imperial oil
Toronto symbol IMO, is Canada’s largest integrated oil company. It also operates over 1,900 retail gas stations under the “Esso” banner. ExxonMobil owns 69.6% of Imperial’s stock.
Imperial Oil is one of Canada’s largest and oldest energy companies, operating across the full oil and gas value chain—from exploring and producing crude oil and natural gas to refining fuels and marketing products under well-known brands like Esso and Mobil. Headquartered in Calgary, the company plays a major role in Canada’s energy sector, including significant involvement in oil sands development, petrochemicals, and transportation fuels, and it is majority-owned by ExxonMobil.
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The shares of oil and gas stocks remain high as energy demand stays strong and prices remain high in the wake of the Mideast conflict. We continue to recommend that most investors maintain some exposure to the oil and gas industry as part of a balanced portfolio. Here are two buys.
IMPERIAL OIL LTD., $175.68, is a buy. The company (Toronto symbol IMO; Shares o/s: 483.6 million; Market cap: $85.0 billion; TSINetwork Rating: Average; Yield: 2.0%; imperialoil.ca) produced an average of 419,000 barrels of oil equivalent (99% oil, 1% natural gas) per day for the three months ended March 31, 2026. That’s up 0.2% from 418,000 a year earlier. Still, due to outages, its refineries processed 384,000 barrels a day—down 3.3%.
IMPERIAL OIL LTD., $175.68, is a buy. The company (Toronto symbol IMO; Shares o/s: 483.6 million; Market cap: $85.0 billion; TSINetwork Rating: Average; Yield: 2.0%; imperialoil.ca) produced an average of 419,000 barrels of oil equivalent (99% oil, 1% natural gas) per day for the three months ended March 31, 2026. That’s up 0.2% from 418,000 a year earlier. Still, due to outages, its refineries processed 384,000 barrels a day—down 3.3%.
IMPERIAL OIL LTD. $172 produced an average 419,000 barrels of oil equivalent (99% oil, 1% natural gas) per day for the three months ended March 31, 2026. That’s up 0.2% from 418,000 a year earlier.
Still, due to outages, the oil giant’s refineries processed 384,000 barrels a day—down 3.3%. As a result, Imperial’s revenue in the quarter fell 0.6%, to $12.45 billion from $12.52 billion. A higher tax bill also cut overall cash flow by 29.6%, to $1.24 billion from $1.76 billion. Cash flow per share declined 25.8%, to $2.56 from $3.45, on fewer shares outstanding.
Still, due to outages, the oil giant’s refineries processed 384,000 barrels a day—down 3.3%. As a result, Imperial’s revenue in the quarter fell 0.6%, to $12.45 billion from $12.52 billion. A higher tax bill also cut overall cash flow by 29.6%, to $1.24 billion from $1.76 billion. Cash flow per share declined 25.8%, to $2.56 from $3.45, on fewer shares outstanding.
IMPERIAL OIL LTD. $174 produced an average 419,000 barrels of oil equivalent (99% oil, 1% natural gas) per day for the three months ended March 31, 2026. That’s up 0.2% from 418,000 a year earlier. Still, due to outages, its refineries processed 384,000 barrels a day—down 3.3%.
As a result, Imperial’s revenue in the quarter fell 0.6%, to $12.45 billion from $12.52 billion. A higher tax bill also cut overall cash flow by 29.6%, to $1.24 billion from $1.76 billion. Cash flow per share declined 25.8%, to $2.56 from $3.45, on fewer shares outstanding.
As a result, Imperial’s revenue in the quarter fell 0.6%, to $12.45 billion from $12.52 billion. A higher tax bill also cut overall cash flow by 29.6%, to $1.24 billion from $1.76 billion. Cash flow per share declined 25.8%, to $2.56 from $3.45, on fewer shares outstanding.
Oil prices immediately fell with news of a cease fire in the U.S./Israel-Iran war. We expect prices will eventually stabilize on longer-term easing of tensions and the regular movement of oil tankers through the Strait of Hormuz.
While the earlier March spike in crude oil prices lifted the shares of the three oil producers we examine here, their ongoing efforts to cut drilling and other costs should keep profits rising even after crude prices stabilize.
We continue to recommend that most investors maintain some exposure to the oil industry. You can further cut your risk with these three producers, whose high-quality reserves should last decades.
While the earlier March spike in crude oil prices lifted the shares of the three oil producers we examine here, their ongoing efforts to cut drilling and other costs should keep profits rising even after crude prices stabilize.
We continue to recommend that most investors maintain some exposure to the oil industry. You can further cut your risk with these three producers, whose high-quality reserves should last decades.
ALGONQUIN POWER & UTILITIES, $9.52, is a buy. The utility (Toronto symbol AQN; Shares outstanding: 768.2 million; Market cap: $7.3 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.9%; www.algonquinpower.com) completed the sale of its 42.2% ownership stake in Atlantica Sustainable Infrastructure plc in December 2024 for $1.08 billion (all figures except share price and market cap in U.S. dollars). Algonquin also sold its non-regulated renewable energy business to LS Power in January 2025 for up to $2.5 billion. Today, Algonquin focuses entirely on its regulated utilities, which supply electricity, gas, water distribution and wastewater collection services to 32 million customers in Canada, the U.S., Chile and Bermuda.
PRIMARIS REIT, $17.19, is a buy. The trust (Toronto symbol PMZ.UN; Units o/s: 118.5 million; Market cap: $2.0 billion; TSINetwork Rating: Average; Yield: 5.0%; www.primarisreit.com) has gained full control of all 1.3 million square feet of its leasable area vacated by the former Hudson’s Bay Company. That’s in addition to 500,000 square feet once home to Sears locations.
Dividends can contribute up to a third of your long-term investment returns. Here are 5 Canadian dividend stocks we recommend holding.
Imperial Oil has gained 1,728.5% for our investors since we first recommended it and yet it’s trading at a bargain 8.6 times forecast cash flow right now.
These oil producers also operate refineries, which helps cuts their exposure to volatile oil prices. Investors also benefit from the long life of their high-quality properties, expected to maintain their output for decades to come.
We continue to recommend you maintain some exposure to oil stocks as part of the Resources portion of your stock holdings. High-quality integrated producer Imperial Oil continues to hit new all-time highs—and it’s now up 42% since we made it a #1 Buy for 2024....