Q1 2025 Imperial Oil Ltd Earnings Call

Unknown Executive: Please stand by.

Please standby.

Unknown Executive: Good day and welcome to the Imperial Oil first quarter 2025 earnings call. Today's conference is being recorded.

Good day and welcome to the Imperial oil first quarter 2025 earnings call. Today's conference is being recorded at this time I'd like to turn the conference over to Peter Shah Vice President of Investor Relations. Please go ahead.

Peter Shaw: At this time, I'd like to turn the conference over to Peter Shaw, Vice President of Investor Relations. Please go ahead.

Peter Shaw: Good morning, everyone. Welcome to our first quarter earnings conference call.

Speaker Change: Good morning, everyone welcome to our first quarter earnings Conference call I'm joined this morning by Imperial Senior management team, including Brad Corson, Chairman and CEO, John Whalen, President, Dan Lyons Senior Vice President Finance and administration, Cheryl Gomez Smith Senior Vice President of the upstream and Scott Maloney Vice.

Peter Shaw: I'm joined this morning by Imperial's senior management team, including Brad Corson, Chairman and CEO, John Whelan, President, Dan Lyons, Senior Vice President, Finance and Administration, Cheryl Gomez-Smith, Senior Vice President of the Upstream, and Scott Maloney, Vice President of the Downstream. Today's comments include reference to non-GAAP financial measures. The definitions and reconciliations of these measures can be found in Attachment 6 of our most recent press release and are available on our website with a link to this conference call.

President of the downstream.

Speaker Change: 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 a link to this conference call. Today's comments may contain forward looking information.

Peter Shaw: Today's comments may 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 a number of factors and assumptions. Forward-looking information and the risk factors and assumptions are described in further detail on our first quarter earnings release that we issued this morning, as well as our most recent Form 10-K. All of these documents are available on CDAR Plus and EDGAR and our website, so I'd ask you to refer to those.

Speaker Change: Any forward looking information is not a guarantee of future performance and actual future performance and operating results can vary materially depending on a number of factors and assumptions.

Speaker Change: Forward looking information and the risk factors and assumptions are described in further detail on our first quarter earnings release that we issued this morning as well as our most recent Form 10-K.

Speaker Change: All of these documents are available on SEDAR and Edgar and our website. So I'd ask you to refer to those.

Peter Shaw: Brad is going to start with some opening remarks and then hand it over to Dan, who is going to provide a financial update, and then Brad will provide an operations update.

Speaker Change: I was going to start with some opening remarks, and then hand it over to Dan who is going to provide a financial update and then Brad will provide an operations update once that is done we will follow with a Q&A session. So with that I will turn it over to Brad for his opening remarks.

Peter Shaw: Once that is done, we will follow with the Q&A session.

Bradley Corson: So with that, I will turn it over to Brad for his opening remarks. Thank you, Peter. Good morning, everybody. And welcome to our first quarter earnings call. I hope everyone is doing well. And it was great to see many of you at our recent Investor Day in Toronto.

Brad Corson: Thank you Peter Good morning, everybody and welcome to our first quarter earnings call I Hope, everyone is doing well and it was great to see many of you at our recent Investor day in Toronto.

Bradley Corson: As you are likely aware, this will be my last earnings call with John replacing me following next week's AGM and my retirement. But before I leave, I'm really pleased to report another strong quarter for Imperial with earnings of $1,288,000,000, which represents an increase of earnings per share by 13% year over year, and by 6% on a sequential quarter basis. This represents our highest ever first quarter earnings in the company's history. We also generated free cash flow of $1,150,000,000 and ended the quarter with nearly $1,800,000,000 of cash on hand. So that puts us in a very strong financial position.

Speaker Change: As you are likely aware this will be my last earnings call with John replacing me. Following next week's AGM in my retirement.

Speaker Change: But before I leave I'm really pleased to report another strong quarter for Imperial with earnings of $1 billion $288 million, which represents an increase of earnings per share by 13% year over year and by 6% on a sequential quarter basis. This.

Speaker Change: <unk>, our highest ever first quarter earnings in the company's history.

Speaker Change: We also generated free cash flow of $1 billion $150 million and ended the quarter with nearly $1.800 billion of cash on hand, so that puts us in a very strong financial position and as you may have seen in the release. This morning, we intend to renew our.

Bradley Corson: And as you may have seen in the release this morning, we intend to renew our normal course issuer bid later this quarter. So while there is ongoing volatility in commodity prices, I remain very confident in our ability to grow shareholder value over the long term. Our upstream assets contributed solid production for the quarter, just shy of the record first quarter production we posted a year ago when adjusting for the divestment of XTO Energy Canada. Improved egress continued to support narrower heavy oil differentials than we've seen in the past, and especially during the winter months. And this in turn supported our price realization.

Speaker Change: Course issuer bid later this quarter.

Speaker Change: So while there is ongoing volatility in commodity prices I remain very confident in our ability to grow shareholder value over the long term.

Speaker Change: Our upstream assets contributed solid production for the quarter just shy of the record first quarter production, we posted a year ago when adjusting for the divestment of X T O Energy Canada.

Speaker Change: Improved egress continued to support narrower heavy oil differentials than we've seen in the past and especially during the winter months and this in turn supported our price realizations.

Bradley Corson: Our downstream business delivered once again, with strong margin capture in a recovering crack spread environment. This business continued to benefit from many durable competitive advantages, including integration, proximity to feedstocks and market, efficient logistics and our strong market position.

Speaker Change: Our downstream business delivered once again with strong margin capture in a recovering crack spread environment.

Speaker Change: This business continued to benefit from many durable competitive advantages, including integration proximity to feedstocks and market efficient logistics and our strong market position.

Bradley Corson: Over the next few minutes, Dan and I will detail the results of this strong quarter. So now let's review the first quarter results. And as I just noted, earnings for the quarter were $1,288,000,000 with cash from operating activities of $1,760,000,000 when excluding the impact of working capital. Again, this represents our highest ever first quarter earnings. That sounded so good the first time I just had to say it again. These results reflect the strength of our integrated business model and our ability to capture value for our shareholders. In the upstream, we achieved total production of 418,000 gross oil equivalent barrels per day in the first quarter.

Over the next few minutes, Dan and I will detail the results of this strong quarter.

Speaker Change: So now let's review the first quarter results.

Speaker Change: And as I, just noted earnings for the quarter were $1 $288 million with cash from operating activities of $1 billion $760 million when excluding the impact of working capital.

Speaker Change: Again, this represents our highest ever first quarter earnings.

Speaker Change: Sounded so good the first time I just had to say it again.

These results reflect the strength of our integrated business model and our ability to capture value for our shareholders.

Speaker Change: In the upstream we achieved total production of 418000 gross oil equivalent barrels per day in the first quarter.

Bradley Corson: Volume was supported by higher year-over-year production at Cold Lake, including continued strong results at Grand Rapids. We also utilized our enhanced winter operating procedures at Curl to manage through the extreme cold weather conditions in February. Syncrude production was steady year over year. In the downstream, refinery throughput averaged 397,000 barrels per day, which equates to a refinery utilization of 91%, while petroleum product sales averaged 455,000 barrels per day. Renewable diesel project construction continued at the Strathcona refinery, and we are on track to start up mid 2025. We paid $307 million in dividends and finished the quarter with nearly $1,800,000,000 of cash on hand.

Speaker Change: Volume was supported by higher year over year production at Cold Lake, including continued strong results of Grand Rapids.

Speaker Change: We also utilized our enhanced winter operating procedures at curl to manage through the extreme cold weather conditions in February.

Speaker Change: Syncrude production was steady year over year in the downstream refinery throughput averaged 397000 barrels per day, which equates to a refinery utilization of 91% while petroleum product sales averaged 455000 barrels per day.

Speaker Change: Renewable diesel project construction continued at the Strat Kona refinery and we are on track to start up mid 2025.

Speaker Change: We paid $307 million in dividends and finished the quarter with nearly $1.800 billion of cash on hand, we remain fully committed to returning surplus cash to shareholders in a timely manner and intend to renew our normal course issuer bid shortly towards the end of the second quarter and with that I'll pass.

