Energy

  • Helps reduce provincial greenhouse gas emissions by approximately 112,000 tonnes annually
  • Supplies up to 80 percent of refinery electricity needs, reducing energy draw from the Alberta grid

Imperial (TSE: IMO, NYSE American: IMO) has started operation of its newly constructed cogeneration unit at its Strathcona refinery near Edmonton, Alberta, increasing energy efficiency at the facility and helping reduce provincial greenhouse gas emissions.

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(Photo: Business Wire)

(Photo: Business Wire)

"The completion of this project is an important milestone for Imperial," said Brad Corson, Imperial chairman, president and chief executive officer. "It highlights our commitment to investing in projects that support sustainability and contribute to reducing emissions. An investment in cogeneration is an investment in the future."

"This is great news for our province," said Alberta Premier Jason Kenney. "Our day-to-day lives are still dependent on our natural resources to provide us with the energy we need to thrive. That's why I'm so pleased to see made-in-Alberta innovations like this, which help reduce our emissions as we utilize the energy we need."

In a refinery, cogeneration technology captures heat generated from the production of electricity that would normally go to waste and uses it to produce steam for use in refining operations. Electricity produced by the Strathcona cogeneration unit meets approximately 75 to 80 percent of the refinery's needs, significantly decreasing energy consumption from the Alberta grid. The unit produces approximately 41 megawatts of power and reduces province-wide greenhouse gas emissions by approximately 112,000 tonnes per year, which is the equivalent to taking nearly 24,000 vehicles off the road annually.

"This project has been a great example of team work, particularly navigating some of the unique challenges that come with working in a pandemic environment over the last seven months. I'm proud the team has delivered the project on time and on budget, all while keeping everyone safe and healthy," said Dave Oldreive, Strathcona refinery manager. "Strathcona continues to be one of the safest, most reliable and competitive refineries in North America and now with our cogeneration capacity, one of the most energy efficient."

The Strathcona cogeneration unit is now Imperial's third in Alberta, with cogeneration technology used at its Kearl and Cold Lake oil sands facilities. The positive impact those facilities have on the province-wide greenhouse gas emissions varies depending on annual facility energy consumption. In 2019, those facilities contributed to a reduction in greenhouse gas emissions of approximately 860,000 tonnes, similar to having nearly 186,000 fewer passenger vehicles on the road each year. Imperial also uses cogeneration at its Ontario refineries in Sarnia and Nanticoke.

The investment at Strathcona refinery underscores its strategic importance to Imperial's operations. As the largest refinery in western Canada, Strathcona provides valuable fuel products that keep our communities and the economy moving.

Cautionary statement: Statements of future events or conditions in this release, including projections, targets, expectations, estimates, and business plans are forward-looking statements. Forward-looking statements in this release include, but are not limited to, references to the impact of the cogeneration facility at Strathcona, including on energy efficiency, electricity production and contribution to refinery electricity needs, and on expected reduction in provincial greenhouse gas emissions; the company's commitment to investing in projects that support sustainability and contribute to reducing emissions; and Strathcona's position amongst other refineries in North America.

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 refinery utilization, energy use and greenhouse gas emissions; demand growth and energy source, supply and demand mix; general market conditions; commodity prices; the company's ability to effectively execute on its project plans and operate the refinery and cogeneration unit; progression of COVID-19 and its impacts on Imperial's ability to operate its assets, including the possible shutdown of facilities due to COVID-19 outbreaks; the company's ability to effectively execute on its business continuity plans; the adoption and impact of new facilities or technologies, including on reductions to greenhouse gas emissions intensity; applicable laws and government policies and actions, including climate change and restrictions in response to COVID-19; and capital and environmental expenditures 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 products and resulting price, differential and margin impacts; environmental regulation, including climate change and greenhouse gas regulation and changes to such regulation; general economic conditions; political or regulatory events, including changes in law or government policy such as actions in response to COVID-19; availability and performance of third-party service providers; unanticipated technical or operational difficulties; management effectiveness and disaster response preparedness, including business continuity plans in response to COVID-19; unexpected technological developments; operational hazards and risks; cybersecurity incidents; 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's most recent annual report on Form 10-K and subsequent interim reports of Form 10-Q.

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.

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

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Imperial declares third quarter 2022 dividend

Imperial Oil Limited (TSE: IMO, NYSE American: IMO) today declared a quarterly dividend of 34 cents per share on the outstanding common shares of the company, payable on October 1, 2022, to shareholders of record at the close of business on September 2, 2022.

This third quarter 2022 dividend compares with the second quarter 2022 dividend of 34 cents per share.

News Provided by Business Wire via QuoteMedia

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Imperial announces second quarter 2022 financial and operating results

  • Quarterly net income of $2,409 million and cash flow from operating activities of $2,682 million
  • Upstream production of 413,000 gross oil equivalent barrels per day, highest second quarter in over 30 years
  • Sustained strong Downstream operating performance with quarterly refinery capacity utilization of 96%, fourth consecutive quarter above 90%
  • Returned over $2.7 billion to shareholders in the quarter through dividends and successful completion of the company's $2.5 billion substantial issuer bid program
  • Renewed annual normal course issuer bid to purchase up to an additional 5% of outstanding shares, with plans to accelerate completion of the program by the end of October 2022
  • Declared third quarter dividend of 34 cents per share
  • Announced the proposed sale of interests in XTO Energy Canada for a total cash consideration of $1.9 billion ($940 million Imperial's share), further focusing the company's Upstream portfolio on long-life, low-decline oil sands assets
  • Released annual Advancing Climate Solutions report, outlining the company's progress and ongoing commitment to lowering greenhouse gas emissions

Imperial reported estimated net income in the second quarter of $2,409 million, up from $1,173 million in the first quarter of 2022, driven by continued strong market conditions and improved operating performance. Cash flow from operating activities was $2,682 million up from $1,914 million in the first quarter of 2022.

