Canadian Energy Leadership Delivering superior, long-term value
Executive summary 3 Imperial 2014
Business overview Participation in all aspects of the value chain Syncrude mining Nanticoke refinery Kearl mining Strathcona refinery Cold Lake cyclic steam Sarnia refinery Research Sarnia Fuels & Lubes marketing…
Competitive assessment Industry leadership across all business lines Cold Lake Best-in-class operating performance; continued growth potential Syncrude High-value production; improvement actions ongoing Kearl Next generation…
Business environment Favourable investment climate, but not without challenges Large, accessible upstream resources Mature, competitive downstream markets Political stability, competitive fiscal regime Market access…
Organizational priorities Manage risks, maximize value and achieve profitable growth Focus on base business fundamentals SafetyOperational IntegrityReliabilityProfitability Implement asset-specific improvement plans Ensure quality…
Global energy outlook 8 Imperial 2014
A worldwide view to 2040 2 billion more people on the planet 130 percent larger global economy about 35 percent greater demand for energy non-OECD countries lead the growth in demand about 60 percent of demand supplied by…
Demand for all energy sources to increase Global energy demand Quadrillion BTUs 250 2040 200 2010 150 100 50 0 Oil Gas Coal Nuclear Other Source: ExxonMobil 2014 Outlook for Energy; other includes biomass/waste,…
Oil sands production to continue to grow North American liquids mbd Demand Canadian Oil Sands Net Imports Biofuels Other Petroleum Crude & Condensate Source: ExxonMobil 2014 Outlook for Energy 11 Imperial 2014
Corporate overview 12 Imperial 2014
Business model Deliver superior, long-term shareholder value Long-life, competitively advantaged assets Disciplined investment and cost management Integration and synergies High-impact technologies and innovation Operational…
Imperial - ExxonMobil relationship Significant benefits that provide a unique competitive advantage Benefits to Imperial Personnel development Operational best practices Technology sharing Scale-related synergies Commercial…
Enterprise risk management Comprehensive systems to manage business risks 15 Imperial 2014
Personnel safety Safety is first in all we do Workforce safety Incidents per 200,000 hours worked 1 Goal Nobody Gets Hurt 0.5 0 Industry Imperial 16 Imperial 2014
Financial performance Results demonstrate the strength of our business model Net income /share 5 2013 1H14 Downstream & Other Earnings - billions 2.8 2.2 Upstream 4 Earnings - per share1 3.32 2.56 ROCE - % 12.9 14.9 3…
Business segment profitability High performing upstream and downstream businesses 2013 Upstream profitability 2013 Downstream profitability /oeb /bbl 20 20 15 15 10 10 5 5 0 0 IMO SU CVE HSE SU IMO CVE HSE…
Industry-leading return on capital employed Maximizing investment value and life-cycle performance 2013 5-year average % % 20 20 15 15 10 10 5 5 0 0 IMO SU HSE CNQ CVE IMO CVE HSE CNQ SU Source: company…
Unmatched shareholder distributions 13 billion returned to shareholders in last 10 years 2004-2013 Distributions billions 15 Share reductions 10 Dividends 5 IMO HSE SU CNQ CVE 20 Imperial 2014
Long-life, high-quality proved reserves 3.6 billion oil-equivalent barrels, concentrated in world-class assets YE 2013 proved reserves billion oeb1 4 Other Syncrude 3 Cold Lake 2 1 Kearl 0 Year-end 2012 1after…
Large resource base 18 billion oil-equivalent barrels, up 10% in 2013 YE 2013 resource base billion oeb1 20 Other Gas 15 Growth Contingent opportunities Resource 10 Mining Liquids 5 Progressing Probable In situ…
Significant growth investments Spending 40+ billion this decade concentrated on upstream projects Average annual capex billions 6 5 4 3 2 1 0 2000-2009 2010-2014 2015-2020 Includes Upstream, Downstream,…
Production positioned to double 200 kbd of additional liquids capacity in funded projects Production outlook koebd1 600 New Opportunities Not yet Oil Sands - mining funded Oil Sands - in situ 400 Conventional Under…
Large cap growth comparison We estimate Imperial will exhibit the strongest per share growth in the peer group over the next several years, driven in large part by its expansions at Kearl. - Peters & Co. Estimated cash flow per share…
