Imperial announces third quarter 2026 financial and operating results

• Record quarterly net income of $2,454 million
• Cash flows from operating activities of $3,228 million and cash flows from operating activities excluding working capital¹ of $2,957 million
• Quarterly Upstream production of 418,000 gross oil-equivalent barrels per day
• Kearl quarterly production of 282,000 total gross oil-equivalent barrels per day (200,000 barrels Imperial's share)
• Cold Lake quarterly production of 139,000 gross oil-equivalent barrels per day
• Downstream record quarterly earnings with refinery capacity utilization of 88 percent
• Returned $2,506 million to shareholders with $420 million in dividend payments and $2,086 million of share repurchases

CALGARY, Alberta--(BUSINESS WIRE)--Imperial (TSE: IMO) (NYSE American: IMO):

Imperial reported estimated net income in the third quarter of $2,454 million, up from net income of $2,190 million in the second quarter of 2026, primarily driven by higher commodity prices and downstream volumes.

Quarterly cash flows from operating activities were $3,228 million, up from $2,704 million generated in the second quarter of 2026. Excluding the impact of working capital¹, cash flows from operating activities were $2,957 million, up from $2,522 million in the second quarter of 2026.

"Imperial's advantaged integrated business model continues to deliver strong financial results across all operating segments," said John Whelan, chairman, president and chief executive officer. "Downstream performance was enhanced by our investment in the Renewable Diesel facility at the Strathcona refinery which delivered high-value, low-carbon, locally-produced renewable diesel fuel to Canadian markets."

Upstream production in the quarter averaged 418,000 gross oil-equivalent barrels per day. At Kearl, quarterly total gross production averaged 282,000 barrels per day (200,000 barrels Imperial's share) including the impacts of a third-party pipeline outage which resulted in a full production shut down for multiple days. Given the impacts of third-party events to Kearl's year-to-date production, the company is now targeting total gross production of 280,000 barrels per day (199,000 barrels Imperial's share) in 2026. Cold Lake averaged 139,000 barrels per day inclusive of the planned turnaround. The company's share of Syncrude production in the quarter averaged 70,000 gross barrels per day inclusive of the planned coker turnaround.

Refinery throughput in the quarter averaged 381,000 barrels per day, resulting in refinery capacity utilization of 88 percent, including the impacts of a third-party pipeline outage and planned turnaround work at the Sarnia refinery. The Renewable Diesel facility at the Strathcona refinery achieved its highest canola throughput and delivered strong financial performance in the quarter. Work associated with debottlenecking rail logistics at Strathcona, to enable higher crude runs while supporting continued growth in canola throughput, is progressing and is anticipated to enhance refinery capacity utilization by year end. Petroleum product sales averaged 474,000 barrels per day.

During the quarter, Imperial returned $2,506 million to shareholders through dividend payments and share repurchases under the accelerated normal course issuer bid (NCIB) program, which is anticipated to be completed prior to year end. The company also declared a fourth quarter dividend of 87 cents per share.

"In the quarter, we increased our cash balance to $2.9 billion while funding our capital expenditures, dividend payments, and accelerated share repurchases," said John Whelan. "We're on pace to complete our NCIB by year end and are well positioned to return additional surplus cash to shareholders in the new year."

Third quarter highlights

• Net income of $2,454 million or $5.11 per share on a diluted basis, up from $539 million or $1.07 per share in the third quarter of 2025. Results in the third quarter of 2025 include unfavourable identified items¹ of $555 million after tax.
• Cash flows from operating activities of $3,228 million, up from cash flows from operating activities of $1,798 million in the third quarter of 2025. Cash flows from operating activities excluding working capital¹ of $2,957 million, up from $1,600 million in the third quarter of 2025.
• Capital and exploration expenditures totaled $668 million, up from $505 million in the third quarter of 2025.
• The company returned $2,506 million to shareholders in the third quarter of 2026, including $420 million in dividends paid and $2,086 million in share repurchases under the NCIB. Imperial anticipates repurchasing all remaining allowable shares prior to year end.
• Upstream production averaged 418,000 gross oil-equivalent barrels per day, compared to 462,000 gross oil-equivalent barrels per day in the third quarter of 2025, primarily due to lower production at Kearl and planned turnaround impacts at Cold Lake and Syncrude.
• Total gross bitumen production at Kearl averaged 282,000 barrels per day (200,000 barrels Imperial's share), compared to 316,000 barrels per day (224,000 barrels Imperial's share) in the third quarter of 2025, primarily driven by the absence of exceptional high-quality ore grade versus the third quarter of 2025 and the impacts of a third-party pipeline outage.
• Gross bitumen production at Cold Lake averaged 139,000 barrels per day, compared to 150,000 barrels per day in the third quarter of 2025, primarily driven by planned turnaround impacts.
• The company's share of gross production from Syncrude averaged 70,000 barrels per day, compared to 78,000 barrels per day in the third quarter of 2025.
• Refinery throughput averaged 381,000 barrels per day, compared to 425,000 barrels per day in the third quarter of 2025. Capacity utilization was 88 percent, compared to 98 percent in the third quarter of 2025. Lower refinery throughput and capacity utilization were primarily due to unplanned downtime, a third-party pipeline outage, and planned turnaround impacts.
• Petroleum product sales were 474,000 barrels per day, up from 464,000 barrels per day in the third quarter of 2025, due to higher export sales.
• Chemical net income of $52 million in the quarter, up from $21 million in the third quarter of 2025.

