Executive Overview Rich Kruger, Chairman, President & CEO
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 innovation…
Company priorities Disciplined focus on performance, execution and creating value Base business fundamentals + Maximizing asset performance + Capturing cost and organizational efficiencies Progressing growth opportunities +…
Scope of operations Nationwide leadership across the full value chain Kearl mining Research Syncrude mining Sarnia refinery Rail terminal Cold Lake in situ Sarnia chemical Strathcona refinery Nanticoke refinery Fuels…
Integration & synergies Delivering competitive advantage in all business lines Equity crude placed in Upstream highest netback markets Oil & natural gas production Cost-advantaged feedstocks for refineries & chemical IMO / XOM…
Technology leadership Unparalleled commitment, history of research and innovation Canadas first Cyclic steam Steam-assisted Solvent-assisted research stimulation gravity drainage technology patent department patent pilots IMO 1…
Core Upstream asset overview Focus on large, long-life oil sands portfolio Kearl Unconventional production, kbd Mining - PFT 71% interest 400 Highest liquids production since 1989 Highest total production since 1995 Syncrude 300…
Cold Lake: world-class in situ operation Best-in-class operational performance Cyclic steam 100% IMO Producing stimulation owned since 1985 1.7B 165 bbls kbd 2P reserves1 average production1 Large, high quality bitumen resource…
Achieving lower cost per barrel Mature, lean asset continuing to see improvements Unit cash opex, US Production, kbd 2015 industry unit cash opex, C indexed % 100 180 75 120 Cold Lake 50 60 25 0 0 2014 2015 3Q16 0 5 10 15 20…
Kearl: next generation oil sands mining Driving operational performance and synergies Mining without 71% IMO Producing upgrader owned since 2013 3.2B 220 bbls kbd 2P reserves1 targeted production2 Large, high-quality bitumen…
Achieving lower cost per barrel Cost discipline, economies of scale fundamental to success Unit cash opex, US Production, kbd indexed % 100 150 75 More than 50% reduction in unit opex 100 50 Expansion benefiting cost profile 50 25…
Enhancement opportunities Activities focused on efficient capacity creep Existing scope Implementation of operational learnings to enhance capacity Incremental scope and optimize asset Equipment upgrades and utilities integration to…
Syncrude: pioneer of oil sands mining Improvement underway to capture full potential Mining with 25% IMO Producing upgrader owned since 1978 1.1Bbbls 76kbd 2P reserves1 average production1 High value, synthetic crude production…
Reliability improvement Performance driven by execution of long-term strategic plan Production1, kbd Impact of fire & turnarounds 90 Reliability risk management 60 Planning and execution excellence 30 Focus on upgrader…
Enhancement opportunities Leveraging existing and owner-driven oil sands expertise Reliability Utilization of expertise, competency and equipment Synergy strategies to enhance performance Identify further opportunities to leverage…
In situ growth portfolio Multiple opportunities, development planning ongoing Resource potential 5 billion barrels bitumen1,2 Top-tier quality Enabling technology SA-SAGD / other solvent technologies Potential scope Multiple phases,…
In situ technology advancements SA-SAGD provides step-change improvement opportunity Pilot results, indexed % 100 SAGD Industry 75 Economic, environmental gains SA- SAGD IMO Ability to scale efficiently 50 Technology ready to…
Downstream & Chemical overview Operational excellence and integration drive performance Refining Operations, % Volumes, kbd Nanticoke Sarnia 100 500 Strathcona 2015 10-year Marketing 75 avg Esso Mobil 1 50 250 Chemical Sarnia…
Strong cash flow, selective investments More than 10 billion net cash generated since 2011 Net cash, C billion Retail sale proceeds 3 Strong cash generating capabilities 2 Continued structural advantages 1 Low sustaining capital…
Refining: efficient, value-driven business Integration elevates advantage in mature industry Nanticoke, Sarnia, Strathcona, Ontario Ontario Alberta 421 kbd 92 percent refining capacity 2015 utilization Well-positioned,…
Continuous improvement Global leadership, ongoing competitive focus 2015 refinery utilization, % 100 90 Improvement vs. 2010 80 70 IMO Canada* North America Global Source: BP Statistical Review of World Energy 2016,…
Rail terminal Strategic asset provides options to reach high value markets Edmonton, Location Start-up April Alberta advantage 2015 Joint 210K venture bbl/d with Kinder gross Morgan capacity Equity crude flow assurance…
Fuels & Lubes: marketing excellence Delivering valued products to customers nationwide Wholesale Commercial Industrial 1,700 + 478 BW kbd retail sites1 2015 sales Focused on premium markets High capability distributor…
Retail conversion Committed to enhance retail offering and grow value Existing, successful Fuel technology partnerships development Long-term supply Customer experience agreements enhancements Commitment to grow Standardized…
Chemical: unique, commodity business One of Canadas leading producers of chemical products Sarnia, Refinery Location Ontario integration advantage 945 287 kt million 2015 sales 2015 record earnings Top-tier asset, specialty…
Financial performance Demonstrating value of integration through the business cycle Cash flow from operating activities, C billion Five-year average, % 5 4 3 Downstream Upstream 2 & other 1 0 2011 2012 2013 2014 2015 3Q16 YTD…
Financial strength Strong balance sheet, priority access to financial markets 3Q16 debt to capital, % 40 30 Leverage XOM relationship 20 Borrow on most attractive terms 10 Optimize use of floating rate debt 0 Maintain capital…
Shareholder distributions Proven history of returning cash and preserving value Dividend per share1, C 2006-15 average payout ratio1, % 0.60 IMO HSE 0.40 CVE 0.20 SU CNQ 0.00 2005 2010 2015 0 5 10 15 20 25 30 35 1Adjusted for…
Capital efficiency Maximizing investment value and life cycle performance Return on capital employed, % 25 10-year average 3-year average 15 5 IMO HSE SU CNQ CVE -5 Source: company publications Imperial 2017 32
Financial resilience Strength provides flexibility under a range of oil prices 2016-20 annual average, C billion 4 55 3 Ability to meet highest priorities 2 45 Significant cash flow leverage Growth Options to pursue growth 1…
Why Imperial Distinct competitive advantages that deliver long-term value Asset base Growth opportunities High quality, high performing assets A large inventory of attractive opportunities across the portfolio to support future…
Executive Overview Rich Kruger, Chairman, President & CEO
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