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Imperial Oil Q1 Earnings Miss Estimates, Revenues Rise YoY
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Key Takeaways
IMO posted Q1 EPS of $1.41, missing estimates and falling YoY, while sales rose to $9.1B but missed consensus.
IMO saw weaker upstream income and lower prices, with declines in downstream sales and refinery throughput.
IMO returned C$350M via dividends and expects 2026 upstream output of 441K-460K boe/d with steady utilization.
Imperial Oil Limited (IMO - Free Report) reported first-quarter 2026 adjusted earnings per share of $1.41, which missed the Zacks Consensus Estimate of $1.67 and decreased from the year-ago quarter’s $1.75 due to lower net income in the upstream segment and a lower average realized price for synthetic crude.
Revenues of $9.1 billion missed the Zacks Consensus Estimate of $9.8 billion due to weak performance in both the Upstream and Downstream segments. However, the top line increased from the year-ago quarter’s level of $8.7 billion.
Imperial Oil Limited Price, Consensus and EPS Surprise
During the quarter, Imperial Oil returned C$350 million to its shareholders through dividend payments.
On May 1, 2026, the Calgary-based integrated oil and gas company declared a quarterly dividend of 87 Canadian cents per share on its outstanding common shares, payable on July 1, 2026, to its shareholders of record as of June 4.
IMO’s Segmental Information
Upstream: Revenues of C$4 billion decreased from the prior-year level of C$4.5 billion. The segment reported a net income of C$470 million compared with C$731 million in the year-ago quarter.
The company recorded average upstream production of 419,000 gross oil-equivalent barrels per day (boe/d) in the first quarter, which increased from the prior-year level of 418,000 boe/d. However, the figure missed our expectation of 436,000 boe/d.
IMO recorded total gross bitumen production at Kearl averaged 259,000 barrels per day (183,000 barrels Imperial Oil's share), up from 256,000 barrels per day (181,000 barrels Imperial Oil's share) in the first quarter of 2025.
The company also posted gross bitumen production at Cold Lake, averaging 155,000 barrels per day (bpd), which was an increase from 154,000 bpd in the first quarter of 2025.
IMO’s share of gross production from Syncrude averaged 72,000 bpd, down from 73,000 bpd in the first quarter of 2025. Lower volumes at Syncrude were caused by unplanned coker downtime.
Bitumen price realizations totaled C$68.21 per barrel compared with C$75.31 in the year-ago period. IMO received an average realized price of C$96.13 per barrel for synthetic oil compared with the prior-year quarter’s C$98.79. For conventional crude oil, it received C$52.44 per barrel compared with C$48.70 in the corresponding period of 2025.
Downstream: Revenues of C$13.9 billion decreased from the prior-year level of C$14 billion. Net income totaled C$611 million compared with C$584 million in the year-ago period.
The company recorded petroleum product sales of 441,000 bpd, compared to 455,000 bpd in the first quarter of 2025. The figure missed our expectation of 494,000 bpd. The refinery throughput in the first quarter averaged 384,000 bpd, down from the prior-year quarter’s level of 397,000 bpd. Moreover, the figure missed our estimate of 412,000 bpd. Imperial Oil recorded lower refinery throughput, primarily due to unplanned downtime and a disruption of synthetic crude feedstock caused by Syncrude's coker outage. The capacity utilization of 88% was down from the year-ago level of 91%. The figure also missed our estimate.
Chemical: Revenues of C$336 million decreased from C$372 million in the first quarter of 2025. Net income totaled C$24 million compared with C$31 million in the year-ago period.
IMO’s Total Costs & Capex
Total expenses of C$11.2 billion increased from the year-ago quarter’s C$10.8 billion.
In the quarter under review, this Zacks Rank #1 (Strong Buy) company’s capital and exploration expenditures totaled C$478 million, up from the year-ago quarter’s C$398 million.
Cash flow from operating activities was C$756 million compared with C$1.5 billion in the year-ago quarter.
As of March 31, 2026, Imperial Oil had cash and cash equivalents of C$1 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 14.9%.
IMO’s Outlook for 2026
IMO has already disclosed a capital and exploration spending budget ranging between C$2 billion and C$2.2 billion for 2026. Within its Upstream segment, production is anticipated to be in the range of 441,000-460,000 gross oil-equivalent barrels per day for the same year. Meanwhile, throughput in the Downstream segment is projected to be in the range of 395,000-405,000 barrels per day, accompanied by a capacity utilization rate of 91-93% throughout 2026.
Important Earnings at a Glance
While we have discussed IMO’s first-quarter results in detail, let us take a look at three other key reports in this space.