"Our second quarter results are underpinned by an ongoing focus on safe and reliable operations, allowing us to capture significant value from our fully integrated assets amid continued commodity price strength, while also ensuring a stable supply of energy products to support growing demand," said Brad Corson, chairman, president and chief executive officer.

Upstream production in the second quarter averaged 413,000 gross oil-equivalent barrels per day, the highest second quarter production in over 30 years. Kearl quarterly total gross production averaged 224,000 barrels per day, reflecting a full recovery in operating performance from the impacts of extreme cold weather experienced in the first quarter as well as the completion of its annual planned turnaround. Cold Lake quarterly production averaged 144,000 gross barrels per day, continuing to deliver strong operating performance while also completing a planned turnaround.

Following the impacts of extreme cold weather on Kearl operations in the first quarter of 2022 and the completion of its annual turnaround in the second quarter, Kearl production is expected to exceed 280,000 total gross barrels per day over the second half of the year. Consistent with this, Imperial is updating its annual full-year production guidance at Kearl to be around 245,000 total gross barrels per day.

"I am very pleased to see Kearl's production performance recover to normal levels in the second quarter with the extreme cold weather related impacts now firmly behind us," said Corson. "As I look ahead, Kearl's accelerated journey to grow annual production to 280,000 total gross barrels per day remains on track and will create significant value for our shareholders."

In the Downstream, quarterly refining throughput averaged 412,000 barrels per day with capacity utilization of 96%, the fourth consecutive quarter above 90%, as the company focuses on maximizing production to meet increased Canadian demand. Petroleum product sales in the quarter increased to an average of 480,000 barrels per day with Canadian fuel demand nearing pre-pandemic levels.

The company distributed over $2.7 billion to shareholders in the quarter through dividend payments and the successful completion of the company's substantial issuer bid. In June, Imperial announced the renewal of its annual normal course issuer bid (NCIB) program, allowing the repurchase of up to five percent of its outstanding shares over a 12-month period ending on June 28, 2023. Imperial plans to accelerate its share purchases under the NCIB program and anticipates repurchasing all remaining allowable shares by the end of October 2022. The company also declared a third quarter dividend of 34 cents per share.

"In the first half of this year, Imperial has generated significant cash flow that has enabled record distributions to our shareholders and also increased the royalty and tax payments we make to federal and provincial governments that support the communities in which we operate," said Corson. "The steps we have taken to further focus our portfolio, reduce costs and efficiently grow production position us to continue returning substantial cash to shareholders going forward."

In June, Imperial announced together with ExxonMobil Canada that it had entered into an agreement with Whitecap Resources Inc. for the sale of XTO Energy Canada, which is jointly owned by Imperial and ExxonMobil Canada, for a total cash consideration of $1.9 billion ($940 million Imperial's share). The sale is expected to close before the end of the third quarter 2022, subject to regulatory approvals. The divestment of XTO Energy Canada further delivers on Imperial's strategy to maximize shareholder value by focusing the company's Upstream resources on long-life, low-decline oil-sands assets.

During the quarter, Imperial released its annual Advancing Climate Solutions report outlining the company's progress and ongoing commitment to lowering greenhouse gas emissions. Imperial is committed to providing energy solutions in a way that helps protect people, the environment and the communities where it operates, including mitigating the risks of climate change.

"Imperial is aggressively pursuing attractive opportunities that reduce emissions, increase production and support increased profitability," said Corson. "We continue to progress a broad range of technology initiatives, including through our support of the Pathways Alliance and its application for carbon capture storage space, our recently announced plans for a lithium-extraction pilot in Alberta with potential use in battery-grade products and a hydrogen production feasibility study in Nanticoke that could help reduce the region's greenhouse gas emissions."

