Imperial Oil Plans $2B Investment to Enhance Profitability in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 15 2025
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Source: Newsfilter
- Capital Expenditure Plans: Imperial Oil forecasts capital and exploration expenditures between $2.0 billion and $2.2 billion for 2026, focusing on enhancing long-term profitability by investing in secondary bitumen recovery projects at Kearl and Cold Lake, thereby advancing high-value growth opportunities.
- Upstream Production Outlook: Upstream production is expected to reach between 441,000 and 460,000 gross oil equivalent barrels per day, with targets of 285,000 and 165,000 barrels per day at Kearl and Cold Lake respectively, reflecting the company's ongoing efforts to improve production reliability and growth.
- Downstream Capacity Utilization: Downstream throughput is projected between 395,000 and 405,000 barrels per day, with a utilization rate of 91% to 93%, which will enhance margins and long-term resilience through optimized logistics and processing flexibility.
- Strategic Restructuring: Imperial's 2026 plan aligns with its recently announced restructuring, aiming to leverage high-quality assets and unique competitive advantages to drive profitable growth and deliver industry-leading shareholder returns.
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Analyst Views on IMO
Wall Street analysts forecast IMO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for IMO is 82.50 USD with a low forecast of 67.67 USD and a high forecast of 100.78 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
1 Buy
4 Hold
5 Sell
Moderate Sell
Current: 103.470
Low
67.67
Averages
82.50
High
100.78
Current: 103.470
Low
67.67
Averages
82.50
High
100.78
About IMO
Imperial Oil Limited is a Canada-based integrated energy company. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a variety of specialty products; and pursuit of lower-emission business opportunities including carbon capture and storage, hydrogen, lower-emission fuels, and lithium. Its segments include Upstream, Downstream and Chemical. The Upstream segment is organized and operates to explore for and produce crude oil and its equivalent, and natural gas. The Downstream segment is organized and operates to refine crude oil into petroleum products and to distribute and market these products. The Chemical segment is organized and operates to manufacture and market hydrocarbon-based chemicals and chemical products. The Company's operations include Cold Lake, Kearl, Syncrude, Nanticoke, Sarnia and Strathcona refinery.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Imperial Oil to Announce Q4 Earnings on January 30
- Earnings Announcement Date: Imperial Oil is set to release its Q4 2023 earnings on January 30 before market open, with consensus EPS estimate at $1.38 and revenue at $8.76 billion, reflecting a 30.5% year-over-year decline, which may impact investor expectations regarding the company's future performance.
- Performance Beat Record: Over the past year, Imperial Oil has beaten EPS estimates 100% of the time and revenue estimates 75% of the time, demonstrating strong market performance and profitability, potentially boosting investor confidence.
- Expectation Adjustment Dynamics: In the last three months, EPS estimates have seen five upward revisions and one downward, while revenue estimates have experienced one upward and one downward revision, indicating some divergence in market perceptions of the company's future performance, which could affect stock price volatility.
- Cost Reduction Target: Imperial Oil aims to achieve an annual expense reduction of $150 million by 2028 through restructuring, a strategic move designed to enhance operational efficiency and strengthen its long-term sustainability in a competitive energy market.
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