Topic: How To Invest

The Successful Investor Hotline – Friday, March 22, 2024

Article Excerpt

IMPERIAL OIL LTD., $92.16, Toronto symbol IMO, is still a buy. The 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. The company has shut down its Winnipeg Products Pipeline, which transports gasoline, diesel and jet fuel from the U.S. border to customers in the greater Winnipeg region. Imperial decided to close the line after an inspection revealed that a portion could leak. It expects it will take three months to replace that segment. Meantime, the company will use railcars and trucks to deliver those fuels. It’s unlikely that the shutdown will meaningfully impact Imperial’s earnings. In fact, thanks to 15% increase in crude oil prices since the start of 2024, the stock hit a new all-time high of $92.62 on…