IMO:CC - Imperial Oil: Exxon Mobil Subsidiary With Predictable Cash Flows With An 11% FCF Yield

2024-05-07 10:30:00 ET

Summary

• Imperial Oil reported strong Q1 earnings with a strong upstream production performance and net profit of C$1.2B.
• The company's cash flow statement showed positive operating cash flow of C$1.08B and net free cash flow of over C$1B.
• Imperial Oil's robust cash flow profile and predictable capex requirements make it an attractive investment opportunity.

Introduction

As it has been a few years since I last discussed Imperial Oil ( IMO ) ( IMO:CA ), which is almost 70% owned by Exxon Mobil ( XOM ), I wanted to have another look at this producer of heavy oil. Back in 2020 (and before) I liked its vertical integration and sound financial management, and after several series of share buybacks, I wanted to see if the company’s current share price of close to C$100 is justified....

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