Q3 2025 Imperial Oil Ltd Earnings Call

October 31, 2025

Operator: Please stand by. Good day, welcome to the Imperial Oil Q3 2025 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Peter Shaw, Vice President of Investor Relations.

Peter Shaw: Good morning, everyone, welcome to our Q3 Earnings Conference Call. I am joined this morning by Imperial senior management team, including John Whelan, Chairman, President, and CEO. 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. 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.

Peter Shaw: Forward-looking information and the risk factors and assumptions are described in further detail on our Q3's earnings release that we issued this morning, as well as our most recent Form 10-K. All these documents are available on SEDAR+, EDGAR, and our website. I'd ask you to refer to those. John is going to start this morning with some opening remarks and then hand it over to Dan, who's going to provide the financial update. John will provide an operations update. Once we've done that, we'll allow time for Q&A. With that, I will turn it over to John for his opening remarks.

Today's comments, may contain forward-looking information any forward-looking information. Does not a guarantee of future performance and actual future performance. And operating results can vary materially, depending on the number of factors and assumptions.

We're looking for in the risk factors and assumptions are described as further detail on our third quarter's earnings release that we issued this morning as well as our most recent form 10K.

All these documents are available on Cedar, plus EDGAR and our website. So, I ask you to refer to those.

John Whelan: Thank you, Peter. Good morning, everybody, and welcome to our Q3 earnings call. I hope everyone is doing well. As always, we appreciate you taking the time to join us this morning. I'm really pleased to report another strong quarter. We generated cash flow from operations of nearly CAD 1.8 billion, and ended the quarter with approximately CAD 1.9 billion of cash on hand. To our shareholders, we delivered over CAD 1.8 billion through dividends and buybacks. Our strong financial performance and ability to return significant cash to shareholders was underpinned by higher volumes, including record crude production and high refinery utilization. With planned turnaround activity now complete, we're positioned for a strong finish to the year across all of our assets.

Over to John for his opening remarks.

Thank you, Peter. Good morning everybody. And welcome to our third quarter earnings call

I hope everyone is doing well, and as always, we appreciate you taking the time to join us this morning.

I'm really pleased to report another strong quarter.

We generated cash flow from operations of nearly 1.8 billion dollars and ended the quarter with approximately 1.9 billion of cash on hand.

To our shareholders, we delivered over 1.8 billion dollars through dividends and BuyBacks.

Our strong financial performance and ability to return, significant cash to shareholders was in under underpinned by higher volumes.

Including record crude production and high Refinery utilization.

John Whelan: While crude has softened of late, our integrated business model is very resilient, and we generate substantial free cash flow over a range of oil price environments. As such, we will continue executing on our strategy and the plans we provided at our investor day earlier this year. During the quarter, we also announced a restructuring effort that is aligned with our well-established strategy and will further strengthen our leading position and our foundation for future growth. I'll come back to this in more detail shortly. Let me share some highlights from the quarter. At Kearl, the bar has been raised again, with the team delivering 316,000 barrels per day gross, the highest quarterly production in the asset's history. A great step on our path towards reaching annual production of 300,000 barrels per day.

With plant turnaround activity. Now, complete, we're positioned for a strong finish to the year across all of our assets.

While at crude has softened the blade. Our integrated business model is very resilient and we generate substantial free cash flow over a range of oil place, price environments as such we will continue executing on our strategy and the plans we provided at our investor day earlier this year.

During the quarter, we also announced a restructuring effort that is aligned with our well-established strategy.

And will further strengthen our leading position and our foundation for future growth.

I'll come back to this in more detail shortly.

Let me share some highlights from the quarter.

At curl, the bar has been raised again.

With the team delivering 316,000 barrels per day growth.

The highest quarterly production in the asset's history.

A great step on our path towards reaching annual production.

John Whelan: At Cold Lake, Grand Rapids continued to perform well and the new Leming SAGD development finished steaming, and we expect first production shortly. These projects support transformation at Cold Lake, where we continue to expect more than 40% of production by 2030 to come from advantaged technologies. Downstream utilization of 98% was significantly higher quarter-over-quarter, even with the planned turnaround activity at Sarnia beginning in September. That turnaround is now complete and was executed below cost and ahead of schedule. Now I'd like to share more on our restructuring plans. On 29 September, we announced restructuring plans to further advance our well-established strategy of increasing cash flow and delivering unmatched industry-leading shareholder returns.

Of 300,000 barrels per day.

At Cole Lake Grand, Rapids continued to perform. Well

And the new Lemming SAG-D development finished steaming, and we expect first production shortly.

these projects support transformation at Cole Lake, where we continue to expect more than 40% of production, by 2030 to come from advantaged Technologies.

Downstream utilization of 98% with significantly higher quarter over quarter, even with planned, turnaround activity at Sarnia. Beginning in September that turnaround is now complete and was executed at a low cost and ahead of schedule.

Now, I’d like to share more on our restructuring plans.

John Whelan: We plan to further improve our industry-leading performance by centralizing additional corporate and technical activities in global business and technology centers, realizing substantial efficiency and effectiveness benefits from scale, integration, and technology. This restructuring is consistent with our long-standing strategy to maximize the value of our existing assets using technology and leveraging our relationship with ExxonMobil. With data availability and processing capabilities growing at an accelerating pace, the changes are designed to fully leverage global available expertise to maximize the benefits of current technology and accelerate the cost-effective deployment of new technologies to drive value and enhance financial resilience. Our world is evolving quickly. Technology is advancing in leaps and bounds. We see it all around us, and there's been huge growth in global capability centers, and we have to move with it.

On September 29th. We announced restructuring plans to further Advance our well-established strategy of increasing cash flow and delivering. Unmatched industry-leading. Shareholder returns

We planned a further, improve our industry-leading, performance by centralizing, additional corporate, and Technical activities.

In global Business and Technology Centers, realizing substantial efficiency and Effectiveness benefits from scale.

Integration and Technology.

This restructuring is consistent with our long-standing strategy to maximize the value of our existing assets, using technology and leveraging our relationship with Exxon Mobil.

With data availability and processing capabilities growing at an accelerating pace.

The changes are designed to fully leverage Global available, expertise to maximize the benefits of current technology.

And accelerate, the cost of effective deployment of new technologies.

To drive value and enhance Financial resilience.

Our world is evolving quickly.

Technology is advancing in Leaps and Bounds. We see it all around us.

John Whelan: As a company, our legacy is defined by change and adaptation to ever-evolving business environments, technology, and customer needs. That ability to evolve is one of our greatest strengths. We have done it time and time again, and it is key to our success and leading position. These restructuring actions will further enhance our foundation for future growth and position us to continue delivering unmatched industry-leading returns and long-term value for our shareholders. At the same time, we remain fully committed to meet or beat the medium-term growth and expense reduction plans communicated at our investor day in April. Additionally, as a result of the restructuring, we have recorded a one-time restructuring charge and expect to achieve a reduction in annual expenses of CAD 150 million by 2028.

And there's been huge growth in global capability centers and we have to move with it.

As a company, our Legacy is defined by change and adaptation to ever evolving business. Environments, technology and customer needs.

That ability to evolve is 1 of our greatest strengths.

We have done it time and time again.

And it is Key to Our Success and leading positions.

These restructuring actions will further enhance our foundation for future growth and position us to continue delivering unmatched, industry-leading returns and long-term value for our shareholders.

The medium-term growth and expense reduction plans, communicated at our investor day in April.

