Oil and Gas

Gran Tierra Energy Inc. Provides Operational and Financial Update

Gran Tierra Energy Inc. Provides Operational and Financial Update

Gran Tierra Energy Inc. (Gran Tierra or the Company) (NYSE American:GTE)(TSX:GTE)(LSE:GTE) today announced an operational and financial update. All dollar amounts are in United States dollars, and production amounts are on an average working interest before royalties (“WI”) basis unless otherwise indicated. Per barrel (“bbl”) and bbl of oil per day (“BOPD”) amounts are based on WI sales before royalties.

  • Gran Tierra Met Production Guidance with 2022 Total Company Average Production of Approximately 30,800 BOPD
  • Fourth Quarter 2022 Total Company Average Production of Approximately 32,600 BOPD, an Increase of 10% from Fourth Quarter 2021
  • Strong Exit with Total Company Average Production During December 2022 of Approximately 33,800 BOPD
  • Moqueta Development Campaign Underway with Second Development Well Spud
  • First Moqueta Development Well Yielding Encouraging Results
  • Bought Back 23 Million Gran Tierra Shares of Common Stock During 2022

Message to Shareholders

Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: “We are excited to announce that our 2022 total Company average production was approximately 30,800 BOPD which was within our guidance despite several social disruptions and a delay in our Moqueta drilling program. Our Moqueta development campaign is well underway with two of the five planned wells having been spud thus far. The initial production results of the first well are encouraging with a stable average rate of 1,312 BOPD. We are very excited for what 2023 holds for the Company and expect to build off the momentum from the strong finish to 2022.”

Operations Update:

  • Production
    • During fourth quarter 2022, Gran Tierra’s total average production was approximately 32,600 BOPD.
    • December 2022 total Company average production was approximately 33,800 BOPD.
    • Gran Tierra’s total average production for the full year 2022 was approximately 30,800 BOPD which is within the Company’s prescribed guidance.
  • Colombia Development:
    • Moqueta Development Campaign:
      • Testing began on the first Moqueta well which was spud on November 28, 2022. From December 23, 2022, to January 9, 2022, the Moqueta-24 well has been producing on a jet pump at a stable average rate of 1,312 BOPD (28-degree API gravity) and 193 bbl of water ("BWPD") with a gas-oil ratio of 170 standard cubic feet per stock tank bbl.
      • On January 3, 2023, the Company spud its second development well in the Moqueta field. This well is expected to reach its planned total depth by mid-January 2023.
    • Acordionero Development:
      • Waterflood success at Acordionero resulted in December 2022 total Company average production for this field of approximately 17,800 BOPD, the highest level since the second quarter of 2019.
      • Water injection at Acordionero reached a new record of over 60,000 BWPD in December 2022.
    • Suroriente Development:
      • As a result of the successful increase in water injection, expansion of facilities, and minimal disruptions, the Suroriente Block produced an average of 8,700 BOPD gross (4,500 BOPD WI) in the fourth quarter of 2022, the highest level since the second quarter of 2015 despite not drilling a well since the first quarter of 2018.

Shareholder Returns:

  • Share Buybacks: Pursuant to Gran Tierra’s current normal course issuer bid, Gran Tierra purchased approximately 23 million shares during 2022, representing about 6.2% of shares outstanding as of June 30, 2022.

Debt Repayment:

  • As part of Gran Tierra’s focus on significant debt reduction, the Company reduced its total debt by $87.6 million in 2022 and by a further $122.5 million in 2021, for a reduction of total debt of $210.1 million over the past two fiscal years.

Corporate Presentation:

Gran Tierra’s Corporate Presentation is available on the Company website at www.grantierra.com.

Contact Information

For investor and media inquiries please contact:

Gary Guidry
President & Chief Executive Officer

Ryan Ellson
Executive Vice President & Chief Financial Officer

Rodger Trimble
Vice President, Investor Relations

+1-403-265-3221

info@grantierra.com

About Gran Tierra Energy Inc.

Gran Tierra Energy Inc. together with its subsidiaries is an independent international energy company currently focused on oil and natural gas exploration and production in Colombia and Ecuador. The Company is currently developing its existing portfolio of assets in Colombia and Ecuador and will continue to pursue additional growth opportunities that would further strengthen the Company’s portfolio. The Company’s common stock trades on the NYSE American, the Toronto Stock Exchange and the London Stock Exchange under the ticker symbol GTE. Additional information concerning Gran Tierra is available at www.grantierra.com. Information on the Company’s website (including the Corporate Presentation referenced above) does not constitute a part of this press release. Investor inquiries may be directed to info@grantierra.com or (403) 265-3221.

Gran Tierra’s U.S. Securities and Exchange Commission (“SEC”) filings are available on the SEC website at www.sec.gov. The Company’s Canadian securities regulatory filings are available on SEDAR at www.sedar.com and UK regulatory filings are available on the National Storage Mechanism (“the NSM”) website at https://data.fca.org.uk/#/nsm/nationalstoragemechanism. Gran Tierra's filings on the SEC, SEDAR and the NSM websites are not incorporated by reference into this press release.

Forward Looking Statements and Legal Advisories:

This press release contains opinions, forecasts, projections, and other statements about future events or results that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and financial outlook and forward-looking information within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”). The use of the words “expect,” “plan,” “can,” “will,” “should,” “guidance,” “forecast,” “signal,” “progress,” and “believes,” derivations thereof and similar terms identify forward-looking statements. In particular, but without limiting the foregoing, this press release contains forward-looking statements regarding: the Company’s expected future production (including as a result of our testing results), the Company’s drilling program, the Company’s potential debt repayments and share repurchases. The forward-looking statements contained in this press release reflect several material factors and expectations and assumptions of Gran Tierra including, without limitation, that Gran Tierra will continue to conduct its operations in a manner consistent with its current expectations, pricing and cost estimates (including with respect to commodity pricing and exchange rates), and the general continuance of assumed operational, regulatory and industry conditions in Colombia and Ecuador, and the ability of Gran Tierra to execute its business and operational plans in the manner currently planned.

Among the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements in this press release are: Gran Tierra’s operations are located in South America and unexpected problems can arise due to guerilla activity, strikes, local blockades or protests; technical difficulties and operational difficulties may arise which impact the production, transport or sale of our products; other disruptions to local operations; global health events (including the ongoing COVID-19 pandemic); global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including inflation and changes resulting from a global health crisis, the Russian invasion of Ukraine, or from the imposition or lifting of crude oil production quotas or other actions that might be imposed by OPEC, and other producing countries and the resulting company or third-party actions in response to such changes; changes in commodity prices, including volatility or a decline in these prices relative to historical or future expected levels; the risk that current global economic and credit conditions may impact oil prices and oil consumption more than Gran Tierra currently predicts, which could cause Gran Tierra to further modify its strategy and capital spending program; prices and markets for oil and natural gas are unpredictable and volatile; the accuracy of testing and production results and seismic data, pricing and cost estimates (including with respect to commodity pricing and exchange rates); the effect of hedges; the accuracy of productive capacity of any particular field; geographic, political and weather conditions can impact the production, transport or sale of our products; the ability of Gran Tierra to execute its business plan and realize expected benefits from current initiatives; the risk that unexpected delays and difficulties in developing currently owned properties may occur; the ability to replace reserves and production and develop and manage reserves on an economically viable basis; the risk profile of planned exploration activities; the effects of drilling down-dip; the effects of waterflood and multi-stage fracture stimulation operations; the extent and effect of delivery disruptions, equipment performance and costs; actions by third parties; the timely receipt of regulatory or other required approvals for our operating activities; the failure of exploratory drilling to result in commercial wells; unexpected delays due to the limited availability of drilling equipment and personnel; volatility or declines in the trading price of our common stock or bonds; the risk that Gran Tierra does not receive the anticipated benefits of government programs, including government tax refunds; Gran Tierra’s ability to obtain a new credit agreement and to comply with financial covenants in its credit agreement and indentures and make borrowings under any credit agreement; and the risk factors detailed from time to time in Gran Tierra’s periodic reports filed with the Securities and Exchange Commission, including, without limitation, under the caption “Risk Factors” in Gran Tierra’s Annual Report on Form 10-K for the year ended December 31, 2021 and its other filings with the Securities and Exchange Commission. These filings are available on the Securities and Exchange Commission website at http://www.sec.gov and SEDAR at www.sedar.com.

