INNOVATION, GROWTH, INTEGRITY Investor Day March, 2012
Agenda 9:30 am Welcome John Charlton Manager, investor relations Canadian Energy Leadership Bruce March Chairman, president and chief executive officer Doubling Production by 2020 Glenn Scott Senior vice-president, resources…
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…
Canadian Energy Leadership Bruce March
Global energy demand will grow Demand likely to grow approximately 30% by 2040 Energy demand quadrillion BTUs 300 Pace of demand growth Annual Growth Rate to 2040 Nuclear moderated by efficiency 0.7% gains across the world…
Existing oil fields will continue to decline Significant new sources of supply will be required Global liquids* mb/d By 2035, 2/3rd decline Nuclear in production from oil fields producing in Coal 2010 (IEA) Need for new…
Canadas oil sands a world class resource An exceptional opportunity readily accessible to investors World oil resources* billion barrels 300 265 250 211 Canadas 52% Oil Sands 200 174 151 143 150 Rest 48% of World 102…
Canada an attractive investment climate Canada remains an excellent jurisdiction for business Positive attributes Stable democracy Resource development encouraged Private investment welcomed Calgary Challenges remain…
Safety leadership Nobody Gets Hurt Lost time incident rate incidents per 200k hours 0.3 Safety is a key indicator of US Petroleum Industry operations excellence Benchmark - Contractors 0.2 US Petroleum Industry Same rigor…
Environmental performance Best ever Environmental Compliance Incidents performance Environmental compliance incidents 40 No incidents with public or environmental consequences 30 in 2011 20 10 0 2009 2010 2011 10
Solid financial performance Integrated strength reflected in 2011 results Net income per share (diluted basis) /share 5 2011 4 EAT ( millions) 3,371 3 EAT ( per share) 3.95 ROCE (%) 25.4 2 Gross Production* (koebpd) 297 1…
Industry-leading ROCE Focused on extracting maximum value from every asset Return on capital employed* % 50 IMO competitive advantages IMO Operational excellence 40 Portfolio quality Investment discipline 30 HSE Technical…
Superior shareholder returns Long term focus delivers high returns to investors Toronto Stock Exchange* % 20 10 Creating shareholder value through Dividends 0 Growth IMO Share buybacks -10 S&P/TSX Energy Index S&P/TSX…
Added non-proved resource Over 150 years of production coverage at current rates Non-proved resource* billions oil equivalent barrels 16 Added 6.5 billion boe of resource in past decade through organic growth 12 2011 resource…
Unique competitive advantage ExxonMobil Only publicly traded Canadian company with access to leading global expertise Industry leading technology Project management expertise Best practices transfer Training and development…
Proven business model A focus on investment discipline, operational excellence Disciplined Investment Operational Excellence Safety and environment Controls integrity Operational Excellence Cash Flow Superior Growth…
Doubling Upstream Production by 2020 Glenn Scott
A premier portfolio Development opportunities are weighted to the oil sands Non-proved resource Proven reserves / non-proved resource* billions oil equivalent barrels Athabasca 14 Syncrude 8.1 GBO mineable oil sands 12 in-situ…
Investing in growth opportunities Production doubles by 2020 primarily from liquids Production outlook* kboed 600 new opportunities oil sands 400 conventional 200 0 2010 2013 2016 2020 * before royalties 20
Cold Lake a premier in-situ asset Over 1 billion barrels produced; Nabiye expansion sanctioned Cold Lake production* kbd 200 Nabiye Mahkeses 160 Record 160 kbd production in 2011 Mahihkan New 162 kbd quarterly volume 120…
Cold Lake operations excellence Industry-leading reliability performance Production 3 year average* % of capacity Cold Lake MacKay River Foster Creek Christina Lake Primrose/Wolf Lake Peace River Surmont Jackfish…
Cold Lake recovery enhancement Technology sustains and builds in-situ production Demonstrated recovery at Cold Lake (%) 80 60 Late lifecycle technologies in use Liquid Addition to Steam for Enhanced Recovery (LASER) 40…
Cold Lake realizations Cold Lake bitumen attracts a premium in the market Bitumen realized prices* C/bbl 80 Imperial Cold Lake Low TAN bitumen 60 Competitor range Requires less diluent than some other bitumens 40 Price floor…
Cold Lake Nabiye project Similar to Mahkeses and a continuation of design one build many concept Nabiye 40 kbd production Facilities 140 kbd steam generation 170 MW cogeneration 7 pads of 24 wells each Initial regulatory…
Cold Lake future development Grand Rapids an untapped Cold Lake formation Cold Lake 100% IOL SAGD resource in Grand Rapids formation (current production from deeper Clearwater zone) SA-SAGD potential Preliminary development…
Kearl main plant site River water intake Hydro-transport External tailings area Utilities Froth treatment Extraction North/South tank farm Maintenance services 27
Kearl development plan On target to reach 345 kbd by about 2020 71% IOL, 29% ExxonMobil Initial development sanctioned May 2009 110 kbd initially Startup 4Q12 Expansion Plant Site Expansion project sanctioned Dec 2011 110…
Kearl a lasting unit cost advantage One of the best undeveloped mining resources Athabasca undeveloped mining resources Revenue components* ore grade (%) per OEB 12.5 Increasing Mining 80 Efficiency Earnings / 12.0 Government…
Kearl reliability Pre-investment to enhance system availability Kearl Availability % Design and operability enhancements 100 Dual hydro-transport lines with peak 345 kbd 60 percent utilization each Mine debottleneck Increased…
