IMO.TO - Earnings call transcript Q3 2024

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Operator

Good day, and welcome to the Imperial Oil Third Quarter 2024 Earnings Call.

As a reminder, today's conference is being recorded. At this time, I would like to turn the call over to Mr. Peter Shaw, Vice President of Investor Relations. Please go ahead.

Peter Shaw

welcome third and call. earnings everybody, morning, to quarter our conference Good Vice Administration; joined senior of Cheryl and Senior Chairman, Senior Imperial's morning Sustainability, CEO; Upstream. Vice Finance team, Lyons, I'm Product by Gomez-Smith, Corson, Commercial management Development this Solutions; Vice Evers, Sherri Senior Including and Brad Dan President President, President the and and President of

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

and on this earnings described the All and are and in available assumptions these information well documents as morning that detail further recent release plus, our are as risk Form Forward-looking our EDGAR SEDAR most XX-K. quarter third we factors on our website. issued

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

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

Bradley Corson

I'm pleased another quarter saw performance assets, lower into we impact the quarter. Peter. quarter and quarter. of was I'm net our the income across everyone versus happy both the operational We doing third earnings performance strong report excellent up prices, which Good call. welcome strong really hope quarter-over-quarter you, than as all to moved morning, on remained Despite has the that commodity more is to nearly Imperial. sequential second XX% downstream, also operational our report of actually Thank I well. prices basis. upstream a for offset and lower everybody, to fourth

record prices. significant again more saw in WTI to due once softening and benefit stable operation, than of the we're narrower with of a reduction egress more Imperial. net provide the in reduction to TMX upstream value price in differentials Our costs, And and realizations production offset which seeing unit the that additional and continued

earnings of Our realize benefits assets manufacturing and continue also spreads. solid our import well Canadian of structural despite parity over of feedstocks activity and X business Downstream the to planned refinery market. the advantaged softening in performed turnaround quarter contributed crack significant All the pricing and

I'm results. ability and cost capital. operating third from So let's working quarter activities excluding within billion, were the to which namely mentioned of very I $X.XXX offset when organization's on the and earlier. improvements, Earnings impact proud review that now what crude of with deliver their refining of the quarter the structural billion positioned $X.XXX cash for is control, strong the margins prices operational to in moderation results us

historical divested years, basis. highest assets. year-to-date in day higher barrels the XTO Upstream, slightly third per including are over a XX on associated achieved This the we year when XX% last quarter. production even oil-equivalent quarter volumes per XXX,XXX share In Earnings marks than gross with of past up the production the and total the the third

to barrel cost when unit have USD comparing strategic on reductions, coupled year-to-date X a savings a volume cost structural Our XXXX. of focus over growth with driven

XXX,XXX confident the X And into in with months we over basis. record feel reach fourth with for first day the carrying gross barrels Kearl another quarter for continued the a the and year quarter, now the the to year momentum fantastic quarter on per highest year third of very and record yet matched assets our production ability production.

thrilled also had offset the is successful that strong a our the very operation, activity. ramp-up more We solvent-assisted included Lake. of impact project, Phase SAGD which industry's planned quarter at performance Grand first the of the than I'm which Rapids the Cold X by production from turnaround

in In the as and Refinery below to operating XX%. and Strathcona, continue Downstream, of safe a which to the per see well, of throughput the performance equates of execution day, and which barrels at both XX% were refinery schedule. XXX,XXX strong of turnarounds a averaged utilization we year-to-date budget including Nanticoke utilization quarter ahead

well to October, last the for in With year. our finish are a turnaround now positioned completed activity we the planned of strong Downstream Upstream and

to we Overall, XXth has and value paid the a growing now consecutive on increased year our reliable through shareholders which for continue our to deliver basis. significant dividend,

shareholders. We are the track in returns share of a accelerated on to X% the course the bid also reduction repurchases complete our issuer under our this normal end resulting year, count further share and to by in

our pass Dan results in discuss With to financial over detail. that, things to I'll more

D. Lyons

$XXX primarily XXXX, our business. income on volumes expenses million with Brad. operating more results strong lower Thanks, prices. second from for Downstream of lower quarter sequentially, a income the quarter. result offsetting This as the in recorded of up third a quarter decrease When margins with net We from comparing and operating represents is third net million of billion. of quarter third the $X.XXX $XXX financial Starting XXXX and than of performance

down line reflecting volumes million refining are primarily Now looking shifting margins. from from offset our sequentially, quarter, quarter, of by million earnings attention $XX lower second to lower up mainly OpEx, higher Downstream of million lower billion to $XXX upstream partially East realizations. due and $XXX second $X.XXX and are business earnings

closely earnings segment generated business the XXX in the second Chemicals There with of earnings but is by the segment segmentation months the Downstream from months on million primarily aligned shift sales of consolidated of to financial shift now business no our after-tax more million X results, a We segment. Chemical of business. we because quarter, downstream onetime kt $XX with from with there volumes down driven from X is and a products products XXXX the our our to $XX our segment. finished $XX Downstream Finally, than of Aromatics our quarter made this see shift chemical moving million our is segment impact third of level Aromatics of at Chemical