Second quarter highlights

  • Net income of $2,409 million or $3.63 per share on a diluted basis, up from $366 million or $0.50 per share in the second quarter of 2021.
  • Cash flows from operating activities of $2,682 million, up from $852 million in the same period of 2021. Cash flows from operating activities excluding working capital¹ of $2,783 million, up from $893 million in the same period of 2021.
  • Capital and exploration expenditures totalled $314 million, up from $259 million in the second quarter of 2021.
  • The company returned $2,728 million to shareholders in the second quarter of 2022, including $2,500 million from the company's substantial issuer bid program completed in June and $228 million in dividends paid.
  • Renewed share repurchase program, enabling the purchase of up to five percent of common shares outstanding, a maximum of 31,833,809 shares, during the 12-month period ending June 28, 2023. Consistent with the company's commitment to returning surplus cash to shareholders, Imperial plans to accelerate its share purchases under the NCIB program and anticipates repurchasing all remaining allowable shares by the end of October 2022. Purchase plans may be modified at any time without prior notice.
  • Production averaged 413,000 gross oil-equivalent barrels per day, highest second quarter in over 30 years, up from 401,000 barrels per day in the same period of 2021.
  • Total gross bitumen production at Kearl averaged 224,000 barrels per day (159,000 barrels Imperial's share), compared to 255,000 barrels per day (181,000 barrels Imperial's share) in the second quarter of 2021, primarily driven by additional downtime. Following the impacts of extreme cold weather on Kearl operations in the first quarter of 2022 and the completion of its annual turnaround in the second quarter, Kearl production is expected to exceed 280,000 total gross barrels per day over the second half of the year. Consistent with this, Imperial is updating its annual full-year production guidance at Kearl to be around 245,000 total gross barrels per day.
  • Gross bitumen production at Cold Lake averaged 144,000 barrels per day, up from 142,000 barrels per day in the second quarter of 2021, continuing to outperform the company's annual production guidance of 135,000 to 140,000 gross barrels per day.
  • The company's share of gross production from Syncrude averaged 81,000 barrels per day, up from 47,000 barrels per day in the second quarter of 2021, primarily driven by the timing of planned turnaround activities.
  • Refinery throughput averaged 412,000 barrels per day, up from 332,000 barrels per day in the second quarter of 2021. Capacity utilization reached 96 percent, up from 78 percent in the second quarter of 2021, as the company continues to maximize production to meet increased Canadian demand. Second quarter utilization represents the fourth consecutive quarter above 90%.
  • Petroleum product sales were 480,000 barrels per day, up from 429,000 barrels per day in the second quarter of 2021. Increased sales were driven by rising demand following further easing of Canadian pandemic restrictions.
  • Chemical net income of $53 million in the quarter, compared to $109 million in the second quarter of 2021. Lower income was primarily driven by lower polyethylene margins.
  • Announced, together with ExxonMobil Canada, the proposed sale of XTO Energy Canada to Whitecap Resources for total cash consideration of $1.9 billion ($940 million Imperial's share). The sale is expected to close before the end of the third quarter 2022, subject to regulatory approvals. The divestment of XTO Energy Canada further delivers on Imperial's strategy to maximize shareholder value by focusing Upstream resources on long-life, low-decline oil-sands assets.
  • Released annual Advancing Climate Solutions report outlining the company's progress and ongoing commitment to lowering GHG emissions. Imperial is committed to providing energy solutions in a way that helps protect people, the environment and the communities where it operates, including mitigating the risks of climate change.
  • Announced strategic collaboration with E3 Lithium to advance a lithium extraction pilot in Alberta. The project will draw lithium from under Imperial's historic Leduc oil field using E3 Lithium's proprietary technology with potential for commercial development of battery-grade products. As part of the agreement, Imperial may provide technical and development support in areas such as water and reservoir management.
  • Signed agreement with Atura Power to study the potential for hydrogen production in Nanticoke, Ontario. The study will focus on the commercial and technical aspects of developing a regional hydrogen facility that could help reduce greenhouse gas emissions in the area's industrial sector in support of Canada's net-zero ambitions.

Current 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. In the first half of 2022, tightness in the oil and natural gas markets was further exacerbated by Russia's invasion of Ukraine and subsequent sanctions imposed upon business and other activities in Russia. The price of crude oil and certain regional natural gas indicators increased to levels not seen for several years. By the end of the second quarter, high prices had led to a tempering of demand for some products. Commodity and product prices are expected to remain volatile given the current global economic and geopolitical uncertainty affecting supply and demand.

Operating results

Second quarter 2022 vs. second quarter 2021

Second Quarter

millions of Canadian dollars, unless noted

2022

2021

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

2,409

366

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

3.63

0.50

Upstream

Net income (loss) factor analysis

millions of Canadian dollars

2021

Price

Volumes

Royalty

Other

2022

247

1,470

150

(430)

(91)

1,346

Price – Higher realizations were generally in line with increases in marker prices, driven primarily by increased demand and supply chain constraints. Average bitumen realizations increased by $55.01 per barrel generally in line with WCS, and synthetic crude oil realizations increased by $63.87 per barrel generally in line with WTI.

Volumes – Higher volumes primarily driven by the timing of turnaround activities at Syncrude, partially offset by downtime at Kearl.

Royalty – Higher royalties primarily driven by improved commodity prices.

Other – Includes higher operating expenses of about $180 million, primarily higher energy prices, partially offset by favourable foreign exchange impacts of about $60 million.

Marker prices and average realizations

Second Quarter

Canadian dollars, unless noted

2022

2021

West Texas Intermediate (US$ per barrel)

108.52

66.17

Western Canada Select (US$ per barrel)

95.80

54.64

WTI/WCS Spread (US$ per barrel)

12.72

11.53

Bitumen (per barrel)

112.27

57.26

Synthetic crude oil (per barrel)

144.67

80.80

Average foreign exchange rate (US$)

0.78

0.81

Production

Second Quarter

thousands of barrels per day

2022

2021

Kearl (Imperial's share)

159

181

Cold Lake

144

142

Syncrude (a)

81

47

Kearl total gross production (thousands of barrels per day)

224

255

(a) In the second quarter of 2022, Syncrude gross production included about 2 thousand barrels per day of bitumen (2021 - rounded to 0 thousand barrels per day) that was exported to the operator's facilities using an existing interconnect pipeline.

Lower production at Kearl was primarily a result of downtime.

Higher production at Syncrude was primarily a result of the timing of turnaround activities.

Downstream

Net income (loss) factor analysis

millions of Canadian dollars

2021

Margins

Other

2022

60

910

63

1,033

Margins – Higher margins primarily reflect improved market conditions.

