Imperial Oil Limited IMO updated its corporate guiding prediction for 2022. The company's business strategy is still centered on improving the productivity of existing assets, enhancing shareholder returns, and advancing major environmental projects.

Capital Spending View

The Calgary-based energy player's capital expenditure for 2022 is estimated to be C$1.4 billion, 27.3% higher than the 2021 projection of C$1.1 billion.

It anticipates disbursing 2022 capex for ramping up the in-pit tailing project at the Kearl oil sands plant. Further, planning to spend on the completion and commissioning of the Sarnia product pipeline in southern Ontario along with ongoing investment in Kearl's autonomous fleet and the application of solvent technologies at Cold Lake.

Segmental View for 2022

Upstream: Imperial Oil expects average upstream production of 425,000-440,000 barrels of oil equivalent per day (Boe/d) for 2022, approximately 4% higher than the 2021 guidance. This is supported by good operating performance in its key oil sands assets and the ongoing production expansion at Kearl.

Kearl is on pace to meet its initial 2025 production target of 280,000 total gross barrels per day on capital-efficient debottlenecking, digital efforts, and process improvements.

Downstream:  The Canadian energy firm's downstream throughput volumes are expected to be between 395,000 barrels per day (b/d) and 405,000 b/d for the next year, up 7% from the 2021 view of 375,000 b/d.

IMO is well-positioned as demand continues to revive through 2022, thanks to further enhancements to its portfolio of brands and product offerings, as well as access to cost-advantaged crude and logistical networks.

Imperial Oil's objectives reflect the company's sustained commitment to maximize the value of its existing assets via capital discipline and productivity as well as ensuring sustainable operations through structural cost savings and the advancement of important sustainability projects.

As it implements high-value, low-cost debottlenecking and other targeted development projects, IMO aims to establish the framework for ongoing volume expansion in its core oil sands business in 2023 and beyond.

Zacks Rank & Other Key Picks

Imperial Oil currently has a Zack Rank #2 (Buy). Investors interested in the energy sector might look at the following stocks with a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.

Occidental Petroleum Corporation OXY is an integrated oil and gas company with significant exploration and production exposure. OXY is also a producer of various basic chemicals, petrochemicals, polymers and specialty chemicals. As of 2020 end, OXY's preliminary worldwide proved reserves totaled 2.91 billion BOE compared with 3.9 billion BOE at the end of 2019.