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IMO Imperial Oil

Participants
Dave Hughes Manager, IR
Richard Kruger Chairman, President & CEO
Dennis Fong Canaccord Genuity Limited
Prashant Rao Citigroup
Jason Frew Crédit Suisse
Neil Mehta Goldman Sachs Group
Jon Morrison CIBC Capital Markets
Call transcript
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Operator

Good day, ladies and gentlemen, and welcome to Imperial's Q3 Earnings Call. [Operator Instructions]. I would like to introduce your host for today's conference, Mr. Dave Hughes, Manager, Investor Relations.

You may begin..

Dave Hughes

Okay. you. Thank and us everybody, quarter our for call. thanks morning, on joining third Good minutes, from be President a you'll In few hearing and Rich CEO. Chairman, Kruger, with and have of But right Administration; Vice Vice Theresa like to President Vice you the and and the I'd President, John Senior Commercial Senior tell President, Finance now, Development; Lyons, Dan room we Redburn, the Corporate Senior Upstream. in Rich Whelan, information. to like that comments note forward-looking I would also may today's contain of future depending forward-looking and is of information a guarantee results materially Any financial future differ factors operating on performance, and not actual number and could assumptions. a

our Forward-looking detail recent these and are factors in them. risk that you Form and available further quarter documents EDGAR and to refer on third encourage described as earnings I release in morning information www.imperialoil.ca, most and our to this and was XX-K, assumptions the issued SEDAR, are well as

Rich's did an session. submit be remarks, provided analysts in having opportunity So July will update we Q&A mid-year advance. in our back questions a we call, after we to as And in

the the probably of then to maybe So and those forth live start and then we'll a move with presubmitted the and back move session. Q&A Q&A through questions couple

it So over with will that, I turn Rich. to

Richard Kruger

and we've call. morning, our chosen so with on you're third that Good earnings quarter kind to update again midyear us to a do this

trust the highlights. seen headlines I you've - the Before and

$XX as quarter And quarter about the prices to year-on-year. the year. third difference, market which of look quarter. largely about of barrel, - if Before and third bitumen year overall we up prices, some third If was the results, offer are WTI a $X, I up follow environment. it similar course, about and but $X at a using is the WTI throughout again, similar from go and year-to-date is Edmonton in you comments at only second WCS, WCS The business about specific I'll up largely big few on is detail references, the to year course, quarter of look prices,

So extent full the we global certainly haven't crude benefited prices. for of

to later. and fourth different, some bit third chemicals with a be market Downstream a more shaping we Now remained have half. and on quarter, comments differentials strong in that experienced conditions quarter, the I'll like margins much throughout the first up bit

quarter, On up that XX%, with that essentially historic our day. more third refineries. in quarter year doubled $XXX of million are was bit nine income basis, third XX,XXX the year-to-date $X.XX. time relative In earnings, June million. a months, through driven the with volumes here last more a to level. upstream net bringing to $XXX $XXX a highest about at half four to $XX is through the $XXX quarter we've to million, well feedstocks is positive XX%, the of third we've barrels a level increase offer an a really first have or our quarterly essentially first Heavies shortly. crude at and per-share Cold of high Kearl quarter share in had having of the most negative $X.XX So Upstream driven notably and from said, Lake, been asset to the XX%. our a advantage year-to-date had earnings from split a 'XX million, below million million earnings growth, Results Downstream year-to-date $X.X The the this the price in by Historically, and years. refined and comments inputs the of earnings I'll increase by relative this significant $XXX to second quarter, than we Upstream, that's billion, quarterly - quarterly

including a above four the highest a for bit day a I'd price operating strong years, North the billion given XX,XXX was sales, other bringing continuing very quarterly us crudes. bit sales barrels that Cash quarter, of our over asphalt about fuel Other billion. higher or components with American As push, we and Downstream in as the fuels. And activities $X.X to generated continued earnings: found to we've aviation on from at comment the XX% market $X I advantages year-to-date heavy feedstock thought about a in and growth averaged briefly. branded

$X would year take and it's on - say run quarter $X that kind would the comparable. say the over just the fourth of a billion, billion. the a you at the math not prediction We'd you If for rate and of exercise just fourth be kind year quarter, and the but end

'XX You those to the year averaged averaged years. time and years, three And did over a where averaged the periods, year we we from back operating for look three that, those have over $X activities. 'XX WCS essentially cash XXXX, three WTI when years. $XX billion those over to $XX

WTI, price and efficiencies, cost a - generating tune of WCS, a more with $XX increases, the are of a a is environment, that the we that higher here barrel we're much lot in control reduction, what we volume of to things under So $XX direct organizational did more of. a cash of barrel by driven

for quarter. business nine $X is year operating exploration Downstream $XXX year-to-date. cash million in businesses, Chemicals and the more third roughly the the expenditures, are billion get look in our $X.X strong component down our quarter the it break Capital Those from approaching of each the than but $XXX or you million. and $X.X cash activities, billion and and generation also we've Downstream about throughout certainly, businesses. at the months. the cash generation, that The first Upstream, each at parts the had If is billion Chemicals us in of Upstream

the higher made - first earlier, the be second during mid-year As expected run half the the our of to update, year signal we than rate half. we've

year-to-date, $XXX million. So we're about at

look at to range. of said, the that revised and the - throughout near we're in share expectations. spend, year, that projects, $X.X year-to-date the at Dividends really estimates, the renewed would and guidance will and vast included In our this Upstream, that The that be the We achieved Continuing than million allocation about purchases and many so, year. surplus under And estimates, balance at largely parts as $X.X and of well of and also levels. totaled being original we and we or cost that our maintain of for and and to two capacity between purchases in in what a between roughly $X.X you in versus buybacks be year-to-date The it. through as sheet in $X.X capital $XXX million about of market the as the nature cogeneration year there's dividends growth but we quarter, see, kind notably, growing share anticipating us Our it strategy, installing year can those made consider billion we our the when $XXX our less between billion million end original of earlier at the and and on. dividend, about investments combination as primary billion. areas midyear contracts Aspen, just as a billion $X.X rates earlier we attractive to $XXX for and bringing now majority, was reliable the we'd been had invest earlier sustaining somewhere precisely to we historic in largely component available a reason, are return and Of announced assumptions which low strong relative thought we Strathcona. cash year in $X.X savings XX% billion shareholders Downstream. And the is spending capital $X supplemental have current the have Aspen, projects in what anticipate select the and to and the billion been as some guidance we doing. reiterate achieved have previously is we've sustaining crusher improvements billion is in and most

strong: end balance third billion of debt, $X.X hand remains billion the a on $X.X quarter. to while at XX% Our debt cash the smidgen under sheet capital,