Additionally, as a result of the restructuring, we have recorded a one-time restructuring charge.

And expect to achieve a reduction in annual expenses of 150 million by 2028.

John Whelan: Larger benefits are expected over the long term, as more fully leveraging the global scale and expertise of ExxonMobil will enable us to further enhance cash flow growth by driving productivity improvements across our operations, including higher production, reduced downtime, lower unit operating costs, as well as project planning and execution excellence. Our relationship with ExxonMobil is an advantage that others don't have and can't replicate. Now, we will manage this transition through a rigorous process. We will be restructuring our corporate workforce, what we call above field, which will result in a reduction in the number of employee roles by the end of 2027. In the second half of 2028, we will further consolidate activities at our operating sites, primarily the Strathcona Refinery in Edmonton, to enhance collaboration, operational focus, and execution excellence.

Larger benefits are expected over the long term.

As more fully leveraging the global scale and expertise of exam mobile will enable us to further enhance cash flow growth.

By driving productivity-approved improvements across our operations, including higher production, reduced downtime, lower unit operating costs, as well as project planning and execution excellence.

Our relationship with Exxon Mobile is an advantage that others don't have.

And can't replicate.

Now, we will manage this transition through a rigorous process.

We will be restructuring our corporate workforce. What do we call this field?

Which will result in a reduction in the number of employee roles by the end of 2027.

Then in the second half of 2028, we will further consolidate activities at our operating sites. Primarily the Strath counter refinery in Edmonton.

To enhance collaboration, operational focus, and execution excellence.

John Whelan: Through this transition, our focus remains on supporting our employees, operating with integrity, putting safety first, and executing our business strategy. Additionally, in view of the restructuring and our reduced office space requirements, we have signed an agreement to sell our Calgary campus, resulting in a non-cash impairment charge. On that note, I'll turn it over to Dan to discuss our financial results in more detail.

Through this transition, our Focus remains on supporting our employees.

Operating with Integrity, putting Safety First, and executing our business strategy.

Additionally, in view of the restructuring and our reduced office space requirements. We have signed an agreement to sell our Calgary campus.

Resulting in a non-cash impairment charge.

Dan Lyons: Thanks, John. We had 2 identified items in Q3 in our corporate segment. First, the restructuring plan that John mentioned, resulted in a charge of CAD 330 million before tax in Q3, with an unfavorable earnings impact of CAD 249 million after tax. This charge largely consists of employee severance costs, which will be paid out over the next 2 years as we migrate activities to business and technology centers and achieve efficiencies. Second, following an extensive marketing effort and after careful consideration of the current status and the anticipated outlook for large properties in the Calgary real estate market, we signed a sales and purchase agreement to sell our Calgary campus, which is expected to close in the coming months.

And on that note I'll turn it over to Dan to discuss our financial results in more detail. Thanks John we had 2 identify items.

In the third quarter and our corporate segment, first, the restructuring plans that John mentioned resulted in a charge of $330 million before tax in the quarter, with an unfavorable earnings impact of $249 million after tax. This charge largely consists of employee severance costs, which will be paid out over the next 2 years as we migrate activities to Business and Technology Centers.

ERS, and Achieve efficiencies.

Second.

Dan Lyons: Consistent with this, we recorded a non-cash impairment charge of $406 million before tax, with an unfavorable earnings impact of $306 million after tax in the quarter. The sales and purchase agreement includes a leaseback arrangement to support Imperial's needs over the next several years. Turning to our underlying Q3 results, we recorded net income of $539 million. Excluding identified items, the ones I just described, net income for the quarter is $1,094 million, down $143 million from Q3 2024, driven by lower upstream realizations, partially offset by higher refining margins. Comparing sequentially, Q3 net income is down $410 million from Q2 2025.

Bowing and extensive marketing effort. And after careful consideration of the current status and the anticipated outlook for large properties in the Calgary real estate market, we signed a sales and purchase agreement to sell our Calgary campus which is expected to close in the coming months. Consistent with this, we recorded a non-cash impairment charge of 406 million before tax with an unfavorable earnings impact of 306 million after tax in the quarter.

The sales and purchase agreement. Includes a lease back arrangement to support imperial's needs over the next several years.

Turning to our underlying third quarter results, we recorded net income of 539 million. However excluding identified items, the ones I just described net income from the quarter is 1 billion, 94 million down 143 million from the third quarter of 2024 driven by lower Upstream realizations. Partially offset by higher refining margins.

Dan Lyons: Again, excluding identified items, net income is up CAD 145 million, primarily due to strong operational performance. Now, shifting our attention to each business line and looking sequentially. Upstream earnings of CAD 728 million are up CAD 64 million from Q2, primarily due to higher volumes and realizations. Downstream earnings of CAD 444 million are up CAD 122 million from Q2, mainly reflecting higher margins and volumes. Our chemical business generated earnings of CAD 21 million consistent with Q2. Moving on to cash flow. In Q3, we generated CAD 1,798 million in cash flows from operating activities.

When comparing sequentially third quarter. Net income is down. 410 million from the second quarter of 2025. But again, excluding identified items. Net income is up, 145 million primarily due to strong, operational performance.

Now, shifting our attention to each business line and looking sequentially Upstream earnings of 728 million are up 64 million from the second quarter, primarily due to higher volumes and realizations.

Downstream earnings of 444 million are up 122 million from the second quarter, mainly reflecting, higher margins and volumes our chemical business generated earnings of 21 million consistent with the second quarter.

Moving on to cash flow.

Dan Lyons: Excluding working capital effects, cash flows from operating activities for Q3 were CAD 1.6 billion, which includes a CAD 149 million unfavorable impact from the previously mentioned restructuring charge. Taking this into account, normalized cash flow was about CAD 1.75 billion in the quarter. As John mentioned, we ended the quarter in a strong position with about CAD 1.9 billion of cash on hand. Now shifting to CapEx. Capital expenditures in Q3 totaled CAD 505 million, CAD 19 million higher than Q3 2024. In the upstream, Q3 spending of CAD 353 million focused on sustaining capital at Kearl, Cold Lake, and Syncrude. In the downstream, Q3 CapEx was primarily spent on sustaining capital projects across our refining network.

Orders were 1,600 million, which includes?

A 149 million unfavorable impact from the previously mentioned restructuring, charge, taking this into account, normalized cash flow was about 1 billion, 750 million in the quarter.

As John mentioned, we ended the quarter in a strong position with about 1.9 billion dollars of cash on hand.

Dan Lyons: Our full-year outlook remains consistent with our previously issued guidance. Shifting to shareholder distributions. In Q3, we continued to demonstrate our long-standing commitment to return surplus cash to our shareholders, paying CAD 366 million in dividends and returning almost CAD 1.5 billion through our accelerated share repurchase program under our Normal Course Issuer Bid. We anticipate completing our NCIB program before year-end. This morning, we announced the Q4 dividend of CAD 0.72 per share, in line with our Q3 dividend. Imperial remains committed to a reliable and growing dividend, as demonstrated by 31 consecutive years of annual dividend growth. I'll turn it back to John to discuss our operational performance.

Now, shifting to capex Capital expenditures in the third quarter total 505 million 19 million higher than the third quarter of 2024 in the Upstream. Third quarter spending of 353 million focus on sustaining Capital, that curl Cold Lake and sink crude. Then the downstream third quarter capex is primarily spent on sustaining capital projects across our refining Network

Our full-year outlook remains consistent with our previously issued guidance.

