Delivering superior, long-term value January 2016 Imperial 2016 1
Canadian business environment Large, accessible upstream resources Mature, competitive downstream markets Relative political stability, competitive fiscal regime Evolving regulatory, environmental framework Market access…
Imperials business model Deliver superior, long-term shareholder value Long-life, competitively advantaged assets Disciplined investment and cost management Value-chain integration and synergies High-impact technologies and…
Organizational priorities Focus on the things within our control Base business operating fundamentals Asset-specific improvement plans Achieving full value of recent investments Prudent scope and pace of new investments…
Business scope Industry leadership in all aspects of the value chain Syncrude mining Kearl mining Strathcona refinery Sarnia refinery Cold Lake in situ Edmonton rail terminal Nanticoke refinery Research Fuels & Lubes…
Financial performance Demonstrates the strength of our business model Net income, /share 5-year average, % 5 Downstream & Other Upstream 4 3 Downstream & Other 2 Upstream 1 0 2010 2011 2012 2013 2014 Imperial 2016 7
Industry-leading capital efficiency Maximizing investment value and life-cycle performance Return on capital employed, % 20.0 5-year average 2014 10.0 0.0 IMO CNQ HSE SU CVE Source: company publications Imperial 2016 8
Unmatched shareholder distributions Over 12 billion returned to shareholders in the last 10 years 2005-2014 distributions, billions 15 Share reductions Dividends 10 5 IMO SU HSE CNQ CVE Imperial 2016 9
Reliable and growing dividends Committed to returning cash to shareholders Annual distributions, per share 0.60 100+years of 0.30 consecutive payment 20 years of 0.00 consecutive growth 05 06 07 08 09 10 11 12 13 14 Dividends…
Completing unprecedented period of growth Investments funded largely with cash from operations Average annual capex, billions 2010-2014 total billions 6 Cash from operations 20 4 Cash from asset sales 2 2 Investments 27 0…
Production increasing significantly 100+ kbd of additional liquids on stream in 2015 Liquids production outlook, kbd1 500 400 Kearl initial 2013 110 kbd2 300 Cold Lake Nabiye 1Q15 40 kbd 200 100 Kearl expansion 2Q15 110 kbd2 0…
Cash flow capacity increasing with production Financial resilience under a wide range of prices Annual average, billions 6 Ability to cover sustaining capital requirements 4 80 Options to pursue selective 60 growth investments 2 40…
Rapid response to new price environment Aggressively pursuing cost reductions and efficiencies Cash unit costs, /boe1 40 Upstream Downstream Spending thresholds reset 30 Renegotiated 3rd party contracts 20 Executed price amendments…
Downstream & Chemical overview Operational excellence and integration drive performance Refining Chemical Fuels & Lubes Strathcona Sarnia Nanticoke Sarnia Esso Mobil 1 421 kbd 94% 953 KT 100% 485 kbd 1,700 refining capacity 2014…
Strong cash flow with selective investments More than 7 billion of net cash generated over the past 5 years Downstream & Chemical net cash, billions Downstream & Chemical capex, % of depreciation 2 150 100 Edmonton 1 rail terminal…
Solomon refining performance ranking Strong performance in North America, industry-leading in Canada 1st Quartile 2nd Quartile Imperial refineries Canadian industry 3rd Quartile excluding Imperial 4th Quartile Non-energy Process…
Fuels Marketing excellence Leading market share in all product segments Market Market share position Wholesale 28% 1 Retail1 18% 2 Aviation 35% 1 Marine 30% 1 Asphalt 33% 1 Lubricants 26% 1 1Source: Kent Market Share, The Kent Group…
Retail business model Conducting assessment of remaining company-owned sites Company owned, Branded wholesaler agent operated owned and operated 500 stations 1,200 stations Imperial Agent Considerations Imperial 3rd party Market…
Highly profitable chemical business Top-tier polyethylene manufacturer Earnings, millions 250 record record 200 150 100 50 0 2010 2011 2012 2013 2014 3Q15 YTD Imperial 2016 20
Upstream overview Large, long-life assets with growth potential Cold Lake Syncrude Kearl In situ portfolio Unconventional gas Oil sands research Imperial 2016 21