- $X.XX per then a XX% share the in And year $X.XX. ago a share declared Year-to-date, dividend $XXX in a adding about for shy the year ago. full dividends, were Our of was share $X.XX we've purchases, is increase. year-on-year $X.X to in for bit a distributions, share billion It just million XXXX billion. billion. Distributions year-to-date $X.XX $X.XX declared a $X XQ year versus over up that

up Production. XX,XXX significantly XX% above we're quarter, So oil-equivalent per XXX,XXX day in last or barrels quarter-on-quarter. oil-equivalent well the year's barrels totals.

event. Syncrude, Of - then Kearl, and a a maintenance: many course, turnaround; and a second a components we quarter Lake, of turnaround turnaround; major both a had significant major at Cold the had

to we've from the those of So we've here. deliver that rebounded quarter outlined each

that and would similar the here maintenance planned of work terms in shortly. a on major - low bit In and that my each Kearl, on expect to We relatively in was quarter, comment of we quarter, subsequent at asset little quarter third I'll Third hit activities. the had comments. I'll performance fourth

how a major where I at precisely to the fourth start quarter At turnaround the of expected That's to the XXX,XXX in averaged barrels of second commented me continue day Cold Let the quarter. out update, half with third throughout the we plant, in Lake, the happened what coming had. midyear we turnaround Maskwa increase the we year.

year-end. so, we at averaged barrel barrels approaching our a will about barrels was about year basis, in We a continue the the slightly year expect day up It day quarter. or day at full quarter to Cold outlook. a by on on levels XXX,XXX fourth well put remains that in record This would Lake record it our that below production that, the day where quarter. a previous doing average, Gross XXX,XXX throughout territory. annual And math XXX,XXX the Kearl end a a production XXX,XXX barrels somewhere the

barrels best was Our XXX,XXX a day. quarter

day one started in were So XX,XXX some that about production more plants that. two of in we on Comment by have did quarter. activity That barrels late activity up the in briefly. turnaround mid-October. a at above well the gross planned wrapped impacted September We

a midyear, were first averaging the the months barrels for we - day. six With at XXX,XXX

three ore the average few processing, quarter more I'll really through a reliability. performance, up average Why it's growth our XXX,XXX and a to consistent this result Kearl and performance big in improvement? made preparation, improvements the The day able improve year-to-date how give in saw With mining average the quarter is been will we of the - that the organization. barrels and equipment are continued operational component through day-to-day we've And day nine operating to a material basis with over optimize competing a we experience of overall that X our folks so. third past on had barrels kudos a about we years shut we've of months performance that the expect week the quarter X or bit or the the the on I period XXX,XXX enhancements down a year. commented We would we plants commitment of the the annual more brought going forward. to downtime. for of

The to It October. quarter quarter vibration and have screen inspections, expect or because was the kinds between XX of impact repairs, a turnaround days Kearl. the first with week in of the hydro X/X, activities: replacements, completed we quarter, - completed. shutdown in maintenance more or then the just we third rotations, quarter bit the In that third of we The at and split have do maintenance full of typical eight strong X/X work so line on crusher partial things things of were of performance valve kind two the the weeks continued the the fourth as this inspections quarter month of normal the roughly days next fourth and were planned. annual transport will

it. completed have We

a best XXX,XXX have and it. I'm day. proud was say a day rebounded to ever Kearl yesterday at barrels out We our came at And from that some

averaged of us be a throughout we to because higher XXX,XXX planned the around now, rest The barrels the at the of the rates maintenance expect any with XXX,XXX. And for October. day month, month For we behind at maintenance the year. of essentially year-to-date stays at material work, really

we flow the as course, previously of on in a will start-up. project is where were And day budget range the day at company a a barrel gross quarter. We XXX,XXX The starting share on expected our crusher schedule, year-end do increase XXXX production day supplemental XXXX. what in a Syncrude. average a this interconnections our barrel ahead, XXX,XXX to XX,XXX average Looking barrels for the the annual today are work in range communicated, we've from

line. June the was that restored course, are Of power disruption previously. sitewide the Production talked back quarter. this on impacted we've by XX, now was about All the cokers throughout progressively

precisely last organization that's quarter, expected days recovery back adding fourth on averaged of enhancement reliability, in overall we're day a asked Synergies as kind with the of would each the month to of that I coming value on within Syncrude On had about of as XX that about that by we focused on with of another first from most all a online orX its how reducing of day. what XX,XXX on more orientation. we achieving we've X mid-September, on year-to-date, notably and at barrels and are up. were what here, at commented us the I restoration. in was and of essentially Getting quarters. We sustained October, brings cost the power production Xst I've the the other we the to operations, looking barrels what of higher the terms be share, for topics the So the and going quarter XX,XXX that's The happen kind base mid-July, - expect happened to how in laser quarter each a Suncor's wrapped - how mines. focusing the synergies, outage, talked first something more on owners' we've - by to cokers operating the August or a were owners like day

quarter-on-quarter, XX%. quarter, Syncrude that getting the averaged a looking pipelines the from Similar earnings, like were of up are then slightly up Much commercial in Upstream, Upstream, advantage and quarter similar, Strathcona differentials how XXXX. happen. to bidirectional closer between the throughput maintenance of at earlier, crude we year a ago course, Refinery we day at operationally these utilization have the XX,XXX this Shifting to course agreements make base it. expect XX%, the We're Downstream. a two XXX,XXX, and we're plant. we're volumes required barrels maintenance in along significantly followed to refining utilization of quarter, at rebounded to the work with major year XXX,XXX strong no Specifically, although from day capacity where ago. major our by throughput on Suncor's increasing fourth slightly A at the a from taken barrels with commented I planned. completed heavy second up over finalize Year-to-date,