Shifting to shareholder distributions and the third quarter. We continue to demonstrate our long-standing commitment to return. Surplus cash to our shareholders paying 366 million

In dividends and returning almost $1.5 billion through our accelerated share repurchase program under our normal course issuer bid.

We anticipate completing our ncib program before year end.

John Whelan: Thanks, Dan. I want to take the next few minutes to share the key highlights from our operating results. Upstream production for the quarter averaged 462,000 oil equivalent barrels per day, up 35,000 barrels per day versus Q2, and up 15,000 barrels per day versus Q3 of 2024. This quarter marks a new crude production record for the company. Now I'll cover highlights for each of the assets, starting with Kearl. Kearl set a quarterly production record averaging 316,000 barrels per day, up 41,000 barrels per day versus Q2, and up 21,000 barrels per day versus Q3 of 2024. This marks the highest quarterly production ever for Kearl, surpassing our previous best set in Q4 of 2023.

Finally, this morning, we announced the fourth quarter dividend of 72 cents per share in line with our third quarter. Dividend Imperial remains committed to a reliable and growing dividend as demonstrated by 301 consecutive years of annual dividend growth. Now, I'll turn it back to John to discuss our operational performance.

Thanks, Dan. I want to take the next few minutes to share the key highlights from our operating results.

Upstream production for the quarter averaged 462,000 oil equivalent barrels per day.

up, 35,000 barrels per day versus the second quarter and up 15,000 barrels per day versus the third quarter of 2024

This quarter marks a new crude production record for the company.

Now, we'll cover highlights for each of the assets, starting with colonel.

Carl said a quarterly production record averaging 316,000 barrels per day, up 41,000 barrels per day versus the second quarter and up 21,000 barrels per day versus the third quarter of 2024.

John Whelan: The strong volumes were driven by a combination of high ore quality and our optimization efforts associated with ore selectivity. We're also realizing reliability gains from upsizing and design improvements of the hydrotransport lines. Kearl continued to progress on unit cash costs. That is quickly becoming one of my favorite parts of our story. Unit cash costs at Kearl were $15.13 US per barrel this Q3. A decrease of nearly $4 US per barrel compared to Q2, helped by the absence of our planned turnaround but also improved reliability, recovery, and ore selectivity. When compared to Q3 of last year, we achieved a decrease of over $2 US per barrel. The Q3 strong performance contributed to our year-to-date unit cash cost of $17.89 US per barrel.

This marks the highest quarterly production ever for Colonel, surpassing our previous best set in the fourth quarter of 2023.

The strong volumes were driven by a combination of high or quality, and our optimization efforts associated with Oracle activity. And we're also realizing reliability, gains from upsizing, and design improvements of the hydro transport lines,

Carl continued to progress on unit cash costs, and that is quickly, becoming 1 of my favorite parts of our story.

Unit cash costs at curl or 15 dollars and 13, cents us per barrel. This quarter

A decrease of nearly $4 us per barrel compared to the second quarter helped by the absence of our plant, turnaround, but also improved reliability recovery. And or selectivity

When compared to the third quarter of last year, we achieved a decrease of over 2 dollars US per barrel.

John Whelan: With year-to-date unit cash costs down over $2 US per barrel, we are realizing the benefit of our strategy that is focused on growing volumes with lower unit cash costs. Moving next to Cold Lake. Cold Lake's production averaged 150,000 barrels per day, up 5,000 barrels per day versus Q2 2025, up 3,000 barrels per day versus Q3 2024. I would like to take a moment to draw your attention to unit cash costs at Cold Lake. The current cost in Q3 was $13.38 US per barrel. That is supporting year-to-date costs of $14 US, which is down $1 US per barrel versus the same period last year.

The third quarter, strong performance contributed to our year-to-date unit cash. Cost of $17.89 US per barrel.

With year-to-date unit cash cost down over, $2 us per barrel. We are realizing the benefit of our strategy that is focused on growing volumes with lower unit, cash costs.

Moving next to Cole Lake.

Kool Lakes production averaged 150,000 barrels per day, up 5,000 barrels per day versus the second quarter of 2025 and up 3,000 barrels per day versus the third quarter of 2024.

I would like to take a moment to draw your attention to unit cash costs at Cole Lake.

The current cost in the third quarter was 13.38, cents us per barrel.

John Whelan: While we have certainly benefited from low gas prices, we continue to make progress on structural cost reduction initiatives and our strategy to transform Cold Lake to a high proportion of technology-advantaged production. Consistent with that, our Leming SAGD project remains on track. Having recently completed steam circulation, we expect to see first oil in the coming weeks, with production ramping up over the next year. Looking to the future, we have an abundance of high-quality in-situ opportunities in our portfolio. At Aspen, we continue to progress the EBRT pilot with startup remaining on track for early 2027. In addition, our Clark Creek and Corner assets provide us with further long-term growth opportunities. These three assets have the potential to support up to 150,000 barrels per day each of advantage production during their estimated 25 to 50-year operating life.

And that is supporting year-to-date costs of 14 dollars US which is down. 1 dollar US per barrel versus the same period last year.

And our strategy to transform co-league to a high proportion of Technology advantaged production.

Consistent with that are lemming. Sagd project remains on track.

Having recently completed steam circulation, we expect to see first oil in the coming weeks, with production ramping up over the next year.

And looking to the future, we have an abundance of high quality in situ opportunities in our portfolio. At Aspen, we continue to program, the Ebert pilot with startup remaining on track for early 2027.

John Whelan: To round out the upstream, I'll cover Syncrude. Imperial share of Syncrude production for the quarter averaged 78,000 barrels per day, which was up 1,000 barrels per day versus Q2 and down 3,000 barrels per day versus Q3 2024. In early September, Syncrude began its planned 50-day coker turnaround and was able to complete it ahead of schedule and under budget, with work wrapping up at the beginning of last week. Syncrude also continued to utilize the Interconnect Pipeline to import bitumen and gas oil to ensure high upgrader utilization. This enabled an additional 6,000 barrels per day, our share, of Syncrude Sweet Premium production. Now moving to the downstream. We delivered strong operational results while progressing our planned turnaround at Sarnia.

In addition our Clark Creek and Corner assets. Provide us with further long-term growth opportunities, these 3 assets have the potential to support up to 150,000 barrels per day. Each of Advantage production during their estimated 25 to 50 year operating life.

And around round out the Upstream on a cover, sync, group Imperial, Sheriff syncrew production for the quarter, average 78,000 barrels per day.

which was up a thousand barrels per day versus the second quarter and down 3,000 barrels per day versus the third quarter of 2024

In early September sin crew began, its plan 50-day Coker turnaround and was able to complete it ahead of schedule and under budget with work wrapping up at the beginning of last week.

In crude also continued to utilize the interconnect pipeline to import bumin and gas oil to ensure High upgrader utilization and this enabled an additional 6,000 barrels per day. Our share of sink fruit, sweet premium production,

Now, moving to the downstream.

John Whelan: Refinery throughput averaged 425,000 barrels per day, equating to a refinery utilization of 98%. This exceeded last year's Q3 throughput by 36,000 barrels per day. It's exceeded the Q2 2025 throughput by 49,000 barrels per day, primarily driven by lower turnaround impacts and strong reliability at all sites. As we mentioned in the Q2 earnings call, we started up the Strathcona Renewable Diesel facility and are already realizing benefits of backing out more expensive imported products and replacing them with our own low cost of supply. We continue to optimize production based on hydrogen availability. Earlier this week, we successfully completed our turnaround at Sarnia ahead of schedule and below budget. With our turnaround activity complete for the year, we are expecting a strong Q4.