Downstream & Chemical overview 26 Imperial 2014
Integration & synergies Delivering competitive advantage across the full value chain Production Refining Chemical Crude oil and natural gas Petroleum products Commodities and specialties 27 Imperial 2014
Downstream & Chemical strategies Maximizing the value of every molecule Consistently deliver best-in-class performance Provide valued and high-quality products and services Lead industry in operating efficiency and…
Refining & Chemical Canadas largest refiner, integrated chemical facility Strathcona, Sarnia, Nanticoke Capacity: 421 kbd Sarnia Chemicals 2013 sales: 940 KT Efficient, well-positioned assets Integrated, advantaged…
Strong cash flow with selective investments More than 6 billion of net cash generated over the last 5 years Downstream & Chemical net cash Downstream & Chemical capex billions % of depreciation 150 2 100 1 50 0 0…
Maximizing refining value Lowering costs through advantaged feeds and energy efficiencies Mid-continent crude Indexed energy intensity % of throughput % 100 100 Industry Imperial 75 95 50 90 25 85 0 80 2010 2012…
Leveraging ExxonMobil global best practices Unique technical, operational and commercial support networks Systematic approach to achieve operational excellence: Personnel safety Energy efficiency Facility reliability…
Strong Chemical performance Top-tier polyethylene producer, low-cost feedstock, specialty customers Feedstock Indexed volume & unit margin % % Cost 100 200 Ethane High Margin Propane Volume 150 Marcellus ethane Ethane…
Fuels & Lubricants marketing World-class brands, extensive distribution system 1,700 sites; 470 company-owned Marketing brands: 2013 sales: 454 kbd Concentrated in premium markets High capability distributor network…
Marketing excellence Leading market share in all product segments Market Market share position Wholesale fuels 24% 1 Retail1 18% 2 Aviation 35% 1 Marine 30% 1 Asphalt 35% 1 Lubricants 27% 1 1Source: Q4 2013 Kent Market…
Retail value proposition Profitably fulfilling customer needs, industry-leading performance Esso rank Retail margin Retail measure vs. industry Site contribution 1 Non-fuel margin 1 Non-fuel Net site cash cost 1 Fuel Non-fuel…
Upstream overview 37 Imperial 2014
Upstream strategies Operational excellence and profitable growth Maximize value of existing production Invest in projects that deliver superior results Enhance resource value through high-impact technologies Pursue the highest…
Cold Lake: a world-class in situ operation Industry-leading performance, further growth potential 100% Imperial, 1st production in 1985 4,500 wells, 150 kbd1 production 1.7B bbls 2P, 3.3B bbls contingent1 Large, high quality…
Industry-leading reliability Achieved through comprehensive, systematic approach 2013 reliability % of capacity IMO Cold Lake CVE Foster Creek CVE Christina Lake SU Firebag CNQ Primrose HSE Tucker Lake 0 20 40 60 80…
Competitive cost structure Achieved through operational integrity, life-cycle cost discipline 2013 cash operating costs /bbl HSE Tucker CVE Foster Creek SU Thermal IMO Cold Lake CVE Christina Lake CNQ Thermal 0 5 10…
Increasing resource recovery Achieved through technology, innovation and operational best practices 80 Cold Lake demonstrated recovery % 2010+ 60 2000s 40 1990s 1980s 20 1970s 0 Thermal Pilots Commercialization…
Nabiye project status 40 kbd expansion, target start-up year-end 2014 Funded in 2012 for 2 billion, 89% complete (through 2Q14) 280 million bbls1 7 pads of 24 wells each 140 kbd steam generation 170 MW cogeneration Design one,…
Focused on increasing production Priority is to improve reliability of existing facilities Syncrude production kbd1 80 Operating procedures 60 Equipment monitoring 40 Facility maintenance 20 Coker feed stability…
Executing sustaining projects Projects being delivered on schedule, on budget Average capex per year millions1 600 500 400 Aurora North Mine Relocation Aurora North Tailings Management 0.9 billion2 Complete 0.8 billion2…
Initial development update All three trains operational, ramping up to 110 kbd sustainable capacity Kearl bitumen production kbd, gross1 80 60 40 20 0 2Q13 3Q13 4Q13 1Q14 2Q14 1100%, before royalties 51 Imperial…
