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Imperial (IMO) Q2 Earnings Rise Y/Y, Sales Lag Estimates
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Imperial Oil Limited (IMO - Free Report) reported second-quarter 2024 adjusted earnings per share of $1.54, higher than the year-ago quarter’s level of 86 cents. This increase was primarily driven by higher contributions from the company's Upstream segment, attributed to improved Bitumen prices and stronger margins.
Revenues of $9.8 billion missed the Zacks Consensus Estimate of $10.5 billion. This underperformance was caused by the weaker performance of IMO’s Chemical segment. However, the top line increased from the year-ago quarter’s level of $8.8 billion.
Imperial returned $321 million to its shareholders through dividends in the second quarter. Additionally, IMO has renewed its share buyback program, allowing the company to purchase up to 5% of its outstanding shares in the next year.
Calgary-based integrated oil and gas company declared a quarterly dividend of 60 cents per share payable on Oct 1, 2024, to its shareholders of record at the close of business on Sep 4.
Imperial Oil Limited Price, Consensus and EPS Surprise
Upstream: Revenues of C$4.6 billion increased from the prior-year level of C$3.6 billion. The figure also beat our projection of C$4.3 billion.
The segment reported a net income of C$799 million compared with C$384 million in the year-ago quarter. Additionally, the figure beat our expectation of C$497.9 million.
Net production volume came in at 340,000 barrels of oil equivalent per day (Boe/d) compared with 320,000 Boe/d in the year-ago quarter.
Total oil and NGL output amounted to 399,000 barrels per day (bpd) compared with 357,000 bpd in the second quarter of 2023.
Net oil and NGL output from Kearl and Cold Lake totaled 167,000 bpd and 109,000 bpd, respectively. Syncrude output averaged 54,000 bpd, which decreased from the year-ago quarter’s level of 61,000 bpd.
Net natural gas production came in at 29 million cubic feet per day (Mcf/d), lower than 32 Mcf/d in the comparable quarter of 2023.
Bitumen price realizations totaled C$83.02 per barrel compared with C$68.64 in the year-ago period. IMO received an average realized price of C$111.56 per barrel for synthetic oil compared with the prior-year quarter’s C$100.92.
For conventional crude oil, it received C$64.55 per barrel compared with C$64.33 in the corresponding period of 2023.
The price of NGL decreased from C$2.36 to 77 Canadian cents per thousand cubic feet year over year.
Downstream: Revenues of C$14.6 billion were up from C$12.7 billion in the second quarter of 2023. In addition, the figure marginally beat our expectation of C$14.4 billion.
Net income totaled C$294 million compared with C$250 million in the year-ago period. However, the figure missed our expectation of C$468.7 million.
The refinery throughput in the second quarter averaged 387,000 bpd, lower than the prior-year quarter’s level of 388,000 bpd. The capacity utilization of 89% was slightly lower than the year-ago level of 90%.
Chemical: Revenues of C$418 million declined from C$437 million in the second quarter of 2023. The figure also missed our projection of C$421.9 million.
Net income for this segment was recorded at C$65 million, down from the year-ago quarter’s level of C$71 million. However, the figure beat our prediction of C$27 million.
Total Costs & Capex
Total expenses of C$13.4 billion increased from the year-ago quarter’s C$11.8 billion. Additionally, the figure was above our projection of C$12.6 billion.
In the quarter under review, IMO’s capital and exploration expenditures totaled C$462 million, down from the year-ago quarter’s C$493 million.
Financial Performance
Cash flow from operating activities came in at C$1.6 billion compared with C$885 million in the year-ago quarter. As of Jun 30, Imperial Oil had cash and cash equivalents of C$2 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 14.3%.
Outlook
IMO already disclosed a capital spending budget of C$1.7 billion for 2024. Within its Upstream segment, production is anticipated in the range of 420,000-442,000 gross oil-equivalent barrels per day. Meanwhile, throughput in the Downstream segment is projected in the range of 385,000-400,000 barrels per day, accompanied by a capacity utilization rate of 89-92% throughout 2024.
While it's early in the earnings season, there have been a few key energy releases thus far. Let’s glance through a couple of them.