We and will steward this report on our forward. going business basis

from on capital In $X.X this unfavorable the balance cash quarter generated Cash billion, cash activities third billion. in $X.X the second $XXX year. operating activities, cash million. tax Moving ending the our to flow. billion excluding about were to third quarter, $X.XXX flows million quarter brought flows we for from working of from operating about $XXX up of Which

of focused totaled to our diesel up we've sustaining $XXX comparable capital third Year-to-date production third XXXX. Capital million in Strathcona. the than support the our the expenditures third Syncrude $XXX Shifting somewhat billion quarter Upstream, XXXX. expenditures $X.XXX of in Kearl, at quarter, progressing and renewable growing quarter third higher from included Lake. spending CapEx. $XX at million anticipated. the chosen we quarter than to In the spend Cold business, Downstream and on In momentum XXXX the more project million mainly spending are period in To initially

guidance to this year the we finish year. such, modestly of billion expect last As provided $X.X than in December we higher

of cash through remain continue program third an quarter paid bid share long-standing billion In to year-end. normal $XXX to shareholders. million and our track to our repurchases shareholder additional demonstrate by dividends We we program. of return distributions. fully our commitment $X.X under course XXXX, the Shifting We returned the surplus issuer accelerated to on to complete

quarter fourth of third announced a dividend consistent we Finally, this morning, our with per share, dividend. $X.XX quarter

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

Bradley Corson

Upstream on of versus production years. per the about production as XXX,XXX barrels up was XXXX barrels second mentioned and in a Dan. over highest year-to-date. the XX oil the Production higher production Year-to-date XX,XXX up or day. earlier, quarter per XX,XXX quarter is third Thanks, and I represents day barrels per this XX,XXX quarter third record day versus the for pace quarter per X% than XXXX. averaged equivalent day And is barrels

quarter about XXXX. day let's now and and barrels record day previously averaged quarter specifically gross, second So quarter in the XX,XXX versus is in per third on barrels which XXX,XXX per the matched talk Kearl. up production third Kearl's set move the

strong are fourth XXX,XXX start production in is to which month. barrels October, looking a very the around quarter per like off the for with gross day to We record another

pleased had essentially X Compared costs were over energy same the greater where lower, versus XX almost in productivity, I'm operating by extremely barrel unit third make With Kearl the costs. achieving continues share a almost Kearl's to quarter XXXX per cash we barrel. favorable of target USD annual USD activities, mine to the and volumes, absence to decreased unit of on are of Turning cash USD unit unit quarter barrel volumes, our to per operating per barrel. X of quarter. the turnaround progress higher costs reduction its the to second journey XX.XX costs cost costs per XX%. the USD

full is And to on per barrel USD or USD the on unit USD year. well cash achieve barrel and year-to-date nearly year a barrel cost than per XX basis, XX.XX X for of lower our lower last per track

and to hard unit deliver costs. to like the continues Kearl that improving work would delivered in effort and acknowledge the our I team

So to Cold Lake. now turning

XXXX. per second production which the averaged per the versus quarter, For XX,XXX XXX,XXX quarter up of Cold day Lake the barrels barrels third day, versus flat third was and quarter

strong we safely in guidance. USD The than year-to-date production per cash and the lower USD unit barrel quarter a than lower Phase to year. During barrel high schedule basis, is is year. Rapids the weeks Grand reaching were Grand of the costs our day On of compared our day, project over decrease being turnaround to our as expectations. the per resulting per we're well per unit were production sustain per a barrel, production and The which from X quarterly more performance resulted same installed. XX.XX end ramp-up in turnaround Strong the $X levels. day the barrel completed of has XX,XXX to X turnaround last of expected USD on with last cost barrels final July, our At exceeded barrels costs XX,XXX better-than-planned cash per pumps producing quarter, allowed the Rapids incremental of of way per barrels X ahead new X,XXX production, of us about Maskwa over along XX.XX energy was

appreciate instantaneous Rapids We're while field For are the seen an average I And in and our day. per by by basis accelerate of the milestone marks an Lake, of but an This continuing the XX,XXX day, XX,XXX day. initial this per all per per to on in project the production monitor barrels a work peak month project encouraged realizing to September. day barrels average to have the production very at achieved project for of of XX,XXX an team successfully are barrels Grand Cold performance, XX,XXX the and transform important we strategy quarter, confident of rates basis, year. by barrels third our the

As around unit cost expect Lake's we alone barrel application by commercial of also have before, industry's utilizing first X our will Phase emissions solvent-assisted X reducing SAGD, Cold we lower while noted by USD per intensity.

