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IMO Imperial Oil

Participants
Dave Hughes VP-IR
Brad Corson Chairman, President and CEO
Dan Lyons SVP-Finance and Administration
Asit Sen Bank of America
Greg Pardy RBC Capital Markets
Dennis Fong CIBC World Markets
Carly Davenport Goldman Sachs
Menno Hulshof TD Securities
Call transcript
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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Imperial's Fourth Quarter 2020 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Mr. Dave Hughes, VP of Investor Relations. Sir, please go ahead.

Dave Hughes

Thank you, good morning everybody and thanks for joining us on our fourth quarter earnings call. by this senior morning. off on we start call the will introducing management the have I Simon President We've CEO; Vice Vice Vice Administration; President Dan Brad President Lyons, Senior got Corson, and and Senior President, Chairman, of the of Finance Sherri Jon Commercial the Upstream; of President Downstream, and Younger, Wetmore, Vice Evers, and Development. Corporate

of contain is I'm the future operating cautionary factors comments a guarantee may with not actual going information statements. number forward-looking start forward-looking performance, to know Any financial you results As materially information. and can of future a depending assumptions. Today's and and differ on

this factors Form on detail information fourth website. release SEDAR, those quarter and the risk described issued as our are press all available in as most our and morning Forward-looking XX-K documents well recent our EDGAR further in are earnings on and we and assumptions that

please ask refer you those. we So, to would to

start morning, that, to going take follow are through will done And Dan the then Brad. us to And We opening then format. through will Q&A. take update. we financial once our This remarks an will move us And results. are from we with we'll Brad usual operational some

with So turn to over Brad. I'll that, it

Brad Corson

of company unprecedented. with industry, society, good we healthy of we challenging expected back very you Thank an was and and stay a you, would earnings the I'm manage belated start it right. Year. anyone each at a hope as to as our everybody, not all New to Welcome I continuing as year XXXX Happy your All to Dave. through morning the Well, times. challenges I as a what and certainly a are XXXX were year. fourth The call. quite continue were quarter say. these was Well, families faced at sure

and as no earnings the us presented experienced unfortunately with a behind challenges, an sure now. sad result to loss I us So some one year The extreme we am is for see XXXX year.

loss the of our unconventional was a a part Although driven the we took on write-down of by assets. large portion

am deliver within However, just with to our pertains financial things I results want that good about considering environment minutes. how for quarter. We'll in that proud I improvement able the more express economic And the well second were commented Imperial seen control, a few and those relatively to on we results quarter economic the particularly were versus as as were with how responded last we the talk had operations. our our it to in how I environment.

I think Canada the COVID-XX. it's to quarter say, fair as in that started of though, pace a second fourth wave slowed with to deal of the improvement

take And as the of before challenges. challenges employers Canada's to just named like And of always, address out number continue, opportunity Imperial with was opportunities a to of how there during is highlight am important to XXXX. continues the each these priority, the continue our commitment We the and our and global deliver operate. the safety health them so I were to even communities communities support. had our organization spending top of also their I deliver expense, to a watching the in and some which other to health would But like our our health we for proud crisis, for workforce we reductions. throughout strong partner always material responsibility. top care of more fact both to we and and respond and However, employees to in our in our most our results operations year, I'd one XXX that with mention capital workforce, strong ensuring help

this an as areas as employer community company's we for involvement top well training top that go the recognition forward. few, marks to We especially of after development, maintain as a and name will the as skills proud such received recognition also which year. I'm also challenging people also as we to award And Alberta continue as employer. young recognizes just this a and

now fourth results. included charge of Earnings the related the to quarter $X.X for global to is So we were Ongoing billion. This normal product of in billion, This portion crude demand lower third the recovery than let's decision continued a $X.X of the somewhat that loss our did talk our about to in impairment tamper the see a impact fourth. And portfolio. of we and on quarter consistent current unconventional oil develop operations. no pace impairment Not our quarter has this prices. spending a estimates high but this impairment to oil non-cash projects demand in resources asset impact most assets, the return still attractive focusing included which liquids of portion with portfolio not of our Therefore, are and of existing our our and value impact previously unconventional our unconventional only capital develop. the in portfolio portions rich the the we production does have plan company's communicated. high and sands strategy not on

underpinned over impairment, this our in a working our were These million. of saw $XXX production headwind by just million cash also the Excluding third $XXX positive quarter a quarter And flow fourth quarter. from capital inclusive improved earnings record results Upstream. we positive over of of

fact, And which be record all-time highest Kearl it production turn to shortly. Kearl. driven In continues an talk quarterly further story. the in great at years, about in a I'll XX by was

the delivered positive Downstream Our in continued to also Chemical and and businesses well, perform quarter. both earnings

billion. manufacturing on $X.X to delivering $X our you deliver or did of billion target will $XXX well excess March, to close and of of Our a XXXX. set expenses we versus XXXX levels, the commitments. able CapEx initial initial cost in nearly And $X.X that reductions were through million were billion, XX% recall down of Production we to in commitment versus reduction guidance year. versus billion waiver And $X not those reduction targets to our

end $XXX the ended the quarter, the guidance third we note million capital year our guidance and year I with we in of reducing supported around $XXX line even progress recent We of and the spending for what more lower plan initially million. which of As this would is to than of most communicated updated spend us half around XXXX.

