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Corporate Overview Fall 2018 – Imperial Oil Limited

Imperial Oil Limited · Dec 30, 2018 · 44 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 1
    Corporate Overview Fall 2018 Imperial 2018 1
  2. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 2
    Global liquids outlook Oil to remain the world's largest energy source well into the future Demand mbd 120 Growth driven by transportation, chemicals 100 New Global resources sufficient to meet demand Production 80 Required New…
  3. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 3
    Canadas opportunity Highest quality oil sands expected to be competitive on a global basis Breakeven Brent price US/bbl 125 3rd largest liquid reserves globally 100 mining Track record of innovation, responsible development 75…
  4. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 4
    Imperials operations High quality, integrated, balanced, coast-to-coast asset portfolio Kearl mining F&L marketing Distribution network Syncrude mining Strathcona refinery Sarnia refinery Cold Lake in situ Sarnia chemical…
  5. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 5
    Corporate responsibility Commitment to strong environmental, social and governance principles Taskforce on Climate-related Financial Disclosures guidelines Reducing GHG intensity of existing and future operations 2.4 billion…
  6. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 6
    Safety and operational integrity Organization-wide priority to protect people, assets and the environment Total Recordable Incident Rate Average number of spills 0.5 25 0.4 20 5-yr average 0.3 2017 15 Upstream Downstream & other…
  7. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 7
    Technology and innovation Unparalleled commitment and achievement throughout 138-year history Canadas first Cyclic steam Steam-assisted gravity Solvent-assisted research department stimulation patent drainage patent technology…
  8. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 8
    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…
  9. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 9
    Upstream at a glance Large, long-life predominantly oil sands portfolio 6.5 Norman Wells Syncrude mining with upgrader Kearl mining without upgrader billion boe Cold Lake in situ 2P reserves 400 Unconventional…
  10. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 10
    Upstream overview 30+ year proved reserve life, nearly 17B cash generated over last 10 years Production Annual cash from operations koebd B 3 400 300 2 200 1 100 0 0 2011-14 2015-17 2018e 2011-14 2015-17 Q318 YTD US/bbl…
  11. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 11
    Syncrude Oil sands mining pioneer Mining with 25% IMO Producing upgrader owned since 1978 0.7B bbls 60 kbd 2P reserves 2018 production outlook High value synthetic crude oil Improve reliability by eliminating major events…
  12. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 12
    Syncrude reliability High-potential asset with priority on eliminating one-time events Production kbd Production challenged 90 Significant volume loss events Target production Upgrader performance 60 Reliability improvement…
  13. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 13
    Kearl Next generation oil sands mining Mining without 71% IMO Producing upgrader owned since 2013 3.3B bbls 200 kbd 2P reserves 2018 production outlook Large, high quality resource Improving performance Near-term production…
  14. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 14
    Kearl performance Focused on improving reliability, cost structure and realizations Production and unit cost kbd US/bbl 300 40 Leveraging full organizational capability 200 Growing cash generation capacity 20 Averaging 5/bbl CAD…
  15. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 15
    Increasing to 240 kbd Investing to increase production from 200 to 240 kbd in 2020 Adding supplemental crushing capacity Offset equipment downtime Create surge bin conveyor redundancy Installing slurry piping interconnections…
  16. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 16
    Opportunities for 280 kbd Series of targeted debottlenecking and redundancy improvements Resource optimization Primary separation cell upgrades Secondary bitumen recovery enhancements Froth treatment interconnects Diluent and…
  17. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 17
    Cold Lake Large scale in situ operation Cyclic steam 100% IMO Producing stimulation owned since 1985 1.5B bbls 150 kbd 2P reserves 2018 production outlook Drilling program resumed in 2018 Continued application of new…
  18. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 18
    Cold Lake performance Focus on life-cycle optimization and cash generation Production kbd 200 Continued strong operating performance 150 Maximizing life-cycle return and recovery Optimizing steam distribution 100 Fully utilizing…
  19. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 19
    Cold Lake recovery Ongoing enhancement through technology and innovation Recovery method, % of production 100 Resource life supports technology testing Recovery technology evolving 50 Driving digital solutions Economic and…
  20. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 20
    Unconventional optionality Liquids rich opportunity, paced development approach Significant liquids rich acreage holdings Competitive with US unconventional Fully leveraging ExxonMobil/XTO expertise Initial Duvernay development…
  21. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 21
    Equity crude value Placing crude in markets that maximize general interest value 400 koebd Total Production 25 koebd 75 kbd 300 kbd Bitumen (400 kbd Dilbit) Natural Gas Syncrude synthetic and assorted liquids (Strathcona…
  22. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 22
    Near-term production outlook Growth through capitally efficient projects and reliability improvements Production koebd Sustained production at Cold Lake Ramp-up of Norman Wells Improved reliability at Syncrude Supplemental…
  23. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 23
