice Senior and President, joined President and Vice of Commercial this Lyons, Finance Vice Senior Chairman, President Simon President and Upstream.

Today's also and of press non-GAAP be assumptions. performance comments release and and reconciliations our conference measures can found Today's depending results information. our Attachment call. the future not definitions factors and most performance are future materially website comments of may number operating link Any is forward-looking and The a recent information include actual available of on to financial measures. can forward-looking reference guarantee a of in to vary contain X with these on this

issued our as detail Forward-looking earnings release information in described and further we morning the are risk fourth Form XX-K. quarter assumptions most recent and this as on factors that our well

these +, our SEDAR EDGAR are documents website. available and All on

you going would financial and opening hand with to update. operations remarks done, then will over Q&A will is then we to who is going those. ask follow a a to with start and I So it Dan, provide an to some to Brad provide this is morning refer Brad update, Once that session.

Brad remarks. I for So opening it to his with that, will over turn

Bradley Corson

Upstream set delivered from advantaged strong capture Kearl to start. Thank welcome with At very your excellent pleased off doing well is and strong year a structurally volumes. off our business capping crude performance continued many the Canadian higher I'm report year drove Earnings to wider and that to very you, significant position, deliver our is Today, for records Peter. value everyone time, morning, same quarter, hope Downstream Call. and Good everybody, the and a our this new discounts. results good production company. I Quarter continue to another new Imperial Fourth to

And XXXX, execute look as ongoing plans for to was very plans our to year, feel you confidence with we've in to of ability capabilities and we've quarter. value confident pleased solid It our the across the a shareholders. generate a I'm our very on as strategic just reflection very entire operational laid hope those XXXX. dividend out well about see today. I we as the Reflecting Imperial's our announced performance we increase

across communities. our execution local including to Specifically, measures we expanding our environmental on and continue operations all action took planned reliable incidents our with at enhancing strong the of address assets, all costs. a turnaround to activity engagements reducing implement our have to and and safe focus operating We monitoring Kearl continued

as advanced And track. project throughout Grand the diesel X outstanding returns. another capital our of on year, discipline delivered for Rapids remain growth high-return we the and projects the year we project, such as maintained of which we renewable both shareholders, And Phase Strathcona

this of minutes, the I strong very will results over detail next few and the So Dan quarter.

commodity and were review These impacts. excluding the let's reflect now working million $X,XXX weaker $X,XXX strong for results by So quarter continued the of prices. when capital cash Kearl, Earnings results. operational activities with operating production quarter from fourth performance from offset million, record

which of and earnings full performance execution successful contributed maintenance year nearly our Full XXXX year saw activities, $X.X billion. to of planned strong operating

when XTO over Upstream history. oil-equivalent divestment per earnings for Following highest XXX,XXX production performance, XX adjusting day production Canada. quarterly achieved the highest the the in barrels gross XXXX's of earnings total second of in We the record fourth is in this years Imperial's quarter,

the about total gross I'll at many asset highest were records at quarterly talk This Kearl, of Our in production, set asset's of a which production quarter record a per by minutes. Kearl. results this XXX,XXX underpinned we each the one in the more delivered is in performance day history. Upstream few in just barrels detail

see undertaken barrels recognize a continue delivering was by refinery size Refining per October. safely this is all of turnaround in we the began of the throughput operating Downstream, but workforce equates our This strong especially and of of the budget XX%, hurt. the September and way of to the XXX,XXX and outcome, the turnaround nobody which averaged in a exceptional I'd to day, performance. utilization of in end of ahead mid in quarter schedule planned like that doing joint in total ensured notable work refinery our ever completed Sarnia, teams for the Sarnia hard below which because In inclusive in got to site Sarnia by largest so chemical scope, plant turnaround and terms only spend. not was

costs Our on reductions even beyond the teams time have been costs. continued record higher the overall able is pleased operating executing discipline energy resulted notable production lower from we made successfully our the very to focus deliver company because was our significantly while see lower financial turnaround activity planned which years. on saw to progress cash I've in across reducing at especially recent compared to costs, the same company

our bid maximize our on October our cash annual shareholders and issuer mid issuer accelerated continue years sheet another allowed returns. substantial successfully to $X.X SIB our an We in of in bid third us NCIB, X by basis normal to returning or course balance strong billion completed then Our December. shareholder to executed

growing shareholders the year for record $X $X.X for a billion In our dividend addition, or since over And announced commitment dividend industry-leading of to of our paid Dan. of billion the is cash and increase our to April million XXXX. reliable second to our highest which highlight also in XXth have this $XXX the X, our nearly we pass dividend. on in morning, quarterly a deliver per shareholder returns XXXX, returns returned I'm consecutive the us With in that, total, cornerstone in increases. $X.XX share XXXX, beginning dividend to of $X.X following things dividends for that of of shareholders. billion XX% A we we pleased positions I'll tripled year we payable year. In quarter total to for

D. Lyons

Thanks, results. with Starting financial Brad.

