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Imperial Oil Limited IMO released its corporate guidance outlook on Dec. 12 with a prime focus on profitable volume growth and increased cash flow. The Canadian integrated energy company forecasted its capital and exploration expenditures of C$1.9 to C$2.1 billion, with a balanced investment toward its upstream and downstream operations.
IMO’s Upstream Projections
A significant portion of the capital investment is planned to be directed toward upstream operations to enhance production volumes. The investments will be directed toward key projects like Kearl, where investment in technology will boost bitumen recovery and enhance the mine progression work; the Leming redevelopment project, where completion of the project using innovative steam-assisted gravity drainage technology will have far-reaching effects beyond 2026; and the Grand Rapids project at Cold Lake, which is going to deliver its first full year contribution.
The anticipated investments in the above-mentioned projects are likely to boost production levels between 433,000 and 456,000 barrels of oil equivalent per day in 2025, ensuring a robust contribution toward the energy industry.
Downstream Transformation: Strathcona Renewable Diesel
IMO’s downstream capital investments focus on efficiency and low-carbon initiatives. The investments in the downstream operations are proposed to be directed toward the Strathcona renewable diesel project and other optimization initiatives that can potentially enhance logistics and processing flexibility.
The Strathcona Renewable Diesel project, expected to start in mid 2025, embodies Imperial's shift toward lower-carbon products. The lower turnaround schedule of the company supports higher throughput over the years; therefore the start-up of the Strathcona renewable project is expected to increase the sales volume.
IMO, currently carrying a Zacks Rank #3 (Hold),anticipates that investments in the above-said projects are likely to boost the throughput between 405,000 and 415,000 barrels per day with capacity optimization between 94% and 96%.
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Some other Canadian companies, like Suncor Energy Inc. SU and Pembina Pipeline Corporation PBA, also announced their 2025 corporate outlook plans in December.
Suncor Energy has forecasted a disciplined capital investment program to strike a balance between investments to sustain its existing business and investments in high-value economic opportunities. The major investments of Suncor Energy include the replacement of the Upgrader1 coke drums at the Base Plant, the development of projects like Mildred Lake and West White Rose and the improvement of the Petro-Canada retail network.