(IMO) Imperial Oil - Ratings and Ratios

Imperial Oil Limited (NYSE MKT:IMO) is a leading Canadian energy company primarily engaged in the exploration, production, and sale of crude oil and natural gas. As a subsidiary of Exxon Mobil Corporation, it leverages extensive resources and expertise to operate across three core business segments: Upstream, Downstream, and Chemical. The company has been a cornerstone of Canadas energy sector since its incorporation in 1880 and is headquartered in Calgary, Alberta.

In its Upstream segment, Imperial Oil focuses on the exploration and production of crude oil, natural gas, synthetic crude oil, and bitumen. This segment is critical to the companys operations, as it provides the raw materials that fuel its downstream activities. The companys upstream assets are primarily located in the Athabasca oil sands, Cold Lake, and the Norman Wells region, making it one of the largest oil sands producers in Canada.

The Downstream segment encompasses refining, transportation, and marketing of petroleum products. Imperial Oil operates two major refineries in Canada, located in Sarnia and Edmonton, with a combined refining capacity of approximately 420,000 barrels per day. The companys extensive distribution network includes pipelines, fuel terminals, and retail stations, ensuring efficient delivery of products such as gasoline, diesel, jet fuel, and lubricants to both consumer and industrial markets. Its retail operations are primarily branded under Esso and Mobil, two of the most recognized fuel brands in Canada.

The Chemical segment specializes in the production and marketing of petrochemicals, including aliphatic solvents, plasticizer intermediates, and polyethylene resins. These products are essential for manufacturing plastics, packaging materials, and other industrial applications. Imperial Oils chemical operations are integrated with its refining activities, allowing for efficient use of feedstocks and by-products.

Looking ahead, Imperial Oils stock price is expected to remain range-bound over the next three months, with technical resistance at the SMA50 level of $67.82 and support near the SMA200 at $69.54. The average true range (ATR) of $2.76 suggests moderate volatility, with potential price fluctuations within a $3-4 range. Fundamentally, the companys forward P/E of 11.55 indicates expectations of earnings growth, supported by its strong return on equity (RoE) of 20.41. However, the P/B ratio of 1.91 signals that the stock may be fairly valued at current levels, which could limit upside potential in the near term.