Cold Lake redevelopment includes SAGD Leming Grand additional alongside opportunities Rapids of Our other phases development, the project. strategy as such

at plan was to another years great develop This location, X,XXX over using throughout day initial on the quarter, peak to are barrels example in begin XX resource that XXXX. facilities value late assets. which from further to strategy to is per ago, returning our Leming started technology. the XXXX to of is average expected Cold project continued new Leming about maximize Lake's SAGD of and existing Construction injection our with in progressing steam production pilot we up

Imperial's few averaged versus per versus for the of Now day the barrels third of Syncrude. quarter which up XX,XXX and quarter is per per share barrels Syncrude XXXX. a XX,XXX on up comments quarter the barrels second X,XXX day, day production

at the time the During incremental producing on pipeline rates Premium. on interconnect completed utilized bitumen our September October, utilization beginning of Syncrude the higher Syncrude to driving At a and of end hydrotreater was completed about started day, quarter, and and which of Sweet share the turnaround, Syncrude X,XXX upgrader import per barrels budget.

Now refined by additional second to additional Downstream. day, Which when let's we day and had about strong move of Refining was barrels average the operations the now work also per we an XX%. had of a in both at third in on XXX,XXX of utilization the quarter. we X,XXX processed at reflecting Sarnia, throughput Overall, which complete. barrels offset turnaround turnarounds are and quarter, talk Nanticoke, and an Compared the quarter. a partially Strathcona planned Strathcona third

achieve to high XX% utilization to us positions year guidance end the year-to-date of of XX% well Our full of XX%. our

co-process refinery. enhance With product we plant-based By the flexibility these feedstocks additional we reduce that our feedstocks, their operational to help completion co-processing Imperial's customers Strathcona can at emissions low-carbon further added turnaround, of and the offering.

ahead turnaround was of across with most this I'm large successful the completion the the for event executing The year, Nanticoke team company Imperial and assistance. across achievement bringing of turnaround budget. turnaround ExxonMobil extremely capabilities and largest This decades, North schedule in America site's below Imperial people the proud refining to in the leveraged refineries and network, ExxonMobil provide and within from

From financial despite lower the remained significant business and downstream activities in our quarter perspective, a impact structurally advantaged turnaround refining of the profitable margins.

the half add diesel our XX,XXX progress Canada's a largest We facility capacity that completed first will throughput in the barrels construction of of XXXX. renewable of refinery, to continue day at Strathcona when

of The opportunity progress have will project attractive a and and and portfolio diesel scale, our including within the which renewable location, the is we the numerous leverages competitive with next pleased very Strathcona into construction, expertise one that strategic year. advantages continue highly I'm technology.

that sales the is barrels and product barrels earlier. up business versus XXXX, of up of day quarter the XX,XXX XXX,XXX segmentation mentioned third second barrels which shift day day the inclusive X,XXX quarter per versus quarter Petroleum the per in per were Dan

continue XX% XXX% Canada at and diesel in resilient with XXXX. and demand Overall, we gasoline jet approximately about compared at to to see

to Chemicals. The for million is $XX in was the the the in $XX in quarter Turning due Downstream shift which earnings million, business third million Earnings earnings $XX third earnings now to to from quarter the the were second segment. excluding in major and quarter, mainly the to quarter. the and environment include third $XX Chemical margin versus quarter. the Aromatics lower fourth up would the year. shift down turnaround million, of million due last Earnings the prior quarter quarter the XXXX, million third third been have down were $X versus in $X quarter from absence stronger in the the

Adjusting for XXXX. million I $XX the earnings of versus quarter mentioned, up same have were shift, the third Dan and

highlighting As few by a of other always, I'd like to items up wrap note.

