Imperial Oil announces first-quarter financial and operating results



    CALGARY, April 30 /CNW/ - Imperial Oil today announced net income for the
first quarter of 2009 of $289 million or $0.33 per share, compared with $681
million or $0.75 per share for the same period last year.
    Earnings in the first quarter were lower than in the same quarter in
2008, as lower Upstream and Chemical earnings were partially offset by higher
Downstream earnings. In the Upstream, earnings decreased primarily due to
lower crude oil and natural gas prices, partially offset by the impact of
lower royalty costs due to lower commodity prices and a lower Canadian dollar.
Higher Downstream earnings were primarily due to stronger margins and
increased refinery throughput and utilization. Chemical earnings were
negatively impacted by the slow economy, with lower overall margins and sales
volumes. Higher share-based compensation costs also contributed to lower
earnings.
    During the first quarter, operating revenues were $4,653 million, versus
$7,231 million for the same period of 2008. Capital and exploration
expenditures were $494 million, compared with $291 million in the first
quarter of 2008, and Imperial repurchased about 10.5 million shares for $429
million. At March 31, the company's balance of cash was $755 million versus
$1,974 million at the end of 2008.
    "Sharply lower oil and natural gas prices as a result of the global
economic downturn produced lower earnings for the quarter, compared to the
same period last year. While Downstream earnings were higher, the significant
decline in commodity prices reduced our earnings overall," said Bruce March,
chairman, president and chief executive officer of Imperial Oil. "Imperial is
well-positioned to weather this economic downturn with its strong balance
sheet, minimal debt, and long-term disciplined approach. Although earnings are
lower, our plans are to continue our long-term strategy of investing through
the business cycle and advancing our portfolio of company growth projects."
    Imperial Oil is one of Canada's largest corporations and a leading member
of the country's petroleum industry. It is one of the country's largest
producers of crude oil and natural gas, and is the largest petroleum refiner
and marketer with a coast-to-coast supply network that includes about 1,900
retail service stations.

    Highlights/Items of interest

    
    Proved reserves increased by almost 50 percent to 2.3 billion
    oil-equivalent barrels
    

    Imperial increased its total year-end proved reserves by almost 50
percent from the previous year. This was largely due to reserves additions
from Phase 1 of the Kearl oil sands project, which totaled about 800 million
oil-equivalent barrels. At the end of 2008, the company's proved reserves were
more than 2.3 billion oil-equivalent barrels.

    Horn River update

    A winter drilling program was successfully completed in the Horn River
Basin, a promising shale gas play in northeast British Columbia. Evaluation of
drilling results is currently underway.

    Aboriginal relations strategy enhanced

    Imperial enhanced its aboriginal relations strategy - a framework of
guiding principles and best practices that the company will follow in the
areas of consultation, workforce and business development, as well as
community relations. This work builds on Imperial's long history of working
effectively with Aboriginal communities and is important to the company's
plans for developing its portfolio of growth projects.

    Imperial's 2008 United Way-Centraide campaigns raises $3.2 million

    Imperial Oil, in partnership with its employees and retirees, contributed
nearly $3.2 million to the 2008 United Way-Centraide campaign across Canada.
This support reinforces Imperial's longtime belief that United Way services
play a crucial role in improving the lives of Canadians in communities across
the country.

    
                            IMPERIAL OIL LIMITED

    -------------------------------------------------------------------------
    FINANCIAL HIGHLIGHTS (unaudited)
    -------------------------------------------------------------------------

                                                               Three months
                                                                to March 31
                                                              2009      2008
                                                            -----------------
    Net income (U.S. GAAP, millions of dollars)
      Upstream                                                 142       650
      Downstream                                               202        30
      Chemical                                                   3        24
      Corporate and other                                      (58)      (23)
                                                            -----------------
    Net income (U.S. GAAP)                                     289       681
                                                            -----------------

    Cash flow from operating activities                       (296)      289
    Capital and exploration expenditures                       494       291

    Per-share information (dollars)
      Net income - basic                                      0.34      0.76
      Net income - diluted                                    0.33      0.75
      Dividends                                               0.10      0.09

