Imperial Oil Ltd. (Amex:IMO) has had coverage initiated on them by TD Newcrest, and they started the company with a hold, and a price target of C$44.
"Imperial is in a position to leverage its operating expertise in the development of future expansions. IMO also has a significant pipeline of technology-based opportunities geared toward further improving full-cycle returns and capital efficiencies, in addition to having access to ExxonMobil’s (NYSE:XOM) technology pipeline... At a P/NAV of 95% relative to a peer group average of 87%, however, we believe that the current valuation reflects the bulk of the upside described above. Admittedly, this premium valuation may, in part, be due to the potential (eventual) takeout of the remaining 30.4% float not currently owned by its parent, ExxonMobil. Our neutral position is additionally supported by limited share liquidity and what we see as a dearth of near-term catalysts," said a TD analyst.
In other words, there's nothing in the short term which in evidence to make Imperial Oil move up, while those reasons that are there are already priced into the share price of the stock.
Showing posts with label Imperial Oil. Show all posts
Showing posts with label Imperial Oil. Show all posts
Monday, July 26, 2010
Tuesday, May 18, 2010
Canadian Natural Resources' (TSE:CNQ) Inflation Concerns Rising
Canadian Natural Resources Ltd (TSE:CNQ) was hammered by inflation at its last phase of its Horizon oil sands project, which came in over budget to the tune of 43 percent.
The first phase of the Horizon project cost C$9.7 billion to develop, equal to about C$80,000 per barrel of daily production. Canadian Natural President Steve Laut said he expects the second phase to be even more expensive than the first.
Laut said at an investor meeting, "The biggest concern for us is not so much what the cost is, but is there going to be escalation, can we handle the inflation that might come at us?"
With a number of their competitors like Devon Energy Corp (DVN.N), Imperial Oil Ltd (TSE:IMO) and Cenovus Energy (NYSE:CVE) starting up projects they have on hold, competition for materials, vendors and contractors with experience, could end up with prices rising even further.
To try to manage that, Laut said "we've got to have a very robust execution plan. We've to have enough flexibility that we can pull enough levers if costs start to take off on us."
The first phase of the Horizon project cost C$9.7 billion to develop, equal to about C$80,000 per barrel of daily production. Canadian Natural President Steve Laut said he expects the second phase to be even more expensive than the first.
Laut said at an investor meeting, "The biggest concern for us is not so much what the cost is, but is there going to be escalation, can we handle the inflation that might come at us?"
With a number of their competitors like Devon Energy Corp (DVN.N), Imperial Oil Ltd (TSE:IMO) and Cenovus Energy (NYSE:CVE) starting up projects they have on hold, competition for materials, vendors and contractors with experience, could end up with prices rising even further.
To try to manage that, Laut said "we've got to have a very robust execution plan. We've to have enough flexibility that we can pull enough levers if costs start to take off on us."
Monday, April 19, 2010
Imperial Oil (TSE:IMO): Low Margins Expected
Margins at Imperial Oil (TSE:IMO) are expected to push down earnings, as the company prepares to release its latest quarterly report on April 29.
Those oil companies with strong investment in the downstream are expected to have low margins at their refining businesses, which is sure to result in lower earnings.
Imperial Oil, whose largest shareholder is ExxonMobil (NYSE:XOM), and which has controlling interest in the company, has also said they have started their maintanance at the Strathcona refinery in Edmonton, Alberta, which shouldn't cause any supply problems with the usual 187,000 barrels a day processed there.
The shutdown is expected to last into May.
Those oil companies with strong investment in the downstream are expected to have low margins at their refining businesses, which is sure to result in lower earnings.
Imperial Oil, whose largest shareholder is ExxonMobil (NYSE:XOM), and which has controlling interest in the company, has also said they have started their maintanance at the Strathcona refinery in Edmonton, Alberta, which shouldn't cause any supply problems with the usual 187,000 barrels a day processed there.
The shutdown is expected to last into May.
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