The forward-looking statements contained in this press release are based on certain assumptions made by Gran Tierra based on management’s experience and other factors believed to be appropriate. Gran Tierra believes these assumptions to be reasonable at this time, but the forward-looking statements are subject to risk and uncertainties, many of which are beyond Gran Tierra’s control, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. In particular, the unprecedented nature of the current economic downturn, pandemic and industry decline may make it particularly difficult to identify risks or predict the degree to which identified risks will impact Gran Tierra’s business and financial condition. All forward-looking statements are made as of the date of this press release and the fact that this press release remains available does not constitute a representation by Gran Tierra that Gran Tierra believes these forward-looking statements continue to be true as of any subsequent date. Actual results may vary materially from the expected results expressed in forward-looking statements. Gran Tierra disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Presentation of Oil and Gas Information

References to a formation where evidence of hydrocarbons has been encountered is not necessarily an indicator that hydrocarbons will be recoverable in commercial quantities or in any estimated volume. Gran Tierra’s reported production is a mix of light crude oil and medium and heavy crude oil for which there is not a precise breakdown since the Company’s oil sales volumes typically represent blends of more than one type of crude oil. Well test results should be considered as preliminary and not necessarily indicative of long-term performance or of ultimate recovery. Well log interpretations indicating oil and gas accumulations are not necessarily indicative of future production or ultimate recovery. If it is indicated that a pressure transient analysis or well-test interpretation has not been carried out, any data disclosed in that respect should be considered preliminary until such analysis has been completed. References to thickness of “oil pay” or of a formation where evidence of hydrocarbons has been encountered is not necessarily an indicator that hydrocarbons will be recoverable in commercial quantities or in any estimated volume.

Source

Click here to connect with Gran Tierra Energy Inc. (NYSE American:GTE)(TSX:GTE)(LSE:GTE), to receive an Investor Presentation

GTE:CA
Gran Tierra Energy

Gran Tierra Energy


Keep reading...Show less
Gran Tierra Energy Inc. Announces Strong Reserves Replacement and Continued Reserves Growth in 2022

Gran Tierra Energy Inc. Announces Strong Reserves Replacement and Continued Reserves Growth in 2022

  • Added Total Company Reserves of 14 MMBOE 1P, 17 MMBOE 2P and 31 MMBOE 3P
  • Achieved 126% 1P, 148% 2P and 280% 3P Reserves Replacement
  • Fourth Consecutive Year of 1P Reserves Growth
  • Exploration Discoveries Alone Added Company Reserves of 5 MMBOE 1P, 16 MMBOE 2P and 32 MMBOE 3P
  • Achieved Three-Year Average Per Barrel Finding and Development Costs of $11.69 PDP and $14.51 1P
  • Reserve Life Indexes of 7 (1P), 11 (2P) and 15 (3P) Years
  • Net Present Value Before Tax Discounted at 10 Percent Increased to $2.1 Billion (1P), $3.0 Billion (2P) and $4.1 Billion (3P)
  • 1P Net Asset Value per Share of $4.62 Before Tax, Up 77% from 2021
  • 2P Net Asset Value per Share of $7.36 Before Tax, Up 56% from 2021
  • Net Debt-Adjusted Production per Share Growth of 67% since 2021
  • Net Debt-Adjusted Reserves per Share Growth of 56% (1P), 57% (2P) and 69% (3P) since 2021
  • Future Net Revenue After Taxes and Capital Expenditures Forecast to be $1.4 Billion (1P), $1.7 Billion (2P) and $1.9 Billion (3P) Over the Next Five Years
  • Strong Start to 2023 with Year-to-Date Total Company Average Production of Approximately 33,000 BOPD

Gran Tierra Energy Inc. (" Gran Tierra" or the " Company ") (NYSE American:GTE) (TSX:GTE) (LSE: GTE) a company focused on international oil exploration and production with assets currently in Colombia and Ecuador, today announced the Company's 2022 year-end reserves as evaluated by the Company's independent qualified reserves evaluator McDaniel & Associates Consultants Ltd. (" McDaniel" ) in a report with an effective date of December 31, 2022 (the " GTE McDaniel Reserves Report" ).

All dollar amounts are in United States (" U.S. ") dollars and all reserves and production volumes are on a working interest before royalties ( "WI" ) basis. Production is expressed in barrels ( "bbl" ) of oil per day ( "bopd" ), while reserves are expressed in bbl, bbl of oil equivalent ( "boe" ) or million boe ( "MMBOE" ), unless otherwise indicated. All reserves values, future net revenue and ancillary information contained in this press release have been prepared by McDaniel and calculated in compliance with Canadian National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (" NI 51-101 ") and the Canadian Oil and Gas Evaluation Handbook (" COGEH" ) and derived from the GTE McDaniel Reserves Report, unless otherwise expressly stated. The following reserves categories are discussed in this press release: Proved Developed Producing ( "PDP" ), Proved ( "1P" ), 1P plus Probable ( "2P" ) and 2P plus Possible ( "3P" ).

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Gran Tierra Energy Inc. Announces 2023 Guidance

Gran Tierra Energy Inc. Announces 2023 Guidance

  • 2023 Capital Expenditure Budget of $210-250 Million, Expected 2023 Cash Flow 1 of $270-320 Million in Base Case
  • Plan to Drill 18-23 Development Wells and 4-6 Exploration/Appraisal Wells
  • Forecast 2023 Production of 32,000-34,000 BOPD, an Increase of 8% from 2022 and 24% from 2021
  • Forecast 2023 Free Cash Flow 2 of $135 Million Before Exploration, $65 Million After Exploration in Base Case

Gran Tierra Energy Inc . ("Gran Tierra" or the "Company") (NYSE American:GTE)(TSX:GTE)(LSE:GTE) today announced its 2023 capital budget and production guidance. All dollar amounts are in United States dollars and all production volumes are on a working interest before royalties basis and are expressed in barrels ( "bbl" ) of oil per day ( "BOPD" ), unless otherwise stated.

Key Highlights:

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Gran Tierra Energy Inc. Announces Third Quarter 2022 Results

Gran Tierra Energy Inc. Announces Third Quarter 2022 Results

  • Third Quarter 2022 Average Production of 30,391 BOPD, Up 5% from One Year Ago
  • Fourth Quarter-To-Date 2022 Average Production (1 ) of 32,291 BOPD
  • Net Income of $39 Million, $168 Million Over The Last 12 Months
  • Adjusted EBITDA (2) of $121 Million, Up 48% Year-on-Year, $462 Million Over Last 12 Months
  • Net Cash Provided by Operating Activities of $109 Million, Up 82% Year-on-Year
  • Funds Flow from Operations (2) of $94 Million, Up 36% Year-on-Year, $350 Million Over Last 12 Months
  • Free Cash Flow (2 ) of $37 Million, $146 Million Over Last 12 Months
  • Cash Balance of $118 Million and Net Debt (2) of $462 Million, as of September 30, 2022
  • Colombia Exploration: Rose-1 Drilled and Undergoing Testing, Rig Mobilizing for Gaitas-2 Exploration Well
  • Ecuador Exploration: First Two Exploration Wells Drilled in Ecuador with First Well Yielding Oil and Second Well to be Tested

Gran Tierra Energy Inc . ("Gran Tierra" or the "Company") (NYSE American:GTE)(TSX:GTE)(LSE:GTE) today announced the Company's financial and operating results for the quarter ended September 30, 2022 (" the Quarter "). All dollar amounts are in United States dollars, and production amounts are on an average working interest (" WI ") before royalties basis unless otherwise indicated. Per barrel (" bbl ") and bbl per day (" BOPD ") amounts are based on WI sales before royalties. For per bbl amounts based on net after royalty (" NAR ") production, see Gran Tierra's Quarterly Report on Form 10-Q filed November 1, 2022.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Gran Tierra Energy Inc. Provides Release Date for its 2022 Third Quarter Results and Details of Conference Call and Webcast

Gran Tierra Energy Inc. Provides Release Date for its 2022 Third Quarter Results and Details of Conference Call and Webcast

Gran Tierra Energy Inc . ("Gran Tierra" or the "Company") (NYSE American:GTE)(TSX:GTE)(LSE:GTE) announces that the Company will release its 2022 third quarter financial and operating results on Tuesday, November 1, 2022, after market close. Gran Tierra will host its third quarter 2022 results conference call on Thursday, November 3, 2022, at 9:00 a.m. Mountain Time, 11:00 a.m. Eastern Time.