We delivered strong operational results while progressing. Our planned turnaround at Sarnia.

Refinery throughput averaged 425,000 barrels per day.

Equating to a Refinery utilization of 98%.

This exceeded last year's third quarter throughput by 36,000 barrels per day. And it's exceeded the second quarter, 2025 throughput by 49,000, barrels per day, primarily driven by lower turnaround, impacts and strong, reliability at all Sites.

As we mentioned in the second quarter earnings call, we started up the Strathcona, renewable diesel facility and are already realizing benefits of backing out, more expensive, imported products and replacing them with our own low-cost of supply.

We continue to optimize production based on hydrogen availability.

Earlier this week, we successfully completed our turnaround at Sarnia ahead of schedule and below budget.

With our turnaround activity. Complete for the year, we are expecting a strong for

John Whelan: Petroleum product sales in the quarter were 464,000 barrels per day, which is down 16,000 barrels per day versus Q2 2025, driven by lower export volumes, partially offset by higher jet and asphalt sales. Overall, we continue to see robust demand in Canada with gas and diesel comparable to Q3 2024 levels and jet showing stronger demand. Turning now to chemicals. Earnings in Q3 were CAD 21 million, consistent with Q2. Compared to Q3 2024, earnings were down CAD 7 million, driven by weaker polyethylene margins. While challenging market conditions persist, our integration with the Sarnia refinery continues to add value and provides resilience in low price environments.

Patrol, petroleum product sales in the quarter were 464,000 barrels per day which is down. 16,000 barrels per day versus the second quarter of 2025 driven by lower export volumes, partially offset by higher Jet and asphalt sales.

Overall, we continue to see robust demand in Canada with gas and Diesel comparable to the third quarter of 2024 levels and Jet showing stronger than that.

Turning out to chemicals earnings in the third quarter or 21 million consistent with the second quarter compared to the third quarter of 2024 earnings were down 7 million driven by weaker polyethylene margins.

While challenging market conditions. Persist, our integration with the Sarnia, Refinery continues to add value, and provides resilience to low price. To the largest

John Whelan: To wrap up, I'm very pleased with the strong operational and financial performance in the quarter, highlighted by the record quarterly liquids production in our upstream, best ever quarterly production at Kearl, and strong refinery utilization of 98% in our downstream. With our planned turnaround activity complete, we're focused on a strong finish and remain confident in our guidance. We continue to return surplus cash to our shareholders in a timely manner and still expect to complete the accelerated Normal Course Issuer Bid by the end of the year. As mentioned earlier, our restructuring plan advances our long-standing strategy of maximizing the value of our existing assets. The plan positions Imperial to continue delivering industry-leading shareholder returns over a range of market conditions. We are transforming from a position of strength, leveraging the rapidly advancing technology environment, the growth in global capability centers, and our relationship with ExxonMobil.

So, to wrap up.

I'm very pleased with the strong operational and financial performance in the quarter.

Highlighted by the record quarterly liquids production in our Upstream.

Best ever quarterly production at Curl?

And strong Refinery utilization of 90 98.

With our planned turnaround activity complete, we're focused on a strong finish and remain confident in our guidance.

We continue to return surplus cash to our shareholders in a timely manner and still expect to complete the accelerated normal course issue by the end of the year.

As mentioned earlier, our restructuring plan advances, our long-standing strategy of maximizing, the value of our existing assets,

Delivering industry-leading shareholder returns over a range of market conditions.

We are transforming from a position of strength.

Leveraging, the rapidly advancing technology environment.

John Whelan: I've described what is changing as part of our restructuring. It is equally important to highlight what is not. Our governance and leadership structure is not changing. What we are doing is fully aligned with our strategy. Our strategy is not changing, and our growth plans are not changing. We remain a proud Canadian company, an industry-leading, technology-focused energy company contributing significantly to the country and our shareholders. Throughout this transition, we remain committed to supporting our employees, the communities where we operate, and responsibly producing the energy and pro-products Canadians rely on. In closing, let me say the combination of our financial position, strong operating results, and our strategic initiatives to further strengthen our efficiency and effectiveness give me confidence in the future of Imperial and our ability to further enhance our industry-leading position.

The growth in global capability centers and our relationships with Exxon Mobil.

I've described what is changing as part of our restructuring.

It is equally important to highlight what is not.

Our governance and leadership structure is not changing.

What we are doing is fully aligned with our strategy, our strategy is not changing.

And our growth plans are not changing.

We remain a proud Canadian company.

And industry-leading.

Technology focused Energy company contributing significantly to the country and our shareholders.

And throughout this transition, we remain committed to supporting our employees.

The communities where we operate.

And responsibly producing the energy and pro products Canadians rely on.

In closing, let me say the combination of our financial position.

Strong operating results.

And our strategic initiatives, to further strengthen our efficiency and effectiveness.

Give me confidence in the future of Imperial.

And our ability to further enhance our industry-leading position.

John Whelan: I am very pleased with the strong results our team has delivered, and I want to thank them. As always, I'd like to thank you once again for your continued interest and support. Looking ahead, we are planning to issue our annual guidance for 2026 in mid-December. With that, I will now move to our Q&A session and pass the floor back to Ethan.

I am very pleased with the strong results. Our team has delivered and I want to thank them.

And I as always, I'd like to thank you once again for your continued interest and support.

Looking ahead, we are planning to issue our annual guidance for 2026 and mid December.

and with that,

Peter Shaw: Thank you, John. 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. With that, operator, could you please open up the line for questions?

We will. Now I will now move to our Q&A session and pass the floor back to people.

Operator: Thank you. If you would like to signal with questions, please press star one on your touch-tone telephone. 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 one if you would like to signal with questions. The first question will come from Manav Gupta with UBS.

Thank you, John. 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. So with that, operator, could 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. If you're joining us today, using a speaker-phone, please make sure you 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,

Manav Gupta: Good morning, guys. Kearl keeps setting new milestones. I mean, production volume was significantly better than our expectations, and I don't think I've seen a $15 op cost out there. Help us understand what's driving these improvements and how is this asset positioning Imperial extremely well for times to come ahead.

And the first question will come from Manav Gupta with UBS.

Uh, good morning guys. Go keep setting new Milestones. I mean, production volume was significantly better than our expectations and I don't think I've seen a 15 dollar op cost out there. So help us understand what's driving these improvements and how is this asset positioning Imperial extremely well for times to come ahead.

John Whelan: Thank you, Manav. I mean, make a few comments and I'll, Cheryl can chime in as well. Thank you for that comment. You know, Kearl, the unit cost performance there, the reliability, the performance of the asset has certainly become one of my favorite parts of the story. It is very key to our success and our future for sure. You know, as we look at where we are right now, I think we're really well positioned to meet the midpoint of our annual guidance. The team continues to set new records. We had a best ever Q2. Now we've had the best ever quarter in the Q3.

John Whelan: But it is important to note there's variability quarter-over-quarter, you know, we need to keep that in mind as we go forward as well. This quarter, we had very strong volumes with our high ore quality, our optimization efforts, and as well as reliability gains. You know, honestly, I couldn't be prouder of this team and have be more optimistic about this asset and the importance of it to our business. We're on track to, you know, deliver on our commitments and around, you know, a future of 300,000 barrels a day for this asset and a unit cost target is of CAD 18 a barrel in 2027. Cheryl can comment a bit more, thank you for the comments.