to proposed capture First, for the the and the storage pipeline Pathways and is design carbon continuing project. Alliance engineering progress

have and provincial the the pipeline finalize parallel, this for and communities. to to discussions pipe with continues. the transportation we the continue quarter, important issued Pathways regulatory for request engineering fiscal early with During engagement consultation for work frameworks Along proceed. proposals In manufacturers as the the and indigenous proposed to to constructive necessary project with federal governments

and our of shareholder reliable strategy shareholders are that societal while and who contribution delivering business TSXXX value are great we the on the needs. XXX% finally, for to the We This for of recognition as X-year delivering affordable energy recognition every grow of execution is great performance working be companies to on based a XX And dividend significant proud share included and on were period. TSX top year's workforce over our adjusted day for hard list. this one recognized a our is value

in pleased shared record upstream, unit multiple We significantly safely upstream In downstream next Grand we renewable another Rapids and the achieved initial executing have the diesel our quarter. had production while of our high to completion project delivered project from volumes costs excellent year. the reduced look and to very forward turnarounds. planned utilization Strathcona I'm encouraging closing,

affordable we as maximizing at remain the while value and Canadian to bring time, our continue maintaining and attractive our same consumers. of the for existing of businesses, changing while will focused to updates these energy needs customers, opportunities you responding on We on reliable the

and to activity year, accelerated bid completing planned As year. to course the of our on ahead turnaround the surplus focused the strong to the we're I continuing of a normal completed now, cash return the by look shareholders very finish our all of with end issuer by end

Day planning planning like would an I outlook for also call are as to XXXX. a are longer-term also the a Investor with to of conference issue we spring annual we share XX XXXX, we on host December and in our that guidance

and thank I'd for again as your once to And always, support. continued like you interest

it Peter. to we'll and to session, now So pass the I'll back Q&A move

Peter Shaw

Thank Brad. you,

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

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

Operator

first with We will our Manav Instructions] UBS. from take question [Operator Gupta

Manav Gupta

the on Congrats performance is quarter. on strong strong here another basically Syncrude My question there.

Syncrude? help Just the realized of what are us understand seeing this helping How are results stronger benefits bidirectional at pipeline? you it deliver you is

Bradley Corson

this bitumen to see you'll we we've in the for that now. And pipeline as the import And had both volumes. in Thanks for allows flexibility Yes. for need additional when service recall, benefits at we question, a Manav. of us multiple have it couple bidirectional times years

We just provides have We can if those broader as have process facilities, units. continue of facilities several keep see result we similarly, in to that bitumen the downstream. full. optimize Suncor's we shift uplift can that. day over thousand year-over-year additional downstream we downstream constraints to to And operation capacity And a any fundamentally, barrels those of it we of redundancy a And how those operation. in

it's kind of good So it. a investment value-accretive feel quite that and continue about very we've been to made, we

Manav Gupta

than question second My Grands looks going is Rapids X like even Perfect. planned. better Phase is,

So at that further similar how we further should opportunities, about asset? opportunities think

Bradley Corson

I for is have And your months. we few a for that crude going better certainly, been share optimism. producing caution We've only recognition. early to it's still Thanks than Yes. It that planned. days.

I I was recall. oil think May, first back as in

So rates and diluent, performance, optimize the ramp all kind very are continuing looking of injection steam it optimizing we're indicators positive. but to the to We're of reservoir continuing up. the

We've we to development. SA-SAGD. Grand up past with that Rapids potential what validation our in that ahead XX further is, phases so means have of mentioned looking strategy of And again, the

to to have I'm leverage we for more a forward challenge surprisingly these we what team successes. do can So phases these opportunities bring basis on with maybe encouraging the not those future continuing so accelerated results, early

options. that safe those. of about say that's one to and for think I we our do of see multiple of we're And plans. in to things going out XXXX spring we'll phases more is of team those So a Day exciting be development, the advancing lay to position be as the evaluating But those planned the more Investor

subsequent or the But this about bottom really not is think And it. year, next again, but we're will that year term. have just longer good I implications feeling for line years

Operator

Goldman We will question next Neil from our Sachs. Mehta take with

Bradley Corson

maybe could to question go hear next can we Neil. HI Neil, we back come you the us?operator, and to can

Operator

Yes.

our We Securities. next take will Menno question with TD from Hulshof

Menno Hulshof

I'll with And digitization a it about Can start expectation what we maybe a XXXX since we your digitization feels on currently it refresh on investment haven't efforts? while. question reasonable a just get beyond? a it for annual and in focusing you're in is where talked like

Bradley Corson

the we of our time, was about shared And Investor value million that of and we we at that's Yes. technologies Thanks we talked explore the about those, kind What $X could you're for had reflection we no of to further available potential the question. on continue leverage technologies. to captured of had maybe haven't journey continues. last to applications it maybe on on much us new but the continue it. indicated digital There's a And the I going $XXX recently, of technologies. business that focus lot to believe Day well to right, billion from anticipate over work at

from what our risk done The And and all underlying haul only achievement trucks. autonomous we've have us fully safety has of seeing operate And also are been industry lot of lately with We're that safety autonomous operator one heavy productivity that that's kind now benefits a we trucks. a haul about our great is just with that performance for mine both able in lower that and a we improved or incidents. cost that. of is achieve that, been we the to talking

