IMO.TO - Earnings call transcript Q4 2024

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Operator

Good day, and welcome to the Imperial Oil Fourth Quarter 2024 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Peter Shaw, Vice President of Investor Relations. Please go ahead.

Peter Shaw

Thank you, and good morning, everyone. quarter call. fourth our to earnings conference Welcome Senior I'm including include to CEO; Brad morning Product by Solutions; Sherri Dan Development Gomez-Smith, non-GAAP Sustainability, management of team, Imperial's senior the Evers, Administration; financial Corson, and Vice Senior and President, measures. joined President and reference Vice of Commercial this Lyons, Finance Vice Senior Chairman, President Cheryl President and comments Upstream. Today's most reconciliations of a Attachment these measures press found available be are our our conference link call. with and can X in on of definitions recent today's website and release The our to Today's may forward-looking comments information. contain Any performance not and a depending is forward-looking can results of assumptions. vary materially information of future actual operating number on performance, and a guarantee and factors

as factors in to ask and described EDGAR SEDAR earnings risk are and All earlier quarter fourth on to website, is the those over with detail would is our that documents update. provide that to who operations opening will some we update, Dan, so to assumptions further hand you with we release issued going and plus, an refer start then our the a these to then today. the and remarks Q&A Brad it financial Once and information available will is on are Forward-looking follow session. done, provide well. Brad I going

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

Bradley Corson

sequential But to pleased and for a as XXXX. We and another production our XXXX. quarter to downstream, largely very to a strong really new as Thank year saw scratchy quarter and assets, commodity And is basis. downstream upstream your reliability everybody, doing lower call. welcome a recover prices, to across start. for the end from both operational apologies fourth everyone a continue And report grow resulted and year ability our our to you, Peter, good prices is I the and cold. I offsets impact which on lower quarter-over-quarter voice well I'm in good despite and excellent morning, we performance to strong of all earnings up wrapped Imperial full my hope deliver solid off

fourth the we XX Our Upstream achieved years highest when to past records production the XTO in set adjusting and the quarter for continues divestment.

We realized differentials egress, stable compared pipeline of the resulted much benefits ago. also narrower year TMX a which more and to in and additional

with Our and business earnings very well the contributed Downstream higher over performed lower quarter activity also and utilization. turnaround solid

stronger refinery to benefit We the supports crack of despite performance advantages that from continue spreads. softer Canadian financial structural market the

next will quarter. of Over Dan minutes, I the few and detail strong results a the very

quarter So quarter results. $X.XXX now for the activities working let's cash $X.XXX capital. billion of the fourth from when with excluding were Earnings operating impact the review billion of

Upstream slightly quarter fourth worth billion, the years the production the the share Upstream, when per our performance Upstream at highest operational the strong the equivalent assets and annual fourth marks XTO This with day These results of to XTO from the company's XXX,XXX were down past full that and quarter. highest of adjusting in delivered even assets. when For second in our XX $X.XXX fourth oil including volumes barrels value noting $X.XX. gross prior for resulted historical the for the quarter production history. associated results The highest over achieved continued shareholders. In we day total highest strong the divested to contributed divested our per earnings also fourth XXX,XXX Also quarter in year. barrels years in earnings XX over the capture production we year, the earnings per reflect ability

of costs team based year at basis. asset's ever resulted day pleased I gross squarely cost this volumes. I'm milestone, Grand wells quarter further us I'm to lower are another looking Rapids turnaround unit year yet also quarter, behind very delivered focused performance to the growth And extremely annual and carrying full ahead, a a even proud planned which X to highest Kearl cash USD achieving on the the this of achieving unit higher achieving for on when XXXX in with barrel into reduction in structural momentum cash on reduction performance this operating initiatives. the cost strong year our barrels to continue strong they know nearly very We XXXX. production the with producing. advancing us Our led by comparing the a and Cold strong fourth Lake. all activity performance the new and production, we continued and XXX,XXX of expect per exceeding

the continue transformation billion a mid-December Refinery XX%, the maintenance the equates our at that assets Lake quarter. completion performed the very on We recovery the last production leverage with fourth maximize is guidance. The costs work day, utilization of and refinery quarter, start cash per at NCIB Our we the which only quarter activity to to throughput all shareholder Cold in quarter the XXX,XXX full of in of returns. our off turnaround $X.XXX a with of as in being of averaged technology our results. And XXXX year in the XX% is utilization great completed also accelerated discussed of unit saw and at which the to we call. barrels and in purchases top a us end impressive solvent Downstream, Nanticoke planned with well

to payable we cash billion $XX cash shareholders. In in surplus declared The a dividends guidance entire in to quarter the billion shareholders is years. And addition, this finally, billion to we per reflects over further morning, the It $X.XX and $X.X of of increase share, demonstration history. we total December. we XX% total, for company a And also on confidence of in This on communicated per growing the in XXXX. in increase in million delivering and nominal dividends $X.X our April $X.XX of share the X largest the X, our past dividend dividend or XXXX dividend paid is the for returned commitment $XXX year. returning in in

we move our a existing increase per value, on As optimizing asset dividend by that strategy XXX% shareholder us since core XXXX, our base we quarterly our over has of to share remain strategy to allowed focused maximize XXXX. into