Thank you manov, and I mean, make a few comments and I'll share all can chime in as well. Thank you for that comment. And as I said, you know, curls the unit cost performance their reliability. The performance of the asset has certain become 1 of my favorite parts of the story. Um, it is very key to our, our success and, and our future, for sure. And you know, as we look at where we are right now, I think we're really well positioned to meet, uh, the midpoint of our annual Guidance, the team continues to set new records. We had a best second quarter, uh, best ever second quarter. Now, we've had the best ever quarter in the third quarter, uh, but, but it is important to note. There's variability quarter to quarter and, you know, we need to keep that in mind as we go forward as well. But this quarter, we had very strong volumes with our higher quality, our optimization efforts and as well as reliability gains, you know, honestly, I couldn't be more. I couldn't be prouder of this team and have, uh, be more optimistic about this asset and the importance of it to our business.

John Whelan: This is a very important part of our business for sure, and we're very pleased with the performance of this asset.

Cheryl Gomez-Smith: Thanks, John. A little bit more in terms of what's made the difference. I'm gonna go back to some of the messages that I shared when we had Investor Day. Kearl continues to have a relentless focus on optimizing scope and collaborating lessons learned, and this is including implementing creative ideas. We continue to integrate lessons learned and technology, drive better decisions via data and analytics, as well as leverage our global learnings and benchmarking. In short, we're maintaining this continuous improvement mindset. The work and the success that we've had to date gives me confidence to continue to outperform while maintaining our facility integrity as well as our strong risk management.

We are on track to um you know deliver on our commitments and around you know a future of 300,000 barrels. A day for this asset and a unit cost Target is of $18. A barrel in 2027. Um Cheryl can comment a bit more but uh thank you for the comments. This is very important part of our business, for sure, and we're very pleased with the performance of this asset.

Thanks John.

The work and the success that we've had to date give me confidence to continue to outperform while maintaining our facility integrity, as well as our strong risk management.

Manav Gupta: Thank you. My quick follow-up is on the refining macro. Looks like the diesel markets are very tight and whatever channel checks you are doing is indicating that the Russian refineries have taken a significant hit and it'll take a long time for those markets to normalize. I wanted to understand in the next three to six months, how do you see the refining market out there? Do you think the strength in diesel cracks can continue? If that's the case, your Q4 numbers in the refining side have definite upside from where we are. If you could comment on that.

Thank you. My quick follow-up is on the refining. Macro, uh, looks like the diesel markets are very tight, and whatever channel checks we are doing are indicating that the Russian refineries have taken a significant hit. It will take a long time for those markets to normalize. So, I wanted to understand, in the next 3 to 6 months, how do you see the refining market out there? Do you think the strength in diesel cracks can continue? Because if that's the case, your fourth-quarter numbers in the refining side have definite upside from where we are. So, if you could comment on that.

Scott Maloney: Sure. I'll jump in and take that. Yeah, we have certainly seen the same things right out the door right now with the global supply-demand balances and then the sanctions out there propping up diesel margins. You know, as long as those sanctions continue and the disruptions occur in the global market, we think that that's a possible outcome for us. The way we manage our business is making the products that we see margins out the door on. With all of our maintenance work behind us this year, we see high utilization numbers for the balance of the Q4. Combined with the margins that we're seeing, especially in the diesel channel, we're seeing, we're looking forward to a positive Q4.

John Whelan: Thank you.

Sure, I'll, I'll jump in and take that. Um, yeah, we, we have certainly seen the same things right out the door right now with the, the global Supply demand balances. And then the sanctions out there, uh, propping up, um, diesel margins. And so, you know, we as long as those um sanctions continue and the, and the disruptions occur in the global market. We think that that's, that's a possible, um, outcome for us. Uh, the way we manage our business is is making the products that, uh, we see margins out the door on and with all of our maintenance work, uh, behind us this year. We see, um, High utilization numbers for the balance of the fourth quarter and, uh, combined with the mark, the margins that we're seeing. In the diesel Channel, we're we're seeing, uh, we're looking forward to a positive fourth quarter.

Thank you.

Operator: We'll take a question from Greg Pardy with RBC Capital Markets.

Greg Pardy: Yeah, thanks. Good morning. Thanks for the, thanks for the rundown, John and Dan. I wanted to come back to the restructuring just to better understand how the transition is going to work. You've done the sale leaseback on the building, which means that the staff that, you know, will be retained presumably is going to be at Quarry Park. Sounds like you'll be at Quarry Park. I'm just trying to understand that if the transition is gonna occur over essentially 26 and 27, have the folks that no longer have a role, are they still in the building, or has that transition kind of moved? I'm just trying to better understand how the dynamics are gonna shake out.

And we'll take a question from Greg Party with RBC Capital Markets.

Yeah. Thanks. Good morning. Thanks for the uh, thanks for the rundown. Uh, John and Dan. I want to come back to the restructuring, just to, to better understand how the transition is is going to work. So you've done a sale lease back on the building which means that the staff that, you know will be retained. Presumably is going to be a Corey Park. Sounds like you'll be a Corey Park and then I'm just trying to understand that if the transition is going to curl over essentially 26 and 27, have the folks that no longer have a role. Are they still in the building or has that transition kind of moved? I'm just trying to better understand how the, how the Dynamics are going to shake out.

John Whelan: Well, thanks, Greg. Let me cover that. You know, if we step back from this, what we're doing, I would say, and I'll get to the specifics of your question. You know, we have been assessing this opportunity over a couple of years, and it really builds on the transformation journey that we've been on for more than a decade, frankly, of, you know, gradually outsourcing work to global capability centers and leveraging technology to improve efficiency. In the past, you know, you've seen that over the last decade in terms of our organization size. We are doing just as much or more in terms of what we're operating, what we're executing, with less people doing it in a more efficient manner.

Well thanks Greg. Let me let me uh let me cover that, you know this if you step back from this, what we're doing, I would say and I I'll get to the specifics of your question, you know? This is we have been assessing this opportunity over a couple of years and it really Builds on the transformation Journey that we've been on for more than a decade. Frankly of, you know, gradually Outsourcing work. Global capability centers and leveraging Technology to improve efficiency in the past. We, you know, you've seen that over the last decade in terms of our organization size, we are doing just as much or more in terms of what we're operating.

John Whelan: In the past, we did this on an opportunity by opportunity basis or organization by organization. Now we've looked at this from a company-wide perspective, and as we've kinda crawled and walked, we see the opportunity to run as we move forward. I share that just to highlight there's been a tremendous amount of planning put into this, and we have a detailed plan for how we will execute this over the next 2 years. You're right, this transition will occur over a 2-year period in terms of the workforce transformation piece of it. The consolidation of operating sites will happen after that in 2028. In overall, in a 3-year period. We have detailed plans in place for the outsourcing of this, of work to global capability centers.

John Whelan: Another important part to consider is part of this efficiency gain is outsourcing work, but there's also about 40% of the reduction is pure efficiency gain. There will be, you know, will be less people required to do the work as we capture the scale that we can get in these global capability centers. We have a 2-year transition for how we'll capture those efficiencies and outsource the work to these global capability centers. Our organization, we are right. The office, while we are, we have entered into a sale and purchase agreement on the office, that includes a leaseback for us where we will stay in Quarry Park through 2026 and 2027 and the first part of 2028 until we move, you know, most of the staff to our consolidate the met operating sites at that time.