and open predictive Spot. So completing to have inside just that. turnarounds technologies don't us tanks better key issues as over showcase last our ahead But really doing had up about one indications a other really with being to budget what of of Rapids. anticipate of a technologies vessels there featured our units employ on every we talked I've is digital dog we're we're to to that, to of we to X about and feel and up allow quite Cold the of now defer we're what us and that good of we of below drone allowing technology doing kind robotic opening who We inspect and schedule Board advance what able shutdowns capabilities equipment, Grand as any with use also those. to Lake enabler pieces named when in we of part large we out quarters

staff in of data us gathering Spot to and by helping our performance, also more efficient operations supplement is equipment a And real-time regular that more monitoring have allowing way. data

so Day and our when sure we advancements And accretive we to It's those examples, It's have not I'm the are because things many our but few we many just a do business. them. technologies. XX, digital organization Investor pursuing. in of X again, we're more X, like that digital comes When showcase it that will there's X, XX, spring of very And being it of list to see short things. a pursuing next XX year, the is

Menno Hulshof

really was helpful. that Brad,

and The for apportionment second starting like to egress see again specifically. basin mainline Enbridge low the we're is question on It November. single-digit looks

is, you question are the So just it what having see you TMX surprised know driving ramped And up? that? to is the do with

Bradley Corson

for surprised industry volumes question. has is volume the not based been What some We're and now on between TMX. commitments I producers' all great system think, at that the it's started up. Overall, a Enbridge TMX It's it on I apportionment. TMX system by a great lower of reflects, the think Yes. story rebalancing

seeing and the to narrower and are provided value egress products more through are that differential as they that have stable. all have basin to more that has highest differential, producers flexibility. their a the we're and they market we move leveraging also to what from through capacity stability We WCS Enbridge now be the The more TMX. such seeing markets And see that

great it's to and think result a I So our great it contributed for earnings announced. it's Canada. and I've industry, result It's a a result the great has for just for Imperial,

Operator

will We RBC Capital from our Pardy next Greg Markets. question take with

Greg Pardy

little into just We Brad, on thing question wanted CapEx. to Thanks still getting expected. in higher great. then idea? terms higher, for maybe always, give you? only was being is it us the under color this like what the a can billion or Is were the maybe I there than as Dan in of $X.X that quarter or Any be a And any mildly about rundown you terms so talking of or what being dig have X would

Bradley Corson

Thanks, Yes. Greg.

As multiple we sure, span program, projects our have you're, look we when I'm multiple that capital well at years. aware,

there's so execution. optimize of we the some next year to one from And capital shifting always as

and all seeing, is, I now there's as what a to we're are opportunities our with also that I related, volumes. economic economic them about OpEx increase some allow it are that, great momentum positive pursuing And are production. opportunities, in them and of lot view think of related. we profitable some a maximizing CapEx those And of us organization right

so you're seeing that. And

I year close that balance, I to finished used billion year, the good above We out on we're slightly modest But trending really of it's think Dan, thing. rate. capital. This increase. word $X.X guess, last a

between exact but be number, somewhere at year-to-date our trends, to are can I'd kind look where is you projections. I out relative an somewhere We're to going of $X.X reflective guidance, billion $X.X that again, so billion the we hate in range. to somewhat say billion, and $X.X the put And

profitable it's good I because, a again, it's translating volumes. think to thing

So no concern.

Greg Pardy

Yes. no. business No, intensity mean you're to a with. low I begin super capital

Bradley Corson

capital past in Investor so think at with net-net, know, we're I really sustaining talked I comes barrel that Well, barrels, And some we more around, thing. per requirements. -- we've about a mean, $X When sustaining it's Exactly. something. Right. positive capital But don't about the Day right? or producing of

Greg Pardy

agreed. Yes. No, no,

right, Western a Okay. got a bit project has a in what asking everybody Maybe dog growth about Canada. was -- just now, about. Menno everybody's But follow-up, little

so is you? egress other i.e., egress that there So have fronts. or when that as we're anything start just that are more Western the is, thing balance from then out thinking is, the risk perspective, coming expansions we pipe here? you to is guys And long of how curious And you medium- might mainline and in to on. what just Canada. your I'm to X mitigate on longer-term see that, a managing own how on are One of do maybe

Bradley Corson

Yes.

additional I that's available think several feel really capacity. for it's amount be that the of will that system. will egress. a and There We know we see feel achieved From capacity a on in and existing I in run I based years there room and system perspective, our likely also question. seem meet about like there and be are we does good interest TMX But both the investors Enbridge capacity in discussion lot with to around be travel that. of analysts. as the of good

debottlenecking. operators further those for As look

extend longer to going And the industry. so that's to even capacity available the

further concerns have long and down at look we Aspen. near the the road in individual like We egress. don't about As term, projects, much growth term any both looking the

that thought ago, about it, new is as about good obviously, us today. a years few projects that consideration feel we growth concern significant greenfield continue a We'll was but for whereas so And a to we egress. monitor not really