Patterson-UTI Energy, Inc. (PTEN - Free Report) reported a first-quarter 2026 adjusted net loss of 6 cents per share, narrower than the Zacks Consensus Estimate of a 10-cent loss. However, the bottom line decreased from the year-ago quarter's breakeven result due to a decrease in operating income in its Drilling Services, Completion Services and Drilling Products segments.
Total revenues of $1.1 billion beat the Zacks Consensus Estimate by 3.1%. This was driven by higher-than-expected revenues from the Drilling Services and Completion Services segments. The Drilling Services and Completion Services segments reported revenues of $351.7 million and $679.6 million, which beat the consensus mark of $350 million and $37.1 million, respectively. However, the top line decreased about 12.8% year over year. This underperformance can be attributed to the decrease in year-over-year segment revenues.
As of March 31, 2026, the company had cash and cash equivalents worth $337.2 million and long-term debt of $1.2 billion. Its debt-to-capitalization was 27.8%.
NOV Inc. (NOV - Free Report) reported first-quarter 2026 adjusted earnings of 15 cents per share, which missed the Zacks Consensus Estimate of 17 cents. The bottom line also decreased 21% from the year-ago quarter’s 19 cents.
The oil and gas equipment and services company’s total revenues of $2.05 billion beat the Zacks Consensus Estimate by $2 million but fell 2.4% from the year-ago quarter’s figure of $2.1 billion.
The lower-than-expected quarterly earnings of the company were primarily attributable to conflict in the Middle East, which disrupted logistics, delayed deliveries and increased operational costs.
As of March 31, the company had cash and cash equivalents of $1.3 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 21.2%. NOV had $1.5 billion available on its primary revolving credit facility during the same time.
Nabors Industries Ltd. (NBR - Free Report) reported a first-quarter 2026 adjusted loss of $1.54 per share, narrower than the Zacks Consensus Estimate of a loss of $2.39. Additionally, the metric is significantly above the prior-year quarter’s reported loss of $7.5 per share. This outperformance was mainly driven by higher adjusted operating income from its International Drilling segment.
The oil and gas drilling company’s operating revenues of $783.5 million beat the Zacks Consensus Estimate of $779 million. The top line also increased from the year-ago quarter’s $736.2 million, primarily supported by higher contributions from the U.S. Drilling, International Drilling and Drilling Solutions segments.
As of March 31, 2026, Nabors had $500.9 million in cash and short-term investments. Long-term debt was about $2.1 billion, with a debt-to-capitalization of 78.8%.
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Imperial Oil Q1 Earnings Miss Estimates, Revenues Rise YoY
Key Takeaways
Imperial Oil Limited (IMO - Free Report) reported first-quarter 2026 adjusted earnings per share of $1.41, which missed the Zacks Consensus Estimate of $1.67 and decreased from the year-ago quarter’s $1.75 due to lower net income in the upstream segment and a lower average realized price for synthetic crude.
Revenues of $9.1 billion missed the Zacks Consensus Estimate of $9.8 billion due to weak performance in both the Upstream and Downstream segments. However, the top line increased from the year-ago quarter’s level of $8.7 billion.
Imperial Oil Limited Price, Consensus and EPS Surprise
Imperial Oil Limited price-consensus-eps-surprise-chart | Imperial Oil Limited Quote
During the quarter, Imperial Oil returned C$350 million to its shareholders through dividend payments.
On May 1, 2026, the Calgary-based integrated oil and gas company declared a quarterly dividend of 87 Canadian cents per share on its outstanding common shares, payable on July 1, 2026, to its shareholders of record as of June 4.
IMO’s Segmental Information
Upstream: Revenues of C$4 billion decreased from the prior-year level of C$4.5 billion. The segment reported a net income of C$470 million compared with C$731 million in the year-ago quarter.
The company recorded average upstream production of 419,000 gross oil-equivalent barrels per day (boe/d) in the first quarter, which increased from the prior-year level of 418,000 boe/d. However, the figure missed our expectation of 436,000 boe/d.
IMO recorded total gross bitumen production at Kearl averaged 259,000 barrels per day (183,000 barrels Imperial Oil's share), up from 256,000 barrels per day (181,000 barrels Imperial Oil's share) in the first quarter of 2025.
The company also posted gross bitumen production at Cold Lake, averaging 155,000 barrels per day (bpd), which was an increase from 154,000 bpd in the first quarter of 2025.
IMO’s share of gross production from Syncrude averaged 72,000 bpd, down from 73,000 bpd in the first quarter of 2025. Lower volumes at Syncrude were caused by unplanned coker downtime.