    Advanced in situ recovery Technology drives economic and environmental performance improvement Cyclic Technologies Cyclic Solvent Liquid Addition to Steam to Enhance Recovery Process (LASER) (CSP) Up to 10% solvent, 90% steam 100%…
  24. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 24
    In situ growth portfolio Large inventory of top tier development opportunities Kearl Accessible via variety of technologies Aspen Syncrude Fort McMurray Multiple phases, 50-75 kbd potential per phase Corner Clyden Chard Design…
  25. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 25
    Resource inventory Progressing multiple development opportunities Level of Definition Regulatory Status Commercial Project Name Resource Concept Development Application Scheme Full Assessment Select Plan Submission Approval…
  26. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 26
    Aspen phase 1 First commercial SA-SAGD development 75 kbd bitumen production Project to develop 1.2 billion barrels 2.6B initial development Central processing facility with cogen Five initial well pads, 67 well pairs…
  27. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 27
    Aspen Technology key to delivering both economic and environmental benefits Pilot results, indexed Relative GHG intensity 100 In situ industry average Industry 50 Imperial SA- SAGD SAGD 0 Capital intensity Cumulative SOR…
  28. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 28
    Why Aspen, why now Large, long-life high quality investment opportunity Annual free cash flow 1st 10-year Average SA-SAGD technology with economic and environmental benefits billion Brent, /bbl 1.0 100 Lower carbon intensity vs.…
  29. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 29
    Growth opportunities Suite of attractive oil sands investment opportunities Near term projects Under evaluation K/bbl K/bbl 40 40 Capital intensity 30 30 Aspen Phase 1 20 Aspen 20 Aspen Cold Lake Phase 1 Expansion Phase…
  30. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 30
    Downstream at a glance Well positioned, high performing and integrated 400 kbd Refining capacity Marketing Logistics Refining 500 kbd Product sales Strategically Strong Quality products positioned refineries logistics…
  31. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 31
    Downstream overview Optimized throughput, growing sales, generated nearly 8 billion in cash since 2014 Refinery throughput and sales Annual cash from operations kbd B 600 2.0 500 1.5 400 300 1.0 200 0.5 100 0 0.0 2009-13…
  32. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 32
    Refining performance Global best practices and targeted investment increase reliability and profitability Utilization, % Regretted loss, % 100 Increasing utilization 90 Two thirds reduction in regretted losses Top-tier Solomon…
  33. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 33
    Sales and market position Market leader in product sales actively capturing new business 2018 YTD Sales KBD Market Share Mogas 254 29% Unmatched scale Diesel 126 22% Integrated across the value chain Jet 41 27% Asphalt 23 29%…
  34. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 34
    Retail Captured 1 position in Q3 2018 Retail sales volumes Superior Products kbd SynergyTM gasoline 180 Synergy Diesel EfficientTM 160 140 Convenience 120 Nearly 2,200 locations 100 Speedpass+ app 80 Loyalty 60 PC Optimum…
  35. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 35
    Chemical at a glance High value products, well positioned, integrated assets 800 Integrated Sarnia Chemical Site Specialty customer products kt Sales Polyethylene 1.3 Billion Cash generated since 2014 Advantaged…
  36. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 36
    Chemical overview Superior products and strong cash generation Annual cash from operations M 300 Spot Fully integrated with Sarnia refinery 250 Marcellus Ethane Flexibility in feedstock optimization Mid-west 200 Ethane Mid-west…
  37. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 37
    Cash flow Delivering value and resiliency through integration, 33 billion from operations over last 10 years Cash from operating activities 5-year average, % B 5 4 Upstream Downstream & Chemical 3 10-year average, % 2 1…
  38. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 38
    Financial strength Strong balance sheet, optionality and access to financial markets June 30, 2018 debt to capital, % 50 Maintain strong balance sheet 25 Pay reliable and growing dividend Invest in high value projects Return…
  39. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 39
    Dividends Priority to pay a reliable and growing dividend Dividend per share 0.80 100+ years of consecutive payment 0.60 24 years of consecutive growth 0.40 8.7% 5-yr compounded growth rate 0.20 Increased to 0.19/sh payable…
  40. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 40
    Share buybacks Proven history of returning surplus cash and preserving value Shares outstanding, million 2,000 Repurchased 50% of shares since 1995 1995 1,500 Reinstated current program in 2017 1,000 Purchases of 2.2B since 2017…
  41. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 41
    Capital expenditures Five-year capital expenditure plan consistent with previous communications Capital expenditures B 3 5-year capex average at 2.1-2.2 billion/year 80% upstream, 20% downstream/other 2 Sustaining capital…
  42. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 42
    Financial strength Resiliency and flexibility under a wide range of prices 2018 2022 annual average B WTI, /bbl 8 Ability to meet highest priorities 6 80 Growth Surplus Significant cash flow leverage 4 Cash 60 2 Growth 40…
  43. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 43
    Why Imperial Distinct competitive advantages that deliver long-term shareholder value Asset base Growth opportunities High quality, long-life assets Large inventory of opportunities across the portfolio to support future upstream…
  44. Corporate Overview Fall 2018 – Imperial Oil Limited – slide 44
    For more information: Dave Hughes Vice President, Investor Relations +1 587.476.4743 dave.a.hughesexxonmobil.com imperialoil.ca twitter.com/ImperialOil linkedin.com/company/imperial-oil youtube.com/ImperialOil Imperial 2018 45

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