Bradley Corson: We remain fully committed to returning surplus cash to shareholders in a timely manner, and intend to renew our normal course issuer bid shortly towards the end of the second quarter.

Daniel Lyons: And with that, I'll pass things over to Dan to discuss our financial results in more detail. Thanks, Brad. Starting with financial results for the quarter, we recorded net income of $1,288,000,000, up $93,000,000 from the first quarter of 2024, primarily driven by higher upstream margins. When comparing sequentially, first quarter net income is up $63,000,000 from the fourth quarter of 2024, primarily driven by higher downstream margin capture. Now, shifting our attention to each business line and looking sequentially, upstream earnings of $731,000,000 are down $147,000,000 from the fourth quarter, primarily due to lower volumes. Downstream earnings of $584,000,000 are up $228,000,000 from fourth quarter, mainly reflecting higher margin capture.

Speaker Change: Things over to Dan to discuss our financial results in more detail. Thanks, Brad starting with financial results for the quarter. We recorded net income of $1 billion and $288 million up $93 million from the first quarter of 2024, primarily driven by higher upstream margins when compare.

Dan Lyons: Sequentially first quarter net income is up $63 million from the fourth quarter of 2024, primarily driven by higher downstream margin capture now shifting our attention to each business line and looking sequentially upstream earnings of $731 million or down 140.

$7 million from the fourth quarter, primarily due to lower volumes downstream earnings of $584 million or up $228 million from fourth quarter, mainly reflecting higher margin capture our chemical business generated earnings of $31 million up $10 million.

Daniel Lyons: Our chemical business generated earnings of $31,000,000, up $10,000,000 from the fourth quarter. Moving on to cash flow in the first quarter we generated $1,527,000,000 in cash flows from operating activities excluding unfavorable working capital effects of $233,000,000 cash flows from operating activities for the first quarter of $1,760,000,000 up $239,000,000 from the first quarter of 2024. We ended the quarter with $1,764,000,000 of cash on hand. Shifting to CapEx, capital expenditures totaled $398,000,000 in the first quarter, about $100,000,000 lower than the first quarter of 2024 driven by project timing.

Dan Lyons: From the fourth quarter.

Dan Lyons: Moving on to cash flow in the first quarter, we generated $1 billion $527 million in cash flows from operating activities, excluding unfavorable working capital effects of $233 million cash flows from operating activities for the first quarter of $1 $760 million up.

Dan Lyons: $239 million from the first quarter of 2024, we ended the quarter with $1 $764 million of cash on hand.

Dan Lyons: Shifting to Capex capital expenditures totaled $398 million in the first quarter about $100 million lower than the first quarter of 2024, driven by project timing, our full year outlook remains consistent with our previously issued guidance and the upstream first quarter spending four.

Daniel Lyons: Our full year outlook remains consistent with our previously issued guidance. In the upstream, first quarter spending focused on sustaining and growing production at Curl, Syncrude, and Cold Lake, and the downstream first quarter spending mainly included continued progress on a renewable diesel project at Strathcona.

Dan Lyons: <unk> on sustaining and growing production at Kearl and Syncrude in Cold Lake and the downstream first quarter spending mainly included continued progress on our renewable diesel project add stress conant.

Daniel Lyons: Moving to shareholder distributions. This morning, we declared a second quarter dividend of $0.72 per share consistent with our first quarter dividend. A reliable and growing dividend remains the foundation of our free cash flow distribution strategy. We also remain committed to returning surplus cash to shareholders. And as Brad noted, we intend to renew our annual NCIB share buyback program in June.

Dan Lyons: Moving to shareholder distributions. This morning, we declared a second quarter dividend of <unk> 72 per share consistent with our first quarter dividend, a reliable and growing dividend remains the foundation of our free cash flow distribution strategy. We also remain committed to returning surplus cash to <unk>.

Dan Lyons: Shareholders and as Brad noted, we intend to renew our annual <unk> and CIB share buyback program in June now I'll turn it back to Brad to discuss our operational performance.

Bradley Corson: Now I'll turn it back to Brad to discuss our operational Thanks, Dan. I know you've all had a chance to look through the numbers, but I do want to focus your attention on some of our key performance highlights. Upstream production for the quarter averaged 418,000 oil equivalent barrels per day. Production was down 42,000 barrels per day versus the fourth quarter, and down slightly or 3000 barrels per day versus the first quarter of 2024, which as you may recall, was a record first quarter when adjusting for the XTO divestment. And so off to a strong start for the upstream.

Brad Corson: Thanks, Dan.

Brad Corson: I know you've all had a chance to look through the numbers, but I do want to focus your attention on some of our key performance highlights.

Brad Corson: <unk> stream production for the quarter averaged 418000 oil equivalent barrels per day.

Brad Corson: Reduction was down 42000 barrels per day versus the fourth quarter and down slightly or 3000 barrels per day versus the first quarter of 2024.

Brad Corson: As you May recall was a record first quarter when adjusting for the <unk> divestment and so off to a strong start for the upstream.

Bradley Corson: We typically do see lower volumes in the first quarter on a seasonal basis versus the back half of the year. In addition, we managed through some extreme cold weather this year in February.

Brad Corson: We typically do see lower volumes in the first quarter on a seasonal basis versus the back half of the year.

Brad Corson: In addition, we managed through some extreme cold weather this year in February so, let's move on and talk specifically about Carl.

Bradley Corson: So let's move on and talk specifically about curl. Curls production in the first quarter averaged 256,000 barrels per day gross, which is down 43,000 barrels per day versus the fourth quarter and down 21,000 barrels per day versus the first quarter record previously set in 2024. While curl got off to a strong start in January, extreme weather conditions rolled in for most of February, conditions we haven't seen since the winter of 2022. We utilized our enhanced operating procedures, including deliberately slowing down volumes to manage through these extreme weather conditions. And I'm happy to report that curl materially improved relative to the first quarter of 2022 under similar harsh conditions when total gross production averaged 186,000 barrels per day.

Brad Corson: <unk> production in the first quarter averaged 256000 barrels per day, gross which is down 43000 barrels per day versus the fourth quarter and down 21000 barrels per day versus the first quarter record previously set in 2024.

Brad Corson: While <unk> got off to a strong start in January extreme weather conditions rolled in for most of February conditions, we haven't seen since the winter of 2022.

Brad Corson: We utilized our enhanced operating procedures, including deliberately slowing down volumes to manage through these extreme weather conditions and I'm happy to report that curled materially improved relative to the first quarter of 2022 under similar harsh conditions when total gross production.

Brad Corson: Average 186000 barrels per day that said, we did experience some unplanned downtime in March that impeded a faster recovery.

Bradley Corson: That said, we did experience some unplanned downtime in March that impeded a faster recovery. We managed through that as well, and April was a very strong month with production very close to our best ever April production record of 300,000 barrels per day gross. So despite lower volumes year over year, I continue to be very proud of their curl team for their hard work, their resilience and overcoming adversity.

Brad Corson: We manage through that as well in April was a very strong month with production very close to our best ever April production record of 300000 barrels per day gross.

Brad Corson: So despite lower volumes year over year I continue to be very proud of their pearle team for their hard work their resilience and overcoming adversity and we continue to have great confidence in Pearl and our plans to grow volumes further and continue to lower the unit cash cost as you heard us detail at <unk>.

Bradley Corson: And we continue to have great confidence in curl and our plans to grow volumes further and continue to lower the unit cash costs, as you heard us detail at Investor Day. A good example of our continued efforts to optimize curl is taking place this month. In May, we're conducting the planned turnaround at the K-2 train. The planned turnaround will start next week and is scheduled to be completed by the end of May. And per our corporate guidance, the expected volumetric impact for the year is around 9000 barrels a day. Following this year's turnaround, we are targeting to run the K2 train for four years, double the previous interval with the next planned turnaround in 2029.

Brad Corson: <unk> D a.

Brad Corson: A good example of our continued efforts to optimize curl is taking place this month.

Brad Corson: In May we are conducting the planned turnaround at the K to train the planned turnaround will start next week and is scheduled to be completed by the end of May.