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

D. Lyons

$XXX from with billion. is quarter partially operational lower the financial Brad. $X.XXX the production. a reported primarily Starting of Upstream offset from third decrease we higher lower fourth our XXXX, million net result comparing quarter down sequentially, of XXXX, by the of primarily Thanks, partially quarter offset performance. results business, slightly represents fourth in quarter, for This by of When margins fourth prices, a driven as income by net Downstream income stronger of

lower our quarter, each million to to primarily mainly $XXX from shifting impacts are due by down Downstream from $XXX and turnaround reflecting partially Now effects. exchange million higher line inventory looking business lower foreign up and sequentially, attention are $XXX quarter, volumes. earnings third third million offset earnings Upstream $XXX realizations, million and of of favorable

of third Chemical million $XX down generated $X million, Our from quarter. the business earnings

activities. flow. cash billion $X.XXX fourth on Moving operating cash In generated from flows in to quarter, we the

billion We our working the nearly in expenditures Syncrude our at returned focused Cold fourth hand. Shifting expenditures $XXX quarter XXXX of to capital operating Kearl, quarter, fourth progress from timely the the and to free and sustaining of favorable activities on billion, flow, Strathcona. spending $X production quarter of billion fourth XXXX. cash down capital Capital $X.XXX to the course million, with were of ended In the down at flows for quarter billion. Shifting from year distribute effects the over growing $XX fourth third to Excluding spending CapEx. cash Upstream, Full with $XXX to the totaled cash diesel of on XXXX. totaled million from quarter renewable In $XXX quarter shareholders $X.XXX million strategy million Consistent project distributions. Downstream, the fourth mainly we $X.X continued shareholder year Lake. XXXX.

growing we reliable long-standing to our into deliver philosophy demonstrate continue a to Moving XXXX, and dividend.

dividend X. of declared compared a the $X.XX this share first represents of a will quarter on increase I'm already fourth Brad This fourth -- quarter XX% XXXX. noted, morning, we per to sorry, payable As dividend declared of quarter April be an we which early

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

Bradley Corson

Lake. barrels years fourth quarter I chance day. through Dan. mainly per fourth a of look over on versus attention highlights. highest your the up key the focus know XTO I quarter the higher to production XXX,XXX the earlier, at and want you've per volumes versus due XX XX,XXX Upstream this averaged to mentioned XXXX, Production all per third barrels to was adjusting some when the day performance up had divestment. equivalent do quarter in numbers, quarter represents Thanks, Cold And as barrels day the of for X,XXX but our I production for oil

full with a per over year in Our total XX barrels X% equivalent share Upstream or also production the delivered versus years in XXX,XXX increase day, year XX% per increase a XXXX. full oil best

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

start of to cash to down is some only current support the even is production very Kearl January USD of to unit growth over years, work and also barrel over in of major per of record to the Kearl further. This and in XX over find strong new the unit USD XX And in our sharing The beat XX team, will target barrels record past barrel. is per which track As Kearl they and production unit significant stated target it. barrels set forward USD to Kearl and cost over last year barrel, day. on deliver entire our Kearl's meet per efficient achieve XX%. XXXX, journey a strides of a production cash target day. the marks per Kearl begin costs to day, upcoming X our targeted, through at is continue the opportunities Cheryl XXX,XXX with they Investor noting unit look help XXXX XX,XXX by another we This per have worth and to to cash new we initiatives production barrels few grown talking to hard years. as previously and costs It's cost Day, set full below very but the day per year with and lowering record per in cash these at XXX,XXX achieved set opportunities exciting, team, of how And not our reflects off barrel. We've I full barrels of XXX,XXX USD momentum per drive the leverage previously XX.XX milestone made

another to of Turning Lake. Cold highlight XXXX,

XX.XX average our barrel same USD our impress and the For impressive day from barrels per fourth quarter, Lake year. barrel I and averaged Last quarter, from fourth Cold per quarter and quarter Cold new a barrels this per than seeing stated X.XX of full on Rapids, fourth target. The XXXX. the is is USD Grand highlight brought the Grand USD been is further The up instantaneous reducing rates XX,XXX better-than-expected of quarter, day, towards the in cash XX last basis, major cash which per third of Rapids quarterly day, lower-cost last barrels XX,XXX And XXX,XXX the on which resulted Rapids compared per XX,XXX cost versus per USD and at day. production unit production starting the highlighted to up more an our of continued per unit project, of barrels in than Lake an year. A over SAGD Grand barrel achieving year XX.XX barrels per which quarter. has quarter per by driven strong in unit decrease production new barrel day the were has year transformation to results cost basis, XX,XXX production costs peak cash barrels the on solvent-assisted versus of and lower X USD a our it

quarter. While to were up fourth these in resulting maintained, an volumes pleased to of that I'm barrels per XX,XXX the increase be per to barrels X,XXX day confirm day, able for