      Share prices - close at March 31
      Toronto Stock Exchange (Canadian dollars)              45.80     53.80
      NYSE Amex (U.S. dollars)                               36.05     52.26


    -------------------------------------------------------------------------
    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
    AND RESULTS OF OPERATIONS
    -------------------------------------------------------------------------

    OPERATING RESULTS
    -----------------
    

    The company's net income for the first quarter of 2009 was $289 million
or $0.33 a share on a diluted basis, compared with $681 million or $0.75 a
share for the same period last year.
    Earnings in the first quarter were lower than the same quarter in 2008,
as lower Upstream and Chemical earnings were partially offset by higher
Downstream earnings. In the Upstream, earnings decreased primarily due to
lower crude oil and natural gas commodity prices of about $940 million,
partially offset by lower royalty costs due to lower commodity prices of about
$270 million and the impact of a lower Canadian dollar of about $250 million.
Higher Downstream earnings were primarily due to stronger margins of about $90
million and increased refinery throughput and utilization of about $60
million. Chemical earnings were negatively impacted by the slow economy in the
first quarter with lower overall margins and lower sales volumes. Higher
share-based compensation costs also contributed to lower earnings.

    Upstream

    Net income in the first quarter was $142 million versus $650 million in
the same period of 2008. Earnings decreased primarily due to lower crude oil
and natural gas commodity prices of about $940 million. Earnings were also
negatively impacted by higher production costs, Syncrude maintenance costs and
exploration expenses totaling about $70 million. These factors were partially
offset by lower royalty costs due to lower commodity prices of about $270
million and the impact of a lower Canadian dollar of about $250 million.
    The average price of Brent crude oil, a common benchmark for world oil
markets, was $44.44 a barrel, in U.S. dollars, in the first quarter, down
about 54 percent from the same quarter last year. The company's realizations
on sales of Canadian conventional crude oil mirrored the same trend as world
prices, decreasing about 50 percent in the first quarter compared to the same
period last year.
    Prices for Canadian heavy oil, including the company's heavy oil from
Cold Lake, moved generally in line with that of the lighter crude oil. The
price of Bow River, a benchmark Canadian heavy oil, fell by about 44 percent
in the first quarter compared to the same quarter last year.
    Gross production of Cold Lake heavy oil averaged 148 thousand barrels a
day during the first quarter, versus 154 thousand barrels in the same quarter
last year. Lower production volumes in the first quarter were due to the
cyclic nature of production at Cold Lake and increased maintenance activities.
    The company's share of Syncrude's gross production in the first quarter
was 68 thousand barrels a day compared with 67 thousand barrels during the
same period a year ago. Volumes in the first quarter were slightly higher than
the same period in 2008, as lower maintenance activities were largely offset
by bitumen production constraints and acceleration of planned maintenance
activities.
    In the first quarter, gross production of conventional crude oil averaged
26 thousand barrels a day, down from 27 thousand barrels a day in the same
period last year, due to natural reservoir decline.
    Gross production of natural gas during the first quarter of 2009
decreased to 307 million cubic feet a day from 325 million cubic feet in the
same period last year as a result of natural reservoir decline.

    Downstream

    Net income was $202 million in the first quarter of 2009, compared with
$30 million in the same period a year ago. Earnings were higher in the quarter
mainly due to stronger downstream margins of about $90 million, increased
refinery throughput and utilization of about $60 million and the impact of a
lower Canadian dollar of about $45 million. Partially offsetting these factors
were lower industry sales volumes due to the slowdown in the economy of about
$25 million.

    Chemical

    Net income was $3 million in the first quarter, compared with $24 million
in the same quarter last year. Chemical earnings were negatively impacted by
the slow economy in the first quarter with lower margins for polyethylene and
aromatic products and lower sales volumes for polyethylene and intermediate
products.

    Corporate and other

    Net income effects were negative $58 million in the first quarter,
compared with negative $23 million in the same period of 2008. Unfavourable
earnings effects were primarily due to higher share-based compensation
charges.