Brad Corson: And per our corporate guidance the expected volumetric impact for the year is around 9000 barrels a day.

Brad Corson: Following this year's turnaround we are targeting to run the K to train for four years double the previous interval with the next planned turnaround in 2029.

Bradley Corson: Moving to Cold Lake. For the first quarter, Cold Lake production averaged 154,000 barrels per day, which is down 3,000 barrels per day versus the fourth quarter of 2024, and up 12,000 barrels per day versus the first quarter of 2024. Primarily driven by Grand Rapids and partially offset by production and steam cycle timing. New Advantage solvent assisted SAG-V production is enabling transformation at Coal Lake with higher production at lower unit cash costs. Our first quarter results bear that out. Grand Rapids Solvent Assisted SAGD production continued to exceed expectations with a quarterly average production of 23,000 barrels per day, supporting Colegs volume, but also improving its unit cash costs decreased by over three dollars U.S.

Brad Corson: Moving to Cold Lake for the first quarter Cold Lake production averaged 154000 barrels per day, which is down 3000 barrels per day versus the fourth quarter of 2024 and up 12000 barrels per day versus the first quarter of 2024, primarily.

Brad Corson: Even by Grand Rapids, and partially offside offset by production and steam cycle timing.

Brad Corson: New advantaged solvent assisted <unk> production is enabling transformation that cold lake with higher production at lower unit cash costs.

Brad Corson: Our first quarter results bear that out Grand Rapids solvent assisted Sag D production continued to exceed expectations with a quarterly average production of 23000 barrels per day supporting cold legs volume, but also improving its unit cash costs.

Brad Corson: Decreased by over <unk>.

Brad Corson: $3 U S per barrel compared to a year ago.

Bradley Corson: per barrel compared to a year ago. This is exciting and gives us great confidence in future solvent-assisted SAG-D developments as well as achievement of our production and unit cost goals for the asset.

Brad Corson: This is exciting and gives us great confidence in future solvent assisted sag the developments as well as achievement of our production and unit cost goals for the asset.

Bradley Corson: Just last week, we started the plan turnaround work on the McKeesus plant at Cold Lake. Speaking with the team, the work is progressing well and is expected to be completed by early June with a full year volume impact of 3,000 barrels a day.

Brad Corson: Just last week, we started the plan turnaround work on the <unk> plant at Cold Lake speak.

Brad Corson: Speaking with the team the work is progressing well and is expected to be completed by early June with a full year volume impact of 3000 barrels a day.

Bradley Corson: The next transformation of the Cold Lake asset is the Lemming FAG-B project. Construction is materially complete now, with commissioning progressing throughout this quarter. We are anticipating first steam to be injected this summer with first production following later in the year. The Lemming SAG-D project is anticipated to produce an additional 9,000 barrels per day at peak level.

The next.

Brad Corson: Formation of the Cold Lake asset is the lending Sag D project construction is materially complete now with commissioning progressing throughout this quarter.

Brad Corson: We are anticipating first steam to be injected this summer with first production. Following later in the year.

Brad Corson: The lending Sag D project is anticipated to produce an additional 9000 barrels per day at peak levels.

Bradley Corson: I also wanted to provide a brief update on the EBRT pilot at our Aspen League. We recently reached a key milestone with successful drilling of the three horizontal wellpipes. As a reminder, we are constructing the pilot project this year and next, and then intend to start up in early 2027.

Brad Corson: I also wanted to provide a brief update on the <unk> pilot at our Aspen lease with.

Brad Corson: We recently reached a key milestone with the successful drilling of the three horizontal well pairs. As a reminder, we are construction constructing the pilot project. This year and next and then intend to start up in early 2027.

Bradley Corson: EBRT is a transformative new technology that could be applied to our significant undeveloped in-situ oil sands resource base to achieve low cost, lower emission, volume growth for decades to come.

Brad Corson: <unk> is a transformative new technology that could be applied to our significant undeveloped in situ oil sands resource base to achieve low cost lower emission volume growth for decades to come.

Bradley Corson: Now just a few comments on Syncrude. Imperial's share of Syncrude production for the quarter averaged 73,000 barrels per day, which was down 8,000 barrels per day versus the fourth quarter of 2024 and flat versus the first quarter of 2024. During the quarter, as a result of unplanned downtime, Syncrude continued to utilize the InterConnect pipeline to import bitumen and gas oil, ensuring the upgrader remained full and producing about 15,000 barrels per day, our share of incremental Syncrude Sweet Premium in the quarter.

Brad Corson: Now just a few comments on syncrude.

Brad Corson: Imperial's share of Syncrude production for the quarter averaged 73000 barrels per day, which was down 8000 barrels per day versus the fourth quarter of 2024 and flat versus the first quarter of 2024.

Brad Corson: During the quarter as a result of unplanned downtime Syncrude continued to utilize the interconnect pipeline to important bitumen in gas oil ensuring the upgrader remain full and producing about 15000 barrels per day, our share of incremental syncrude sweet premium in the quarter.

Bradley Corson: Moving on to the downstream, we refined an average of 397,000 barrels per day, reflecting a utilization of 91%. This compares to 407,000 barrels per day a year ago, and 411,000 barrels per day in the fourth quarter. Lower throughput in the first quarter reflects some additional maintenance conducted in our eastern manufacturing hub. We're conducting two planned turnarounds here in the second quarter at both Strathcona and Nanticoke, as we laid out in our corporate guidance outlook. As a reminder, we have our final planned turnaround at Sarnia later this year, straddling the third and fourth quarters.

Brad Corson: Moving on to the downstream, we refined an average of 397000 barrels per day, reflecting a utilization of 91%.

Brad Corson: This compares to 407000 barrels per day, a year ago, and 411000 barrels per day in the fourth quarter.

Brad Corson: Lower throughput in the first quarter reflects some additional maintenance conducted in our eastern manufacturing hub.

Brad Corson: We're conducting two planned turnarounds here in the second quarter at both stress Kona and nanticoke as we laid out in our corporate guidance outlook. As a reminder, we have our final planned turnaround at Sarnia later this year straddling the third and fourth quarters and finally, we expect to complete construction of the <unk>.

Bradley Corson: And finally, we expect a complete construction on the Strathcona Renewable Diesel Project facilities shortly here in the second quarter with unit startup planned for mid 2025. Petroleum product sales in the quarter were 455,000 barrels per day, which is down 3000 barrels per day versus the fourth quarter of 2024, and up 5000 barrels per day versus the first quarter of 2024. And turning now to chemicals, earnings in the first quarter were $31 million, which was up $10 million versus the fourth quarter. Earnings in the quarter were down $26 million versus the first quarter in 2024, primarily due to lower margins and the aromatic segment shift to the downstream, which we announced effective the third quarter of last year.

Brad Corson: Kona renewable diesel project facilities shortly here in the second quarter with unit startup planned for mid 2025.

Brad Corson: Petroleum product sales in the quarter were 455000 barrels per day, which is down 3000 barrels per day versus the fourth quarter of 2024 and up 5000 barrels per day versus the first quarter of 2024.

Brad Corson: And turning now to chemicals earnings in the first quarter were $31 million, which was up $10 million versus the fourth quarter.

Brad Corson: Earnings in the quarter were down $26 million versus the first quarter in 2024, primarily due to lower margins and the aromatics segments shift to the downstream, which we announced effective the third quarter of last year.

Brad Corson: In closing this was another strong quarter and I'm very proud of imperial's positioning for the future. It has been an honor for me to lead Imperial as chairman President and CEO for nearly five and a half years I could never have imagined that my journey.

Bradley Corson: In closing, this was another strong quarter. And I'm very proud of Imperial's positioning for the future.

Bradley Corson: It has been an honor for me to lead Imperial as Chairman, President and CEO for nearly five and a half years. I could never have imagined that my journey Our journey would encompass both the most challenging conditions in the company's 145-year history during the pandemic, but then followed by several record-breaking achievements, both operationally and financially, with the best years in the company's history. I am confident that Imperial will continue to thrive and achieve even greater success in the years to come. I'm also very excited to see our investment decisions coming to fruition, most notably Grand Rapids that is exceeding expectations, autonomous haul trucks and other reliability and production enhancements at Curl and our Strathcona Renewable Diesel Project that is scheduled to start up in the coming months.