Other – Includes lower turnaround impacts of about $130 million, reflecting the absence of turnaround activities at Strathcona refinery, partially offset by higher operating expenses of about $70 million, primarily higher energy costs.

Refinery utilization and petroleum product sales

Second Quarter

thousands of barrels per day, unless noted

2022

2021

Refinery throughput

412

332

Refinery capacity utilization (percent)

96

78

Petroleum product sales

480

429

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

Improved petroleum product sales in the second quarter of 2022 were mainly due to increased demand.

Chemicals

Net income (loss) factor analysis

millions of Canadian dollars

2021

Margins

Other

2022

109

(30)

(26)

53

Corporate and other

Second Quarter

millions of Canadian dollars

2022

2021

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

(23)

(50)

Liquidity and capital resources

Second Quarter

millions of Canadian dollars

2022

2021

Cash flow generated from (used in):

Operating activities

2,682

852

Investing activities

(230)

(207)

Financing activities

(2,734)

(1,336)

Increase (decrease) in cash and cash equivalents

(282)

(691)

Cash and cash equivalents at period end

2,867

776

Cash flow generated from operating activities primarily reflects higher Upstream realizations and improved Downstream margins.

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

Cash flow used in financing activities primarily reflects:

Second Quarter

millions of Canadian dollars, unless noted

2022

2021

Dividends paid

228

161

Per share dividend paid (dollars)

0.34

0.22

Share repurchases (a)

2,500

1,171

Number of shares purchased (millions) (a)

32.5

29.5

(a) Share repurchases were made under the company's substantial issuer bid that commenced on May 6, 2022 and expired on June 10, 2022. Includes shares purchased from Exxon Mobil Corporation by way of a proportionate tender to maintain its ownership percentage at approximately 69.6 percent.

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 as 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 June 27, 2022, the company announced by news release that it had received final approval from the Toronto Stock Exchange for a new normal course issuer bid and will continue its existing share purchase program. The program enables the company to purchase up to a maximum of 31,833,809 common shares during the period June 29, 2022 to June 28, 2023. This maximum includes shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid. As in the past, Exxon Mobil Corporation has advised the company that it intends to participate to maintain its ownership percentage at approximately 69.6 percent. The program will end should the company purchase the maximum allowable number of shares, or on June 28, 2023. Imperial plans to accelerate its share purchases under the normal course issuer bid program, and anticipates repurchasing all remaining allowable shares by the end of October 2022. Purchase plans may be modified at any time without prior notice.

Six months 2022 vs. six months 2021

Six Months

millions of Canadian dollars, unless noted

2022

2021

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

3,582

758

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

5.36

1.04

Upstream

Net income (loss) factor analysis
millions of Canadian dollars

2021

Price

Volumes

Royalty

Other

2022

326

2,690

(100)

(710)

(78)

2,128

Price – Higher realizations were generally in line with increases in marker prices, driven primarily by increased demand and supply chain constraints. Average bitumen realizations increased by $49.08 per barrel generally in line with WCS, and synthetic crude oil realizations increased by $58.99 per barrel generally in line with WTI.

Volumes – Lower volumes primarily driven by downtime at Kearl, partially offset by the timing of turnaround activities at Syncrude.

Royalty – Higher royalties primarily driven by improved commodity prices.

Other – Includes higher operating expenses of about $220 million, primarily higher energy prices, partially offset by favourable foreign exchange impacts of about $60 million.

Average realizations and marker prices

Six Months

Canadian dollars, unless noted

2022

2021

West Texas Intermediate (US$ per barrel)

101.77

62.22

Western Canada Select (US$ per barrel)

88.13

50.14

WTI/WCS Spread (US$ per barrel)

13.64

12.08

Bitumen (per barrel)

101.53

52.45

Synthetic crude oil (per barrel)

131.41

72.42

Average foreign exchange rate (US$)

0.79

0.80

Production

Six Months

thousands of barrels per day

2022

2021

Kearl (Imperial's share)

146

180

Cold Lake

142

141

Syncrude (a)

79

63

Kearl total gross production (thousands of barrels per day)

205

253

(a) In 2022, Syncrude gross production included about 2 thousand barrels per day of bitumen (2021 - rounded to 0 thousand barrels per day) that was exported to the operator's facilities using an existing interconnect pipeline.

Lower production at Kearl was primarily a result of downtime.

Higher production at Syncrude was primarily a result of the timing of turnaround activities.

Downstream

Net income (loss) factor analysis
millions of Canadian dollars

2021

Margins

Other

2022

352

960

110

1,422

Margins – Higher margins primarily reflect improved market conditions.

Other – Includes lower turnaround impacts of about $130 million, reflecting the absence of turnaround activities at Strathcona refinery, partially offset by higher operating expenses of about $90 million, primarily higher energy costs.

Refinery utilization and petroleum product sales

Six Months

thousands of barrels per day, unless noted

2022

2021

Refinery throughput

406

348

Refinery capacity utilization (percent)

95

81

Petroleum product sales

464

421

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

Improved petroleum product sales in 2022 primarily reflects increased demand.