Operator

take question with Leggate will Research. Wolfe from next our Doug We

Douglas George Blyth Leggate

majors the U.S. some you've today. I'm on guessing competition got

thanks on. getting for me So

Is to below a headed. trying get December. on doing in give clearly, Analyst not much. call it day of costs In of Day could you're future. wall an But for was you're operating average below the where $XX, And sustainable So writing how the too got going is capacity could. seems us Dan, upside Kearl XXX,XXX you basis which But you're maybe would if to costs it update a when barrel Day I'm a stretch that your XXX,XXX goal the you case, the barrels best-in-class. kind frame a to say follow-up do say itching there's an it frame as a That with to operating for to you ahead day us too and the October that your XX much of for and that Maybe operations do for Analyst is I've on on in bit, this in little the that? is XXXX you you put to stretch are case a see that there annualized and us and please. an

Bradley Corson

thanks Yes. Thanks, going to for calls join right, you but releases earnings time And question. appreciate a lot there's on Doug. And ours. I today, with you're taking and your

our on but We are around time across our really cost, well best-in-class definitely our we're spring then the in efficiency, of some Investor out we and laying portfolio. on also XX, for guidance volume, spending Day all really fundamentals have objective assets with of significant achieving some made December for resiliency an as the all important excited progress about because planning XXXX,

of a to certainly will skeptical probably XXX,XXX So clearly do Kearl in our reach those ability right. about. lot have we be of and there were barrels good of confidently. things discussions. that ability to that people to quite USD ago, a couple years But our featured And day A talk you're lot were of XX. a demonstrated

on XXX,XXX future. barrels Day, working the teams And XXX,XXX in the plans achieve then, have a Investor since our last of I our potential specific actively day. teased a At out been for day kind very to barrels

Day reasonable you our I'm around that like. about this do day. much what and that on USD XX, costs, optimistic do In is And then we we illustrate we because achieve that this illustrate out laser-focused Investor and results raised haven't remain I quarter's XXX,XXX that at glad And have But a been other lay on as really that. frame. we've XX. than looks barrels time will time So arms results year's anything we'll frame a talked USD what

And quarter mentioned, as $XX.XX. this I was last

So We'll a cost. something our that you deliver how we shareholders, based will it more to milestone we more give be the next than to call. know new it $XX. material will cash going at and not bring And us something out than that journey with -- the That's for that more It our plans flow. volumes on for to today. will a And be materially for save comes less all to But I'm of improvement, lower goal. value less laying $XX. on excitement translates best-in-class. to number a

So exciting. it's really

Douglas George Blyth Leggate

stock in As your to the the getting least last has best the X call, it's years performer Brad, far of energy entire at space as coverage. our amazing think on been in period, the in that

And so that. congratulations on

that part relates guess, on burn fleeting. -- oil at wanted a what your touch However, obviously bit a strategy, and it of been had been really I dividend has policy. happens to $XX to where this I your of And a cash you And try oil, big little has dividend quarter.

Your depends oil at SIB, I guess, on the north $XX, of NCIB. least beyond being

a leave underlevered be forward? lean would Dan It's prepared growth balance sheet it would you is, So the your some my story an maybe SIB question I question, your in dividend to for -- to I'll how you does maintain do how guess but about balance going of there. in be you the sheet, -- buyback? element think And

Bradley Corson

that, yes, Yes. Dan Doug. at that to the is Thanks question. bit here answer chomping for And

to the a corporate Dan sustaining reminder thing because mentioned before $XX defer mention all our barrel. of is cover would our one is that a barrel, our him. So around But I capital just I a and you gets breakeven into -- to dividend our will it details $XX

shareholders. And value $XX and opportunity $XX return see between be barrel. will well significant accretion our objective -- a we to surplus cash So to

about But details. let Dan with of that, I'll some those talk

D. Lyons

Yes. Yes.

and before, I when talked were about in philosophy. as -- -- share overall is we we're arrived First, cash sort $X.XX here a bedrock dividend we've XXXX, and our dividend return philosophy now. regarding $X.XX. at And our of And that our the dividend growing of obviously, philosophy, reliable

grown bounds way our it. the obviously going what and what's And goal we've is keep So to of within a robust sense growing in that sustainable makes forward.

