Imperial Oil to Vend C$855M Assets - Analyst Blog

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On Mar 17, 2014, independent energy firm Imperial Oil Ltd. ( IMO ) entered into a deal with Whitecap Resources Inc, a Calgary-based energy company.

Per the agreement, Imperial Oil will divest part of its oil and gas producing properties situated in Western Canada's Rocky Mountain House and Boundary Lake, Cynthia. The deal will likely close in May this year and Imperial Oil will receive roughly C$855 million from the sale.

Imperial Oil revealed that last year the British Columbia and Alberta assets generated approximately 15,000 oil-equivalent barrels per day.

The news was out in the press release of the company on Monday before the market opened. Imperial Oil closed at US$46.25 per share, marginally higher than the closing price on the previous trading day.


Imperial Oil is primarily involved in exploration and production of oil and natural gas. The company is also the largest refiner in Canada. The three business segments of the company are Upstream, Downstream, and Chemical.

On Jan 30, 2014, Imperial Oil reported earnings of US$1.11 per share, which surpassed the Zacks Consensus Estimate of US$1.01. Significant downstream activities aided the results. Moreover, the company invested approximately C$7,755.0 million in upstream operations in 2013, significantly higher than the amount invested in 2012.  

Imperial Oil currently holds a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, one can consider better-ranked players in the energy sector like Range Resources Corp. ( RRC ), Patterson-UTI Energy Inc. ( PTEN ) and Helmerich & Payne Inc. ( HP ). All the stocks sport a Zacks Rank #1 (Strong Buy).



HELMERICH&PAYNE (HP): Free Stock Analysis Report

IMPERIAL OIL LT (IMO): Free Stock Analysis Report

PATTERSON-UTI (PTEN): Free Stock Analysis Report

RANGE RESOURCES (RRC): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Business , Stocks

Referenced Stocks: HP , IMO , PTEN , RRC

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