Cash flow spurs Imperial’s growth

Article Excerpt

Imperial Oil’s large oil and gas reserves will let it grow for decades. To tap into those reserves, Imperial will spend $3.5 billion to $4 billion a year over the next 10 years (for a total of $35 billion to $40 billion). Its cash flow is forecast to be over $3.8 billion this year, so it can meet its spending targets without taking on debt or issuing shares. IMPERIAL OIL $45.38 (Toronto symbol IMO; Shares outstanding: 854.2 million; Market cap: $38.7 billion; TSINetwork Rating: Average; Dividend yield: 1.0%; www.imperialoil.ca) is a major integrated-oil company that gets most of its production from its oil-sands projects in Alberta. Imperial also has conventional oil and natural-gas operations in western Canada, and holds interests in offshore projects in Atlantic Canada. The company’s other operations include four refineries and roughly 1,900 Esso gas stations In the three months ended March 31, 2011, Imperial’s cash flow rose 33.1%, to $873 million, or $1.03 a share. A year earlier,…