Production successfully marketed More than 20 refineries have processed Kearl dilbit to-date First processed in Imperial and ExxonMobil refineries Sales to third parties began in 4Q13 No operational issues of concern…
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High resource quality A life-cycle unit cost advantage Athabasca undeveloped mining resources ore grade, % bitumen Increasing Mining 12.0 Efficiency 11.5 Kearl Processing Increasing Efficiency 11.0 10.5 10.0…
Proprietary froth treatment process Producing pipeline-quality crude without an on-site upgrader Sediment and water Existing mines Bitumen Synthetic crude Naphthenic froth treatment Onsite Refinery upgrader Sediment and…
Improved environmental performance Wells-to-wheels GHGs about the same as average crude refined in U.S. % 125 Production Refining Distribution Combustion 100 75 50 California Mining synthetic Venezuela Kearl…
Efficient cost structure Sustain production at capacity, drive efficiencies Unit cash operating costs /bbl1 1before royalties 57 Imperial 2014
Kearl expansion project status On schedule and on budget for start-up in 2015 Funded in 2011 for 8.9 billion Same design as KID 110 kbd additional production Same major contractors Full-size modules in Edmonton 90% complete…
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40+ year asset life Expansion potential to 345 kbd Kearl development plan kbd1 400 300 Expansion/Debottleneck evaluating 125 kbd 200 Expansion Project under construction 110 kbd 100 Initial Development - producing 110…
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 contingency…
Industry transportation costs Significant value in minimizing transportation costs Alberta to U.S. Gulf Coast /bbl, indicative 25 20 15 10 5 0 Committed Walk-up Efficient Inefficient pipeline pipeline rail rail…
Pipeline projects Production and refining requirements covered Commitments to new capacity kbd 400 Currently transporting 400 kbd from Alberta 300 Secured 390 kbd of additional capacity 200 Base Keystone Gulf Coast Access…
Rail projects Capability to bridge gaps due to pipeline timing Edmonton rail loading terminal Joint venture with Kinder Morgan Strategically located 100-250 kbd unit train capacity High specification rail cars In service early…
Oil sands research A history of success, new technologies being advanced In situ In situ Mining SA-SAGD CSP NAE Solvent-assisted Cyclic solvent Non-aqueous SAGD process extraction Deliver performance improvements and…
300+ kbd new in situ potential Development planning activities ongoing Resource potential 300,000 net acres 4.7 billion barrels1,2 Top-tier quality Enabling technology SAGD / SA-SAGD Potential scope 9+ phases 35-45 kbd per…
69 Imperial Investor Days
Aspen project 1.1 billion barrels potential, regulatory application submitted Three phases, 45 kbd each Design one, build multiple SAGD/SA-SAGD technology Regulatory filing: December 2013 Progressing technical…
Unconventional gas opportunities Large acreage position, development optionality Resource potential 540,000 net acres 20 TCF potential1,2 Liquids-rich Montney/Duvernay Development options Large-scale export project Drilling…
LNG Early stages of evaluating the competitiveness of an export project Government engagement Celtic acquisition Scoping facility February 2013 size & cost Fiscal and Resource Pipeline Liquefaction Shipping Regas Market…
Final comments 73 Imperial 2014
Long-term potential Opportunities to produce 1 million barrels per day by 2030+ Production outlook kboed1 1before royalties 74 Imperial Investor Days
Factors impacting pace of further growth Project Competitiveness Technology Market Advancements Conditions Regulatory Financial Environment Considerations 75 Imperial 2014
Business model Deliver superior, long-term shareholder value Long-life, competitively advantaged assets Disciplined investment and cost management Integration and synergies High-impact technologies and innovation Operational…
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 Milne Manager,…
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