Chemicals

Net income (loss) factor analysis

millions of Canadian dollars

2021

Margins

Other

2022

176

(40)

(27)

109

Corporate and other

Six Months

millions of Canadian dollars

2022

2021

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

(77)

(96)

Liquidity and capital resources

Six Months

millions of Canadian dollars

2022

2021

Cash flow generated from (used in):

Operating activities

4,596

1,897

Investing activities

(509)

(354)

Financing activities

(3,373)

(1,538)

Increase (decrease) in cash and cash equivalents

714

5

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:

Six Months

millions of Canadian dollars, unless noted

2022

2021

Dividends paid

413

323

Per share dividend paid (dollars)

0.61

0.44

Share repurchases (a)

2,949

1,171

Number of shares purchased (millions) (a)

41.4

29.5

(a) Share repurchases were made under the company's normal course issuer bid program and substantial issuer bid that commenced on May 6, 2022 and expired on June 10, 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.

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 purchases under the normal course issuer bid, including plans to accelerate completion by the end of October 2022; the sale of XTO Energy Canada and expected closing timing; the strategy to maximize shareholder value by focusing on long-life, low-decline oil-sands assets; Kearl production expectations for the second half of 2022, updated 2022 full-year production guidance and remaining on track to grow to 280,000 total gross barrels per day; the ability to continue returning substantial cash to shareholders; continuing to maximize production to meet increased Canadian fuel demand; the on-going commitment to lowering greenhouse gas emissions and mitigating the risks of climate change, including the impact of various opportunities to reduce emissions, increase production and support increased profitability; the lithium extraction pilot project and support to be provided by Imperial; the study for potential hydrogen production in Nanticoke; and the expectation of commodity and product price volatility.

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; for shareholder returns, assumptions such as cash flow forecasts, financing sources and capital structure, regulatory approvals, participation of the company's majority shareholder and the results of periodic and ongoing evaluation of alternate uses of capital; the adoption and impact of new facilities or technologies on reductions to GHG emissions intensity, including but not limited to support for and advancement of carbon capture and storage and the results from the lithium pilot project, and any changes in the scope, terms, or costs of such projects; that regulatory approvals related to the sale of XTO Energy Canada will be received in a timely manner and the sale will close as anticipated; the amount and timing of emissions reductions; support from policymakers and other stakeholders for various new technologies such as carbon capture and storage; applicable laws and government policies, including with respect to climate change and GHG emissions reductions; receipt of regulatory approvals; 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; 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; lack of required support from governments and policymakers for adoption of new technologies for emissions reductions; 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; 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; 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.

Attachment I

Second Quarter

Six Months

millions of Canadian dollars, unless noted

2022

2021

2022

2021

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

Total revenues and other income

17,307

8,047

29,993

15,045

Total expenses

14,141

7,576

25,293

14,062

Income (loss) before income taxes

3,166

471

4,700

983

Income taxes

757

105

1,118

225

Net income (loss)

2,409

366

3,582

758

Net income (loss) per common share (dollars)

3.63

0.51

5.37

1.04

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

3.63

0.50

5.36

1.04

Other Financial Data

Gain (loss) on asset sales, after tax

3

22

19

24

Total assets at June 30

44,892

38,939

Total debt at June 30

5,166

5,262

Shareholders' equity at June 30

21,979

20,769

Capital employed at June 30

27,162

26,055

Dividends declared on common stock

Total

227

195

455

356

Per common share (dollars)

0.34

0.27

0.68

0.49

Millions of common shares outstanding

At June 30

636.7

704.6

Average - assuming dilution

664.4

725.8

668.1

730.8

Attachment II

Second Quarter

Six Months

millions of Canadian dollars

2022

2021

2022

2021

Total cash and cash equivalents at period end

2,867

776

2,867

776

Operating Activities

Net income (loss)

2,409

366

3,582

758

Adjustments for non-cash items:

Depreciation and depletion

451

450

877

944

(Gain) loss on asset sales

(4)

(24)

(24)

(27)

Deferred income taxes and other

(149)

76

(480)

136

Changes in operating assets and liabilities

(101)

(41)

594

(64)

All other items - net

76

25

47

150

Cash flows from (used in) operating activities

2,682

852

4,596

1,897

Investing Activities

Additions to property, plant and equipment

(333)

(241)

(637)

(408)

Proceeds from asset sales

102

35

126

42

Loans to equity companies - net

1

(1)

2

12

Cash flows from (used in) investing activities

(230)

(207)

(509)

(354)

Cash flows from (used in) financing activities

(2,734)

(1,336)

(3,373)

(1,538)

Attachment III

Second Quarter

Six Months

millions of Canadian dollars

2022

2021

2022

2021

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

Upstream

1,346

247

2,128

326

Downstream

1,033

60

1,422

352

Chemical

53

109

109

176

Corporate and other

(23)

(50)

(77)

(96)

Net income (loss)

2,409

366

3,582

758

Revenues and other income

Upstream

5,949

3,934

10,483

7,427

Downstream

18,785

5,831

32,830

11,136

Chemical

563

456

1,034

832

Eliminations / Corporate and other

(7,990)

(2,174)

(14,354)

(4,350)

Revenues and other income

17,307

8,047

29,993

15,045

Purchases of crude oil and products

Upstream

2,357

2,044

4,247

3,878

Downstream

16,261

4,760

28,773

8,780

Chemical

401

240

716

449

Eliminations

(7,998)

(2,177)

(14,365)

(4,353)