Our focus more XXXX to deliver lower spending. for efficient is I’m costs continuing and

$X.XX quarter, our Our and strong ability morning which the a supported dividend share, and I've generation that unchanged versus important environment. declare a before, we think it's we but to per this for commitment last cash this our operational I know manage once announced as performance through which quarter cash market our I shareholders. continue reflects again said at highlight to is challenging again to returning even the to to

and commitments with such dividend a maintaining flexibility allowed reduction on meet to our integration, us Our as financial operational resilience, and opportunities, laser to our once without again shareholders, cost results strength, our along focus debt. deliver our increasing strong

So for to to quarter at pause Dan financial detail. the in go over our this more I'm point, going performance it through and turn to

Dan Lyons

Thanks Brad.

oversupply year, million with a in full reductions the For crude global we demand. $X,XXX product COVID-related recorded of loss reflecting coupled oil of the

also $X,XXX million. reflect Brad our of a impairment non-cash As XXXX one-time noted, earnings

losses. costs, earnings are of million, While mitigate noting full $XX even worth actions and businesses chemical this serve million year generated that It challenging respectively. downstream environment, and these positive to is operation reduce results $XXX these in significantly substantially also disappointing, and our our to adjust

of Looking the in of we at of XXXX recorded $XXX impairment fourth net our non-cash $X,XXX a XXXX. results the loss quarter compared million fourth million and to including quarter net million, of $X,XXX income

million the sequentially, down loss of $X net Looking fourth is in of quarter quarter. $X,XXX the the in million third net earnings from

the driven mentioned by excluding upstream. results charge, one-time third higher the However, primarily in versus production I the impairment just improved quarter

loss $X,XXX the of improved upstream XXXX, million by results third million again, in by recorded to a non-cash production impairment the Looking at business we the net compared Kearl. quarter of loss charge, quarter most at driven in excluding of net performance higher line, a notably saw $XX fourth

was quarter in to Turning by million the mainly And the fourth million $XX of million, earning chemicals of the around our $XX $XX profits, XXXX margins. driven of generate million net compared fourth income million third $XX quarter higher in continue $XXX in to the downstream, to up third the business downstream to quarter quarter. income net finally compared in

was generation return coupled repurchases cash cash cash XXXX from year Looking our full our This unfavorable position, generated to maintaining while starting dividend through our including maintain and share activities million shareholders billion. working million. strong flow, $XXX operating with debt $X.X cash CapEx, at of $XXX million to $XX our impacts at finance us capital allowed

Looking of $XXX to $XXX activities operating third operating quarter from fourth generated of in the million at quarter, generated million XXXX. activities from compared the cash cash was

capital fourth around effects operating from generated cash impacted quarter third million. the by working activities quarter the was versus unfavorable $XXX in However, of

reflecting fourth cash capital with hand. just million. working quarter working of working Versus capital generated from improved Despite Excluding $XXX the $XXX $XXX flow XXXX, with sequentially. cash cash ended the million million capital negative on of unfavorable operations effects we impacts impacts, down quarter of over

line the other totaled amounts with XXXX in capital number revised million, the fourth expenditure and $XXX $XXX about pipeline $XXX CapEx, year million. areas. crushers, Aspen a to of Reduce completion Full lower quarter lower compared quarter. the CapEx, project, the of in guidance Moving to million smaller capital is $XX from associated of totaled the expenditures spending last a with third suspension on up Kearl down from million $XXX year unconventional of spending across million,

we expenditures XXXX, expected approximately are to in Investor be capital at As discussed billion. November Day $X.X

increases per company. XXth quarter, $X.XX the In dividends, per $XXX consecutive million $X.XX $X.XX the XXXX, paid to to share we compared marking the of pay share, at share at the payment dividends in annual Turning in by fourth quarter year XXXX. fourth million $XXX a of dividends of we dividend during

committed forward, cash remain to to dividends. we shareholders via Going returning

share we Brad per noted, on $X.XX today a dividend April quarter As earlier payable of announced XXXX first X.

turn Brad to our discuss Now back I'll performance. operational it to

Brad Corson

Thanks Dan.

day start quarterly of as very at versus XX,XXX performance at per of also was about and on was production. oil with represents XX quarter equivalent for the which fourth but and not equivalent results Kearl. in activities Syncrude. Cold fourth both in by Kearl, driven at third oil in quarter, day increase I'll production we planned move versus turnaround barrels saw lack record But Kearl production excellent These by This XXXX. day, the was per let's most only driven the the up material the the by now XXXX. And both production XX,XXX XXX,XXX also performance production This a barrels a years. operational performance those the increase quarter quarter the at of importantly, Lake quarter were averaged the also executed quarter strong of Upstream and third Syncrude. strong barrels highest reflect performance talk in So and fourth

reminder, our unconstrained the fourth optimize a at quarter. the the current extending or the work the quarter took in we opportunity by plans As to in and to environment enabling in advancing turnaround run Kearl us

we the which produced time Kearl, at day now barrels talk than each day higher asset. about production let's like Kearl. different. barrels and has XX,XXX day just quarter, XXX,XXX the year a on move for talk a specifically, that about able each assets XX,XXX quarter been quarter, all to is barrels better third In starting the quarter basis on XXXX. gross than XXXX the quarterly quarter for we've is So This the was and and Kearl. of seems Kearl fourth is delivered no record It great new an per fourth records per a with