Rating what we're executing, but with, with less people, doing it in a more efficient manner. So, in the past, we did this opportunity by opportunity, based on an opportunity by opportunity basis, or organization by organization. Um, now we've looked at this from a companywide perspective, and as we've kind of crawled and walked, we see the opportunity to run as we move forward. And I share that just just to highlight. There's been a tremendous amount of planning, uh, put into this and we have a detailed plan for how that we will execute this over the next 2 years. So, in terms of you're right, this transition will occur over a 2-year period in terms of the workforce transformation piece of it. And then the the, uh, consolidation is operating sites will happen after that, in 2028. So an overall, a 3 year period, we have detailed plans in place for the Outsourcing of this of work to Global capability centers. Uh but another important part to consider is

Part of this, um, efficiency gain is outsourcing work, but there's also about 40% of the reduction is pure efficiency gains. There will be, you know, we will be less people required to do the work as we capture the scale that we can get in these Global capability centers.

John Whelan: Nobody will have to move. You will see a transitioning, a reduction in our workforce over that 2-year period, 2026 and 2027. The end of 2027, we will get to, you know, the outcome, the desired outcome that we have communicated. In 2028, we will move people after we've achieved that reduction. Don, I hope that answers your question.

In our Workforce over that 2 year period. 26 and 27, the end of 27, we will get to you know, the uh the outcome, the desired outcome that we have communicated and then in 28 we will move people after we've achieved that reduction

Greg Pardy: Oh my goodness. Yeah, no, I mean, John, you're always well prepared. No, no, that's incredibly thorough. Maybe just to come back to what Sheryl was talking about with respect to Kearl. You know, CAD, a little over CAD 20 is looking very, very good. I'm wondering if you could just maybe break it down between kinda volume versus input costs versus this perhaps the elimination of absolute costs or structural costs that have now been taken out of Kearl as a consequence of, you know, fewer people, digitalization and so forth. We had very weak natural gas prices in Q3, but not sure that that's really a factor at all in terms of the performance you put out.

I hope that answers your question but oh my goodness. Yeah, no. I mean, John you're always well prepared. No, no that I that's incredibly thorough I maybe just to come back. Um to what Cheryl was talking about with respect to curl? So on in, you know, sea dollars a little over 20 bucks is is looking very, very good. I'm I'm wondering if you could just maybe break it down between

kind of volume versus input costs versus this. Perhaps the elimination of absolute costs, or structural costs that have now been taken out of curl as a consequence of, you know, fewer people digitalization and so forth. Because obviously we had very weak natural gas prices uh in the third quarter. But not sure that that's really a factor at all in terms of performance, you put up

John Whelan: I mean, I'll start, and then I will hand over to Cheryl, Greg. Thanks for the question. I mean, it is, and it is a really good point you make. It is a combination of both. We are working both the denominator and the numerator in that. We have been reducing our absolute costs, our you know, what we call capturing structural efficiencies. Not just reducing in the short term, not pushing things out, but actually structurally reducing our costs that we can reduce and will remain reduced. We do that with a very laser-like focus on maintaining integrity, safety, and all of those things that are most important to us.

I mean, I will I'll start and then I will hand over to Cheryl Greg um

John Whelan: You know, you've heard me talk about in the past being the most responsible operator. That involves, you know, safety performance, your integrity, your reliability, but also your cost structure. We do those things in concert, ensuring that we maintain integrity, reliability, and safety, but also reducing our structural costs. There has been CAD millions and millions of dollars in structural savings identified, but obviously you have seen the barrels go up as well. It is the combination of both. The team continues to work on both parts of that equation, which is really important, you know, given the magnitude of the improvements we've seen and what we wanna continue to do as we go forward. I'll pass over to Cheryl to elaborate a little more.

Thanks for the question. I mean it is and it is a really good point. You make it is a combination of both. We are working both the denominator and the numerator in that. So we have been reducing or absolute costs are, you know what? We call capturing structural efficiency. So not just reducing in the short term, not pushing things out, but actually structurally reducing our cost costs that we can reduce and we'll remain reduced and we do that with a very laser-like focus on maintaining Integrity safety and all of those things that are most important to us. You know, you've heard me talk about in the past being the most responsible operator and that involves, you know, safety performance, your integrity your reliability but also your cost structure. So we do those things in concert ensuring that we maintain Integrity reliability and safety but also uh, reducing our structural costs. So there has been millions and millions of dollars.

Cheryl Gomez-Smith: Sure. Thanks, John. Greg, what I would say is this is a very good example of the and equation, as John mentioned. In this space where we're looking at unit cash costs, we're leveraging scale, looking at structural cost savings as well as incremental production. You know, when I think about incremental production, it leverages the relatively high fixed cost structure at Kearl. This is a powerful lever in terms of lowering our unit cash costs. As John mentioned, we continue to focus on reliability, maintenance, optimization, deployment of digital solutions to improve our productivity and lower absolute costs. Several of the things we highlighted at our investment day, in terms of automation, robotics, remote activities. It's a yes, and in terms of how we get there.

In structural savings identified but obviously you you have seen the barrels go up as well. Um, and so it is the combination of both uh and and the team continues to work on both parts of that equation, which is really important. You know, given the magnitude of the improvements we've seen and what we want to continue to do as we go forward. I'll I'll pass over to Cheryl to elaborate a little more sure. Thanks, John. And and and Greg, what I would say is this is a uh, a very good example of the and equation as John mentioned. So,

In this space where we're looking at unit cash costs, we're leveraging scale, looking at structural cost savings as well as incremental production. You know what I think about incremental production; it leverages the relatively high fixed cost structure at Curl. So this is a powerful lever in terms of lowering our unit cash costs. And as Sean mentioned, we continue to focus on reliability, maintenance optimization, and deployment of digital solutions to improve our productivity and lower absolute costs. Several of those things we highlighted at our Investment Day, in terms of automation, robotics, and remote activities. So it's a yes, and.

John Whelan: Understood. Thanks very much. Thank you, Greg.

Greg Pardy: Understood. Thanks very much.

In terms of of how we get there.

John Whelan: Thank you, Greg.

I understood. Thanks very much.

Operator: We'll take a question from Dennis Fong with CIBC.

Greg. And

and we'll take a question from Dennis Fong with CIBC

Dennis Fong: Hi, good morning. Thanks for taking my question. My first one is just related to your in-situ pipeline, Aspen, Clark Creek, and Corner. Thank you for the kind of the rundown. Obviously, EBRT is a focal point in terms of the go-forward strategy. Is just kind of solidifying and understanding the development potential and the result from the pilot, the primary driver for kind of moving on to the next steps? Maybe what else would you like to see beyond kind of further proof out of the technology for you to feel comfortable moving forward with Aspen, I guess, first or any of these three in-situ projects?

Hi, good morning and thanks for taking my question. Um, my my first 1 is just related to your uh Institute pipeline Aspen Clark Creek and Corner. Um, thank you for the kind of the rundown. Um, obviously Ebert is a focal point. In terms of the go forth, strategy is just kind of solidifying and and understanding the development potential and uh, the result for the pilot the, the primary driver for, um, kind of moving on to the next steps. And, and maybe what else would you like to see beyond kind of, further prove out of the technology for you to feel for feel comfortable, moving forward with um,

um, as and I guess first or any of these 3 Institute projects

John Whelan: Thank you. Thank you, Dennis, for the question. I'll start again, and I may ask Cheryl to chime in as well. I think if we look at this future in-situ portfolio, we remain very bullish about it. The resource base is significant and of high quality, and we believe we have the technology in EBRT to unlock that resource base at lower unit cost, lower emissions than even the technology we're using today. We have decided to do the pilot. We feel quite confident in the technology. We've done a lot of, you know, lab testing on it. Given the scale at which we want to deploy it, we felt it was valuable to do the pilot.

