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Barclays Americas Select Franchise Conference – Imperial Oil Limited

Imperial Oil Limited · May 13, 2014 · 40 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. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 1
    Barclays Americas Select Franchise Conference May 13, 2014
  2. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 2
    Business overview Industry leadership across all the full value chain Syncrude mining Nanticoke refinery Kearl mining Strathcona refinery Cold Lake cyclic steam Sarnia refinery Research Sarnia Fuels & Lubes…
  3. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 3
    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…
  4. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 4
    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…
  5. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 5
    Financial performance Results demonstrate the strength of our business model Net income /share 5 2013 1Q14 Downstream & Other Earnings - billions 2.8 0.9 Upstream 4 Earnings - per share1 3.32 1.11 ROCE - % 12.9 12.0 3…
  6. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 6
    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 Source:…
  7. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 7
    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 publications 8…
  8. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 8
    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 9 Imperial 2014
  9. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 9
    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…
  10. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 10
    Fuels & Lubricants marketing World-class brands, industry-leading performance 1,700 sites; 470 company-owned Marketing brands: 2013 sales: 454 kbd Concentrated in premium markets Highly efficient distributor network…
  11. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 11
    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…
  12. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 12
    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…
  13. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 13
    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…
  14. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 14
    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…
  15. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 15
    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…
  16. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 16
    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…
  17. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 17
    Nabiye project status 40 kbd expansion, target start-up year-end 2014 Funded in 2012 for 2 billion, 76% complete (through 1Q14) 280 million bbls1 7 pads of 24 wells each 140 kbd steam generation 170 MW cogeneration Design one,…
  18. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 18
    Cold Lake production forecast Long-life asset, significant growth potential kbd1 300 200 100 0 2013 2018 2023 2028 2033 1before royalties 19 Imperial 2014
  19. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 19
    Syncrude: a pioneer in oil sands mining Strategic asset with improvement potential 25% Imperial, 1st production in 1978 Synthetic crude, 70 kbd production1 1.2B bbls 2P, 1.6B bbls contingent1 High-value production stream…
  20. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 20
    Priority on increasing production Focus is to improve reliability of existing facilities Syncrude production kbd1 80 Operating procedures 60 Facility maintenance 40 Coker feed stability 20 Sustaining projects 0…
  21. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 21
    Driving organizational effectiveness Delivering cost reductions, building workforce capabilities Syncrude workforce employees 6000 Strengthening leadership structure Enhancing asset team accountability 5000 Increasing…
  22. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 22
    Kearl: the next generation oil sands mine Establishing new performance standards 71% Imperial, 2013 initial start-up 220 kbd gross funded capacity1 3.6B bbls 2P, 1.0B bbls contingent1 Large, high-quality resource Proprietary…
  23. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 23
    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…
  24. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 24
    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…
  25. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 25
    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 1100%, before royalties 26 Imperial 2014
  26. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 26
    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…
  27. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 27
    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 81% complete…
  28. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 28
    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…
  29. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 29
    Growth investments peaking 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, Chemical &…
  30. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 30
    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…
  31. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 31
    Industry 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…
  32. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 32
    Market access strategy Requirements for equity crude and refining feedstock covered Optimize use of existing systems to maximize value Participate in multiple new pipeline opportunities Use rail options to bridge and provide…
  33. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 33
    Pipeline projects Participating in multiple new pipelines 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…
  34. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 34
    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…
  35. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 35
    Large resource base to support further growth 14+ billion oil-equivalent barrels of probable and contingent resources YE 2013 resource base billion oeb1 20 Other Gas 15 Growth Contingent opportunities Resource 10 Mining…
  36. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 36
    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…
  37. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 37
    Unconventional gas opportunities Large acreage position, development optionality Resource potential 540,000 net acres 20 TCF potential1,2 Liquids-rich Montney/Duvernay Development options Drilling for North American market…
  38. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 38
    Long-term potential Opportunities to produce 1 million barrels per day by 2030+ Production outlook kboed1 1before royalties 39 Imperial Investor Days
  39. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 39
  40. Barclays Americas Select Franchise Conference – Imperial Oil Limited – slide 40
    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: John A. Charlton (through June…

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