Topic: How To Invest

The Successful Investor Hotline – Friday, September 4, 2020

Article Excerpt

IMPERIAL OIL LTD., $20.91, Toronto symbol IMO, remains a buy for the Resources portion of your portfolio. Investors gain exposure to oil and gas through Canada’s third-largest publicly traded oil company (market cap: $15.4 billion), after Suncor (No. 1) and Canadian Natural Resources. U.S.-based ExxonMobil (New York symbol XOM) owns 69.6% of the company. Due to a leak in the Polaris Pipeline, Imperial has shut down production at its Kearl oil sands property in northern Alberta. In the second quarter of 2020, Kearl accounted for 42% of the company’s total production. Polaris, owned and operated by Inter Pipeline Ltd. (Toronto symbol IPL), supplies diluent to Kearl. Imperial adds it to tar-like bitumen so it can be shipped to refineries. Inter Pipeline has yet to say how long it will take to repair the Polaris Pipeline. Imperial’s shares fell 2% on news of the Kearl shutdown. However, higher crude prices as a result of the outage should help offset some of the lost production. Imperial Oil…

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