Aspen the next development after Kearl Project overview Kearl 52 section lease 35 km south of Kearl 100% Imperial Oil High quality SAGD resource Syncrude ASPEN SA-SAGD potential Development plan: 80 kbd phased End of…
Syncrude many areas targeted for improvement Building a foundation based on Global Managing Systems & Best Practices Status Reliability Project Management Safety, Health & Environmental Risk Financial Risk 33
Syncrude many areas targeted for improvement Improving reliability is a long term commitment Status Reliability Stewardship & Improvement Leadership Design Equipment Systems People Operate Maintain 34
B.C. unconventional shale gas Horn River, British Columbia 340,000 net acres with ExxonMobil Pilot field work underway Objective: full field business case Demonstrate well productivity Provide cost confidence Assess well…
BREAK 36
Technology Leadership Bruce March
Oil sands technical leadership Over half a century of innovation and unmatched research capability In-situ Mining Field 1966 1978 1982 1990 2000 2005 2007 2013 201x Pilots CSS Produced SAGD 3D seismic Infill LASER CSP HT-PFT CIMA…
Oil sands technical leadership 50+ years of innovation and unmatched research capability In-situ Mining Field 1966 1978 1982 1990 2000 2005 2007 2013 201x Pilots CSS Produced SAGD 3D seismic Infill LASER CSP HT-PFT CIMA NAE…
Oil sands technical leadership 50+ years of innovation and unmatched research capability In-situ Mining Field 1966 1978 1982 1990 2000 2005 2007 2013 201x Pilots CSS Produced SAGD 3D seismic Infill LASER CSP HT-PFT CIMA NAE…
Oil sands technical leadership 50+ years of innovation and unmatched research capability In-situ Mining Field 1966 1978 1982 1990 2000 2005 2007 2013 201x Pilots CSS Produced SAGD 3D seismic Infill LASER CSP HT-PFT CIMA NAE…
Oil sands technical leadership 50+ years of innovation and unmatched research capability In-situ Mining Field 1966 1978 1982 1990 2000 2005 2007 2013 201x Pilots CSS Produced SAGD 3D seismic Infill LASER CSP HT-PFT CIMA NAE…
Tailings technologies Tailings technology comparison of alternatives Initial Chemical Material Space Technology Opex Capex Use Handling Requirement MFT Low High High High High Thin lift drying MFT High High Medium Medium…
COSIA An industry group formed to improve oil sands environmental performance 12 oil sands producers working together on environmental issues Tailings, water, land, and greenhouse gas emissions Accelerate the pace and scope of…
North American Downstream & Chemicals Businesses Bruce March
North American shale gas Upstream developments are driving downstream & chemical opportunities Natural gas prices to remain low Arbitrage opportunities for LNG, NGVs Ethane supply growth Advantaged feedstock for ethylene…
North American tight oil Upstream developments are driving downstream opportunities Growing supply of mid-continent tight oil Volatile WTI-Brent differentials High utilization of complex refining but not deep resid conversion…
Kearl transportation Upstream / downstream integration provides value uplift for Kearl Research support to determine Kearl refining parameters Plan to sell KID* volumes to equity refineries and 3rd parties Current pipeline…
Financial Performance & Discipline Paul Masschelin
Solid financial performance Integrated strength reflected in 2011 results Net income per share (diluted basis) /share 5 2011 4 EAT ( millions) 3,371 3 EAT ( per share) 3.95 ROCE (%) 25.4 2 Gross Production* (koebpd) 297 1…
Upstream business results Operational excellence in base business while advancing future growth 2011 EAT ( millions) 2,457 ROCE (%) 22 Gross Production* (koebpd) 297 Liquids Production* (kbd) 255 Oil sands production* (kbd)…
Downstream business results Strong results in a challenging market 2011 EAT ( millions) 884 ROCE (%) 29 Refinery throughput (kbd) 430 Net petroleum product sales (kbd) 447 Investments ( millions) 166 Strategy: leverage…
Chemical business results Anchored by a world class polyethylene plant with advantaged feedstock 2011 EAT ( millions) 122 ROCE (%) 59 Petrochemical sales (kT) 1,016 Strategy: optimize feedstock advantage (e.g. refinery &…
Operations excellence operating costs Cold Lake continues to have very competitive operating costs SAGD & CSS Operating Costs* C/bbl 50 40 25 years of commercial Cold Lake operation and 1B bbls 30 Competitive range produced…
2012 significant operating events Higher than average maintenance planned for the 2nd quarter of 2012 Syncrude Coker 8-3 Strathcona refinery FCC*/Alkylation; 40 days Sarnia refinery FCC*; 50 days Cold Lake Mahkeses…
Uninterrupted dividends since 1891 Per share dividend payments have increased every year for last 17 years Annual paid dividends per share* /share 0.50 5.7 billion returned to shareholders 0.40 0.30 Dividends per share have…
Financial strength enables growth Spending plans of 35 40 billion this decade on upstream growth Capital and exploration expense billions 6 5 4 AAA balance sheet supports 3 Business cycle resilience Pursuit of opportunities…
A history of share buybacks 51% of shares bought back from 1995 to 2009 Shares Outstanding* billions 2.0 15.5 billion returned to shareholders 1.5 1.0 0.5 0.0 1993 1995 1997 1999 2001 2003 2005 2007 2009 * shares…
Imperial Oil the competitive advantage An investor in Imperial acquires an unmatched set of qualities Track record maximizing shareholder value Premier portfolio of assets High growth trajectory Double production by 2020…
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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