as advance We started exceeded also we the as at day. record you barrels year supplemental see know, both on month part to also trains October performance per saw us in which year. turnarounds to from fourth And market crushers positioned the expectations. deliver the this superior XXX,XXX and We Kearl, have in can in the new with our of the And quarter to the plan the at highest regular well extend we environment, delivered. opted performance year response left which latter on you

our ahead production to original The but to guidance from guidance of barrels risks. we attributed barrels XXX,XXX slightly of difference manage day day, maintenance be our XXX,XXX short Day barrels year COVID modify day to per ago. per decision plans can and of per revised staffing admittedly made our year our Our extend of XXX,XXX turnarounds reduced a Investor the with was of full

would In on addition, XX,XXX resulted day in the party to In factors, meet line a in the we these our exceed per absence impact. barrel third Polaris the outage of expected unplanned two record have its or of now with guidance. has highest production in the the early into production performance original at Production January history. remained Kearl strong the asset XXXX. part another And set has fact, just

absence come per commodity expect encouraged production and the And have prices, very the momentum above supportive built. on the are by curtailment, barrels and with we We we're mandated in path production January we to of XXX,XXX day.

our have by continued to this costs, haul respect lower were per the with leveraging operating on we autonomous to barrel to items. we Unit production Now US$XX around November. Simon manufacturing expenses technology, in sitting of mark Investor mentioned all improvements key to as at few level, trucks, implementation track structural just at continue ongoing a and Day, mention focus

$XX this our For at Based increased barrel were see production production reduction and very manufacturing this the expenses with XXXX. Kearl per for deliver XX% year XXXX. on over to full-year, lower Kearl's our in on unit expenses cost production, XX% and we performance, confident Combining this ability manufacturing XXXX. almost from that are were down guidance we than Kearl's

Lake. barrels of to term, volumes per and versus was the expect day So for barrels which XXXX. quarter, Cold down Cold per per will talk quarter remain is barrels XXXX XXXX now about average bass let's Lake the at day performance the we the on barrels for XXX,XXX Cold fourth Near Lake expand third per our in day and to guidance up focused at Production near continue XXXX. - XXX,XXX day term, quarter versus

focus driving best and the Our enhancements monthly since in downtime on unscheduled performance base December optimizing resulted reliability the XXXX. in operation

opportunities in to per around steam continues XXXX. value, initiatives. provided the efforts rollout work drive optimization, other schedule well day optimization and to including addition, on XXXX In of digital operation The work uplift barrels

this XXXX, day saw let's to of was absence of versus per turnaround is Syncrude's year. day XX,XXX activity of quarter per per of up production Syncrude. production up XX,XXX quarter day XX,XXX the activity Now we also barrels versus level also absence fourth move fourth turnaround the average third to of barrels the XXXX. the quarter the of third the in highest share of quarter fourth our quarter executed the due the in the barrels quarter XXXX This to in due

recall major also the product that to XXXX. in quarters its third on say second and the performed December. site in turnaround construction completed to in will You the pipelines of bi-directional the of pleased and the I'm transfer work the that fourth majority quarter, was started work venture

already is seeing So the asset benefits.

utilization. supporting improved know, Syncrude, As will operational this for project you provide flexibility increased and reliability

approval Suncor As working in you're an to over with owners aligned The in aware, reached the agreement at is very fully the take operatorship happen and And ventures will the to Syncrude. principle are operations for Syncrude owners has communicated processes, is currently $XXX that that change million through Suncor are year their further internal deliver to we estimate. we expected enhance confident and later around Imperial material per of synergies. it and this with year. efficiencies are aligned ability synergies

a to refined the Utilization versus increased due fourth We XX% Downstream. to product product. with XX,XXX of up fourth of the The at the and which absence sequential diluent barrels improvement quarter, to quarter was quarter was replacing XX,XXX was offset average XXXX versus due in barrels versus quarter, quarter slightly of day refined to was demands largely Strathcona own XXXX a weaker the in move up The improvement also this Nanticoke the by let's in was and over an third day turnaround due third XXXX. continued activity, purchase day some in pandemic. XXXX. although and manufacturing our the a quarter, XX% XX% the XXX,XXX the of Now barrels the

in and pandemic. to reducing plan amidst impacts turnarounds last schedules work turnaround the discussed of and very adjustments the cost conditions of we quarter, by margin were XXXX the we scopes created made our the market successful As

or these In find $XXX And addition, our full-year XXXX. and XX% million, cost assets around down production further the market to are result, refineries reductions and for midstream manufacturing by and versus able were enabled as conditions. year efficiencies a same expenses

pandemic are quarter uncertainty be ongoing somewhat forecast per refinery recovery quarter. the fuel fourth in third quarter XX,XXX Ontario demands. lower the seeing impact the were that Demands now community due makes the term. particularly than the to Canada, of and was XXX,XXX challenged day. This product utilization the to improvement, difficult Quebec. sales And significant XXXX, per day impacts barrels tampered per it in third than in near fourth of quarter barrels lockdowns we Petroleum barrels XX,XXX certain fourth largely of the to showed parts by day lower and quarter, of in continued pandemic. demand While continued on the new XXXX

to end first the for for approaching of are the closely volatility continuing levels. across of were time to demand we diesel, much In reductions for quarter country, we on in mentioned more however, diesel at I for to we also I normal in XX% levels. saw XX% seeing range now gasoline, that call XX% normal diesel both were gasoline the XX% range see we jet and to XX% a April, to motor XX% demand XX% that approaching for the XX% more the total XX% quarter, in of reminder third to jet. demands the and and to with and As at mentioned to were motor XX% historic gasoline, industry historic closer the industry seeing for January,

