Topic: How To Invest

The Successful Investor Hotline – Friday, December 20, 2024

Article Excerpt

IMPERIAL OIL LTD., $88.61, Toronto symbol IMO, is a buy. This company gets over 90% of its production from oil sands operations in Alberta. Imperial also has conventional oil and natural gas operations in the West and holds stakes in offshore projects in Atlantic Canada. Its other operations include three refineries (one in Alberta, two in Ontario) and a petrochemical plant in Sarnia, Ontario. Imperial now plans to spend between $1.9 billion and $2.1 billion on capital upgrades and exploration in 2025. That’s up from its likely 2024 spending of $1.8 billion to $1.9 billion. To put those figures in context, Imperial’s cash flow was $1.80 billion, or $3.39 a share, in the three months ended September 30, 2024. In addition to upgrading its Kearl and Cold Lake oil sands projects in Alberta, the company expects to open a “renewable” diesel fuel complex at its Strathcona refinery near Edmonton. Renewable diesel is a biofuel produced from wood, crops and vegetable oils. Imperial now expects its average…