Cold Lake: a world-class in situ operation Best-in-class operational performance Cyclic steam stimulation 100% Imperial owned 1st production in 1985 1.8B bbls 1 170 kbd 2P reserves current production1 Large, high quality…
Industry-leading reliability Achieved through life-cycle cost discipline, systematic approach 2014 reliability, % of capacity 2014 cash operating costs, C/bbl Cold Lake Cold Lake Imperial Peers 0 20 40 60 80 100 0 5 10 15 20…
Cold Lake future growth potential Midzaghe project summary submitted to AER in April 2015 Grand Rapids formation - 500-600 million bbls resource potential1 55 kbd production capacity, 25-30 year life - SA-SAGD technology, successful…
Syncrude: a pioneer in oil sands mining Strategic asset with improvement potential Mining with upgrader 25% Imperial owned 1st production in 1978 1.1B bbls 1 2P reserves 70 kbd 5-year average production1 Synthetic crude…
Syncrude focus areas Improving resilience in low price environment 2010-2014 production loss, % Turnaround planning and execution Other - Mid-cycle de-coking EM/IOL best practice implementation Upgrading Leadership development,…
Kearl: next generation oil sands mining Establishing new performance standards Mining without upgrader 71% Imperial owned 1st production in 2013 3.2B bbls 1 2P reserves 220 kbd gross production Large, high-quality resource…
Proprietary froth treatment Producing pipeline-quality bitumen without an on-site upgrader Sediment and water Bitumen Dilbit Kearl Paraffinic Diluent froth treatment Refinery Asphaltenes Sediment and water Other mines…
Efficient cost structure Sustain production at capacity, drive cost efficiencies Cash operating costs, % Target: less than C30/bbl Cost above field Property taxes Focused on: Mine operations & Plant reliability Logistics &…
Near-term focus on asset performance 40+ year asset life, 345 kbd regulatory production limit Kearl, kbd1 400 Annual regulatory limit 300 Sustain 220 kbd targeted average production rate1 150 200 Pursue efficiencies and low 110 cost…
Market access strategy Ensure efficient 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 timing and provide…
Edmonton rail terminal Provides significant flexibility and optimization value 210 kbd unit train capacity Joint venture with Kinder Morgan Strategic value Equity crude flow assurance Mitigation of apportionment impact on…
Research priorities Deliver performance improvements and add long-term value Cyclic solvent process Extended reach wellbores and completions IMO Tailings dewatering Next generation 1 billion lubricants annually Non-aqueous…
Example: Cold Lake resource recovery Achieved through technology, innovation and operational best practices Cold Lake demonstrated recovery, % 80 2010+ 60 2000s 40 1990s 1980s 20 1970s 0 Thermal Pilots Commercialization Megarow…
Innovations drive lower GHG emissions Indexed well-to-wheels GHG emissions intensity, % 125 New technologies implemented or under evaluation by Imperial 100 75 California CSS Mining Venezuela SAGD SA-SAGD Kearl Average Mexico…
Large total resource base 19 billion barrels of oil equivalent to support long-term growth YE 2014 resource base, billion boe1 20 Other Gas 15 Contingent Growth Resource Mining opportunities 10 On Hold Liquids Development Pending…
In situ growth opportunities 300+ kbd production potential, development planning ongoing Resource potential 5 billion barrels1,2 Top-tier quality Enabling technology SAGD / SA-SAGD Potential scope 7+ phases, 55-75 kbd per phase…
Natural gas opportunities Large acreage position, development optionality Resource potential 540,000 net acres 14 TCF potential1,2 Liquids-rich Montney/Duvernay Development options Large-scale export project Drilling for North…
Factors impacting pace of future growth Project Competitiveness Technology Market Advancements Conditions Regulatory Financial Environment Considerations Imperial 2016 40
Executive summary Deliver superior, long-term shareholder value History of industry-leading financial and operating performance Significant value delivered through technology, integration and synergies Completion of growth projects…
For more information www.imperialoil.ca Twitter /ImperialOil YouTube /ImperialOil LinkedIn /Imperial-Oil For more detailed investor information, or to receive annual and interim reports, please contact: Meredith C. Milne Manager,…
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