sale net Downstream, of $X.XXX XXXX. year, For recorded decrease billion, Upstream, we XTO income of activity realized a lower from turnaround realizations the the the on of lower the in full $X.XXX the in reflecting and margins billion in XXXX, gain the of absence higher

margins the business. quarter decrease lower The of we Looking our of the $X.XXX quarter, fourth million net is in income from Downstream at down XXXX. driven by fourth refining $XXX recorded about billion, primarily

the sequential net $XXX and is margins. of third comparison, million quarter fourth quarter bitumen a $X.XXX to our weaker the Moving billion Downstream realizations in from income reflecting lower down Upstream quarter about

offset Looking lower Upstream primarily line. partly bitumen higher quarter, quarter, each turnaround million realizations, Downstream margins. third $XXX driven the $XXX planned volumes higher at weaker by refinery, $X earnings of refining offset million earnings post Sarnia from activities are business the up reflecting of million mainly by from volumes. about down million by third partly $XXX are at

$X cracker of our reflecting Finally, generated volumes lower October. Sarnia earnings turnaround third completed the gas in quarter, business $XX the million million, down from was from that chemical

from in billion. effects year of was generated Cash quarter, third the $X.X billion, operating In working from million flow. $XXX fourth quarter billion $XXX flows from cash down to about about million. were the on quarter. $X.X about activities flow operating capital fourth we about from flows cash Full operating Moving for the $X.X excluding cash activities activities

impact. tax from billion quarter $X.X will As capital, excluding working capital first line recall, billion, earnings. income the driving ended from we working hand. about made on catch-up billion XXXX, flows $X.X with of a in you quarter $XXX We cash operating were year Full million about XXXX, $X.X cash about of payment an the with unfavorable down activities, in

in and for tailings year, the smaller interest Grand project to as quarter the discussing Capital Kearl, production the of Syncrude well just at projects quarter In to increased the and full focused sustain $X.X attributable at over project additional and expenditures primarily year. The the over fourth SA-SAGD Lake the fourth $XXX as of totaled Rapids capitalized progressing spend as at $X.XXX Lake. and Now was course Upstream, rates guidance increased billion the interest CapEx. significantly year our Cold billion. in-pit on Kearl, grow spending Cold million

our XX% as compared dividend quarter $X.XX of of share Brad increase first to a our payable an shareholders, the per dividend. April, morning, foundation fourth distribution or quarter in the spending progressing mainly Shifting In at distributions, we renewable included and project dividend industry-leading longstanding diesel shareholder returns growing fourth demonstrate to strategy. And commitment declared $X.XX to our Downstream, already we is this a cash per reliable share to our Strathcona. of quarter continue deliver to noted,

NCIB fourth $XXX In completed accelerated addition in about issuer most of with $X.X program a December, we we shares. bid million about and purchases outstanding dividend completed our our repurchasing to quarter, in substantial in the billion in October, recent

the in and history, $X.X dividends In of highest our billion total the course $X.X company completed throughout shareholder repurchases $X.X of year, billion, second returns the of total, billion. in we including share

X.X% Our total outstanding share repurchases shares. of XX over shares represent our and million year about over the

it turn performance. to Brad our back Now discuss to I'll operational

Bradley Corson

the per the which XX,XXX of up and third Thanks, day, the day oil-equivalent averaged versus barrels Dan. quarter production quarter XXX,XXX barrels per for XX,XXX Upstream quarter per barrels is up XXXX. versus fourth day

production quarterly over the mentioned XX I in As highest XTO years divestment the when of for this earlier, Canada. adjusting is

the major was saw soften This across and stronger widen. performance driven X quarter, WTI higher in assets. the production all for WCS to differential WTI by we prices the quarter And

year, TMX and would with tightening new see some the of expect months. the coming in we to the have seen differentials, further of start we As tightening the we completion

records stop last in half day barrels XX,XXX day and specifically represents third per of per gross, quarter XXX,XXX previous production best XXX,XXX production December record averaged at single at also per fourth XX. barrels ever quarter. Kearl performance This move up and quarter which of record and barrels day of barrels there. production quarter per production quarterly XXXX. on Kearl day Kearl's was barrels per day about per from day So full the the up don't record second record Kearl. which and the of surpassing now day, achieved the XXX,XXX on we the record XX,XXX production let's fourth XXX,XXX year barrels versus XXX,XXX Kearl set of day, barrels December per and talk just the And

records? our and so proud to target day How achieve. for which a of in been and have team driving they provides an about string present Christmas foundation solid It's low-cost a XXXX. a Kearl growth production the year per to what achieving been barrels able for Kearl, I'm that continue outstanding and XXX,XXX of of really

quarter were cash great turning XX.XX which story. production another due versus ongoing now cash USD And over per costs primarily per Kearl to the barrel also USD of to on decrease the is X operational quarter which efficiencies. operating in a focus strong Unit third operating represents barrel and the costs,

of decrease lower And a per just when are saw operating fourth about which USD energy barrel over cost also for or XXXX unit cost X.XX normalizing XX barrel, barrel X XXXX. Kearl We approximately year, the is full USD and than of per USD USD X.XX versus per barrel at cash ForEx. quarter for lower the per