Interested parties may register for the conference call by clicking on this link . Please note that there is no longer a general dial-in number to participate and each individual party must register through the provided link. Once parties have registered, they will be provided a unique PIN and call-in details. There is also a new feature that allows parties to elect to be called back through the "Call Me" function on the platform.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Gran Tierra Energy Inc. Provides Operational and Financial Updates

Gran Tierra Energy Inc. Provides Operational and Financial Updates

  • Achieved Third Quarter 2022 Average Production of Approximately 30,391 BOPD, Up 5% from One Year Ago
  • Fourth Quarter-To-Date 2022 Total Company Average Production (1) of Approximately 32,000 BOPD
  • Bought Back 10.8 Million Gran Tierra Shares of Common Stock for $14.4 Million during September 2022
  • Bought Back 6.7% of Gran Tierra's 6.25% Senior Notes Due February 2025 for $17.3 Million in September 2022
  • As of September 30, 2022, Gran Tierra Had a Cash Balance of $118 Million and Net Debt (2) of $462 Million
  • Colombia Exploration: Production Testing Gaitas-1 Well, Planning a Gaitas-2 Well, Drilled and Cased Rose-1 Well
  • Ecuador Exploration: Drilled and Cased Bocachico-1 Exploration Well with Production Testing Underway and Currently Drilling Charapa Norte-1 Well

Gran Tierra Energy Inc . ( " Gran Tierra " or the " Company " ) (NYSE American:GTE)(TSX:GTE)(LSE:GTE) today announced an operational and financial update. All dollar amounts are in United States dollars, and production amounts are on an average working interest before royalties (" WI ") basis unless otherwise indicated. Per barrel (" bbl ") and bbl per day (" BOPD ") amounts are based on WI sales before royalties.

Message to Shareholders

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less

Parex Resources Announces 12 Consecutive Years of Reserves Per Share Growth, a 50% Increase to the Regular Dividend and Provides 2023 Guidance Update

Parex Resources Inc. ("Parex" or the "Company") (TSX: PXT) is pleased to announce the results of its annual independent reserves assessment as at December 31, 2022, as well as a corporate update. The financial and operational information contained below is based on the Company's unaudited estimated results for year-end December 31, 2022. All currency amounts are in United States dollars unless otherwise stated. The following reserves categories are discussed in this news release: proved developed producing ("PDP"); proved ("1P"); proved plus probable ("2P"); and proved plus probable plus possible ("3P").

Key Highlights

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less

Suncor Energy Closes Purchase of Additional Interest in Fort Hills Project

All financial figures are in Canadian dollars

Suncor Energy (TSX: SU) (NYSE: SU) today announced that it has closed the transaction to purchase an additional 14.65% working interest in the Fort Hills Project from Teck Resources Limited ("Teck"). As announced by TotalEnergies on January 27, 2023, TotalEnergies EP Canada Ltd. has provided notice of the exercise of its contractual right of first refusal to acquire the remaining 6.65% of Teck's interest.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Blue Star Helium

Voyager Development Well Permitting Update

Blue Star Helium Limited (ASX:BNL, OTCQB:BSNLF) (Blue Star or the Company) provides an update on helium development well permitting at its Voyager helium project in Las Animas County, Colorado.

Keep reading...Show less

Imperial declares first quarter 2023 dividend

Imperial Oil Limited (TSE: IMO, NYSE American: IMO) today declared a quarterly dividend of 44 cents per share on the outstanding common shares of the company, payable on April 1, 2023, to shareholders of record at the close of business on March 3, 2023.

This first quarter 2023 dividend compares with the fourth quarter 2022 dividend of 44 cents per share.

News Provided by Business Wire via QuoteMedia

Keep reading...Show less

Imperial announces fourth quarter 2022 financial and operating results

  • Quarterly net income of $1,727 million and cash flow from operating activities of $2,797 million
  • Upstream production of 441,000 gross oil-equivalent barrels per day during fourth quarter, driven by continued strength at Kearl and Cold Lake, and higher production at Syncrude
  • Maintained strong refining capacity utilization, achieving best ever quarterly utilization of 101 percent
  • Returned more than $2.1 billion to shareholders in the fourth quarter, including successful completion of substantial issuer bid
  • Declared first quarter dividend of 44 cents per share
  • Approved $720 million project to construct largest renewable diesel facility in Canada
  • Announcing company-wide goal to achieve net zero (Scope 1 and 2) by 2050 in operated assets

Imperial (TSE: IMO) (NYSE American: IMO) :

Imperial reported estimated net income in the fourth quarter of $1,727 million and cash flow from operating activities of $2,797 million, compared to net income of $2,031 million and cash flow from operating activities of $3,089 million in the third quarter of 2022. Fourth quarter results reflected strong operating performance across all business segments and robust diesel crack spreads, which were offset by lower upstream realizations. Full-year estimated net income was $7,340 million with cash flow from operating activities of $10,482 million.

"Our financial results this past year are the strongest in company history, driven by record operating performance across our assets," said Brad Corson, chairman, president and chief executive officer. "Throughout 2022 our operations remained focused on ensuring a stable supply of energy products to Canadian and global markets, supporting continued economic growth and capturing significant value for our shareholders."

Upstream production in the fourth quarter averaged 441,000 gross oil-equivalent barrels per day, bringing full-year production to 416,000 gross oil-equivalent barrels per day. At Kearl, quarterly total gross production averaged 284,000 barrels per day, in-line with the asset's previous record quarterly production set in the fourth quarter of 2020. Kearl's second half production was the highest in the asset's history, fully recovering from early 2022 cold weather impacts, bringing full-year production to 242,000 total gross barrels per day. At Cold Lake, quarterly gross production averaged 141,000 barrels per day with annual production of 144,000 barrels per day, the highest full-year production since 2018. At Syncrude, quarterly production increased to 87,000 gross barrels per day following the completion of its planned turnaround in the third quarter of 2022, with full-year production of 77,000 barrels per day representing the highest annual production in Syncrude history.

In the Downstream, throughput in the fourth quarter averaged 433,000 barrels per day with capacity utilization of 101 percent, the highest quarterly utilization in company history, as Imperial continues to maximize production to meet Canadian demand. Full-year throughput averaged 418,000 barrels per day with capacity utilization of 98 percent, the highest full-year utilization in company history. Fourth quarter petroleum product sales averaged 487,000 barrels per day, with annual petroleum product sales averaging 475,000 barrels per day.

During the quarter, Imperial returned $2,145 million to shareholders, through dividend payments, accelerated completion of the company's annual normal course issuer bid program and successful completion of the company's $1.5 billion substantial issuer bid program in December. Throughout 2022, the company returned over $7 billion to its shareholders. "Imperial continued delivering on its long-standing commitment by returning record cash to shareholders in 2022 through our reliable and growing dividend and industry-leading share repurchase programs," said Corson.

In January, Imperial announced it will further help Canada achieve its net zero goals by approving a $720 million renewable diesel project located at the company's Strathcona Refinery near Edmonton. The project will be the largest of its kind in Canada, designed to produce more than one billion litres of renewable diesel annually primarily from locally sourced feedstocks and could help reduce greenhouse gas emissions by about 3 million metric tons per year, as determined in accordance with Canada's Clean Fuel Regulations. Site preparation and initial construction work is underway with renewable diesel production expected to start in early 2025, subject to regulatory approvals.

