Company Announcements

• Quarterly net income of $1,288 million
• Cash flows from operating activities of $1,527 million and cash flows from operating activities excluding working capital¹ of $1,760 million
• Quarterly Upstream production of 418,000 gross oil-equivalent barrels per day
• Kearl quarterly production of 256,000 total gross oil-equivalent barrels per day (181,000 barrels Imperial's share)
• Cold Lake quarterly production of 154,000 gross oil-equivalent barrels per day, including strong Grand Rapids performance
• Refinery capacity utilization of 91 percent
• Declared second quarter dividend of 72 cents per share
• Intend to renew normal course issuer bid in June 2025

CALGARY, Alberta--(BUSINESS WIRE)--May 2, 2025-- Imperial (TSE: IMO) (NYSE American: IMO):

Imperial reported estimated net income in the first quarter of $1,288 million, up from net income of $1,225 million in the fourth quarter of 2024, primarily driven by higher Downstream margin capture. Quarterly cash flows from operating activities were $1,527 million, compared to $1,789 million generated in the fourth quarter of 2024. Excluding the impact of working capital¹, cash flows from operating activities were $1,760 million, up from $1,650 million in the fourth quarter of 2024.

"Imperial delivered strong financial results in the first quarter, highlighting the resilience of our integrated business model," said Brad Corson, chairman and chief executive officer. "The Upstream business continued to benefit from improved egress and narrower heavy oil differentials, while our Downstream profitability continued to reflect the structural advantages of the Canadian market."

Upstream production in the first quarter averaged 418,000 gross oil-equivalent barrels per day. At Kearl, quarterly total gross production averaged 256,000 barrels per day (181,000 barrels Imperial's share), reflecting extreme cold weather and unplanned downtime, mitigated by enhanced winter operating procedures. Grand Rapids solvent-assisted SAGD continued to exceed expectations with a quarterly average production of 23,000 barrels per day, supporting strong quarterly Cold Lake average gross production of 154,000 barrels per day. The company's share of Syncrude quarterly production averaged 73,000 gross barrels per day.

Downstream throughput in the quarter averaged 397,000 barrels per day, resulting in an overall refinery capacity utilization of 91 percent, including some additional maintenance in the company's eastern manufacturing hub. Petroleum product sales averaged 455,000 barrels per day. Construction continued on Canada’s largest renewable diesel facility at the Strathcona refinery, on track to start up in mid-2025.

During the quarter, Imperial returned $307 million to shareholders through dividend payments and declared a second quarter dividend of 72 cents per share. "Our integrated business model, low break-even and focus on low-cost volume growth continue to support Imperial's strategy of paying a reliable and growing dividend," said Corson.

As previously announced, chairman and chief executive officer, Brad Corson, declared his plans to retire following five and a half years in the role. John Whelan was appointed president on April 1, 2025 and is anticipated to assume the additional roles of chairman and chief executive officer on May 8, 2025. John Whelan returns to Imperial after having served as a senior vice-president of ExxonMobil Upstream Company since 2020. "It has been a privilege to lead the Imperial organization for the last five and a half years. I am particularly proud of what the team has accomplished over this period and am extremely confident in Imperial’s bright future under John’s leadership," said Corson.

"Under Brad's leadership, Imperial delivered outstanding shareholder returns with a proven strategy focused on operational excellence, financial discipline, and low-cost, high-return growth opportunities," said Whelan. "I look forward to the opportunity to build on Imperial's competitive advantages, strong momentum, leveraging industry- leading advantaged assets, and unparalleled talent to continue to deliver exceptional shareholder value."

