On Mar 17, 2014, independent energy firm
Imperial Oil Ltd.
) 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
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
HELMERICH&PAYNE (HP): Free Stock Analysis
IMPERIAL OIL LT (IMO): Free Stock Analysis
PATTERSON-UTI (PTEN): Free Stock Analysis
RANGE RESOURCES (RRC): Free Stock Analysis
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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
Range Resources Corp.
Patterson-UTI Energy Inc.
Helmerich & Payne Inc.
). All the stocks sport a Zacks Rank #1 (Strong Buy).