Brad Corson: Our journey would encompass both the most challenging conditions in the company's 145 year history during the pandemic.

But then followed by several record breaking achievements, both operationally and financially with the best years in the company's history.

Brad Corson: I am confident that imperial will continue to thrive and achieve even greater success in the years to come.

Brad Corson: I'm also very excited to see our investment decisions coming to fruition, most notably Grand Rapids that is exceeding expectations autonomous haul trucks and other reliability and production enhancements at Pearl and our stress toner renewable diesel project that is scheduled to start up in the coming months.

Bradley Corson: And these are just a few.

Brad Corson: And these are just a few.

Bradley Corson: For my first day at Imperial, I have been consistently impressed by our team. And over the past five years, I've been continually reminded of the exceptional quality of our people. Their ingenuity, their drive, resilience, and focus are evident every day as they work tirelessly to improve our business and provide critical energy supplies to society. The results of this great team have been reflected in our ability to deliver exceptional shareholder returns, and that commitment remains unchanged. I'm extremely proud of what we have delivered for our shareholders in terms of share price appreciation, dividend growth, and returning surplus cash through share buyback.

Brad Corson: For my first day at Imperial I have been consistently impressed by our team and over the past five years I've been continually reminded of the exceptional quality of our people.

Brad Corson: Ingenuity their drive resilience and focus are evident every day.

Brad Corson: As they work tirelessly to improve our business and provide critical energy supplies to society.

Brad Corson: The results of this great team had been reflected in our ability to deliver exceptional shareholder returns and that commitment remains unchanged.

I'm extremely proud of what we have delivered for our shareholders in terms of share price appreciation and dividend growth and returning surplus cash through share buybacks.

Bradley Corson: I'm also pleased to welcome John Whelan, who is anticipated to succeed me as chairman and CEO at our upcoming AGM next week on May 8th. As I mentioned at Investor Day, John and I have known each other for over 20 years and our paths have crossed multiple times. He has worked under my leadership twice during my 42 year career, and we have worked together on multiple leadership teams. John is returning to Imperial after serving as Senior Vice President of Exxon Mobil Upstream Company since 2020. And prior to that role, as many of you know, John served as Imperial's Senior Vice President for the Upstream from 2017 to 2020.

Speaker Change: I'm also pleased to welcome John Whalen, who is anticipated to succeed me as chairman and CEO at our upcoming AGM next week on May eight.

Speaker Change: As I mentioned at Investor Day, John and I have known each other for over.

Speaker Change: 20 years in our pads have cross multiple times.

Speaker Change: Has worked under my leadership twice during my 42 year career, and we have worked together on multiple leadership teams.

Brad Corson: One is returning to imperial after serving as senior Vice President of Exxonmobil upstream company since 2020 and prior to that role as many of you know John served as Imperial Senior Vice President for the upstream from 2017 to 2020 with his extensive experience I am confident that John is.

Bradley Corson: With his extensive experience, I am confident that John is the right person to lead Imperial into the future.

Speaker Change: The right person to lead imperial into the future.

Bradley Corson: So as always, I'd like to thank you once again for your continued interest and support, and wish you all the best in the future. And although I won't be leading any more of these earnings calls, rest assured, I will be listening and celebrating the company's continued success.

Brad Corson: So as always.

Brad Corson: To thank you once again for your continued interest and support.

Brad Corson: And wish you all the best in the future.

Brad Corson: And although I won't be leaving any more of these earnings calls rest assured I will be listening and celebrating the company's continued success.

Peter Shaw: And now we'll move to the Q&A session. So I'll pass it back to Peter. Thank you, Brad. As always, we'd appreciate it if you could limit yourself to one question plus a follow up so that we can get to all the questions.

Peter: And now we'll move to the Q&A session. So I'll pass it back to Peter.

Peter: Thank you Brad is always be depreciated, if you can limit yourself to one question plus a follow up so that we can get to all the questions. So with that operator can you. Please open up the line for questions.

Unknown Executive: So with that operator, can you please open up the line for questions? Thank you. If you would like to signal with questions, please press star 1 on your touchtone telephone.

Speaker Change: Thank you if you would like to signal what questions. Please press star one on your Touchtone telephone if you join US today use a speaker phone. Please make sure mute function is turned off to allow your signal to reach our equipment again that is star one if you would like to signal what questions.

Unknown Executive: If you're joining us today using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, that is star 1 if you would like to signal with questions.

Greg Pardy: And our first question will come from Greg Pardy with RBC Capital Markets. Yeah, thanks. Good morning. And, look, absolutely great chapter, I think, in Imperials history.

Speaker Change: First question will come from Greg Pardy with RBC capital markets.

Greg Pardy: Yes. Thanks, good morning, and look absolutely great chapter I think in Imperial's history, and Brad just all the best to you and of course welcome welcome Joanne.

Bradley Corson: And Brad, just all the best to you.

Greg Pardy: And of course, welcome. Welcome, John. Again, two very different questions, but maybe just on the operations side, I was curious, the downstream numbers looked, you know, really good. And I know you alluded to some margin capture.

Speaker Change: Again.

Speaker Change: Two very different questions, but maybe just on the operation side I was curious.

Speaker Change: The downstream numbers looked really good and I know you alluded to.

Speaker Change: Some margin capture Im just wondering if we could dig in a little bit more into perhaps.

Bradley Corson: I'm just wondering if we could dig in a little bit more into perhaps, you know, where you captured additional margin in the downstream in the first quarter, maybe versus Yeah, thanks for the questions, Greg. And, and great to hear from you after seeing you at our Investor Day. You know, we talk extensively about the value of our downstream, the value of integration, the advantages we have structurally here in Canada, all of those have contributed to our success here in the first quarter in the downstream.

Speaker Change: Where you captured additional margin in the downstream in the first quarter maybe versus others.

Speaker Change: Yeah, Thanks for the questions Greg and.

Speaker Change: And great to hear from you after seeing you at our Investor day.

Speaker Change: We talked extensively about the value of our downstream the value of integration.

Speaker Change: The advantages we have structurally here in Canada all of those have contributed.

Speaker Change: Our success here.

Speaker Change: In the first quarter in the downstream.

Scott Maloney: But since we got Scott here, you know, maybe I'll ask him to make a few more comments on what's unique here in the first quarter. Yeah, thanks, Brad. We've certainly leveraged a lot of those structural advantages, as Brad mentioned before, to place our barrels in the highest uplift opportunities, both on the eastern and western part of Canada. And that's, that's structurally what what helped us deliver these stronger numbers this year. We've also had some volatility in the marketplace. And that volatility gives us some opportunity for placing those barrels in the highest uplift opportunity. And as you see, in typical first quarters, as the quarter goes on, you start to see some maintenance activity from a turnaround perspective, start to play in the last part of the first quarter.

Speaker Change: But since we got Scott here.

Speaker Change: Maybe I'll ask him to make a few more comments on what's what's unique here in the first quarter.

Scott Maloney: Yes, Thanks, Brad.

Scott Maloney: We've certainly leveraged a lot of those structural advantages as Brad mentioned before.

Scott Maloney: Our barrels in the highest uplift opportunities both on the eastern and Western part of Canada.

Scott Maloney: That's structurally what what helped us deliver these stronger numbers. This year. We've also had some volatility in the marketplace.

Scott Maloney: That volatility gives us some opportunity for.

Scott Maloney: Placing those barrels in the highest uplift opportunity and as you see in typical first quarters as the quarter goes on you start to see some maintenance activity from a turnaround perspective start to play in the last part of the first quarter and that also enables some additional margin a downstream business.

Scott Maloney: And that also enables some additional margin of downstream business.

Speaker Change: Okay. Thanks for that and it completely different question I mean with the renewal of the in CIB. The last number of years has been.

Greg Pardy: Thanks for that.