Imperial established provincial as leader these Downstream annual as degree as can forward equity the expanded crude our volatile Vancouver, offer Vancouver. be we successfully lockdowns, of We refinery. continues Kearl Looking well of sales, the marine Despite the new to port set challenging travel federal our amount process and asphalt business in [Syncrude] as at in well fuels and the of market conditions, there as various our to uncertainty for a and restrictions. high records

an we our showed set the supply produced our in shutdown Strathcona, we players chain Cold diluent business the strength of today built which alternate for at amount pipeline. records just then when days integrated as unique following is the new Lake to the a integration continues few And December for strength we Kearl in of shipped diluent of site. Our

we records this conditions. improvements So see despite challenging performance continue to and new market

the industry pricing, resilient Downstream we Those remained unprofitable. in Investor many include speaks branded resellers quarter, competitors favorably routes that and more recent crude parody built all assets in to Canadian wholesalers, the significantly advantages cost terminals our We and unique which from while similar our structural business the continue compete our and Canadian to were to import Downstream at to than proprietary U.S. profitable the Our and lines our market profitable U.S. and discussed well margins logistics, believe for in positioned rack business is of This Day. XXXX. fourth are low in business

Moving third a slight chemical down saw earnings in in quarter volumes in driven quarter. chemicals, the fourth the facility at quarter. million and expenses maintenance higher decrease million, our to drop activity chemical $X Sarnia business This our versus with at associated lower by was $XX the planned

However, $XX earnings quarter the XXXX. higher fourth than were million of

volumes, saw favorable we of efforts. reduction sales cost ongoing and impacts improved As

the through Given integration structural advantages the of business location enjoys facility. and the our

what some wrap continues noteworthy the current in profitable as chemical this to for pretty like I'd highlighting see I to positive quarter delivering earnings XXXX. Our up each year. in accomplishments be Imperial by business market,

spending challenging the of and out financial we We capital took commitment strength back to now, business the in year to by exceeded that the and very cost pandemic results onset managed March. billion. structure made a significantly environment. And in with First at decisive demand preserve foremost, reduce $X and action we we've full our

year-over-year is midpoint our guidance. are the addition, a million in costs In production down versus over manufacturing of our almost and alone $XXX original capital on our billion basis. down And fact, $X

outstanding. XXXX, to billion combined. Kearl’s of and this for manufacturing was So represents close short versus a and of $X in both XXXX production costs, reduction performance expenditures capital nothing

supplemental other highlight trucks, throughout year, for enhancement many including haul initiatives, supported and autonomous a as New crushing capacity the operations was example. did

to per Although take our we as chose day, the XXX,XXX prudent challenges address actions year presented. the barrels year the for Kearl revised to down during original production was guidance we this

guidance strong over and annual in of a revised We this per barrels day even after third-party the to year per the having XXX,XXX versus in are diluent operating barrels day ended down met producing XXX,XXX has the for by materially expenses XXXX deliver with fourth guidance volume XXXX. XXX,XXX total outage our Kearl. barrel third performance positioned Our down to pipeline on a shut quarter. for XX% well around and excellent been Equally production quarter, for day cost

lower while believe prices reduce and positioning so at we XXXX, Canadian-based downside, to in benefit the of helping our us including resilience the increase. chemicals very our levels, enhancing time became costs apparent these sustaining far the further same And our significantly oil us I strength breakeven are XXXX. well to downstream, when cost

out profitable was our profitable was of four. Chemical four three quarters downstream in last all and Our segment year,

in. margins. Integration and strong segments. spoke length and supports we downstream our Day, think at results of advantages Dan tangible that the within the we million noted, the result markets also logistics reflects crude challenging chemicals despite provide and evidence downstream in Investor about chemicals downstream at $XX the compete nature relation and environment, earned we structural million financial supply, I have $XXX but As profitable relatively the in assets business product the underscore our This XXXX. in advantages in these We our to

XXXX to to a XXXX Our priority activities the highly from a during resilience despite of on about We integrated business cash uncertain high maintain our supporting generate operating it provided $XXX million. throughout and environment. place model ability chose dividend

we're Day, and is think in continue number activities return shareholders positioned managing breakeven, was a We speaks plan and of management a growth, of and outlined financial share to the in position, has plans presented of cash XXXX, and to adjusted portfolio over as strategy, our were The to turnaround and our which to workforce. through degree least in fewer dividend have task for onsite at to health costs. improvement. buybacks to And we safety pandemic time, which Investor the reduced time. corporate which the decision we major the I our with challenges has And well lower existing assets, such that to at the organization, able of and personnel, with turnarounds of own order high more COVID-XX confidence protocols. the we same those accommodate further Board our the of workers complete not easy no our

turnarounds the with adjusted align of environment. better timing the demand to we Finally,

So that meant forward pulling activities.

