Simple question,
Do you guys think ExxonMobil will sell their majority stake in Imperial Oil anytime in the future... perhaps to companies like CNRL or Cenovus ? What about Imperial Oil selling its Kearl or Cold Lake assets to competitors in Canada ?
With the way the govt in canada is behaving, i doubt EM would want to deal with the gong show much longer considering they just spent $60B in stocks to acquire Pioneer.
EDO is just a calculation based on number of hours worked every month. So an adjustment is made to even it out by giving a day off instead of overtime.
Kearl lake has a massive amount of oil that keeps on churning out production week after for decades. And now it also has fully autonomous mining trucks.
Cold lake has been producing since the 70s and the volume produced is large and will keep on producing for quite a while. It's production costs is very low compared to others like shale for instance where wells decline to half within 12-18 months.
Its not like shale where you need to constantly keep putting drilling and fracking capital for resources that are hard to find during oil booms and run out of quality low cost acreages to drill. Shale was just a few years ago called one of the biggest investment destroyers which is the reason oil companies are hesitant to invest on a large scale with big private shareholders like wall street unwilling to risk their money on large shale investments preferring to get paid rather than reinvest. Since 2014, they have seen their investment wiped out across the industry with so many companies going bankrupt. In March 2020 during peak COVID shutdowns when ksa and Russia refused to cut production, the whole shale sector was on their knees petitioning nopec because the were going bankrupt overnight.
Shale is at best a filler oil reservoir you ramp it during oil booms and reduce capital investment/ production during price drops to fill any production gaps, it's is getting exhausted quickly and being light oil cannot be processed at most of the gulf coast refineries and produces different proportion of refinery products.
The feedstock for strathcona was one of the cheapest in the world and makes it very profitable probably one of the most profitable on the planet. To give perspective, shell scotford is THE most profitable shell refinery in the WORLD!
I wouldn't be surprised that pioneer might end up like a catastrophic money loser like XTO when Exxon paid $40 billion for that investment because prices tanked soon after because of a shale gas glut (even today the gas prices never recovered).
The kearl and cold lake reservoirs are very very large and keep on chugging along profitably.
As long as Imperial Oil continues to buy back stock, they will not be sold.
Imperial Oil Plans Substantial Issuer Bid to Buy Up to C$1.5 Billion of Its Shares
Provided by Dow Jones
Oct 27, 2023 7:35 AM CDT
By Robb M. Stewart
Imperial Oil plans to return cash to investors with the purchase for cancellation of up to 1.5 billion Canadian dollars ($1.08 billion) of its shares.
Exxon Mobil, the Canadian oil company's majority shareholder, will make a proportionate tender to maintain its stake in Imperial Oil at just under 70% following the substantial issuer bid.
Imperial Oil expects the terms and pricing will be determined and the offer launched during the next two weeks, and will be completed before the end of the year.
The company completed an accelerated normal course issuer program this month, which saw it return more than C$2.3 billion in all to its shareholders.
Imperial Oil's production averaged 423,000 gross oil-equivalent barrels a day in the third quarter, down from 430,000 barrels a day in the same period last year. Adjusting for its sale of XTO Energy Canada, which closed in the third quarter of 2022, the company said its production increased by about 5,000 gross oil-equivalent barrels a day.
Write to Robb M. Stewart at robb.stewart@wsj.com
Why would you sell a country with one of the highest proven remaining reserves?
The health insurance comments below is not true. Canadian pays more taxes and have stronger healthcare system that the USA that's why we normally do not pay excessive amount of health insurance the way American system works. This has nothing to do with Imperial or Exxon.
The ExxonMobil Corporation overheads (50%) imposed on each refinery is one of the reasons that our refineries are not competitive.
@3nbv: EDOs are provincially-mandated days off, in addition to bank holidays. Canadian law.
Also work 20 to 30% less and you don't have to pay for health insurance so it works out.
IOL gets paid about 20-30% lower compared to XOM counterparts with similar role and experience.
@uxn+1pjYsNdE EM didn't care about Billings but Par and site leadership has been great. Earnings are outstanding as a site without EM overhead. 9/80 schedule put in place immediately. No forced ranking. Bonus structure for non represented employees. Unlimited PTO. Committed to reinvesting and building reliability - maintenance and capital budget much more than what EM ever provided . Company leadership is visible on the ground level. Call it a trash site if you want but life is great here since June 1.
What is an earned day off and why do imperial employees get one every month? Most of them work from home 3 or 4 days a week. What are they doing to earn days off?
Canadian upstream assets will be more valuable in 6-12 months after TMX starts up and makes it cheaper to get crude out of Alberta to market. Question is, do buyers know this and factor that into the price, trying to get a deal now. Or are we waiting for a better price after TMX?
Probably, but gotta wait 9-12 months if you’re lucky, just like a doctors appointment.
With the right price everything is for sale
ExxonMobil has been actively shopping all of Canada for several years now, problem is no one wants to buy any of those assets. The Canadian government is not business friendly and only the Greeks have a worse work ethic than Canadians. ExxonMobil tried selling Canadian assets to Par Pacific as a package deal, (recall Par Pacific bought ExxonMobil’s trash refinery in Billings), but Par Pacific wasn’t interested in any Canadian garbage. After purchase of Denbury and Pioneer, all of Canada will be sold at garage sale prices.
Look at the reserves. Can’t lose all the reserves associated with kearl
Kearl is for sure going to be sold, what a horrible environmental liability. Excluding Strathcona (for now) and Cold Lake, nothing else is worth the effort and immense distraction. Get out while you can!
Yes please
I've you've ever worked at kearl the difference in culture is astounding. There are so many people up there on a vacation every two weeks that aren't worth a damn. No wonder the place doesn't make any money. They could fire half the people there and probably get more efficient.
Yes. Indeed.
OMG please sell.
At the right price, they’d cut and run…it’s been looked at before