John Whelan: The main things we're going to be looking for in the pilot is the solvent recovery and the production uplift that come from those. That's the main thing, and that we'll start up the pilot in 2027. That's from a technology perspective. We're going in pretty positive about it, but it's important to prove that up, I think, through a real life, you know, pilot in the field. We feel very good about the resource. We will continue to do some delineation work around that, but we've done a lot already, and we feel very comfortable in that space. I think the other part is just the overall investment, you know, environment.

On it, but given the scale at which we want to deploy it, we felt it was valuable to do the pilot. The main things we're going to be looking for in the pilot are the solvent recovery and the production uplift that come from those. So that's the main thing, and that will start up the pilot in 2027. Um, so that's from a technology perspective. But we're going in pretty positive about it. However, it's important to prove that up, I think through a real-life, um, you know, pilot in the field.

The uh we feel very good about the resource. We will continue to do some delineation work around that, but we we've done a lot already and we feel very comfortable in that space.

John Whelan: You've heard us and industry talk about that, the importance, and we've been on record with that at the government, and we're working closely with the government around that, simplifying regulations, shortening project approval timelines and those type of things. You know, that's important as we consider future investment and growth in production. Then the other aspect is egress, and we feel very good about that, particularly for Aspen. As we look out the next decade and we listen to what the pipeline companies are talking about in terms of de-bottlenecking projects with Trans Mountain and Enbridge's announced, you know, projects that they've been talking about, we feel very good that there's egress going to be available for the next decade or so. We're doing some work on the technology.

John Whelan: There's an investment climate, you know, piece that we continue to involve work with the government on. We think there's egress. Overall, we're very bullish about the opportunities.

And uh, I think the other part is just the overall investment, you know, environment, you've heard us in Industry, talk about that the importance and and we've been been on record with that at the government and we're working closely with the government around that simplifying regulation, shortening project, approval timelines, and those type of things. You know, that that's important as, as we consider future investment and growth in production. Um, and then the other aspect is egress and we feel very good about that particularly for Aspen. Um, as we look out the next decade and we listen to what the pipeline companies are talking about, in terms of default linking projects with Trans Mountain Umbridge. Umbridge, is announced, you know, projects that they've been talking about. We feel very good that there's egress, uh, going to be available for the next decade or so. So we're doing

Cheryl Gomez-Smith: I'll just add a couple other comments, Dennis. We've drilled the 3 wells, and as John mentioned, we're on target for an early 2027 startup. We're gonna run the pilot to validate production uplift. You heard John mention the solvent recovery as well as overall operability. The other thing I'd highlight is the pilot is intended to de-risk this technology, and it's a very similar approach to what we took for SA-SAGD. I think we're well on track there. I'd echo the comments that John made, which is we're looking forward to EBRT technology. This is what we're looking for in terms of being a game changer for our in-situ developments going forward.

Some work on the technology, there's an investment climate uh you know piece that we continue to involve work with the government on, we think there's egress. So overall we're very bullish about about the opportunities.

Tell us that a couple other comments. Dennis uh We've drilled the 3 Wells and as John mentioned, we're on target for an early 2027 startup. Uh, we're going to run the pilot to validate production of uplift here. John mentioned, solvent recovery as well as overall operability. The other thing I I highlight is the pilot is intended to de-risk this technology and it's a very similar approach to what we took for Sasaki.

So I think we're well on track there, and uh I'd echo which uh, the comments that John made, which is where we're we're, we're very, we're looking forward to Ebert technology. This is, uh, what we're looking for, in terms of being a game changer for our Institute developments going forward.

Dennis Fong: Great. Great. Really appreciate that context from both of you. I wanna shift focus back maybe towards Cold Lake. Obviously, you have the Leming SAGD project with the targeted startup here. I just wanted to think a little bit more, how should we be thinking about the Mahican SA-SAGD project, as well as if you wouldn't mind highlighting any of the future SA-SAGD project opportunities that exist within that field and maybe what that potentially looks like, both from an op cost perspective as well as a production perspective and level, and if there's any further updates from what you guys highlighted at the Investor Day. Thanks.

Great great. Really appreciate that. That contacts from both of you. Um, I I want to shift Focus uh, back maybe towards cold like um, obviously you have the lemming site project with the the targeted, uh, startup here. And, um, I just wanted to think a little bit more. How should we be thinking about the make you can uh, essay sagd, uh, project? Um, as well as, uh, if you wouldn't mind highlighting, any of the future, essay ID project opportunities that exist within that field and maybe what that potentially looks like both from a, an up cost perspective as well as a

A production, uh, perspective, and and level. And if there's any further updates from uh what you guys highlighted at the investor day. Thanks.

John Whelan: I'll make a few broader comments, Dennis, and then Cheryl can, you know, come in again as well. You know, our plan that we laid out for 165,000 barrels per day at Cold Lake in the next few years, we still feel very good about that plan. We're committed to that plan. There's a number of things that contribute to that. You know, there's low cost base optimization projects such as our LASER technology. There's infill drilling using the unique compact rig that we have there to do infill drilling. That's a part of it. We're applying Warm Flow in a number of areas. We've got the Leming SAGD project that I just spoke about. Grand Rapids is going extremely well as well.

John Whelan: It's all of these building blocks and components that contribute to our confidence of getting to 165,000 barrels per day. The Mahican SA-SAGD, I'll let Cheryl come back and talk more about that. That's obviously very important. That's a 2029 start up with a peak production of about 30,000 barrels a day. It's all of these building blocks that contribute to it and also, you know, the transition, the transformation really that we're making at Cold Lake, moving to these advantage technologies and seeing ourselves continue to see in 2030 with about 40% of our production coming from that advantage technology. I'll let Cheryl say a bit more specifically on Mahican and so on.

I'll make a few broader comments. Dennis. And then Cheryl can, you know, come in again as well? Um you know, our plan that we laid out for 165,000 barrels per day at at Cole Lake in the next few years, we still feel very good about that plan. We're committed to that plan. Um, and there's a number of things that contribute to that. You know, there's low cost based upon optimization projects such as our Laser Technology. There's infill drilling using the unique compact rig that we have there to do infill drilling. That's a part of it. Uh, we're applying warm flow in a number of areas. We've got the lemming sag d project that I just spoke about. Uh, Grant Rapids is going extremely well, as well. So it's all of these building blocks and components that contribute to our confidence of getting to 165,000 barrels today. Barrels per day, now the Mah sagd, I'll let Cheryl come back and talk more about that that's obviously very important but that's a 2029 startup with

A peak production about 30,000 barrels a day. But it's it's all of these building blocks that contribute to it. And also, you know, the transition, the transformation really that we're making at Cole Lake, moving to these Advantage Technologies and seeing ourselves continue to see in 2030 at about 40% of our production, coming from that

Cheryl Gomez-Smith: Sure. Maybe I'll cycle back with Grand Rapids. You know, we're very pleased, Dennis, with our results from Grand Rapids thus far. Specific to that effort, the next three pads are currently in development. This will fully leverage our plant capacity and offer inventory to sustain production at low capital. Now, switching to Mahican, this will be our first commercial Clearwater SA-SAGD development. John mentioned a 2029 start up, and one of the things that's an enabler, and projects take time in the development, is we have to convert the Mahican plant, which is currently a cyclic steam facility, to a solvent-enabled SA-SAGD plant. All that in mind, we're on track to deliver, I'd say more than about 50,000 barrels per day from SA-SAGD advantage production by the 2030 timeframe.