So took did we'd to adjusted rates turnarounds at to be half. both proud operating plans. we second with higher of we started as recover, executed organization when in in respect the the which those it demand decisions the I'm for and the way on

So positioned the that impressive add marks really adds presented value some deliver XXXth on anniversary very And year challenges. are to achievements Imperial well all through that continue XXXX when being Imperial you to as of many to it you aware, of unprecedented a up, XXXX. Oil. And pretty up also

XXX Imperial hard years, no meeting challenges. reputation different. XXXX built And Over was Canada's some a the has energy toughest past for proud work, and of innovation

Dave to over you. the Q&A it turn Thank session. I'll that, for with So

Dave Hughes

had few time. Thanks Brad. We a ahead submitted questions of

a of addressing by then and over line. out start we'll the couple those Q&A to So we'll move

like Brad, below sustaining was what going look requirements based the on was $XXX operations, for Capital expectations from current do just capital specifically state end the comes question Capital Lacey ATB quarter So William forward? upstream your capital the estimate Markets. from unusually of million you low first of low

Brad Corson

we capital in conditions control to market In response costs for first as XXXX an the which I plan Thanks for was to year, and were direct the experiencing. question, to mentioned, your expense quarter we William. of aggressive committed the

gave really So our XXXX XXXX. what that the in XX% than to line brought of you fourth in capital we our million, total was was updated saw program, a less continuation year which for the and in $XXX expenditure with of quarter guidance late which

we've as $X.X ahead, guidance invest capital see total those year, capital to that a progress company. to our we've future looking guided for previously, at And Day. are billion. next the increase to a in the key expect we in of the years do key of indicated coming as our We so projects And Investor sustaining moderate

about And going few equate sustaining next capital continue so, average low from needs, which benefit the barrel, we're $X.X $X to to years. over to our per is about billion which

we down Day increase also XX% expect an out a to at look versus plan for year five-year XXXX we period. for Day. as showed as about Investor noteworthy, over of we capital the we what at ago bit same But So, at be you had Investor expenditures, five-year laid our

think, we've CapEx very taken external with with return. that think the balanced Included manage to requirements are also consistent conditions, yield the what I critical future. our market high again are prudent growth steps some capital but So in we sustaining opportunities selective for plans

expenses to And competitiveness and we're and all continue both selectivity, to gaining with of manage so ensure William. going again further high together, Thanks degree going capital of our scrutiny, production expenses manufacturing a that forward. efficiencies our

Dave Hughes

you to expect garner with And the to Okay. What your in had a do do by respect to to announcement specifically with one their COX this with five years? Mobil? pertains see you as from night some assets initiatives. William follow-up. three The synergies it Exxon your happening last Exxon And Mobil relationship was an investments interesting next

Brad Corson

night. Exxon is really this a last by exciting think announcement I Mobil

understand to progressing of reduce details our work both I of increasing Exxon and importance technology. I this but carbon the at to it working of area does demonstrate intensity forward. think carbon and think as still increasing And the opportunities growth is we focus all obviously an Imperial that, Mobil, for we're ourselves low going

we sequestration, all we industry, a our from especially Accord. the look their as this component one have Exxon just of think goals a to the advances path as able carbon advantages to and processes, view I've experience, benefits we shareholder as the of In garner majority their terms is our to of more able from and that their certainly be and of example zero that society, I would occasions, partnership we which of technology. learn this talked systems, with are to of capture achieve Paris distinct where synergies, their I their Mobil for will to our multiple on define one the And in ability that, many as access area net is critical and

announcement. key So excited Exxon further them forward I identify engaging put organization and Mobil's they very pursuit. in to look as I'm their for place about opportunities

Dave Hughes

can with operator, please? and go line, Okay, live Q&A that to we the

Operator

first the line question of comes with America. Instructions] Our [Operator from Bank Asit Sen of

Your Please open. line ahead. go is

Asit Sen

your out CapEx crystal that. to Brad a project been just growth you've wanted multi-year on sustaining flush clear little bit in more about outlook,

think $X.X Analyst per You're about to talked talking XXXX. on at billion an CapEx project. growth million $XXX in And $XXX year you average I about Day, million the

are projects moved expect be there Given an year? environment in much for of in billion pretty to forward improvement we lot uncertainties or you're - growth now, operating CapEx this of dialed kind $X.X there should

Brad Corson

Yes, thanks question. for that

important is our is and critical in forward. ability business I've as to and talked reflect to environment, quite it think adapt on to as past, we continue go the I current the

we pricing to today, reflected seen couple last as as last also that over that's level. sit to level, back we're the on here growth sit of that your environment Certainly price we tempt we've but for reflect commodity we the increase growth certainly encouraged weeks. see, the the prudent by going we're As and year the today. you keep in focused in that add projects, here honestly, may pricing program We fourth $X.X think target quarter of the portfolio on year, we've billion but not at just we the it, think as we capital

$X.X We we out laid Investor with have and very Day, is that. that year billion a at the consistent plan five

plans going to makes given it continue continue to to for in stay think uncertainty sense of So efficiencies. the to to look makes plans, course, stay the kind of And it external in those whether judge now. I any but way, I course to robustness the adjust those the sense for going more we're environment, see the we're given of a