As part of the company's efforts to provide solutions that lower the greenhouse gas emissions intensity of our operations and provide lower life-cycle emissions products to our customers, Imperial is implementing a company-wide goal to achieve net zero emissions (Scope 1 and 2) by 2050 in its operated assets through collaboration with government and industry partners. Successful technology development and supportive fiscal and regulatory frameworks will be needed to achieve this goal. This work builds on Imperial's previously announced net-zero goal for operated oil sands as part of the Pathways Alliance initiative, as well as the company's 2030 emission intensity reduction goal for operated oil sands. The company plans to achieve its net zero goal by applying oil sands recovery technologies that use less steam, implementing carbon capture and storage and implementing efficiency projects including the use of lower carbon fuels at its operations.

"We continue to make progress on advancing lower-carbon solutions that support our journey to net zero, including our strategic growth investment in the Strathcona Renewable Diesel project," said Corson. "This project will create jobs for the local economy, help our customers reduce their emissions and further enhance Imperial's low-carbon product offering."

Fourth quarter highlights

  • Net income of $1,727 million or $2.86 per share on a diluted basis, up from $813 million or $1.18 per share in the fourth quarter of 2021.
  • Cash flows from operating activities of $2,797 million, up from $1,632 million in the same period of 2021. Cash flows from operating activities excluding working capital 1 of $2,452 million, up from $1,648 million in the same period of 2021.
  • Capital and exploration expenditures totaled $488 million, up from $441 million in the fourth quarter of 2021.
  • The company returned $2,145 million to shareholders in the fourth quarter of 2022, including $211 million in dividends paid and $1,934 million in share repurchases, through its normal course issuer bid and completion of the $1,500 million substantial issuer bid program in December.
  • Production averaged 441,000 gross oil-equivalent barrels per day, compared to 445,000 gross oil-equivalent barrels per day in the same period of 2021. Adjusting for the sale of XTO Energy Canada, which closed in the third quarter of 2022, production increased by 11,000 gross oil-equivalent barrels per day compared to the same period in 2021.
  • Total gross bitumen production at Kearl averaged 284,000 barrels per day (201,000 barrels Imperial's share), in-line with the asset's previous record quarterly production set in the fourth quarter of 2020 and up from 270,000 barrels per day (191,000 barrels Imperial's share) in the fourth quarter of 2021.
  • Gross bitumen production at Cold Lake averaged 141,000 barrels per day, compared to 142,000 barrels per day in the fourth quarter of 2021.
  • The company's share of gross production from Syncrude averaged 87,000 barrels per day, up from 79,000 barrels per day in the fourth quarter of 2021.
  • Refinery throughput averaged 433,000 barrels per day, up from 416,000 barrels per day in the fourth quarter of 2021. Capacity utilization reached 101 percent, the highest quarterly utilization in company history, up from 97 percent in the fourth quarter of 2021, as the company continues to maximize production to meet Canadian demand.
  • Petroleum product sales were 487,000 barrels per day, compared to 496,000 barrels per day in the fourth quarter of 2021.
  • Chemical net income of $41 million in the quarter, compared to $64 million in the fourth quarter of 2021. Lower income was primarily driven by lower polyethylene margins.
  • Approved $720 million project to construct largest renewable diesel facility in Canada. The project, located at Imperial's Strathcona Refinery near Edmonton, is designed to produce more than one billion litres of renewable diesel annually, primarily from locally sourced feedstocks and could help reduce greenhouse gas emissions by about 3 million metric tonnes per year, as determined in accordance with Canada's Clean Fuel Regulations. Site preparation and initial construction work is underway with renewable diesel production expected to start in early 2025, subject to regulatory approvals.
  • Announcing company-wide goal to achieve net zero (Scope 1 and 2) by 2050 in operated assets, through collaboration with government and industry partners. This builds on Imperial's previously announced net zero goal for operated oil sands as part of the Pathways Alliance initiative, as well as the company's 2030 emission intensity reduction goal for its operated oil sands.
  • The Pathways Alliance entered into a Carbon Sequestration Evaluation Agreement with the Government of Alberta, enabling the Alliance to immediately start a detailed evaluation of its proposed geological storage hub, which would be one of the world's largest carbon capture and storage projects.

____________________
1
non-GAAP financial measure - see attachment VI for definition and reconciliation

Recent business environment

During the COVID-19 pandemic, industry investment to maintain and increase production capacity was restrained to preserve capital, resulting in underinvestment and supply tightness as demand for petroleum and petrochemical products recovered. Across late 2021 and the first half of 2022, this dynamic, along with supply chain constraints, and a continuation of demand recovery, led to a steady increase in oil and natural gas prices and refining margins.

Demand for petroleum and petrochemical products has grown in 2022, with the company's financial results benefiting from stronger prices and margins. Commodity and product prices are expected to remain volatile given the current global economic uncertainty and geopolitical events affecting supply and demand.

The general rate of inflation in Canada and many other countries experienced a brief decline in the initial stage of the COVID-19 pandemic, before starting to increase steadily in 2021 due to imbalanced recoveries between supply and demand in the global economy. The underlying factors include, but are not limited to, supply chain disruptions, shipping bottlenecks, labour constraints, and side effects from monetary and fiscal expansions. Prices for services and materials continue to respond to the fast changing dynamics involving economic growth, overall inflation, commodity markets, and industry activities. The company closely monitors market trends and works to mitigate both operating and capital cost impacts in all price environments through efficient project management practices, and general productivity improvements.

Operating results
Fourth quarter 2022 vs. fourth quarter 2021

Fourth Quarter

millions of Canadian dollars, unless noted

2022

2021

Net income (loss) (U.S. GAAP)

1,727

813

Net income (loss) per common share, assuming dilution (dollars)

2.86

1.18

Upstream
Net income (loss) factor analysis
millions of Canadian dollars

2021

Price

Volumes

Royalty

Other

2022

545

(160)

40

(50)

156

531

Price – Lower bitumen realizations were primarily driven by the widening WTI/WCS spread. Average bitumen realizations decreased by $5.68 per barrel generally in line with WCS, and synthetic crude oil realizations increased by $22.68 per barrel.

Volumes – Higher volumes were the result of improved plant performance at Kearl and lower unplanned downtime at Syncrude, partially offset by the absence of XTO Energy Canada production following the divestment in the third quarter of 2022.

Royalty – Higher royalties primarily driven by improved commodity prices.

Other – Favourable foreign exchange impacts of about $160 million, partially offset by higher operating expenses of about $70 million, resulting primarily from higher energy prices.

Marker prices and average realizations

Fourth Quarter

Canadian dollars, unless noted

2022

2021

West Texas Intermediate (US$ per barrel)

82.58

77.04

Western Canada Select (US$ per barrel)

57.00

62.49

WTI/WCS Spread (US$ per barrel)

25.58

14.55

Bitumen (per barrel)

59.85

65.53

Synthetic crude oil (per barrel)

115.22

92.54

Average foreign exchange rate (US$)

0.74

0.79

Production

Fourth Quarter

thousands of barrels per day

2022

2021

Kearl (Imperial's share)

201

191

Cold Lake

141

142

Syncrude (a)

87

79

Kearl total gross production (thousands of barrels per day)

284

270

(a) In the fourth quarter of 2022, Syncrude gross production included about 2 thousand barrels per day of bitumen and other products (2021 - 3 thousand barrels per day) that were exported to the operator's facilities using an existing interconnect pipeline.

Higher production at Kearl was primarily driven by improved plant performance and the absence of extreme cold weather in December 2021.

Downstream
Net income (loss) factor analysis
millions of Canadian dollars

2021

Margins

Other

2022

250

720

218

1,188

Margins – Higher margins primarily reflect improved market conditions.

Other – Improved volumes of about $60 million, favourable foreign exchange impacts of about $60 million, absence of the prior year unfavourable out-of-period inventory adjustment of $60 million, partially offset by higher operating expenses of about $50 million.