First quarter highlights

• Net income of $1,288 million or $2.52 per share on a diluted basis, up from $1,195 million or $2.23 per share in the first quarter of 2024.
• Cash flows from operating activities of $1,527 million, up from cash flows from operating activities of $1,076 million in the first quarter of 2024. Cash flows from operating activities excluding working capital¹ of $1,760 million, up from $1,521 million in the first quarter of 2024.
• Capital and exploration expenditures totaled $398 million, compared to $496 million in the first quarter of 2024.
• The company returned $307 million to shareholders in the first quarter of 2025 through dividends paid.
• Production averaged 418,000 gross oil-equivalent barrels per day, compared to 421,000 gross oil- equivalent barrels per day in the first quarter of 2024.
• Total gross bitumen production at Kearl averaged 256,000 barrels per day (181,000 barrels Imperial's share), compared to 277,000 barrels per day (196,000 barrels Imperial's share) in the first quarter of 2024, primarily driven by extreme cold weather and unplanned downtime, mitigated by enhanced winter operating procedures.
• Gross bitumen production at Cold Lake averaged 154,000 barrels per day, up from 142,000 barrels per day in the first quarter of 2024, primarily driven by Grand Rapids solvent-assisted SAGD partially offset by production and steam cycle timing.
• Leming SAGD project remains on track with expected start-up in late 2025. Peak production is anticipated to be around 9,000 barrels per day.
• The company's share of gross production from Syncrude averaged 73,000 barrels per day, consistent with 73,000 barrels per day in the first quarter of 2024.
• Refinery throughput averaged 397,000 barrels per day, compared to 407,000 barrels per day in the first quarter of 2024. Capacity utilization was 91 percent, compared to 94 percent in the first quarter of 2024. Lower refinery throughput and capacity utilization were primarily due to additional maintenance in the company's eastern manufacturing hub.
• Petroleum product sales were 455,000 barrels per day, up from 450,000 barrels per day in the first quarter of 2024.
• Construction continued on Canada’s largest renewable diesel facility at the Strathcona refinery, on track for start-up in mid-2025.
• Chemical net income of $31 million in the quarter, compared to $57 million in the first quarter of 2024.

Recent business environment

During the first quarter of 2025, the price of crude oil and the Canadian WTI/WCS spread remained relatively flat with the fourth quarter of 2024. Industry refining margins improved versus the fourth quarter of 2024, reflecting changes in supply and demand balances.

During 2025, the United States announced a variety of trade-related actions, including the imposition of tariffs on imports from Canada and several other countries. In response, Canada announced its own retaliatory tariffs. Certain tariffs were paused for a period of time but have not been withdrawn. The global trade environment continues to be volatile. The likelihood of the United States, Canada or their trading partners resuming tariffs, imposing new or reciprocal tariffs, export restrictions, or other forms of trade-related sanctions is highly uncertain. Additionally, significant uncertainty exists as to what effects these actions will ultimately have on Imperial, its suppliers and its customers. The company continually monitors the global trade environment and works to mitigate potential impacts.

Operating results
First quarter 2025 vs. first quarter 2024

Price – Average bitumen realizations increased by $8.75 per barrel, primarily driven by the narrowing WTI/WCS spread. Synthetic crude oil realizations increased by $5.28 per barrel, primarily driven by an improved Synthetic/ WTI spread.

Other – Primarily due to favourable foreign exchange impacts of about $130 million.

Lower production at Kearl was primarily driven by extreme cold weather and unplanned downtime, mitigated by enhanced winter operating procedures.

Higher production at Cold Lake was primarily driven by Grand Rapids solvent-assisted SAGD, partially offset by production and steam cycle timing.

Lower refinery throughput was primarily due to additional maintenance in the company's eastern manufacturing hub.

Cash flows from operating activities primarily reflect higher Upstream realizations and lower unfavourable working capital impacts.

Cash flows used in investing activities primarily reflect lower additions to property, plant and equipment.

Cash flows used in financing activities primarily reflect:

Key financial and operating data follow.

Forward-looking statements

Statements of future events or conditions in this report, including projections, targets, expectations, estimates, and business plans, are forward-looking statements. Similarly, discussion of roadmaps or future plans related to carbon capture, transportation and storage, biofuel, hydrogen, and other future plans to reduce emissions and emission intensity of the company, its affiliates and third parties are dependent on future market factors, such as continued technological progress, policy support and timely rule-making and permitting, and represent forward- looking statements. Forward-looking statements can be identified by words such as believe, anticipate, intend, propose, plan, goal, seek, estimate, expect, future, continue, likely, may, should, will and similar references to future periods. Forward-looking statements in this report include, but are not limited to, references to the renewal of the company’s normal course issuer bid; the company’s Strathcona renewable diesel project, including start-up timing; the company’s Leming SAGD redevelopment project, including timing and anticipated production; the resiliency of the company’s integrated business model and continuing to deliver exceptional shareholder value; the company’s focus and strategies, including in respect of low-cost and high-return growth, operational excellence, financial discipline, and paying a reliable and growing dividend; and John Whelan assuming the additional roles of chairman and chief executive officer.