grow forward, focused further cost reductions we further operating we volumes efficiencies. Going unit and are achieve on as

per Higher Cold XXX,XXX turnaround XXXX. completed higher day, barrels lower XX,XXX planned timing. third quarter primarily quarter of Cold than as as the fourth quarter averaged than by fourth driven was Lake. well for Lake the the So to day of and turning which production cycle the quarter in Nabiye the absence fourth day the production steam was third per per X,XXX quarter barrels barrels now

next-generation Rapids up year of XXXX. circulation X last is of year-end the is profitable expected approximately achieve months. per production to that that which, moving up using over And on by Grand of project, will until fully emissions of deliver to Phase to start first after to a support and the intensity SA-SAGD expected this expected By production injection the X running, X, Once start-up on barrels share and is phase several steam to the Rapids XX% commenced emissions day technology, period production successfully commitment our reduction our an quarter project strategy. is Phase our project in is XX,XXX Grand pleased X continuing This emissions cyclic year solvent to The at existing us technology an the deploy Cold up of we December to today. compared and end ramp important reduce Lake technology. to to use for steam lower project milestone delivering I'm journey to accelerate by to recovery to steam

XXXX was planned I'd on also drilling average of to cyclic brief SAGD wells per an we the production The facility Leming to expect a steam technology focus through emissions about day well completed project. to similar able opportunity with and our to provide take expected at project XXXX that and our in and for lower all XXXX, redevelopment on of like peak. construction. technology. is to update completions be Leming to Start-up the intensity barrels will existing is X,XXX up achieve than to Rapids, Grand XX% is use

quarter well week production fourth favorable the now was in imported the continued per up value of by high of mining XXXX. a as joint third to day the day, bitumen, of planned add a barrels ever the quarter XXXX, in X,XXX Syncrude conditions the quarter production few barrels Higher upgrader and turnaround quarter SSP helping the from and Syncrude comments which due of and suite on And XX,XXX down utilization highest Imperial pipeline for in share strong full is completion history. enabling incremental early averaged per barrels rates venture's fall about Syncrude. shipments resulting as versus year interconnect maintain XX,XXX Throughout fourth versus to to per by production day premium utilization. the of upgrader the

the talk move quarter day, the barrels let's down of day we on about X,XXX day utilization was XXXX, and Downstream. which down and barrels versus quarter fourth XXX,XXX fourth a XX,XXX barrels now In XX%. the reflecting of per a refined of So average an the quarter, per third versus

the opening and utilization ahead final all in starting at and refineries high in history largest we the of As Sarnia remarks, delivered in of in of X end I of completed my below noted the turnaround very site our months the budget schedule year. October,

heavy, pricing contributing In quarter. business across crude the benefited value high addition and lights refining utilization, strong to from the synthetics to advantaged in capture

year utilization, full the and Sarnia; production refineries paving high production production of refineries our full end all process XX% record year, records, record saw our including at production the our and at asphalt Strathcona, distillate other jet achieved diesel annual and Nanticoke; guidance record and For records. which among gasoline, production various was at we achieve many

infrastructure year, tankage is completion Strathcona refinery, our finish our project completed of point. the we has the renewable to been this At continue we most advance and nearing the at diesel and aboveground underground as also

start-up We continue XXXX. in planned to progress towards a

barrels versus Petroleum the X,XXX is product in XXXX. sales third were quarter quarter XXX,XXX per of barrels down fourth the day, which down day versus barrels XX,XXX the quarter per and per day

We XX% jet continue and about historical XXX% levels. demand historical around to to levels of see of XX% gasoline at

spreads quarter, to diesel, gasoline strong strong on demand crack more was whereas jet inventories, was Toronto's Airport. the by subdued. XX%. Diesel demand into supported the cracks by in And low sales Specifically, between XX% Pearson remained were quarter fourth relatively in supported

enhanced wider the we in capture all Canadian-based affected overall see for demand crude product access with as overall margins to robust. discounts spreads quarter-over-quarter, differentials our margins refined grades crude While that products Dan Currently, of network refinery Western refinery to overall Canada. remain were mentioned, crack steady lower continue and our through

as highlight And driven annual chemical -- earnings gas delivered softer as And the the that business between I'd in I'm like $XXX XXXX and down which environment. of publication the our delivered September third margin solid end us versus occurred business a earnings still The to fourth full-year cracker of brings $XX were of $XX in finally, sustainability Despite to XXXX. down million report. our fourth by that these and chemicals. million. million earnings versus million turnaround pressures, the mid quarter $X quarter quarter, lower the October well The in was sorry the

To enabling find for be including security, indigenous future, X are commitment protection in to net water developing Imperial, and successful priorities, valued, includes where opportunities in energy protecting the cultivating ways a capturing environmental partnerships must today's prepared reconciliation of sustainability transition. energy and meaningful and everyone's balance advancing tomorrow. and a promoting to and world, energy biodiversity people At our resources perspectives support while providers affordability in are this pathways communities, economic with workforce our

provides priorities. report these each towards an of sustainability The progress our update on