Refinery utilization and petroleum product sales

Fourth Quarter

thousands of barrels per day, unless noted

2022

2021

Refinery throughput

433

416

Refinery capacity utilization (percent)

101

97

Petroleum product sales

487

496

Improved refinery throughput in the fourth quarter of 2022 was primarily driven by economic optimization across the downstream supply chain.

Chemicals
Net income (loss) factor analysis
millions of Canadian dollars

2021

Margins

Other

2022

64

(20)

(3)

41

Corporate and other

Fourth Quarter

millions of Canadian dollars

2022

2021

Net income (loss) (U.S. GAAP)

(33

)

(46

)

Liquidity and capital resources

Fourth Quarter

millions of Canadian dollars

2022

2021

Cash flow generated from (used in):

Operating activities

2,797

1,632

Investing activities

(473

)

(399

)

Financing activities

(2,151

)

(955

)

Increase (decrease) in cash and cash equivalents

173

278

Cash and cash equivalents at period end

3,749

2,153

Cash flow generated from operating activities primarily reflects higher Upstream realizations, improved Downstream margins, and favourable working capital impacts.

Cash flow used in investing activities primarily reflects higher additions to property, plant and equipment.

Cash flow used in financing activities primarily reflects:

Fourth Quarter

millions of Canadian dollars, unless noted

2022

2021

Dividends paid

211

188

Per share dividend paid (dollars)

0.34

0.27

Share repurchases (a)

1,934

761

Number of shares purchased (millions) (a)

27.3

17.5

(a) Share repurchases were made under the company's normal course issuer bid program, and substantial issuer bid that commenced on November 4, 2022 and expired on December 9, 2022. Includes shares purchased from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid, and by way of a proportionate tender under the company's substantial issuer bid.

The company completed share repurchases under its normal course issuer bid on October 21, 2022.

On November 4, 2022, the company commenced a substantial issuer bid pursuant to which it offered to purchase for cancellation up to $1.5 billion of its common shares through a modified Dutch auction and proportionate tender offer. The substantial issuer bid was completed on December 14, 2022, with the company taking up and paying for 20,689,655 common shares at a price of $72.50 per share, for an aggregate purchase of $1.5 billion and 3.4 percent of Imperial's issued and outstanding shares at the close of business on

October 31, 2022. This included 14,399,985 shares purchased from Exxon Mobil Corporation by way of a proportionate tender to maintain its ownership percentage at approximately 69.6 percent.

Full-year 2022 vs. full-year 2021

Twelve Months

millions of Canadian dollars, unless noted

2022

2021

Net income (loss) (U.S. GAAP)

7,340

2,479

Net income (loss) per common share, assuming dilution (dollars)

11.44

3.48

Net income (loss) excluding identified items 1

7,132

2,479

Current year results include favourable identified items 1 of $208 million related to the company's gain on the sale of interests in XTO Energy Canada.

Upstream
Net income (loss) factor analysis
millions of Canadian dollars

2021

Price

Volumes

Royalty

Identified

Items¹

Other

2022

1,395

3,140

(80)

(970)

208

(48)

3,645

Price – Higher realizations were generally in line with increases in marker prices, driven primarily by increased demand. Average bitumen realizations increased by $26.76 per barrel generally in line with WCS, and synthetic crude oil realizations increased by $43.85 per barrel.

Volumes – Lower volumes were primarily the result of downtime at Kearl in the first half of the year, partly offset by higher production at Syncrude and Cold Lake.

Royalty – Higher royalties primarily driven by improved commodity prices.

Identified Items 1 – Current year results include favourable identified items 1 related to the company's gain on the sale of interests in XTO Energy Canada.

Other – Higher operating expenses of about $500 million, primarily from higher energy prices, partially offset by favourable foreign exchange impacts of about $270 million, and higher electricity sales at Cold Lake of about $60 million due to increased prices.

Marker prices and average realizations

Twelve Months

Canadian dollars, unless noted

2022

2021

West Texas Intermediate (US$ per barrel)

94.36

68.05

Western Canada Select (US$ per barrel)

76.28

54.96

WTI/WCS Spread (US$ per barrel)

18.08

13.09

Bitumen (per barrel)

84.67

57.91

Synthetic crude oil (per barrel)

125.46

81.61

Average foreign exchange rate (US$)

0.77

0.80

____________________
1
non-GAAP financial measure - see Attachment VI for definition and reconciliation

Production

Twelve Months

thousands of barrels per day

2022

2021

Kearl (Imperial's share)

172

186

Cold Lake

144

140

Syncrude (a)

77

71

Kearl total gross production (thousands of barrels per day)

242

263

(a) In 2022, Syncrude gross production included about 3 thousand barrels per day of bitumen and other products (2021 - 1 thousand barrels per day) that were exported to the operator's facilities using an existing interconnect pipeline.

Lower production at Kearl was primarily a result of downtime in the first half of the year.

Downstream
Net income (loss) factor analysis
millions of Canadian dollars

2021

Margins

Other

2022

895

2,350

377

3,622

Margins – Higher margins primarily reflect improved market conditions.

Other – Lower turnaround impacts of about $140 million, reflecting the absence of turnaround activities at Strathcona refinery, improved volumes of about $130 million, favourable foreign exchange impacts of about $120 million, absence of the prior year unfavourable out-of-period inventory adjustment of $74 million, partially offset by higher operating expenses of about $190 million.

Refinery utilization and petroleum product sales

Twelve Months

thousands of barrels per day, unless noted

2022

2021

Refinery throughput

418

379

Refinery capacity utilization (percent)

98

89

Petroleum product sales

475

456

Improved refinery throughput in 2022 was primarily driven by increased demand and reduced turnaround activity.

Improved petroleum product sales in 2022 primarily reflects increased demand.

Chemicals
Net income (loss) factor analysis
millions of Canadian dollars

2021

Margins

Other

2022

361

(110)

(47)

204

Margins – Lower margins primarily reflect weaker industry polyethylene margins.

Corporate and other

Twelve Months

millions of Canadian dollars

2022

2021

Net income (loss) (U.S. GAAP)

(131

)

(172

)

Liquidity and capital resources

Twelve Months

millions of Canadian dollars

2022

2021

Cash flow generated from (used in):

Operating activities

10,482

5,476

Investing activities

(618

)

(1,012

)

Financing activities

(8,268

)

(3,082

)

Increase (decrease) in cash and cash equivalents

1,596

1,382

Cash flow generated from operating activities primarily reflects higher Upstream realizations, improved Downstream margins, and favourable working capital impacts.

Cash flow used in investing activities primarily reflects higher additions to property, plant and equipment, which were partially offset by proceeds from the sale of interests in XTO Energy Canada.

Cash flow used in financing activities primarily reflects:

Twelve Months

millions of Canadian dollars, unless noted

2022

2021

Dividends paid

851

706

Per share dividend paid (dollars)

1.29

0.98

Share repurchases (a)

6,395

2,245

Number of shares purchased (millions) (a)

93.9

56.0

(a) Share repurchases were made under the company's normal course issuer bid program, and substantial issuer bids that commenced on May 6, 2022 and November 4, 2022, and expired on June 10, 2022 and December 9, 2022, respectively. Includes shares purchased from Exxon Mobil Corporation concurrent with, but outside of, the normal course issuer bid, and by way of a proportionate tender under the company's substantial issuer bids.

On June 27, 2022, the company announced that it had received final approval from the Toronto Stock Exchange for a new normal course issuer bid to continue its then existing share repurchase program. The program enabled the company to purchase up to a maximum of 31,833,809 common shares during the period

June 29, 2022 to June 28, 2023. The program completed on October 21, 2022 as a result of the company purchasing the maximum allowable number of shares under the program.

On May 6, 2022, the company commenced a substantial issuer bid pursuant to which it offered to purchase for cancellation up to $2.5 billion of its common shares through a modified Dutch auction and proportionate tender offer. The substantial issuer bid was completed on June 15, 2022, with the company taking up and paying for 32,467,532 common shares at a price of $77.00 per share, for an aggregate purchase of $2.5 billion and 4.9 percent of Imperial's issued and outstanding shares at the close of business on May 2, 2022. This included 22,597,379 shares purchased from Exxon Mobil Corporation by way of a proportionate tender to maintain its ownership percentage at approximately 69.6 percent.