Forward-looking statements are based on the company's current expectations, estimates, projections and assumptions at the time the statements are made. Actual future financial and operating results, including expectations and assumptions concerning the outcome of shareholder voting at the company’s annual meeting of shareholders and the participation of the company’s majority shareholder in such meeting; for the renewal of the company’s normal course issuer bid, approval of the Toronto Stock Exchange and participation of the company’s majority shareholder; future energy demand, supply and mix; production rates, growth and mix across various assets; project plans, timing, costs, technical evaluations and capacities and the company’s ability to effectively execute on these plans and operate its assets, including the Strathcona renewable diesel project and the Leming SAGD redevelopment project; the adoption and impact of new facilities or technologies on reductions to greenhouse gas emissions intensity, including but not limited to technologies using solvents to replace energy intensive steam at Cold Lake, Strathcona renewable diesel, carbon capture and storage including in connection with hydrogen for the renewable diesel project, recovery technologies and efficiency projects, and any changes in the scope, terms, or costs of such projects; for shareholder returns, assumptions such as cash flow forecasts, financing sources and capital structure, and the results of periodic and ongoing evaluation of alternate uses of capital; for renewable diesel, the availability and cost of locally-sourced and grown feedstock and the supply of renewable diesel to British Columbia in connection with its low-carbon fuel legislation; the amount and timing of emissions reductions, including the impact of lower carbon fuels; the degree and timeliness of support that will be provided by policymakers and other stakeholders for various new technologies such as carbon capture and storage will be provided; receipt of regulatory approvals in a timely manner, especially with respect to large scale emissions reduction projects; performance of third-party service providers including service providers located outside of Canada; refinery utilization and product sales; applicable laws and government policies, including with respect to climate change, greenhouse gas emissions reductions and low carbon fuels; the ability to offset any ongoing or renewed inflationary pressures; capital and environmental expenditures; cash generation, financing sources and capital structure, such as dividends and shareholder returns, including the timing and amounts of share repurchases; and commodity prices, foreign exchange rates and general market conditions, could differ materially depending on a number of factors.

These factors include global, regional or local changes in supply and demand for oil, natural gas, and petroleum and petrochemical products and resulting price, differential and margin impacts, including Canadian and foreign government action with respect to supply levels, prices, trade tariffs, trade controls, the occurrence of disruptions in trade or military alliances, and wars; political or regulatory events, including changes in law or government policy, applicable royalty rates, and tax laws; third-party opposition to company and service provider operations, projects and infrastructure; competition from alternative energy sources and competitors who may be more experienced or established in these markets; availability and allocation of capital; the receipt, in a timely manner, of regulatory and third-party approvals, including for new technologies relating to the company’s lower emissions business activities; failure, delay, reduction, revocation or uncertainty regarding supportive policy and market development for the adoption of emerging lower emission energy technologies and other technologies that support emissions reductions; environmental regulation, including climate change and greenhouse gas regulation and changes to such regulation; unanticipated technical or operational difficulties; project management and schedules and timely completion of projects; the results of research programs and new technologies, including with respect to greenhouse gas emissions, and the ability to bring new technologies to scale on a commercially competitive basis, and the competitiveness of alternative energy and other emission reduction technologies; availability and performance of third-party service providers including those located outside of Canada; environmental risks inherent in oil and gas exploration and production activities; management effectiveness and disaster response preparedness; operational hazards and risks; cybersecurity incidents including incidents caused by actors employing emerging technologies such as artificial intelligence; currency exchange rates; general economic conditions, including inflation and the occurrence and duration of economic recessions or downturns; and other factors discussed in Item 1A risk factors and Item 7 management’s discussion and analysis of financial condition and results of operations of Imperial’s most recent annual report on Form 10-K.

Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to Imperial. Imperial’s actual results may differ materially from those expressed or implied by its forward-looking statements and readers are cautioned not to place undue reliance on them. Imperial undertakes no obligation to update any forward-looking statements contained herein, except as required by applicable law.

Forward-looking and other statements regarding Imperial's environmental, social and other sustainability efforts and aspirations are not an indication that these statements are material to investors or require disclosure in the company's filings with securities regulators. In addition, historical, current and forward-looking environmental, social and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future, including future rule-making. Individual projects or opportunities may advance based on a number of factors, including availability of stable and supportive policy, technology for cost-effective abatement, company planning process, and alignment with partners and other stakeholders.

In this release all dollar amounts are expressed in Canadian dollars unless otherwise stated. This release should be read in conjunction with Imperial’s most recent Form 10-K. Note that numbers may not add due to rounding.

The term “project” as used in this release can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.

In this release, unless the context otherwise indicates, reference to “the company” or “Imperial” includes Imperial Oil Limited and its subsidiaries.