Liberty Energy (LBRT - Free Report) , the Denver-CO-based oil and gas equipment company, announced second-quarter 2024 adjusted earnings of 61 cents per share, which marginally beat the Zacks Consensus Estimate of 60 cents. However, LBRT’s bottom line underperformed the year-ago quarter’s reported figure of 87 cents due to a year-over-year increase in costs and expenses.
Ahead of the earnings release, Liberty’s board of directors announced a cash dividend of 7 cents per common share, payable on Sep 20, 2024, to its stockholders of record as of Sep 6. As part of its shareholder return policy, LBRT repurchased the company’s shares worth $30 million at an average price of $20.39 per share in the reported quarter. Liberty returned $41 million to its shareholders through share repurchases and cash dividends.
Houston, TX-based Halliburton Company (HAL - Free Report) , an oil and gas equipment and services provider, reported second-quarter 2024 adjusted net income per share of 80 cents, in line with the Zacks Consensus Estimate and above the year-ago quarter profit of 77 cents (adjusted). The robust numbers reflect strength in the international markets.
As of Jun 30, 2024, the company reported $2.1 billion in cash and cash equivalents and $7.6 billion in long-term debt, representing a debt-to-capitalization ratio of 43.2. HAL also bought back $250 million worth of its stock in the April-June period. The company generated $1.1 billion of cash flow from operations in the second quarter, leading to a free cash flow of $793 million.
Meanwhile, energy infrastructure provider Kinder Morgan (KMI - Free Report) reported second-quarter adjusted earnings per share of 26 cents, in line with the Zacks Consensus Estimate. The bottom line was favorably impacted by strong financial contributions from the Natural Gas Pipelines, Products Pipelines and Terminals business segments. Moreover, KMI’s second-quarter discounted cash flow (DCF) was $1.10 billion, up from $1.07 billion a year ago.
As of Jun 30, 2024, Kinder Morgan reported $98 million in cash and cash equivalents. Its long-term debt amounted to $28.5 billion at the quarter-end. For the full year 2024, KMI anticipates a DCF of $5 billion ($2.26 per share) and an adjusted EBITDA of $8.16 billion, each indicating 8% growth from the previous year’s reported figures.
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Imperial (IMO) Q2 Earnings Rise Y/Y, Sales Lag Estimates
Imperial Oil Limited (IMO - Free Report) reported second-quarter 2024 adjusted earnings per share of $1.54, higher than the year-ago quarter’s level of 86 cents. This increase was primarily driven by higher contributions from the company's Upstream segment, attributed to improved Bitumen prices and stronger margins.
Revenues of $9.8 billion missed the Zacks Consensus Estimate of $10.5 billion. This underperformance was caused by the weaker performance of IMO’s Chemical segment. However, the top line increased from the year-ago quarter’s level of $8.8 billion.
Imperial returned $321 million to its shareholders through dividends in the second quarter. Additionally, IMO has renewed its share buyback program, allowing the company to purchase up to 5% of its outstanding shares in the next year.
Calgary-based integrated oil and gas company declared a quarterly dividend of 60 cents per share payable on Oct 1, 2024, to its shareholders of record at the close of business on Sep 4.
Imperial Oil Limited Price, Consensus and EPS Surprise
Imperial Oil Limited price-consensus-eps-surprise-chart | Imperial Oil Limited Quote
Segmental Information
Upstream: Revenues of C$4.6 billion increased from the prior-year level of C$3.6 billion. The figure also beat our projection of C$4.3 billion.
The segment reported a net income of C$799 million compared with C$384 million in the year-ago quarter. Additionally, the figure beat our expectation of C$497.9 million.
Net production volume came in at 340,000 barrels of oil equivalent per day (Boe/d) compared with 320,000 Boe/d in the year-ago quarter.
Total oil and NGL output amounted to 399,000 barrels per day (bpd) compared with 357,000 bpd in the second quarter of 2023.
Net oil and NGL output from Kearl and Cold Lake totaled 167,000 bpd and 109,000 bpd, respectively. Syncrude output averaged 54,000 bpd, which decreased from the year-ago quarter’s level of 61,000 bpd.
Net natural gas production came in at 29 million cubic feet per day (Mcf/d), lower than 32 Mcf/d in the comparable quarter of 2023.
Bitumen price realizations totaled C$83.02 per barrel compared with C$68.64 in the year-ago period. IMO received an average realized price of C$111.56 per barrel for synthetic oil compared with the prior-year quarter’s C$100.92.