Lake. The early, Rapids forward Cold Grand the existing X,XXX leverage peak to will which on I comments operations our future per XXXX on upside original Imperial's infrastructure on quarter While of day in funding Construction advancement of and down next few data day, SAGD at year asset in quarter, Cold and late which the of is now Leming solvent-assisted look production. And And the Lake Syncrude. the steam and full per basis barrels expected the about shows share versus the projects barrels our redevelopment through XX,XXX transformation in of step is versus in begin project. third XXXX. per the the day. the a quarter barrels project quarter at growth of and capacity. XXXX facilities continued our per fourth to to production continue clear average first Syncrude was averaged production for XX,XXX the barrels flat of day X,XXX Start-up

quarter, During X,XXX the continued interconnect import gas utilization barrels our incremental Syncrude share oil, and about quarter. the utilize record rates premium day, in annual pipeline per bitumen Syncrude to driving of the to sweet and upgrader producing

costs we Syncrude. XXXX, to into at move we As forward reliability on focus and look continued

per an quarter. Overall, third Nanticoke our we per barrels refined achieve throughput year successful guidance and day, a on highest quarter The to had we which barrels a when fourth moving quarter, year. Strathcona, top average XX%, execution rate of And of the XXX,XXX with XX%. compared and operations XXXX us end also day per the to our this at reflecting utilization fourth the Now had additional enabled utilization barrels of processed the XXX,XXX the turnarounds strong day. turnarounds to year of XX,XXX the we an strong and full quarter in throughout of of Downstream,

fourth in have recovering Looking were middle in compared the resilient is XXXX over we were second gasoline by which see XXXX. in XX,XXX on XXX,XXX we versus facilities ahead to quarter on Overall, first XXXX. with reflect barrels demand. lighter Canada and the and of quarter to construction year the with approximately production XXXX. Results demand XXXX, day XX% some to per renewable at driven day quarter, year-over-year the compared have diesel versus XXX% and sales of Petroleum expected to barrels project day, not product per the third track choices completed XX,XXX when and Strathcona are a per the jet turnaround down in the discretionary quarter variability barrels diesel continue market in sales and to down

driven down fourth the by now quarter lower to were in quarter, offset Turning Earnings the $XX to Aromatics which prices, million, the mainly by million the absence third the earnings were $X versus fourth Chemicals. lower third shift turnaround which prices was in in Aromatics of up of partly million we partially quarter versus by the due absence in and previously quarter XXXX and $X Earnings year activity the discussed. earnings the the the prior offset shift. quarter,

finish similarly, recent we returns new in we progressing year. in ability as year excellent in as significant we in volume So high unchanged. the the to a commitment record journey confident create Imperial very And shareholder continue shareholders significantly on very cost achieved as for another at strong and is XXXX, another in closing, Upstream, XXXX, this unit our guidance. And outlined Upstream to cash our begin strong to our and We our to I'm Downstream quarter reduced achieve delivered targets ahead cost deliver was and we volumes to by value utilization. team off unit our our look

ahead demonstrated that the opportunities increase the cash ongoing and diverse I'm progress of We in commitment for our free her lower carried her our instrumental completion in key significant have X the over management leadership portfolio like including as have to last many and increase the role role contributions We X. wrap accomplishments and for of pleased today we volumes, deliver ever. costs dividend greater very new of her years. up, us committee many since Sherri areas Her I into momentum by have the would the with by NCIB in year, of our of in Evers I'm business, part of accelerated Pathways largest resulted the her recognize before excited shareholders. And a with operating we our announcement day new and that this to across flow wish all best nominal I ExxonMobil. December

move I'd Q&A you. and the and it like continued now Peter. interest again back to to we'll I'll support. always, session, for thank And once As to Thank you your pass

Peter Shaw

Thank Brad. you,

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

please operator, the So could for that, lines questions? you with up open

Operator

first from Thank you. come [Operator the Gupta Instructions] And will line UBS. with question our of Manav

Manav Gupta

wanted I close and was the quarterly to another on memory Brad, the when took have raised you $X.XX, is to if tenure. you now start management during dividend by right, over, congratulating XX% your to hike. $X.XX dividend it my

track to very So that. strong it a does record of take achieve execution

first to want on just I that. My congratulate is refining. you question So on

up we understand stark refiners, -- rate, U.S. in Help the the what XX% still down I earnings across a refiners. are refining resilience contrast U.S. seeing what's earnings understand we at of us driving are here. look higher quarter-over-quarter. When this operated Your are you for XX% materially the quarter-over-quarter. can to to but is

So the can refining understand here. of resilience us you help if

Bradley Corson

first, our over Yes. our recognition I That have flow obviously generation and quite you, increase something last cash of Manav. is to we is return really appreciate abilities shareholders. organization the proud years. as your continued And grow our that to dividend Thank of few the

we're that recognition. of thanks all and proud So that, for quite

strength, say the drivers a terms of there's couple refining In there. I'd of

past, of well counterparts. are all, as the and advantaged especially Canadian Imperial First I've refining U.S. the on versus commented in our refineries sector