Greg Pardy: And a completely different question. I mean, with the renewal of the NCIB, the last number of years has been, you know, really acceleration into the second half of the year. How are you thinking, especially just given a pretty sloppy oil price backdrop?

Speaker Change: Really acceleration into the second half of the year, how are you thinking, especially just given the pretty sloppy oil price backdrop is the thinking that you'd accelerate or that you would perhaps executed over a one year timeframe or is it all to be determined.

Bradley Corson: Is the thinking that you'd accelerate or that you would perhaps execute it over a one year time frame? Or is it all to be determined? Yeah, it's a great question, Greg. And, and there's no doubt there's a lot of uncertainty in the market. you know what with this first quarter results is the strong resilience that we provide with the integrated nature of our business model, you know, coupled with just the underlying strength of our assets. So that allows us to kind of maintain consistency in our strategies and avoid, you know, having to make fundamental changes.

Yeah, It's a great question, Greg and and Theres no doubt Theres a lot of uncertainty in the market.

Speaker Change:

Speaker Change: With this first quarter results.

Speaker Change: Is the strong resilience that we provide.

Speaker Change: With the integrated nature of our business model, coupled with just the underlying strength of our assets. So that allows us to.

Speaker Change: Kind of maintain consistency and our strategies.

Speaker Change: And avoid having to make fundamental changes and with respect to the NCI b.

Bradley Corson: And with respect to the NCIB, you know, obviously, we're going to monitor, you know, what those external factors are. You know, we're in a very strong cash position right now. We have no reason to believe that's going to fundamentally change as we move to the second half of the year. And so consequently, you know, we'll be taking the decision as we go as to what's the right pace. But as you point out, you know, over the last couple of years, certainly it's been our behavior, our approach to accelerate the NCIB. And really a key driver there is this underlying principle of we want to return surplus cash to shareholders in a timely manner.

Speaker Change: Sure.

Speaker Change: Obviously, we're going to monitor.

Speaker Change: What those external factors are.

Speaker Change: We're in a very strong cash position right now.

Speaker Change: We have no reason to believe that's going to fundamentally change as we move to the second half of the year and so consequently.

We'll be taking a decision as we go as to what's the right pace.

Speaker Change: As you pointed out.

Speaker Change: Over the last couple of years, certainly it's been our behavior our approach to accelerate the CIB.

Speaker Change: And really a key driver there is this underlying principle of we want to return surplus cash to shareholders in a timely manner and so accelerating the NCI b in the past has given us that flexibility.

Bradley Corson: And so accelerating the NCIB in the past has given us that flexibility. And as we look to the future, you know, we'll continue to make those assessments, whether that is appropriate or not.

Speaker Change: And as we look to the future we will continue to make those assessments, whether whether that is appropriate or not.

Bradley Corson: You know, and I don't want to get too far ahead of myself or ahead of, you know, John and the rest of the leadership team. But one of the reasons we've accelerated in the past is to give us flexibility, you know, for an SIB if that was necessary to further return surplus cash. So, you know, still a lot of uncertainty several months ahead for the year. But, you know, what you can count on is we will be returning surplus cash in a timely manner.

Speaker Change: And I don't want to get too far ahead of myself.

Speaker Change: Ahead of John and the rest of the leadership team, but one of the reasons we've accelerated in the past is to give us flexibility.

Speaker Change: For an S I'd be if that was necessary.

Speaker Change: To further return surplus cash so.

Speaker Change: Still a lot of uncertainty several months ahead for for the year.

Speaker Change: But what you can count on us we will be returning surplus cash in a timely manner.

Speaker Change: Alright, thanks, very much and good luck.

Greg Pardy: Thanks very much and good luck. Thanks, Greg.

Greg Pardy: Thanks, Greg.

Manav Gupta: And our next question will come from Manav Gupta with UBS. Good morning, Brad. I think a lot of investors would echo that IMO today is a much stronger company than it was five years ago. I think if you look at the stock price itself, exactly five years ago, it was below $21. So the stock price appreciation is clearly reflecting the good work that you have put in. My first quick question here is, as we look at, I mean, there's a lot of focus on coal cash costs, but if you look at coal lake cash costs, again, down about like 18% year-over-year.

Speaker Change: And our next question will come from Manav Gupta with UBS.

Manav Gupta: Good morning, Brad I think a lot of investors, who would echo that and more today as a much stronger company than it was five years ago. I think if you look at the stock price itself.

Manav Gupta: Exactly five years currently below $21 or so in the stock price appreciation is clearly reflecting the good work that you have put in.

Speaker Change: My first quick question Hana as he looked at it I mean, there's a lot of focus on coal cash cost, but if you look at quarterly cash costs again down about 18%, Italy.

Bradley Corson: Now you obviously have Grand Rapids doing better than expected and Lemon coming on later in the year. So how should we think about the cash costs at coal lake for the rest of the year, and maybe more importantly, for 2026? Yeah, thanks for the comment, Manav. And, and thanks so much words and, you know, in recognition of, of what the whole team has accomplished, you know, which is obviously reflected in our share price. And that has very much been a collective effort of this great organization and team that that have surrounded and supported me over the last five years.

Speaker Change: Now you obviously have gotten app is doing better than expected and lemon coming on later in the air. So how should we think about the cash cost at cold Lake for the rest of the <unk> and maybe more importantly for 2026.

Hana: Yes, thanks for the comment Manav.

Speaker Change: And thanks, so much words and in recognition of of what the.

Speaker Change: The whole team has accomplished.

Speaker Change: Which is obviously reflected in our share price and that has very much been.

Speaker Change: <unk> effort of this great organization and team that that have surrounded and supported me over the last five years.

Bradley Corson: With respect to your question, I'm glad you you called out Coal Lake. You know, we have talked extensively over the last years about curl because we've been on an important journey to get curl to $20 a barrel. We've achieved that now. We're working quite diligently to get curl to $18 a barrel. But what's been progressing in parallel to that is a really important strategy to improve the structural costs at Cold Lake as well. Grand Rapids and SA Sag D as a technology is a key enabler because it fundamentally is our lower cost barrels that we're bringing on.

Speaker Change: With respect to your question I'm glad you you.

Speaker Change: Called out Cold Lake.

Speaker Change: We have.

Speaker Change: Talked extensively.

Speaker Change: Over the last years about curled because we've been on an important journey to get Perl to $20. A barrel. We've achieved that now we're working quite diligently to get curl to $18 a barrel.

Speaker Change: But what's been progressing in parallel to that is a really important strategy.

Speaker Change: To improve the structural costs at cold Lake as well Grand Rapids and in SA.

Speaker Change: SA Sag D as a technology.

Speaker Change: As a key enabler because it fundamentally as our lower cost barrels that we're bringing on.

Bradley Corson: You know, as I noted, compared to a year ago, Cold Lakes, cash costs are down $3 a barrel. And this is all on our journey, as we talked about an investor day to get us to $13 a barrel. So, you know, as the year goes on, we're going to continue to strive for further improvements, continued Grand Rapids success, and strong volume performance will contribute to that. And then certainly as we start up levy, you know, those are lower cost barrels as well. And so, those will further support this journey to $13 a barrel. So, you know, several months ahead of us.

Speaker Change: As I noted.

Speaker Change: <unk> two year ago Cold Lake.

Speaker Change: Cash costs are down $3, a barrel and this is all on our journey as we've talked about at Investor day, too to get us to $13 a barrel. So.

As the year goes on we're going to continue to strive for further improvements continued.

Speaker Change: Grand rapid success.

Speaker Change: And strong volume performance will contribute to that.

And then certainly as we startup levy.

Speaker Change: Those are lower cost barrels as well and so those will further support this journey to $13 a barrel so.

Speaker Change: Several months ahead of us.

Bradley Corson: But The strategy is that we are continuing to work on our cost structure, really across all our assets, but specifically here at Cold Lake and Grand Rapids, Lemming, everything we're doing with these, these new developments are targeted towards lower costs, lower cost. So I feel quite good about that. I don't know that there's really anything else I would add at this, but kind of watch this space because it's really exciting what the team is doing at Cold Lake.

