Q3 2023 Imperial Oil Ltd Earnings Call
Please standby.
Speaker 1: transcript
Speaker 1: The day I welcome to the Imperial Oil 3Q23 earnings call. Today's conference is being requested.
Good day and welcome to the Imperial oil <unk> 23 earnings call. Today's conference is being recorded at this time I would like to turn the conference over to Dave Hughes, Vice President Investor Relations. Please go ahead.
Speaker 1: transcript
Speaker 1: At this time, I would like to turn the conference over to Dave Hughes, Vice President, Investor Relations. Please go ahead.
Speaker 2: transcript
Speaker 2: Good morning everybody. Welcome to our third quarter earnings conference call.
Good morning, everybody welcome to our third quarter earnings Conference call.
Speaker 2: transcript
Speaker 2: I'm joined this morning by Imperial Senior Management team, including Brad Corson, Chairman, President and CEO , Dan Lyons, Senior Vice President, Finance Administration, Chair Evers, Senior Vice President, Sustainability, Commercial Development, and Product Solutions, and Simon Younger, Senior Vice President of the upstream. I'm also joined today by the new Vice President Investor Relations Peter Shaw.
I'm joined this morning by Imperial Senior management team, including Brad Corson, Chairman, President and CEO, Dan Lyons Senior Vice President Finance Administration, Jerry <unk> Senior Vice President of sustainability commercial development and product solutions and Simon younger senior Vice President of the upstream.
We're also joined today by the New Vice President of Investor Relations Peter shop.
Speaker 2: transcript
Speaker 2: Today's comments include reference to non-GAAP financial measures. The definitions and reconciliations of these measures can be found in attachment six of our most recent press release and are available on our website with fulling to this conference call. Today's comments may also contain forward looking information. Any forward looking information is not a guarantee of future performance and actual future performance and operating results can vary materially depending on the number of factors in the assumption.
Todays comments include reference to non-GAAP financial measures definitions and reconciliations of these measures can be found in the attachment six of our most recent press release and are available on our website with willing to its conference call.
Todays comments may also contain forward looking information any forward looking information is not a guarantee of future performance and actual future performance and operating results can vary materially depending on the number of factors and assumptions.
Operator: Please stand by. Good day and welcome to the Imperial Oil 3Q23 earnings call. Today's conference is being recorded.
Speaker 2: transcript
Speaker 2: Forward-looking information and the risk factors and assumptions are described in further detail in our third quarter earnings release that we issued this morning as well as our most recent form 10k all these documents are available on Cedar Edgar and on our website. So please refer to those
Forward looking information and the risk factors and assumptions are described in further detail in our third quarter earnings release that we issued this morning as well as our most recent Form 10-K. All of these documents are available on SEDAR Edgar and on our website. So please refer to those.
Dave Hughes: At this time, I would like to turn the conference over to Dave Hughes, Vice President Investor Relations. Please go ahead. Good morning, everybody. Welcome to our third quarter earnings conference call. I'm joined this morning by Imperial Senior Management team, including Brad Corson, Chairman, President and CEO. Dan Lyons, Senior Vice President, Finance Administration, Chair Evers, Senior Vice President, Sustainability, Commercial Development and Product Solutions, and Simon Younger, Senior Vice President of the upstream.
Speaker 2: transcript
Speaker 2: Rob will start with Oping remarks and then Dan will provide us with a financial update and then he'll go back to Brad for an operations update. And once that's done, Peter will take over and take us through the Q&A periods. So if that'll turn it over to Brad.
I will start with opening remarks, and then Dan will provide us with a financial update and then I'll go back to Brad for an operations update and once that's done Peter will take over and take us through the Q&A periods, so with that I'll turn it over to Brad.
Speaker 3: transcript
Speaker 3: All right, thanks Dave. Well, good morning everybody and welcome to our third quarter earnings call. Hope everyone's doing well. I'm really pleased to report another strong quarter for Imperial. We saw strong performance across both our upstream and downstream businesses, and we are seeing continued strength as we move into the fourth quarter.
Alright, Thanks, Dave and good morning, everybody and welcome to our third quarter earnings call I Hope everyone's doing well I'm really pleased to report another strong quarter for Imperial we saw strong performance across both our upstream and downstream businesses and we are seeing continued strength as we moved into the fourth quarter.
Dave Hughes: I'm also joined today by the new Vice President Investor Relations Peter Shaw. Today's comments include reference to non-gap financial measures. The definitions and reconciliations of these measures can be found in the attachment six of our most recent press release and are available on our website with a link to this conference call. Today's comments may also contain forward-looking information. Any forward-looking information is not a guarantee of future performance and actual future performance and operating results can vary materially depending on the number of factors and assumptions.
Speaker 3: transcript
Speaker 3: Notwithstanding some tempering of demand, the overall macro environment remains quite positive for our financial performance.
Notwithstanding some tempering of demand the overall macro environment remains quite positive for our financial performance.
Speaker 3: transcript
Speaker 3: We're continuing to experience high commodity prices driven by continued robust demand and lower than normal inventory.
We're continuing to experience high commodity prices driven by continued robust demand and lower than normal inventories.
Dave Hughes: Forward-looking information and the risk factors and assumptions are described in further detail in our third quarter earnings release that we issued this morning, as well as our most recent form 10k. All these documents are available on CDAR Edgar and on our website. So please refer to those.
Speaker 3: transcript
Speaker 3: Our unrelenting focus on safety and reliability enables our strong operating performance in this environment and underpins the results, which we will be talking about this morning.
Our unrelenting focus on safety and reliability enables our strong operating performance in this environment and underpins the results, which we will be talking about this morning.
Speaker 3: transcript
Speaker 3: And we remain committed to delivering the liable, affordable, and lower emission energy to Canadians. Now let's talk about our
And we remain committed to delivering reliable affordable and lower emissions energy to Canadians.
Dave Hughes: We'll start with Oping remarks and then Dan will provide us with a financial update and then I'll go back to Brad for an operations update.
Now, let's talk about our third quarter performance.
Speaker 3: transcript
Speaker 3: The results we will review over the next several minutes are reflective of a quarter that saw lower plan maintenance relative to the second quarter. We completed a turnaround at cold lake safely and consistent with our plan.
The results we will review over the next several minutes are reflective of a quarter that saw lower planned maintenance relative to the second quarter. We completed the turnaround at cold Lake safely and consistent with our plans. We also began planned turnaround work at Syncrude.
Dave Hughes: And once that's done, Peter will take over and take us through the Q&A periods.
Brad Corson: So if that'll turn it over to Brad. All right, thanks Dave.
Speaker 3: transcript
Speaker 3: We also began plans run around work at SimCrew.
Brad Corson: Well, good morning everybody and welcome to our third quarter earnings call. I hope everyone's doing well. I'm really pleased to report another strong quarter for Imperial. We saw strong performance across both our upstream and downstream businesses and we are seeing continued strength as we move into the fourth quarter. Notwithstanding some tempering of demand, the overall macro environment remains quite positive for our financial performance. We're continuing to experience high commodity prices driven by continued robust demand and lower than normal inventories.
Speaker 3: transcript
Speaker 3: and also at Sarnia that continued into the fourth quarter. As of today, the turnaround at Sarnia is mechanically complete and the facility is in the process of starting up. And Syncrood is expected to complete.
And also at Sarnia that continued into the fourth quarter.
As of today the turnaround at Sarnia is mechanically complete and the facility is in the process of starting up.
And Syncrude is expected to complete in the coming weeks.
Speaker 3: transcript
Speaker 3: The third quarter also saw continued strength in the commodity price environment with benchmark oil prices such as
The third quarter also saw continued strength in the commodity price environment with benchmark oil prices such as.
Speaker 3: transcript
Speaker 3: Brandt, WTI and WCS all improving versus last quarter.
Brent <unk> and WCS, all improving versus last quarter.
Brad Corson: Our unrelenting focus on safety and reliability enables our strong operating performance in this environment and underpins the results, which we will be talking about this morning. And we remain committed to delivering the liable, affordable and lower emission energy to Canadians.
Speaker 3: transcript
Speaker 3: While we saw lower motor gasoline cracks toward the end of the quarter, diesel cracks strengthened throughout. And overall, refining marks...
While we saw lower motor gasoline cracks towards the end of the quarter diesel cracks strengthened throughout.
And overall refining margins remained solid.
Speaker 3: transcript
Speaker 3: of the next few minutes, Dan and I will detail the results of this very strong third quarter.
Over the next few minutes, Dan and I will detail the results of this very strong third quarter.
Brad Corson: Now, let's talk about our third quarter performance. The results we will review over the next several minutes are reflective of a quarter that saw lower plan maintenance relative to the second quarter. We completed a turnaround at cold lake safely and consistent with our plans. We also began plan turnaround work at synchrood and also at sarnia that continued into the fourth quarter. As of today, the turnaround at sarnia is mechanically complete and the facility is in the process of starting up and synchrood is expected to complete in the coming weeks.
Speaker 3: transcript
Speaker 3: So now let's review those third quarter results specifically earnings for the quarter
So now let's review those third quarter results, specifically earnings for the quarter.
Speaker 3: transcript
Speaker 3: We're 1,601 million with cash from operating activities of 1,946 million when excluding working capital impacts. These results reflect continued strong operational performance and lower levels of planned maintenance across the upstream and downstream.
We're $1.601 billion with cash from operating activities of $1 $946 million when excluding working capital impacts. These results reflect continued strong operational performance and lower levels of planned maintenance across the upstream and downstream.
Speaker 3: transcript
Speaker 3: We achieved total upstream production of 423,000 gross oil equipment barrels per day.
We achieved total upstream production of 423000 gross oil equivalent barrels per day.
Brad Corson: The third quarter also saw continued strength in the commodity price environment with benchmark oil prices such as. Grant WTI and WCS all improving versus last quarter. While we saw lower motor gasoline cracks toward the end of the quarter, diesel cracks strengthened throughout and overall refining margins remain solid.
Speaker 3: transcript
Speaker 3: The quarter was highlighted by the highest ever quarterly production in a curl of 295,000 total gross oil
The quarter was highlighted by the highest ever quarterly production apparel of 295000 total growth.
Oil barrels per day.
Speaker 3: transcript
Speaker 3: In late September , St. Crude began work on its planned hydro-treat or turnaround, which is expected to complete in the middle of the fourth quarter.
In late September Syncrude began work on its planned hydro treater turnaround, which is expected to complete in the middle of the fourth quarter.
Speaker 3: transcript
Speaker 3: This turnaround will have a smaller impact on volumes and costs in comparison to the much larger COCR turnaround completed earlier this year. I'll talk about each asset in more detail in a few minutes.
This turnaround we will have a smaller impact on volumes and costs in comparison to the much larger coker turnaround completed earlier this year and I'll talk about each asset in more detail in a few minutes.
Brad Corson: Of the next few minutes, Dan and I will detail the results of this very strong third quarter. So now let's review those third quarter results specifically. Earnings for the quarter were 1,601 million with cash from operating activities of 1,946 million when excluding working capital impacts. These results reflect continued strong operational performance and lower levels of planned maintenance across the upstream and downstream. We achieved total upstream production of 423,000 gross oil equivalent barrels per day.
Speaker 3: transcript
Speaker 3: In the downstream we continue to see very strong operating performance. Refining throughput average 416,000 barrels per day, which equates to a refinery utilization in the quarter of 96%, which includes the Sarnia site turnaround which began in mid September . And as a reminder, the Sarnia turnaround included maintenance at our chemical facility as well.
In the downstream we continue to see very strong operating performance refining throughput averaged 416000 barrels per day, which equates to a refinery utilization in the quarter of 96%.
Which includes the Sarnia site turnaround, which began in mid September and as a reminder, the Sarnia turnaround included in maintenance at our chemical facilities as well.
Speaker 3: transcript
Speaker 3: We ended the third quarter with year-to-date refining utilization of 94%, which is consistent with our guidance for our refining business.
We ended the third quarter with year to date refining utilization of 94%, which is consistent with our guidance for our refining business.
Brad Corson: The quarter was highlighted by the highest ever quarterly production in curl of 295,000 total gross oil barrels per day. In late September, thin crude began work on its planned hydro-treater turnaround which is expected to complete in the middle of the fourth quarter. This turnaround will have a smaller impact on volumes and costs in comparison to the much larger coker turnaround completed earlier this year. I'll talk about each aspect in more detail in a few minutes.
Speaker 3: transcript
Speaker 3: I'm sure by backs. I'm very pleased to report that by mid-October, we had fully executed our accelerated normal course issue or business.
On share buybacks I'm very pleased to report that by mid October we had fully executed our accelerated normal course issuer bid.
Speaker 3: transcript
Speaker 3: These by-backs represented an additional $1,342 million of cash return to our shareholders during the quarter and another $958 million.
These buybacks represented an additional $1 $342 million of cash returned to our shareholders during the quarter and another $958 million.
Speaker 3: transcript
Speaker 3: in October for a total return of 2.3 billion dollars representing 5% of our shares. And earlier today we announced our intention to initiate another substantial issue or bid to return an additional 1.5 billion dollars to our shareholders in the fourth quarter. So with that I'll pass.
In October for a total return of $2 $3 billion, representing 5% of our shares and earlier today, we announced our intention to initiate another substantial issuer bid to return an additional $1 5 billion.
Brad Corson: In the downstream, we continue to see very strong operating performance. Refining throughput average, 416,000 barrels per day which equates to a refinery utilization in the quarter of 96%, which includes the Sarnia site turnaround which began in mid-September. And as a reminder, the Sarnia turnaround included maintenance at our chemical facility as well. We ended the third quarter with year-to-date refining utilization of 94%, which is consistent with our guidance for our refining business.
To our shareholders in the fourth quarter.
So with that I'll pass things over to Dan.
Speaker 2: transcript
Speaker 2: Thanks Brad. Getting into the financial results for the third quarter, we recorded net income of $1,601 million, down about $400 million from the third quarter of 2022. We're down about $200 million when we exclude the impact of the XTL Canada sale in the prior year.
Thanks, Brad getting into the financial results for the third quarter, we reported net income of $1 billion and $601 million down about $400 million from the third quarter of 2022 were down about $200 million when we exclude the impact of the <unk> sale in the prior year the <unk>.
Brad Corson: On share bybacks, I'm very pleased to report that by mid-October, we had fully executed our accelerated normal course issue or bid. These bybacks represented an additional 1,342 million of cash return to our shareholders during the quarter and another $958 million in October for a total return of $2.3 billion representing 5% of our shares.
Speaker 2: transcript
Speaker 2: The decrease is primarily driven by lower refining margins in our downstream business. Looking sequentially, our third quarter net income of $1,601,000,000 is up over $900,000,000 from the second quarter, reflecting stronger realizations and improved volumes along with the absence of significant second quarter turn around activity in both the upstream and downstream.
Decrease is primarily driven by lower refining margins in our downstream business looking sequentially, our third quarter net income of $1 $601 million is up over $900 million from the second quarter.
<unk> stronger realizations and improve volumes along with the absence of significant second quarter turnaround activity in both the upstream and downstream.
Speaker 2: transcript
Speaker 2: Looking at each business line, the upstream recorded net income of $1,028,000,000.
Looking at each business line, the upstream reported net income of $1 $28 million up $644 million from the second quarter, reflecting higher realizations and improve volumes post planned turnaround activity at Pearl and Syncrude.
Brad Corson: And earlier today, we announced our intention to initiate another substantial issue or bid to return an additional $1.5 billion to our shareholders in the fourth quarter.
Speaker 2: transcript
Speaker 2: up 644 million dollars from the second quarter, reflecting higher realizations and improved volumes post plan turnaround activity at curl and sink reek.
Speaker 2: transcript
Speaker 2: The downstream net income was $586 million, up $336 million from the second quarter, reflecting the absence of planned turnaround activities at the Strathcona refinery and stronger refinery margin.
The downstream net income was $586 million.