Purchases of crude oil and products

11,021

4,867

19,371

8,754

Production and manufacturing

Upstream

1,423

1,166

2,672

2,275

Downstream

418

357

774

683

Chemical

67

46

121

96

Eliminations

-

-

-

-

Production and manufacturing

1,908

1,569

3,567

3,054

Selling and general

Upstream

-

-

-

-

Downstream

153

142

300

275

Chemical

22

22

45

47

Eliminations / Corporate and other

16

36

71

67

Selling and general

191

200

416

389

Capital and exploration expenditures

Upstream

233

130

455

215

Downstream

69

120

137

188

Chemical

2

2

3

4

Corporate and other

10

7

15

15

Capital and exploration expenditures

314

259

610

422

Exploration expenses charged to Upstream income included above

1

2

3

4

Attachment IV

Operating statistics

Second Quarter

Six Months

2022

2021

2022

2021

Gross crude oil and natural gas liquids (NGL) production

(thousands of barrels per day)

Kearl

159

181

146

180

Cold Lake

144

142

142

141

Syncrude (a)

81

47

79

63

Conventional

11

11

11

10

Total crude oil production

395

381

378

394

NGLs available for sale

2

1

1

2

Total crude oil and NGL production

397

382

379

396

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

98

116

105

123

Gross oil-equivalent production (b)

413

401

397

417

(thousands of oil-equivalent barrels per day)

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

Kearl

145

174

134

174

Cold Lake

101

111

104

112

Syncrude (a)

63

38

61

56

Conventional

10

11

11

10

Total crude oil production

319

334

310

352

NGLs available for sale

1

2

1

2

Total crude oil and NGL production

320

336

311

354

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

95

110

98

119

Net oil-equivalent production (b)

336

354

327

374

(thousands of oil-equivalent barrels per day)

Kearl blend sales (thousands of barrels per day)

221

252

205

250

Cold Lake blend sales (thousands of barrels per day)

191

201

189

191

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

2

-

1

-

Average realizations (Canadian dollars)

Bitumen (per barrel)

112.27

57.26

101.53

52.45

Synthetic crude oil (per barrel)

144.67

80.80

131.41

72.42

Conventional crude oil (per barrel)

115.80

58.44

106.99

54.16

NGL (per barrel)

69.19

30.07

66.98

30.97

Natural gas (per thousand cubic feet)

6.81

3.45

5.98

3.34

Refinery throughput (thousands of barrels per day)

412

332

406

348

Refinery capacity utilization (percent)

96

78

95

81

Petroleum product sales (thousands of barrels per day)

Gasolines

229

209

219

203

Heating, diesel and jet fuels

179

147

176

150

Lube oils and other products

49

45

49

44

Heavy fuel oils

23

28

20

24

Net petroleum products sales

480

429

464

421

Petrochemical sales (thousands of tonnes)

222

222

432

433

(a)

Syncrude gross and net production included bitumen that was exported to the operator's facilities using an existing interconnect pipeline.

Syncrude gross bitumen production (thousands of barrels per day)

2

-

2

-

Syncrude net bitumen production (thousands of barrels per day)

2

-

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

Year

3,582

5.36

(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

Second Quarter

Six Months

millions of Canadian dollars

2022

2021

2022

2021

From Imperial's Consolidated statement of cash flows

Cash flows from (used in) operating activities

2,682

852

4,596

1,897

Less changes in working capital

Changes in operating assets and liabilities

(101)

(41)

594

(64)

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

2,783

893

4,002

1,961

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

Second Quarter

Six Months

millions of Canadian dollars

2022

2021

2022

2021

From Imperial's Consolidated statement of cash flows

Cash flows from (used in) operating activities

2,682

852

4,596

1,897

Cash flows from (used in) investing activities

Additions to property, plant and equipment

(333)

(241)

(637)

(408)

Proceeds from asset sales

102

35

126

42

Loans to equity companies - net

1

(1)

2

12

Free cash flow

2,452

645

4,087

1,543

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
There were no identified items in the second quarter or year-to-date 2022 and 2021.

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

Second Quarter

Six Months

millions of Canadian dollars

2022

2021

2022

2021

From Imperial's Consolidated statement of Income

Total expenses

14,141

7,576

25,293

14,062

Less:

Purchases of crude oil and products

11,021

4,867

19,371

8,754

Federal excise taxes and fuel charge

553

465

1,032

869

Depreciation and depletion

451

450

877

944

Non-service pension and postretirement benefit

5

10

9

21

Financing

11

13

18

27

Total cash operating costs

2,100

1,771

3,986

3,447

Components of cash operating costs

Second Quarter

Six Months

millions of Canadian dollars

2022

2021

2022

2021

From Imperial's Consolidated statement of Income

Production and manufacturing

1,908

1,569

3,567

3,054

Selling and general

191

200

416

389

Exploration

1

2

3

4

Cash operating costs

2,100

1,771

3,986

3,447

Segment contributions to total cash operating costs

Second Quarter

Six Months

millions of Canadian dollars

2022

2021

2022

2021

Upstream

1,424

1,168

2,675

2,279

Downstream

571

499

1,074

958

Chemicals

89

68

166

143

Corporate/Eliminations

16

36

71

67

Cash operating costs

2,100

1,771

3,986

3,447

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

Second Quarter

2022

2021

millions of Canadian dollars

Upstream
(a)

Kearl

Cold
Lake

Syncrude

Upstream
(a)