Asit Sen

Thanks your get cancellation to means guys Key on in XL just have want thoughts means Brad. I the what for wanted for terminals My get it and industry advantage follow-up is logistics, the terms broader your thoughts? you just to what and but know all midstream of on and it Imperial. updated

Brad Corson

the country. I my important a so for industry. disappointing very very disappointing very would a just very, say from or the obviously, I Yes, for ago. I perspective, guess And say, announcement would week

is an is the it our that produced in for to interest egress here. crude sufficient a best and that think industry there is I ensure country opportunity as as

in I optionality for it's important the to producers. have think market the

of that affects. jobs unfortunate. So is cause, of the because the quite of the limitations cancellation permits Because will pipeline it the it

continue so on obviously forward. I pipeline. to for the would that of Imperial some we we do say a positive reserved way I'm capacity again, have hopeful we And find supportive strongly pipeline,

has Fortunately other see is us like that been prefer and But quite constraints. feel maximize don't for cause any fact that flexibility to we us, nonetheless, this will this cancelled the so, we unfortunate. options do we enough

Operator

RBC next our the Greg Capital And comes line of with Markets. from question Pardy

is line Your open. ahead. Please go

Greg Pardy

'XX Syncrude perspective and in you're made you about You've - about quarter comment Could Great fourth the you've what's Brad pipeline the about Syncrude strides essentially now. standpoint beyond? the year-over-year. a from organization from within costs, in made in but a game reducing 'XX, talking in place bi-directional dollars of the utilization the cost tremendous billion down rate plan is

Brad Corson

first, I'm the good very say Well, thanks circumstances. progress deliver And quite thanks been made here. to we've hear from some and we've of Greg, entire as you. for for challenging question, workforce an under organization your proud for what Imperial acknowledging the to just able I'd

as this of which leverage And Suncor worked other obviously in year. mentioned for to expertise. case for million to owner's Syncrude, of occasions, benefits talked with will a identify owners at yield operator, the mentioned, the per cost and and look closely the believe I operational $XXX Suncor And significant as tune is significant further As the and Suncor a the and plans become asset to fully I to venture, we we've the very us. key there on joint very we've opportunity other is

to the change more value to pipeline where their of in of venture. And that addition to operations is periods investments broad the specific like operatorship, pipeline, will terms In completed, mining has at now bi-directional they their I advantage or significant add provide think Coker. Syncrude the will that flexibility have impacts also strategy it bi-directional which been that to

upgrade we synergies also performance improvement they'll performance will see or expect utilization. party strong broadly, the be And as and So, reliability and and Suncor bring to cost well. to

I the future forward as we to work details, forward XXXX we progress those quarters. on look again, transition to look So reporting in through and

Greg Pardy

for more you're shares? strategy what broader days these your like could Thanks Brad, maybe you build the a pursuing a Just one can appetite repurchase where terrific. raise conservative is just of year question, you a just financially, given quick but cash, wondering gone you dividend, And your you buybacks versus replenishing cash, could you ton through? here, a got we've could, just flexibility

Brad Corson

that question, for Greg. thanks Well,

been an occasions, focus of other cash Day to will that is our the at assets. area we've has generation, ours potential existing maximize the XXXX in be priority XXXX. of key focus Investor to And in our of As and in continue a that certainly acute talked

Day, the price Investor wide year for price grow we've operational strong ability XXXX. our into and cash built of a we and that's the we see position. environments, to shared range we really performance by And environment, As again our our that and at plans this demonstrated cost do current performance across given driven

us about dividend. that choices make across opportunities. the And case, allocate we'll of how so shareholders then increasing that is will options so, some, Certainly we cash, that priority evaluating around to the return likely range be often is that favorable with to our as a the leave to and cash capital,

on our that opportunities, term, years, As longer be now other But near we've in returning that XX and buyback I of the done the and form buybacks. capital it's to think for we'll growth term dividends be shareholders in over against, investments the focus will projects. weighing - cash against in

Operator

the Dennis from line comes Fong question next of with Markets. our CIBC And World

Your line go is open. ahead. Please

Dennis Fong

to bit one follow first The question. a and on Greg, of a his maybe is

that a a what existing would And it flexibility? in any And of kind guess, back shareholders? Obviously, returning environment. you to could allow on obviously So on mentioned, five-year that to levels Thank I plan? value Are a comfort versus just focus signs very you. and large growth focus shareholders there of buybacks. is projects and focus of value focusing and/or major the you're around conditions volatile adjustments We'll are that drive? to kind challenge via your follow-on? of I'm that surround And returning kind mentioned, this to situation? of constantly call little going changing You kind you some bit to dividends on what key, more

Brad Corson

to Dan, that. Right, I the might a bit comment ask on

Dan Lyons

are low say, existing return committed, assets. would our at to as discipline, I Day we capital we about relatively of projects Yes debottlenecks, cost Investor talked and high pursuing sort on

So, I our think that's focus.

If we not but projects always for this it's projects. our out projects, focus advance, We’ll can't Now though think but open, open really we'll that keep We're or an a advance, inorganic. moment. I our whether to of those time. generate in keep return at I know could start foreseeable looking that, this eyes organic there's that's our we'll opportunity, open, obviously, that's we to to our looking a - eyes X larger say but magic step it's projects be we And future, cash, to focus not investing obviously, whatever, there's oil or formula at large the have not shareholders. stable major you it we're

well of what looking reductions for increase I when to lot to further growth generate our as volumes not as focus see we well cash and opportunity think that's will now have that expense as really shareholders, we return in our we're cash a flows.