Daniel Lyons: So with that, I'll pass things over today. Thanks, Brad. Getting into the financial results for the third quarter, we recorded net income of $1,601 million down about $400 million from the third quarter of 2022. We're down about $200 million when we exclude the impact of the XTO Canada sale in the prior year. The decrease is primarily driven by lower refining margins in our downstream business.
$336 million from the second quarter, reflecting the absence of planned turnaround activities at this draft Kona refinery and stronger refining margins.
Speaker 2: transcript
Speaker 2: Finally, our chemicals business generated net income of $23 million, down $48 million from the second quarter, reflecting weaker margins as well as impacts from the gas cracker turnaround that commenced in September .
Finally, our chemicals business generated net income of $23 million down.
Down $48 million from the second quarter, reflecting weaker margins as well as impacts from the gas cracker turnaround that commenced in September.
Daniel Lyons: Looking sequentially, our third quarter net income of $1,601 million is up over $900 million from the second quarter, reflecting stronger realizations and improved volumes along with the absence of significant second quarter turnaround activity in both the upstream and downstream. Looking at each business line, the upstream reported net income of $1 billion, $28 million, up $644 million from the second quarter, reflecting higher realizations and improved volumes post plan turnaround activity at curl and synchrete. The downstream net income was $586 million, up $336 million from the second quarter. Reflecting the absence of plan turnaround activities at the Strathcona refinery and stronger refinery margins.
Moving on to cash flow.
Speaker 2: transcript
Speaker 2: We ended the quarter with more than $2.7 billion of cash on hand. In the third quarter, we generated almost $2.4 billion in cash flows from operating activities and improvement of almost $1.5 billion over the second quarter, reflecting stronger earnings and favorable working capital impact.
We ended the quarter with more than $2 $7 billion of cash on hand.
In the third quarter, we generated almost $2 $4 billion in cash flows from operating activities, an improvement of almost $1 $5 billion over the second quarter, reflecting stronger earnings and favorable working capital impacts excluding favorable working capital impacts of 413.
Speaker 2: transcript
Speaker 2: excluding favorable working capital impacts of 413 million cash flow from operating activities for the third quarter was $1,946,000,000 up about $800,000,000 from the second quarter. Cash flows from operating activities were also impacted by unfavorable life-o-wack deferred tax impacts driven by higher commodity prices in the third quarter as compared to the second quarter.
Cash flow from operating activities for the third quarter was $1 $946 million up about $800 million from the second quarter.
Cash flows from operating activities were also impacted by unfavorable LIFO whack deferred tax impacts driven by higher commodity prices in the third quarter as compared to the second quarter.
Daniel Lyons: Finally, our chemicals business generated net income of $23 million, down $48 million from the second quarter, reflecting weaker margins as well as impacts from the gas crack of turnaround that commenced in September.
Speaker 2: transcript
Speaker 2: As a US gap, LIFO reported, we tend to see negative inventory driven to fur taxed impacts when prices rise and positive impacts when prices fall.
As a U S. GAAP LIFO reporter, we tend to see negative inventory driven deferred tax impacts when prices rise and positive impacts when prices fall.
Now I will discuss Capex capital expenditures totaled $387 million in the third quarter down slightly from $392 million in the third quarter of 2022, but remain in line with our current year plans and full year guidance of $1 7 billion.
Daniel Lyons: Moving on to cash flow, we ended the quarter with more than $2.7 billion of cash on hand. In the third quarter, we generated almost $2.4 billion in cash flows from operating activities and improvement of almost $1.5 billion over the second quarter, reflecting stronger earnings and favorable working capital impacts. Excluding favorable working capital impacts of 413 million cash flow from operating activities for the third quarter was $1,946 million, up about $800 million from the second quarter.
Speaker 2: transcript
Speaker 2: Capital expenditures total $387 million in the 3rd quarter, down slightly from $392 million in the 3rd quarter of 2022, but remain in line with our current year plans and full year guidance of $1.7 billion.
Speaker 2: transcript
Speaker 2: In the upstream, third quarter spending focused on smaller projects to sustain and grow production at curl cold lake and synchroo as well as progressing the input tailings project at curl. And the essay saggy grand rapids project at cold lake.
In the upstream.
Third quarter spending focused on smaller projects to sustain and grow production at girl Cold Lake and Syncrude as well as progressing the in pit tailings project at Kearl.
The SA Saggy Grand Rapids project at Cold Lake.
Speaker 2: transcript
Speaker 2: In the downstream, third quarter spending mainly included progressing our renewable, peaceful project at Stratkona, facility construction and pin use with project startup plan for 2025.
In the downstream third quarter spending mainly included progressing our renewable diesel project that scrap Kona facility construction continues with project startup plan for 2025.
Daniel Lyons: Cash flows from operating activities were also impacted by unfavorable LIFO wax deferred tax impacts driven by higher commodity prices in the third quarter as compared to the second quarter. As a US gap LIFO reported, we tend to see negative inventory driven deferred tax impacts when prices rise and positive impacts when prices fall.
Shifting to shareholder distributions.
Speaker 2: transcript
Speaker 2: In the third quarter of 2023, we paid $292 million to give it in.
In the third quarter of 2023, we paid $292 million through dividends.
Speaker 2: transcript
Speaker 2: Beyond base dividends, we continue to demonstrate our longstanding commitment to return surplus to cash to shareholders. As Brad noted, we completed our most recent accelerated NCID program.
<unk> base dividends, we continue to demonstrate our long standing commitment to return surplus cash to shareholders as Brad noted we completed our most recent accelerated NCI program on October 19th returning a total of $2 $3 billion to shareholders over the last four months and as Brad also.
Daniel Lyons: Now we'll discuss capital expenditures total $387 million in the third quarter, down slightly from $392 million in the third quarter of 2022, but remain in line with our current year plans and full year guidance of $1.7 billion. In the upstream, third quarter spending focused on smaller projects to sustain and grow production at curl, cold lake, and synchrood, as well as progressing the input tailings project at curl and the essay saggy grand rapids project at cold lake. In the downstream, third quarter spending mainly included progressing our renewable diesel project at Strathcona facility construction continues with project startup plan for 2025.
Speaker 2: transcript
Speaker 2: On October 19th, returning a total of $2.3 billion to shareholders over the last four months.
Speaker 2: transcript
Speaker 2: And as Brad also noted, given our robust free cash flow generation, we intend to launch a substantial issue or bid returning up to an additional $1.5 billion to shareholders in the fourth quarter of 2023. The terms and pricing will be determined and the bid is expected to commence within the next two weeks.
Noted given our robust free cash flow generation, we intend to launch a substantial issuer bid returning up to an additional $1 $5 billion to shareholders in the fourth quarter of 2023, the terms and pricing will be determined and the bid is expected to commence within the next two weeks lastly this.
Speaker 2: transcript
Speaker 2: Lastly this morning, we announced a fourth quarter dividend of 50 cents per share, consistent with our third quarter dividend. Now I'll turn it back to Brad to discuss our operational performance.
We announced a fourth quarter dividend of <unk> 50 per share consistent with our third quarter dividend now I'll turn it back to Brad to discuss our operational performance.
Speaker 3: transcript
Speaker 3: All right, thanks Dan. So now let's talk about our operating results for the quarter. Upstream production for the quarter averaged 423,000 oil equipment barrels per day, which is up 60,000 barrels per day versus the second quarter of 2023. And down 7,000 barrels per day versus the third quarter of last year.
Alright, Thanks, Dan So now let's talk about our operating results for the quarter.
Daniel Lyons: But, shifting to shareholder distributions. In the third quarter of 2023, we paid $292 million in dividends beyond base dividends, we continue to demonstrate our long standing commitment to return surplus cash to shareholders as Brad noted, we completed our most recent accelerated NCIB program on October 19th. Returning a total of $2.3 billion to shareholders over the last four months. And as Brad also noted, given our robust free cash flow generation, we intend to launch a substantial issue or bid, returning up to an additional $1.5 billion to shareholders in the fourth quarter of 2023.
Extreme production for the quarter averaged 423000 oil equivalent barrels per day, which is up 60000 barrels per day versus the second quarter of 2023 and.
And down 7000 barrels per day versus the third quarter of last year.
Speaker 3: transcript
Speaker 3: When adjusting for the sale of XTO that closed in the third quarter last year, we are actually up around 5,000 barrels per day, year on year.
When adjusting for the sale of <unk> that closed in the third quarter last year, we are actually up around 5000 barrels per day.
Year on year.
Speaker 3: transcript
Speaker 3: This higher production was driven primarily by strong performance at Curl and the absence of the second quarter turnaround work at both Curl and SimCrew. This was partly offset by planned maintenance at Cold Lake and the commencement of SimCrew's HydroTreater Turnaround in late September .
This higher production was driven primarily by strong performance at Kearl and the absence of the second quarter turnaround work at both Carl and Syncrude. This was partly offset by planned maintenance at Cold Lake and the commencement of some crudes hydro treater turnaround in late September.
Daniel Lyons: The terms and pricing will be determined and the bid is expected to commence within the next two weeks. Lastly this morning, we announced the fourth quarter dividend of 50 cents per share, consistent with our third quarter dividend.
Speaker 3: transcript
Speaker 3: In the quarter, we saw WTI and WCS prices rise to the highest level in a year, leading to substantial strengthening of vitamin realization.
In the quarter, we saw at <unk> and WCS prices rise to the highest level in a year leading to substantial strengthening of bitumen realizations.
Brad Corson: Now I'll turn it back to Brad to discuss our operational performance. All right, thanks Dan. So now let's talk about our operating results for the quarter. Upstream production for the quarter averaged 423,000 oil equivalent barrels per day, which is up 60,000 barrels per day versus the second quarter of 2023, and down 7,000 barrels per day versus the third quarter of last year. When adjusting for the sale of XTO that close in the third quarter last year, we are actually up around 5,000 barrels per day, year on year.
Speaker 3: transcript
Speaker 3: Going into the fourth quarter, we have seen a recent widening of the WTI WCS differential, but the overall commodity environment remains strong and the industry outlook for egress is positive.
Going into the fourth quarter, we have seen a recent widening.
Of the WTO WCS differential, but the overall commodity environment remains strong and the industry outlook for egress is positive.
Speaker 3: transcript
Speaker 3: So now let's move on and talk specifically about curl.
So now let's move on and talk specifically about curl.
Speaker 3: transcript
Speaker 3: Curls production in the third quarter average, 295,000 barrels per day gross, which was up 78,000 barrels per day versus...
Curls production in the third quarter averaged 295000 barrels per day, gross which was up 78000 barrels per day versus.
Speaker 3: transcript
Speaker 3: the second quarter and up 24,000 barrels per day from the third quarter of last year.
The second quarter and up 24000 barrels per day from the third quarter of last year IMAX.
Brad Corson: This higher production was driven primarily by strong performance at curl and the absence of the second quarter turnaround work at both curl and thin crew. This was partly offset by planned maintenance at cold lake and the commencement of thin crew's hydro-treeder turnaround in late September. In the quarter we saw WTI and WCS prices rise to the highest level in a year, leading to substantial strengthening of vitamin realizations.
Speaker 3: transcript
Speaker 3: I'm excited to highlight that this represents another production record and the best ever quarterly performance at Curl.
I am excited to highlight that this represents another production record and the best ever quarterly performance at Kearl.
Speaker 3: transcript
Speaker 3: surpassing the previous record, which was set in the fourth quarter of 2020 by 11,000 barrels per day gross. And there's more. Curl has also set a number of other production records in the quarter, including the highest ever single month production of 322,000 barrels per day in September .
Surpassing the previous record, which was set in the fourth quarter of 2020 by 11000 barrels per day gross and Theres more Carl has also set a number of other production records in the quarter, including the highest ever single month production of 312.
2000 barrels per day in September.
Brad Corson: Going into the fourth quarter, we have seen a recent widening of the WTI WCS differential, but the overall commodity environment remains strong and the industry outlook for egress is positive.
Speaker 3: transcript
Speaker 3: also the highest ever August production of 283,000 barrels per day and a new daily production record of 360,000 barrels a day, which was set on September 5th.
Also the highest ever August production of 283000 barrels per day.
And a new daily production record of 360000 barrels a day, which was set on September five.
Brad Corson: So now let's move on and talk specifically about curl. Curl's production in the third quarter average 295,000 barrels per day gross, which was up 78,000 barrels per day versus the second quarter and up 24,000 barrels per day from the third quarter of last year. I'm excited to highlight that this represents another production record and the best ever quarterly performance at curl, surpassing the previous record, which was set in the fourth quarter of 2020 by 11,000 barrels per day gross.
Speaker 3: transcript
Speaker 3: With a record performance at Curl in the third quarter, we remain positioned to meet our full year guidance of 265 to 275,000 barrels per day.
With our record performance at curl in the third quarter, we remain positioned to meet our full year guidance of 265 to 275000 barrels per day.
Speaker 3: transcript
Speaker 3: Turning now to cash operating costs for curl, which is another positive achievement. Unit cash operating costs in the quarter were just over $20 US per barrel. A decrease of over $7 US per barrel versus the second quarter due primarily to the absence of the plan turnaround.
Turning now to cash operating cost for Kearl, which is another.
Positive achievement unit cash operating costs in the quarter were just over $20 per barrel a decrease of over $7 per barrel versus the second quarter due primarily to the absence of the planned turnaround.
Brad Corson: And there's more. Curl has also set a number of other production records in the quarter, including the highest ever single month production of 322,000 barrels per day in September. Also the highest ever august production of 283,000 barrels per day and a new daily production record of 360,000 barrels a day which was set on September 5. With the record performance at curl in the third quarter, we remain position to meet our full year guidance of 265 to 275,000 barrels per day.
Speaker 3: transcript
Speaker 3: and the higher volumes. We also saw a decrease of almost $5 US per barrel versus the third quarter of last year. Your today cash operating costs at Curl are just below $24 US dollars per barrel, which is about $5.75 US dollars per barrel lower than the same period in last year.
And the higher volumes. We also saw a decrease of almost $5 U S.
Per barrel versus the third quarter of last year.
Year to date cash operating cost accrual or just below 24 U S dollars per barrel, which is about $5 75.
U S dollars per barrel lower than the same period last year.
Speaker 3: transcript
Speaker 3: This is the trending cost we are expecting to see as we continue to work towards our target of sustainable unit cash operating costs at or below US $20 per barrel at curl. I'm very pleased to see these results and congratulations to the curl team.
This is the trend in costs, we are expecting to see as we continue to work towards our target of sustainable unit cash operating costs at or below U S $20 per barrel at Carl I am very pleased to see these results and congratulations to the <unk> team.
Brad Corson: Turning now to cash operating cost for curl, which is another positive achievement. Unit cash operating costs in the quarter were just over 20 US dollars per barrel, a decrease of over 7 US dollars per barrel versus the second quarter due primarily to the absence of the planned turnaround and the higher volumes. We also saw a decrease of almost $5 US per barrel versus the third quarter of last year. Year-to-day cash operating costs at curl are just below 24 US dollars per barrel, which is about $5.75 US dollars per barrel lower than the same period in last year. This is the trending costs we are expecting to see as we continue to work towards our target of sustainable unit cash operating costs at or below US $20 per barrel at Curl.
Speaker 3: transcript
Speaker 3: During the third quarter, we also completed the Autonomous Hall Program with all 81 of our Caterpillar 797F Heavy Hall Trucks now fully converted to Autonomous Operations.
During the third quarter. We also completed the autonomous haul program with all 81 of our Caterpillar 797 F. Heavy haul trucks now fully converted to autonomous operation.
Speaker 3: transcript
Speaker 3: With this, we now operate the largest autonomous fleet in our industry and one of the largest autonomous mining fleets in the world, which enables us to capture improvements in truck productivity, further enhance our safe operating environment, and also reduce operating costs.
With this we now operate the largest autonomous fleet in our industry.
And one of the largest autonomous mining fleets in the world, which enables us to capture improvements in truck productivity further enhance our safe operating environment and also reduce operating costs.
