- Imperial Oil (TSX:IMO) forecasts 2026 capital and exploration expenditures of C$2.0–C$2.2 billion, focusing on projects to boost long-term profitability
- Production expected at 441,000–460,000 barrels/day, driven by reliability improvements and expansions at Kearl and Cold Lake, with major turnarounds planned
- Throughput projected at 395,000–405,000 barrels/day; investments in digital infrastructure, logistics, and emissions compliance aim to strengthen refinery flexibility and profitability
- Imperial Oil stock (TSX:IMO) last traded at C$123.82
Imperial Oil (TSX:IMO) has released its corporate outlook for 2026, projecting capital and exploration expenditures between C$2.0 billion and C$2.2 billion, with a focus on projects designed to strengthen long-term profitability across its operations.
Upstream: Driving production growth
In the upstream segment, Imperial plans to advance secondary bitumen recovery projects at Kearl, pursue high-value infill drilling, and progress the Mahihkan SA-SAGD development at Cold Lake. Mine progression work will continue at both Kearl and Syncrude.
Production is forecasted to range between 441,000 and 460,000 gross oil-equivalent barrels per day, reflecting reliability improvements and growth at Kearl and Cold Lake. These sites are moving toward targets of 300,000 barrels per day at Kearl and 165,000 barrels per day at Cold Lake. Planned turnarounds will occur at Cold Lake, Syncrude, and Kearl, with work at Kearl’s K1 plant extending its turnaround interval from two years to four years.
Downstream: Enhancing flexibility and compliance
Imperial’s downstream operations are expected to maintain throughput between 395,000 and 405,000 barrels per day, with capacity utilization of 91 per cent to 93 per cent. Investments will focus on digital infrastructure and targeted projects to strengthen logistics and feedstock flexibility, positioning refineries for upcoming emissions-related regulations.
Turnarounds are scheduled at Strathcona and Sarnia, with Strathcona’s work centered on the crude unit following its record 10-year run length. Imperial aims to maximize downstream profitability by leveraging its coast-to-coast logistics network and strong brand loyalty programs to deliver products—including renewable diesel—to high-value markets.
Leadership commentary
“Our 2026 plan builds on Imperial’s strong foundation and positions the company to structurally increase cash flow, by progressing towards volume and unit cash cost targets at Kearl and Cold Lake,” John Whelan, the company’s chairman, president and chief executive officer said in a news release. “In the downstream, we remain focused on delivering industry-leading operational performance, while enhancing logistics and processing flexibility to further improve margins and long-term resilience.”
Imperial Oil is one of Canada’s largest integrated oil companies.
Imperial Oil stock (TSX:IMO) last traded at C$123.82 and has risen nearly 40 per cent since the year began.
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