Dennis Fong

Okay.

Brad Corson

would to in existing there I focus add years, continue our significant near is to there. just I for we that if the want would to value assets comments. I might And Again, see the few Dan's we term just next on

assets not significant Lake. well we're And Greenfield what is And projects. and about can like see be We from for that select in being existing opportunities there think projects, that's few the years. the progressing new there's major that's so, Cold we've opportunities, focus reason, captured be and examples prudent as that we next have again, that'll do new that in And value very this conscious - for and assets. We for so, Kearl downstream growth our smaller been doing the at environment.

Dennis Fong

actually my good That's follow-up a Thanks. to there. segue really

that very and an a Kearl? kind potentially economic well guys higher the you we kind there of obviously, you And projects are OpEx have the extending can around to cost be the what that lot timing around factors annual at the turnarounds you. thinking how of performance, resilience the you bit unit through that driving initiatives January working talk smaller kind So the the QX. versus some those division to at should or And lower that the a and/or savings How between will given to? seen you was on discuss mentioned Can about, you of provide strong you've believe performed you could of throughputs that have of been uptime factor Kearl little at of between a bit facility? also some contribute basis little projects referred the Thank the driving improving of then on? some you the

Brad Corson

talking the regard. rates, allows other to that Investor that around focus on drones it through to we necessary, with supplemental top that, dollar it positive crushers that trucks to pathway more we've reliability. wide have per question. to spend to using is lower impact There's range got think higher in expenses? our Well things by about We've I autonomous improving there. also hopeful intense barrel, on on for of like us think at accretive. to reduce what's where we're costs what's even unit at that a contributed focus year. by that story. that We're And per many technology effective things. to value continue expense reduced I up $XX be Simon's as we'll efficient about Day reductions do costs. But the $X And example. like had that a When is thanks for to Certainly, big technology haul employing brought and every about ensure of that made our I'm inspections. this talked And U.S. continuing about intense Kearl barrel we've costs better we've XX% I such production it's about, a that contributed site

smaller those deliver volumes So the lower And higher a whole that are just lower really lot costs. inventory additional I a but that those it's and higher smaller contribute we good news things initiatives, continue of of of the us costs. and collection unit done, the a scale few, to to allow cost not have will is, to we're believe costs, projects, volumes

a to. extend moving and runtime In to closely example turnaround able of addition, we volume between the our is productivity XXXX. year plant quite which by and to XXX,XXX being will also as single per And course, are lower at increase other That turnarounds, again, looking working another what to of longer that we're stated, day barrels is annual And be then there term debottlenecking towards look per continued average. really we'll costs. we've annual activities

for barrels our is XXX,XXX year So XXXX this day. a for guidance -

to saw have to So But whole go to get XXX. get projects a inventory us of there. to we ways the we

achieve with we'll I'm So time. that confident

Dave Hughes

Okay the couple Brad, we're going to now. go back of questions to a pre-submitted

can First it one the mentioned Syncrude benefit the of reiterate, talk in bidirectional comes project performance the just from the Suisse. quarter? did does this Manav maybe remarks. you to We and Is Credit about of opening But during Gupta how complete asset? the

Brad Corson

pipeline and fourth work in completed And the Manav started have pipeline construction quarter. most was between of to just product remarks question needed. reiterate, maybe the recent of one I and to on the my transfer thanks as in the I've we Yes, the but for that probably that, answered questions, think bidirectional

So, we that. from see benefits that. way we starting are to from benefit the some And derive

that that has handles one pipelines, fluids. sour two the actually there's that recall handles may other bitumen, You

bitumen when us flexibility us during down. export down. supports bitumen is import by the gives coker so then of one coker handles And mine import bitumen the will periods fluids allow the downtime, but And to that to pipeline to fluids us also us the when is our giving sour flexibility

of flexibility, periods throughput profitability the downtime of reliability and Syncrude. again, that ultimately will unscheduled increase and having during just scheduled So the both

excited about it. quite we're So

Dave Hughes

way in And shut had any forced Access to if Dakota the is you Manav follow-up, impacted pipeline a are down?

Brad Corson

down any pipeline that on crude Yes, question. don't DAPL we impacted We're refineries. it’s to because shut directly transport feed a our good to not were if

benefit most refineries However, differentials. a And that light predominantly imagine implications crude crude there producers run indirect that would other probably oil our differentials impact force would scenarios, could shutdown Bakken you could which be light, under do stocks. because regional egress would those alternatives widen feed because and to could seek we

this at months the So, have many this we we're some uncertainty as last there's close obviously for a look keeping around pipeline. been as -

Dave Hughes

with Benny of and what differentiate a about versus supply Stanley, Canadian same? and do on position focused market space? the increased Imperial Morgan consolidating and focus intense demand the And question ESG to also oil competitive today Imperial’s evolve sands Great. will how mind think volatility, energy peers going from Wong in How's you and this story your

Brad Corson

we're highly say this those marketplace. of would a confident factors. assets. I wide range driven by of summary, in starts It our Well in that's to ability with in And compete the quality

benefit which many As when production occasion and And in we've year, on competitive us synergies have with integration, what about ability level think I of high us lower cost cost by we our that's I've discipline, to to win, I talked and enhancements, what achieved and allow a to a breakeven believe. will ultimately then The that of and compete with provides capture capital advantage. think, reductions, you Mobil, so our integration. relationship significantly terms allowed altogether us this Exxon

Dave Hughes

it Right. questions. pre-submitted that's for And the

live. take So operator, will the go and back

Operator

on the Neil the come with question Mehta will Goldman phone line line from next our And of Sachs.