Speaker 3: transcript
Speaker 3: I'm very proud of what we have achieved to date with this program. And we continue to look at other potential opportunities to expand our autonomous concept to other areas of our mind-fleet.
I am very proud of what we have achieved to date with this program.
And we continue to look at other potential opportunities to expand our autonomous concept to other areas of our mine fleet.
Speaker 3: transcript
Speaker 3: This program reflects our commitment to safety, technology, and innovation, and becoming the lowest cost operator.
This program reflects our commitment to safety technology, and innovation and becoming the lowest cost operator.
Speaker 3: transcript
Speaker 3: In addition to completing the conversion of our hall trucks to autonomous operation, we also started up the fixed and final boiler, flu gas waste heat recovery unit at curl.
In addition to completing the conversion of our haul trucks to autonomous operation. We also started up the sixth and final boiler flue gas waste heat recovery unit at curl. This technology recovers waste heat from our boilers exhaust to preheat process water, resulting in less steam usage and lower green.
Brad Corson: I'm very pleased to see these results and congratulations to the Curl team. During the third quarter, we also completed the Autonomous Hall Program with all 81 of our caterpillar 797F Heavy Hall trucks now fully converted to autonomous operation. With this, we now operate the largest autonomous fleet in our industry and one of the largest autonomous mining fleets in the world, which enables us to capture improvements in truck productivity, further enhance our safe operating environment, and also reduce operating costs. I'm very proud of what we have achieved to date with this program and we continue to look at other potential opportunities to expand our autonomous concept to other areas of our mine fleet.
Speaker 3: transcript
Speaker 3: This technology recovers waste heat from a boiler's exhaust to preheat process water, resulting in less steam usage and lower greenhouse gas emissions.
House gas emissions and is one of the key initiatives underpinning, our 30% greenhouse gas intensity reduction target by 2030.
Speaker 3: transcript
Speaker 3: and is one of the key initiatives underpinning our 30% greenhouse gas intensity reduction target by 2030.
Speaker 3: transcript
Speaker 3: The six units are expected to eliminate a total of 220,000 tons of CO2 per year and also capture significant cost savings of approximately $40 million per year.
The six units are expected to eliminate a total of 220000 tons of Cotwo per year, and also capture significant cost savings of approximately $40 million per year.
Speaker 3: transcript
Speaker 3: Rapping up curl, I wanted to provide an update on the environmental protection order.
Wrapping up Carl I wanted to provide an update on the environmental protection order.
Speaker 3: transcript
Speaker 3: With respect to the work at our site, as we have previously shared, key construction work was completed in June , and we continue to assess and conduct monitoring to determine if any further mitigations are required. Our initial data shows that the mitigations are working as intended and preventing further offsite migration of impacted water.
With respect to the work at our site as we have previously shared key construction work was completed in June and we continue to assess and conduct monitoring to determine if any further mitigation are required. Our initial data shows that the mitigation are working as intended and preventing.
Brad Corson: This program reflects our commitment to safety, technology, and innovation and becoming the lowest cost operator.
Brad Corson: In addition to completing the conversion of our hall trucks to autonomous operation, we also started up the fixed and final boiler flu gas waste heat recovery unit at Curl. This technology recovers waste heat from a boiler's exhaust to pre-heat process water, resulting in less steam usage and lower greenhouse gas emissions. And as one of the key initiatives underpinning our 30% greenhouse gas intensity reduction target by 2030. The six units are expected to eliminate a total of 220,000 tons of CO2 per year and also capture significant cost savings of approximately $40 million per year.
Further off site migration of impacted water.
Speaker 3: transcript
Speaker 3: We continue to engage with the indigenous communities to ensure they are aware of the progress and to address any questions or concerns. And today, there is no indication of adverse impacts to wildlife or fish populations or risks to drinking water for local communities. So.
We continue to engage with indigenous communities to ensure they are aware of the progress and to address any questions or concerns and to date. There is no indication of adverse impacts to wildlife or fish populations or risks to drinking water for local communities.
So with that let's shift now to cold Lake.
Speaker 3: transcript
Speaker 3: Code Lake production for the second quarter, average 128,000 barrels per day, which was 4,000 barrels per day lower than the second quarter, and 22,000 barrels per day lower than the third quarter of last year.
Cold Lake production for the second quarter averaged 128000 barrels per day, which was 4000 barrels per day lower than the second quarter and 22000 barrels per day lower than the third quarter of last year.
Brad Corson: Wrapping up Curl, I wanted to provide an update on the environmental protection order. With respect to the work at our site, as we have previously shared, key construction work was completed in June and we continued to assess and conduct monitoring to determine if any further mitigations are required. Our initial data shows that the mitigations are working as intended and preventing further offsite migration of impacted water. We continue to engage with the indigenous communities to ensure they are aware of the progress and to address any questions or concerns. And today there is no indication of adverse impacts to wildlife or fish populations or risks to drinking water for local communities.
Speaker 3: transcript
Speaker 3: The lower third quarter production was primarily the result of steam cycle priming and the plan turned around at the Navier plan, which was completed last month.
The lower third quarter production was primarily the result of steam cycle timing and the planned turnaround at the <unk> plant, which was completed last month.
With the maintenance work behind us.
Speaker 3: transcript
Speaker 3: We expect co-lake to trend higher on volumes and are reiterating our guidance and expected deliver full year production in the range of 135 to 140,000 barrels per day.
We expect cold lake to trend higher on volumes.
And are reiterating our guidance and expect to deliver full year production in the range of 135 million to 140000 barrels per day.
Speaker 3: transcript
Speaker 3: Moving to the Grand Rapids Phase One project, I'm pleased to share that the critical equipment tie-ins were completed during the recent cold lake turnaround. The project is nearing completion and remains on track to achieve the accelerated startup timing with steam injection expected prior to year end.
Moving to the Grand Rapids Phase one project I am pleased to share that the critical equipment tie ins were completed during the recent cold Lake turnaround. The project is nearing completion and remains on track to achieve the accelerated startup timing with steam injection expected prior to year.
Brad Corson: So with that, let's shift now to cold lake. Cold lake production for the second quarter averaged 128,000 barrels per day, which was 4,000 barrels per day lower than the second quarter and 22,000 barrels per day lower than the third quarter of last year. The lower third quarter production was primarily the result of steam cycle timing and the plant turned around at the with the maintenance work behind us.
Bren.
Speaker 3: transcript
Speaker 3: And once fully up and running, phase one of this project is expected to deliver profitable production volumes of 15,000 barrels per day and support our emissions reduction strategy.
And once fully up and running phase one of this project is expected to deliver profitable production volumes of 15000 barrels per day and support our emissions reduction strategy.
Speaker 3: transcript
Speaker 3: So now a few comments on St. Crude. Imperial Sheriff's St. Crude production for the quarter averaged 75,000 barrels per day, which was up 9,000 barrels per day versus the second quarter, and up 13,000 barrels per day versus the third quarter of 2022.
So now a few comments on Syncrude.
Imperial share of Syncrude production for the quarter averaged 75000 barrels per day, which was up 9000 barrels per day versus the second quarter and up 13000 barrels per day versus the third quarter of 2022.
Brad Corson: We expect Co-Lake to trend higher on volumes and are reiterating our guidance and expected deliver full-year production in the range of 135 to 140,000 barrels per day. Moving to the Grand Rapids Phase 1 project, I'm pleased to share that the critical equipment tie-ins were completed during the recent Co-Lake turnaround. The project is nearing completion and remains on track to achieve the accelerated startup timing with steam injection expected prior to year-end. And once fully up and running, Phase 1 of this project is expected to deliver profitable production volumes of 15,000 barrels per day and support our emissions reduction strategy.
Speaker 3: transcript
Speaker 3: Higher production in the third quarter was primarily due to timing of the annual plan co-culture turnaround.
Higher production in the third quarter was primarily due to timing of the annual planned coker turnarounds.
Speaker 3: transcript
Speaker 3: In 2022, Stincrew's Coker turn around began in the third quarter. And in 2023, work was primarily completed in the second quarter.
In 2022, Sim crudes Coker turnaround began in the third quarter and in 2023 work was primarily completed in the second quarter.
Speaker 3: transcript
Speaker 3: In late September , work began on Syncrude's planned hydro treater turnaround, which is expected to be complete by mid-November. The impact in the fourth quarter is expected to be around 4,000 barrels per day and around $12 million in operating costs.
In late September work began on Syncrude planned hydro treater turnaround, which is expected to be complete by mid November the impact in the fourth quarter is expected to be around 4000 barrels per day and around $12 million and operating costs.
Speaker 3: transcript
Speaker 3: Lastly, the interconnect pipeline continued to add value, enabling 9,000 barrels per day of synchroote sweet premium production.
Lastly, the interconnect pipeline continue to add value, enabling 9000 barrels per day of Syncrude sweep premium production.
Which was imported over the quarter.
Brad Corson: So now a few comments on steam crew. Imperial share of steam crew production for the quarter averaged 75,000 barrels per day, which was up 9,000 barrels per day versus the second quarter and up 13,000 barrels per day versus the third quarter of 2022. Higher production in the third quarter was primarily due to timing of the annual plan co-Colcker turnaround.
Speaker 3: transcript
Speaker 3: Helping to maintain high-upgrader utilization when bitumen production experience reliability and or blend challenges throughout the world.
Helping to maintain high upgrader utilization when bitumen production experience reliability and ore blend challenges throughout the quarter.
Yeah.
Speaker 3: transcript
Speaker 3: Now let's move on and talk about the downstream. In the third quarter, we refined an average of 416,000 barrels per day, which was up 28,000 barrels a day versus the second quarter and down 10,000 barrels per day versus the third quarter of 2022, reflecting a utilization of 96%.
Now, let's move on and talk about the downstream in the third quarter. We refined an average of 416000 barrels per day, which was up 28000 barrels a day versus the second quarter and down 10000 barrels per day versus the third quarter of 2022, reflecting a utilization.
Brad Corson: In 2022, steam crew's co-Colcker turnaround began in the third quarter and in 2023 work was primarily completed in the second quarter. In late September work began on steam crew's plan hydro-treater turnaround, which is expected to be complete by mid-November. The impact in the fourth quarter is expected to be around 4,000 barrels per day and around $12 million in operating costs. Lastly, the interconnect pipeline continued to add value, enabling 9,000 barrels per day of steam crewed sweet premium production, which was imported over the quarter, helping to maintain high-upgradered utilization when vitamin production experienced reliability and or blend challenges throughout the quarter.
<unk> of 96%.
Speaker 3: transcript
Speaker 3: Coming off a second quarter that was impacted by the major turnaround in Stratcona. The third quarter has seen lower planned maintenance with the major turnaround at Sarnia, only impacting the final few weeks of the quarter. The turnaround in our Sarnia refinery and chemical plant began in mid-September. And as I mentioned, there's now mechanically complete with the facility start up underway.
Coming off of second quarter that was impacted by the major turnaround at stress Kona. The third quarter has seen lower planned maintenance with a major turnaround at Sarnia only impacting the final few weeks of the quarter.
Turnaround at our Sarnia refinery and chemical plant began in mid September and as I mentioned is now mechanically complete with the facility startup underway.
Speaker 3: transcript
Speaker 3: The costs are expected to be in line with guidance of $165 million. Year-to-date utilization of our refineries sits at 94%. So we are right on track to deliver our full-year guidance of 92 to 94% with a certain, sorry, a turnaround being completed per our plans in the fourth quarter.
The costs are expected to be in line with guidance of $165 million.
Year to date utilization of our refineries sits at 94%. So we are right on track to deliver our full year guidance of 92% to 94% with the Sarnia turnaround being completed per our plans in the fourth quarter.
Brad Corson: Now let's move on and talk about the downstream. In the third quarter we refined an average of 416,000 barrels per day, which was up 28,000 barrels a day versus the second quarter and down 10,000 barrels per day versus the third quarter of 2022, reflecting a utilization of 96%. Coming off a second quarter that was impacted by the major turnaround in Stratcona, the third quarter has seen lower planned maintenance with the major turnaround at Sarnia, only impacting the final few weeks of the quarter.
Speaker 3: transcript
Speaker 3: I recently visited our Strathcona refinery, and I'm pleased to share that the Renewable Diesel Project team is making great progress.
I recently visited our strategy Kona refinery and I'm pleased to share that the renewable diesel.
<unk> team is making great progress.
Speaker 3: transcript
Speaker 3: We've construction currently focused on completing below ground infrastructure and above ground tankage. Overall, the project continues to progress on plan with startup targeted for 2025 in line with the outlook we provided at our investor base.
With construction currently focused on completing below ground infrastructure and above ground tankage overall the project continues to progress on plan with startup targeted for 2025 in line with the outlook, we provided at our Investor day.
Speaker 3: transcript
Speaker 3: Also at Stratcono, we have successfully completed a co-processing trial and have now completed similar trials at all of our refineries. This technology has the potential to reduce carbon intensity of fuel as well as plastic products by co-processing vegetable oil and ethanol alongside conventional crude feedstocks.
Also at <unk>, we have successfully completed a co processing trial and have now completed similar trials at all of our refineries. This technology has the potential to reduce carbon intensity of fuel as well as plastic products by co processing bechtle.
Brad Corson: The turnaround in our Sarnia refinery and chemical plant began in mid-September and as I mentioned, there's now mechanically complete with the facility's startup underway. The costs are expected to be in line with guidance of $165 million. Year-to-date utilization of our refinery sits at 94%. So we are right on track to deliver our full-year guidance of 92 to 94% with the Sarnia turnaround being completed per our plans in the fourth quarter. I recently visited our Strascona refinery and am pleased to share that the renewable diesel project team is making great progress with construction currently focused on completing below-ground infrastructure and above-ground tankage.
Will oil and ethanol alongside conventional crude feedstocks.
Speaker 3: transcript
Speaker 3: Petroleum products sales in the quarter were 470,000 barrels per day, which is up 3,000 barrels per day versus the second quarter and down 6,000 barrels per day versus the third quarter of 2022.
Petroleum product sales in the quarter were 478000 barrels per day, which is up 3000 barrels per day versus the second quarter and down 6000 barrels per day versus the third quarter of 2022.
Speaker 3: transcript
Speaker 3: We continue to see gasoline demand around 90 to 95% of historical levels and jet at about 110% of historical levels. On diesel, demand in the quarter was between 80 to 85% of normal as we saw some impacts from the BC port workers strike.
We continue to see gasoline demand around 90% to 95% of historical levels and jet at about 110% of historical levels on diesel demand in the quarter was between 80% to 85% of normal as we saw some impacts from the BC port work.
Brad Corson: Overall, the project continues to progress on plan with startup targeted for 2025 in line with the outlook we provided at our investor day. Also at Strascona, we have successfully completed a co-processing trial and have now completed similar trials at all of our refineries. This technology has the potential to reduce carbon intensity of fuel as well as plastic products by co-processing vegetable oil and ethanol alongside conventional crude feedstocks. Petroleum products sales in the quarter were 470,000 barrels per day, which is up 3,000 barrels per day versus the second quarter and down 6,000 barrels per day versus the third quarter of 2022.
Strikes.
Speaker 3: transcript
Speaker 3: On crack spreads, diesel margins, strength and quarter over quarter and remained on the high end of the five year ban. Motor gasoline cracks soften toward the end of the quarter as we ended the summer driving season with cracks now sitting around the low end of the five year ban.
On crack spreads diesel margin strengthened quarter over quarter and remained on the high end of the five year band.
Gasoline cracks softened towards the end of the quarter as we ended the summer driving season with cracks now sitting around the low end of the five year band.
And that brings us to chemicals.
Speaker 3: transcript
Speaker 3: The business delivered $23 million in earnings in the third quarter, which was down $48 million versus the second quarter and down $31 million versus the third quarter of 2022. The lower earnings were driven by the gas cracker turnaround that began in mid-September, which is now mechanically complete, as well as was impacted by a softer, margin environment.