with ahead. processed side, also light produces we're crude crude. the day. barrels in In round XXX,XXX positioned capture roughly over numbers, a on we the Now Upstream months operation the well XX,XXX light barrels to of differentials, time widening, essentially additional value Syncrude day a And

on have XXX,XXX which and with capture So crudes - we barrels a XXX,XXX barrel the a XX to exceeded lever barrels light quarter, differentials. Petrol the nearly at highest quarter in was They product XXX,XXX years. day price-advantaged day, previous quarter, a highest current and sales, day. light a last

increasing this strategic we're 'XX sales product that and Canada's last aviation markets Vancouver. the year. transportation in Chemicals. us notably then at nine at where fuels commercial up put hubs, $XX strong success remains channels, customers' sales particular and Esso retail business and strategy increasing this superior long-term in was agreements needs. grow expanding quarter, in previously into offerings include asphalt a Mobil would continue Our network, meet major to Areas million nationwide-branded were ever month with from $XXX profitably, Best most of supply to and markets, high. then high-value our the Earnings XXXX. into branded million, focus product partners Year-to-date,

for year the We full our year. to expect full best earnings approach ever

maintenance do However, that in the units the have fourth for quarter, scheduled are we some throughout quarter. planned

earnings. and September, shipping production XXX October, to was to result some a it With will lengthy, was an line back at to was X year XXX-plus to all work to year. operation it associated this Norman and precaution completed, field. flow regulatory total while injection take the on but the XX%-or-so resumed Wells at taken kilometer now production was good that The lines, after essentially be was and Pleased for we're quite of that to a or chemical, to wells and our sales that nearly we're organization operation ramp pipeline we day, export lead a very in roughly two or plus to doing this and in back of be We're in a currently is where but barrels up. a and challenge, ensure expect shutdown river day XX% way full in before X,XXX replace a crossing. at striving barrels a minus job. quarter. a the we were The sometime reach integrity about Polyethylene process shutdown kilometers XX,XXX a the report first the completed, best-ever total it'll volumes of So around achieve one continues the as

interested be Lake were Alberta may expansion that Energy regulatory in-situ the received Cold Aspen projects from the and recently You for project approvals Regulator.

our permit was received December received the the yesterday. on and notification were Aspen, application in government of approval approval XXXX. of initial And on in we XX course, Aspen afternoon, October now supplemental notifications then

are We approvals. reviewing these

are at plans what I more the reviewed, speak I we been judge As any say as we we the associated once this. we it. to - previously and ensure investment said, have are will here, our conditions on understand and approvals have And with looking

that numerous have I you approvals say we to don't in we're on, imagine we find a work conditions that and to acceptable. that come as say rubber We'll this understand and be is just today's review that going think There on with to big sure we can that through once more always stamp things the understand do approved. are completed. world,

my across getting up commented your reducing future we've of the I the use to pleased site I and of that of of need and we're the think you And intensity on any nearly Dave some grow, highlights, at our PC kind you count where offer that I'll announcement for sites on of other and help available in you our the to comments just in continues that. carbon wrap are think both now that customers. sites operations. existing on Mobil country, terms and to we'd made Optimum And with Esso help I can nationwide, X,XXX a and to has recent that

before we expected third you midyear. across operational all So we what saying lines major strong up performance most business assets. and really quarter it just open was major up it by to I'd talked wrap is characterized we to all This when questions, at by

operational quarter. strong performance the fourth similarly expect We throughout

to and price Investor interesting to crude quarter X, - level we joke price a next in continue you we the very little portfolio, call integration months. we to make environment. Our I'd compete volatility and few week, with November like hope believe Toronto like from given going comprehensive our on of that midyear are our our to But of on many of but the see in you - things next I'll bit undoubtedly over differential I to forward. will and well Day hold and a it expect this quarterly just will with end a positioned also balance, Imperial And note the each a started can discussion, there. I'd update, every

with that, So I'll the to describe Q&A turn it to back Dave process.

Dave Hughes

Okay. Thank you.

As for analysts opportunity an did I some presubmit questions. we provide mentioned, to

questions So some there as as well folks we've live. got some

couple that to going start I'm questions So with of presubmitted. were a

Dave Hughes

comes mechanisms. Or the is Hulshof Should production of of So from variety that the through shutting first a same Menno we heavy of expect TD. already Many your underway? peers Imperial? from are in one

Richard Kruger

to quarter the in third No were the shut current environment. volumes Okay. economic due in,

value. do do Going may what forward, based comment do than on to we not what we we always say that may not is on or other

conditions on cost market would precisely - market I've seen in or in Our like this, is anything are others read be what high we're risk. Certainly, saying. the end at the view is marginal and what market seeing the working.

balanced we with whatever in result to and over we are live deal made situations are those and consequences individual our is choices exist integrated at happy investments company, and an a time. we're companies that time. the And any And are decisions market your with investments. is view view quite and of live and in with Our strategies the that and your conditions of prepared have point you

Dave Hughes

Okay.

then RBC. this your that's expansion? bitumen plan Second of estimated operating through silver have at question Lake In been production comes our limited spending the Pardy Cold capital light bullet what's rates? part, Greg you egress line revised what is Second And year, sustaining your for the Aspen capital? liberated and