    
    LIQUIDITY AND CAPITAL RE

SOURCES ------------------------------- Cash flow used in operating activities was $296 million during the first quarter of 2009, compared with cash flow generated from operating activities of $289 million in the same period last year. Lower cash flow was primarily driven by lower earnings and timing of scheduled income tax payments. These factors were partially offset by lower seasonal inventory builds. The net effects of lower commodity prices on receivable and payable balances did not have a material impact on cash flow. Funding contributions of $161 million to the company's registered pension plan in the first quarter were at a slightly higher level than the same period last year. Investing activities used net cash of $407 million in the first quarter, an increase of $169 million from the corresponding period in 2008. Additions to property, plant and equipment were $411 million in the first quarter, compared with $251 million during the same quarter 2008. For the Upstream segment, expenditures during the quarter were primarily for advancing the Kearl oil sands project and development drilling at Cold Lake. Other investments included facilities improvements at Syncrude, exploration drilling at Horn River and development drilling at conventional fields in Western Canada. The Downstream segment's capital expenditures were focused mainly on refinery projects to increase sulphur recovery to further reduce sulphur dioxide emissions, upgrade water management systems as well as enhance feedstock flexibility and energy efficiency. During the first quarter of 2009, the company repurchased about 10.5 million shares for $429 million. Under the current share repurchase program, which began on June 25, 2008, the company has purchased about 34 million shares, including shares purchased from ExxonMobil. Cash dividends of $86 million were paid in the first quarter of 2009 compared with dividends of $82 million in the first quarter of 2008. Per-share dividends declared in the first quarter were $0.10, up from $0.09 in 2008. The above factors led to a decrease in the company's balance of cash to $755 million at March 31, 2009, from $1,974 million at the end of 2008. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS ----------------------------------------------------------- Information about market risks for the three months ended March 31, 2009 does not differ materially from that discussed on page 33 in the company's annual report to shareholders for the year ended December 31, 2008, except for the following: ------------------------------------------------------------------------- Earnings sensitivity (a) millions of dollars after tax ------------------------------------------------------------------------- Eight cents decrease (increase) in the value of the Canadian dollar versus the U.S. dollar + (-) 400 ------------------------------------------------------------------------- The sensitivity of net income to changes in the Canadian dollar versus the U.S. dollar increased from 2008 year-end by about $12 million (after tax) for each one-cent difference. This was primarily due to the impacts of increased crude oil prices and the narrowing price spread between light crude oil and Cold Lake heavy oil, partially offset by the impact of lower industry refining margins. (a) The amount quoted to illustrate the impact of the sensitivity represents a change of about 10 percent in the value of the commodity at the end of the first quarter 2009. The sensitivity calculation shows the impact on annual net income that results from a change in one factor, after tax and royalties and holding all other factors constant. While the sensitivity is applicable under current conditions, it may not apply proportionately to larger fluctuations. ------------------------------------------------------------------------- This report may contain forward-looking information. Actual results could differ materially due to market conditions, changes in law or government policy, changes in operating conditions and costs, changes in project schedules, operating performance, demand for oil and gas, commercial negotiations or other technical and economic factors. ------------------------------------------------------------------------- IMPERIAL OIL LIMITED ------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF INCOME (U.S. GAAP, unaudited) Three months