We advantaged access crudes. to have

continue to have demand strong marketplace. We in the

that allows superb outlets. And mentioned, the full take infrastructure to then that advantage the as which We really over move we allows to of quarter, market premium you to have we us utilization us also products exceptional our see. had fundamentals

for that quite together, profitable happy with we're a very us all Downstream put and we So when that. and resilient

Manav Gupta

Lake. at about you Leming, on is Phase Any to continue you talk clearly It's the which volumes more well helping X allow the Lake? as results you actually why grow Rapids. at expectations? Perfect. phases drive production Grand Cold exceeded your My of Can future as second records to can Cold

Bradley Corson

for Thanks that question. Yes.

extremely pleased of shared with basis kind objective the we're are previously seeing barrels than with certainly Grand XX,XXX We volumes the with Rapids, funding what a that we higher at day. an of market

As back day. It's barrels We of more up in early volumes Rapids terms range in seeing producing days. of Grand a the XX,XXX in May. indicated, started we're

busy of are developments X phases the So mentioned, analyzing understanding and have are we as our reservoir for results phase I implications production would or future months so -- very several those future. at Grand Rapids. And run we we say time. what the have past, engineers in the in

And very exciting. that's so

we And so not Grand goes Phase at Cold exciting Leming. again, early Rapids up I just be of the as better time broader X, what too super think it production. the on, of long-term tell reaffirming about able but we'll it. when Lake. Way We're in constructing a can process for productivity means start to to and it's developments describe But

know, you year. Rapids, You like accelerated as recall, by which, a Grand project we a about

So now lot it, of more value. that all we accelerated and adds a we're and production seeing

exciting So I the what's an for of future. think just signal ahead

Operator

with will Fong question from next the come CIBC. And Dennis

Dennis Fong

guess initiatives undergoing a on of of fleet as quarter levels to little autonomous bit first advancements technological high maintain, production. you the as that more again, hoping bit guess, the the on on around Kearl. you're dive these was into of that I a little you're in strong some namely are performance, kind one of currently of here kind well helping focusing actually maybe another kind is, applying I that I congratulations at could

Bradley Corson

been next result that the of I'm been great the reduction to hand and guidance to a initiatives. team record. of records, able comments of in of here, wheel and to in Dennis. after it's further about record of unit know, set and Kearl. Kearl, it's out the right production just her growth record she's going we is And cash some you steady on I'm from after we proud of And cash couple for make anticipating continued in net those what got as know growth further is me at specific the result a sitting a super achieve has let her kind are December, Yes, you as question, generation. Cheryl to

Cheryl Gomez-Smith

Thank Great. Brad. you,

important rapidly in Brad So And with I exceptional start we're the think we're and we how made transform improving competitiveness. mentioned, as mining continuing progress XXXX business. it's to to that our

our So few to in a and We're improvements. I'll highlight with journey that things. reliability space, on maintenance going continue

productivity and around digital in anywhere specifically I'll increase this part question The well of culture. digital is to and X% with I'm resulting gains. within second got gets the really mine. And the mine XX% seen improvement trucks. a We're both from to we're about initiatives, to debottlenecking going a And And we've report continuous full trucks. to automated your it our that as the the pleased in we've productivity final, fleet AHS continue that plant including leveraging optimization, as across slate board, we're building anchor from

across slate. So it's looking that for opportunities those all next

of plenty as foundation think opportunities on that So XXXX. important building we but of is look the I forward, most

Bradley Corson

a duration. for I days is thanks each our improvement Cheryl. turnarounds to -- in that have about one how bit one little a few mindset, doing were mentioned continuous And just X you'll duration. turnaround And ago, brag a around year, of that, we recall Cheryl years example XX this And on and

XX to a to extend that XX XX decision a we took interval from months. to So total. year turnarounds reduce between a X X from turnarounds days And year, about turnaround months

efficiency So Since ways those year, the team XX days. that turnaround days. about completed single than XX improve the last turnarounds. from took less And to of then, to days for on look XX this us the in to they continues

interval even So seen taking to historically. to we've a XX potentially and annual what extend impact less even days that than and year, gone year days further some reduce turnaround XX ourselves year's to this we're something from steps equip to in the turnaround a we've

example. what's example the capture stop of doesn't to for benefits, next. how team So It a but looks good I that's And just there. continues another great think

Dennis Fong

focuses A&D taking and that the if you'll second approach question, direction, just context holistic taking underlying done grow and existing executing one, a that with growth, return? And it the this different you, has assets whether position within experience to you're you've great be capital, My remind portfolio be obviously prior on to historical shareholder allocating when job or or evaluating obviously, have on and you in M&A, Brad, me that and make of existing order a look how it rank company, or within development. and bit outside slightly your the it of portfolio. even Can evaluate on can or Appreciate to of you versus little your you better? kind how how examine company you're kind you both portfolio the you develop your in what assets specifically a projects priorities a

Bradley Corson

well. Yes. I are long-standing shareholders. offer underpinned want this Dan is Thanks comments, on cash and by a allocation going to return to our for jump that as approach, surplus principle commitment question. may capital fundamentally, few in strategy, to we mean, that I'll But it our

opportunities dividend that you so we've return very efficiently then We today, surplus and actioned to this with at And as material shareholders. other that growing another dividend. starts And reliable saw increase. to look with cash

so NCIB our where a in for And in for SIB. has future. And our been exercise of capacity we've history We've beyond looked then aperture few our maintain additional and And we've done years. the those had many, many an go-to to the that that.