Speaker Change: But.

Speaker Change: The strategy is that we are continuing to work on our cost structure really across all our assets, but specifically here at cold Lake and Grand Rapids, lapping everything we're doing.

Speaker Change: With these these new developments are targeted towards lower cost lower cost.

Speaker Change: So I feel quite good about that.

Speaker Change: I don't know that Theres really anything else I would add at this but kind of watch this space.

Speaker Change: Because it's really exciting.

Speaker Change: What the team is doing at Cold Lake.

Manav Gupta: Perfect. My quick follow up here is, you have a unique refining system, you get your lever to the East Coast crack, Chicago cracks, even the West Coast crack. We are in a relatively tougher macro environment.

Speaker Change: Perfect My quick follow up here it is.

Speaker Change: Do you have a unique refining system and looking at your.

Speaker Change: Levered to the east coast crack Chicago cracks, even divest cost correct.

Speaker Change: Yes.

Speaker Change: Relatively tougher macro environment and I just wanted to understand from you from your refining system.

Bradley Corson: And I just wanted to understand from you, from your refining system, have you seen any signs of recessionary demand kick in? Or the markets are you supplying to, the underlying demand remains? relatively resilient, even if the macro seems choppy. So if you could help us with that. Yeah, thanks. And I mean, I think it is a good question. You know, I think I continue to come back to our resilience. You know, we have a diverse customer base. You know, we have broad infrastructure costs across the country. And all that allows us to take full advantage of the highest value markets that we see.

Speaker Change: Have you seen any signs of the recessionary demand kick in or the markets either supplying to the underlying demand remains.

Speaker Change: Relatively resilient, even if the macro seems choppy. So if you could help us in that.

Speaker Change: Yes. Thanks.

Speaker Change: I mean I think it is a good question.

Speaker Change: I think I continue to come back to our resilience.

Speaker Change: We have a diverse customer base.

Speaker Change: We have broad infrastructure cost across the country and all of that allows us to take full advantage of the highest value markets that we see.

Bradley Corson: You know, we have not seen any, you know, material degradation in demand. You know, there are always seasonal variations in all of our products. But nothing that I would say is, is particularly noteworthy at this point. And, you know, and then also contributing to that is, you know, when you look at product inventories across the country, you know, they not not specifically for us, but for the industry, you know, though, and globally, those those inventories are kind of at the lower end of the five year band. So, you know, all that contributes to the strength in the marketplace as well.

Speaker Change: We have not seen any yet.

Speaker Change: <unk> material degradation in the band.

Speaker Change: There are always seasonal variations in all of our products.

Speaker Change: But nothing that I would say is is particularly noteworthy at this point.

Speaker Change: And then also contributing to that as you know when you look at.

Speaker Change: Product inventories are across the country.

Speaker Change: They do not not specifically for us but for the industry.

And globally those those inventories are kind of at the lower end of the five year band So.

Speaker Change: All of that contributes to the strength in the marketplace as well.

Manav Gupta: Thank you. Thanks, Manav.

Speaker Change: Thank you.

Speaker Change: Thanks, Matt.

Dennis Fong: And our next question will come from Dennis Fong with CIBC World Marks. Hi, good morning. Thank you for taking my questions.

Speaker Change: And our next question will come from Dennis Fong with CIBC World markets.

Dennis Fong: Hi, Good morning, Thank you for taking my questions and I'd like to reiterate my congratulations on a job very well done.

Dennis Fong: And I'd like to reiterate my congratulations on a job very well done to you, Brad, and an incremental welcome to John. My first question focuses a little bit on the upstream side.

Speaker Change: To you Brad.

Speaker Change: And incremental welcome to John.

Speaker Change: My first question focuses a little bit on the upstream side I was hoping you could provide a little bit of incremental data points or clarity that really drive the confidence at running four year intervals between major maintenance as well as can you discuss some of the changes in either equipment or operating procedures that allow you for kind of maybe more minor maintenance to be.

Dennis Fong: I was hoping you could provide a little bit of incremental data points or clarity that really drive the confidence at running four year intervals between major maintenance, as well as can you discuss some of the changes in either equipment or operating procedures that allow you for kind of maybe more minor maintenance to be conducted that has like moderate or little impacts to output? Yeah, thank you, Dennis, and appreciate your comments there at the beginning. And it's, you know, it's an exciting journey we've been on with turnarounds at CURL. You think about where we were just a few years ago, we were conducting two turnarounds per year, and then moved to one turnaround per year.

Speaker Change: <unk> that is like moderate or little impacts to output.

Dennis Fong: Yes, Thank you Dennis.

Speaker Change: Appreciate.

Speaker Change: Your comments there at the beginning.

Speaker Change: And it's it's an.

Speaker Change: Citing journey, we've been on with turnarounds at Pearl When you think about where we were just a just a few years ago, we were conducting two turnarounds per year.

Speaker Change: And then moved to one turnaround per year and now over the last couple of years, we've reduced the duration of each of those turnarounds.

Bradley Corson: And now over the last couple of years, we've reduced the duration of each of turnarounds. You know, and as I mentioned, we're getting ready to start one of those turnarounds here next week. And we, you know, expect to complete it essentially in the same month, which, you know, historically, we would have never had kind of, you know, turnarounds limited to just one month in a year. But as we look to the future, we see this as integral and key to continuing to improve our volume performance and fundamentally our cost performance as well. We are planning after this turnaround to be in a position that we can run much longer between turnarounds, you know, and targeting four years.

Speaker Change:

Speaker Change: And as I mentioned, we're getting ready to start one of those turnarounds.

Speaker Change: Here next week and we.

Speaker Change: Expect to complete it essentially in the same month, which historically, we would've never had kind of turnaround is limited to just one month in a year, but as we look to the future. We see this as integral and key to continuing to improve our our volume performance.

Speaker Change: And fundamentally our cost performance as well.

Speaker Change: We are planning after this turnaround to be in a position that we can run much longer between turnarounds.

Speaker Change: And targeting for years.

Cheryl Gomez-Smith: But with that, you know, I've got Cheryl right here. She's right in the middle of this strategy and spent a lot of time with the CURL as they've refined that approach and demonstrating to her with confidence that this is achievable.

Speaker Change: But with that you know I've got Cheryl right here.

Speaker Change: She's she's right in the middle of of this strategy and spent a lot of time with the car.

Speaker Change: As they've.

Brad Corson: Refine that approach and demonstrating to her with confidence that this is achievable, but maybe I'll, let her talk little bit about some of the details alright. Thanks Brad.

Cheryl Gomez-Smith: But maybe I'll let her talk a little bit about some of the details. Sure. Thanks, Brad. As Brad mentioned, we've been on a journey to optimize our turnaround activity. This year, we are spending time to do the work that'll support this further extension to a four-year interval.

Speaker Change: As Brad mentioned, we've been on a journey to optimize our turnaround activity. This year. We are spending time to do the work that will support this further extension to a four year interval.

Cheryl Gomez-Smith: So what's made the difference? And what I would say along this journey, we've been integrating technology, really looking at our data and analytics to make better decisions. We've been benchmarking, continuing to leverage those global learnings. And then one of the things that you heard during Investor Day, as I mentioned, that we're sitting on a foundation of a continuous improvement mindset. And especially when I think about turnaround activity and how we optimize that, it's really focusing on driving clarity and a relentless focus on what needs to be done in a turnaround versus what we can do outside of a turnaround.

Speaker Change: So what has made the difference and what I would say along this journey, we've been integrating technology really looking at our data and analytics to make better decisions.

Speaker Change: We've been benchmarking continuing to leverage.

Speaker Change: Global learning.

Speaker Change: And then one of the things that you heard during Investor day, as I mentioned that we're sitting on a foundation of a continuous improvement mindset, and especially when I think about turnaround activity and how we optimize that it's really focusing on driving clarity and a relentless focus on what needs to be done in a turnaround versus what we can do outside of the turnaround. So there's that there's not a.

Cheryl Gomez-Smith: So those, you know, there's not a single item there. It's a mix of all of those enablers that are really going to get us from where we are right now to this four-year interval. Great.