to March 31 millions of Canadian dollars 2009 2008 ------------------------------------------------------------------------- REVENUES AND OTHER INCOME Operating revenues(a)(b) 4,653 7,231 Investment and other income(4) 17 32 ----------------- TOTAL REVENUES AND OTHER INCOME 4,670 7,263 ----------------- EXPENSES Exploration 83 40 Purchases of crude oil and products(c) 2,320 4,496 Production and manufacturing (5)(d) 1,030 977 Selling and general(5) 330 295 Federal excise tax(a) 306 312 Depreciation and depletion 197 181 Financing costs 2 (3) ----------------- TOTAL EXPENSES 4,268 6,298 ----------------- INCOME BEFORE INCOME TAXES 402 965 INCOME TAXES 113 284 ----------------- NET INCOME(3) 289 681 ----------------- NET INCOME PER COMMON SHARE - BASIC (dollars)(7) 0.34 0.76 NET INCOME PER COMMON SHARE - DILUTED (dollars)(7) 0.33 0.75 DIVIDENDS PER COMMON SHARE (dollars) 0.10 0.09 (a) Federal excise tax included in operating revenues 306 312 (b) Amounts from related parties included in operating revenues 314 591 (c) Amounts to related parties included in purchases of crude oil and products 697 1,259 (d) Amounts to related parties included in production and manufacturing expenses 74 45 The notes to the financial statements are an integral part of these financial statements. ------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEET (U.S. GAAP, unaudited) As at As at Mar.31 Dec.31 millions of Canadian dollars 2009 2008 ------------------------------------------------------------------------- ASSETS Current assets Cash 755 1,974 Accounts receivable, less estimated doubtful accounts 1,578 1,455 Inventories of crude oil and products 890 673 Materials, supplies and prepaid expenses 260 180 Deferred income tax assets 367 361 ----------------- Total current assets 3,850 4,643 Long-term receivables, investments and other long-term assets 915 881 Property, plant and equipment, 24,538 24,165 less accumulated depreciation and depletion 13,075 12,917 ----------------- Property, plant and equipment, net 11,463 11,248 Goodwill 204 204 Other intangible assets, net 58 59 ----------------- TOTAL ASSETS 16,490 17,035 ----------------- LIABILITIES Current liabilities Notes and loans payable 109 109 Accounts payable and accrued liabilities(6)(a) 2,829 2,542 Income taxes payable 938 1,498 ----------------- Total current liabilities 3,876 4,149 Capitalized lease obligations 34 34 Other long-term obligations(6) 2,185 2,298 Deferred income tax liabilities 1,533 1,489 ----------------- TOTAL LIABILITIES 7,628 7,970 SHAREHOLDERS' EQUITY Common shares at stated value(7)(b) 1,509 1,528 Earnings reinvested 8,277 8,484 Accumulated other comprehensive income(8) (924) (947) ----------------- TOTAL SHAREHOLDERS' EQUITY 8,862 9,065 ----------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 16,490 17,035 ----------------- (a) Accounts payable and accrued liabilities include amounts to related parties of $147 million (2008 - $127 million). (b) Number of common shares outstanding was 849 million (2008 - 859 million). The notes to the financial statements are an integral part of these financial statements. ------------------------------------------------------------------------- Approved by the directors April 29, 2009 Chairman, president and Senior vice-president, chief executive officer finance and administration, and treasurer ------------------------------------------------------------------------- ------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF CASH FLOWS (U.S. GAAP, unaudited) Three months inflow/(outflow) to March 31 millions of Canadian dollars 2009 2008 ------------------------------------------------------------------------- OPERATING ACTIVITIES Net income 289 681 Adjustment for non-cash items: Depreciation and depletion 197 181 (Gain)/loss on asset sales(4) (1) (11) Deferred income taxes and other 28 (65) Changes in operating assets and liabilities: Accounts receivable (125) (398) Inventories and prepaids (297) (572) Income taxes payable (560) (11) Accounts payable 288 584 All other items - net (a) (115) (100) ----------------- CASH FROM (USED IN) OPERATING ACTIVITIES (296) 289 ----------------- INVESTING ACTIVITIES Additions to property, plant and equipment and intangibles (411) (251) Proceeds from asset sales 2 13 Loans to equity company 2 - ----------------- CASH FROM (USED IN) INVESTING ACTIVITIES (407) (238) ----------------- FINANCING ACTIVITIES