Imperial Oil Limited · TSX:IMO
Imperial Oil — Shareholder Meeting (May 2020)
31 slides from Imperial Oil's shareholder meeting presentation, May 1, 2020
Slide 1: Annual Meeting of Shareholders
May 1 Annual Meeting of Shareholders
Slide 2: Cautionary statement
Cautionary statement Statements of future events or conditions in this presentation, including impacts on Imperial’s ability to operate its assets, including the possible other oil and gas companies and some that are unique to Imperial. projections, targets, expectations, estimates, and business pla
Slide 3: Meeting proceedings
Meeting proceedings Brad Corson Chairman, President and CEO Ian Laing Corporate Secretary Imperial │ 2020 │ 3
Slide 4: Election of Auditor
Election of Auditor PricewaterhouseCoopers LLP Imperial │ 2020 │ 4
Slide 5: Election of directors
Election of directors David David Brad Krystyna Miranda Jack David Brownell Cornhill Corson Hoeg Hubbs Mintz Sutherland Imperial │ 2020 │ 5
Slide 6: Chairman’s remarks
Chairman’s remarks Brad Corson Chairman, President and CEO Imperial │ 2020 │ 6
Slide 7: Imperial’s COVID-19 response
Imperial’s COVID-19 response The health and safety of our workforce and our communities is our top priority Continued operations to ensure supply of energy to Canadians Enhanced cleaning, health screening and PPE at our work sites Minimizing non-essential on-site personnel to support appropria
Slide 8: Near-term view – current issues
Near-term view – current issues Unprecedented demand reduction due to COVID-19 Global oil supply/demand balance mbd US$/Bbl 105 80 Near-term global energy demand has decreased dramatically 70 100 Estimates evolving and are highly uncertain 60 95 50 Significant oil price decline Driven by OPE
Slide 9: Near-term view - Imperial’s response
Near-term view - Imperial’s response Business-critical work continues to ensure essential supply of energy Capital & exploration spending $B 2.0 $500 million reduction in capital spending Primarily through adjusted pacing of work 1.5 $500 million reduction in operating expenses Adjusting tur
Slide 10: The importance of energy
The importance of energy Petroleum products support essential services, produce critical supplies Transportation and power generation Critical to keeping supply chains moving Fuel for emergency vehicles first responders rely on Power generation to keep economy running Petrochemicals Esse
Slide 11: Energy and society
Energy and society Access to safe, affordable, reliable and abundant energy critical to human development Human development index New Production Required THE SIZE OF THE CIRCLES DEPICTS RELATIVE SIZE OF POPULATION Energy demand per capita (1000 BTU/person/day) Source: 2018 U.N. Human Development Rep
Slide 12: ESG performance of global reserve holders
ESG performance of global reserve holders Canada sets the standard among top global reserves holders Yale index - Environmental Social progress index - Social World Bank index - Governance 100 100 100 80 80 80 60 60 60 mining 40 40 40 20 20 20 in situ 0 0 0 US US Saudi Arabia Iraq Saudi Arabia Kuwai
Slide 13: ESG at Imperial
ESG at Imperial New Sustainability Report outlines Imperial’s commitment to responsible growth Environmental Reduced GHG emissions intensity (GHGi) in operated oil sands by more than 20% over the past six years Target to reduce GHGi by additional 10% by 2023 compared to 2016 levels Social
Slide 14: Imperial’s operations
Imperial’s operations High quality, integrated, balanced, coast-to-coast asset portfolio Kearl mining Distribution network F&L marketing Syncrude mining Strathcona refinery Sarnia refinery Cold Lake in situ Sarnia chemical Rail terminal Nanticoke refinery Research Upstream production Refining Petrol
Slide 15: Imperial’s business model
Imperial’s 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 Operational excellence and responsible growth ExxonMob
Slide 16: Safety performance
Safety performance Industry-leading performance and commitment to ‘Nobody gets hurt’ 5-year average incident rate Rate* 0.80 0.60 0.40 2019 0.20 0.00 HSE CNQ CVE SU IMO *2014-2018 Total Recordable Incident Rate = Incidents per 200,000 hours worked Source: company reports Imperial │ 2020 │ 16
