Imperial Oil Limited

Good day and welcome to the Imperial Oil fourth quarter 2025 earnings call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Peter Shaw, Vice President of Investor Relations. Please go ahead.

Good morning, everyone. Welcome to our fourth quarter earnings conference call. I am joined this morning by Imperial's senior management team, including John Whalen, Chairman, President, and CEO, Dan Mayen, Senior Vice President of Finance and Administration, Cheryl Gomez-Smith, Senior Vice President of the Upstream, and Scott Maloney, Vice President of the Downstream. Today's comments include reference to non-GAAP financial measures. The definitions and reconciliations of these measures can be found in Attachment 6 of our most recent press release and are available on our website with a link to this conference call. Today's comments may contain forward-looking information. Any forward-looking information is not a guarantee of future performance and actual future performance. Operating results can vary materially depending on the number of factors and assumptions. Forward-looking information and the risk factors and assumptions are described further in detail on our fourth quarter earnings release that will be issued this morning, as well as our most recent 10-K. All these documents are available on CDAR Plus, EDGAR, and our website, so I would ask you to refer to those. John is going to start this morning with some opening remarks and then hand it over to Dan, who's going to go through the financial update, and then John will provide operations updates. Once that is done, we will follow with the Q&A. So with that, I will turn it over to John for his opening remarks.

Thank you, Peter. Good morning, everybody, and welcome to our fourth quarter and full year earnings call. I hope everyone is doing well and that your year is off to a good start. And as always, we appreciate you taking the time to join us this morning. Let me start by saying I'm very pleased to report another strong quarter. We generated just over $1.9 billion in cash flow from operations in the quarter and $6.7 billion for the full year. At year-end 2025, our cash on hand exceeded $1.1 billion after funding our capital program and returning $2.1 billion to shareholders in the quarter and $4.6 billion over the year, including dividends and the completion of our normal course issuer bid. Our integrated business model continued to demonstrate resilience, with stronger downstream profitability in the quarter. And we continue to generate substantial free cash flow over a range of oil price environments, with nearly $1.4 billion generated in the fourth quarter, when WTI averaged less than $60 U.S., and $4.8 billion generated throughout 2025. While our financial results in the quarter were very strong, operationally we encountered extremely wet conditions at Curl in October and additional maintenance in our eastern manufacturing hub in December. I'll touch further on these events and how we've moved past them during the asset updates. On the project front, we achieved first production from the Coal Lake Lemming SAGD project in the beginning of November. As expected, production is currently ramping up to a peak of around 9,000 barrels per day. Now, I'd like to briefly highlight two identified items that affected the quarter's results. First, we announced our decision to cease production at our Norman Wells asset in the Northwest Territories by the end of the third quarter of 2026, as it reaches the end of economic life after several decades of successful operations. This somewhat accelerated end of field life versus the end of the decade resulted in a one-time charge of $320 million after tax, which is included in our fourth quarter identified items. I would like to take a moment to thank our Imperial team members and our partners that have contributed to and are still supporting our efforts at Norman Wells. As we continue to supply essential energy products to the North, And as we move forward with the decommissioning at Norman Wells, our focus will remain on strong relationships and working closely with local communities. Separately, we completed a comprehensive review of our inventory practices across the company, informed by external benchmarking and inventory management best practices. Based on the review, we identified opportunities to further enhance our inventory management. such that we can run more efficiently with optimized inventory levels while maintaining critical supplies. While we have recognized a one-time charge of $156 million after tax in our fourth quarter earnings to reflect the optimization of materials and supplies inventory, we expect to realize significant operating and working capital efficiencies going forward. Moving back to the overall results, The fourth quarter saw us continue our long track record of delivering industry-leading returns to shareholders. We paid $361 million in dividends and completed the accelerated share repurchases under the NCIB in mid-December, with share repurchases totaling $1.7 billion in the quarter. In total, we returned $4.6 billion of cash to shareholders in 2025. and exceeded $23 billion over the past five years. I'm also pleased to share that this morning we declared a dividend of 87 cents per share, payable on April 1st, 2026. The increase of 15 cents per share is the largest nominal dividend increase in company history. To provide some context, 10 years ago, our quarterly dividend was 14 cents per share. As we move into 2026, we remain focused on our core strategy of being the most responsible operator, maximizing the value of existing assets, progressing our restructuring plan, and continuing to deliver industry-leading shareholder returns. This strategy has allowed us to increase our quarterly dividend per share by 295% and repurchase 34% of our outstanding shares since 2020. With that, I'll now pass things over to Dan to walk through the financial results in more detail.