On November 4, 2022, the company commenced a substantial issuer bid pursuant to which it offered to purchase for cancellation up to $1.5 billion of its common shares through a modified Dutch auction and proportionate tender offer. The substantial issuer bid was completed on December 14, 2022, with the company taking up and paying for 20,689,655 common shares at a price of $72.50 per share, for an aggregate purchase of $1.5 billion and 3.4 percent of Imperial's issued and outstanding shares at the close of business on

October 31, 2022. This included 14,399,985 shares purchased from Exxon Mobil Corporation by way of a proportionate tender to maintain its ownership percentage at approximately 69.6 percent.

During the third quarter of 2022, the company decreased its long-term debt by $1 billion by partially repaying an existing facility with an affiliated company of ExxonMobil.

Key financial and operating data follow.

Forward-looking statements

Statements of future events or conditions in this report, including projections, targets, expectations, estimates, and business plans are forward-looking statements. Forward-looking statements can be identified by words such as believe, anticipate, intend, propose, plan, goal, seek, project, predict, target, estimate, expect, strategy, outlook, schedule, future, continue, likely, may, should, will and similar references to future periods. Forward-looking statements in this report include, but are not limited to, references to continuing to maximize production to meet Canadian fuel demand; the company's planned renewable diesel complex at Strathcona, including project cost, production estimates, expected sources of feedstock, projections regarding expected reductions in greenhouse gas emissions in comparison to conventional fuels, expected start up in early 2025, and timing of regulatory approvals; the ability for the renewable diesel project to create jobs, help customers reduce emissions and enhance the company's low carbon product offering; continuing to advance lower-carbon solutions supporting the company's journey to net zero; the company's ongoing efforts to provide solutions that lower the greenhouse gas emissions intensity of operations and provide lower life-cycle emissions products to customers; the company-wide goal to achieve net zero emissions (Scope 1 and 2) by 2050 in its operated assets through collaboration with government and industry partners; the company's 2030 emission intensity reduction goal for operated oil sands assets; the impact and ability to apply recovery technologies, carbon capture and storage, and efficiency projects including the use of lower carbon fuels at its operations to achieve lower emissions goals; evaluation of the Pathways Alliance proposed geological storage hub, including the carbon sequestration evaluation agreement with the Government of Alberta; the expectation of commodity and product price volatility; and the continued evolution of inflation and prices for services and materials, its impact on operating and capital cost, and the company's ability to mitigate these costs.

Forward-looking statements are based on the company's current expectations, estimates, projections and assumptions at the time the statements are made. Actual future financial and operating results, including expectations and assumptions concerning demand growth and energy source, supply and mix; production rates, growth and mix across various assets; project plans, timing, costs, technical evaluations and capacities and the company's ability to effectively execute on these plans and operate its assets, including its investment in the renewable diesel complex at Strathcona; the adoption and impact of new facilities or technologies on reductions to GHG emissions intensity, including but not limited to Strathcona renewable diesel, carbon capture and storage including in connection with hydrogen for the renewable diesel project, recovery technologies and efficiency projects and any changes in the scope, terms, or costs of such projects; for renewable diesel, the availability and cost of locally-sourced and grown feedstock and the supply of renewable diesel to British Columbia in connection with its low-carbon fuel legislation; the amount and timing of emissions reductions, including the impact of lower carbon fuels; that any required support from policymakers and other stakeholders for various new technologies such as carbon capture and storage will be provided; performance of third party service providers; receipt of regulatory approvals in a timely manner; refinery utilization; applicable laws and government policies, including with respect to climate change, GHG emissions reductions and low carbon fuels; the ability to offset any ongoing inflationary pressures; capital allocation including shareholder returns, and capital and environmental expenditures; progression of COVID-19 and its impacts on Imperial's ability to operate its assets; and commodity prices, foreign exchange rates and general market conditions could differ materially depending on a number of factors.

These factors include global, regional or local changes in supply and demand for oil, natural gas, and petroleum and petrochemical products and resulting price, differential and margin impacts, including foreign government action with respect to supply levels and prices, the impact of COVID-19 on demand and the occurrence of wars; availability and allocation of capital; the receipt, in a timely manner, of regulatory and third-party approvals, including for new technologies that will help the company meet its lower emissions goals; the results of research programs and new technologies, the ability to bring new technologies to commercial scale on a cost-competitive basis, and the competitiveness of alternative energy and other emission reduction technologies; failure or delay of supportive policy and market development for the adoption of emerging lower emission energy technologies and other technologies that support emissions reductions; political or regulatory events, including changes in law or government policy, environmental regulation including climate change and greenhouse gas regulation, and actions in response to COVID-19; unanticipated technical or operational difficulties; project management and schedules and timely completion of projects; availability and performance of third-party service providers, including in light of restrictions related to COVID-19; environmental risks inherent in oil and gas exploration and production activities; management effectiveness and disaster response preparedness, including business continuity plans in response to COVID-19; operational hazards and risks; cybersecurity incidents, including increased reliance on remote working arrangements; currency exchange rates; general economic conditions; and other factors discussed in Item 1A risk factors and Item 7 management's discussion and analysis of financial condition and results of operations of Imperial Oil Limited's most recent annual report on Form 10-K and subsequent interim reports.

Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to Imperial Oil Limited. Imperial's actual results may differ materially from those expressed or implied by its forward-looking statements and readers are cautioned not to place undue reliance on them. Imperial undertakes no obligation to update any forward-looking statements contained herein, except as required by applicable law.

In this release all dollar amounts are expressed in Canadian dollars unless otherwise stated. This release should be read in conjunction with Imperial's most recent Form 10-K. Note that numbers may not add due to rounding.

The term "project" as used in this release can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.

Imperial's company-wide net-zero goal (Scope 1 and 2) by 2050 is backed by a comprehensive approach centered on detailed emission-reduction roadmaps for its major operated assets. Roadmaps may be updated as needed to reflect technology, policy and other developments, including the development and acquisition of major operated assets. Actions needed to advance the company's 2030 greenhouse gas emissions intensity reductions plans are incorporated into its medium-term business plans, which are updated annually. The reference case for planning beyond 2030 is based on the ExxonMobil's Energy Outlook research and publication, which contains demand and supply projections based on assessment of current trends in technology, government policies, consumer preferences, geopolitics, and economic development. Reflective of the existing global policy environment, the Energy Outlook does not project the degree of required future policy and technology advancement and deployment for the world, or Imperial, to meet net-zero goals by 2050. As future policies and technology advancements emerge, they will be incorporated into the Outlook, and the company's business plans will be updated accordingly.

Individual projects or opportunities may advance based on a number of factors, including availability of supportive policy, technology for cost-effective abatement, company planning process, and alignment with our partners and other stakeholders. The company's plans to reduce emissions are good-faith efforts based on current relevant data and methodology, which could be changed or refined.