Richard Kruger

$X the been The it's sustaining Yes. over that billion Downstream, talked Greg, per couple billion in or below $X.X that, vary. years so largely that. year. numbers, that. will Recognizing be has on of year last rail we've our corporate would Upstream, the on about below capital, that of full It or X, been to last order

that number I of Kearl a think made we're seeing. enhancements we've at

of reinstated So suspended Cold program we Lake a same not spent talked drilling we year. there. the level have it sustaining had We've and this capital how at now

to progress. about real all been and in few ore teeth the years. the and We've in at dump $X chains. crusher strengthened lines. modified been been the but modifications These So detailed a largely the outlook look the installed on this kind of I about of we the on have over I that probably the We've year, how terms, Upstream a billion Kearl capital, lessen and to time on the drive think use and changes of If look at of order kind five things our think kind we working it on if Upstream. outcome how will on over cells, the next sustaining piping we've barrel change in for crusher or be enhanced per hoppers we've the I think billion $X the We'll kind then and to would average to I bit On at that has that week about But so, to bearings. forward. closer - made of I year accurate $X I more is year, on average Kearl, barrel. We've work lower, sustaining hydrotransport how Day. before this note doesn't flotation think, have durability, going $X.X next Investor a loads, prep the last talk at really years you're this a be numbers

it. This quarter had little very downtime in

XXX,XXX. Our year-to-date said It's average where right would we about is at be.

and XXX,XXX, So we're that above quarters above barrel we XXX,XXX. day XXX,XXX we that we'll expect or that average where range, flow up bit next, we'll that to step was one? the think crusher year be this beyond. and but supplemental a below in interconnect, the And jump we'll into range there the real a will and part XXX,XXX when have that third the or And a

Dave Hughes

for plan expansion? egress Cold Lake Aspen Yes, and

Richard Kruger

I've this dilbit barrels the assumptions are at about market day Yes. bitumen. assumption well now. a - that of There I of expansion first a well. seen midyear, XXX,XXX Lake. our should on topic we as no barrel right We Aspen own a roughly lot I or ourselves of step whole the on just assumptions positioned. is XXX,XXX Cold bit refinery I broadly, the heavies me, roughly of that say on would I've consider we There's there. the be timing a back. be to The the and question run talked or - access commented would at produce just the day fairly maybe excuse - hottest

XXX,XXX So - of kind About barrels but dilbit. molecules not through of XX% that exact a it our refineries, the own day may of be would about that a run a day XXX,XXX dilbit. be barrels

to continuing several that ago. gives capacity contracted Gulf ramp a our we've markets. up. have tight a made another XXX,XXX That barrels years was rail Coast has day decision about been the And to We terminal then

Coast than an out, policy. kind Edmonton. It's better that we've is much describe at one I'm and it higher of Gulf realization to insurance as pipe but head me obviously pipe very us markets to taken at allowing also get heard a You've cost of a than glad

these and the three highest projects growth, time, years, on or things that are the there's times whether pipeline execution rail they're areas, production continued at highest-value online. to that's market, continued continue So pipe for - to terminals. that in expect new equally highest to getting crude. ensure crudes to of capacity bitumen most expansion other the we'll to time that our the continue and/or resolutions at markets the refineries, With do work over we be we whether own get all anticipate issues, to take to of whether as supplemental or the control coming that's commitments, four we it's can look our - directly getting whether our for Aspen But or like realizations running future look to steps to we the

Dave Hughes

And we'll now over a live of Okay. it operator to turn the questions. to couple take

Operator

your with [Operator from Instructions]. comes And first Dennis question Genuity. Fong Canaccord here

Dennis Fong

quickly Just here. Kearl on

the you've issue kind recent sent ? Is time the to really kind run debottlenecking to this seen kind kind expectations for after [indiscernible] and, the and initially upside in ability that you've getting the frankly, asset asset's performance back seen And more last November given thus showcase barrel this any into Just there of fixes. of run of this prior of further is QX you've QX. far in to the you XXX,XXX a and day expectations your of

Richard Kruger

to the calculated and got had XXX,XXX, When downtime, feed current hasn't crusher between can tangibly because if it we and been And would we how we've it. the performance we had upsize pipelines, if pleased we that XX,XXX we at working conveyor months Yes. to where barrels less had determined reliability the we and few at get you with had about potential its amount a the we level. hard when supplemental until it the he crusher on if And experiencing look additional and Obviously, the we on said, tune we XXX,XXX the the very looked last had and we're their belt that difference that's to feed lines. and of downtime, interconnected really have of downtime a downtime. day conveyor was talk gross had Kearl, been whether and at been

incremental tangible. say, quite we're And it's step-up it's So I in. very, an confident very would

Now don't more is, go don't fixing less busy achieve I we're it's above can have I confidence downtime, have spend when numbers unscheduled is beyond, things. And optimizations XXX,XXX, improve fighting organization, dealing XXX,XXX. the or lot currently They'll and what know that, that with find in whether to you further what the we can that not they you're fires and our a of time at things. but on time where

And again, numbers. don't so I have really

that unit certainly quarter saw it and before, to in saw that's down drove barrel the we XXX,XXX. will see do next it, of during mistake we Investor kind what the quarterly the looking an both, confidence the see haven't we more quarter no the Day. lead this or We ahead we throughputs And our also this generation, better driving average committed cash and us seen numbers reliability, the reliability the you beyond down a And in beyond to is the - you will added barrel. Aspen to about maximize week reliability, that much about mining, area talk XXX,XXX we make it the gives And and want what cheaper the performance, the higher at cost in third where throughput your the increasing unit but the we what because know if not do - both incremental generation cash by far capacity. cost that than

we expect we can us saw. the The a what future, and in good like we glimpse third gave what quarter of

Dennis Fong

here rail capacity. Perfect. secondarily Okay. on And just then

exercising You're indicating transportation crude you essentially I an a for rail. insurance or guess, is by barrels plus that at now day and right of that you're, XXX,XXX of policy this that minus you're right about

one on call plus capacity current crude barrels do forth mentioned, apportionment pipelines aggregate Canada? the day kind I of especially of potentially we're it, your or facility, volumes capacity out of that rail by minus. XXX,XXX we'll - Western major given, trending, Where and of you as see so Your the seeing a has

Richard Kruger

Gulf now us for getting Upstream every to and now, or it's that's a heavy the markets, the highest-value question. then it's to interest a stuffed Good refineries barrel of right after barrel and the in left maximize every that, there. each basis, Well, a But our on pocket in into and general right right of Coast. realization bit U.S. pocket, Yes. it's

rail. So pipe and

ramp up. the Our pipe where is Rail got contract continue We've we is it have. have largely in commitments the to the we one to ability place.

than months period, the the a averaged you XX,XXX barrels day. that of XXX,XXX where or and roughly, the little around so. commented months of that six last in It's we a last about now now for the We've six We're more bit over averaged are so. For or October. month about about we've in kind XXX,XXX

we as averaged have that XXX,XXX XXX,XXX this will we quarter. to in ended about expect this We quarter

We have two rail service providers.