very with. comfortable our of as well. the at should mention that basic So we're capital a debt I guess We're I blocks that's level of allocation. building of debt kind

at see level point. leverage. we really very debt pay a to debt of priority We're at low don't a this So down

already really comfortable our think, really investment a a I deep outside comes looking of at quite that. Then with portfolio. position within opportunities And we really question we're M&A So of the on have what opportunities, opportunities. portfolio in, unique versus having high-quality we're inventory potential to our

we're And as for existing capital allocating those assets. relate the to so they

Aspen talk we're we're the You to excited about future, the Kearl, us the at Strathcona. But at looking hear Lake, doing project. then what by at potential quite what doing we're Cold of

significantly value actively And technology, a project believe solvent which solvent unlock other will to and so EBRT we that for us commercialize Aspen we're will relative fully technologies. allow the validate progressing pilot to

So as very growth for us, a production -- material material that's investment opportunity.

look other we we're like comparing to Aspen. those at things as opportunities, So M&A

needs And pursue our aperture our so longer-term to is and be synergies acquisition, already It to it that what's portfolio. And to with really needs open. with an in strategically, have strategies. compete consistent unique

more have an are haven't regularly portfolio the is we value accretive our opportunities. like we But evaluating of We internal team projects anything up that folks Aspen. within seen now, than that believe untill

So we an but for sense. make something it acquisition, we're don't need to if looking makes

So that. I anything allocation? that's on how capital Dan, else characterize would

D. Lyons

after since it's No, place, the I and that, think high-return the for then include, flow. first with you just of is return cash debt high growing we're M&A, surplus capital but our maybe to of as growth go shareholders. sustaining potential we then free then at And Brad dividend to our bar and level projects, But reliable which it's and sort to would said, covered the summarize, a given our stop the return it Brad. expectations well, our happy portfolio. cash And look internal we first

a timely way. So that's in

been quite So our a we're -- consistent no change to It's while. philosophy that. for

Dennis Fong

from Great. back. it I'll the Really context you. of turn appreciate both

Operator

Greg from come will RBC. question Pardy next the And with

Greg Pardy

the you've is, you the levels X if then we Canada that you've probably hypothetical, the it Cold tariffs in relationship cash wanted would I to rundown, just those? driven But you you around balances think going did tariff to Exxon. know how for essentially cash there's overhang How where as are the a words, that? And I'm how best really now. like withstand issue, time equipped off, and that very threat then right well stock, to on? see about you by huge sort obviously, technical, just balances? Lake. had analyze are And you but just with is, thinking ask it So to secondly returns, still ticked in could I is something to got relates shareholder bigger to XOM. sure very all and one fronts. bit up first obviously, of the going to maybe about a more Brad. just little Thanks One really Sherri on is repurchase other

Bradley Corson

right. sectors, discussion energy Canada past, across obviously, over And the heavy crude. Thanks Greg. are on strong but tariffs talked really as and interest that, of and Yes, U.S. really U.S. heavily All and lot especially in the all dependent energy. partners Canada's a And other. for each from I've benefit

others, we mutually integral with going how is on of of tariffs. unique of time to And educating the both I, any kind unique many energy a what's I but countries. that insight, spent along and know So the system beneficial lot don't border happen don't and both have with exists sides around to that have

And no move result and I hopeful diplomacy and tariffs flow. will else, so in the prevail, win-win scenario any to restrictions tariffs, I'm energy on we anything impacts end as customers. negative a broadly with that's we no up that economy will believe and will forward,

let's we So avoid I those. But that. can't hope control

what ensuring on control is we focused we're what So is that the we what we can supply. of have lowest control. cost And

place produce possible believe resilience. where the for And that the that crude heavy have us I unique We our in gives options we and We're crude. to we lowest products And trying obviously at cost. do market.

are refinery our acquiring also We meet light runs. crudes to

our that to are we crudes as we're see negatively even those if that the with some value, impacted of we in with would light heavy see offset crudes running of some expect And -- refinery.

more the of much I integration, strength So us makes others. think, than resilient

appears a be day February to big for tariffs. X So

that? talk you We'll underpinned dividend to shareholders. a watching flow that position to like continue to to anything I that And returns that generate material today. we closely. will And be But return our shareholder so our to am profitable. raise Dan, in the or respect want and confident decision to continue about to we'll be clearly anything with be that cash

D. Lyons

of given breakevens, have environments, cash protect Yes. to generate level. don't kind shareholders would balances cash our and factors it's ability through forward. And tariffs. driven asked be primarily particular, primarily to low of a or sort you We debt be forward buybacks, us especially our Greg, Yes, I low to amount would returns going balances, a of going if range to by in need cash our to cash other the by going like had of huge say

return been account into But happening speaking, take environment, we'll shareholders. our has to time consistent. cash those as philosophy the the However, It's is generally surplus we whatever make decisions. at of of course, timely

