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Imperial (IMO) Stock Barely Moves Since Q4 Earnings Miss
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Imperial Oil’s (IMO - Free Report) stock has hardly moved since the fourth-quarter 2021 earnings announcement on Feb 1. Though the company hiked its dividend, the muted response could be attributed to Imperial Oil’s lower-than-expected numbers on both fronts.
Delving Deeper
Imperial Oil reported fourth-quarter 2021 adjusted earnings per share of 94 cents, missing the Zacks Consensus Estimate of $1.07 due to increased total costs and escalated capital and exploration expenditures in the quarter. However, the bottom line improved significantly from the year-ago quarter’s profit of 2 cents, attributable to higher realizations, primarily driven by an increase in average bitumen realizations.
The Canadian integrated oil and gas player’s quarterly revenues of $9.77 billion missed the Zacks Consensus Estimate of $10.24 billion. However, the top line rose from the year-ago quarter’s sales of $4.63 billion.
In good news for investors, IMO raised its first-quarter 2022 dividend by 26% to 34 Canadian cents per share, up from 27 Canadian cents in the previous quarter.
Segmental Information
Upstream: Revenues of C$4,252 million increased from the prior-year level of C$2,940 million. The segment reported a net income of C$545 million against a net loss of C$1,192 million in the year-ago quarter. This upside was attributable to higher price realizations, primarily driven by an increase in average bitumen realizations.
Net production volumes during the quarter under review averaged 397,000 barrels of oil equivalent per day (Boe/d), down from 440,000 Boe/d in the year-ago quarter. The total oil and NGL output amounted to 378,000 barrels per day (bpd) compared with 417,000 bpd in the fourth quarter of 2020. Net oil and NGL output from Kearl and Cold Lake totaled 179,000 bpd and 119,000 bpd, respectively. Syncrude output averaged 68,000 bpd, down from the year-earlier quarter’s level. Net natural gas production came in at 112 million cubic feet per day (Mcf/d), lower than 136 Mcf/d in the comparable quarter of the last year.
Bitumen price realizations totaled C$65.53 a barrel, up from C$34.19 in the year-ago quarter. The company received an average realized price of C$92.54 per barrel of synthetic oil compared with the year-ago quarter’s C$51.28. For conventional crude oil, it received C$70.09 per barrel compared with the year-ago quarter’s C$27.21. Prices of NGL increased to C$62.07 a barrel, while the same of gas rose to C$4.92 per thousand cubic feet year over year.
Downstream: Revenues of C$14,453 million were up massively from C$4,213 million in the fourth quarter of 2020. Moreover, the segment earned a net income of C$250 million compared with C$106 million reported in the year-ago quarter, attributable to strong margins of about $260 million, showing enhanced product demand.
Refinery throughput in the fourth quarter averaged 416,000 bpd, higher than the prior-year quarter’s level of 359,000 bpd. Capacity utilization of 89% compared favorably with the year-earlier level of 80%. This outperformance was due to increased demand, reflecting the reduced effects related to the pandemic.
Chemical: Revenues of C$449 million rose from C$281 million in the fourth quarter of 2020. Net income for this segment was recorded at C$64 million compared with the year-ago quarter’s tally of C$23 million.
Imperial Oil Limited Price, Consensus and EPS Surprise
Total expenses of C$11,201 million increased from the year-ago quarter’s C$7,496 million.
In the quarter under consideration, Imperial Oil’s capital and exploration expenditures summed C$441 million, up from the year-ago quarter’s C$195 million.
Financial Performance
Imperial Oil’s cash flow from operating activities was C$1.63 billion in the reported quarter. However, in the year-ago period, cash flow from operating activities came in at C$316 million.
The company returned C$188 million to its shareholders through dividends in the reported quarter.
As of Dec 31, IMO held C$2.15 billion of cash and cash equivalents. Its total debt amounted to C$5,176 million.
Outlook
Imperial oil declared the goal for 2030 oil sands greenhouse gas emission intensity reduction in support of its vision to accomplish net-zero emissions in its operated oil sands assets by 2050.
Denbury stock has rallied 52.7% in a year. The Zacks Consensus Estimate for Denbury’s 2022 earnings has been revised upward three times over the past 60 days.
The Zacks Consensus Estimate for DEN’s 2022 earnings is projected at $6.47 per share, which is an increase of about 154.7% from the projected year-ago earnings of $2.54.
The Zacks Consensus Estimate for Ranger Oil’s 2022 earnings is projected at $9.29 per share, which is an increase of a massive 162.3% from the projected year-ago earnings of $3.54.
ROCC beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being around 25%. Ranger Oil’s stock has increased 88.2% in a year.
ExxonMobil beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 5.8%. ExxonMobil stock has gone up 34.9% in a year.
XOM is valued at around $324 billion. The Zacks Consensus Estimate for ExxonMobil’s 2022 earnings has been revised upward by about 15.1% over the past 60 days from $5.95 to $6.85 per share.