Attachment I

Fourth Quarter

Twelve Months

millions of Canadian dollars, unless noted

2022

2021

2022

2021

Net Income (loss) (U.S. GAAP)

Total revenues and other income

14,453

12,312

59,670

37,590

Total expenses

12,174

11,201

50,186

34,307

Income (loss) before income taxes

2,279

1,111

9,484

3,283

Income taxes

552

298

2,144

804

Net income (loss)

1,727

813

7,340

2,479

Net income (loss) per common share (dollars)

2.87

1.18

11.47

3.48

Net income (loss) per common share - assuming dilution (dollars)

2.86

1.18

11.44

3.48

Other Financial Data

Gain (loss) on asset sales, after tax

9

241

43

Total assets at December 31

43,524

40,782

Total debt at December 31

4,155

5,176

Shareholders' equity at December 31

22,413

21,735

Capital employed at December 31

26,593

26,931

Dividends declared on common stock

Total

266

185

932

729

Per common share (dollars)

0.44

0.27

1.46

1.03

Millions of common shares outstanding

At December 31

584.2

678.1

Average - assuming dilution

603.0

689.5

641.5

713.2

Attachment II

Fourth Quarter

Twelve Months

millions of Canadian dollars

2022

2021

2022

2021

Total cash and cash equivalents at period end

3,749

2,153

3,749

2,153

Operating Activities

Net income (loss)

1,727

813

7,340

2,479

Adjustments for non-cash items:

Depreciation and depletion

465

545

1,897

1,977

(Gain) loss on asset sales

(3

)

(10

)

(158

)

(49

)

Deferred income taxes and other

281

75

(77

)

91

Changes in operating assets and liabilities

345

(16

)

1,485

363

All other items - net

(18

)

225

(5

)

615

Cash flows from (used in) operating activities

2,797

1,632

10,482

5,476

Investing Activities

Additions to property, plant and equipment

(492

)

(424

)

(1,526

)

(1,108

)

Proceeds from asset sales

18

24

904

81

Additional investments

(6

)

Loans to equity companies - net

1

1

10

15

Cash flows from (used in) investing activities

(473

)

(399

)

(618

)

(1,012

)

Cash flows from (used in) financing activities

(2,151

)

(955

)

(8,268

)

(3,082

)

Attachment III

Fourth Quarter

Twelve Months

millions of Canadian dollars

2022

2021

2022

2021

Net income (loss) (U.S. GAAP)

Upstream

531

545

3,645

1,395

Downstream

1,188

250

3,622

895

Chemical

41

64

204

361

Corporate and other

(33

)

(46

)

(131

)

(172

)

Net income (loss)

1,727

813

7,340

2,479

Revenues and other income

Upstream

4,332

4,252

19,764

15,831

Downstream

15,919

14,453

64,985

34,786

Chemical

422

449

1,976

1,758

Eliminations / Corporate and other

(6,220

)

(6,842

)

(27,055

)

(14,785

)

Revenues and other income

14,453

12,312

59,670

37,590

Purchases of crude oil and products

Upstream

1,787

1,712

7,971

7,492

Downstream

13,110

12,980

55,569

29,505

Chemical

260

273

1,330

966

Eliminations

(6,264

)

(6,843

)

(27,128

)

(14,789

)

Purchases of crude oil and products

8,893

8,122

37,742

23,174

Production and manufacturing

Upstream

1,438

1,266

5,491

4,661

Downstream

447

406

1,640

1,445

Chemical

80

65

273

210

Eliminations

Production and manufacturing

1,965

1,737

7,404

6,316

Selling and general

Upstream

Downstream

179

156

653

572

Chemical

23

22

85

90

Eliminations / Corporate and other

55

37

144

122

Selling and general

257

215

882

784

Capital and exploration expenditures

Upstream

364

266

1,128

632

Downstream

94

168

295

476

Chemical

5

2

10

8

Corporate and other

25

5

57

24

Capital and exploration expenditures

488

441

1,490

1,140

Exploration expenses charged to Upstream income included above

1

26

5

32

Attachment IV

Operating statistics

Fourth Quarter

Twelve Months

2022

2021

2022

2021

Gross crude oil and natural gas liquids (NGL) production

(thousands of barrels per day)

Kearl

201

191

172

186

Cold Lake

141

142

144

140

Syncrude (a)

87

79

77

71

Conventional

6

11

8

10

Total crude oil production

435

423

401

407

NGLs available for sale

2

1

1

Total crude oil and NGL production

435

425

402

408

Gross natural gas production (millions of cubic feet per day)

37

121

85

120

Gross oil-equivalent production (b)

441

445

416

428

(thousands of oil-equivalent barrels per day)

Net crude oil and NGL production (thousands of barrels per day)

Kearl

184

179

157

178

Cold Lake

105

119

106

114

Syncrude (a)

77

68

63

62

Conventional

6

11

8

9

Total crude oil production

372

377

334

363

NGLs available for sale

1

1

1

Total crude oil and NGL production

372

378

335

364

Net natural gas production (millions of cubic feet per day)

37

112

83

115

Net oil-equivalent production (b)

378

397

349

383

(thousands of oil-equivalent barrels per day)

Kearl blend sales (thousands of barrels per day)

277

272

236

264

Cold Lake blend sales (thousands of barrels per day)

186

189

188

187

NGL sales (thousands of barrels per day) (c)

1

Average realizations (Canadian dollars)

Bitumen (per barrel)

59.85

65.53

84.67

57.91

Synthetic crude oil (per barrel)

115.22

92.54

125.46

81.61

Conventional crude oil (per barrel)

67.91

70.09

97.45

59.84

NGL (per barrel)

62.07

64.92

35.87

Natural gas (per thousand cubic feet)

5.54

4.92

5.69

3.83

Refinery throughput (thousands of barrels per day)

433

416

418

379

Refinery capacity utilization (percent)

101

97

98

89

Petroleum product sales (thousands of barrels per day)

Gasolines

242

240

229

224

Heating, diesel and jet fuels

180

180

176

160

Lube oils and other products

41

44

47

45

Heavy fuel oils

24

32

23

27

Net petroleum products sales

487

496

475

456

Petrochemical sales (thousands of tonnes)

193

194

842

831

(a) Syncrude gross and net production included bitumen and other products that were exported to the operator's facilities using an existing interconnect pipeline.

Gross bitumen and other products production (thousands of barrels per day)

2

3

3

1

Net bitumen and other products production (thousands of barrels per day)

2

2

3

1

(b) Gas converted to oil-equivalent at six million cubic feet per one thousand barrels.

(c) NGL sales round to 0 in 2021.

Attachment V

Net income (loss) per

Net income (loss) (U.S. GAAP)

common share - diluted (a)

millions of Canadian dollars

Canadian dollars

2018

First Quarter

516

0.62

Second Quarter

196

0.24

Third Quarter

749

0.94

Fourth Quarter

853

1.08

Year

2,314

2.86

2019

First Quarter

293

0.38

Second Quarter

1,212

1.57

Third Quarter

424

0.56

Fourth Quarter

271

0.36

Year

2,200

2.88

2020

First Quarter

(188

)

(0.25

)

Second Quarter

(526

)

(0.72

)

Third Quarter

3

Fourth Quarter

(1,146

)

(1.56

)

Year

(1,857

)

(2.53

)

2021

First Quarter

392

0.53

Second Quarter

366

0.50

Third Quarter

908

1.29

Fourth Quarter

813

1.18

Year

2,479

3.48

2022

First Quarter

1,173

1.75

Second Quarter

2,409

3.63

Third Quarter

2,031

3.24

Fourth Quarter

1,727

2.86

Year

7,340

11.44

(a) Computed using the average number of shares outstanding during each period. The sum of the quarters presented may not add to the year total.

Attachment VI

Non-GAAP financial measures and other specified financial measures
Certain measures included in this document are not prescribed by U.S. Generally Accepted Accounting Principles (GAAP). These measures constitute "non-GAAP financial measures" under Securities and Exchange Commission Regulation G, and "specified financial measures" under National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure of the Canadian Securities Administrators.

Reconciliation of these non-GAAP financial measures to the most comparable GAAP measure, and other information required by these regulations, have been provided. Non-GAAP financial measures and specified financial measures are not standardized financial measures under GAAP and do not have a standardized definition. As such, these measures may not be directly comparable to measures presented by other companies, and should not be considered a substitute for GAAP financial measures.

Cash flows from (used in) operating activities excluding working capital
Cash flows from (used in) operating activities excluding working capital is a non-GAAP financial measure that is the total cash flows from operating activities less the changes in operating assets and liabilities in the period. The most directly comparable financial measure that is disclosed in the financial statements is cash flows from (used in) operating activities within the company's Consolidated statement of cash flows. Management believes it is useful for investors to consider these numbers in comparing the underlying performance of the company's business across periods when there are significant period-to-period differences in the amount of changes in working capital. Changes in working capital is equal to "Changes in operating assets and liabilities" as disclosed in the company's Consolidated statement of cash flows and in Attachment II of this document. This measure assesses the cash flows at an operating level, and as such, does not include proceeds from asset sales as defined in Cash flows from operating activities and asset sales in the Frequently Used Terms section of the company's annual Form 10-K.