Greg Pardy

Okay.

thinking growth I company seems So Brad, yes, I've before, around have And right mentioned initiatives your just organic. back wanted underway now. very, to come to acquisitions very versus significant And every to logical.

when potentially dialed kind when solution could acquisitions weigh you be thinking and of where kind Is place you so that limitations already initiatives, there in be there go may where So versus your an growth model? that pipe capacity through into of organic on forth. egress LP your some

Bradley Corson

look would look tax that. the running at cost what's competitiveness are of of we considerations? unique unique opportunity, the What's aspects there Yes. an any Are what's long-term We of egress all considerations? the pool intensity. at Certainly, what opportunity, an carbon room

look we at back see would account. see my this value things factors anything all together. So we to when relative when point, at those we'll of we take Aspen least And development, else earlier all into until we it an comment, at up to those the look wins

Operator

And Hulshof from TD we question Menno have with a Securities.

Menno Hulshof

of fair that event. tariffs, with assume too your optimistic with stage? be and some it to a that the Last an of at But it on start question midyear all midyear I negotiations? but could on been update uncertainties, toll heard, it's peers the this we I TMX. is from Can status believe the including was is a a just get guide I'll while, was

Bradley Corson

on Yes, have don't Menno, that. question. specific thanks for that a I very update

with very outlook timing. we've on don't Our what's obviously, certainly that on comment I point. at the on a position specific say, really shipping broadly directly we on and a it that's basis. And I I'm a to all TMX, more teams very but speaking, are are startup, in regular a the been pleased on this refresh it, operation operation, engaged have of would the

Menno Hulshof

still is a that across see that the get second it. positivity, needs is can we think more that Already, that it just XXXX? then in Or of in in the to cash Got possible maybe a second you're midyear the about XXXX detail still you start-up. half that maybe what But likely then tracking Strathcona. more line? project question is event? terms get And sort would to press release, bit to reiterated And when of be that the happen of you on we -- a flow

Bradley Corson

our to really certainly to -- product to mean excited expand help It's we're a It's Yes. opportunity it us strategic industry. Thanks question. quite by I for project. for the of as us the for slate offerings this view market. we important decarbonize the

the quarter, refinery. So manufacturing them building that we have we of that we're at At to We're the process core hooking Modules delivered. in it advanced. positive. and is construction Strathcona to multiple somewhere as very then production position view the to around facility the of that And the expect complete components is in you'll construction second as And would start well which project. been the recall, us project midyear. up, there's

X other agricultural all, key integral components of supply also first oil the stream. is, vegetable really or Now

negotiating And -- arrangements, us start been And so process of looking we established able then have at unit we're for be we are supply well. as to supply have the relationships in up. sufficient to and longer-term this

third to So the start that important hydrogen. is really ready the work up. And then component continues, of supply but

good expect each work that so start-up. be Products be up, will start underway some up, to to really second of that beginning market supplies to over demand I cost our a just a timing. quickly at we and would constantly working And we to initial and part able with coupled time, quarter feedstocks, and product for that in When really, start this in determine supply at any But being how we feel availability ultimate rates with of other ramp conditions, conditions how market components over on in we'll the position then And with Air refinery reduced like typical by product the is about look what's us product. those of optimize as midyear the up based also as volumes, midyear. time we we're optimizing

this second terms positive flow, to see we flow in cash us, of as would we the for profitable undertaking positive very cash view and expect a yes, year. In half of this

Operator

Neil with Mehta to on moving Goldman Sachs. And

Neil Mehta

in costs, you did next are the tell you I $XX Lake. wanted ultimately on quarter that what and at journey? time cash your know spend at Upstream you What's ability this $XX where to to about And step? are targeting guys just Kearl Where get Cold some there? I

Bradley Corson

obviously a we're question. mean maybe $XX the so we I'll laid back to And we journey. well just that below I in Cheryl Lake on guidance feel at in on way. We're well the Kearl Yes. $XX But and now, as near-term we're Thanks the our of that December, of and to in ask confident about able initiatives that. for range out Cold we have comments quite some the achieve make underway. couple being at

Cheryl Gomez-Smith

Thanks, Sure. Brad.

to add to me we little think us Kearl we and a with, about that let more the is which going as it's cash leveraging to goal, about unit well $XX that reliability have starting as on So enable when scale what's optimization. bit really focus get continued about

our we So have at lever be very going we're powerful and unit a of that's cost. fixed cost that lowering our as to in incremental production, leveraging structure basically Kearl, terms

focus that of mention me digital on optimization reliability, plus deployment So you continued before, heard it's maintenance solutions.

I to the us we as volumes, in also to higher our as If our as lower-cost that, Cold barrels leverage well to productivity the think be but too, so going lower is side, And cost. we're these mix. introducing fixed And leveraging that's grow scale. absolute about base, that get into to mix Lake going that production will improve itself cost

Lake. Brad Grand So which volume the that infills, early both we're the are transforming year lower-cost with continue growing Rapids about this insights and Leming, as as from we're Cold mentioned we SA-SAGD the progress, at and we getting --

a both as Cold So as it's at and denominator numerator Lake both a well opportunity Kearl.