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Imperial (IMO) Stock Barely Moves Since Q4 Earnings Miss
Imperial Oil’s (IMO - Free Report) stock has hardly moved since the fourth-quarter 2021 earnings announcement on Feb 1. Though the company hiked its dividend, the muted response could be attributed to Imperial Oil’s lower-than-expected numbers on both fronts.
Delving Deeper
Imperial Oil reported fourth-quarter 2021 adjusted earnings per share of 94 cents, missing the Zacks Consensus Estimate of $1.07 due to increased total costs and escalated capital and exploration expenditures in the quarter. However, the bottom line improved significantly from the year-ago quarter’s profit of 2 cents, attributable to higher realizations, primarily driven by an increase in average bitumen realizations.
The Canadian integrated oil and gas player’s quarterly revenues of $9.77 billion missed the Zacks Consensus Estimate of $10.24 billion. However, the top line rose from the year-ago quarter’s sales of $4.63 billion.
In good news for investors, IMO raised its first-quarter 2022 dividend by 26% to 34 Canadian cents per share, up from 27 Canadian cents in the previous quarter.
Segmental Information
Upstream: Revenues of C$4,252 million increased from the prior-year level of C$2,940 million. The segment reported a net income of C$545 million against a net loss of C$1,192 million in the year-ago quarter. This upside was attributable to higher price realizations, primarily driven by an increase in average bitumen realizations.
Net production volumes during the quarter under review averaged 397,000 barrels of oil equivalent per day (Boe/d), down from 440,000 Boe/d in the year-ago quarter. The total oil and NGL output amounted to 378,000 barrels per day (bpd) compared with 417,000 bpd in the fourth quarter of 2020. Net oil and NGL output from Kearl and Cold Lake totaled 179,000 bpd and 119,000 bpd, respectively. Syncrude output averaged 68,000 bpd, down from the year-earlier quarter’s level. Net natural gas production came in at 112 million cubic feet per day (Mcf/d), lower than 136 Mcf/d in the comparable quarter of the last year.
Bitumen price realizations totaled C$65.53 a barrel, up from C$34.19 in the year-ago quarter. The company received an average realized price of C$92.54 per barrel of synthetic oil compared with the year-ago quarter’s C$51.28. For conventional crude oil, it received C$70.09 per barrel compared with the year-ago quarter’s C$27.21. Prices of NGL increased to C$62.07 a barrel, while the same of gas rose to C$4.92 per thousand cubic feet year over year.
Downstream: Revenues of C$14,453 million were up massively from C$4,213 million in the fourth quarter of 2020. Moreover, the segment earned a net income of C$250 million compared with C$106 million reported in the year-ago quarter, attributable to strong margins of about $260 million, showing enhanced product demand.
Refinery throughput in the fourth quarter averaged 416,000 bpd, higher than the prior-year quarter’s level of 359,000 bpd. Capacity utilization of 89% compared favorably with the year-earlier level of 80%. This outperformance was due to increased demand, reflecting the reduced effects related to the pandemic.
Chemical: Revenues of C$449 million rose from C$281 million in the fourth quarter of 2020. Net income for this segment was recorded at C$64 million compared with the year-ago quarter’s tally of C$23 million.
Imperial Oil Limited Price, Consensus and EPS Surprise
Imperial Oil Limited price-consensus-eps-surprise-chart | Imperial Oil Limited Quote
Total Costs & Capex
Total expenses of C$11,201 million increased from the year-ago quarter’s C$7,496 million.
In the quarter under consideration, Imperial Oil’s capital and exploration expenditures summed C$441 million, up from the year-ago quarter’s C$195 million.
Financial Performance
Imperial Oil’s cash flow from operating activities was C$1.63 billion in the reported quarter. However, in the year-ago period, cash flow from operating activities came in at C$316 million.
The company returned C$188 million to its shareholders through dividends in the reported quarter.
As of Dec 31, IMO held C$2.15 billion of cash and cash equivalents. Its total debt amounted to C$5,176 million.
Outlook
Imperial oil declared the goal for 2030 oil sands greenhouse gas emission intensity reduction in support of its vision to accomplish net-zero emissions in its operated oil sands assets by 2050.
Zacks Rank & Other Key Picks
Imperial Oil currently carries a Zacks Rank #2 (Buy). Other players from the energy space include Denbury Inc. , Ranger Oil and ExxonMobil (XOM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Denbury stock has rallied 52.7% in a year. The Zacks Consensus Estimate for Denbury’s 2022 earnings has been revised upward three times over the past 60 days.
The Zacks Consensus Estimate for DEN’s 2022 earnings is projected at $6.47 per share, which is an increase of about 154.7% from the projected year-ago earnings of $2.54.
The Zacks Consensus Estimate for Ranger Oil’s 2022 earnings is projected at $9.29 per share, which is an increase of a massive 162.3% from the projected year-ago earnings of $3.54.
ROCC beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being around 25%. Ranger Oil’s stock has increased 88.2% in a year.
ExxonMobil beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 5.8%. ExxonMobil stock has gone up 34.9% in a year.
XOM is valued at around $324 billion. The Zacks Consensus Estimate for ExxonMobil’s 2022 earnings has been revised upward by about 15.1% over the past 60 days from $5.95 to $6.85 per share.