The business delivered $23 million in earnings in the third quarter, which was down $48 million versus the second quarter and down $31 million versus the third quarter of 2022, the lower earnings were driven by the gas cracker turnaround that began in mid September.
Brad Corson: We continue to see gasoline demand around 90 to 95% of historical levels and jet at about 110% of historical levels. On diesel, demand in the quarter was between 80 to 85% of normal as we saw some impacts from the BC port worker strikes. On crack spreads, diesel margins strengthened quarter over quarter and remained on the high end of the 5-year ban. Motor gasoline cracks soften toward the end of the quarter as we ended the summer driving season with cracks now sitting around the low end of the 5-year ban.
Which is now mechanically complete as.
As well as was impacted by a softer margin environment.
Speaker 3: transcript
Speaker 3: There are a couple of additional accomplishments from the quarter that I'd like to highlight. First, we released our annual Advancing Climate Solutions Report, a progress report highlighting our efforts to grow shareholder value and play a key role in a transformation to a lower emission future.
There are a couple of additional accomplishments from the quarter that I'd like to highlight.
First we released our annual advancing climate solutions report a progress report highlighting our efforts to grow shareholder value and play a key role in the transformation to a lower emission future.
Speaker 3: transcript
Speaker 3: The need for effective strategies and solutions to supply affordable, accessible, reliable energy while reducing emissions in support of a net zero future is paramount.
The need for effective strategies and solutions to supply of affordable accessible reliable energy.
While reducing emissions in support of a net zero future is paramount.
Speaker 3: transcript
Speaker 3: We also established a low carbon solution organization during the quarter. This team is focused on leveraging imperial and ex-on-mobiles unique capabilities to bring lower emission technologies like renewable fuels, hydrogen, and carbon capture and storage to markets. Helping customers meet their sustainability goals.
We also established a low carbon solution organization during the quarter. This team is focused on leveraging imperial and Exxon mobil's unique capabilities to bring lower emission technologies like renewable fuels hydrogen and carbon capture and storage to market helping.
Brad Corson: And that brings us to chemicals. The business delivered $23 million in earnings in the third quarter, which was down $48 million versus the second quarter and down $31 million versus the third quarter of 2022. The lower earnings were driven by the gas cracker turnaround that began in mid-September, which is now mechanically complete, as well as was impacted by a softer margin environment.
Customers meet their sustainability goals.
Speaker 3: transcript
Speaker 3: Next, I would like to highlight a longstanding partnership focused on Indigenous education.
Next I would like to highlight a longstanding partnership focused on indigenous education.
Speaker 3: transcript
Speaker 3: We're excited to share that this year marks 20 years of partnership between Imperial and Inspire, an Indigenous national charity that invests in the education of First Nations, Inuit and Métis people for the long-term benefit of these individuals, their families and communities across Canada.
We're excited to share that this year March 20 years of partnership between Imperial and inspire and indigenous national charity that invest in the education of first nations.
Brad Corson: There are a couple of additional accomplishments from the quarter that I'd like to highlight. First, we released our annual advancing climate solutions report, a progress report highlighting our efforts to grow shareholder value and play a key role in a transformation to a lower emission future. The need for effective strategies and solutions to supply affordable, accessible, reliable energy while reducing emissions in support of the net zero future is paramount. We also established a low carbon solution organization during the quarter. This team is focused on leveraging Imperial and Exxon mobiles unique capabilities to bring lower emission technologies like renewable fuels, hydrogen and carbon capture and storage to markets, helping customers meet their sustainability goals.
In May <unk> people for the long term benefit of these individuals their families and communities across Canada.
Speaker 3: transcript
Speaker 3: Since 2003, we have provided more than $1.8 million in funding to inspire, most of which has supported their building brighter futures. The Bursary Scholarships and Awards program. Through this program, Imperial has provided more than 500 Indigenous students with scholarships or bursary.
Since 2003, we have provided more than $1 $8 million in funding to inspire most of which has supported there bill.
Building brighter futures.
Bursaries scholarships and awards program through this program Imperial has provided more than 500 indigenous students with scholarships are bursaries.
Speaker 3: transcript
Speaker 3: We are very proud to play a role in helping break down barriers for Indigenous youth as they pursue education to achieve their highest potential. I also want to thank Inspire for being a great partner and for all they do for Indigenous youth in Canada.
We are very proud to play a role in helping breakdown barriers for indigenous youth as they pursue education to achieve their highest potential.
I also wanted to thank inspire for being a great partner and for all they do for digital use in Canada.
Brad Corson: Next, I would like to highlight a long-standing partnership focused on Indigenous education. We're excited to share that this year marks 20 years of partnership between Imperial and Inspire and Indigenous National Charity that invests in the education of First Nations, Inuit, and Métis people for the long-term benefit of these individuals, their families, and communities across Canada. Since 2003, we have provided more than $1.8 million in funding to Inspire, most of which has supported their building brighter futures, bursary scholarships and awards program.
Speaker 3: transcript
Speaker 3: So to quickly wrap up, this was a strong quarter underpinned by reliable operations and a favorable commodity price environment.
So to quickly wrap up.
This was a strong quarter underpinned by reliable operations and a favorable commodity price environment.
Brad Corson: Through this program, Imperial has provided more than 500 Indigenous students with scholarships or bursaries. We are very proud to play a role in helping breakdown barriers for Indigenous youth as they pursue education to achieve their highest potential.
Speaker 3: transcript
Speaker 3: With the major turnaround at Sarnia wrapping up, our focus is on a strong finish to the year. We remain confident in our overall guidance for the year across.
With a major turnaround at Sarnia wrapping up our focus is on a strong finish to the year, we remain confident in our overall guidance.
For the year across all of our assets.
Speaker 3: transcript
Speaker 3: And as you can see from the accelerated completion of the NCIB and the announcement today of the $1.5 billion substantial insure bid, our commitment to shareholder returns remains a priority.
And as you can see from the accelerated completion of the NCI and the announcement today of the $1 $5 billion substantial issuer bid our commitment to shareholder returns remains a priority.
Speaker 3: transcript
Speaker 3: We're also committed to delivering our plans to reduce emissions and generate value. I'm pleased to have shared our progress on Grand Rapids, the Curl Boiler, FluGAS and our Stratcona Renewable Diesel Projects. And would also note our ongoing work with the Pathways Alliance. I look forward to continuing to
We're also committed to delivering our plans to reduce emissions and generate value I am pleased to have shared our progress on Grand Rapids.
<unk> boiler flue gas and our stress Kona renewable diesel projects and would also note our ongoing work with the pathways Alliance.
I look forward to continuing to bring you updates on these.
Brad Corson: I also want to thank Inspire for being a great partner and for all they do for Indigenous youth in Canada.
Speaker 3: transcript
Speaker 3: Attractive opportunities as we continue to focus on maximizing the value of our existing businesses while at the same time Responding to the changing needs of our customers and community
Attractive opportunities as we continue to focus on maximizing the value of our existing businesses. While at the same time responding to the changing needs of our customers and communities.
Brad Corson: So to quickly wrap up, this was a strong quarter underpinned by reliable operations and a favorable commodity price environment. With the major turnaround at Sarnia wrapping up, our focus is on a strong finish to the year. We remain confident in our overall guidance for the year across all of our assets. And as you can see from the accelerated completion of the NCIB and the announcement today of the $1.5 billion substantial issuer bid, our commitment to shareholder returns remains a priority.
Speaker 3: transcript
Speaker 3: I would also like to take a moment to thank Dave Hughes, our Vice President of Investor Relations, for all of his contributions to Imperial, over his 34-year career.
I would also like to take a moment to thank Dave Hughes, our vice President of Investor Relations for all of his contributions to imperial over his 34 year career.
Speaker 3: transcript
Speaker 3: and wish him and his wife Denise all the best with his upcoming retirement. And of course, welcome Peter to his new role.
And wish him and his wife, Denise all the best with his upcoming retirement.
Of course welcome Peter.
His new role.
Speaker 3: transcript
Speaker 3: As always, I'd like to thank you once again for your continued interest and support and imperial.
As always I'd like to thank you once again for your continued interest and support and Imperial.
Speaker 3: transcript
Speaker 3: And now we'll move to the Q&A session. So I'll pass it back to Peter.
And now we'll move to the Q&A session. So I'll pass it back to Peter.
Brad Corson: We're also committed to delivering our plans to reduce emissions and generate value. I'm pleased to have shared our progress on Grand Rapids, the Curl Boiler, Flu Gas, and our Strathcona Renewable Diesel projects. And would also note our ongoing work with the Pathways Alliance.
Speaker 2: transcript
Speaker 2: Thank you, Brad. And as Brad said, we'll move into the Q&A session. As always, we'd appreciate it if you could limit yourself to one question plus a follow-up so that we can get to as many questions as possible. So with that, operator, could you please open up the following line for questions.
Thank you, Brad and as Brad said, we'll move into the Q&A session as always be depreciated, you could limit yourself to one question plus a follow up so that we can get to as many questions as possible. So with that operator could you. Please open up the phone line for questions.
Brad Corson: I look forward to continuing to bring you updates on these attractive opportunities as we continue to focus on maximizing the value of our existing businesses while at the same time responding to the changing needs of our customers and communities.
Speaker 1: transcript
Speaker 1: Yes sir, if you would like to ask a question please signal by pressing star one on your telephone.
Yes, Sir if you would like to ask a question. Please signal by pressing star one on your telephone keypad.
Speaker 1: transcript
Speaker 1: If you're using a speaker phone, please make sure your meet function is turned off to allow your signal to reach your equipment. Again, it's...
They are using a speaker phone. Please make sure your mute function is turned off your line your signals for jewelry Clinton.
Again, it is star one to ask a question, we'll pause for just a moment.
Brad Corson: I would also like to take a moment to thank Dave Hughes, our Vice President of Investor Relations for all of his contributions to Imperial over his 34-year career and wish him and his wife Denise all the best with his upcoming retirement. And of course, welcome Peter to his new role. As always, I'd like to thank you once again for your continued interest and support in Imperial.
Speaker 1: transcript
Speaker 1: We'll go to our first question from Greg Party with RBC Capital.
We'll go to our first question from Greg Pardy with RBC capital markets.
Speaker 4: transcript
Speaker 4: Hey, thanks. Good morning. And Brad, thanks very much for the rundown. I guess you're letting Mr. Hughes go, but Dave, listen, all the, all the very best. And don't be a stranger when you come into Toronto and welcome Peter. There was really just one area I wanted to dig in because obviously it's a pretty strong quarter. Well, actually two areas, I guess the 1st is.
Hey, Thanks, good morning, and breath, thanks, very much for the rundown I guess.
We're letting Mr. Hughes go, but Dave listen all the all the very best in don't be a stranger when you come into Toronto and welcome Peter.
There was really just one area I wanted to dig in because obviously, it's a pretty strong quarter.
Peter Shaw: And now we'll move to the Q&A session, so I'll pass it back to Peter. Thank you, Brad.
Two areas I guess, the first is <unk>.
Peter Shaw: And as Brad said, we'll move into the Q&A session. As always, we'd appreciate it if you could limit yourself to one question plus a follow-up so that we can get to as many questions as possible.
Speaker 4: transcript
Speaker 4: How much of an inventory impact do you feel in the downstream as a result, the inventory changes that you referred to earlier? And then completely shifting gears is it relates to curl? How is that working mechanically now that you've moved to autonomous halls? Does that mean that you are redepointing drivers or have you been redepointing drivers, or how does it work on different shifts? Or are you actually reducing headcount there? So a lot of questions, but any color would be great.
How much of an inventory impact due to feel in the downstream.
As a result of the inventory changes that you referred to earlier and then completely shifting gears as it relates to curl.
Operator: So with that, operator, could you please open up the following line for questions? Yes, sir. If you would like to ask a question, please signal by pressing star 1 on your telephone keypad. If you're using a speaker phone, please make sure your mute function is turned off Victoria Equipment. Again, it is Star One to ask a question. We'll pause for just a moment.
How is that working mechanically now that you've moved to autonomous haul does that mean that you're redeploying drivers or have you been redeploying drivers or how does it work on different shifts or are you actually reducing head count there. So a lot of questions, but any color would be great.
Yes, Thanks, Greg.
Speaker 3: transcript
Speaker 3: And and first, you know, I appreciate you acknowledging the strong quarter we had, you know, in terms of your specific questions.
And first.
Greg Pardy: We'll go to our first question from Greg Pardy with RBC Capital Markets. Hey, thanks. Good morning, and Brad, thanks very much for the rundown. I guess you're letting Mr. Hughes go, but Dave, listen, all the very best and don't be a stranger when you come into Toronto and well-computer. There was really just one area I wanted to dig in, because obviously it's a pretty strong quarter, actually two areas. I guess the first is how much of an inventory impact do you feel in the downstream, as a result, the inventory changes that you referred to earlier, and then completely shifting gears as it relates to curl?
I appreciate you acknowledging the strong quarter, we had.
In terms of your specific questions.
Speaker 3: transcript
Speaker 3: you know, on an inventory, you know, that's
Yes.
On inventory.
Speaker 3: transcript
Speaker 3: That's been an ongoing factor now for several quarters with regard to diesel margins and spreads and...
That's been an ongoing factor now for several quarters with regard to diesel margins and spreads.
Speaker 2: transcript
Speaker 2: You know, I don't know that we have a, an explicit quantification on that, but it's clearly a factor as we've seen reducing, you know, inventory levels globally. Yeah, yeah, yeah, say something. And maybe, Brad, I think you're referring to kind of the deferred tax impact, is that right? I think so.
I don't know that we have a an explicit quantification on that but it is what it is clearly a factor as we've seen reducing.
Inventory levels globally.
Yes, yes, a something that may be great I think youre, referring to kind of a deferred tax impact that rate.
I think so.
Right.
Greg Pardy: How is that working mechanically now that you've moved to autonomous hall? Does that mean that you were redepoint drivers or have you been redepoint drivers, or how does it work on different shifts? Or are you actually reducing headcount there? So a lot of questions, but any color would be great. Yeah, thanks, Greg. And first, I appreciate you acknowledging the strong quarter we had. In terms of your specific questions on inventory, that's been an ongoing factor now for several quarters with regard to diesel margins and spreads.
Speaker 5: transcript
Speaker 5: Yeah, it's a pretty big number, $168 million. And
Yes.
It's a pretty big number $168 million and.
Speaker 5: transcript
Speaker 5: you know, I would characterize it as noise, you know, if you look at, you know, we report on a life-boat basis sort of a historical inventory in our earnings, but we pay tax.
I would characterize it.
As noise, if you look at.
We reported on a LIFO basis sort of historical inventory in our earnings, but we pay tax on a weighted average cost basis and the tax value of inventory will go up and down with prices right in and if you look at that to get to Jack when you look at the price increase quarter to quarter, maybe Ken box when you look at.
Speaker 5: transcript
Speaker 5: on a weighted average cost basis, and the tax value of inventory will go up and down with prices, right? And if you look at, you know, not to get too taxically, look at the price increase quarter to quarter, maybe 10 bucks, but you look at,
Speaker 5: transcript
Speaker 5: The last month of each quarter, which more matters for inventory valuations about 20 bucks. So there's a pretty big price movement in the inventory valuation and inventory levels increased somewhat to turn around activity.
At the last month of each quarter, which more matters for inventory valuations about 'twenty box. So there is a pretty big price movement in the inventory valuation and inventory levels increased somewhat due to turnaround activity. So you see this kind of big factor driven by those increase was primarily I mean, we only do deferred taxes.
Greg Pardy: And, you know, I don't know that we have an explicit quantification on that, but it's clearly a factor as we've seen reducing inventory levels globally. Yeah, yeah, yeah, say something. And maybe, Greg, I think you're referring to the kind of deferred tax impact, is that right? I think so. Yeah, it's a pretty big number, 168 million dollars. And, you know, I would characterize it as noise. You know, if you look at, you know, where we report on a LIFO basis sort of a historical inventory in our earnings, but we pay tax on a weighted average cost basis.