Bitumen price realizations totaled C$68.21 per barrel compared with C$75.31 in the year-ago period. IMO received an average realized price of C$96.13 per barrel for synthetic oil compared with the prior-year quarter’s C$98.79. For conventional crude oil, it received C$52.44 per barrel compared with C$48.70 in the corresponding period of 2025.
Downstream: Revenues of C$13.9 billion decreased from the prior-year level of C$14 billion. Net income totaled C$611 million compared with C$584 million in the year-ago period.
The company recorded petroleum product sales of 441,000 bpd, compared to 455,000 bpd in the first quarter of 2025. The figure missed our expectation of 494,000 bpd. The refinery throughput in the first quarter averaged 384,000 bpd, down from the prior-year quarter’s level of 397,000 bpd. Moreover, the figure missed our estimate of 412,000 bpd. Imperial Oil recorded lower refinery throughput, primarily due to unplanned downtime and a disruption of synthetic crude feedstock caused by Syncrude's coker outage. The capacity utilization of 88% was down from the year-ago level of 91%. The figure also missed our estimate.
Chemical: Revenues of C$336 million decreased from C$372 million in the first quarter of 2025. Net income totaled C$24 million compared with C$31 million in the year-ago period.
IMO’s Total Costs & Capex
Total expenses of C$11.2 billion increased from the year-ago quarter’s C$10.8 billion.
In the quarter under review, this Zacks Rank #1 (Strong Buy) company’s capital and exploration expenditures totaled C$478 million, up from the year-ago quarter’s C$398 million.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Financial Performance for IMO
Cash flow from operating activities was C$756 million compared with C$1.5 billion in the year-ago quarter.
As of March 31, 2026, Imperial Oil had cash and cash equivalents of C$1 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 14.9%.
IMO’s Outlook for 2026
IMO has already disclosed a capital and exploration spending budget ranging between C$2 billion and C$2.2 billion for 2026. Within its Upstream segment, production is anticipated to be in the range of 441,000-460,000 gross oil-equivalent barrels per day for the same year. Meanwhile, throughput in the Downstream segment is projected to be in the range of 395,000-405,000 barrels per day, accompanied by a capacity utilization rate of 91-93% throughout 2026.
Important Earnings at a Glance
While we have discussed IMO’s first-quarter results in detail, let us take a look at three other key reports in this space.
Patterson-UTI Energy, Inc. (PTEN - Free Report) reported a first-quarter 2026 adjusted net loss of 6 cents per share, narrower than the Zacks Consensus Estimate of a 10-cent loss. However, the bottom line decreased from the year-ago quarter's breakeven result due to a decrease in operating income in its Drilling Services, Completion Services and Drilling Products segments.
Total revenues of $1.1 billion beat the Zacks Consensus Estimate by 3.1%. This was driven by higher-than-expected revenues from the Drilling Services and Completion Services segments. The Drilling Services and Completion Services segments reported revenues of $351.7 million and $679.6 million, which beat the consensus mark of $350 million and $37.1 million, respectively. However, the top line decreased about 12.8% year over year. This underperformance can be attributed to the decrease in year-over-year segment revenues.
As of March 31, 2026, the company had cash and cash equivalents worth $337.2 million and long-term debt of $1.2 billion. Its debt-to-capitalization was 27.8%.
NOV Inc. (NOV - Free Report) reported first-quarter 2026 adjusted earnings of 15 cents per share, which missed the Zacks Consensus Estimate of 17 cents. The bottom line also decreased 21% from the year-ago quarter’s 19 cents.
The oil and gas equipment and services company’s total revenues of $2.05 billion beat the Zacks Consensus Estimate by $2 million but fell 2.4% from the year-ago quarter’s figure of $2.1 billion.
The lower-than-expected quarterly earnings of the company were primarily attributable to conflict in the Middle East, which disrupted logistics, delayed deliveries and increased operational costs.
As of March 31, the company had cash and cash equivalents of $1.3 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 21.2%. NOV had $1.5 billion available on its primary revolving credit facility during the same time.
Nabors Industries Ltd. (NBR - Free Report) reported a first-quarter 2026 adjusted loss of $1.54 per share, narrower than the Zacks Consensus Estimate of a loss of $2.39. Additionally, the metric is significantly above the prior-year quarter’s reported loss of $7.5 per share. This outperformance was mainly driven by higher adjusted operating income from its International Drilling segment.
The oil and gas drilling company’s operating revenues of $783.5 million beat the Zacks Consensus Estimate of $779 million. The top line also increased from the year-ago quarter’s $736.2 million, primarily supported by higher contributions from the U.S. Drilling, International Drilling and Drilling Solutions segments.
As of March 31, 2026, Nabors had $500.9 million in cash and short-term investments. Long-term debt was about $2.1 billion, with a debt-to-capitalization of 78.8%.