Morningstar | Imperial Oil's 3Q Exceeds Expectations; Kearl Production on the Rise
No moat Imperial Oil reported third-quarter production of 393 thousand barrels of oil equivalent a day, up 17% sequentially and above our expectations. Higher production was driven by improved reliability at Kearl coupled with the lower-than-expected impact of maintenance activities. Gross production at Kearl averaged a record-high 244 mboe/d. Management expects 2018 production at the project to average 200 mboe/d, an increase of 14% from the fourth quarter of 2017.Imperial also received regulatory approval for the Cold Lake and Aspen expansion projects. We expect both projects to be developed with solvent-assisted technology and could add 200 mboe/d of incremental production.
The company continued its share repurchases. During the quarter, Imperial repurchased approximately 10 million shares, totaling CAD 418 million. The company intends to repurchase a total of 40 million shares over a 12-month period ending June 2019.
The company expects to release its full third-quarter financial report in early November, after which we will update our model, At this time, our $36 (CAD 47) fair value estimate and no-moat rating are unchanged.
For a detailed look into Canadian crude and pipeline trends, please refer to our September Energy Observer, "Don't Overlook Oil Sands: Falling Costs and More Infrastructure Will Make Canadian Production Globally Competitive."
Imperial Oil is an integrated oil company. Co. is active in all phases of the petroleum industry in Canada, including the exploration for, and production and sale of, crude oil and natural gas. In Canada, Co. is a producer of crude oil, natural gas and petroleum refiner and a marketer of petroleum products. Co. is also a producer of petrochemicals. As of Dec 31 2017, Co. had 1.57 billion barrels of oil-equivalent basis of net proved reserves, which consisted of 44.0 million barrels of liquids, 641.00 billion cubic feet of natural gas, 473.0 million barrels of synthetic oil, and 946.0 million barrels of bitumen.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.