So business by another to strong underpinned this quarter integrated strong wrap to across model. very finish very quickly another reliable up, year, our was operations

We to continue deliver year. our and our on achieved the commitments guidance full for

As we optimistic year. delivering look in another ahead and XXXX, I'm strong excited very about

delivering successful top dividend a completion the returns well can of another to commitment our for are completed as NCIB value. you we priority to SIB as renewable emissions committed we near Grand as Rapids the in and of reduce December, from our to generate with progress our see remains material project. As also shareholder the excited We're our first now diesel announcement from increase, the Strathcona on I'm with accelerated production today us. plans and making and

updates I while our the bring of look communities. same to attractive continue and maximizing customers value these the on the forward as opportunities focus businesses, to to at changing to our responding we time, existing continuing of needs on you

So like thank once to support. Q&A for as I'd you And move to your always, we'll interest now again continued session. the and

back So Thank I'll it pass Peter. to you.

Peter Shaw

Brad. you, Thank

it appreciate to a could yourself follow-up we X questions can we'd to so that as if get question, as always, As plus many you possible. limit

please you So with line up questions. for that, the open operator, could phone

Operator

with the [Operator from Your of UBS. Manav Instructions] comes Gupta line first question

Manav Gupta

refining amount significant of downtime months. the amount And next X X downtime start of Good appears we quarter. corporate you on When in and your quarter insignificant when first the I'm a the the very look it guys. guidance, amount for very downtime Downstream. in a small second in U.S. at this have Congrats system results. with strong going to border, to of morning, actually I across have you look

the running of good,and half if border are set to people it as to you're relates that extremely running So hard, you not understand, XXXX and I'm cracks hard for across trying up does are well the refining. first

Bradley Corson

Certainly, encouraged the Yes. the activities this feel of year. we we're Thanks year, we're that Manav. half we of for as amount having the key question, as year, move first look mentioned, Yes. maintenance well fair fundamentals, the last positioned first this quarter, of to completed all a the into by ones you the including we

all is prices, market as business, infrastructure and well valued you positions that feedstocks, take crude the of to with lower know, Our reliability. integrated. connected we expect high us strong full well We're advantage to

to expect strong put the margins high-value capture it's in We together, a that product for We market. and all success. formula

So thanks question. that for

Manav Gupta

Perfect. follow-up congrats on getting quick XX. My on cost and Kearl that below

million You and the based is here it million in we should the $XXX earlier call, question kind of My promised on impressive. is your people, you'll records XXXX million are more a talked guidance you for $XXX the $XXX results $XXX versus million. of naturally as this the about do very to think of

just So making of setting understand given at trying guidance more the to end top is you're Kearl. if sense records

Bradley Corson

And Well, records, what's many quite I on long-term thanks a confidence great in as have and objective positions around us to commitment like deliver barrels for and team to that XXX,XXX confidence the so with they outperform a in day. Kearl continue and you, noted, well us. your And excel. been

a higher guidance. confidence end high in the that potential there achieve So XXX,XXX Certainly, I that we of will day. our that's achieve the reflected have and more we'll is barrels

we're a good early working We're we're off start January. day. also tell to that And in towards so I'll year, the you in every but

look potential this let's We'll just about as continue to even we higher in the to So future. deliver but volumes, you. not to continue Thank strong year, the talk results. for

Operator

line Pardy from comes Markets. Capital of RBC question next Greg Your the with

Greg Pardy

that I'm extremely And trying what board. you like and mean from factors the we to I in December. numbers consistently in were big putting mean, at I fourth dig across understand want supported conditions know results record warm, to to a Brad, better in wanted I -- it's so the then I to least were what becoming that? the weather understand, forth. great up bit, and and are little again, set Thanks. just obviously, quarter the

maybe of in the or big XXX getting elsewhere. was to seen we've XXX the numbers of What the sort special So sauce December?

Bradley Corson

super thanks our Greg, those of question and for results Yes, acknowledging for the on your strong And consistency results. Kearl. thanks

I down really lot sauce, it secret to of fundamentals. terms more of comes think In a

all allows operation go have for mine. Certainly, now, performance, for the productivity the we kind productivity factors to weather focus production, of autonomous to reliability all was positive that. us the factor a haul We mine. maximize in way mine contributing which full years that several the it back improve continue to continued fleet months the to Certainly, even the contributing of is and our to of on is in

crushers. all we're And We to then mining managing grade. fully there. that have And of the the benefit then reliability that -- and the when end front then ensures plant, is high very high-quality through ore so seeing some loaded we we're get the

combination So are if it's Kearl They're of what it's a these to of is proud our people at these of quite we're excited sort of continue and actually, say hyper-focused motivated of very and doing there, and set secret on records. proud a there lot them. they're delivering to results, they're a And that factors. extremely sauce, I'd

Greg Pardy

Okay.

