Imperial Oil sets 2026 guidance with $2.2B capex plan

Imperial Oil Limited (NYSE American: IMO) announced its 2026 corporate guidance, forecasting capital and exploration expenditures between $2.0 billion and $2.2 billion.

The Canadian energy company projects upstream production between 441,000 and 460,000 gross oil equivalent barrels per day for 2026. This includes production targets of 285,000 to 295,000 barrels per day at Kearl, 152,000 to 160,000 barrels per day at Cold Lake, and 78,000 to 82,000 barrels per day at Syncrude.

Downstream operations are expected to achieve throughput between 395,000 and 405,000 barrels per day, with refinery capacity utilization rates of 91% to 93%.

The company plans several turnarounds in 2026, including work at Kearl in the second quarter that will reduce 8,000 barrels per day of production at an operating cost of $61 million. Cold Lake turnarounds in the third and fourth quarters will impact 3,000 barrels per day at $18 million in operating costs. Syncrude maintenance in the second quarter will affect 4,000 barrels per day with $105 million in operating costs.

Downstream turnarounds include work at the Strathcona refinery in the second quarter, reducing throughput by 17,000 barrels per day at $122 million in operating costs. The Sarnia refinery will undergo maintenance in the third and fourth quarters, impacting 7,000 barrels per day at $107 million in operating costs.

The planned work at Kearl's K1 plant will extend the turnaround interval from two years to four years. At Strathcona, the turnaround will focus on the crude unit after achieving a 10-year run length.

Imperial's capital expenditures will target secondary bitumen recovery projects at Kearl, infill drilling and Mahihkan SA-SAGD at Cold Lake, and mine progression at both Kearl and Syncrude. Downstream investments will focus on digital infrastructure and projects to enhance logistics and feedstock flexibility.

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