Reduction in capitalized lease obligations (1) (1) Issuance of common shares under stock option plan - 4 Common shares purchased(7) (429) (590) Dividends paid (86) (82) ----------------- CASH FROM (USED IN) FINANCING ACTIVITIES (516) (669) ----------------- INCREASE (DECREASE) IN CASH (1,219) (618) CASH AT BEGINNING OF PERIOD 1,974 1,208 ----------------- CASH AT END OF PERIOD 755 590 ----------------- (a) Includes contribution to registered pension plans (161) (147) The notes to the financial statements are an integral part of these financial statements. IMPERIAL OIL LIMITED ------------------------------------------------------------------------- NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited) ------------------------------------------------------------------------- 1. Basis of financial statement presentation These unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles of the United States of America and follow the same accounting policies and methods of computation as, and should be read in conjunction with, the most recent annual consolidated financial statements. In the opinion of the management, the information furnished herein reflects all known accruals and adjustments necessary for a fair presentation of the financial position of the company as at March 31, 2009, and December 31, 2008, and the results of operations and changes in cash flows for the three months ending March 31, 2009 and 2008. All such adjustments are of a normal recurring nature. The company's exploration and production activities are accounted for under the "successful efforts" method. Certain reclassifications to the prior year have been made to conform to the 2009 presentation. The results for the three months ended March 31, 2009, are not necessarily indicative of the operations to be expected for the full year. All amounts are in Canadian dollars unless otherwise indicated. 2. Accounting change for fair value measurements Effective January 1, 2009, the company adopted the Financial Accounting Standards Board's (FASB) Statement No. 157 (SFAS 157), "Fair Value Measurements" for nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis. SFAS 157 defines fair value, establishes a framework for measuring fair value when an entity is required to use a fair value measure for recognition or disclosure purposes and expands the disclosures about fair value measures. The adoption did not have a material impact on the company's financial statements. The company previously adopted SFAS 157 for financial assets and liabilities that are measured at fair value and for nonfinancial assets and liabilities that are measured at fair value on a recurring basis. 3. Business Segments Three months to March 31 Upstream Downstream Chemical millions of dollars 2009 2008 2009 2008 2009 2008 ------------------------------------------------------------------------- REVENUES AND OTHER INCOME External sales(a) 760 1,449 3,685 5,429 208 353 Intersegment sales 656 1,292 390 779 64 101 Investment and other income 4 4 8 14 - 1 ----------------------------------------------- 1,420 2,745 4,083 6,222 272 455 ----------------------------------------------- EXPENSES Exploration(b) 83 40 - - - - Purchases of crude oil and products 364 1,085 2,867 5,234 199 349 Production and manufacturing 646 581 336 346 48 50 Selling and general 1 2 233 233 19 18 Federal excise tax - - 306 312 - - Depreciation and depletion 136 117 56 59 3 3 Financing costs - - 1 (4) - - ----------------------------------------------- TOTAL EXPENSES 1,230 1,825 3,799 6,180 269 420 ----------------------------------------------- INCOME BEFORE INCOME TAXES 190 920 284 42 3 35 INCOME TAXES 48 270 82 12 - 11 ----------------------------------------------- NET INCOME 142 650 202 30 3 24 ----------------------------------------------- Export sales to the United States 405 736 237 225 109 221 Cash flows from (used in) operating activities (230) 478 (46) (174) (14) (8) CAPEX(b) 447 255 42 32 4 2 Total assets as at March 31 9,154 8,555 6,326 7,539 420 516 Capital employed as at March 31 5,387 4,806 3,953 3,475 189 248 Corporate Three months to March 31 and Other Eliminations Consolidated millions of dollars 2009 2008 2009 2008 2009 2008 ------------------------------------------------------------------------- REVENUES AND OTHER INCOME External sales(a) - - - - 4,653 7,231 Intersegment sales - - (1,110) (2,172) - - Investment and other