Speaker 5: transcript
Speaker 5: So you see this kind of big factor driven by those increases. Primarily, I mean, we only do the fur taxes for Imperial as a whole, but it's primarily driven by impact.
For imperial as a whole, but it's primarily driven by impacts in the downstream because they hold most of the inventory, but it really is the price increase from June and June versus September as well as some temporarily higher inventory levels. So.
Speaker 5: transcript
Today's prices you'd expect to see that reverse out so that's that $168 million thats, where that comes from primarily its deferred tax it back theres other things in there, but primarily this tam.
Speaker 2: transcript
Speaker 2: This, you know, tax valuation, inventory at weighted average cost and our normal life owe that we use for earnings. I know the answer to your question. Yes.
Tax valuation of inventory at weighted average cost in our normal LIFO that we use for earnings if that answers your question.
Greg Pardy: And the tax value of inventory will go up and down with prices, right? And, and if you look at, you know, about to get to technically look at the price increase quarter to quarter, maybe 10 bucks. But you look at the last month of each quarter, which more matters for inventory valuations about 20 bucks. So there's a pretty big price movement in the inventory valuation and inventory levels increase somewhat to turn around activity.
Yes, no that's great. Thanks, a lot.
Speaker 3: transcript
Speaker 3: Yeah, thanks, thanks for stepping in on that one day. And I was clearly on the wrong track thinking more broadly about World Trade Marcus factors.
Yeah. Thanks, Thanks for stepping in on that one and I was clear there will be on the wrong track thinking more broadly about global market factors impacting impacting diesel so thanks for that.
Speaker 3: transcript
Speaker 3: impacting diesel. So thanks for that. Yeah, we got to say, well, it doesn't reflect an actual cash payment. It's sort of the accrual of what our cash taxes would be at those closing prices. So it's a little bit flaky, but you know, it's obviously the numbers correct, but we'd expect that to bounce around. This is quite high and we expect, you know, a current price is you see a reversal, but we'll see. Sorry Brad. Yeah, no, no, where's it all? And on your second question regarding the autonomous hall program at Curl, you know, we are, we are super.
It doesn't reflect an actual cash payment at sort of the accrual of what our cash taxes would be at those closing prices. So it's a little bit flaky.
Greg Pardy: So you see this kind of big factor driven by those increases primarily. I mean, you know, we only do deferred taxes for imperial as a whole, but it's primarily driven by impacts in the downstream, because they hold most of the inventory. But it really is the price increase from June and June versus September, as well as some temporarily higher inventory levels. So, you know, at today's prices, you'd expect to see that reverse out.
These numbers correct, but we would expect that to bounce around this is quite high and we expect our current prices you'd see a reversal, but we will say sorry, Brad yeah, no worries at all.
And on your second question regarding the autonomous haul program material.
We are super excited about that we've been working on this now for for several years and to finally complete all of the conversion of the trucks allows us to really make a step change in all of those kind of been a beneficiary components that have been driving.
Speaker 3: transcript
Speaker 3: Excited about that we've been working on this now for for several years and to finally complete all of The conversion of the trucks allows us to really make a step change in all of those
Greg Pardy: So that's to that 168 million, that that's where that comes from primarily. It's deferred tax impact. There's other things in there, but primarily this, you know, tax valuation inventory at weighted average cost and our normal LIFO that we use for earnings. I hope that answers your question. Thank you. Yeah, I know, Dan, that's great. Thanks a lot. Yeah, thanks, thanks for stepping in on that one, Dan. I was clearly on the wrong track thinking more broadly about well-paid market factors impacting, impacting diesel.
Speaker 3: transcript
Speaker 3: kind of beneficiary components that have been driving us, you know. I mean, things around truck productivity, things around unit operating costs. And of course, there is this.
Us.
I mean things around truck productivity things around unit operating costs and of course, there is this broader.
Speaker 6: transcript
Speaker 6: broader safety benefit that comes with it. You know, specific to your question on staffing, you know, we have definitely worked to deploy staff related to that, but I'll, Simon's here with me. Maybe Simon can talk a little bit more specifically about kind of our strategy there. Yeah, thanks, Brad. I can give a little bit more color to that. I mean, the milestone that Brad mentioned is reaching the point where we've now converted all of our 81 heavy hull trucks to autonomous.
Safety benefit that comes with it.
Specific to your question on staffing.
We are definitely work to deploy staff.
Greg Pardy: So thanks for that. Yeah, we got to say, well, it doesn't reflect an actual cash payment. It's sort of the accrual of what our cash taxes would be at those closing prices. So it's a little bit flaky, but you know, it's obviously numbers correct, but we'd expect that to bounce around. This is quite high, and we expect, you know, a current crisis, you see a reversal, but we'll say sorry Brad. Yeah, no, no, where's it all?
Later that but ill Simon.
Assignments here with me, maybe Simon can talk a little bit more specifically about kind of our strategy. There yeah. Thanks, Brett I can I can give a little bit more color to that I mean, the milestone that Brad mentioned is reaching the point, where we've now converted all of our <unk> heavy haul trucks to autonomous but as you would've heard that's taken.
Speaker 6: transcript
Speaker 6: But as you would have heard, you know, that's taken place over several years. So if you think about sort of a significant step change in staffing associated with that, that's not really the case.
Brad Corson: And on your second question regarding the autonomous hall program, Accurl, you know, we are, we are super excited about that. We've been working on this now for for several years and to finally complete all of the conversion of the trucks allows us to really make a step change in all of those kind of benefit. Beneficiary components that have been driving us, you know, I mean, things around truck productivity, things around unit operating costs, and of course there is this broader safety benefit that comes with it, you know, specific to your question on on staffing, you know, we have definitely worked to deploy staff related that, but I'll assignments here with me.
What's taken place over several years. So if you think about sort of a significant step change in staffing associated with that thats not really the case.
As we have.
Speaker 6: transcript
Speaker 6: autonomized the trucks over several years. There has been a headcount reduction. We've also, as Brad said, redeployed a number of truck drivers onto other mining equipment. Some of them have gone into the autonomous control room and are now delivering value that way. So it's kind of a combination, but not a significant step change, you know, from quarter to quarter or from year to year.
<unk> the trucks all over several years there has been a a head count reduction we've also as Brad said.
We redeployed a number of a number of truck drivers onto other mining equipment. Some of them have gone into the autonomous control room.
Now delivering value that way.
So it's kind of a combination, but not a not a significant step change from quarter to quarter or from well from year to year, but.
Speaker 6: transcript
Speaker 6: Headcount reduction is definitely, or headcount efficiencies I'll call it, is definitely one of the value drivers for autonomous, but it's by no means the most significant. It's in fact, it's one of the more minor drivers. Really the bulk of the value comes from productivity improvement that we're able to realize.
Head count reduction is definitely or head count efficiencies I'll call. It is definitely one of the.
Simon Younger: Maybe Simon can talk a little bit more specifically about kind of our strategy there. Yeah, thank you. Thanks Brad, I can give a little bit more color to that. I mean, the milestone that Brad mentioned is reaching the point where we've now converted all of our 81 heavy haul trucks to autonomous, but as you would have heard, you know, that's taken, that's taken place over several years. So if you think about sort of a significant step change in staffing associated with that, that's not really the case.
One of the value drivers for autonomous, but it's by no means the most significantly in fact, it's one of the more minor drivers really the bulk of the value comes from productivity improvement that we're able to realize.
Simon Younger: As we've autonomous the trucks over several years that there has been a head count reduction, we've also, as Brad said, redeployed a number of a number of truck drivers onto other mining equipment, some of them have gone into the autonomous control room and a now delivering value that way. So it's kind of a combination, but not a not a significant step change, you know, from quarter to quarter or from all from year to year, but head count reduction is definitely or head count efficiencies, I'll call it is definitely one of the one of the value drivers for autonomous, but it's by no means the most significant.
Speaker 6: transcript
Speaker 6: through the autonomous program. If you think about that dollar or barrel plus of cost benefit that we're driving it curl through the autonomous hall program.
Through the autonomous fragrance, if you think about that dollar a barrel plus of cost benefit that we're driving at co through the autonomous whole program.
Speaker 6: transcript
Speaker 6: The majority of that comes from improved efficiency and productivity of the equipment. Thank you very much.
The majority of that comes from improved efficiency and productivity of the equipment.
Understood. Thanks, very much for that.
Thanks, Greg.
We will go next to Nandan <unk> with UBS.
Speaker 1: transcript
Speaker 1: We'll go next to Manav Gupta with UBS.
Speaker 7: transcript
Speaker 7: First just wanted to thank Dave over the years. Very helpful in helping us with the information modeling and everything. So thank you for that and
First just wanted to thank Dave Liberty is very helpful in helping us there.
The inflammation modeling and everything so thank you for that and then compete it.
Speaker 7: transcript
Speaker 7: Welcome, Peter, to the new job. My question here, I'll start with one macro. Your opening statement said that in the near term, we have seen some widening of the WCS differential.
And your job.
My question here and I'll start with one macro your opening statement that in the near term we have seen some widening of the WCS differential but the outlook for Ed Chris is positive if you could elaborate on those two things what is driving the wider spread right now and where are we in the process of aircrafts.
Speaker 7: transcript
Speaker 7: But the outlook for Aggress is positive. If you could elaborate on those two things, what is driving the wider spread right now? And where are we in the process of Aggress? Because we hear a lot of information, what's the latest on TMX that you have an update on?
Simon Younger: In fact, it's one of the more minor drivers, really the bulk of the value comes from productivity improvement that we're able to realize through the autonomous program. If you think about that dollar a barrel plus of cost benefit that we're driving at curl through the autonomous haul program, the majority of that comes from improved efficiency and productivity of the equipment. I just said thanks very much for that. Thanks, Greg.
Does he had a lot of information what's the latest on payer mix that you have an update on <unk>.
Speaker 3: transcript
Speaker 3: Yeah, thanks for those questions, Minna. First on the widening WCS, will you look back?
Yes, thanks for those questions Matt.
First on the widening WCS.
Look back.
Speaker 3: transcript
Speaker 3: over the quarter, you know, because the beginning of the quarter we're seeing pretty tight different shows.
Over the quarter.
At the beginning of the quarter, we're seeing pretty tight differential Saab.
Speaker 3: transcript
Speaker 3: you know, I don't know if $15 or so. But as we got to the end of the quarter, we have seen those wine. And I'd say a couple of factors are driving that. You know, one is...
Yeah, No I don't know in dollars.
Or so.
But as we got to the end of the quarter, we have seen those wine and I'd say a couple of factors are driving that.
Amanda: We're going next, Amanda. Good job with UBS.
Menno Hulshof: First just wanted to thank Dave over the years, very helpful in helping us with the information modeling and everything, so thank you for that and welcome Peter to the new job. My question here, I'll start with one macro, your opening statement said that in the near term, we have seen some widening of the WCS differential, but the outlook for aggressive is positive. If you could elaborate on those two things, what is driving the wider spread right now and where are we in the process of aggressive because we hear a lot of information, what's the latest on TMX that you have an update on.
One is.
Speaker 3: transcript
Speaker 3: us included, you know, we have completed our major turnarounds for the year. And that is resulting in, you know, more Canadian production available to move to our customers. And on top of that.
US included.
We have completed our major turnarounds for the year and that is resulting in.
More Canadian production available.
To move to our customers.
And on top of that.
Speaker 3: transcript
Speaker 3: We do see that we're still in a refinery maintenance period, not just in Canada, but in the US. Several refineries are undergoing maintenance. But again, those are, you know, that's kind of a short-term effect, and we would expect to see, you know, more of a balance as we move to the end of the year. And then on top of that,
We do see that.
We're still in a refinery maintenance period.
Not just in Canada, but in the U S. Several refineries are undergoing maintenance.
Menno Hulshof: Yeah, thanks for those questions, Menno. First on the widening WCS, when you look back, over the quarter, you know, at the beginning of the quarter, we're seeing pretty tight different shows, you know, I don't know if it's in dollars or so, but as we got to the end of the quarter, we have seen those wine, and I'd say a couple of factors are driving that, you know, one is us included, you know, we have completed our major turnarounds for the year, and that is resulting in, you know, more Canadian production available to move to our customers.
But again those are that's kind of a short term effect and we would expect to see.
More of a balance.
As we move to the end of the year and then on top of that.
Speaker 3: transcript
Speaker 3: with regard to your second question on egress, we're quite encouraged by the progress that TMX is making. And what we've heard is that they expect to start up around the end of the first quarter next year. And I know.
With regard to your second question Rod egress.
We're quite encouraged by the progress that <unk> is making.
And what we've heard is that they expect to start up.
Around the end of the first quarter next year.
And I know.
Speaker 3: transcript
Speaker 3: from what I've heard, they are over 95% complete. There's relatively small sections of pipeline left for construction and then they'll be moving into the commissioning line fill mode. So we view all that as very positive from a egress standpoint.
What I've, what I've heard they are.
Over 95% complete there's relatively small section of pipeline left for construction and then there'll be moving into the <unk>.
Commissioning line fill bulk.
Menno Hulshof: And on top of that, we do see that we're still in a refinery maintenance period, not just in Canada, but in the US, several refineries are undergoing maintenance. But again, those are, you know, that's kind of a short-term effect, and we would expect to see, you know, more of a balance as we move to the end of the year, and then on top of that, with regard to your second question on egress, you know, we're quite encouraged by the progress that TMX is making, and what we've heard is that they expect to start up around the end of the first quarter next year, and, you know, I know from what I've heard, you know, they are over 95% complete, you know, there's relatively small sections of pipeline left for construction, and then they'll be moving into the, you know, commissioning line fill mode. So we view all that as very positive from, from a egress standpoint.
So we view all that as very positive from from the egress standpoint.
Speaker 8: transcript
Speaker 8: click FREE SHERE
Perfect.
I will say is.
Okay.
Sorry go ahead.
Speaker 7: transcript
Speaker 7: No, my second quick follow up here was sometime back your operating partner has tatted on over the Synclude operations from the entity and you guys had both expressed confidence in terms of the synergy benefits of that. Where are we in that cycle in terms of, you know, the benefits that come from your actual operating partner taking over the Synclude project?
My second quick follow up here.
Some time back Keeler operating partner has technique on Hulu the Syncrude operations from the entity and you guys had both express confidence in terms of the synergy benefits of that where are we in that cycle in terms of the benefits that come from your actual operating partner taking over the same.
<unk> project.
Yes, thanks for that and just to close out the other comment I was going to make on.
Speaker 3: transcript
Speaker 3: Yeah, thanks for that. And just to close out the other comment I was going to make on WCS and egress is as we see that TMAX come online, you know, we do see that as favorable, supportive of a tighter differential. So as we look to next year, we do expect tightening versus where we are today.
On WCS and egress is as we see that <unk> come online.
We do see that as favourable supportive of a tighter differentials. So as we look to next year, we do expect tightening versus where we are today.
Speaker 3: transcript
Now on Syncrude benefits as we've said that's up that's a multiyear journey.
Brad Corson: Perfect. My quick follow-up here was sometime back, your operating partner has taken over the Synclude operations from the entity, and you guys had both express confidence in terms of the synergy benefits of that. Where are we in that cycle in terms of, you know, the benefits that come from your actual operating partner taking over the Synclude project? Yeah, thanks for that. And just to close out the other time, and I was going to make on on WCS and egress, is as we see that TMX come online, you know, we do see that as favorable, supportive of a tighter differential.
And we're working closely with.
Suncor, the operator to achieve.
Speaker 3: transcript
Speaker 3: to achieve a wide range of benefits starting with improved reliability.
Wide range of.
Benefits, starting with improved reliability.
Speaker 3: transcript
Speaker 3: also reduce cost structure. And we are seeing progress. You think about last year, last year's production was a record high year for us and for the asset. So that's an indication that we are making progress on reliability. We're seeing last.
Also reduce cost structure and we are seeing progress you think about last year.