A single item there, it's a mix of all of those enablers and it really going to get us from where we are right now to this four year interval.

Speaker Change: Great really appreciate that incremental clarity.

Dennis Fong: I really appreciate that incremental clarity.

Dennis Fong: My second question here is maybe targeted to Brad and maybe John. Through time, Imperial has acted opportunistically and even counter cyclically in terms of spending or deploying capital, especially as compared to some of your peers. Given the combination of the balance sheet strength that you see today, the longer duration view that Imperial takes on investment cycles, how are you strategically thinking about potentially taking advantage of all the uncertainty we see today in the market? Yeah, thanks. Thanks for that question. And, and, you know, certainly that has been our strategy in, in the past of, you know, ensuring that we are optimizing our capital, you know, how we target specific projects, and, you know, really focused on highest return.

Speaker Change: My second question here is maybe targeted to Brad and maybe John.

Speaker Change: Through time Imperial has acted opportunistically and even counter cyclically in terms of spending or deploying capital, especially as compared to some of your peers.

Speaker Change: Given the combination of the balance sheet strength that you see today the longer duration view that imperial takes on investment cycles. How are you strategically thinking about potentially taking advantage of all the uncertainty we see today in the market.

Speaker Change: Yeah. Thanks, Thanks for that question and and.

Speaker Change: Certainly that has our strategy and in the past of ensuring that we are optimizing our capital.

Speaker Change: How we target specific projects and really focused on highest return.

Bradley Corson: And, you know, I take that part of your underlying question is really about M&A type opportunities. And as I mentioned, in the past, you know, the aperture has always been open, and, you know, but the bar is high, because, you know, we have a very high quality portfolio today. And so anything we would pursue would have to compete with that. And so, you know, I don't expect that's going to fundamentally change.

Speaker Change: And I.

Speaker Change: I take that part of your underlying question is really about M&A.

Speaker Change: Type opportunities and as I've mentioned in the past.

Speaker Change: The aperture has always been open and but the bar is high because.

Speaker Change: We have a very high quality portfolio today and.

Speaker Change: So anything we would pursue would have to compete with that.

Speaker Change: And so I.

Speaker Change: I don't expect that's going to fundamentally change, but you know John is here and he'll he'll be kind of steering the ship now in.

John Whelan: But, you know, John is here, and, and he'll, he'll be kind of steering the ship now, in the future. And so maybe I'll let him talk a little bit about that.

John Whalen: In the future and so maybe I'll, let him talk a little bit about that yeah. Thanks, Brad.

John Whelan: Yeah, thanks, Brad. No, and I think it will not fundamentally change. I think it, you know, first, maybe I should say, you know, I'm really humbled and excited to return to Imperial in this role. And as a Canadian, you know, to have the opportunity to lead this company with such a long, proud Canadian history of over 145 years, you know, truly is an honour. I also, and I would echo many of the comments that were in the questions and opening remarks today, that I recognize I have some really big shoes to fill. Coming in behind Brad, as he's mentioned, we've known each other for over 20 years.

Speaker Change: It will not fundamentally change I think it first maybe I should say.

Speaker Change: I'm really humbled and excited to return to imperial in this role and as the Canadian heavy.

Speaker Change: The opportunity to lead this company with such a long proud Canadian history of over 145 years truly is an honor I also and I would echo many of the comments that were in the questions and opening remarks today that I recognize that has some really big shoes to fill coming in behind Brad as he has mentioned we've known each other for over 20 years and I know what a great leader in.

John Whelan: And I know what a great leader and a great person he is. And, and Imperial's performance under Brad has been outstanding. And I'm committed to making sure that we continue that outstanding performance going forward. And I'm committed to ensuring our shareholders and stakeholders and employees are proud to be a part of and associated with this company. But what you'll see under my leadership, you know, Imperial's strategy to win will remain very consistent. And it's really about increasing cashflow and delivering unmatched industry leading shareholder returns. And, and that focus will be the same will be on maximizing the value of our existing assets, you know, targeted optimization, and continued structural cost improvements, it's going to be investing on select growth opportunities within those enhance those assets like enhancements at Curl and Coal Lake and Strathcona.

Speaker Change: Great person, he is and and Imperial's performance under Brad has been outstanding and I'm committed to making sure that we continue that outstanding performance going forward and I'm committed to ensuring our shareholders and stakeholders and employees are proud to be a part of an associated with this company, but what youll see under my leadership.

Speaker Change: Imperial's strategy to win will remain very consistent and it's really about increasing cash flow and delivering unmatched industry, leading shareholder returns and that focus will be the same will be on maximizing the value of our existing assets.

Speaker Change: Targeted optimization and continued structural cost improvements, it's going to be investing on select growth opportunities within those those assets like enhancements at curling Cold Lake and stress Cola.

John Whelan: And then progressing some future strategic growth, you know, when we think about our in situ business, and continuing to assess opportunities as the, you know, energy transition landscape evolves, and then utilizing technology and so on to take advantage of that in our in our relationship with ExxonMobil. So you'll see a very consistent strategy, which I think has been a successful strategy. As we go forward, I'll be working very hard to leverage our competitive advantages. And I think we have advantages that others do not have around technology around scale, integration, execution, excellence, doing the right thing the right way to a high standard each and every time.

Speaker Change: And then progressing some future strategic growth when we think about our <unk> business and continuing to assess opportunities as the.

Speaker Change: Energy transition landscape evolves, and then utilizing technology and so on to take advantage of that and our relationship with Exxonmobil. So youll see a very consistent strategy, which I think has been a successful strategy. As we go forward that will be working very hard to leverage our competitive advantages I think we have advantages that others do.

Speaker Change: Not have around technology around scale integration.

Speaker Change: Execution excellence doing the right thing the right way to a high standard each and every time.

John Whelan: And, and what Brad talked about our people, you know, we've got the best people, the best team in the business with world class capabilities built up over generations, through rigorous development and challenging cross functional assignments, that that really do give us the best business, the best people in the business. So the way I look at it is, you know, we're going to take those competitive advantages that are unique to us, apply them to our advantaged assets and opportunities. And that's going to deliver leading value creation, and unmatched industry leading shareholder returns going forward. So I'll just use that opportunity to say that.

Brad Corson: And what Brad talked about are people, we've got the best people the best team in the business with World class capabilities built up over generations through rigorous development and challenging cross functional assignments that you really do give us the best business. The best people in the business. So the way I look at it is we're going to take those competitive.

Speaker Change: The advantages that are unique to us.

Speaker Change: By them to our advantaged assets and opportunities and that's going to deliver leading value creation.

Speaker Change: And unmatched industry, leading shareholder returns going forward. So I'll just use that opportunity to say that.

John Whelan: I also want to say thanks to Brad and the whole team here who've been, you know, very gracious with their time, onboarding me over the last month and a half or a couple of months, and we've had, you know, a very kind of structured, thoughtful, rigorous handover.

Speaker Change: I also want to say, thanks to Brad and the whole team here who have been in.

Speaker Change: Very gracious with their time.

Speaker Change: <unk> me over the last month and a half for a couple of months and we've had.

Speaker Change: Very kind of structured thoughtful rigorous handover. So thank you.

John Whelan: So thank you.

Menno Hulshof: And our next question will come from Menno Hulshof with TD Cowan.

Speaker Change: And our next question will come from Menno <unk> with TD Cowen.

Menno Hulshof: Good morning, everyone. And congrats to the to the both of you. I'll start with a question on the the February cold snap. It sounds like your opening in your opening comment spread, it sounded like things went reasonably well under the circumstances. But were there any additional learnings that came out of that beyond what was learned in 2022? And do you have any new ideas on work that could get done to mitigate downtime related to extreme cold going forward? Yeah, thanks, Menno and appreciate kind of your question. And I'm going to turn it over to Cheryl in a minute, but but I would just reflect on, you know, This February was a challenging February from a weather standpoint.

Speaker Change: Good morning, everyone and congrats to the to the both of you.

