Imperial Oil (IMO) Increases 2022 CapEx & Production View
Imperial Oil Limited IMO updated its corporate guiding prediction for 2022. The company's business strategy is still centered on improving the productivity of existing assets, enhancing shareholder returns, and advancing major environmental projects.
Capital Spending View
The Calgary-based energy player's capital expenditure for 2022 is estimated to be C$1.4 billion, 27.3% higher than the 2021 projection of C$1.1 billion.
It anticipates disbursing 2022 capex for ramping up the in-pit tailing project at the Kearl oil sands plant. Further, planning to spend on the completion and commissioning of the Sarnia product pipeline in southern Ontario along with ongoing investment in Kearl's autonomous fleet and the application of solvent technologies at Cold Lake.
Segmental View for 2022
Upstream: Imperial Oil expects average upstream production of 425,000-440,000 barrels of oil equivalent per day (Boe/d) for 2022, approximately 4% higher than the 2021 guidance. This is supported by good operating performance in its key oil sands assets and the ongoing production expansion at Kearl.
Kearl is on pace to meet its initial 2025 production target of 280,000 total gross barrels per day on capital-efficient debottlenecking, digital efforts, and process improvements.
Downstream: The Canadian energy firm's downstream throughput volumes are expected to be between 395,000 barrels per day (b/d) and 405,000 b/d for the next year, up 7% from the 2021 view of 375,000 b/d.
IMO is well-positioned as demand continues to revive through 2022, thanks to further enhancements to its portfolio of brands and product offerings, as well as access to cost-advantaged crude and logistical networks.
Imperial Oil's objectives reflect the company's sustained commitment to maximize the value of its existing assets via capital discipline and productivity as well as ensuring sustainable operations through structural cost savings and the advancement of important sustainability projects.
As it implements high-value, low-cost debottlenecking and other targeted development projects, IMO aims to establish the framework for ongoing volume expansion in its core oil sands business in 2023 and beyond.
Zacks Rank & Other Key Picks
Imperial Oil currently has a Zack Rank #2 (Buy). Investors interested in the energy sector might look at the following stocks with a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Occidental Petroleum Corporation OXY is an integrated oil and gas company with significant exploration and production exposure. OXY is also a producer of various basic chemicals, petrochemicals, polymers and specialty chemicals. As of 2020 end, OXY's preliminary worldwide proved reserves totaled 2.91 billion BOE compared with 3.9 billion BOE at the end of 2019.
In the past year, shares of Occidental Petroleum have surged 99% compared with the industry's growth of 96.6%. OXY's 2021 earnings are expected to soar 151.4% from the year-ago reported figure. OXY has also witnessed eight northward estimate revisions in the past 60 days. In the third quarter, OXY achieved its divestiture target of $10 billion by inking a deal to sell off its interest in two offshore Ghana assets for $750 million.
PDC Energy PDCE is an independent upstream operator dealing in the exploration, development and production of natural gas, crude oil and natural gas liquids. PDCE, which reached its present status following the January 2020 merger with SRC Energy, is currently the second-largest producer in the Denver-Julesburg Basin. As of 2020 end, PDCE's total estimated proved reserves were 731,073 thousand Boe.
In the past year, shares of PDC Energy have gained 169% compared with the industry's growth of 108.6%. PDCE's earnings for 2021 are expected to surge 273.4% from the prior-year reported figure. In the past 60 days, the Zacks Consensus Estimate for PDC Energy's 2021 earnings has been raised by 26.8%. Earnings of PDCE beat the Zacks Consensus Estimate in all the last four quarters, the average being 51.06%.
Whiting Petroleum WLL is a leading upstream energy company and is the top producer of crude oil in North Dakota. With oil prices improving at a healthy pace, Whiting Petroleum expects to continue generating handsome cashflows, while maintaining a healthy balance sheet.
Headquartered in Denver, CO, Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days. Looking at the price chart, WLL has gained 152% year to date, outpacing the 98.2% rise of the composite stocks belonging to the industry.
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