Imperial Oil — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income of $2,454 million for the third quarter of 2026, compared to $539 million in the same period of 2025.
• Net income per common share (diluted) was $5.11 in Q3 2026, up from $1.07 in Q3 2025.
• Cash flows from operating activities were $3,228 million in Q3 2026, compared to $1,798 million in Q3 2025.
• Cash flows from operating activities excluding working capital were $2,957 million in Q3 2026, compared to $1,600 million in Q3 2025.
• Total revenues and other income were $16,205 million in Q3 2026, compared to $12,049 million in Q3 2025.
• Total expenses were $12,986 million in Q3 2026, compared to $11,348 million in Q3 2025.
• Capital and exploration expenditures totaled $668 million in Q3 2026, compared to $505 million in Q3 2025.
• Cash and cash equivalents at period end were $2,893 million as of September 30, 2026, compared to $1,861 million in the prior year.
• Total debt was $3,984 million at September 30, 2026, compared to $3,997 million in the prior year.
• Shareholders' equity was $24,467 million at September 30, 2026, compared to $23,684 million in the prior year.
• For the nine months ended September 30, 2026, net income was $5,584 million compared to $2,776 million in the same period of 2025.

Guidance and Future Outlook:

• Targeting total gross production at Kearl of 280,000 barrels per day (199,000 barrels Imperial's share) for the full year 2026.
• Anticipates debottlenecking rail logistics at Strathcona to enhance refinery capacity utilization by year end.
• Plans to complete the accelerated normal course issuer bid (NCIB) program prior to year end.
• Expects to be well positioned to return additional surplus cash to shareholders in the new year.
• Does not expect trade-related measures (tariffs) to have a material impact on consolidated financial position, results of operations, or cash flows.

Business Segments and Product Lines:

• Upstream: Gross oil-equivalent production averaged 418,000 barrels per day in Q3 2026, compared to 462,000 barrels per day in Q3 2025.
  • Kearl total gross production averaged 282,000 barrels per day (200,000 barrels Imperial's share) in Q3 2026, down from 316,000 barrels per day (224,000 barrels Imperial's share) in Q3 2025.
  • Cold Lake gross production averaged 139,000 barrels per day in Q3 2026, down from 150,000 barrels per day in Q3 2025.
  • Syncrude share of gross production averaged 70,000 barrels per day in Q3 2026, down from 78,000 barrels per day in Q3 2025.
  • Upstream net income was $941 million in Q3 2026, compared to $728 million in Q3 2025.
• Downstream: Refinery throughput averaged 381,000 barrels per day in Q3 2026, compared to 425,000 barrels per day in Q3 2025.
  • Refinery capacity utilization was 88 percent in Q3 2026, compared to 98 percent in Q3 2025.
  • Petroleum product sales averaged 474,000 barrels per day in Q3 2026, compared to 464,000 barrels per day in Q3 2025.
  • Downstream net income was $1,555 million in Q3 2026, compared to $444 million in Q3 2025.
  • The Renewable Diesel facility at Strathcona achieved its highest canola throughput and delivered strong financial performance.
• Chemical: Net income was $52 million in Q3 2026, compared to $21 million in Q3 2025.
• Corporate and other: Net loss was $94 million in Q3 2026, compared to a net loss of $654 million in Q3 2025.

Market and Competitive Landscape:

• Global supply disruptions continued to drive volatility in crude oil prices, heavy crude differentials, and industry refining margins.
• Average bitumen realizations increased by $23.94 per barrel in Q3 2026 compared to Q3 2025.
• Average synthetic crude oil realizations increased by $33.71 per barrel in Q3 2026 compared to Q3 2025.
• West Texas Intermediate (WTI) averaged $85.68 per barrel in Q3 2026, compared to $64.97 per barrel in Q3 2025.
• Western Canada Select (WCS) averaged $71.90 per barrel in Q3 2026, compared to $54.62 per barrel in Q3 2025.
• Industry refining margins improved relative to the second quarter of 2026.

Risks and Challenges:

• Kearl production was impacted by a third-party pipeline outage resulting in a full production shutdown for multiple days.
• Production at Cold Lake and Syncrude was impacted by planned turnaround activities.
• Lower refinery throughput and capacity utilization were driven by unplanned downtime, a third-party pipeline outage, and planned turnaround impacts.
• Higher operating costs in the Upstream segment were driven by higher energy costs and planned turnaround activities.
• Unfavourable identified items in Q3 2025 included a $306 million after-tax non-cash impairment charge and a $249 million after-tax restructuring charge.

Management Commentary and Tone:

• John Whelan, chairman, president and chief executive officer, stated that the company's "advantaged integrated business model continues to deliver strong financial results across all operating segments."
• Management noted that downstream performance was enhanced by the investment in the Renewable Diesel facility at the Strathcona refinery.
• Whelan highlighted that the company increased its cash balance to $2.9 billion while funding capital expenditures, dividend payments, and accelerated share repurchases.
• The tone reflects confidence in the company's ability to return surplus cash to shareholders and complete share repurchase programs ahead of schedule.

Other Key Points:

• Returned $2,506 million to shareholders in Q3 2026, consisting of $420 million in dividend payments and $2,086 million in share repurchases.
• Declared a fourth quarter dividend of 87 cents per share.
• Received final approval from the Toronto Stock Exchange for a new normal course issuer bid allowing the purchase of up to 24,179,635 common shares between June 29, 2026, and June 28, 2027.
• ExxonMobil Holdings Corporation intends to participate in the NCIB to maintain its ownership percentage at approximately 69.6 percent.
• Share repurchases in Q3 2026 included shares purchased from ExxonMobil.
• Nine months 2026 net income excluding identified items was $5,584 million, compared to $3,331 million in nine months 2025.
• Free cash flow for the nine months 2026 was $5,106 million, compared to $3,459 million in the same period of 2025.