second is kind maybe are if TMX you we're on the through not walk The but I've Trans And shipper top Mountain? impacting bottom? of I see the you -- I'm just us But it can just to was sort considered think answer perhaps you telling of curious, is before, a how it asked proprietary. you one business

Bradley Corson

volume between think the split as are products. whether tell as shipper on What's don't it you proprietary or and Thanks a happy view we crude ship to normally I is viewed for volumes we the ship not, Yes. question. in plan we terms of we that to I'm proprietary TMX. total that

with that the shippers system. minor were So other in the on reservations tell relative capacity I you, details will those into made get that of terms I relatively though, you. we've won't to

of for volume, significantly in certainly, but this crude us, additional some is imminent not for at is the of as company, the quarter. more basin. We we're recent the in course. And start crude, system more egress that us us, are for result that products that, producer. still will to us. of differential more efficient a the maybe we have, we about is gives of transportation. But TMX we additional industry believe, tightening have the that quite TMX, value up the we're There second on beginning impact markets but about week some WCS believe sometime of news just on excited which significant very delays, again a as the will not And when will providing a capacity course, It it higher-value and starts higher additional potential which, the in gives broader which I view for optimistic importantly it the as volumes, will quarter, and access was up, significant will capacity targeting capacity start-up place second for with major commented, WCS start-up in which of out of

the not it individual So of us the have is the true on we ship, value. benefit our for barrels biggest will but impact view our

continue see primarily Gulf ARPU We maximum value, Coast. the to into Mid-Continent into the shipping

of optionality west, And the to over markets And long sure position. move where at where great a we're our to continue capture the in direction, go positioned that to so always value us but most and south, having barrels making puts highest looking go are we'll in that's term. those

Operator

Markets. World Our of next Fong the CIBC question comes with from line Dennis

Dennis Fong

autonomous wanted from question continued congrats quarter first operations just and haul. said very reiterate on My Kearl. to strong Greg and here a is what strong I just off, First around

operations over you've run your You now and that completed you are of I installation time where any last takeaways optimization? in the further at you and from was quarter autonomous potential think that that rate quarter indicated on the Kearl. of of seen to the just have pick fleet you terms start-up a had hoping you

Bradley Corson

terms the And Yes. value total quite a of seeing Thanks that transition, you all are driverless as is kind barrel. bringing business. that by trucks, to we of And trucks heavy operating expected trucks. we the haul question. the value now of unit we're use mine autonomous about with as excited XX noted, of we're in per or mean, this of our $X costs XXX% that our lower in autonomous around the delivering for I the

We we're interfaces risk see and increased human because as seeing safety fewer reduced and of well. safety increased machine productivity

can has significant is costs. And these still, that I that it's last expand quarter so for, as at trucks. the autonomous the in beyond or materially we're of no improvement having same volumes been kind our conversion. well, achieve also only we're fleet as the full full to that doubt think, in time, we've autonomous looking of well operating record And heavy that to completed haul because now And the so potential we contributed that this there haul where concept ability realizing just

improve will expand safety. when leverage discussion bringing have this of this productivity, underway this Investor costs, key our to Day it think that we we be And talk year our and so And about can technology of to is the we how can potential kind later get further. I that really to further we improve a lot of reduce work as to element else a where

Dennis Fong

I continuously Kearl the you to to kind barrels development those of very strong a future. where Great. next you well second My kind question, day continuing in production, and is you've a maybe there the or sometime color opportunities XXX,XXX discussed on with Can average the there. shown appreciate with at to you've least respect the recovery as day. optimization of are initiatives and steps? of barrels XXX,XXX engineering opportunities the towards And talk at secondary the that that drive as potentially mine you helped

Bradley Corson

for question. the Yes. Thanks

our Kearl. XXX,XXX to with getting volumes comes first at Kearl at per barrels That's day. focused on We are job When to annual very just highest it volumes #X. XXX. We delivered

we to XXX. XXX. got we'll to Now get get then And to

years of planning several step So investment. time. of engineering, kind a case, one takes this evolution in some it's at But

debottlenecking how all are are that in Investor a at steps we're the we have in out next even bitumen additional the to of ore turnaround us day. next at steps what that processing specifically tailing. we like what more looking steps Day. are our extract focused barrels more But So the for around extract to sands facilities. We're when looks looking XXX,XXX durations. our certainly, progressing plan What we get We're we optimizations on in reliability. core roadmap of I to about can processing further of steps talk through us

so is it a whole activities. of And suite

column moving the a be that have start-up flotation will towards to advanced. well about project, us major and next targeting we specific XXXX. a detailed talked step contributor We've XXX. cells. engineering, in We're XXX At after It

So going a monthly at the second what the we really achieved asset. we've look on in because potential to records. I I'm and with in year, the about think lot continues demonstrate fourth what it have of this just daily quarter, half excited the achieved you there. that certainly It we've And when again,

to year, for entire production Now again, the link all And a those overall together turnaround. right? is an the challenge over the in our significant is driver of still records annual year

we'll kind But not get plant those we the there. And offset have so records, over the any year. I have other we have plant of confidence maintenance, to turnaround maintenance achieve of of sort but then only to or course

So thanks for that question.