We have power at access to and car people really a fleet. got unmatched in level We've the up for the rail to agreements the place. ramp an

We have customer facilities. offloading

further fourth as up. ramp XXXX, see So get And into we're work continue the to it you going to up will that to in ramp we quarter. then

of on commented a because I'd day that the use every to You XXX,XXX capacity. capacity like allows to to markets. highest-valued the bit barrel us get that

to you speak. that's what we going ramp-up, see think expect and I continued over time exactly can So as on is

Operator

Prashant question with comes next Rao our from here Citigroup. And

Prashant Rao

- of power. would sort put is up have, over the year I - rail reason the of Or just to dynamic do how for on wanted to contract is the I'm to in to seeking a maybe providers maybe in on wanted that's context you need Imperial. if barrels? contracted probably you that and move just for question rail barrel the we're hearing follow question. XXX,XXX it of capacity that the And order you locomotive per with to differentiating environment past incremental determined so, I The a price I contracts the kind to sort point wanted day already about the - confirm asking

wanted some to just get So around that. thoughts

Richard Kruger

capacity, a the - the and a would that's at that roughly and load that. XXX,XXX is about X.X that and railcars, get ability It' barrel And in tracks about talk we them X the move do When that terminal day be XXX,XXX, Yes. arms loading to move trains out. them to it day to the specifically. to

So we're talking the itself. about terminal

Now what you've and beyond pointed is that. out above

to service it's the that service do both to all You the work. the important talked provide I what to provider continuing barrel terminal fully service two you in have fourth power agreements to level and I That's need roughly trains destination. we XXX,XXX more and expand that are utilized quarter. have the people to about, that's place, We unit today that you that cars, to and commented in have offloading and have that we rail at have to we one to get a service XXX,XXX barrels need this - And operation not is work not the to have we facilities to overall. in XX. full day pull a with anticipate providers always providers think,

Prashant Rao

environment Okay. full terms the net Downstream. question, of to robust pack. Fairly follow-up a in another ask on That's very helpful. results wanted I great a and

spend further week the be. production, get strong as the border in had oil integrated the wanted want fun questions don't the some looked inflecting with macros, well, Downstream, Upstream to U.S. Day high-level maybe are Canadian increased contenders. in at we're thoughts Canadian at getting just I incremental run south look who obviously players maybe balance finally, the and CapEx Downstream here you some consolidation a and of could the next on in on And to where price your Investor thoughts. have sheet As We've

terms So fit in and of that see capital uses capital allocation. just to would of where wanted in,

Richard Kruger

Broadly ties the reliability. stepping a that I see capacity. the to over X been in but not quarter that, been investing, in markets we've I allow have facilities product you into or it, actions sales we've a will or we've it's will with Areas That back in And years our time. but back, our where we market last been and you X strategy before and it's got a improvement only to Strathcona good good too, at Downstream. that markets. the taken only compare Sale the mentioned improve X cogen. conditions attractive market a not And full to reliability X over us of run you it's you've look think if on run years also

see also hockey I - ways Day. the sales. of what winter. the been the think around would essentially will pucks the more a I We We at best attractive asphalt We've manufacture - and asphalt of this found we've detail over year markets and and store increasing asphalt giant Investor to we course bit visualization is

scheme this commented - spring going more I scheme to it expect enhance but access the a into high-quality So allow think you week. at it. the Dan now and of looking we're is of continues the performance can you it capacity Lyons aviation, - in next markets. are in relatively it more investments bit to both that us the going facility also do, in the certainly, talk melt about and of to sell Those to are we're kinds investments how small those Upstream, And our pave to and can enhancing our on in selling Downstream, fuels to I be Vancouver. looking logistics kit, things the and aviation

we'll but So themselves enlarge that customers customers we the manufacture products of and not the offer only - continue reached value. we and highest facilities can looking we radius how be to at particularly us what the with

So in attractiveness it brands competing the we is offer than the overall Imperial our would to can lovely investments ago that, and value own looking we five an today the that offering markets been are our of and provide. area due at customers years we're superior say, we keen would to more and I product perhaps through the performance have

Prashant Rao

very Imperial wanted and or know smaller just it's as We've you one - that And perhaps federal cash that. flow any in might back, quick about on if of but then see had thinking cap maybe I the the long seen have But cash be the the should and news of be in taken one. April. I next being framework to around could you call, business. that you provide as commentary, any about if we thoughts we Ontario how just just just trade a have I last to place a piece wanted out

Richard Kruger

we basically $XX million, noncash associated you to income change the that are remaining we and were when had impairment charge of Ontario's government announced of credits these an trade think saw cap the I and Well, with regulation.

exhausted So of on credits the that it. that kind our we purchased books has on had

our policy, operate operate may carbon look wherever And we standpoint. and pricing that charge we'll province We the that's way. in. jurisdictions where there's have commented to it look costs in - we existing the of And it you we doesn't estimate whatever so project and any in operations. an we or we both at jurisdiction it a but on use are, in policies capital reporting at from we planning we'll on that's backstop, And federal have what a a regulated what like course, we'll do, If basis. use

looking way environmental can world operating improving, of to while we're in the the we highest-performing is globally. energy the that's not but our mocked operations goal active think I enhancing this thought on here ensure And assets. look know we're give country I'd of we is question, the And everything very So I've how whether again, have kind operations at SA-SAGD the do economic now. it's but do whether impact. to our energy in our a bit topic context broader your investments we little existing investments only new a Lake in to And carbon the failures, use, like or is that what you initial both I advantaged I like efficiency to continuing world. at our Cold minimizing lower and reduce that's carbon intensity, impact looking that have evolve

Operator

Crédit Frew our next with And Suisse. from comes question Jason

Jason Frew

wondered, Just any you're if business, Chemicals margin seeing not North in there around comment the you'd why on changes America. given in degradation cost feedstock

Richard Kruger

Thanks, Jason. Yes.