Advantage Technology, and I'll let Cheryl say a bit more specifically on the Hein and so on. Sure, maybe I'll cycle back with Grand Rapids.

Very pleased.

With our results from Grand Rapids.

Our first commercial Clearwater, SOG development, John mentioned, a 2029 startup and 1 of the things that's an enabler and projects take time. And the development is we have to convert the meccan plant which is currently a cyclic steam uh facility to solve it enabled as a fagd plant, all that in mind we're on track to deliver. I'd say more than about 50,000 barrels per day. From essay sagd Advantage production by the 2030 time frame.

Cheryl Gomez-Smith: The other thing maybe I'll leave with is we do have a pipeline of future SA-SAGD projects, you know, as I look at 2040, 2050. We'll take those in due course.

The other thing maybe I'll leave with is we do have a pipeline of future essay SAGD projects. You know as I look at 2402050, we'll take those and do course.

Dennis Fong: Great. Thank you very much, Cheryl and John. Really appreciate that color on both of those items.

John Whelan: Thank you, Dennis.

Great. Thank you very much Cheryl and and John really appreciate that that color on on both of those items.

Operator: We have a question from Doug Leggate with Wolfe Research.

Thank you, Dennis.

And we have a question from Doug leot, with Wolfe research.

Doug Leggate: Thanks. Good morning, everyone. Thanks for having me on. John, I wonder if I could ask a really simple follow-up on Kearl. given, you know, the sustained efficiency improvements you've seen, the consistent production and, you know, performance, what would you say today is the production capacity trajectory for Kearl in terms of where it is now and where you think you can get to? That's my first one. My follow-up is a quick one. It's probably for Dan. It's always for Dan. Same question every quarter. You leaned on your balance sheet a little bit this quarter, and you've accelerated the timeline for your buyback. Is there any intention in the current environment for an SIB before the middle of next year?

Uh, thanks. Good morning everyone. Thanks for having me on. Um John I I I wonder if I could ask a really simple. Follow-up on Carroll.

Uh, get given, you know, the, the sustained efficiency improvements you've seen the consistent production in, you know, performance, what would you say today is the, um, production capacity trajectory, for Carol terms of where it is now and where you think you can get to it? That that's my first 1 my, my follow-up is a quick 1. Um, is probably for Don is all

For time, same question every quarter. You leaned on your balance sheet a little bit this quarter, and you've accelerated the timeline for your buyback. Is there any intention in the current environment for an SIB before the middle of next year?

John Whelan: Thanks, Doug. Yeah, let me take the Kearl one. You know, again, I couldn't be more proud of this team and the improvements that have been made at Kearl over a number of years. I remain confident that we'll continue to make improvements at Kearl in terms of unit cost, you know, reductions and volumes uplift. I think our story is very consistent, though, with right now, the way we think about it is very consistent with our investor day. We believe we have a strong foundation that supports potential for 300+ thousand barrels per day. You know, we talked about at that time the number of days that we're seeing of a greater than 300 thousand barrel a day days.

John Whelan: You see the quarter that we just had in the quarter, that also builds that confidence. Right now, our focus is really, how do we move it to 300,000 barrels a day. I would just say the confidence in that is growing all the time. you know, we talked about that in the investor day. We have a pretty clear path to get the asset to 300,000 barrels a day with bitumen recovery projects, continued focus on individual equipment performance, extending our turnaround intervals and the reduction duration. Feel very good about that. We're not done at 300. We're very much focused on, you know, what's the potential beyond that. We believe there is potential beyond that.

Thanks Doug, yeah, let, let me take the curl 1. You know. Again I I couldn't be um, more proud of this team and and and the improvements that have been made at curl over a number of years. And I I remain confident that we'll continue to make improvements and that curl in terms of unit cost, you know, reductions and volumes uplift. I think our story is very consistent though with right now, the way we think about it is very consistent with our investor day. We believe we have a strong Foundation that supports potential for 300 plus thousand barrels per day. Um, you know, we talked about at that time, the number of days that we're seeing of a greater than 300,000 Barrel a day days. You see the quarter that we just had in the quarter that also builds that confidence. Right now, our focus is really, um, how do we move it to 300,000 barrels a day and that I would just say the confidence in that is growing all the time. And uh, you know, we do. And we talked about that

John Whelan: We're continuing to work and develop those plans and, you know, we'll share them as those get matured.

In in the investor day. So we have a pretty clear path to get the asset to 300,000 barrels. A day with vitamin recovery. Projects continued, focus on individual equipment performance, extending our turnaround intervals, and the reduction duration, feel very good about that, but we're not, we're not done at 300. We're very much focused on, you know, what's the potential beyond that? We believe there is potential beyond that. And uh, we're continuing to work and develop those plans and, you know, we'll share them as the as those get matured.

Doug Leggate: Thanks, John.

John Whelan: Do you want me to take the second one?

Doug Leggate: Yeah.

John Whelan: Yeah. Hey, Doug. Just to kind of address your question, as you said, as we've said here, we fully plan to complete our accelerated NCIB by year end, consistent with what we've said a few times. You know, of course, looking into next year, the soonest we can renew that is late June of 2026. Of course, we plan to renew our NCIB. Your question is really around the first half of 2026. You know, as I said before, you know, our ability to return cash in that period really just depends on commodity prices, right? It depends on the crude prices and cracks.

Thanks John. You want me to take a second 1? Yeah. Hey Doug. Um,

uh,

John Whelan: You know, you know what we've said for a long time is, you know, as we generate surplus cash, we'll return it in a timely way. That still remains our principle. It's really just gonna be dependent on what the commodity markets give us in the first half of next year.

So just to kind of address address your question as you, uh, as you said as we've said here, we we fully plan to complete our accelerated and CIB by year, end by year, end consists of what we've said, um, a few times. Um, and you know, then of course, looking into next year, the soonest and we can renew that is late June of 26. And of course we we plan to renew our ncib and then then your questions really around the first half of 26. And, you know, as I said before, you know, our ability to return cash in that period. Really just depends on commodity prices, right? It depends on the crude prices and cracks and um you know you know what we've said for a long time is you know we'll you know, as we generate Surplus cash we'll return it in a timely way that Still Remains our principal. So it's really

Doug Leggate: Okay. Well, from your mouth to God's ears. Thanks, guys.

Really just going to be dependent on what the commodity markets. Give us in in the first half of next year.

Okay, well from your math to go to your stance, guys.

John Whelan: Thank you, Doug.

Operator: That does conclude the question and answer session. I'll now turn the conference back over to Peter Shaw for closing remarks.

Thank you, Doug.

Operator: That does conclude the question and answer session. I'll now turn the conference back over to Peter Shaw for closing remarks.

And that does conclude the question and answer session. I'll now turn the conference back over to Peter Shaw for closing remarks.

Peter Shaw: Thank you. On behalf of the management team, I'd like to thank everyone for joining us this morning. If you have any further questions, please don't hesitate to reach out to the IR team, and we'll be happy to answer those. With that, we'll say thank you very much and have a great day.

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

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

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