• Quarterly net income of $1,133 million
• Cash flows from operating activities of $1,629 million and cash flows from operating activities excluding working capital of $1,508 million
• Upstream production of 404,000 gross oil-equivalent barrels per day, highest second quarter in over 30 years when adjusted for divestment of XTO Energy Canada
• Matched highest-ever second quarter production at Kearl of 255,000 total gross oil-equivalent barrels per day (181,000 barrels Imperial’s share)
• Strong performance at Cold Lake with production of 147,000 barrels per day and first oil at Grand Rapids
• Achieved refinery capacity utilization of 89 percent while successfully completing turnarounds at Strathcona and Sarnia
• Renewed annual normal course issuer bid to repurchase up to 5 percent of outstanding common shares; plan to accelerate purchases to complete the program prior to year end
• Declared quarterly dividend of 60 cents per share

Imperial reported estimated net income in the second quarter of $1,133 million, compared to net income of $1,195 million in the first quarter of 2024, reflecting lower refinery margins, and significant turnaround activity partly offset by stronger upstream realizations. Quarterly cash flows from operating activities were $1,629 million, up from $1,076 million generated in the first quarter of 2024. Excluding the impact of working capital, cash flows from operating activities were $1,508 million, compared to $1,521 million in the first quarter of 2024.

"Imperial’s second quarter results are underpinned by strong operations across our businesses, including the safe and successful completion of several major turnarounds," said Brad Corson, chairman, president and chief executive officer. "With the majority of upstream turnaround activity behind us, we are well positioned for strong production in the second half of the year."

Upstream production in the second quarter averaged 404,000 gross oil-equivalent barrels per day, the highest second quarter production in over 30 years when adjusting for the divestment of XTO Energy Canada. At Kearl, quarterly total gross production averaged 255,000 barrels per day (181,000 barrels Imperial's share), matching the asset's second quarter production record and achieving record first half production. Kearl also successfully completed its annual turnaround in record time during the quarter. At Cold Lake, quarterly gross production averaged 147,000 barrels per day, including about 3,000 barrels per day from Grand Rapids Phase 1 (GRP1). The production at GRP1 continues to ramp up, producing about 8,000 gross barrels per day in June, and is expected to achieve 15,000 gross barrels per day at full production rates. This project also lowers unit cash cost and reduces greenhouse gas intensity compared to legacy processes. During the quarter, Syncrude completed its annual coker turnaround, with the company's share of quarterly production averaging 66,000 gross barrels per day.

"Grand Rapids Phase 1 is the first solvent assisted SAGD operation in the industry, highlighting Imperial's continued focus on leveraging technology to profitably grow production while reducing greenhouse gas intensity," said Corson.

In the Downstream, major turnarounds were successfully completed at the Strathcona and Sarnia refineries. Quarterly throughput averaged 387,000 barrels per day, with overall refinery capacity utilization of 89 percent, reflecting strong operations and high reliability, particularly at the Nanticoke refinery. Petroleum product sales averaged 470,000 barrels per day. Throughout the quarter, the company continued to advance work on Canada’s largest renewable diesel facility at its Strathcona refinery. When completed, the project is expected to have a capacity of more than one billion litres of renewable diesel annually.

Imperial returned $321 million to shareholders through dividend payments during the second quarter and has declared a third quarter dividend of 60 cents per share. In June, Imperial renewed its annual normal course issuer bid program (NCIB), allowing the repurchase of up to five percent of its outstanding shares over a 12-month period.

"Consistent with our continued commitment to return surplus cash to shareholders, I am pleased to announce our plan to accelerate our NCIB share repurchases with a target of completing the program prior to year end," said Corson.

Second quarter highlights

• Net income of $1,133 million or $2.11 per share on a diluted basis, up from $675 million or $1.15 per share in the second quarter of 2023.
• Cash flows from operating activities of $1,629 million, up from cash flows from operating activities of $885 million in the second quarter of 2023. Cash flows from operating activities excluding working capital1 of $1,508 million, up from $1,136 million in the same period of 2023.
• Capital and exploration expenditures totaled $462 million, compared to $493 million in the second quarter of 2023.
• The company returned $321 million to shareholders in the second quarter of 2024 through dividends paid.
• Renewed share repurchase program, enabling the purchase of up to five percent of common shares outstanding, a maximum of 26,791,840 shares, during the 12-month period commencing June 29, 2024. Consistent with the company's commitment to return surplus cash to shareholders, Imperial plans to accelerate its share purchases under the NCIB program and anticipates repurchasing all remaining allowable shares prior to the end of 2024. Purchase plans may be modified at any time without prior notice.
• Production averaged 404,000 gross oil-equivalent barrels per day, the highest second quarter production in over 30 years when adjusting for the divestment of XTO Energy Canada, up from 363,000 gross oil-equivalent barrels per day in the same period of 2023.
• Total gross bitumen production at Kearl averaged 255,000 barrels per day (181,000 barrels Imperial's share), matching the second quarter production record and achieving record first half production. This is up from 217,000 barrels per day (154,000 barrels Imperial's share) in the second quarter of 2023.
• Gross bitumen production at Cold Lake averaged 147,000 barrels per day, up from 132,000 barrels per day in the second quarter of 2023, primarily driven by production and steam cycle timing, and Grand Rapids Phase 1 (GRP1) production.
• Achieved first oil at Grand Rapids Phase 1, consistent with plan and continuing to ramp up production. GRP1 is the first solvent-assisted SAGD project in the industry and will lower unit cash cost and reduce greenhouse gas intensity compared to legacy processes. This project is expected to achieve 15,000 gross barrels per day of production at full rates.
• Commenced module fabrication on Leming SAGD redevelopment project, work on site continues to progress. The project is on track for a 2025 start up with peak production anticipated to be around 9,000 gross barrels per day.
• The company's share of gross production from Syncrude averaged 66,000 barrels per day, consistent with 66,000 barrels per day in the second quarter of 2023. Syncrude completed its annual coker turnaround in late May.
• Refinery throughput averaged 387,000 barrels per day, compared to 388,000 barrels per day in the second quarter of 2023. Capacity utilization was 89 percent, compared to 90 percent in the second quarter of 2023. This reflects the strong operations and high reliability this quarter, including the successful turnarounds at Sarnia and Strathcona.
• Petroleum product sales were 470,000 barrels per day, compared to 475,000 barrels per day in the second quarter of 2023.
• Successfully completed proactive replacement of a section from the Winnipeg Products Pipeline, restoring pipeline fuel supply in the region.
• Continued to advance work on Canada's largest renewable diesel facility at the Strathcona refinery, with the main reactor now installed. When completed, the project is expected to have a capacity of more than one billion litres of renewable diesel annually.
• Further developed network of renewable diesel blending and offloading distribution terminals. Completion of the Calgary terminal further expands our capability to supply lower emission fuel options to our customers.
• Chemical net income of $65 million in the quarter, compared to $71 million in the second quarter of 2023.
• Pathways Alliance continued to file regulatory applications with the Alberta Energy Regulator for the proposed carbon capture and storage project, while progressing front end engineering and design on the proposed transportation pipeline as well as drilling plans for additional evaluation wells. Completion of the project is contingent on fiscal support and regulatory approvals.