Slide 17: 2019 results
2019 results Focus on strengthening performance and returning value to shareholders 398,000 boepd $2,200 million Upstream production Net income 353,000 bpd $4,429 million Refinery throughput Cash from operations 475,000 bpd $2,004 million Petroleum product sales Returned to shareholders Imperial │ 2
Slide 18: Upstream assets
Upstream assets High-quality resource base with over 25-year proved reserves life Production Kearl koebd Mining - PFT 400 71% interest 350 300 Cold Lake Kearl In situ – CSS/other 250 100% interest 200 150 Cold Lake Syncrude 100 Mining - Upgrader 25% interest 50 Syncrude 0 Other 2009 2014 2019 Proved
Slide 19: Kearl performance
Kearl performance Focused on long-term profitable growth, cost structure, and growing realizations Q1 production kbd Successfully commissioned 2 new crushers 250 Record first quarter production of 226 KBD March production of 248 KBD 200 Addresses key area of reliability 150 Significant mit
Slide 20: Downstream assets
Downstream assets Canada’s largest refiner and petroleum product marketer Strathcona refinery Volumes kbd 191 kbd capacity 500 Petroleum product sales 400 Sarnia refinery 119 kbd capacity 300 Refinery throughput 200 Nanticoke refinery 113 kbd capacity 100 0 Fuels marketing 2009 2014 2019 Coast-to-co
Slide 21: Downstream strength
Downstream strength Positioned for continued industry-leading performance High-performing refineries Strong brands and loyalty Advantaged crude and attractive markets High-value sales growth Market-leading scale and integration Robust cash flow Imperial │ 2020 │ 21
Slide 22: Chemical
Chemical Integrated petrochemical site produces high-value products used in everyday life Feedstock % 100 Other Cost-advantaged feedstocks Marcellus High-value specialty resins ethane 50 Well located to access customers Added global capacity impacting margins Refinery off gas 0 2017-19 Imper
Slide 23: Technology and innovation
Technology and innovation Unparalleled commitment and achievement throughout 140-year history Significant research and development program Two research centers in Canada Ability to leverage ExxonMobil Extensive lab and field testing Next-generation commercial technologies RADAR Radar Imper
Slide 24: Digital transformation
Digital transformation Productivity enhancement across the portfolio GPSGPS Digital foundation established 2017-2019 Investing in a portfolio of opportunities 3DLaser sensor sensing Autonomous haul program ramping up >$500 million of additional value potential RADAR Radar Imperial │ 2020 │ 2
Slide 25: Growing value
Growing value Improving performance and resiliency in lower price environments Annual cash from operations $B WTI, US$/Bbl 5 70 Cash Flow WTI 60 4 50 3 40 Downstream Upstream 2 & Chemical 30 20 1 10 0 0 2015 2016 2017 2018 2019 Imperial │ 2020 │ 25
Slide 26: Financial strength
Financial strength Strong balance sheet, optionality and access to financial markets December 31, 2019 debt to capital % 40 1. Maintain strong balance sheet 20 2. Pay reliable and growing dividend 3. Invest in high value projects 4. Return surplus cash to shareholders 0 CNQ CVE SU HSE IMO BBB BBB- B
Slide 27: Shareholder returns
Shareholder returns Long-standing priority to return cash to shareholders Dividend per share Shares outstanding $ millions 1.00 900 0.80 850 0.60 800 750 0.40 700 0.20 650 600 0.00 Year-end 2017 2018 2019 Year-end 2009 2014 2019 2016 2019 Paid basis Imperial │ 2020 │ 27
Slide 28: Why Imperial
Why Imperial Distinct competitive advantages that deliver long-term shareholder value 140 year Canadian High-quality upstream Advantaged downstream Synergies across full history with exceptional assets with significant assets with strong ongoing value chain people and expertise growth potential perf
Slide 29: Q&A
Slide 30: Scrutineers’ report
Scrutineers’ report Ian Laing Corporate Secretary Imperial │ 2020 │ 30
Slide 31: Annual Meeting of Shareholders
May 1 Annual Meeting of Shareholders