income 5 13 - - 17 32 ----------------------------------------------- 5 13 (1,110) (2,172) 4,670 7,263 ----------------------------------------------- EXPENSES Exploration(b) - - - - 83 40 Purchases of crude oil and products - - (1,110) (2,172) 2,320 4,496 Production and manufacturing - - - - 1,030 977 Selling and general 77 42 - - 330 295 Federal excise tax - - - - 306 312 Depreciation and depletion 2 2 - - 197 181 Financing costs 1 1 - - 2 (3) ----------------------------------------------- TOTAL EXPENSES 80 45 (1,110) (2,172) 4,268 6,298 ----------------------------------------------- INCOME BEFORE INCOME TAXES (75) (32) - - 402 965 INCOME TAXES (17) (9) - - 113 284 ----------------------------------------------- NET INCOME (58) (23) - - 289 681 ----------------------------------------------- Export sales to the United States - - - - 751 1,182 Cash flows from (used in) operating activities (6) (7) - - (296) 289 CAPEX(b) 1 2 - - 494 291 Total assets as at March 31 833 629 (243) (434) 16,490 16,805 Capital employed as at March 31 (484) (377) - - 9,045 8,152 (a) Includes crude oil sales made by Downstream in order to optimize refining operations. (b) Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant, equipment and intangibles and additions to capital leases. 4. Investment and other income Investment and other income includes gains and losses on asset sales as follows: Three months to March 31 millions of dollars 2009 2008 ------------------------------------------------------------------------- Proceeds from asset sales 2 13 Book value of assets sold 1 2 ----------------- Gain/(loss) on asset sales, before tax 1 11 ----------------- Gain/(loss) on asset sales, after tax 1 9 ----------------- 5. Employee retirement benefits The components of net benefit cost included in production and manufacturing and selling and general expenses in the consolidated statement of income are as follows: Three months to March 31 millions of dollars 2009 2008 ------------------------------------------------------------------------- Pension benefits: Current service cost 26 24 Interest cost 73 66 Expected return on plan assets (68) (82) Amortization of prior service cost 4 5 Recognized actuarial loss 28 20 ----------------- Net benefit cost 63 33 ----------------- Other post-retirement benefits: Current service cost 1 1 Interest cost 7 6 Recognized actuarial loss - 1 ----------------- Net benefit cost 8 8 ----------------- 6. Other long-term obligations As at As at Mar.31 Dec. 31 millions of dollars 2009 2008 ------------------------------------------------------------------------- Employee retirement benefits(a) 1,013 1,151 Asset retirement obligations and other environmental liabilities(b) 713 728 Share-based incentive compensation liabilities 247 203 Other obligations 212 216 ----------------- Total other long-term obligations 2,185 2,298 ----------------- (a) Total recorded employee retirement benefits obligations also include $45 million in current liabilities (December 31, 2008 - $45 million). (b) Total asset retirement obligations and other environmental liabilities also include $84 million in current liabilities (December 31, 2008 - $83 million). 7. Common shares As at As at Mar.31 Dec. 31 thousands of shares 2009 2008 ------------------------------------------------------------------------- Authorized 1,100,000 1,100,000 Common shares outstanding 848,882 859,402 From 1995 through 2007, the company purchased shares under thirteen 12-month normal course issuer bid share repurchase programs, as well as an auction tender. On June 25, 2008, another 12-month normal course issuer bid program was implemented with an allowable purchase of 44.2 million shares (five percent of the total on June 16, 2008), less shares purchased from Exxon Mobil Corporation and shares purchased by the employee savings plan and company pension fund. The results of these activities are as shown below: millions of Year Shares Dollars ------------------------------------------------------------------------- 1995 - 2007 846.1 12,811 2008 - First quarter 11.0 590 - Full year 44.3 2,210 2009 - First quarter 10.5 429 Cumulative purchases to date 900.9 15,450 Exxon Mobil Corporation's participation in the above share repurchase maintained its ownership interest in Imperial at 69.6 percent. The excess of the purchase cost over the stated value of shares purchased has been recorded as a distribution