Operator

Leggate comes with from Doug line Next America. the Bank question of of

Douglas Leggate

continue you've at know value. mechanism we for looked I bump of huge is that but to this share this morning, your recognition dividend price believe if don't market a

competitive do to yield needs to your So versus your on think burden a that you peers? have is, question decision. dividend My where be congratulations

Bradley Corson

market dividend can having. at your to a we're And the I our comments give yes, my Dan receptivity it's chance the assure I strategy. And our dividend. quite your you, it of decision I'll expect. about I as looked look Yes. to our And Thanks impact Board's day at some I've every maybe to make today. the strategy, dividend with price share -- for raise first, pleased recognition

I our years, you first, and last dividend think for of increases consistency future. for But now obviously talk to can Dan those the that few performance. can the our with strategy of let about see by raise materiality strong XX years, continuing see the that I'll you underpinned

D. Lyons

our Doug, you're the prior acknowledging Yes. I lover conversations. for thanks dividend growth dividend. from a know

shareholder annual said, and most sort the if we've of a the competitive of dividend our dividend strategy. as in peers. and our foundation the dividend listen above our of reliable -- always number So of growing years, compound is over you But we and look rate growth is return And last to competitive very you.

to continue for But growing critical it's focused dividend. our sustainable. really that be us, we it's So on

And doing so Board's of analysis, at kind our recommendations to as and drives we who the look out the are look into look and our conservative and we that competitors Board look ultimately assumptions. at the that We future at actions. relatively

we're we of particular kind glad area and for or it's So can't I exactly that in Obviously, the look to a level focus there's sure and our we that delivering ratio on and market. dynamic, We're a is say we growth we're us. and making an ahead certainly or target But of to focus but payout situation we're it. where never -- targeting. cut growing reliable it's have burden

Douglas Leggate

point. Because Where It's of breakeven I now? more dividend hope have a a question. is separate that do think second clarification take follow-up your this do you the my I is right question. doesn't operator

D. Lyons

about that's and dividend, we we're say sustaining dollar. U.S. with WTI $XX, Well, our capital

we that's So are. where

So for a pretty leaves spot, open and room time. good say over I would growth

Douglas Leggate

follow-up Kearl, is slightly My but question. a actually Perfect. different on

mine I correct the think pre-royalty. left only -- the major You're in you're project only this, that's saying still I'm

outperforming you of any through do there's got extent it that, road. the down moving visibility. Given fact I'll obviously options the expect color can pre-royalty and you How -- you the to some and can parts, if any on stay I'm curious there. all you've obviously, the the out leave end offer To growth potentially give that decade. the you're you long

Bradley Corson

Dan Thanks for to Doug. well. that comment, as I'll one the Yes. defer

D. Lyons

and But for it it's But really outlook is think a Doug. ended depends us which very to prices, get will -- basis our significant reasonable sure. reasonable. think If benefit cash a high, pre-royalty we'd future we foreseeable would to decade I be more get prices be pre-royalty flow is Obviously, or sooner. the for very prices. in on is for scenarios, we on to -- But a I there probably sensitive Yes. is even continue

Operator

Your question Menno TD the Hulshof with next from comes of line Securities.

Menno Hulshof

is Grand assisted. just which, I'll on a Phase course, start with of question solvent X, Rapids Maybe

KPIs the this you recycled emissions is Brad, for through but in how can reduction think SOR's the you touch over to just prepared getting can comments, OpEx time? your as project, did, that, on do some You elaborate system? the of solvent-assisted And on much a actually you solvent how up then much including follow-up and scale

Bradley Corson

see Yes. my beside to follow have here those. me those. at metrics Rapids, Grand defer Thanks may if he on to on up for those he And we maybe Simon, you those details with who's has for the off-line question, no,I if to don't necessarily doesn't, I'll have fingertips

very do XX,XXX it asset. will design, steam economic and more to It's what say from is return lower we intensity. is But us is which on macro important by high I emissions production, very barrels from most a standpoint, this economically relies day its that a for expect deliver lower

greenhouse of most it the our fits costs, you. I'll increase those with operating project any share are But has for now macros how important into more Simon see to strategy gas So the can those that overall production, reduce are and if details reduce he emission intensity.

S.P. Younger

we can Yes, run up. greenhouse Phase terms of those. the Brad. mean, X of intensity, I when Grand at no a a for Rapids of Brad started shared, bit as worries, some gas in take I

heritage We be expect to at CSS our process. least lower XX% it than

as about conventional how improvement you XX% that virtue that compare SA, by If optimize of Think the that conventional through with over evolve SAGD solvent we on the though, time. XX% the addition from addition. to to of solvent assisted of depending SAGD sort it, anywhere and

were So sort that asking KPI about. as be would of you a key

we're the XX% certainly, solvent time be over at even of be north a XX% recovery looking through the is we the or experience, which of as one, and known will operation. solvent course, recovery, will only on But again, numbers optimize KPI. Another key

mentioned You unit cost.