unchanged. that's So

return through a flow Regarding NCIB philosophy that, there that is in SIBs. manner free our to cash our policy, shareholders beyond the to timely and

debt SIB an not that not ahead been -- around our further. low. leverage lower borrow has to level. quite said Your levels go practice our what in would that our I to we with question and you're we do looking is right, the we're mean, are comfortable past? And we We're money

We first be -- everything. -- do look, the consider on wouldn't I past not our table. it borrow that though say would the completely to But has to place been off wouldn't we'd is practice I nothing So based go. SIBs history,

in continue to going surplus it's looked at. of -- all practice, that's aperture we've NCIB, the I -- I we you of based look forward. and to know cash cash. we'll surplus think is cases, So heads our our But of but our at -- quarter past the think on But our sort SIBs dependent. And assumption base most ways returning all where always we're price beyond course, call open historically, that, first our going

Operator

will National from Wood take our with Bank We Travis Financial. next question

Travis Wood

Yes.

at do talked a on output You lot a of maintenance was about at a a activity turnaround and come quick guys on And opportunities there. in, are cycle have of opportunities a back there the to of But follow-up. program more step out end short you're potential function then I that the step pretty Kearl, have larger Kearl.

Bradley Corson

I at a question. the way. for different Thanks might Yes. come that slightly

to dependent maintenance. us days downtime. Kearl in equipment. ability It's undertook change at not year. additional procedures improvement. that we total those allow one the turnaround for can is turnarounds longer recall got that we've each right if no And per we would step what a in is year the a amount volumes a fact, downtime that grow you at doing about of back you so we turnaround maintenance of XX around was turnarounds. were do look reduce And We've what directly right such got of have minimize Kearl. ensuring backlog go continue doing can make few Our we to on that kind There's a years, of of activity around really days, to X to at And XX we the we may

moved And X year. then to per we

days. be a of that with how went just one days. more from the we've we then, we've than executed XX downtime? less journey been was year we this efficient XX days And on on So days, since can to XX So instead XX of

So comes an gone more And on XX from basis. obviously in days. with annual reduction XX of we've to downtime production days day each

is reduce scheduled we downtime. So on can we're that's really how the journey

to about Now well. certainly, us as we from XXX want that capital get for unscheduled to will be we kit and when schedule XXX, the normal have, And make of to to to reducing that some to the during specific may a we'll of are allow do step we're we XXX projects kind downtime think us you have be turnarounds. depending that pursuing existing the change there projects. incremental those. nature project, will -- sure be to And on There'll very there tie-ins that specific planned cost

But how I a bit for kind that of that. approaching gives hope you we're color of

Travis Wood

it No, Yes. does, Brad.

basically, the the well. the tail not for was here that But schedule. no effectively all on growth. mean maybe so dangled think the we staying Grand what I there comparison in about end the we're same portfolio I and mean board, obviously, get through really plan of CapEx December that's to year-to-date. thing. And to out cycle here just Rapids And quietly assets -- How then capital we I plans, kind strong at is I performing it's think to modest assets which on X-year year. the how XX, previously, of but trying the of spend kind the the do as you've should shorter growth I And with think planned the the of laid across carrot doing alluded was times the kind maintenance think are and the the increase to

kind So should can cadence we of think volumes you of try about into to a us to get how XXXX?

Bradley Corson

higher to I our to guidance. perform to think we the years think continue can December I at as to look lower in means going reflect infer to and the But for in and reserve then we're higher that challenge to levels few And that the the Yes. you on X-year we're that assets over specific you'll as And think individual we well. mean, track that higher X-year at when updating Well, share December. our volume, more And I levels. record to that the I is XXXX based want last something cost. XXXX plan you XX guidance see that higher plan, call continue

several of It And journey, I and Lake analogous maybe barrels will all similar next -- XXX doing going year we're so there's we're with XXX be a Kearl. and kind on with we're Where certain a bring XX,XXX Leming a we're those gave to won't indication at at year. barrels line. costs $XX. going we're XX,XXX from Cold is down Grand where over to going year. in of some going and X story It with And Lake, day we're doing time at a day what Cold a bringing at what story below X,XXX Rapids be now,

And those unit allowing reduce cost. to our are also us

be until XX. But the will lower I'll save the that So theme, that December costs. exact more volumes, numbers,

Travis Wood

I tried. can the and maybe in day spring. hand bring the I'll the to And Okay. Spot appreciate you back it I that.

Bradley Corson

go. an you That's There All right. idea.

