Imperial Oil Limited - IMO STOCK NEWS

Imperial has secured a long-term contract with Air Products to supply low-carbon hydrogen for its renewable diesel complex at the Strathcona refinery in Alberta. The agreement supports the construction of a hydrogen plant that will help produce over 1 billion liters of renewable diesel annually, significantly reducing greenhouse gas emissions. Air Products is investing CAD 1.6 billion to enhance its Edmonton facility, intending to supply approximately 50% of the hydrogen output for this project. The renewable diesel initiative is set to create around 600 construction jobs and is expected to reduce emissions by 3 million tonnes per year.

On September 6, 2022, Imperial (TSE: IMO) announced a long-term hydrogen supply contract with Air Products (NYSE: APD) for its renewable diesel complex at the Strathcona refinery in Alberta. Air Products will supply low-carbon hydrogen from its new Edmonton facility, supporting the production of over 1 billion litres of renewable diesel annually. The project, expected to reduce greenhouse gas emissions by 3 million tonnes yearly, involves a CAD $1.6 billion investment by Air Products. This collaboration aims to enhance Canada’s low-carbon hydrogen market while creating around 600 construction jobs.

Imperial has successfully finalized the sale of XTO Energy Canada to Whitecap Resources for $1.9 billion, with Imperial receiving $940 million. This transaction will result in an estimated after-tax earnings gain of around $200 million in Q3 2022. The sale aligns with Imperial's strategy to concentrate on key oil sands assets, encompassing significant acreage in the Montney and Duvernay shales. The divested assets yield approximately 140 million cubic feet of natural gas and 9,000 barrels of liquids daily, reinforcing Imperial's focus on delivering long-term shareholder value.

Imperial Oil Limited (TSE: IMO, NYSE American: IMO) has declared a quarterly dividend of 34 cents per share, payable on October 1, 2022, to shareholders of record on September 2, 2022. This dividend matches the previous quarter's amount. Imperial boasts over a century of steady growth and has increased its annual dividend for 27 consecutive years. As Canada's largest petroleum refiner, the company emphasizes innovation in responsibly developing energy resources while maintaining high business standards.

Imperial reported a strong second quarter with a net income of $2,409 million, a significant increase from $366 million in the same period last year. Cash flow from operating activities reached $2,682 million, up from $852 million in 2021. Average upstream production stood at 413,000 barrels per day, marking the highest second quarter production in over 30 years. The company returned over $2.7 billion to shareholders, including dividends and a substantial issuer bid. A strategic divestiture of XTO Energy Canada for $1.9 billion is set to enhance focus on core oil sands assets.

Exxon Mobil Corporation (NYSE:XOM) reported strong financial results for Q2 2022, with earnings of $17.9 billion, up from $5.5 billion in Q1 and benefiting from increased production and higher commodity prices. The company generated $20 billion in cash flow from operations and maintained robust capital investments totaling $9.5 billion. Exxon is advancing its lower-emission initiatives, including significant carbon capture projects, while refining throughput increased by 180,000 barrels per day. Cash flow led to $16.9 billion in free cash flow, improving the net-debt-to-capital ratio to 13%.

Imperial Oil Limited (TSE: IMO, NYSE American: IMO) will host its 2022 Second Quarter Earnings Call on Friday, July 29, at 9 a.m. MT. CEO Brad Corson will lead the call, providing brief remarks before addressing questions from analysts. The call follows the release of the company's second-quarter earnings earlier that day. Interested parties can register for the live webcast here, which will also be available on the company's website for one year.

Imperial has announced the sale of XTO Energy Canada to Whitecap Resources for $1.9 billion, with Imperial's share being $940 million. The transaction is expected to close by the end of Q3 2022, pending regulatory approvals. This sale aligns with Imperial's strategy to concentrate on key oil sands assets, enhancing its focus on upstream resources. The assets sold include significant acreage in Montney and Duvernay shales, producing approximately 140 million cubic feet of natural gas daily and 9,000 barrels of liquids.

Imperial Oil Limited has received approval from the Toronto Stock Exchange for a normal course issuer bid (NCIB) to repurchase up to 31,833,809 shares, representing 5% of its total outstanding shares, over the next 12 months starting June 29, 2022. The NCIB aims to utilize excess cash and mitigate share dilution, with ExxonMobil expected to sell its shares concurrently to maintain its 69.6% ownership stake. This follows a previous repurchase program where Imperial bought 35,583,671 shares for approximately $1.529 billion.