Recent business environment

During the third quarter of 2026, the price of crude oil decreased, the Canadian WTI/WCS spread narrowed slightly, and industry refining margins improved relative to the second quarter of 2026. Global supply disruptions continued to drive volatility in crude oil prices, heavy crude differentials, and industry refining margins.

Starting in 2025, the United States implemented and adjusted a variety of trade-related measures, including tariffs on certain imports from Canada and several other countries. In response, Canada announced its own retaliatory tariffs. Based on Imperial's assessment of these actions and their effects to date, the company does not expect them to have a material impact on its consolidated financial position, results of operations, or cash flows.

Operating results

Third quarter 2026 vs. third quarter 2025

Third quarter 2025 results include identified items¹ of a $306 million after-tax ($406 million before-tax) non-cash impairment charge and a $249 million after-tax ($330 million before-tax) restructuring charge.

Price – Average bitumen realizations increased by $23.94 per barrel, primarily driven by higher marker prices, partially offset by a weaker WTI/WCS spread and higher diluent costs. Synthetic crude oil realizations increased by $33.71 per barrel, primarily driven by higher marker prices and an improved Synthetic/WTI spread.

Volume – Lower volumes were primarily driven by lower production at Kearl and Syncrude.

Royalty – Higher royalties were primarily driven by higher commodity prices.

Other – Primarily due to higher operating costs of about $210 million driven by higher energy costs and planned turnaround activities, partially offset by other sales of about $70 million, mainly sulphur.

Lower production at Kearl was driven by the absence of exceptional high-quality ore grade versus the third quarter of 2025 and the impacts of a third-party pipeline outage.

Lower production at Cold Lake was driven by planned turnaround impacts.

Margins – Higher margins primarily reflect improved market conditions.

Other – Due to favourable product mix effects of about $170 million primarily related to renewable diesel, offset by higher operating expenditures of about $80 million and unplanned downtime of about $50 million.

Lower refinery throughput and capacity utilization were primarily due to unplanned downtime, a third-party pipeline outage, and planned turnaround impacts.

Higher petroleum product sales were primarily due to higher export sales.

Margins – Higher margins primarily reflect improved industry polyethylene margins.

Third quarter 2025 results include identified items¹ of a $306 million after-tax ($406 million before-tax) non-cash impairment charge and a $249 million after-tax ($330 million before-tax) restructuring charge.

Cash flows from operating activities primarily reflect higher earnings.

Cash flows used in investing activities primarily reflect higher additions to property, plant, and equipment.

Cash flows used in financing activities primarily reflect:

Prior year results include identified items¹ of a $306 million after-tax ($406 million before-tax) non-cash impairment charge and a $249 million after-tax ($330 million before-tax) restructuring charge.

Price – Average bitumen realizations increased by $15.71 per barrel, primarily driven by higher marker prices, partially offset by a weaker WTI/WCS spread and higher diluent costs. Synthetic crude oil realizations increased by $28.38 per barrel, primarily driven by higher marker prices and an improved Synthetic/WTI spread.

Volume – Lower volumes were primarily driven by lower production at Kearl and Syncrude.

Royalty – Higher royalties were primarily driven by higher commodity prices.

Other – Primarily due to higher operating costs of about $300 million driven by higher energy costs and planned turnaround activities, and unfavourable foreign exchange impacts of about $70 million, partially offset by other sales of about $120 million, mainly sulphur.

Lower production at Kearl was driven by the absence of exceptional high-quality ore grade versus 2025.

Margins – Higher margins primarily reflect improved market conditions.

Other – Due to favourable product mix effects of about $400 million primarily related to renewable diesel and favourable foreign exchange impacts of about $70 million, partially offset by turnaround impacts of about $240 million and higher operating expenditures of about $130 million.

Lower refinery throughput and capacity utilization were primarily due to planned turnaround impacts and unplanned downtime.

Lower petroleum product sales were aligned with lower throughput related to planned turnaround work.

Margins – Higher margins primarily reflect improved industry polyethylene margins.

Prior year results include identified items¹ of a $306 million after-tax ($406 million before-tax) non-cash impairment charge and a $249 million after-tax ($330 million before-tax) restructuring charge, partially offset by higher incentive compensation as a result of the higher share price in the current year.