think targeting way, I to Lake, the the Cold to aided scale investment sort piloted $XX even addition several low solvent-assisted solvent to look benefit which of the I'd Grand we the us at across years of a most expect the improving industry SAGD full SAGD gave with on for confidence the by proceed competitive a again, Rapids. process, us at as which, by you barrel, and that operations, if be as that, certainly the at

starting I running say we're that's X It's the successful, running of it's part then steaming substantial. your several here. the we've Rapids of those. what's another as as across would currently to question think room of with got and got sort I I we're pad mean resource And first this additional XX our room. was We're many development up And one wings. well But pads if more of steaming we have -- if room proves running Grand -- currently XX pads. there's pairs

new we organization exciting of really yes, whole excited the how this first -- it's to see that is online. quarter and So this across bring super year asset

Menno Hulshof

of Terrific. second the done cards extent things? question, helpful thoughts far on on compare that comments Dennis' in so terms I'm would how getting that on and detail. And well. scale the fleet high-level just going and be side as to of Appreciate conversion is, And for you've ahead But timing truck upside my initial the on I'm in would any the things. what bit of with and follow it dozer your to autonomous haul a the is probably up of still and

Bradley Corson

example next that we an that actively driverless Yes. it question. we the mean is are of at. driverless piloting Thanks of are for And or I looking autonomous evolution dozers.

I whole exciting. as that across cost well with safety productivity. range We to So earlier it's benefits considerations mentioned starting the first huge as see really of

pilot We're test very that in work. early

for it's our pilot is to So very early it, experience with I premature quantify work but encouraging. our think me

So better took think of trucks talk evolution we're continuing remind at that at I the And that that the be haul I'll about years. several again, a work. Kearl Investor And Day. to in position to just you progress we'll autonomous

technology we we benefit, compromising other so at full only that make get pieces anticipate obviously want takes we look safety way we that of to time approach as in expanding no operation. sure to that and It And would but the are equipment. because of not the I the

more So to tuned, come. stay

Operator

the Patrick The ATB next Markets. of Capital question O'Rourke comes with from line

Patrick O'Rourke

on and dividend Congratulations great the quarter. increase a

prepared lot the the a of questions You've very a detailed obviously and remarks unpacked between we've had. lot

preparing the off so you your little is to in -- in Canada. seeing in a So forward risk any going drought restrictions conditions perhaps for And question to bit going starting But -- use Are that coming commercial Western about. are business? those sort this there are board. industrial water industrial first we're We're of see here we're XXXX? how

Bradley Corson

because in or something it's consumption mean, And question. all we not you're about the Yes. our get the for on. maybe right, Thanks off seriously take talk operations. for of water But questions it's us very I not board we normally

We have consumption. a water long history reduce of to continuing

for us. And priority a so that's

to reducing as fact, In our and that usage in reductions teams those as the both progress Kearl since primary range well XX% recycling have consumption. when at Cold look made reduced the of X And increased of XXXX. result users, Lake, water through you towards exceptional XX% water comes

quite with And so pleased that. I'm

to we I has to going supply, have we're and drought water of to as impacts look continue think risk that carefully. to on manage that

the of is For of course, Kearl, water, Athabasca River. our primary source

water water Lake Cold Cold how in source -- our is primary similarly agreements for And manage and operations. availability our the have with of for implications of which we Lake, reduced place We the that. source

water for low place agreements there have We in levels.

And about. a to but way concerns we diligent very so contributing we're respect And comes broadly, water quite sustainability more when drought it and operations, our sure I obviously, conditions. no something make in is with to are we have manage use, to we especially carefully it something to in positive want

Patrick O'Rourke

short especially terms pretty time a you you to project touch had on formal been with where Because second time update although meeting Great. Are then release, that Pathways it some bit -- terms of I here, and and in in in the being the yourselves no able the frames, of here? sort question on you in did on on order lead of decisions an think little project provide of items the on the update meet get partners, cycle place. a been And my have the from XXXX there's about stand to some frames bit. of discussion there of long in

Bradley Corson

on doesn't kind glad bit. maybe characterize X because I'm an lot external I a publicized, doesn't opportunity main it it and is underway. would maybe as I streams have get but of question, to And recognition, there the for activity just a activity. Thanks often of Yes. of Pathways comment summarize work get

regarding and The both first federal fiscal significant that is regulatory government, investments. these all engagement the is with ongoing provincial certainty kind and underpin of of support to the the required