Neil Mehta

the the follow-up. Well, that's It's Kearl. just

to the how could year out? in just your laid I budget plus? that so And XXX about how is in perspective plus. XXX, on with XXX Kearl this guess question the capital-efficient is be context getting talked plus the way, You've the a big goal of you of

Bradley Corson

try Yes. I'll Thanks. answer to that.

we journey this I been announced, we XXX that now, to this the record around number see planned now we for the to is set -- increasing above we've years, another very think be above days some thoughtful, course, We how year. our very cases, future an together another we years can we it's we months. volumes how focused to on what continue not how in early more turnaround. enable do a like unlock And to record cost-efficient last XXXX. X set and as and forward. see on capital-efficient at they shared steps And X the set us go in and a much able as to where any determined will grow And days individual of XXX,XXX. And is be now to is at ability could tell XXX. that. guidance we've And continued be. but And potential big then are last to barrels take reason year plus for for those XXX of above But XXX,XXX string offset of back team days, that longer, too we if by XXX, were especially weeks downtime, the

get pursue it I we're that But the we fully XXX barriers costs. is. base from XXX. to and knock we don't to down great going But only what we've efficient. But heading potential got above that realize fixed potential for see there to we something us towards XXX, capital So it's a until with XXX if know material

we the they're So add to to cash can at come generally, barrels, additional going cost that to value lower and for asset. us variable if flow the adds a

So there, on it. years, I you've couple to come over work laser-focused last hope, of more but seen the demonstrate as us we're

Operator

next Doug Wolfe question from come Research. Leggate the will with And

Douglas George Blyth Leggate

but it. your if I'd X may. on I They perspective both Dan's got So love might breakeven be I've bay, questions,

evolve do of sheet. balance was have the advantage First where you the going, remains also projected related growth you someone, breakeven your does is on breakeven your a to question a potent the sizable earlier. you headroom or it's XX% for think breakeven growth peers. And whether bump, obviously. Manav see because how that or you where dividend my to for with on guys follow-up is relative it's on a whether see kind your the of dividend another I'm it is all, growth, Greg capital about But the I touched curious today what today

sheet have to question tend SIB, we for also about well, guys about, the the think balance don't sheet. stellar the best, think a the stellar and long balances. And you've yes, You got think when earlier one balance We really done -- have about the not we if in time. but got a of cash industry about best

dividend appreciate over dividend So I'm comfortable where on to to breakeven where time? could circle chance if wondering time? And would if over the comfortable idea be ask you to with your us I you moving an And moving the could be I the question, would guess question. the sheet back balance give I with you

Bradley Corson

of breakeven. Happy questions. walk allow And that you done I the but I'll emphasize integral Yes. including we've with breakeven, strategy. Dan Thanks, those what to the said doing Dan would Year. through barrel, New grow our But our dividend about unit first, let to work is a to us I continues dividend believe we're kind cost to improve just to take I'll volume Doug. have we $XX let is that. lower

D. Lyons

with which Thanks, guess included, current capital and capital dividends our XX. our Brad. -- this and had course, most I than less at volumes for on U.S. guidance less said this call, -- of cash outlooks We breakeven for XX we Doug, was Yes. in everything. WTI we and -- than last sustaining December, dollars yes, and

go breakeven I dividend. increased mean were wouldn't from volume we we obviously. growing up low, costs up wedded your dividend we as work breakevens we're above and cost you've our for great reason reductions, us as headroom would A and and a -- good the goal breakeven reason increases the that Brad wouldn't continue went that's unit it you And that. Those dividend those growth some our not give keeping So -- little say pretty bad if the is that like numbers, them. through cash for down to are and and that tight. I things be to to to stop breakeven bit. out, if -- which low higher like pointed would are the a other unit things

could And say numbers with except on detailed of what increase and So in the a of give working you on over and to period, we our what the last this conservative some we model. okay, fact. can't it this is side, side increase unit breakeven assumptions our future volumes and do led we're out that's kind say, I we on cash look kind year That's we sustain? that -- like XX% year, going costs. dividend and dividend put we'd And what to to to keep we dividend

So a we estimates, see fashion, robust dividend to even sure with in our our but it's we and careful grow conservative make room outlook, sustainable. to continue at we'll see always be

not probably our on that's gives So hopefully, to more the that color you thinking. but getting detail, some

Douglas George Blyth Leggate

advantage did It does, that. if Dan. a balance got take What Because about to the lot in of the headroom obviously, want SIB? you've sheet you terms of of

D. Lyons

done. willing a the level prior feel this It possible leverage sheet remains balance not things be investment M&A, buybacks, attractive kind would free historically were flow certainly met possibility beyond that's for our that our of It sense to accretive for Certainly, cash returning what and maybe buy opportunities, we of XXX% we we're We've and that. recently, certainly make practice. said shares? for criteria. hasn't our us back just but we're we've It could Look, billion about borrow like it we call, to answered question happy I'm -- is not earnings I been is. $X our I debt sure. with

leave just it at maybe that. So I'll

Douglas George Blyth Leggate

complete to want don't a I everyone I'm think lunatic. listening Dan,

just the I'll question, let let me go. So you clarify and guys

Sorry this. for

is about at very, cost your the very free can And tremendous for available you I a the the think growth your SIB. low have is I fund at borrow Kearl. cash to guess So projects, it flow you way

end about the of sort thank of as I so leveraging so -- guys, opposed cash king, I So and much, finance I the But but for you for as think as the it appreciate more a to time. answers, is get project it. the at day,

D. Lyons

lunatic, a think Doug. you're don't We

Operator

Patrick O'Rourke And Capital come the with question from next ATB will Markets.