Cash flows from operating activities primarily reflect higher earnings.

Cash flows used in investing activities primarily reflect higher additions to property, plant, and equipment.

Cash flows used in financing activities primarily reflect:

On June 23, 2026, 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 24,179,635 common shares during the period June 29, 2026 to June 28, 2027. This maximum includes shares purchased under the normal course issuer bid from ExxonMobil Holdings Corporation. As in the past, ExxonMobil Holdings 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 otherwise on June 28, 2027. Imperial plans to continue its acceleration of its share purchases under the normal course issuer bid program, and anticipates repurchasing all remaining allowable shares prior to year end. Purchase plans may be modified at any time without prior notice.

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. Similarly, discussion of roadmaps or future plans related to carbon capture, transportation and storage, biofuel, hydrogen, and other future plans to reduce emissions and emission intensity of the company, its affiliates and third parties are dependent on future market factors, such as continued technological progress, policy support and timely rule-making and permitting, and represent forward-looking statements. Forward-looking statements can be identified by words such as believe, anticipate, intend, propose, plan, goal, seek, estimate, expect, future, continue, likely, may, should, will and similar references to future periods. Forward-looking statements in this report include, but are not limited to, discussion relating to volumes, targets, unit cash costs and fourth quarter performance; references to debottlenecking rail logistics at Strathcona to enable higher crude runs and to support continued growth in canola throughput; anticipated enhanced refinery crude utilization by year end; references to purchases under the normal course issuer bid and plans to accelerate purchases to complete the program prior to year end; discussion around the company being well positioned to return surplus cash to shareholders in the new year; opportunities to grow operated production, including potential opportunities related to undeveloped resources; the potential for policy and regulatory certainty to support industry reinvestment; and, the impact on the company of trade-related actions.

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, future energy demand, 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; the adoption and impact of new facilities or technologies on reductions to greenhouse gas emissions intensity, including but not limited to technologies using solvents to replace energy intensive steam at Cold Lake, 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 shareholder returns, assumptions such as cash flow forecasts, financing sources and capital structure, participation of the company’s majority shareholder in the normal course issuer bid, and the results of periodic and ongoing evaluation of alternate uses of capital; the amount and timing of emissions reductions, including the impact of lower carbon fuels; the degree and timeliness of support that will be provided by policymakers and other stakeholders for various new technologies such as carbon capture and storage; receipt of regulatory and third-party approvals in a timely manner, especially with respect to large scale emissions reduction projects; availability and performance of third-party service providers, including ExxonMobil global capability centres and other service providers located outside of Canada; Strathcona rail logistics challenges; maintenance and turnaround activity and cost; refinery utilization and product sales; applicable laws and government policies, including with respect to climate change, greenhouse gas emissions reductions and low carbon fuels; regulatory reforms and fiscal measures designed to enhance oil sands competitiveness and support production growth; the ability to offset any ongoing or renewed inflationary pressures; capital and environmental expenditures; cash generation, financing sources and capital structure, such as dividends and shareholder returns, including the timing and amounts of share repurchases; 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, petroleum and petrochemical products, feedstocks and other market factors, economic conditions and seasonal fluctuations and resulting demand, price, differential and margin impacts, including Canadian and foreign government action with respect to supply levels, prices, trade tariffs, trade sanctions or trade controls, disruptions, realignment or breaking of trade alliances or agreements or a broader breakdown in global trade, and disruptions in military alliances or wars; political or regulatory events, including changes in law or government policy, applicable royalty rates, and tax laws; third-party opposition to company and service provider operations, projects and infrastructure; competition from alternative energy sources, other emission reduction technologies, and established competitors in such markets; availability and allocation of capital; the receipt, in a timely manner, of regulatory and third-party approvals, including for new technologies relating to the company’s lower emissions business activities; failure, delay, reduction, revocation or uncertainty regarding supportive policy and market development for the adoption of emerging lower emission energy technologies and other technologies that support emissions reductions; environmental regulation, including climate change and greenhouse gas regulation and changes to such regulation; unanticipated technical or operational disruptions or difficulties; project management and schedules and timely completion of projects; the results of research programs and new technologies, including with respect to greenhouse gas emissions, and the ability to bring new technologies to scale on a commercially competitive basis, and the competitiveness of alternative energy and other emission reduction technologies; availability and performance of third-party service providers, including ExxonMobil global capability centres and other service providers located outside of Canada; environmental risks inherent in oil and gas exploration and production activities; effectiveness of company risk management programs and emergency response preparedness; operational hazards and risks; cybersecurity incidents including incidents caused by actors employing emerging technologies such as artificial intelligence; currency exchange rates; general economic conditions, including continued or renewed inflation and the occurrence and duration of economic recessions or downturns; 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.

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