Last year's production was a record high year for us and for the asset.
So that's an indication that we are making.
Progress on the liability.
We're seeing less unplanned downtime events, which I think is positive.
Speaker 3: transcript
Speaker 3: unplanned downtime events, which I think is positive.
Speaker 3: transcript
Speaker 3: We still see a big opportunity with operating costs.
We still see a big opportunity with operating costs and Thats, probably the biggest challenge ahead of us and we're working closely with Suncor to continue to look for opportunities to drive those cost structures down so that the asset could be more.
Speaker 3: transcript
Speaker 3: And that's probably the biggest challenge ahead of us. And we're working closely with SunCore to continue to look for opportunities.
Brad Corson: So as we look to next year, we do expect tightening versus where we are today. Now, on Synclude benefits, you know, as we said, that's a multi-year journey, and, you know, we're working closely with SunCore, the operator, to achieve, you know, a wide range of benefits starting with improved reliability, also reduced cost structure, and we are seeing progress. You know, you think about last year, last year's production was a record high year for us and for the asset.
Speaker 3: transcript
Speaker 3: to drive those cost structures down, so that the asset could be more competitive on a cost basis. But we are seeing progress, but there's still a long ways to go.
Brad Corson: So that's an indication that we are making progress on reliability. We're seeing less unplanned downtime events, which I think is positive. We still see a big opportunity with operating costs, and that's probably the biggest challenge ahead of us, and we're working closely with SunCore to continue to look for opportunities to drive those cost structures down so that the asset could be more competitive on a cost basis, but we are seeing progress, but there's still a long ways to go.
Competitive on a cost basis.
But we are seeing progress, but theres still a long ways to go.
Thank you so much for the responses.
Speaker 1: transcript
Speaker 1: Thank you. We're going to next to Dennis Spong with CIVC World Market.
Thank you we will go next well go next to Dennis Fong with CIBC World markets.
Speaker 9: transcript
Speaker 9: Hi, good morning and thanks for taking my questions again. Also, 1st off, congrats Dave on your retirement and welcome Peter to the new role.
Hi, and good morning, and thanks for taking my questions again also first off congrats Dave on your retirement and welcome Peter to the new role.
Menno Hulshof: Thank you so much for the responses.
Speaker 9: transcript
Speaker 9: The first question they have is more focused around curl. Obviously, that's great to hear that the fold of plume into Vaton Miss Hall.
The first question I have is.
It's more focused on kearl.
Obviously, that's great to hear that the full deployment of autonomous haul has been quiet.
Menno Hulshof: Thank you.
Speaker 9: transcript
Speaker 9: has been quite, has been completed across that asset. When we think about things, I know at your investor day, you outlined a bunch of digital technology, including shovel and truck analysis, that allows other aspects that likely help support, or are supported by H.S. How do we think about where...
It has been completed across that asset when we think about things I know at your Investor Day, you outlined a bunch of digital technology, including shovel on truck analysis as well as other aspects that likely help support or are supported by Hs, how do we think about where.
Speaker 9: transcript
Speaker 9: production and productivity could potentially get to and how far of you, or how much of you captured of that $1 barrel that's far.
Production and productivity could potentially get to and how far have you or how much have you captured all of that $1 a barrel thus far.
Speaker 3: transcript
Speaker 3: Yeah, I'll make a couple of comments and then I'll let Simon maybe add a little more color to it.
Yeah, I'll make a couple of comments and then I'll, let Simon maybe add a little more color to it.
<unk>.
Speaker 3: transcript
Speaker 3: You know, first of all, in terms of the journey we're up.
First of all in terms of the journey we're on.
Dennis Fong: Welcome next to Dennis Fong with CIBC World Markets. Hi, good morning and thanks for taking my questions.
Speaker 3: transcript
Speaker 3: You know, as you're aware from our investor day and other discussions, our guidance for this year is 265 to 275,000 barrels per day. We're on path to achieve that.
As you are aware from our Investor day, and other discussions our guidance for this year is 265 to 275000 barrels per day.
Brad Corson: Again, also first off, congrats Dave on your retirement and walk-computer to the new role. The first question I have is more focused around curl. Obviously, that's great to hear that the full deployment of autonomous hall has been quite, has been completed across that asset. When we think about things, I know at your investor day, you outlined a bunch of digital technology, including Shuffle and Truck Analysis, as well as other aspects that likely help support or are supported by AHS.
Were on path to achieve that.
Speaker 3: transcript
Speaker 3: you know, which is great recovery from some of the
Which is great recovery from some of the.
Speaker 3: transcript
Speaker 3: You know, the operational challenges we had last year and puts us back on track to this journey to 280,000 and as we said at our investor day, we expect to achieve 280,000 barrels a day next year.
The operational challenges, we had last year.
And puts us back on track to this journey to 280000. It is as we said at our Investor Day, we expect to achieve 280000 barrels a day next year and then looking beyond that although we haven't put a specific timeline, we do see the potential to achieve.
Speaker 3: transcript
Speaker 3: And then looking beyond that, although we haven't put a specific timeline, we do see the potential to achieve.
Brad Corson: How do we think about where production and productivity could potentially get to and how far have you or how much have you captured of that $1 barrel that's far? Yeah, I'll make a couple of comments and then I'll let Simon maybe add a little more color to it. You know, first of all, in terms of the journey we're on, you know, as you're aware from our investor day and other discussions, our guidance for this year is 265 to 275,000 barrels per day.
Speaker 3: transcript
Speaker 3: 300,000 barrels a day. And certainly things like autonomous hall.
<unk>.
300000 barrels a day and certainly things like autonomous haul leveraging technology are all.
Speaker 3: transcript
Speaker 3: leveraging technology or all, you know, integral components to achieving those higher.
<unk>.
Integral components to achieving those higher volumes, but maybe Simon can add a little more detail around some of the other autonomous things we're doing.
Speaker 3: transcript
Speaker 3: add a little more detail around some of the other autonomous things we're doing and other technology applications.
Other technology applications.
Speaker 3: transcript
Speaker 3: you know, at the mine or elsewhere in the asset. Yeah, yeah, happy to. Thanks, Brett. I think...
At the mine or elsewhere, and the asset yeah, Yeah happy to thanks, Brent I think.
Speaker 6: transcript
Speaker 6: Actually earlier in the year, I shared one example of where we're looking elsewhere for the benefits of autonomy and I foreshadowed that we were going to do a trial of autonomous doses and in fact we've now
Brad Corson: We're on path to achieve that. You know, which is great recovery from some of the, you know, the operational challenges we had last year. And puts us back on track to this journey to 280,000. And as we said at our investor day, we expect to achieve 280,000 barrels a day next year. And then looking beyond that, although we haven't put a specific timeline, we do see the potential to achieve 300,000 barrels a day.
Earlier in the year I shared one example of where we're looking elsewhere for the benefits of autonomy and I foreshadowed that we would we're going to do a trial of autonomous doses and in fact, we've now done some of that trial work and got really encouraging results, particularly now in a tailings area.
Speaker 6: transcript
Speaker 6: Done some of that trial work and got really encouraging results, particularly now in our tailings area. We think remote control dosing has some significant potential.
We think remote control dosing has had some significant potential.
Speaker 6: transcript
Speaker 6: We just continue to see enormous potential in this part of the business.
We just continue to see enormous potential in this part of the business, but sort of bigger picture just to build a bit more on what Brad was sharing.
Speaker 6: transcript
Speaker 6: That sort of bigger picture just to build a bit more on what Brad was was sharing.
Speaker 6: transcript
Speaker 6: You know, that journey to 280,000 barrels a day next year, the curl is really driven through two main levers. But the first is reliability.
Brad Corson: And certainly things like autonomous hall, leveraging technology or all, you know, integral components to achieving those higher volumes. But maybe Simon can add a little more detail around some of the other autonomous things we're doing and other technology applications, you know, at the mine or elsewhere in the asset.
That journey.
<unk> <unk> thousand barrels a day next year for coal is really driven through two main levers the first is reliability.
Speaker 6: transcript
Speaker 6: and uptime and mainly there it's optimizing the scheduled work that we do and minimizing, you know, reducing the amount of scheduled work that we do to just continue to increase incrementally the annual capacity and production of the plant. And then the other key lever is productivity and I would tell you that an enormous underpinner of that is our digital efforts.
And uptime and mainly there it's optimizing the scheduled work that we do of minimizing reducing the amount of scheduled work that we do to just continue to increase incrementally be the annual capacity and production of the plant and then the other key labor is productivity I would tell you that an enormous under.
Simon Younger: Yeah, happy to. Thanks, but I think actually earlier in the year, I shared one example of where we're looking elsewhere for the benefits of autonomy. And I thought shadowed that we were going to do a trial of autonomous doses. And in fact, we've now done some of that trial work and got really encouraging results, particularly now in our tailings area. We think remote control dosing has some significant potential. So we just continue to see enormous potential in this part of the business.
<unk> of that is our digital efforts and our digital efforts really are focused in three areas. It's analytics, what what can we glean from and do with the data the vast amounts of data that we have so analytics is a huge driver productivity.
Speaker 6: transcript
Speaker 6: You know, now digital efforts really are focused in three areas. It's analytics, what can we glean from and do with the data, the vast amounts of data that we have. So analytics is a huge driver. Productivity improvements, as we've talked.
<unk> improvements as we've talked about.
Speaker 6: transcript
Speaker 6: making our work as more productive, more effective by putting digital tools in their hands.
Making our work is more productive more effective by putting digital tools in their in their hands.
Speaker 6: transcript
Speaker 6: And then applying digital technology, like the remote dosing that I mentioned, but using drones for internal vessel inspections, things like that, which are making maintenance and schedule work more efficient and quicker to do so.
Then applying digital technology like the remote <unk> that I mentioned, but using drawings for internal vessel inspections things like that which are making maintenance and scheduled work more efficient and quicker to do so.
Simon Younger: But sort of bigger picture, just to build a bit more on what Brad was sharing, you know, that journey to 280,000 barrels a day next year for curl is really driven through two main levers. But the first is reliability and uptime and mainly there, it's optimizing the scheduled work that we do and minimizing, you know, reducing the amount of scheduled work that we do to just continue to increase incrementally the annual capacity and production of the plant.
Speaker 6: transcript
Speaker 6: That's the continued focus of our digital program. It's a huge driver of us getting, you know, achieving our journey to 280 KBD at the asset next year. And then of course, this is Brad said looking beyond that. You know, specifically to the autonomous hall, there was a question, I think part of the question was on that. I would say...
That's the continued focus of our digital program.
It's a huge driver of us getting at journey, achieving our journey to 290 <unk>. The asset next year and then of course as Brad said looking beyond that.
Specifically to the autonomous haul, though there was a question I think part of the question was on that I would say we.
Speaker 6: transcript
Speaker 6: We haven't yet achieved all of the $1 barrel, but we've achieved the majority of that.
Simon Younger: And then the other key lever is productivity. And I would tell you that an enormous underpinner of that is our digital efforts. You know, in our digital efforts really are focused in three areas. It's analytics. What can we glean from and do with the data, the vast amounts of data that we have. So analytics is a huge driver productivity improvements, as we've talked about, making our workers more productive, more effective by putting digital tools in their hands.
Haven't yet achieved all of the the $1 a barrel but.
Simon Younger: And then applying digital technology like the remote dosing that I mentioned, but you know, using drones for internal vessel inspections things like that, which are making maintenance and and and schedule work more efficient and quick. It's a to do so that's that's the continued focus of our digital program. It's a huge driver of a getting you know, journey, achieving our journey to 280 KBD at the asset next year. And then, of course, as Brad said, looking beyond that.
Outside we've achieved the majority of that.
Speaker 6: transcript
Speaker 6: And it was a little bit more to go, but I would also, see if there's upside relative to that as well. So, you know.
And so there's a little bit more to guide, but I would also say there is upside relative to that as well.
Sorry.
Speaker 6: transcript
Speaker 6: I'm sure you can tell we're very bullish on the autonomous technology.
I'm sure you can tell we're very bullish on the autonomous technology.
Speaker 9: transcript
Speaker 9: No, great, great. Appreciate that, that, that, color and context.
No great great I appreciate that color and context.
Speaker 9: transcript
Speaker 9: I guess a quick follow up there on curals specifically. As we enter the winter season, I know you've highlighted a multitude of strategies to improve the winterization of the facility. Is there anything further that you've kind of greened or applied or added to the asset that could help again, kind of continue the strength of operations that you've seen thus far and obviously
I guess, a quick follow up there on on Karl specifically.
We entered the winter season, I know you highlighted a multitude of strategies to improve the winter Ization of the facility is there anything further that you've kind of gleaned or applied or added to the asset that could help again.
Kind of continue the strength of operations that <unk> seen thus far and obviously.
Speaker 9: transcript
Speaker 9: better temperatures. And as we kind of get into December , January and February , which are obviously challenging months, how are you gonna further help moderate any, we'll call it negative impacts around extreme colder temperatures. Thanks.
Better temperatures and as we kind of got into December January and February which are obviously challenging months. How are you going to further help moderate any I'll call it negative impacts around extreme colder temperatures.
Simon Younger: You know, specifically to the autonomous hall, there was a question, I think part of the question was on that I would say, we haven't yet achieved all of the one dollar a barrel, but, but we're, I'd say we've achieved the majority of that. And there's a little bit more to go, but I would also see this upside relative to that as well. So, you know, I'm sure you can tell we're very bullish on on the autonomous technology. No, great, appreciate that, that color and context.
Speaker 6: transcript
Speaker 6: I'll let Simon kind of discuss that in more detail. Yeah, I mean, I guess the key message there is we again feel well positioned, going into this winter.
I'll, let Simon.
Kind of discuss that in more detail.
I guess the key message there is we again feel well positioned.
Going into this winter.
Speaker 6: transcript
Speaker 6: based on the learnings that we had from the prior two winters ago and then the successful application of those learnings and mitigations this past winter. There's not a huge amount new or different that we plan to do this year, although we do have some additional equipment deployed. We've got an additional shovel in the mine that we...
Based on the learnings that we had from the prior two.
Two winters ago, and then and then the successful application of those learnings and litigations.
Simon Younger: I guess a quick follow-up there on, on curl specifically. As we enter the winter season, I know you've highlighted a multitude of strategies to improve the winterization of the facility. Is there anything further that you've kind of greener applied or added to the asset that could help again kind of continue the strength of operations that you've seen thus far in obviously better temperatures. And as we kind of get into December or January and February, which are obviously challenging months, how are you going to further help moderate any, we'll call it negative impacts around extreme colder temperatures.
Past winter Theres, not a huge amount of new or different that we plan to do this year, although we do have.
Simon Younger: Thanks. I'll let Simon kind of discuss that in more detail. Yeah, I mean, I guess the key message there is we again feel well positioned going into this winter based on the learnings that we had from the prior two winters ago and then the successful application of those learnings and mitigations this past winter. There's not a huge amount new or different that we plan to do this year, although we do have some additional equipment deployed.
Some additional equipment deployed we've got an additional shovel.
In the mind that that.
That has stronger capability in the in the colder temperatures.
Speaker 6: transcript
Speaker 6: that has stronger capability in the colder temperatures.
Speaker 6: transcript
Speaker 6: and digging through the frozen ore. So I think that'll be a help. We're trialing what's known as grizzly bars on top of our crushes, that went one of the crushes to better handle the frozen lumps that come at us during the winter months.
And digging through the frozen or so I think that'll be that'll be a help.
We're trialing, what's known as grizzly bonds on top of our crushes, but one of the crushers to to better handle the frozen lumps that come at us during the winter.
Speaker 6: transcript
Speaker 6: So there are a few things additional that we've got in our Armory versus last winter, but by and large, it'll be a repeat dose of just applying all the learnings and the cold temperature protocols and the maintenance equipment preparedness that we applied last winter.
Months. So there are a few things additional that we've got in our armory versus last winter, but by and large it will be a repeat dose just applying all the all the learnings and the cold temperature protocols and the maintenance equipment preparedness that we applied last winter.