Kearl

Cold
Lake

Syncrude

Production and manufacturing

1,423

578

396

380

1,166

461

254

391

Selling and general

-

-

-

-

-

-

-

-

Exploration

1

-

-

-

2

-

-

-

Cash operating costs

1,424

578

396

380

1,168

461

254

391

Gross oil-equivalent production

413

159

144

81

401

181

142

47

(thousands of barrels per day)

Unit cash operating cost ($/oeb)

37.89

39.95

30.22

51.55

32.01

27.99

19.66

91.42

USD converted at the quarterly average forex

29.55

31.16

23.57

40.21

25.93

22.67

15.92

74.05

2022 US$0.78; 2021 US$0.81

Six Months

2022

2021

millions of Canadian dollars

Upstream
(a)

Kearl

Cold
Lake

Syncrude

Upstream
(a)

Kearl

Cold
Lake

Syncrude

Production and manufacturing

2,672

1,099

718

728

2,275

916

514

724

Selling and general

-

-

-

-

-

-

-

-

Exploration

3

-

-

-

4

-

-

-

Cash operating costs

2,675

1,099

718

728

2,279

916

514

724

Gross oil-equivalent production

397

146

142

79

417

180

141

63

(thousands of barrels per day)

Unit cash operating cost ($/oeb)

37.23

41.59

27.94

50.91

30.19

28.12

20.14

63.49

USD converted at the YTD average forex

29.41

32.86

22.07

40.22

24.15

22.50

16.11

50.79

2022 US$0.79; 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

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

Investor relations
(587) 476-4743

Media relations
(587) 476-7010

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Cenovus Announces 2022 Second-Quarter Financial and Operating Results

Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) continued to deliver safe and reliable operations and strong financial performance in the second quarter of 2022. Upstream production of 762,000 barrels of oil equivalent per day (BOEd) 1 and downstream throughput of more than 457,000 barrels per day (bblsd) included the impact of significant planned turnaround and maintenance activities during the quarter. Aligned with the company's shareholder returns framework, Cenovus delivered more than $1 billion to shareholders in common share purchases under its Normal Course Issuer Bid (NCIB) for the second quarter, in addition to the company's base dividend.

"We executed on our commitment of returning 50% of excess free funds flow to shareholders in the quarter while maintaining strong operational and financial performance during a period of significant planned turnarounds and maintenance," said Alex Pourbaix, Cenovus President & Chief Executive Officer. "And we're well positioned for even better performance in the second half of the year as our assets return to operating at normal rates across the portfolio."

Second-quarter results highlights

  • Generated cash from operating activities of nearly $3.0 billion, adjusted funds flow of $3.1 billion, free funds flow of $2.3 billion and excess free funds flow of approximately $2.0 billion.
  • Reduced long-term debt, including current portion, to $11.2 billion and net debt to $7.5 billion at quarter end.
  • Released Cenovus's 2021 environmental, social and governance (ESG) report today, detailing overall sustainability performance and progress on the company's ESG targets.
Financial, production & throughput summary
(For the period ended June 30) 2022 Q2 2022 Q1 % change 2021 Q2 % change
Financial ($ millions, except per share amounts)
Cash from operating activities 2,979 1,365
118 1,369 118
Adjusted funds flow 2 3,098 2,583 20 1,817 71
Per share (basic) 2 1.57 1.30 0.90
Per share (diluted) 2 1.53 1.27 0.89
Capital investment 822 746 10 534 54
Free funds flow 2 2,276 1,837 24 1,283 77
Excess free funds flow 2 2,020 2,615 (23) 1,244 62
Net earnings (loss) 2,432 1,625 50 224 986
Per share (basic) 1.23 0.81 0.11
Per share (diluted) 1.19 0.79 0.11
Long-term debt, including current portion 11,228 11,744 (4) 13,380 (16)
Net debt 7,535 8,407 (10) 12,390 (39)
Production and throughput (before royalties, net to Cenovus)
Oil and NGLs (bbls/d) 1 614,200 654,500 (6) 614,900
Conventional natural gas (MMcf/d) 882 865 2 906 (3)
Total upstream production (BOE/d) 1 761,500 798,600 (5) 765,900
Total downstream throughput (bbls/d) 457,300 501,800 (9) 539,000 (15)

1 See Advisory for production by product type.
2 Non-GAAP financial measure or contains a non-GAAP financial measure. See Advisory.

2022 capital budget and guidance update

Cenovus has updated its 2022 corporate guidance, mainly to reflect changes in the commodity price environment, the restart of the West White Rose Project, the Sunrise oil sands acquisition, accelerated upstream development activity and increased downstream operating costs. The updated guidance is available on Cenovus's website under Investors .

Changes to the company's 2022 guidance include:

  • Increased total capital investments for the year by $400 million at the mid-point to an updated range of $3.3 billion to $3.7 billion.
    • Oil Sands capital guidance has increased by $200 million at the mid-point, related to higher planned investments at Sunrise following the anticipated third-quarter closing of the previously announced acquisition of the remaining 50% partnership interest as well as incremental capital at Foster Creek, Christina Lake and Lloydminster thermals to support continued optimization of the assets, including adding shorter-cycle production opportunities and increased delineation drilling to speed well pad development.
    • Capital guidance for the Offshore segment has increased by about $100 million to include preliminary work on the West White Rose Project restart.
    • Capital guidance for the Conventional segment has increased by $100 million at the mid-point to account for inflation of labour and equipment costs, increased scope of drilling activity in the second half of 2022 as well as for asset integrity and emissions reduction initiatives.
  • Updated total upstream production guidance to between 780,000 BOE/d and 810,000 BOE/d, an increase of 15,000 BOE/d at the midpoint, to reflect the expected closing of the agreement to purchase the remaining 50% partnership interest in the Sunrise oil sands project.
  • Increased unit operating expenses across the Downstream business to capture the outlook for strong natural gas prices, extended turnaround activity at the non-operated Wood River, Borger and Toledo refineries, and inflationary pressures on labour costs, and chemical and electricity prices in the U.S. and Canada.
  • Revised the range for expected cash taxes to between $2.3 billion and $2.6 billion for the year, reflecting higher commodity price assumptions and increased profitability across Cenovus's businesses.