For conventional crude oil, it received C$64.55 per barrel compared with C$64.33 in the corresponding period of 2023.
The price of NGL decreased from C$2.36 to 77 Canadian cents per thousand cubic feet year over year.
Downstream: Revenues of C$14.6 billion were up from C$12.7 billion in the second quarter of 2023. In addition, the figure marginally beat our expectation of C$14.4 billion.
Net income totaled C$294 million compared with C$250 million in the year-ago period. However, the figure missed our expectation of C$468.7 million.
The refinery throughput in the second quarter averaged 387,000 bpd, lower than the prior-year quarter’s level of 388,000 bpd. The capacity utilization of 89% was slightly lower than the year-ago level of 90%.
Chemical: Revenues of C$418 million declined from C$437 million in the second quarter of 2023. The figure also missed our projection of C$421.9 million.
Net income for this segment was recorded at C$65 million, down from the year-ago quarter’s level of C$71 million. However, the figure beat our prediction of C$27 million.
Total Costs & Capex
Total expenses of C$13.4 billion increased from the year-ago quarter’s C$11.8 billion. Additionally, the figure was above our projection of C$12.6 billion.
In the quarter under review, IMO’s capital and exploration expenditures totaled C$462 million, down from the year-ago quarter’s C$493 million.
Financial Performance
Cash flow from operating activities came in at C$1.6 billion compared with C$885 million in the year-ago quarter. As of Jun 30, Imperial Oil had cash and cash equivalents of C$2 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 14.3%.
Outlook
IMO already disclosed a capital spending budget of C$1.7 billion for 2024. Within its Upstream segment, production is anticipated in the range of 420,000-442,000 gross oil-equivalent barrels per day. Meanwhile, throughput in the Downstream segment is projected in the range of 385,000-400,000 barrels per day, accompanied by a capacity utilization rate of 89-92% throughout 2024.
IMO currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Energy Earnings So Far
While it's early in the earnings season, there have been a few key energy releases thus far. Let’s glance through a couple of them.
Liberty Energy (LBRT - Free Report) , the Denver-CO-based oil and gas equipment company, announced second-quarter 2024 adjusted earnings of 61 cents per share, which marginally beat the Zacks Consensus Estimate of 60 cents. However, LBRT’s bottom line underperformed the year-ago quarter’s reported figure of 87 cents due to a year-over-year increase in costs and expenses.
Ahead of the earnings release, Liberty’s board of directors announced a cash dividend of 7 cents per common share, payable on Sep 20, 2024, to its stockholders of record as of Sep 6. As part of its shareholder return policy, LBRT repurchased the company’s shares worth $30 million at an average price of $20.39 per share in the reported quarter. Liberty returned $41 million to its shareholders through share repurchases and cash dividends.
Houston, TX-based Halliburton Company (HAL - Free Report) , an oil and gas equipment and services provider, reported second-quarter 2024 adjusted net income per share of 80 cents, in line with the Zacks Consensus Estimate and above the year-ago quarter profit of 77 cents (adjusted). The robust numbers reflect strength in the international markets.
As of Jun 30, 2024, the company reported $2.1 billion in cash and cash equivalents and $7.6 billion in long-term debt, representing a debt-to-capitalization ratio of 43.2. HAL also bought back $250 million worth of its stock in the April-June period. The company generated $1.1 billion of cash flow from operations in the second quarter, leading to a free cash flow of $793 million.
Meanwhile, energy infrastructure provider Kinder Morgan (KMI - Free Report) reported second-quarter adjusted earnings per share of 26 cents, in line with the Zacks Consensus Estimate. The bottom line was favorably impacted by strong financial contributions from the Natural Gas Pipelines, Products Pipelines and Terminals business segments. Moreover, KMI’s second-quarter discounted cash flow (DCF) was $1.10 billion, up from $1.07 billion a year ago.
As of Jun 30, 2024, Kinder Morgan reported $98 million in cash and cash equivalents. Its long-term debt amounted to $28.5 billion at the quarter-end. For the full year 2024, KMI anticipates a DCF of $5 billion ($2.26 per share) and an adjusted EBITDA of $8.16 billion, each indicating 8% growth from the previous year’s reported figures.