Patrick O'Rourke

steps couple renewable There's that -- and comprehensive there's talked little maybe about the puts takes offtake here. with us and through with diesel of right an I guess the a now? some here final You've dividend of very LCFS out Congratulations increase renewable market and the the facility the viewing around far. launched. market? getting risk sort ask think market antidumping that's of of bit in you advantaged on. on the how so Imperial just been Can lawsuit the you're sort the about and for I you transportation I'll of a facility walk here rundown and of talked the questions noise quick

Bradley Corson

in of talked Thanks There the past. struggling. on renewable Yes. certainly question, I've for of that examples border about projects little are diesel are both And a this the Patrick. other bit the sides

challenged and Our should and the very is as very other project be projects. different these unique characterized not same

gives to We that with economies quite facility else. be to the to favorable within somewhere our of rail more efficient attributes diesel that have of fact we which facility to renewable this that it are facilities, economic multiple unique sorts our are us building facility, than existing all those tremendous a things proposition. Starting Strathcona scale, aspects allow utilities stand-alone

big plus a us. that's So for

from Secondly, in building readily are crops and close we agricultural that proximity. available to them it are oils process

product operating also a relative transportation weather. utility over of And a is that wide leveraging a the from We're proprietary range ExxonMobil catalyst especially affordable, to efficient. us cold for quite allow so premium oils cost produce will its quite conditions, those to

but regular be It used to be not round diesel it have can just allows a seasonally. be have XXX% as that to does can year so be doesn't fuel for also much. And versus in drop be, and to blended

economics of product blend. advantaged. On have our in for what So is top are renewable all we level base already things to demand also that, those fuels underpins a the offering

those the today, cost market. from more on than ourselves now In them producing we so future, efficiently and somebody buying purchased else. we'll And the be

enhances we provincial many this own lot there plan which the would a low carbon sell offer their the of of market. carbon and questions that future economics. Certainly, carbon I product So to about for markets, what's requirements have that policies of just multiple the fuel. into them stated

here relative to a we we together, believe that all to put offering have I others. when differentiated continue So

clarify hope helps So that that. I

Patrick O'Rourke

the need comprehensive. political sides I'm update know you critical as sort the there secondly, long-lead very can and be of of bit both that's and Pathways here, here. sort the is on ordered No, and order then is in sort wondering the of towards what both towards sentiment a terrific plan sort from provide that this shift items in some on of project the here. time to end in to And I the with of an Yes. we of just the were potentially carbon prorogation year? of But and sort respect political of if very of front that short -- spectrum. head a with that parliament,

Bradley Corson

that's view is be political And that's irrespective in in cost of been blessed us a important. need me term, are We to with have to of position industry. largest together. for reserves that our Pathways great carbon competitive Canada, to an puts in our believe need opportunity question. have resources, And sustainable think, together together a And working support reemphasize parties, for tremendous to world. third value companies be see I And oil important and we endowment the to to Patrick, years Alliance X and the that the Yes, us availability globally. But and continue what formed and the the long of be tremendous decarbonizing competitive. energy competitive we brought importance that's we a multiple that

to the decarbonize. competitive term, to to be long over And need carbon so we to look continue

point as we continue first And the becomes the you on that work. our there is original around and And to not continue So we there. based policy a support timing. time committing critical necessary of support investment. We that on, that is of regulatory the we continue startup. it engineering progress difficult fiscal to we the increasingly of look our and work, discussions pipe, still an We're step. as which with goes federal the to yet out, start-up as some provincial can governments, kind the to and point work do establish the urgency meet at have all so objective But XXXX

We permitting work. continue the

continue studies. We the environmental

collaboration, of can indigenous as think because continue timely this an We as the important. moving objective project we forward all it's we with

and So from come. these on items, more to the forward. further we'll we government can move open Hopefully, clarity get

Operator

any remarks. Thank question-and-answer that closing Shaw back I'll conclude the now or additional And Peter does hand you. to for session. it over

Peter Shaw

you thank of team, our everybody. thank And you, joining today. management Well, we want for call the on behalf to

great questions. reach much, If don't please and on we'd you to to weekend. the your have a thank with day answer and hesitate any further team, happy have And to anybody you questions, and very IR that, great be out

Operator

Thank does conclude for excellent today's you. your an We conference. thank have you do And participation, day. that and

Imperial Oil Limited (IMO) 31 Jan 252024 Q4 Earnings call transcript