Topic: How To Invest

The Successful Investor Hotline – Friday, December 23, 2022

Article Excerpt

IMPERIAL OIL LTD., $65.26, Toronto symbol IMO, is a buy. This company gets about 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 plans to spend $1.7 billion on capital upgrades and exploration in 2023. That’s $300 million, or 21.4%, higher than its planned 2022 spending of $1.4 billion. Part of that extra spending is related to its planned “renewable” diesel fuel complex at its Strathcona refinery near Edmonton. Renewable diesel is a biofuel produced from wood, crops and vegetable oils. Imperial also continues to expand and upgrade its Cold Lake and Kearl oil sands projects. The company expects to produce an average of 410,000 and 430,000 barrels a day in 2023. To put that in context, it produced 430,000 barrels a day…