2013 TD Calgary Energy Conference July 10, 2013 Rich Kruger
Cautionary statement This presentation contains forward-looking information on future production, project start-ups and future capital spending. Actual results could differ materially due to changes in project schedules, operating…
Imperial Oils business model Deliver superior, long-term shareholder value 1. Long-life, advantaged assets 2. Disciplined investment and cost management 3. Integration and synergies 4. High-impact technologies and innovation…
Strong financial performance Record earnings per share in 2012 Imperial net income billions 4 Chemical Downstream 2012 1Q13 3 Upstream Earnings - billions 3.77 0.80 Corporate Earnings - per share1 4.42 0.94 ROCE - % 23 20 2…
Industry-leading return on capital employed Maximizing investment value and life-cycle asset performance ROCE % 30 25 5-yr. average 20 2012 15 10 5 0 IMO HSE CVE SU CNRL Source: Bloomberg, company publications 5
Unmatched shareholder distributions Nearly 14 billion returned to shareholders in last 10 years Shareholder distributions 2003-2012 billions 15 Share reductions 10 Dividends 5 0 IMO HSE SU CNRL CVE Source: company…
Increased ownership per share 2-3 times ownership increase in the last 20 years Share repurchases* Indexed ownership per share 19942012 2012 vs. 1994 metrics, % 400 300 Outstanding Repurchased 200 848 million 902 million…
Executing plans to achieve significant growth Investing about 40 billion this decade focused on upstream growth Average capex per year* billions 5 4 3 2 1 0 2000-2009 2010-2019 * Upstream, Downstream, Chemical &…
Production volumes to double by 2020 Nearly 200 kbd of additional liquids in funded projects Production outlook* kboed 600 New Opportunities To be Oil Sands - mining funded Oil Sands - in-situ Under 400 Conventional…
Financial strength to support growth plans Strong balance sheet maintained under a wide range of scenarios Debt to capital* % 50% S&P AAA rating 40% 55/bbl WTI Flexibility for new opportunities 30% 95/bbl WTI 20% 10%…
Business segment integration & synergies Delivering competitive advantage across the full value chain Production Refining Chemical Crude and Petroleum products Commodities natural gas and specialties Leveraging ExxonMobil…
Refineries capturing crude price differentials 80% of capacity accesses advantaged mid-continent crudes 2012 throughput kbd 200 Strathcona/Sarnia 100% advantaged Expanding access to Nanticoke 160 Dartmouth converting to a…
World-class upstream assets A distinct competitive advantage Syncrude Cold Lake Kearl 14
Cold Lake A flagship in-situ operation Ownership: 100% Imperial Commercial start-up: 1985 Gross production: 150 kbd Active wells: 4,500 Cumulative production: 1 billion bbls Proved reserves: 1.1 billion bbls*…
Industry-leading reliability Consistently delivering nameplate capacity Production 3 year average 2010-2012* % of capacity IMO Cold Lake MEG Christina Lake CVE Foster Creek SU MacKay River DVN Jackfish CVE Christina Lake CNQ…
Highly competitive cost structure Achieved through operational excellence and cost discipline In-situ cash operating costs* C/bbl CLL Great Divide HSE Tucker STP Thermal SU Thermal DVN Jackfish MEG Christina Lake CVE…
Increasing recovery through innovation Leveraging technology and operational best practices Cold Lake demonstrated recovery % 60 40 20 0 1970's 1980's 1990's 2000's 2010+ 18
Phased expansion via design one, build many Over 1 billion barrels produced, continued growth planned Cold Lake production* kbd 200 Nabiye Mahkeses 150 Mahihkan Maskwa 100 Pilots 50 0 1980 1990 2000 2010 2012…
Nabiye project On schedule and on budget for 2014 start-up Funded in 2012 for 2B 40 kbd production 140 kbd steam generation 170 MW cogeneration 7 pads of 24 wells each More than 40% complete Design one, build many replicates…
Kearl Next generation oil sands development Ownership: 71% Imperial 29% ExxonMobil Commercial start-up: 2013 Gross production: 110 kbd (initial)* 345 kbd (final)* Development cost: 6.80/bbl Recoverable resource: 4.6…
The Kearl value advantage Large resource, long-life production Resource quality Proprietary froth treatment Reliability enhancements Environmental performance Competitive cost structure 22
Proprietary froth treatment Pipeline-quality and refinery-ready crude without an upgrader Sale Sediment Existing 3.5% and water Naphthenic Synthetic crude mines Froth Treatment 96.5% Bitumen Onsite Refinery upgrader…
Reliability enhancements Investments to reduce life-cycle unit operating costs Dual slurry Oversized surge bin Dual hydro transport prep plants lines to main plant site Oversized crusher Dual surge bin feed conveyors…
Environmental performance Kearl full-cycle GHGs about the same as average crude refined in U.S. Wells-to-wheels GHG Emissions* kgCO2/bbl of refined products Saudi ArabiaArab Light Average barrel refined in the US (2005)…
Cost structure competitive with SAGD Profitable across a wide range of oil prices Cost structure* /bbl Realization (vs. Kearl) CO2 tax Sustaining capital Initial development 40 Opex - natural gas Opex - other 30 20 10…
40+ year asset life Gross production plateau of 345 kbd, Imperial share 71% Kearl development plan* kbd 400 Plant Debottleneck 45 kbd 300 Third Ore Preparation Plant 80 kbd 200 Expansion Project 110 kbd Funded 100…
Kearl Expansion Project On schedule and on budget for start-up late 2015 Funded in 2011 for 8.9B Initial production 110 kbd About one-third complete All full-size modules being constructed in Edmonton Same contractors as…
Market access strategy Ensure take-away capacity for all equity crude Optimize use of existing systems to maximize value Participate in multiple new pipeline opportunities Use rail options to bridge and provide insurance…
Refining capacity to maximize Kearl value Unique level of technical, operational and commercial support Gross Coking Refinery* cap. kbd* cap. kbd* Imperial & ExxonMobil refineries can Nanticoke 118 0 Sarnia 127 25 run all…
Technology & innovation Selective value-driven development, industry-leading capabilities Long-term, unmatched commitment Systematic research process 200 million invested in 2012 Integrated with ExxonMobils research…
Potential game-changing technologies A history of success, commitment to further innovate SA-SAGD CSP Solvent-assisted Cyclic solvent SAGD process CIMA NAE Chemically Non-aqueous induced micro extraction agglomeration…
Future opportunities Significant growth potential beyond current plans 2012 non-proved resource base billion oeb* 15 Other Gas 10 Growth Mining opportunities Horn River Liquids 5 Firebag In-situ Progressing Aspen 0 1 2…
Long-term growth Potential of 1+ million barrels per day by 2030 Production outlook* kboed 1000 New technologies/opportunities 800 Oil Sands - mining Oil Sands - in-situ 600 Conventional 400 200 0 2010 2020 2030 *…
For more information www.imperialoil.ca For more detailed investor information, or to receive annual and interim reports, please contact: John A. Charlton Manager, Investor Relations Imperial Oil Limited 237 Fourth Avenue SW…
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