Operator

will Neil Goldman We take Sachs. with our next question from Mehta

Neil Mehta

Yes.

which into service, assets comments. the could with Strathcona of carbon mid-cycle States idiosyncratic a for First, you online, low have renewable we've a is, I'm the diesel couple how stuff, coming lot on the that the come diesel economics Thanks had the curious service? renewable earlier. that think, your that the I just on asset challenging United is of And to about conditions of economics I the But Canada? really U.S. Sorry in be have on are and in that market just bring what on into perspective as seen evolved

Bradley Corson

our we to do underlying see the as read for our I in renewable the maybe differentiate talk U.S. versus project because the you projects. about at economics about -- like Thanks of project diesel or I other what question Yes. Strathcona, or

literally us a solid are middle fundamentals we the we're that renewable cost of things. capital deliver refinery we because existing lower our up Strathcona about is refinery. Strathcona of costs the to leveraging constructing once in and our continue why scale started accretive lower portfolio. operating returns economic that allow expect to are that? project One feel What's we is several to the of Well, very economic good different? And project. to We diesel our

We're feedstock oils costs. rail existing results to available. leveraging We're that, operating be capital, of all the are crop that locally all that on leveraging we're the Then infrastructure. top leveraging lower we're for in So utilities. staff, thing the using going lower

cost crop for low the on that, what see we may others the of technology And are So are using of then for versus proprietary top example. in U.S., transportation that relatively some the bio-diesels specific effective in is ExxonMobil, wider of temperature over produce from a will conditions diesel in us than that a a allow existing to U.S. that product much catalyst drop range

run And same. this in summer months winter diesel, common but just well. We what's planning example, can so means year use for doing the we're diesel in And historically, Kearl, use months, use not they as this be that the plan round. is to and which the we'll it what is purchasers can it our to renewable at

a premium greater that value but And be so to also it us allows demand of only degree for. in unique, not flexibility to see it's having because operating higher allows

Colombia, and Fuel is provide have And considerations Clean those of federal economic standard. provincial they of support and underlying the also And are then in we lastly, this Canada, different regulation. there is in like I regulations a support. additional than would all other Regulations the say We Clean Fuel have the U.S., British

when but us. put in So quite very together, all different you that for than the U.S., economic

Neil Mehta

you mid-cycle Brad, be And a comfortable view putting on basis an economics gallon helpful. wouldn't would you? of diesel that's per be $X for of -- no, EBITDA would renewable kind And put $X what

Bradley Corson

we're even about Well, what that there. that and then, planning fair this time of the because what out be quarter. running. maybe maybe comprehensive we that proposition at more is value you'll considerations value. be -- like on story sort for may recognize of the not about amount that. we very commercial the until we then considerations I'm incremental specifically not are for But And because analysts kind kind what up to But every to is and we'd of And lay today, spend is future, of talking the reading economic do I more Day would say comfortable the a it to it sharing project difficult but before number in have you'll see a see Investor unique market, there's

come. to more So

Neil Mehta

I state one the But what time. Okay. Pathways. for initiative? help as which of expect understand us around next of latest can this What over the and the last you is play, just gating we we're -- what key me, the terms latest on are can one items in know the milestone

Bradley Corson

out laid I some of summary those updates. and -- of the kind Well,

framework. agreement I think with milestone at what's some point, real key an is and the Pathways next to, big as the aggregate of the companies hopefully for to the reach is provincial federal kind governments the XXX-kilometer right pipeline. order once need we and be package have in economic And to that framework will a position place, we line go fiscal in then the pipe this for we

them I us As timing. proposals on and mentioned, we suppliers cost gone ask have potential give and pipe to out to

path Because we see as critical forward. that do going

there can, the reasonable want we certainty we and a as to for at our be make move And order it can investors for before we but the have our investments. this make as investment, to fiscal a big right large framework companies, to forward need economic we so will pipe. returns time much point those comes that And

be when for of when we is final should the looking terms governments you what the place get do that's then So pipe. for kind we order the with do and

also company that's the Each that is engineering permitting their other that, part communities relationships project a is the all of on indigenous for for capture of and of things work term. pipeline pipeline the There's on are required and the going lot with a route. that ultimately, There's a also projects. big around along work important that lot are individual longer working

discussions ongoing well. as those so And are

to most lot the thing optimistic but terms, we'll pipe still those critical And on it and track, a But that -- is get order. do work keep there's I'm still we'll this there. of

Operator

to back I We like remarks. Peter have do Vice of closing Relations Shaw, further any Investor for questions. call President turn to not would Mr. the

Peter Shaw

Great. Thank you.

us like we'll IR to out If reach the questions, morning. happy on and So please of there this are don't questions. I hesitate team, joining team, further to for to would everyone be those answer behalf any thank management to the

you, thank that, with So great a and day. have

Operator

participation. call. your Thank today's you concludes This for

may You disconnect. now

Imperial Oil Limited (IMO) 1 Nov 242024 Q3 Earnings call transcript