IMO - Buy Imperial Oil Or Shares Of Majority Owner Exxon Instead?
2024-02-05 12:09:34 ET
Summary
- Imperial Oil is a Canadian integrated oil company with significant oil sands production, refining, and petrochemicals operations.
- The company reported relatively strong Q4 earnings, with record production at its Kearl mining asset and a 20% increase in its quarterly dividend.
- The Trans Mountain Pipeline Extension project is expected to benefit Imperial Oil and the Canadian oil industry by providing additional exit capacity for oil sands production.
- Today, I'll review IMO's Q4 report and consider if investors should buy shares in IMO or, instead, invest in IMO's majority owner (69.6%) Exxon.
Integrated oil company Imperial Oil ( IMO ) is one of Canada's largest oil sands producers. IMO is also Canada's largest refiner - operating three refineries with a combined total capacity of 433,000 bpd. In addition, the company has a 25% interest in the Syncrude partnership and is also a significant producer of petrochemicals in Canada (see graphic below). As most of you know, Imperial Oil is majority owned by Exxon (69.6%). Today, I will review Imperial's Q4 earnings report released last Friday and consider if it makes sense for investors to own stock in IMO instead of simply buying shares in its majority owner Exxon Mobil ( XOM ) instead....
Buy Imperial Oil Or Shares Of Majority Owner Exxon Instead?