Speaker 3: transcript
Speaker 3: and maybe just one reminder, you know, after...
And maybe just one reminder.
After.
Speaker 3: transcript
Speaker 3: kind of experiencing those challenges and then, you know, applying the organization's capability and kind of can do mindset and putting some new procedures in place and other mitigations. The first quarter of this year was a record first quarter for the curl asset. So again, demonstrating that, you know, we had addressed, you know, those challenges and we're back on track.
Experiencing those challenges and then applying the organization's capability kind of can do mindset.
Simon Younger: We've got an additional shovel in the mine that we, that has stronger capability in the colder temperatures and digging through the frozen ore. So I think that will be a great help. We're trialling what's known as grizzly bars on on top of our crushes at one of the crushes to to better handle the frozen lumps that come at us during the winter months. So there are a few things additional that we've got in our armory versus last winter but by and large.
And and putting some new procedures in place and other mitigation. The first quarter of this year was a record first quarter for the curl asset so again demonstrating that.
We had.
<unk> addressed those.
Those challenges and we're back on track.
Speaker 9: transcript
Speaker 9: Great, great. Really appreciate the color there and I'll turn it back to you. Thanks.
Great Great really appreciate the color there and I'll turn it back to you. Thanks.
Thanks.
We'll go next to Doug Leggate with Bank of America.
Speaker 10: transcript
Speaker 10: Good morning guys, this is Kaleon for Doug, so thanks again for taking the question. This one goes to the dividend, so maybe Brad or Dan.
Hey, Good morning, guys. This is clay on for Doug. So thanks again for taking the question.
This one goes to the dividend, so maybe Brad or Dan.
Simon Younger: It'll be a repeat dose of just applying all the all the learnings and the cold temperature particles and the maintenance equipment preparedness that we applied last winter. And maybe just one reminder, you know, after kind of experiencing those challenges and then, you know, applying the organization's capability and kind of can do mindset and putting some new procedures in place and other mitigations. The first quarter of this year was a record first quarter for the curl asset. So again, demonstrating that, you know, we had addressed, you know, those challenges and we're back on track.
Speaker 10: transcript
Speaker 10: As we look at it by any measure, dividend coverage is very robust. You guys have hiked it recently, but to be frank, you've been, if you hike, say 10 to 15%, and do that for a while, we could be asking this question for quite a long time. So I guess why not take a bigger step towards right sizing that dividend coverage, and at the same time, close the gap versus your Canadian peers.
As we look at it by any measure a dividend coverage is very robust and you guys have hiked recently, but to be Frank if you hike say, 10% to 15% and do that for a while we could be asking this question for quite a long time, so I guess why not take a bigger step towards right sizing that dividend coverage and at the same time.
Dennis Fong: Great, great. Really appreciate the color there and I'll turn it back to you.
The gap versus your Canadian peers.
Speaker 3: transcript
Speaker 3: Yeah, thanks, thanks for the question. I will not say on comment, but you know, we just emphasize.
Yes. Thanks, Thanks for the question.
Operator: Thanks.
I will let Dan comment but.
I would just emphasize.
Speaker 3: transcript
Speaker 3: you know, the significant return of surplus cash that, you know, we've, we've made last year over $7 billion, you know, we've just kind of summarized what we've done so far. And obviously, our dividend strategy is key and integral to returning surplus cash to shareholders. But maybe I'll add Dan talk a little bit about kind of how we view, you know, one mechanism versus another.
This significant return of surplus cash that we've we've made.
Last year over $7 billion, we've just kind of summarize what we've done so far and obviously our dividend strategy is key and integral to returning surplus cash to shareholders.
Kaleinoheaokealaula Akamine: We'll go next to Doug Luggett with Think of America. Hey, good morning guys. This is Kale on for Doug. So thanks again for taking the question. This one goes to the dividend. So maybe Brad or Dan. As we look at it by any measure, dividend coverage is very robust. You guys have hiked it recently but to be frank, you've been a few hikes say 10 to 15% and do that for a while.
But maybe I'll, let Dan talk a little bit about kind of how we view.
One mechanism versus another and kind of our long term philosophy on base dividends sure. Thanks, Brad Yeah look.
Speaker 3: transcript
Speaker 3: kind of our long-term philosophy on based dividends.
Speaker 5: transcript
Speaker 5: Sure, thanks Brad. Yeah, look, a reliable and growing given in is the kind of bedrock of our cast returns strategy and where it all starts.
Reliable and growing dividend is the bedrock of our cash return strategy and where it all starts.
Speaker 5: transcript
Speaker 5: And we've done, you know, pretty significant increase over the last two years and on a growth basis, I think.
And we've done pretty significant increase over the last few years and on a growth basis I think.
Kaleinoheaokealaula Akamine: We could be asking this question for quite a long time. So I guess why not take a bigger step towards right sizing that dividend coverage. And at the same time, close the gap versus your Canadian peers. Thanks for the question.
Speaker 5: transcript
Speaker 5: caught up with well on a growth basis exceeded most of our peers. And look, we continue to want to grow the dividend. Obviously it's a trade off. You don't want to get ahead of yourself and have to cut and things like that. But I think fundamentally you're correct. There is room to grow. And
Got up with well on a growth basis exceed exceeded most of our peers and look we we continue to want to grow.
Grow the dividend obviously, it's a trade off you don't want to get ahead of yourself and have to cut and things like that but I think fundamentally you are correct. There is there is there is room to grow and.
Brad Corson: I will let Dan comment, but it would just emphasize the significant return of surplus cash that we've made last year over $7 billion. We've just summarized what we've done so far. Obviously, our dividend strategy is key and integral to returning surplus cash to shareholders. But maybe I'll let Dan talk a little bit about how we view one mechanism versus another and our long-term philosophy on based dividends. Sure, thanks, Brad. Look, a reliable and growing dividend is the kind of bedrock of our cash return strategy and where it all starts.
Speaker 5: transcript
Speaker 5: Obviously, as we deliberate that, we look at our future prospects and everything else and we set those levels. So we take your point, looking for more dividend growth and that'll certainly come over time. And we're highly aware of what our competitors do in terms of increases and yields.
Obviously.
As we deliberate that we look at our future prospects and everything else and.
At those levels so.
We take your point.
Looking for more dividend growth and that will certainly come over time, and we are highly aware of what our what our competitors do in terms of increases in yields and that obviously.
Speaker 5: transcript
Speaker 5: And that obviously reflects our thinking and their actions and yields.
Flex our thinking and.
Their actions.
And yields.
Speaker 5: transcript
Speaker 5: you know, effect us in a way that, you know, probably the way you want that if they're going higher, you know, we would tend to follow that. Of course, let me add a unique situation in what we see is our future cash flows. But you're right, we're very resilient. We put out a 35.
Yes.
Effect.
In a way that probably the way you want.
If theyre going higher.
We tend to follow that of course looking at her unique situation and what we see is our future cash flows, but youre right were very resilient.
Brad Corson: And we've done, you know, pretty significant increase over the last two years and on a growth basis, I think, caught up with, well, on a growth basis exceeded most of our peers. And look, we continue to want to grow the dividend. Obviously, it's a trade-off, you don't want to get ahead of yourself and have to cut and things like that. But I think fundamentally, you're correct. There is room to grow. And obviously, as we deliberate that, we look at our future prospects and everything else, and we set those levels.
We put out of $35.
Speaker 5: transcript
Speaker 5: And last investor day break even day, including, I'm sorry, at our investor day, a $35 WTI break even, which includes sustaining capital and dividend. So in our dividend super secure, and you're absolutely correct, we have room to increase.
And last Investor day breakeven, including I'm, sorry at our Investor Day, a 35 dollar WTS breakeven, which includes sustaining capital and dividend so our dividend Super secure and Youre absolutely correct.
Room to increase it.
Speaker 10: transcript
Speaker 10: Look, it's 1 of those good problems and we appreciate the thoughts. My really quick follow up is on curl. So, 3rd quarter volumes were obviously very strong. And you look on pace for the big point of guidance for the full year. Just wondering if you can give a quick update on October volumes and address if there's any tension between volumes and wide differentials as you execute the rest of this quarter.
It's one of those good problems and we appreciate the thoughts by really quick follow up is on <unk>. So third quarter volumes were obviously very strong and you look on pay it's great to midpoint of guidance for the full year. Just wondering if you can give a quick update on October volumes and address if there is any tension between volumes and white <unk>.
Brad Corson: So we take your point, looking for more dividend growth, and that'll certainly come over time. And we're highly aware of what our competitors do in terms of increases and yields. And that obviously reflects our thinking and their actions and yields affect us in a way that probably the way you want that if they're going higher, we would tend to follow that. Of course, looking at a unique situation in what we see is our future cash flows.
Rentals as you execute the rest of this quarter.
Speaker 3: transcript
Speaker 3: Yeah, thanks. Well, we continue to be committed to our four-year guidance for Curl and the third quarter performance, I think, is...
Yes. Thanks.
We continue to be committed to our full year guidance for Karl and.
The third quarter performance I think is demonstrative of our capability to achieve that.
Speaker 3: transcript
Speaker 3: demonstrative of our capability to achieve that. October has been a strong month for us so far. You know, there's still, I guess, five, six days to go relative to the latest volumes that I've seen.
October has been a strong month for us so far.
Brad Corson: But you're right, we're very resilient. We put out a $35 and last investor-day break, even day, including, sorry, at our investor-day, a $35 WTI break-even, which includes sustaining capital and dividend. So our dividend is super secure and you're absolutely correct. We have room to increase it. Look, it's one of those good problems, and we appreciate the thoughts.
There is still I guess five six days to go relative to the latest volumes that I've seen.
Speaker 3: transcript
Speaker 3: But, you know, we expect to be somewhere in the 280s.
But we expect to be somewhere in the $2 <unk>.
Speaker 3: transcript
Speaker 3: for this month, which also reflects.
For this month, which also reflects.
Speaker 3: transcript
Speaker 3: You know, some very minor kind of routine plan maintenance.
Some very minor kind of routine planned maintenance.
Speaker 10: transcript
Speaker 10: that we executed and we see continued, you know, strength as we move into November , December . Right. I'll leave it there. See you in Houston next month, Brad.
That we executed.
And we see continued strength as we move into November December.
Brad Corson: My really quick follow-up is on Pearl. So, third quarter volumes were obviously very strong. And you look on page for the bit point of guidance for the full year. Just wondering if you can give a quick update on October volumes and address that there is any tension between volumes and wide decorrentials as you execute the rest of the score. Yeah, thanks. Well, we continue to be committed to our full-year guidance for Curl, and you know, the third quarter performance, I think, is demonstrative of our capability to achieve that.
Great I'll leave it there for you in Houston next month's Brad.
You bet. Thank you look forward to it.
Speaker 1: transcript
Speaker 1: We'll pick your next question from Menoharshall with TD Secure.
We'll take our next question from Menno <unk> with TD Securities.
Speaker 4: transcript
Speaker 4: Thanks and good morning everyone. I'll start with a question on the 2024 outlook. I do understand that you're in the midst of the budgeting process. But would you be able to give us the broad strokes on planned turnaround activity within upstream and downstream for the coming year?
Thanks, and good morning, everyone I will start with a question on the 2020 for outlook.
Do you understand that you are in the midst of the budgeting process, but would you be able to give us the broad strokes on.
Planned turnaround activity within upstream and downstream for the for the coming year.
Brad Corson: October has been a strong month for us so far. You know, there's still, I guess, five, six days to go relative to the latest volumes that I've seen. But, you know, we expect to be somewhere in the 280s for this month, which also reflects, you know, some very minor kind of routine plan maintenance that we executed. And we see continued, you know, strength as we move into November December.
Speaker 3: transcript
Speaker 3: Yeah, we're not in a position to discuss all those details yet. That'll be part of our normal guidance. And we're in the process of finalizing all of our plans for next year. But as we think more broadly about it, we're expecting a pretty typical turnaround year next year. I don't think anything kind of extra ordinary. Um.
Yes.
Not.
And on a position to discuss all of those details yet that will be part of our normal guidance and we're in the process of finalizing all of our plans for next year, but.
As we think more broadly about it we're expecting.
Typical turnaround year next year, I don't think anything kind of extra ordinary.
Speaker 3: transcript
Speaker 3: So, you know, I'd say that that'd be the planning rough planning basis now. And then, you know, as we get to the end of the year, we'll give more specifics on, you know, each of the assets, you know, the target timing duration cost, but just just a little bit to premature to share those details with you.
<unk>.
So I would say that that would be the planning rough.
Brad Corson: Great, I'll leave it there. See you in Houston next month, Brad. Thank you, Pat. Thank you. Look forward to it.
Rough planning basis, now and then.
You get to the end of the year, we will give more specifics on.
Each of the assets.
Menno Hulshof: We'll take your next question from Menno Hulshof with TD Securities. Thanks and good morning everyone. I'll start with a question on the 2024 outlook.
The target timing duration cost, but just just a little bit too premature to share those details with you.
Brad Corson: I do understand that you're in the in the midst of the budgeting process, but would you be able to give us the broad strokes on planned turnaround activity within upstream and downstream for the coming year. Yeah, we're not in a position to discuss all those details yet. That'll be part of our normal guidance and we're in the process of finalizing all of our plans for next year, but as we think more broadly about it, we're expecting.
Speaker 4: Thanks for a totally understandable. Maybe I'll just follow up on line five. It's been pretty quiet on that front for a while and just going back over some of the comments from past conference calls you talked about contingency plans and constantly refreshing the different scenarios. Can you just give us an update on what you're hearing there and what's your best guess on how this plays out?
Thanks, Brad totally understandable, maybe I'll just.
Follow up on line five it's been pretty quiet on that front for a while.
And just going back over some of some of the some of the comments from past conference calls you talked about contingency plans and constantly refreshing the different scenarios can you just give us an update on what you're hearing there and whats your best guess on how this plays out.
Yes.
Thank you.
Brad Corson: You know, a pretty typical turnaround year next year. I don't think anything kind of extra ordinary. So, you know, I'd say that that'd be the planning rough planning basis now and then, you know, as we get to the end of the year, we'll give more specifics on, you know, each of the assets, you know, the target timing duration cost, but just just a little bit to premature to share those details with you. Thanks for that totally understandable.
Speaker 3: transcript
Speaker 3: You characterized it right from the beginning. It's been pretty quiet. You know, there's there's continued progress by Enbridge to, you know.
You characterized it right from the beginning it's been pretty quiet.
You know there is there is continued progress by Enbridge.
Two.
Speaker 3: transcript
Speaker 3: kind of install the new pipe work through all the technical and permitting considerations there.
Kind of install the new pipe work through all the technical and permitting considerations there.
Speaker 3: transcript
Speaker 3: You know, we continue to be optimistic that there won't be any interruptions of service. We do have contingency plans in place, but, you know, I'd say even as I said here today versus a year ago or two years ago, we're becoming increasingly comfortable.
We continue to be.
Optimistic that there won't be any interruptions of service.
We do have contingency plans in place.
Brad Corson: Maybe I'll just follow up on line five. It's been pretty quiet on that front for a while and just going back over some of some of these, some of the comments from past conference calls you talked about contingency plans and constantly refreshing the different scenarios. Can you just give us an update on what you're hearing there and what's your your best guess on on how this plays out? Yeah, you know, I think you, you characterize it right from the beginning.
I would say, even as I sit here today versus a year ago or two years ago.
We are becoming increasingly comfortable.
Speaker 11: transcript
Speaker 11: that there won't be any interruption. You know, there's obviously things well outside of control, but it has been quite quiet. Thanks, Brad.
That there won't be any interruption.
Theres, obviously things well outside of our control.
But it has been quite quiet.
Thanks, Brian I'll turn it back.
Okay. Thank you.
We will take our next question from Neil Mehta with Goldman Sachs.
Speaker 12: transcript
Speaker 12: Yeah, thank you, and I'll add my congratulations, Dave. You will be missed, and Peter, wish you lots of luck in the new role.