Reconciliation of cash flows from (used in) operating activities excluding working capital

Fourth Quarter

Twelve Months

millions of Canadian dollars

2022

2021

2022

2021

From Imperial's Consolidated statement of cash flows

Cash flows from (used in) operating activities

2,797

1,632

10,482

5,476

Less changes in working capital

Changes in operating assets and liabilities

345

(16

)

1,485

363

Cash flows from (used in) operating activities excl. working capital

2,452

1,648

8,997

5,113

Free cash flow
Free cash flow is a non-GAAP financial measure that is cash flows from operating activities less additions to property, plant and equipment and equity company investments plus proceeds from asset sales. The most directly comparable financial measure that is disclosed in the financial statements is cash flows from (used in) operating activities within the company's Consolidated statement of cash flows. This measure is used to evaluate cash available for financing activities (including but not limited to dividends and share purchases) after investment in the business.

Reconciliation of free cash flow

Fourth Quarter

Twelve Months

millions of Canadian dollars

2022

2021

2022

2021

From Imperial's Consolidated statement of cash flows

Cash flows from (used in) operating activities

2,797

1,632

10,482

5,476

Cash flows from (used in) investing activities

Additions to property, plant and equipment

(492

)

(424

)

(1,526

)

(1,108

)

Proceeds from asset sales

18

24

904

81

Additional investments

(6

)

Loans to equity companies - net

1

1

10

15

Free cash flow

2,324

1,233

9,864

4,464

Net income (loss) excluding identified items
Net income (loss) excluding identified items is a non-GAAP financial measure that is total net income (loss) excluding individually significant non-operational events with an absolute corporate total earnings impact of at least $100 million in a given quarter. The net income (loss) impact of an identified item for an individual segment in a given quarter may be less than $100 million when the item impacts several segments or several periods. The most directly comparable financial measure that is disclosed in the financial statements is net income (loss) within the company's Consolidated statement of income. Management uses these figures to improve comparability of the underlying business across multiple periods by isolating and removing significant non-operational events from business results. The company believes this view provides investors increased transparency into business results and trends, and provides investors with a view of the business as seen through the eyes of management. Net income (loss) excluding identified items is not meant to be viewed in isolation or as a substitute for net income (loss) as prepared in accordance with U.S. GAAP. All identified items are presented on an after-tax basis.

Reconciliation of net income (loss) excluding identified items

Fourth Quarter

Twelve Months

millions of Canadian dollars

2022

2021

2022

2021

From Imperial's Consolidated statement of income

Net income (loss) (U.S. GAAP)

1,727

813

7,340

2,479

Less identified items included in Net income (loss)

Gain/(loss) on sale of assets

208

Subtotal of identified items

208

Net income (loss) excluding identified items

1,727

813

7,132

2,479

Cash operating costs (cash costs)
Cash operating costs is a non-GAAP financial measure that consists of total expenses, less costs that are non-cash in nature, including, Purchases of crude oil and products, Federal excise taxes and fuel charge, Depreciation and depletion, Non-service pension and postretirement benefit, and Financing. The components of cash operating costs include (1) Production and manufacturing, (2) Selling and general and (3) Exploration, from the company's Consolidated statement of income, and as disclosed in Attachment III of this document. The sum of these income statement lines serve as an indication of cash operating costs and does not reflect the total cash expenditures of the company. The most directly comparable financial measure that is disclosed in the financial statements is total expenses within the company's Consolidated statement of income. This measure is useful for investors to understand the company's efforts to optimize cash through disciplined expense management.

Reconciliation of cash operating costs

Fourth Quarter

Twelve Months

millions of Canadian dollars

2022

2021

2022

2021

From Imperial's Consolidated statement of Income

Total expenses

12,174

11,201

50,186

34,307

Less:

Purchases of crude oil and products

8,893

8,122

37,742

23,174

Federal excise taxes and fuel charge

563

524

2,179

1,928

Depreciation and depletion

465

545

1,897

1,977

Non-service pension and postretirement benefit

4

10

17

42

Financing

26

22

60

54

Total cash operating costs

2,223

1,978

8,291

7,132

Components of cash operating costs

Fourth Quarter

Twelve Months

millions of Canadian dollars

2022

2021

2022

2021

From Imperial's Consolidated statement of Income

Production and manufacturing

1,965

1,737

7,404

6,316

Selling and general

257

215

882

784

Exploration

1

26

5

32

Cash operating costs

2,223

1,978

8,291

7,132

Segment contributions to total cash operating costs

Fourth Quarter

Twelve Months

millions of Canadian dollars

2022

2021

2022

2021

Upstream

1,439

1,292

5,496

4,693

Downstream

626

562

2,293

2,017

Chemicals

103

87

358

300

Corporate / Eliminations

55

37

144

122

Cash operating costs

2,223

1,978

8,291

7,132

Unit cash operating cost (unit cash costs)
Unit cash operating costs is a non-GAAP ratio. Unit cash operating costs (unit cash costs) is calculated by dividing cash operating costs by total gross oil-equivalent production, and is calculated for the Upstream segment, as well as the major Upstream assets. Cash operating costs is a non-GAAP financial measure and is disclosed and reconciled above. This measure is useful for investors to understand the expense management efforts of the company's major assets as a component of the overall Upstream segment. Unit cash operating cost, as used by management, does not directly align with the definition of "Average unit production costs" as set out by the U.S. Securities and Exchange Commission (SEC), and disclosed in the company's SEC Form 10-K.

Components of unit cash operating cost

Fourth Quarter

2022

2021

millions of Canadian dollars

Upstream (a)

Kearl

Cold Lake

Syncrude

Upstream (a)

Kearl

Cold Lake

Syncrude

Production and manufacturing

1,438

673

327

393

1,266

561

315

333

Selling and general

Exploration

1

26

Cash operating costs

1,439

673

327

393

1,292

561

315

333

Gross oil-equivalent production

441

201

141

87

445

191

142

79

(thousands of barrels per day)

Unit cash operating cost ($/oeb)

35.47

36.39

25.21

49.10

31.56

31.93

24.11

45.82

USD converted at the quarterly average forex

26.25

26.93

18.66

36.33

24.93

25.22

19.05

36.20

2022 US$0.74; 2021 US$0.79

Twelve Months

2022

2021

millions of Canadian dollars

Upstream (a)

Kearl

Cold Lake

Syncrude

Upstream (a)

Kearl

Cold Lake

Syncrude

Production and manufacturing

5,491

2,353

1,344

1,563

4,661

1,902

1,117

1,388

Selling and general

Exploration

5

32

Cash operating costs

5,496

2,353

1,344

1,563

4,693

1,902

1,117

1,388

Gross oil-equivalent production

416

172

144

77

428

186

140

71

(thousands of barrels per day)

Unit cash operating cost ($/oeb)

36.20

37.48

25.57

55.61

30.04

28.02

21.86

53.56

USD converted at the YTD average forex

27.87

28.86

19.69

42.82

24.03

22.42

17.49

42.85

2022 US$0.77; 2021 US$0.80

(a) Upstream includes Imperial's share of Kearl, Cold Lake, Syncrude and other.

After more than a century, Imperial continues to be an industry leader in applying technology and innovation to responsibly develop Canada's energy resources. As Canada's largest petroleum refiner, a major producer of crude oil, a key petrochemical producer and a leading fuels marketer from coast to coast, our company remains committed to high standards across all areas of our business.

Source: Imperial

Investor relations
(587) 476-4743

Media relations
(587) 476-7010

News Provided by Business Wire via QuoteMedia

Keep reading...Show less
Blue Star Helium (ASX:BNL,OTCQB:BSNLF)

Blue Star Helium Activities Report Quarter Ended 31 December 2022

Blue Star Helium Limited (ASX: BNL) (Blue Star or the Company) is pleased to provide an update on activities undertaken during the quarter ended 31 December 2022.

Keep reading...Show less

Latest Press Releases

Related News

×