And so continue. discussions those

the projects project. aware the has recently, the obviously government. Alberta You're equally that's further that big XX% this. of around tax stream continuing federal like for by work are of the But that. go details needed announced another all the support physical And the credit a offered investment XX% the progressing -- aspects is More and support province of there's discussions important around around

pipeline there's well engineering that on projects, So capture both significant feed as their will as are main and which work the design individual companies own all into working pipeline. regarding underway,

and COX where significant We're That engineering to the FEED pipe have transportation fiscal And XXX-kilometer community and the the now support pipeline as than and order we're the consultation an working important we on working well. whole the more is engagement the this environmental part XX% complete. the government. positions that hub, storage kind ultimately the network, are field once integral a COX work we in us also also place major regulatory kind that's to and of line but studies underway the it, There's work, project of application pipeline. to all from permitting of refer on design, to front-end the for indigenous as related of

of a So underway. lot activities

of it. the on times including weekly basis, are week Pathways meeting CEOs meeting Our aspects multiple on a they're several the team, project a

project And progress. making of is this we're unprecedented consistent a So multiyear with of scale. all

and achieving addition to their announced X, take for to by project, we're is oil reduction intensely sands but net of in statements net in which focused our this targets And for all companies delivering XX% key enabler intensity XXXX. target by we've time, on gas a XXXX. member of Imperial, X own a these our interim So also have greenhouse

targets all well. focused those we're as interim So on

of team work for thanks this shout-out the a a lot that space. So Pathways and kind in doing question to of really that is

Operator

Your Mehta with next question Sachs. Goldman comes from the Neil of line

Neil Mehta

to guess, I on want SIB. congrats dividend to and the return My I Yes. maybe results via as the you the about Brad, strong talk capital of bump the well.

pretty that over years about have last of doing cash. excess you when You've the been consistent couple

event are the forward you what about front is based a the assume than half event? we a timing And that? it of thinking curve, half in how Just to that's fair back on see likely more

Bradley Corson

Thanks Yes. for the question.

on strategy. to shareholders starts that, It's our the with that And As of we've other is core cash for our talked to cash occasions, returning key many calls surplus and a us. return priority to on the is reliable seen have we that that we've dividend decision taken And NCIB. historically, the also not and ensuring just today. you've but then obviously, growing. turned next And

advantaged a But that cash to of But course, for and return shareholders. do of that, efficient buybacks. we year share we're to limited very per see as X% to way

kind years the of further then, in has course, next why the NCIBs last years, to, now. of what's beyond NCIB surplus go many and dividend the that's we've program. been cash that had of couple for to and And support consistently done program our So needed we've

to So turned SIBs. we've

the doing prescriptive the to an time. there have be do them preferentially periods to SIB, can't SIB the then our where top as with because to And The are of actual blackout NCIB decision the that both same and has the around. been in do for at driven of of much -- we timing past want that projected again, that, are very magnitude we we on and we we flows as by SIB to well work cash and on execute have both

into and decision do will So will SIB. we as all things if factor when an do we when of those to our and

maybe reviewing this if the certainly Dan factors. continuing has a that. SIB, those And to to on but I'm will forecast going So those plans of those else basis. I'll looking Board to not to timing at quarterly the the discuss be the just status the with see at be market. of add all be anything point we'll future We'll And with

D. Lyons

operations. course, it of we And strong prices Commodity Brad. said, -- are assume right? we prices, well continued No, really depends have on

be surplus commodity by NCIB is primarily. have we whether driven So beyond to going and prices cash the above

commitment to a way. So our to to it the timely generate surplus is in shareholders we return extent cash,

So we'll year. just have out to see how play over things the

I think we're that's at. where

Neil Mehta

little just outlook But remarks, online, differentials. and expect know also the on a bit up. sense, makes That have follow-up for outlook maybe differentials some when I prepared softer the both Syncrude you but little light a the Dan. in expected. will than of about crude about a just suite your tighten because talked And perspective you would Edmonton diffs many comes is talk Yes. you those been TMX for have could these WCS,

Bradley Corson

I avoid Yes. because always around so differentials comment Thanks around are made for much forecasting there there just structural to is that's I that shift that too TMX the because major comment. a play. the about many kind factors come much into will to heavies. you additional want think, bring onto capacity of occur. I the a that, structural When system, have impact on

be, there light kind as will well. differentials think I carryover impact you will, a on if of

we see so as some will And likely of tightening those well.

case, well and our we're in course, the Downstream. integrated the Upstream Of across

discount Syncrude WTI. short-term expect few the are pricing net-net in implications would things that muted, extremely the And in driving that will, I But to normally with relative unusual think obviously for it's trades a term, so SSP. When of strong a premium. that is there's the currently to and that in continue. company a bit at see Downstream. us, term. of others. the of that think, And hit I is is that's trading if our the It in at there same financial guess positive I longer the and market, we we Certainly, you more a longer a bit to a that, Upstream. And

to would WTI a it's I think like over it historically. premium settle in we been expect at

is So of, uncertainty kind in market. that normal again, probably given say I could the volatility the the most

Operator

back remarks. to question-and-answer today's call I Relations turn of Investor would the to session. concludes any This Peter or VP now like additional Shaw, for closing

Peter Shaw

you. Thank

and If there please are have like on don't very to hesitate you behalf to the out And would morning. management thank to a this answer Relations questions. much, reach so questions, for the day. happy that, us team Investor team, And of to thank anybody further joining everyone we'll on be and great your I with

Operator

now and concludes you today's your participation, you may for This call. Thank disconnect.

Imperial Oil Limited (IMO) 2 Feb 242023 Q4 Earnings call transcript