Second-quarter results
In the second quarter of 2022, Cenovus again delivered strong operating and financial results, driven by the company's continued safe and reliable operating performance and low cost structure, as well as stronger commodity prices.

Operating results 1
Cenovus's total revenues in the second quarter increased to $19.2 billion from $16.2 billion in the first quarter of 2022, driven by higher average commodity and realized sales prices for the company's products across the Upstream and Downstream businesses. Upstream revenues were $10.1 billion in the second quarter, compared with $9.7 billion in the previous quarter. Downstream revenues were $10.8 billion in the quarter, compared with $8.2 billion in the first quarter.

Total operating margin 3 was nearly $4.7 billion, compared with $3.5 billion in the first quarter. Upstream operating margin 4 was more than $3.8 billion, compared with about $2.9 billion in the first quarter. Downstream operating margin 4 rose to $847 million in the second quarter from $544 million in the first quarter. The increase was due to U.S. Manufacturing operating margin of $793 million in the quarter, compared with $423 million in the first quarter, driven mainly by strong market crack spreads, which more than doubled from the previous quarter.

Cenovus produced 761,500 BOE/d in the second quarter, down from first-quarter production of nearly 800,000 BOE/d due to a planned turnaround at Christina Lake. Christina Lake production was 228,800 bbls/d in the second quarter, down from 254,100 bbls/d in the first quarter. Foster Creek production of 187,800 bbls/d in the second quarter, compared with 197,900 bbls/d in the first quarter, reflected anticipated declines in volumes from wells brought on in late 2021. After a thorough mechanical and safety assessment, a turnaround initially scheduled for the third quarter of 2022 at Foster Creek has been deferred to the second quarter of 2023. At the Lloydminster thermal projects, second-quarter production increased by more than 2,000 bbls/d from the previous quarter to 98,400 bbls/d. The 10,000 bbls/d Spruce Lake North project remains on track for first oil in the third quarter with steam injection already underway. Offshore production was 70,100 BOE/d in the second quarter compared with 76,400 BOE/d in the first quarter, mainly due to planned maintenance and lower contracted sales volumes at the Liwan 3-1 field in China. The sales volume decline is partially offset by the finalization of an agreement to increase natural gas sales at Liuhua 29-1. Cenovus's Conventional production rose 6% in the second quarter from the previous period to 132,600 BOE/d, due to the company's successful drilling program, well reactivation and recompletion work done in the first quarter.

The Canadian Manufacturing segment had crude utilization of 73% and throughput of 80,900 bbls/d, compared with 89% and 98,100 bbls/d in the first quarter. The lower utilization rate was due to planned turnaround activity at both the Lloydminster Upgrader and Lloydminster Refinery, which was completed in the second quarter. Canadian Manufacturing had second-quarter operating margin of $47 million compared with $114 million in the first quarter, mainly due to the lower throughput and higher expenses associated with the turnarounds.

In the U.S. Manufacturing segment, crude utilization of 75% and throughput of 376,400 bbls/d were lower than in the first quarter of 2022 as the non-operated Toledo, Wood River and Borger refineries were impacted by planned turnarounds and extended maintenance activities. The lower throughput and higher expenses associated with the turnaround activities were offset by higher market crack spreads, which drove a significantly improved operating margin of $793 million in the second quarter compared with an operating margin of $423 million in the first quarter. The Lima Refinery had strong operating performance in the second quarter, achieving 91% utilization.

The turnaround activity at the Wood River and Borger refineries is done, with work substantially complete in July at Toledo. Cenovus expects to be well positioned for stronger operational momentum in the second half of the year.

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ALTAGAS ANNOUNCES SECOND QUARTER 2022 RESULTS

AltaGas Delivers Solid Second Quarter Results; Strategic Initiatives and Continued Execution of its Long-term Plan Drive Shareholder Value Creation

AltaGas Ltd. ("AltaGas" or the "Company") (TSX: ALA) today reported second quarter 2022 financial results and provided an update on the Company's operations.

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Global Oil and Gas

EP127 Work Programme & New Energy Opportunities

Global Oil & Gas Limited (“Global” or “the Company”) is pleased to update shareholders on the work programme continuing over its 100% owned Exploration Permit 127 in the Northern Territory, along with a Company update on complimentary energy opportunities.

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Suncor Energy to Release Second Quarter 2022 Financial Results

Suncor will release its second quarter financial results on August 4, 2022 before 8:00 p.m. MT (10:00 p.m. ET).

A webcast to review the second quarter will be held on August 5, 2022 at 7:30 a.m. MT (9:30 a.m. ET). Representing management will be Kris Smith, interim president and chief executive officer and Alister Cowan, chief financial officer. A question and answer period with analysts will follow brief remarks from management. Trevor Bell, vice president, Investor Relations will host the call.

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