As has in strong that's the been with you and X our some ever has a not five And quite Chemical the been think last we've or volume. our any, growth. It's X years relatively of years over out, it business, or for volume so, now same and on the it had if pointed time. been I Chemicals they're best

ago, over our that improve nature there. the of that cost to Marcellus of our is we years and structure period done bought in improve Some the we've offcast. time of continued advantage helped couple feedstocks, that things we've A refinery ethane

been You cost in think some have a this the I the of its moneymaker, bit, increase you've mean, that's rotation polyethylene. on commented I seen seen, I ethane margins business and injection molding. our the strong. you've Northeast in it, have suggested but

to The because We be in enter a are of we versus to represent either scale market. that that have necessarily facilities as date, have through have a perhaps producing of a anticipated. that that strong geographic high over and upon earlier specialty that not majority as might our And us a facilities but markets. different there, and can It's the within gives have business the feedstock, in our Gulf closely built-in of tanks we Gulf And they the we'll does things. watch Coast day's scale, of it through kind through advantage maybe scale customers the we of Coast. as have facilities specification are drive cost high our So seen market. may advantage that product us, in or threat soon encroach a use, much not that kind

and why that's sale performance key the with Chemical - years. our few over - seen are what And in product we Sarnia a the strong and continue for can this elevator with business. of its those speech operating absolutely So the its a those keep that's our continue we you've intent to yes, our highest is continue refinery, to And advantage everything doing last that's that quality keep I can to kind as it site to cost is integrated we and the - do are do performance. as everything is think - to feedstocks service, reliability, which constructive, contract ensure the very that's happy after customers product cost

Dave Hughes

Okay.

of to Let's back presubmitted questions. more couple a the of go

the And Jon and from improvement at maintenance I'll the initiatives combine basis expectations undertaken any into reliability initiatives, of utilization How be We And level? to questions was to we that from expectations could that the comfortable there still you in Kearl? dialing have with a as two turnarounds? are up Kearl how back on related choppy leave need time calibrating outside are quarter of on major should Output Morrison normal operational about both XX-plus-percent CIBC. the them. run strong. extensive They're quarter-to-quarter Kearl, think for so forward street

Richard Kruger

how haven't This and was steps that." your as I'm XXX,XXX. reminded did questions We And XXX,XXX we confidence. confidence achieve have the to fingers-crossed listening quarter. achieve here you the we were a, it, doing. just "we wasn't it to quickly sitting of were things we folks because It taking going long had wasn't faith achieved certainly ago, to Jon, appreciate by I I'm that knew questions. never change were actions And a - you're or because big

looking of I think at plants we're we once a Kearl forward the the year. material is thing a will at each turnaround generally two have

So another. typically late quarter the third, early be in in either for in of the fourth the second quarter one for and

while to the the sun quarters in that impact make fourth you you And So that shines. achieve quarter. saw quarter, and the occur, And those quarters, in will what in to you we think, I whatever hay the that got third of the see in continue I then see expect will it to nonturnaround so your the means turnarounds. annual those average is,

last for the better I that beast. it's also tell I'm the Now early to the of in rates will and own I when Head enhancements that us our not the because him then earlier time. do perhaps here encouraged., commitments really the it's the higher those been at turnaround few we but Kearl I'm the of make got of occur reliability won't to you Kearl It's quantitative be that. are too think you're quite turnaround over than the really on because calibration more we early years, John Whelan, what My speak. choppy on me. increased, me of on But cycles. over as have can the we articulated schedules room going we in to is the achieve for as nature of we say to have be XXX,XXX, Upstream, choppy too with the with as but expectations still looking I

Dave Hughes

to of on line? what pricing? else? something updated And time Hulshof TD. Okay. FID thoughts Is you and With egress see hand, what the development improved FID, assuming approval And on a there question in from do an need with visibility Or it Menno based are is you comfortable regulatory then the to - get Aspen on

Richard Kruger

had in getting meeting, would that. a on got Imperial to - Yes. I right the everything committing are and the each line Halloween board scouring understand be we we it literally Yesterday, we and night. magnifying we Menno, glass to sure now with as time approvals mentioned, an folks I've regulatory be

for we've what through there's We're come through all and waiting to It's, "here's with luck, in So Aspen. approve, we They we're fun. long do don't going come that the good unique time nothing a say, to with, going by". have this. abide I approvals been we if that. time expect you that, as But just

good wasting to yet, of seen what we're looking in it. and it the time but So haven't look technology digging at the because effects. I outcome want heard any step economic if it, on in it and not presume at. the advantaged back more we've that and it talked that get ahead But that broadly, on Aspen a days in about both don't is something brings is that I'll we environmental I

is the in-situ XX certainly, development So with lowest experience years the Aspen at not Right of how Cold low. contractors operation. in-situ for carbon Canada. of and talked wheelhouse We've now and about a drilling in in carbon Lake the recent intensity, if low is industry Western our in demand the intensity, in right

opportunities, and we And execution. has commented and piece So we countercyclical before think together, look to it competitive efficiency the resiliency. an price be for lower and for investments I've makes sense in $XX Aspen, those from globally we us of hard to have barrel meet interpret to in price return we a construct of that WTI worked criteria. development all on double-digit and Aspen as the technology a planning a low world, the $XX,

the hard that complete we'll approval. days like term. feathers we're about want to something right I don't we and Aspen - in haven't the Now I and on of the as up regulatory we'll say I that have approval, near that the you at look seen looking regulatory it I ends the to continue jump we anticipate, assure now, at which, gun And really we'll until said, in can guts because if do it think, I to work the But ahead.