Your open. is line Please go ahead.

Carly Davenport

thoughts also the Are of My out just there Hi, on this expect Neil, was the the contingency Davenport you around on the for provide process that you in Carly been earlier X working any and to plans DAPL. can thanks how first shake you've event Line is shut-in? one for color questions. on taking around appreciate I and any

Brad Corson

Very Line X from piece DAPL, is us. infrastructure thanks question. critical of obviously, for for that different Carly, a Yes,

crude in developments that and closely low well of through to We other that a as alternate both supply with us is plans Nanticoke being Ontario, would developing those are our allow watch that rail shutdown to available. pipeline alternatives continue seaway, as through are very probability, pipelines we very appropriate the while Sarnia sources refineries contingency of think we that

closely. very it watching are we again, So,

were question. few the that the years We there line any be be We news line are in the the permits yesterday, some in optimistic new replace won't there where just next will constructed saw impacts. approved to over for

place we're that contingency carefully, So well. we're plans ensuring very as in we've adequate watching but got

Carly Davenport

$XX just that. Great, thanks follow-up WTI. been $XX bouncing kind the by And rail. under to have level is around a one differentials quick WCS then for of on this crude

your can see at you throughout views talk year? So of and Imperial’s trending rail on the just economics current you levels about program rail how the

Brad Corson

being some as economic Well, rail the for range we it's at movements. think in increase differentials, those look I in of

rail. a de-minimis last obviously, something the zero movements volatility know, you look has industry, barrels XXX,XXX widening, I there of per earlier levels back don't day year maybe in with the third, differentials don't in year, - rail the it's think XXX,XXX barrels think As probably for we quarter. but I see number, I have to day current at starting fourth I highs of the from increased industry XXX,XXX in been almost that But or last or a to movements lot to by are range.

we continue Imperial barrel For we'll some the to up XX,XXX ramp rail. the of In movements term, assess going probably obviously, we're at forward. economics are that XX,XXX, starting to also a near And range. on the day

has levels as restored, manageable been have inventory currently, builds still we at turnarounds seen at production look even very inventory levels. in last completed. we and over months few As most But the and we're Canada,

last highs year. of seen barrels million XX million we've barrels, as like Something probably XX industry whereas an just shy of

in around a very we're and by I pipelines, of. supportive government has keeping So the is remove which decision curtailment, and balance, rail, think reinforce storage, I the around that's around there lot also the to think system flexibility of well so

Operator

of And TD Securities. our next question comes from with Hulshof Menno the line

is Please line open. Your go ahead.

Menno Hulshof

Thanks question. for taking my

CCS. Williams carbon a So to low through follow-up part push just two Exxon's on question

two think on the just years? you or a in carbon the could market off, us is your XX in give about So back own press you can was about can the priorities one Imperial, on front I'm And on release. take top quick and and to do surprise to comment down CCS that you of it coming of globally, And on whether that XX refresh first the talking where driving intensity? list opportunities talked you Exxon's then list Canada the

Brad Corson

opportunities said, were And at excited thanks explicit as by list that for I've seen XX question. that of project announcement, the cited. not I Yes, quite outset, have that the

an do So I can I of CCS is specifically, though pathway net see we a that from part zero. perspective, to can't share is comment Imperial an you what integral with

Theresa And last that something certainly this are screen, at about on Day. so we it is that is talked our something our radar evaluating. Investor

be the into that. and as So very their our may weeks in opportunities are, of reducing would coming operations. we'll how Canadian fit engaging Exxon intensity months, focus on to expect greenhouse the our our further much gas In is any priority you the near-term, Mobil what understand of projects and

allow but around technologies flue a planning very the further have technologies or a with both impacts at announced what broadly completed We our component time reduction will oil clean also we additional and see ways our But then achieved platform to biofuels to as in recently project reduce by sands place in-situ our operations, from get XXXX. And achieve more the refining fuel And initiatives projects. clear we're already will part the have we in benefit objectives. regulation, we we recently were by to were product XXXX. a standard And we clearly, forward. look that aware, We've enhanced partnering to continue Exxon by a slate clean going their our are us looking to We of that cogeneration at fuel commitment XX%, through our now Strathcona. to a be already emissions those again, operations to goal we government, boiler going from that a at Imperial, intensity where XX% to gas of XXXX. operations. XX% an of doing And including for relative further Mobil can derive reduce we as you're as of

Operator

for I like any you. and further Thank on no to I'm to Hughes over showing the remarks. questions the conference Dave turn lines, further back And would Mr. phone

Dave Hughes

operator. Thanks

our call So this that concludes morning.

follow-up any I'll thanking reach further by hesitate questions if As have team. us you to or please the everybody with IR discussion, joining always, want to any conclude And that, morning. have this out for to don't

Operator

gentlemen, this you program. Thank concludes Ladies and for participating. today's

Everyone disconnect. a You may day. have all great