Imperial Oil explores for, produces, and sells crude oil and natural gas in Canada. The company operates through three segments: Upstream, Downstream, and Chemical. The company was founded in 1880 and is based in Calgary, Canada.
IMO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Imperial Oil Ltd. To summarize, we found that Imperial Oil Ltd ranked in the 75th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 406.5%. The most interesting components of our discounted cash flow analysis for Imperial Oil Ltd ended up being:
Its compound free cash flow growth rate, as measured over the past 4.01 years, is 0.67% -- higher than 85.79% of stocks in our DCF forecasting set.
Imperial Oil Ltd's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Energy), Imperial Oil Ltd has a reliance on debt greater than just 18.66% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as IMO, try HESM, PAA, TALO, MPLX, and HMLP.
Imperial Oil is one of Canada’s largest integrated oil companies, focusing on upstream operations, petroleum refining operations, and the marketing of petroleum products. Production averaged 398 thousand barrels of oil equivalent per day in 2019. The company estimates that it holds 6.2 billion boe of proved and probable crude oil and natural gas reserves. Imperial remains the largest refiner of petroleum products in Canada, operating three refineries with a combined processing capacity of 421 mboe/d.
The Canadian government says its plan to require reductions in carbon intensity of fuels will boost the economy as it recovers from the coronavirus pandemic, but oil and chemical companies say they are worried it will boost their costs as they struggle to rebound. Ottawa intends to release plans this autumn to reduce the carbon intensity of liquid fuel by 12% by 2030, including by requiring refiners to blend cleaner combustibles with fossil fuels under a Clean Fuel Standard, government and industry officials said. The standard aims to reduce greenhouse gas emissions by 30 million tonnes by 2030, a critical part of Prime Minister Justin Trudeau's green plan.
Imperial Oil (IMO) says it is undertaking a controlled ramp down at its Kearl oil sands operation due to an ongoing outage the Polaris diluent pipeline.Imperial says it has ceased all production at the Kearl site and will ramp back up to full production rates when the pipeline is back...