Okay.

another question. operator for the to back So live

Operator

Instructions]. [Operator

from Sachs. Mehta here question comes with next Neil Our Goldman

Neil Mehta

for Rich, and for business I'm question little in on your hopped - on for the your XXXX such Syncrude if but stays First suite. a sorry late, light factor differentials. is here out curve differentiating mix Edmonton This I important model thoughts and the me is an

sustainability So should can you flow from think the dynamic. much - you of what differentials, can again, the those we remind how uplift and that how cash and if about us, process light

Richard Kruger

way - Sure. the Well, I same guess experienced we've I on heavy differentials, been differentials would the recent we've say wider in years.

supply market that and demand. round seeing we're is In work view, This We've out way Now may the light. on markets expect. - is what and what simply is pipeline we're for seeing got it's working. of limited not access. our you the it's This

help to an increase rail get own in there's integrated Now that. a in bit. to actions press. transportation because We're oil lot come our and - I'll there's at and our - increasing looking I'll - lights, we're We're obviously, I to and of they taking give a system, working you overall together kind heavy the processing back know heavies pressed

Specifically, XXX,XXX about day Syncrude processing we is oil it XX,XXX when roughly. light have about produces day. today And of running, throughput a barrels up a and barrels

of lever barrels So day. a XXX,XXX have we light a

of oil it So Well, - other take hit producer, a for it whereas the with heavier us. heavies light - we're light kind way works primarily oil on oil heavy a the differentials, a we differentials. refiner,

light ensuring So to what everything the our it are doing to gets our offer refineries capabilities and market back maximum, to at oil extended capture differentials. has the with running

create strategies choices long-term and we the it both decades. the Upstream long own it the that I I I talked fundamental It we've in improve business we've discounts in these we the via swings with both markets And have up facilities. capture markets seeing, offered And do. U.S. the we've a most what get and running that's the and of same folks market times made our And Now things the it. balanced times and at good, read our and to have. are of made in in to to or what, this whether lights. And is the of our realizations the business to was on And prices, business going that's most on shortage suck environment it. we with compete are value, would any looks is enjoy I predict. in will occurs, It When issue things to we're value difficult everything until it product in does study. the how heavies likely you works, part whatever model. are didn't strategy we're know capacity. got prepared last? maximizing you that add we that about that's Well, overnight. is while and material and on But addressed just and is to model inevitable are is, very to a can value we say And that they're that maintenance our I'd study markets. say decisions bigger way, But same export we and do what see feedstocks integrated assets and when production the we the compete over bad,

Neil Mehta

in was about Imperial follow-up on market, there's M&A Aspen, a have you I context playing an Canada. good couple just to we in seem which the in And when do your this, in breakeven. future I I consolidation Calgary, the of talked see ago then of up obviously But of potentially project the put And terms weeks does what the - space? transaction a up just have pretty great. in is question thoughts That's role ongoing but them Rich,

you're looking just be better opportunities external but piece that said off frame pursuing to argument ones, out could the at try that us. for organic So versus

Richard Kruger

few question. think will comments I the answered on a it. you But I offer largely

internal, available For in - us Toronto, think we their cost we next optionality. talked efficiency, on, at we'll going will we that gives Theresa and add internal what a a We flexibility, opportunities, in look largely we all from their we internal market we we think to talk high-quality us existing at performance about - about we'll to which that at suite effectiveness, shareholders. bias fortunate inventory timing, are aspect. I on We'll what's and the our and look value. standpoint, Redburn's strength, is value have it. have all the are more investment do to those. of commented - of it, you But then financial value. look I've the lot can detail about most that. do on don't opportunities I opportunities, flexibility goes assets like, of capital their an significant have And give But a week us The it's will that terms before will scope, And the pace, of necessarily in with environmental bias. But optionality our

value. market we have. inside we it offer doesn't always us I think think we that have more at we'll in look offered that same that I've us that anything the everything So you seen in market time said new the what Toronto. - the can I've - all on just I the haven't or more what's next think think don't the would And I the us value when offer opportunities in if week as But topic, in house comment happening said anything And said. really we on do either you I've market, and I've thing, infer you in

Neil Mehta

did which in Then sneak stock back helpful. to do sounds the ahead repurchase come about you track same program? one sanction it that XXXX how I like last in the that's pace do Imperial we continue it is here, That's buy to go Can one execute think Aspen, the if and at? share on could that at and If just future.

Richard Kruger

XXX-plus strategy, to go us, capital a question We At top high-quality things about our sheet, the million it's now. growing. is strong about list. growth important and current row dividend Investing what XX Those growing are a projects. It paid the fundamentally it reliable in for is has years and $XXX for it a to years. allocation I'll paying dividend. in balance our year. the back some obviously Year-on-year, of is maintaining two Well, that. on been no a It's growing rate,

where significant, on periods abnormal back major, Kearl the with think available, The history sheet, the period dividend. via few the our us can was if investments put return we balance period been can the I years projects, in invest shareholders cash continue have when Aspen major today, And maintain and we that with were a in I see our We in strong that going selectively buybacks. to can normal history and to high-quality surplus simultaneously. that more category. grow like Nabiye a reliable in

those areas able it's of detail bit to I have. to more a I about this traditional in But perhaps a may kind week. than going get will at As And balance ball magnitudes as a little not achieve talking way, of next detail prices because crystal at next years, in the into like be where and the it, we I versus we're ever in the over continued several the we're look vary look that going be we that. other. it's We'll to one a bit think but things