Attachment I

Attachment II

Attachment III

Attachment IV

Attachment V

Attachment VI

Non-GAAP financial measures and other specified financial measures

Certain measures included in this document are not prescribed by U.S. Generally Accepted Accounting Principles (GAAP). These measures constitute "non-GAAP financial measures" under Securities and Exchange Commission Regulation G and Item 10(e) of Regulation S-K, and "specified financial measures" under National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure of the Canadian Securities Administrators.

Reconciliation of these non-GAAP financial measures to the most comparable GAAP measure, and other information required by these regulations, have been provided. Non-GAAP financial measures and specified financial measures are not standardized financial measures under GAAP and do not have a standardized definition. As such, these measures may not be directly comparable to measures presented by other companies, and should not be considered a substitute for GAAP financial measures.

Cash flows from (used in) operating activities excluding working capital

Cash flows from (used in) operating activities excluding working capital is a non-GAAP financial measure that is the total cash flows from operating activities less the changes in operating assets and liabilities in the period. The most directly comparable financial measure that is disclosed in the financial statements is "Cash flows from (used in) operating activities" within the company’s Consolidated statement of cash flows. Management believes it is useful for investors to consider these numbers in comparing the underlying performance of the company’s business across periods when there are significant period-to-period differences in the amount of changes in working capital. Changes in working capital is equal to “Changes in operating assets and liabilities” as disclosed in the company’s Consolidated statement of cash flows and in Attachment II of this document. This measure assesses the cash flows at an operating level, and as such, does not include proceeds from asset sales as defined in Cash flows from operating activities and asset sales in the Frequently Used Terms section of the company’s annual Form 10-K.

Free cash flow

Free cash flow is a non-GAAP financial measure that is cash flows from operating activities less additions to property, plant and equipment and equity company investments plus proceeds from asset sales. The most directly comparable financial measure that is disclosed in the financial statements is "Cash flows from (used in) operating activities" within the company’s Consolidated statement of cash flows. This measure is used to evaluate cash available for financing activities (including but not limited to dividends and share purchases) after investment in the business.

Net income (loss) excluding identified items

Net income (loss) excluding identified items is a non-GAAP financial measure that is total net income (loss) excluding individually significant non-operational events with an absolute corporate total earnings impact of at least $100 million in a given quarter. The net income (loss) impact of an identified item for an individual segment in a given quarter may be less than $100 million when the item impacts several segments or several periods. The most directly comparable financial measure that is disclosed in the financial statements is "Net income (loss)" within the company’s Consolidated statement of income. Management uses these figures to improve comparability of the underlying business across multiple periods by isolating and removing significant non- operational events from business results. The company believes this view provides investors increased transparency into business results and trends, and provides investors with a view of the business as seen through the eyes of management. Net income (loss) excluding identified items is not meant to be viewed in isolation or as a substitute for net income (loss) as prepared in accordance with U.S. GAAP. All identified items are presented on an after-tax basis.

Reconciliation of net income (loss) excluding identified items

There were no identified items in the first quarter of 2025 and 2024.

Cash operating costs (cash costs)

Cash operating costs is a non-GAAP financial measure that consists of total expenses, less purchases of crude oil and products, federal excise taxes and fuel charge, financing, and costs that are non-cash in nature, including depreciation and depletion, and non-service pension and postretirement benefit. The components of cash operating costs include "Production and manufacturing", "Selling and general" and "Exploration" from the company’s Consolidated statement of income, and as disclosed in Attachment III of this document. The sum of these income statement lines serves as an indication of cash operating costs and does not reflect the total cash expenditures of the company. The most directly comparable financial measure that is disclosed in the financial statements is "Total expenses" within the company’s Consolidated statement of income. This measure is useful for investors to understand the company’s efforts to optimize cash through disciplined expense management.

Unit cash operating costs (unit cash costs)

Unit cash operating costs is a non-GAAP ratio. Unit cash operating costs (unit cash costs) is calculated by dividing cash operating costs by total gross oil-equivalent production, and is calculated for the Upstream segment, as well as the major Upstream assets. Cash operating costs is a non-GAAP financial measure and is disclosed and reconciled above. This measure is useful for investors to understand the expense management efforts of the company’s major assets as a component of the overall Upstream segment. Unit cash operating cost, as used by management, does not directly align with the definition of “Average unit production costs” as set out by the U.S. Securities and Exchange Commission (SEC), and disclosed in the company’s SEC Form 10-K.

After more than a century, Imperial continues to be an industry leader in applying technology and innovation to responsibly develop Canada’s energy resources. As Canada’s largest petroleum refiner, a major producer of crude oil, a key petrochemical producer and a leading fuels marketer from coast to coast, our company remains committed to high standards across all areas of our business.

Source: Imperial

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Source: Imperial