Brad Corson: It's been pretty quiet. You know, there's there's continued progress by Enbridge to, you know, kind of install the new pipe work through all the technical and permitting considerations there. You know, we we continue to be optimistic that there won't be any interruptions of service. We do have contingency plans in place, but, you know, I'd say even as I sit here today versus a year ago or two years ago, we're becoming increasingly comfortable that there won't be any interruption. You know, there's obviously things well outside of control, but it has been quite quiet. Thanks, Brian. I'll turn it back.
Yes, Thank you and I'll add my congratulations Dave you will be missed and Peter.
Menno Hulshof: Okay, thank you.
Good luck in the new role.
Speaker 12: transcript
Speaker 12: A couple questions here. The first is just around the SIB. And you just go through the thought process behind the decision around the billion half dollars, similar to last year, and just thoughts on whether, if the commodity price stays up here. And you just go through the thought process behind the decision around the billion half dollars.
Couple of questions here. The first is just around ESI b.
Can you just go through the thought process behind the decision.
The 1 billion to $5.
Similar to last year and just.
Thoughts on on weather.
If the commodity price stays up here.
Speaker 12: transcript
Speaker 12: possible to do this again in the spring. Last year was a little tougher. The earlier this year was a little tougher because of the large deferred tax payment.
It's possible to do this again in the spring last year was a little tougher but earlier this year was a little tougher because of the large deferred tax payment but.
I don't think you have the same thing in <unk> of 2024.
Yes.
Yes, thanks for the question.
Speaker 3: transcript
Speaker 3: Yeah, thanks for the question. You know, I would, I would like to answer that question, but I promised to Dan that I would let him answer all the questions because he loves talking.
I would I would like to answer that question, but I promise to Dan that I would let him answer all the questions because he loves talking.
Speaker 2: transcript
Speaker 2: Absolutely. You're done. Sure. Hey, look, our philosophy's not super complicated. As we generate the cash flow, we return it. So that's really where the 1.5 came from. And I would say, I wish we'd round. We don't go to a precise number. So 1.5 is a good round number. It makes sense based on our cash balances and cash flow.
Absolutely I'll tell you Dan Shaw in luck.
And our philosophy is not super complicated as we generate the cash we have free cash flow we return it.
Neil Mehta: We'll take our next question from Neil Metta with Goldman Sachs. Yeah, thank you and I'll add my congratulations, Dave. You will be missed and Peter will wish you lots of luck in the new role.
So that's really kind of where the one five came from and.
I would say obviously round, we don't go to the precise numbers. So one five is a good round number it made sense based on our cash balances and cash flow.
Daniel Lyons: The couple questions here. The first is just around the SIB and you just go through the thought process behind the decision around the billion half dollars, similar to last year and just thoughts on whether if the commodity price stays up here. It's possible to do this again in the spring. Last year was a little tougher. The earlier this year was a little tougher because of the large deferred tax payment. But I don't think you have the same thing in 12 of 2024, so thanks.
Speaker 5: transcript
Speaker 5: Regarding, you're correct that we do not have a big makeup payment. Like, we had that very unique situation last year. That is not expected to be the case this last year, unless in a good world prices go to 200 dollars or something. Maybe then we'd have that, but not likely to happen. So, as we look to next year, you know,
Regarding youre correct that we do not have a big makeup payment like we had a very unique.
Unique situation last year that is not expected to be the case this last year and last year and a good world prices go to $200 or something maybe than we have that but not likely to happen so well.
As we look to next year.
Speaker 2: transcript
Speaker 5: our commodity prices stay strong, our cash generation stay strong. You know, we generate free cash flow, our base plan is to turn that to shareholder. So I think, you know, so we'll see where those numbers go.
Our commodity prices stay strong our cash generation stay strong.
Generate free cash flow our base plan is to return that to shareholders. So I think.
So, we'll see where those numbers go.
Speaker 5: transcript
Speaker 5: But that's really an unchanged philosophy. It's, you know, it's a continuation of what we've been doing for a while.
Sure.
That's really an unchanged philosophy, it's continuation of what we've been doing for a while.
Daniel Lyons: Hey, look, our philosophy is not super complicated. As we generate the cash, the free cash flow, we return it. So that's really where the 1.5 came from. And I would say, I wish we'd round. We don't go to a precise number. So 1.5 is a good round number. It makes sense based on our cash balances and cash flow. Regarding your correct that we do not have a big makeup payment, like we had that very unique situation last year.
Speaker 12: transcript
Speaker 12: Okay, that's helpful and it's good to see the return of capital. Follow-up is on pathways. It's been quiet from our perspective as an investment community around this. I know Brad, you spend a lot of time on this, so maybe you can peel back the onion a little bit for us and help us understand, are we getting closer to FID? What are the gaining conditions here? Is it fair to...
Okay.
Helpful.
It's good to see the return of capital follow up is on pathway. That's been it's been quiet from our perspective is in the investment community around this.
No.
Could you spend a lot of time on this so maybe you can.
Peel back the onion, a little bit for us and help us understand are we getting closer to RFID.
Are the gating conditions here.
Is it fair to.
Speaker 12: transcript
Speaker 12: in the base case, this gets that ID.
Assuming the base case.
This gets that FID in 2024, thank you.
Daniel Lyons: That is not expected to be the case this last year. And last year, in a good world, prices go to $200 or something. Maybe then we'd have that, but not likely to happen. So as we looked to next year, our commodity prices stay strong. Our cash generation stays strong. We generate free cash flow. Our base plan is to return that to shareholders. So I think, we'll see where those numbers go. But that's really an unchanged philosophy. It's a continuation of what we've been doing for a while.
Speaker 3: transcript
Speaker 3: Yeah, thanks for that question. And yeah, I guess interesting perspective that it's been quiet.
Yes, thanks for that question.
Yes, I guess interesting perspective that it's been quiet.
Speaker 3: transcript
Speaker 3: You know, from your standpoint, if your hadn't been quiet from my standpoint, or the rest of the pathways team, because there is an extra ordinary amount of work underway. And, you know, maybe I'll break that into a couple of key components that all need to come together to achieve an eventual FID. You know, first of all.
From from your standpoint, if there hadn't been quiet from my standpoint.
Or the rest of the pathways team because there is an extra ordinary amount of work underway and.
Maybe I'll break that into a couple of key components that all needs to come together.
To achieve an Nf and eventual <unk>.
Neil Mehta: Okay, that's helpful. And it's good to see the return of capital.
First of all there.
Speaker 3: transcript
Speaker 3: There is a lot of work underway to progress the engineering side of the project. This is a big, you know, multi-billion dollar project.
There is a lot of work underway to progress the engineering side of the project.
Brad Corson: Follow up is on pathways. It's been quiet from our perspective as an investment community around this. I know, Brad, you spend a lot of time on this. So maybe you can peel back the onion a little bit for us and help us understand, are we getting closer to FID? What are the gating conditions here? Is it fair to assume in the base case this gets the FID in 2024? Thank you. Yeah, thanks for that question.
This is a big.
Multibillion dollar project.
Speaker 3: transcript
Speaker 3: And that requires significant pre-engineering work, which we've now essentially completed and positions us to move into kind of more feed engineering studies. There's a significant amount of environmental studies that need to be conducted across the pipeline right-of-way route that's planned. There's the network's progressing.
And that requires significant pre engineering work.
We've now essentially completed and positions us to move into.
Kind of more feed engineering studies, there is a significant amount of environmental studies that need to be conducted across the pipeline right away route that's planned.
Brad Corson: And yeah, I guess interesting perspective that it's been quiet, you know, from from your standpoint, you sure haven't been quiet from my standpoint, or the rest of the pathways team, because there is an extra ordinary amount of work underway. And, you know, maybe I'll break that into a couple of key components that all need to come together to achieve an F and eventual FID. You know, first of all, there is a lot of work underway to progress the engineering side of the project.
There's the networks progressing.
Speaker 3: transcript
Speaker 3: You know, there's multiple components to capturing the carbon. So...
There's multiple components to capturing the carbon.
Speaker 3: transcript
Speaker 3: In our first phase, there's nine key assets and capture projects across the six companies, and each company is doing their own engineering and project planning for that work, and that's progressing.
So.
And our first phase, there's nine key assets and capture projects across the six companies and each company is doing their own engineering and project planning for that work and Thats progressing.
Speaker 3: transcript
Speaker 3: And then on the cap, on the, the sequestration side.
And then on the cap on the sequestration side.
Speaker 3: transcript
Speaker 3: You know, we worked with the Alberta government and been awarded poor space that now we need to do additional technical work so that we can demonstrate that we can, you know, safely and reliably store the carbon that we would expect to capture and transport to that site kind of in the cold lake region.
We've worked with the Alberta government.
Brad Corson: This is a big, you know, multi-billion dollar project. And that requires significant pre-engineering work, which we now essentially completed and positions us to move into kind of more feed engineering studies. There's a significant amount of environmental studies that need to be conducted across the pipeline right away route that's planned. There's, and that works progressing. You know, there's multiple components to capturing the carbon. So in our first phase, there's nine key assets and capture projects across the six companies and each company is doing their own engineering and project planning for that work and that's progressing.
<unk>.
<unk> been awarded.
For space that now we need to do additional technical work. So that we can demonstrate that we can.
Safely and reliably store.
Carbon that we would expect to capture and transport to that site kind of in the in the Cold Lake region. So all of that work is progressing and and.
Speaker 3: transcript
Speaker 3: So all that work is progressing and, you know, there's
Speaker 3: transcript
Speaker 3: a few hundred folks working on that across the six companies and then.
There is.
A few hundred folks working on that across the six companies.
And then.
Speaker 3: transcript
Speaker 3: And then secondly, I would just say on the Indigenous engagement side, which is critically important for us.
And then secondly, I would just say.
On the indigenous engagement side, which is critically important for us to have a sustainable partnerships with the many indigenous communities that are along the <unk>.
Speaker 3: transcript
Speaker 3: to have a sustainable partnership with the many indigenous communities that are along the, you know, the route and part of our operations.
Brad Corson: And then on the cap on the the sequestration side, you know, we've worked with the Alberta government and been awarded poor space that now we need to do additional technical work so that we can demonstrate that we can, you know, safely and reliably store the carbon that we would expect to capture and transport. [inaudible] engineering work completed then we will be looking to place an order for the main pipe that we would need for the trunk line for the 300 kilometer project and we hope to be in a place that we can we can place that order sometime next year is kind of our our current planning basis. So I hope that gives you a little more color and so kind of a reflection of just how much activity is underway.
The route and part of our operations.
Speaker 6: transcript
Speaker 3: And so in recent months, we've been actively engaging them to understand their needs, their desires. As we look at how we can build a sustainable partnership with them.
And so in recent months, we've been actively engaging them to understand their their needs their desires.
As we look at how we can build a sustainable partnership with them.
Speaker 3: transcript
Speaker 3: We've had engagements with over 20 communities so far.
We have had engagements with over 20 communities so far.
Speaker 3: transcript
Speaker 3: And then, and then lastly, I would say that the third other kind of key element of this is of course
And then and then lastly, I would say the third other kind of key element of this is of course.
Speaker 3: transcript
Kind of all of the physical work that we're doing with both the federal government and the provincial government.
Speaker 3: transcript
Speaker 3: And that is to ensure that we have the right policies in place, the right funding mechanisms.
And that is to ensure that we have the right policies in place the right funding mechanisms in place. So that these projects can be economic for our shareholders to ensure that they deliver the environmental benefits that are consistent with the government.
Speaker 3: transcript
Speaker 3: transcript
Speaker 3: that are consistent with the government's aspirations for net zero by 2050. And so there are regular engagements now with the Alberta government and the federal government around all the details around those plans.
SaaS operations for net zero by 2050, and so there are regular engagements now with the Alberta government and the federal government around all of the details around those plans.
Speaker 3: transcript
Speaker 3: We have yet to finalize those discussion.
We have yet to finalize those discussions on the physical mechanisms.
Speaker 3: transcript
Speaker 3: on the fiscal mechanisms and the fiscal
Physical kind of support that will be necessary for these projects to go forward, but I would say those those discussions have advanced materially over the last couple of months. So I'm quite pleased with the progress we're making there is still a long ways to go as I said at the beginning this is a.
Speaker 3: transcript
Speaker 3: Kind of support that will be necessary for these projects to go forward. But I would say those those discussions.
Speaker 3: transcript
Speaker 3: have advanced materially over the last couple months.
Speaker 3: transcript
Speaker 3: So I'm quite pleased with the progress we're making. There's still a long ways to go. As I said, the beginning, this is a big project. Big investments, you know, has implications for decades to come.
Our big projects Big investments.
As implications for decades to come.
Speaker 3: transcript
Speaker 3: But it's critically important, you know, for our industry to be sustainable, critically important for Canada to achieve its net zero ambition.
But it is critically important for our industry to be sustainable critically important for Canada to achieve net zero ambitions. So we're all focused on making it a success.
Speaker 3: transcript
Speaker 3: So we're all focused on making it a success. You know, the next key milestone for us would be, you know, once we have all of the fiscal mechanisms in place, once we have
<unk>.
The next key milestone for us would be.
Once we have all of the physical mechanisms in place once we have.
Speaker 6: transcript
Speaker 6: The engineering work completed, then we will be looking to place an order for...
The engineering work completed then we will be looking to place an order for the main pipe that we would need for the trunkline for the.
Speaker 3: transcript
Speaker 3: the main pipe that we would need for the trunk line, for the 300 kilometer of...
300 kilometer.
Speaker 3: transcript
Speaker 3: project and you know we hope to be in a place that we can we can place that order sometime next year is kind of our our current planning basis.
Okay.
Project, and we hope to be in a place that we can we can place that order or sometime next year is kind of our current planning basis. Okay.
Speaker 3: transcript
Speaker 3: So I hope that gives you a little more color and so kind of a reflection of just how much activity is underway. That's great.
Okay. So I hope that gives you a little more more color so kind of a reflection of just how much activity is underway.
That's great. Thank you Brad appreciate it.
Speaker 1: transcript
Speaker 1: Thank you. This says conclude the question and answer portion. I would like to turn the call over to Peter Shaw, Vice President, Investor Relations for any quiz.
Thank you. This does call. This does conclude the question and answer portion I would like to turn the call back over to Peter Shah Vice President Investor Relations for any closing remarks.
Speaker 13: transcript
Speaker 13: Thank you. So, on behalf of the management team, I would like to thank everybody for joining us this morning and also sharing the thanks to Dave as we've worked over the last several weeks for a smooth handover. If you have any further questions or follow ups, please don't hesitate to reach out to anyone on the investor relations team and we'll be happy to answer any of your questions. And with that, thank you very much and have a great day.
Thank you so on behalf of the management team I would like to thank everybody for joining us. This morning, and also sharing the thanks to David as we've worked over the last several weeks for a smooth handover.
Do you have any further questions or follow ups. Please don't hesitate to reach out to anyone on the Investor Relations team will be happy to answer any of your questions.
Thank you very much and have a great day.
Speaker 1: transcript
Speaker 1: This is today's conference call. Thank you for your participation. You may now...
This does conclude today's conference call. Thank you for your participation you may now disconnect.
Speaker 14: transcript
Speaker 14: Me.
[music].
Neil Mehta: That's great. Thank you, Brad. Oh, we appreciate it. Thank you.
Peter Shaw: This says conclude the question and answer portion. I would like to turn the call back over to Peter Shaw, Vice President, Investor Relations for any closing remarks. Thank you. So on behalf of the management team, I would like to thank everybody for joining us this morning. I'll also share in the thanks to Dave as we've worked over the last several weeks for a smooth handover. If you have any further questions or follow-ups, please don't hesitate to reach out to anyone on the Investor Relations team. We'll be happy to answer any of your questions. And with that, thank you very much and have a great day.
Operator: This says conclude today's conference call. Thank you for your participation. You may now disconnect.