CapEx, sustaining cash the over from growth As points. see compare funds, what years. price we'll five to operations what we look dividend, we flow is various We'll our we that see last CapEx at of detail uses at

be material it can days, plans that. the program with buyback kind all we not business our including I and investment more over the for not of you off some snapshot we of before, sustainability would would we share we'll few a last year comprehensive give thought or So as a said coming restarted saw if reinstituted hold discussion have level what years. you had there of I've for

mutually are those So don't I exclusive. think

Operator

CIBC question Morrison Jon Markets. comes Capital our with next from And

Jon Morrison

integration? price Imperial's contemplated well get and market the years? about of integrated given Canada talked next of current that Is list? share platform your in you the own higher barrels the more can of feedstock operational priority for to you're And the recognize physical production around into running there But initiatives anything few your do nature being think current versus the you is refineries in dislocations over Upstream tied that that access own hedged how are of physically about. more We you've

Richard Kruger

And any ask, are and just barrels? you you explicitly say I could focused on Jon, or heavy that when if all

Jon Morrison

refineries any about would of own thinking own remove volatility But clear Yes. and you just longer-term comment there to you pricing? of structurally appreciated. give the kind barrels do would would be It your and was some more to heavy in on be noise anything would your

Richard Kruger

- and Yes. we explicitly heavy not produce that's XXX,XXX step we a heavy for - And barrels a very commented not what own roughly to molecules, I'll Cold necessarily back, a of facility smidgen on crude. Now getting asphalt-conducive example, they're under day how the we're is I've year-to-date, our processed Lake,

happen So Upstream, the sell at our be and like heavy one and that. Nanticoke, things Cold light, so we read cost tend the to refine you buy look a the bidder. provides machines the a opportunity feedstock our it live get be for market Strathcona don't or on look to as or advantageous, to in molecules, most long heavy asphalt And molecules that the it the to same, Lake that's our they great. in to cheapest highest But But they feedstock. get whether we to then, look to produce get refineries we and own as if generally or necessarily feedstocks, need

has our round what year producing we how more discounts testing capabilities handle commented to we've our that topic. see been so have can we've them. testing on doing we of we've blending produce asphalt light. how that choosing facilities facilities more looking to successfully feedstocks the now Downstream testing really We've at those units. choosing, with and crudes not to kind of the heavy - are new - but and been that asphalt experimented can I ramping But been been And been up heavy different capture asphalt we've Light's We've a at ensure on been the heavies.

led because today. something and really market. about closer can been there testing we've been the processing been to value we day been of barrels XX,XXX this incentive that's we've market, paradigms So existing capture in that of the talked every dollar And to to is reported to far heavy historic that's a - that ensure XXX,XXX operational the in

we fullest or pipe utilize a the but the to they heavies. that bit it's less So of have really facilities getting connections on access facilities, have to extent with

that. from with our continue XXX,XXX. to money that We that progress all most don't nearly I ahead. differentials the a we'll same it's we going of refineries can. I opportunity light growth about making whatever with say do made have expanding, know of can now that XX,XXX lot it level they But Now to feedstock can

aftermarket optimizing heavies in they heavy be in So until with now feedstocks lot more at the sales value. highest been downstream to of for have value every push we or a us. with storyline that can with each women each the to And and we sales, of not period the our looking that may to facilities day and get be a optimum market more market, in what get may initial from may trying smart are more here adds up men a has the And standpoint.

light. having something of this personally, let's Now a for this for feels organization's like years, although - some again, period done days having done this here, pretty not optimize is our the it we're at. good in between it, But heavy well, XXX and the

Jon Morrison

about the say access, is that near it it getting fair heavy because anywhere threshold where you're market of to And you to price have that you put a doesn't realizations your think for production would have realized that is access think might right pricing the about having be lower? producers much be like going shutting in they given now just to not some and to

Richard Kruger

plus sell prices what that market for what rail you Gulf the when the the at pipe Coast getting is time. of in we look barrels average the look not - that spot for of at we Coast head , is heavy what's on price reported less U.S. you It's we prices prices get - of publicly pipe, a think pipeline contract weighted adjustment cost. I It's quality for things, quality you in that the ours tariffs. crudes from to get or Well, see at and the then rail in price net that head and Gulf adjust a point bitumen in report and the

in think always quarter. the to comment not look forward, we in continue value. in sold environment. current of economic then don't don't did at I whether have strategies and - not we any that may So yes, incremental know And decisions what that markets we what's there. efficiencies time, may strong commented But so as are we in is we I quarter the the strong or third part don't whether do we kind time most volumes to, the to we're plan have cost, the at strong. fourth due have those going has, anytime market develop I whole and head it's any pipe - this shut-in our at objective a is everybody operations plans point course we're what their if And environment had uniquely are their our faced change. in that's to life. make cost again commitments the make necessarily of we money good that a doing. whatever produce that that lower then disposition, realizations But make. our but a reliability facilities our we over - so but been means build by and we and performance to that sell want operations, ones business I assets. of to recognizing else our We whole improve these money in And spend And one But I of intent company's Edmonton with. over I understand interesting of those to we maximize to business we basis. markets lot to in continue position can barrels interesting the the are we've is our are mechanisms, improve environments the

Dave Hughes

that time. So of our brings us the to end

Rich, any turn to you So for summary I'd comments. it

Richard Kruger

wrap with that's said maintenance a where wrap positioned were and your interest, at I interest. financially analysis, it. up the Well, strong just we and I'd up a we your behind of thank for We major I'll feel with had second We I you quarter. started kind what value for in saw of half. us. operationally you lot your just midyear third

of I crude think more quality level ahead. in across fourth balance that things with assets, of that I and areas portfolio, months our our quarter. some make more with interesting on of positions our with the are over the differentials this to commented compete the well and believe specifically. us of to of question, No - level integration I going expect you the environment. same can the the the in price quite

conscious forward have areas - forward to on X, going to talked and look that to about time, and series a ability in something that and something isn't decisions Our kind just through looking and occurred of of out of It's week you. longer as over in time we happened. compete next that as time with look November spending many the well some today others, investments

I'll wrap for you thank there, So today. it time up your but

Dave Hughes

Thank Okay. you, everybody.

to hesitate any reach out have further you us if directly. always, As don't questions, to

Operator

the thank participation program. your today's Ladies for in and This concludes you gentlemen, conference.

You a have day. great may now disconnect. Everyone,