Speaker Change: I'll start with a question on the February cold snap. It sounds like you are opening in your opening comments spread it sounded like things went reasonably well under the circumstances, but were there any additional earnings that came out of that beyond what was learned in 2022 and do you have any new ideas on warrant that could get done to mitigate downtime.

Speaker Change: I did too extreme cold that going forward.

Speaker Change: Yeah. Thanks, Thanks, Menno and appreciate.

Speaker Change: Your question.

Speaker Change: And I'm going to turn it over to Cheryl in a minute, but but I would just reflect on.

Speaker Change: This February was a challenging February from a weather standpoint.

Bradley Corson: But as I mentioned, you know, we we learned from the 2022 incident around kind of what were some operating improvements we could put in place. We developed some additional protocols, which now we put in effect and and really leverage them to get us through a similar period this year than what we saw in 2022, but with much, much better results. And so, you know, while I would say it was unfortunate that the net result was still lower volumes compared to last quarter or last. I'm quite. and I think it it further demonstrated the strength of those protocols.

Speaker Change: But as I mentioned.

Speaker Change: We we learned from the 2022 incident around.

Speaker Change: Kind of what were some operating improvements we could put in place.

Speaker Change: We developed.

Speaker Change: Some additional protocols, which now we put in effect.

Speaker Change: And really leverage them to get us through a similar period this year than what we saw in 2022, but with much much better results and so you know.

Speaker Change: While I would say it was unfortunate that the net result was still lower volumes compared to.

Speaker Change: Last quarter or last.

Speaker Change: I'm quite proud.

Speaker Change: And then get it further demonstrated the strength of those protocols, but as always there is learnings and insights and we're going to continue to strive to be better.

Bradley Corson: But as always, there's learnings and insights, and we're going to continue to strive to be better in these sort of situations when they occur in the future.

Speaker Change: In these sort of situations when they occur in the future and so maybe I'll ask Cheryl to comment a little bit on some of those.

Cheryl Gomez-Smith: And so maybe I'll ask Cheryl to comment a little bit on some of those, you know, insights that we gained and, you know, how we're going to learn from those in the future. Sure, and thank you, Brad, and maybe a little bit of start. The cold weather protocols we exercise in extreme weather conditions. So think of this 25 degrees Celsius minus 35 degrees Celsius. And what we do is reduce throughput aligned with our equipment strategies and focus on maintaining equipment integrity. February 2022 or 2025 was in the Fort McMurray region one of the highest number of cold, extreme cold days versus 2022.

Cheryl: Insights that we gained in how we're going to learn from those in the future. Thank you, Brad and maybe a little bit of start the cold weather protocols, we exit.

Speaker Change: I mean weather conditions, so think of this.

Speaker Change: 25 degree Celsius minus 35 degrees Celsius.

Speaker Change: What we do is reduced throughput aligned with our strategy and focused on maintaining equipment integrity February 2000, 22025, with an important Murray region. One of the highest number of cold extreme cold days versus 2022, we applied the learnings from 2022 and the protocols worked as intended.

Cheryl Gomez-Smith: We applied the learnings from 2022, and the protocols worked as intended. And Brad mentioned, of course, we've, from a production with April, very strong months with production just below our best ever, still on target to meet external guidance.

Brad Corson: And Brad mentioned of course, we bought from a production with April very strong months with production just below our best ever still on target to meet external guidance in terms of what comes next and that's a great question going forward, we're looking at where can we build capacity and redundancy.

Cheryl Gomez-Smith: In terms of what comes next, and that's a great question, going forward, we're looking at where can we build capacity and redundancy. And I mentioned during IR investor day, some of the things that we're doing with our hydrotransport lines. And what that allows us is to further strengthen this performance going forward to quote unquote weather the storm. Okay, thanks for that.

Speaker Change: And I mentioned during IR Investor day, some of the things that we're doing it with our hydro transport line.

Speaker Change: That allows us to further strengthen this performance going forward to quote unquote, whether it's storms.

Speaker Change: Okay. Thanks for that Tim.

Menno Hulshof: Oh, sorry. I think my phone cut out. I think I'm interrupting. No, go ahead, sir. You're still open. Okay, terrific. Yeah, so maybe, yeah, thanks for that. It's very helpful.

Speaker Change: Oh, sorry, I think my phone cut out I think I am dropping go go go ahead, Sir you are still open.

Speaker Change: Okay terrific, yes, so maybe yes. Thanks for that is very helpful. Maybe I'll. Just second question is on the <unk> pilot.

Menno Hulshof: Maybe I'll just second question is on the EBRT pilot that was touched on in the prepared remarks. Could you maybe just expand your comments on the scope of the pilot? And the I guess the more important piece is the key deliverables that you've identified that ultimately constitutes success?

Speaker Change: It was touched on in the prepared remarks could you maybe just expand your comments on the scope of the pilot and the I guess the more important piece is the key deliverables that you've identified that ultimately constitute success and then how are you risking the overall chances of success of EBIT PRT ultimately.

Cheryl Gomez-Smith: And then how are you risking the overall chance of success of EBRT ultimately, I suppose, being a catalyst for Aspen I'll let Cheryl comment on that again.

Speaker Change: Suppose being a catalyst for Aspen sanctioning.

Speaker Change: I'll I'll, let Cheryl comment on that again, sorry, so as Brad mentioned, we're constructing a short term small scale pilot and that's just because the commercial potential of our enhanced bitumen recovery technology, Aspen leasing apartment Murray Aerion startup in 2027, and we're going to run the pilot for SAP.

Cheryl Gomez-Smith: Sure. So, as Brad mentioned, we're constructing a short-term, small-scale pilot, and this is to test the commercial potential of our enhanced bitumen recovery technology. Aspen Lease in the Fort McMurray area started in 2027, and we're going to run the pilot for several years, and there's three key areas that we really need to validate. One of them is the production uplift, the second one is around overall recovery, and then the project itself is really dependent on solvent recovery. The pilot is intended to de-risk these technologies, and this is a step that we've taken with all technology.

Speaker Change: But several years and there's three key areas that we really need to validate one of them is the production uplift. The second one is around overall recovery and then the project itself is really dependent on solvent recovery.

Speaker Change: Pilot is intended to de risk. These technologies and this is a step that we've taken with all technology.

Cheryl Gomez-Smith: So, as highlighted before, this is a transformative technology, and it will allow us to be more globally competitive, capitally efficient, and highly resilient. So, even though we are looking at this, we need to take the time, and this is a staged approach, really to de-risk the technology. So, that's the time we'll be taking with the pilot going forward. Thank you.

Speaker Change: As highlighted before.

Speaker Change: This is a transformative technology and it will allow us to be more globally competitive capital efficient and highly resilient. So it.

Speaker Change: Even though we are looking at this we need to take the time and this is a staged approach really does derisk. The technology. So that's the time, we'll be taking with the pilot going forward.

Speaker Change: Thank you ill turn it back.

Cheryl Gomez-Smith: I'll turn it back.

Peter Shaw: Thank you. And that does conclude the question and answer session.

Speaker Change: Thank you and that does conclude the question and answer session. I will now turn the conference back over to Peter Shaw, Vice President of Investor Relations for closing remarks.

Peter Shaw: I will now turn the conference back over to Peter Shaw, Vice President of Investor Relations for closing remarks. Thank you. And so on behalf of the management team, I thank you for joining us this morning. If there's any further questions, please don't hesitate to reach out to anybody on the investor relations team, we'll be happy to answer your questions.

Speaker Change: Thank you and so on behalf of the management team at thank you for joining US. This morning, if theres any further questions. Please don't hesitate to reach out to anybody on the Investor Relations team will be happy to answer your questions and with that I'll add one more thank you to Brad for his time over the last five and a half years at Imperial and we wish everybody on the call a great day.

Peter Shaw: And with that, I'll add one more thank you to Brad for his time over the last five and a half years at Imperial. And we wish everybody on the call a great day. Thank you.

Speaker Change: Thank you.

Unknown Executive: That does conclude today's conference. We do thank you for your participation. Have an excellent day.

Speaker Change: That does conclude today's conference we do thank you for your participation have an excellent day.

Speaker Change: [music].

Speaker Change: Yeah.