of earnings reinvested. The following table provides the calculation of net income per common share: Three months to March 31 2009 2008 ------------------------------------------------------------------------- Net income per common share - basic Net income (millions of dollars) 289 681 Weighted average number of common shares outstanding (millions of shares) 856.0 899.7 Net income per common share (dollars) 0.34 0.76 Net income per common share - diluted Net income (millions of dollars) 289 681 Weighted average number of common shares outstanding (millions of shares) 856.0 899.7 Effect of employee share-based awards (millions of shares) 6.7 6.3 ----------------- Weighted average number of common shares outstanding, assuming dilution (millions of shares) 862.7 906.0 Net income per common share (dollars) 0.33 0.75 8. Comprehensive income Three months to March 31 millions of dollars 2009 2008 ------------------------------------------------------------------------- Net income 289 681 Amortization of post retirement benefit liability adjustment included in net periodic benefit costs 23 19 ----------------- Other comprehensive income (net of income taxes) 23 19 ----------------- Total comprehensive income 312 700 ----------------- ------------------------------------------------------------------------- OPERATING STATISTICS (unaudited) Three months to March 31 2009 2008 ------------------------------------------------------------------------- GROSS CRUDE OIL AND NGL PRODUCTION (thousands of barrels a day) Cold Lake 148 154 Syncrude 68 67 Conventional 26 27 ----------------- Total crude oil production 242 248 Natural gas liquids (NGLs) available for sale 9 12 ----------------- Total crude oil and NGL production 251 260 ----------------- NET CRUDE OIL AND NGL PRODUCTION (thousands of barrels a day) Cold Lake 141 131 Syncrude 70 57 Conventional 23 20 ----------------- Total crude oil production 234 208 Natural gas liquids (NGLs) available for sale 6 8 ----------------- Total crude oil and NGL production 240 216 ----------------- COLD LAKE BLEND SALES (thousands of barrels a day) 198 204 NGL SALES (thousands of barrels a day) 12 17 NATURAL GAS (millions of cubic feet a day) Production (gross) 307 325 Production (net) 262 259 Sales 277 294 AVERAGE REALIZATIONS AND PRICES (Canadian dollars) Conventional crude oil realizations (a barrel) 46.61 93.27 NGL realizations (a barrel) 41.20 58.67 Natural gas realizations (a thousand cubic feet) 5.82 8.00 Par crude oil price at Edmonton (a barrel) 51.23 98.58 Heavy crude oil at Hardisty (Bow River, a barrel) 43.81 77.64 TOTAL REFINERY THROUGHPUT (thousands of barrels a day) 460 425 REFINERY CAPACITY UTILIZATION (percent) 92 85 PETROLEUM PRODUCTS SALES (thousands of barrels a day) Gasolines 190 195 Heating, diesel and jet fuels 158 166 Heavy fuel oils 31 29 Lube oils and other products 36 38 ----------------- Net petroleum products sales 415 428 ----------------- PETROCHEMICAL SALES (thousands of tonnes a day) 2.7 3.1 ------------------------------------------------------------------------- ------------------------------------------------------------------------- SHARE OWNERSHIP, TRADING AND PERFORMANCE (unaudited) Three months to March 31 2009 2008 ------------------------------------------------------------------------- RETURN ON AVERAGE CAPITAL EMPLOYED(a) (rolling 4 quarters, percent) 38.7 36.0 RETURN ON AVERAGE SHAREHOLDERS' EQUITY (rolling 4 quarters, percent) 39.5 39.7 INTEREST COVERAGE RATIO - EARNINGS BASIS (rolling 4 quarters, times covered) 674.3 89.1 SHARE OWNERSHIP Outstanding shares (thousands) Monthly weighted average 856,025 899,736 At March 31 848,882 859,402 Number of shareholders At March 31 13,266 13,172 SHARE PRICES Toronto Stock Exchange (Canadian dollars) High 46.48 58.09 Low 35.95 45.80 Close at March 31 45.80 53.80 NYSE Amex (U.S. dollars)(b) High 38.00 58.91 Low 28.44 44.30 Close at March 31 36.05 52.26 (a) Return on capital employed is net income excluding after-tax cost of financing divided by the average rolling four quarters' capital employed. (b) Share price presented is based on consolidated U.S. market data. -------------------------------------------------------------------------

For further information:

For further information: Investor relations: Mark Stumpf, (403)
237-4537; Media relations: Gordon Wong, (403) 237-2710


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890