Imperial Oil Limited is a Canadian integrated oil company. Its upstream assets are all oil sands located in Alberta. Imperial offers a low operating leverage, projected to be >1.0x Debt/FFO, and long-life assets with decent cash netbacks at varying price environments. Imperial provides a minimal return profile, largely due to long-term issues around oil pricing and the macro environment; however, a high return of capital from management may offer an upside. In 2022 Imperial bought back 18.3% of shares outstanding through the completion of its NCIB and two SIBs, in addition to a $0.44/quarter dividend.
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