Imperial Oil Q2 Earnings Beat Estimates, Revenues Rise YoY

During the quarter, Imperial Oil returned C$421 million to its shareholders through dividend payments.

On July 31, 2026, the Calgary-based integrated oil and gas company declared a quarterly dividend of 87 Canadian cents per share on its outstanding common shares, payable on Oct. 1 to its shareholders of record as of Sept. 4.

IMO’s Q2 Segmental Information

Upstream: Revenues of C$5.5 billion increased from the prior-year level of C$3.8 billion. The segment reported a net income of C$1.3 billion compared with C$664 million in the year-ago quarter.

The company recorded average upstream production of 414,000 gross oil-equivalent barrels per day (boe/d) in the second quarter, which decreased from the prior-year level of 427,000 boe/d. Moreover, the figure missed our expectation of 416,000 boe/d.

IMO recorded total gross bitumen production at Kearl averaged 257,000 barrels per day (182,000 barrels Imperial Oil's share), down from 275,000 barrels per day (195,000 barrels Imperial Oil's share) in the second quarter of 2025.

The company also posted gross bitumen production at Cold Lake, averaging 149,000 barrels per day (bpd), which was an increase from 145,000 bpd in the second quarter of 2025.

IMO’s share of gross production from Syncrude averaged 73,000 bpd, down from 77,000 bpd in the second quarter of 2025. Lower volumes at Syncrude were caused by extreme rainfall.

Bitumen price realizations totaled C$95.79 per barrel compared with C$65.82 in the year-ago period. IMO received an average realized price of C$141.10 per barrel for synthetic oil compared with the prior-year quarter’s C$87.85. For conventional crude oil, it received C$85.52 per barrel compared with C$39.31 in the corresponding period of 2025.

Downstream: Revenues of C$17.8 billion increased from the prior-year level of C$12.4 billion. Net income totaled C$787 million compared with C$322 million in the year-ago period.

The company recorded petroleum product sales of 446,000 bpd, compared to 480,000 bpd in the second quarter of 2025. The figure beat our expectation of 410,000 bpd. The refinery throughput in the second quarter averaged 331,000 bpd, down from the prior-year quarter’s level of 376,000 bpd. Moreover, the figure missed our estimate of 357,000 bpd. Imperial Oil recorded lower refinery throughput, primarily due to planned turnaround impacts. The capacity utilization of 76% was down from the year-ago level of 87%. The figure also missed our estimate.

Chemical: Revenues of C$447 million increased from C$356 million in the second quarter of 2025. Net income totaled C$65 million compared with C$21 million in the year-ago period.

IMO’s Total Costs & Capex

Total expenses of C$13.2 billion increased from the year-ago quarter’s C$10 billion.

In the quarter under review, this Zacks Rank #3 (Hold) company’s capital and exploration expenditures totaled C$531 million, up from the year-ago quarter’s C$473 million.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Financial Performance for IMO

Cash flow from operating activities was C$2.7 billion compared with C$1.5 billion in the year-ago quarter.

As of June 30, 2026, Imperial Oil had cash and cash equivalents of C$2.8 billion. Total debt of the company amounted to C$3.96 billion, with a debt-to-capitalization of 13.9%.

IMO’s Outlook for 2026

Imperial Oil lowered its 2026 refinery guidance, reducing expected throughput from 395,000-405,000 barrels per day to 370,000-380,000 barrels per day and refinery utilization from 91%-93% to 85%-88%. The revised outlook reflects the impact of unplanned downtime and a temporary rail logistics issue at the Strathcona refinery, which the company expects to resolve by the end of the year.

Important Earnings at a Glance

While we have discussed IMO’s second-quarter results in detail, let us take a look at three other key reports in this space.

Fort Worth, TX-based oil and gas exploration and production company Range Resources Corporation RRC reported second-quarter 2026 adjusted earnings of 79 cents per share, up 19.7% from 66 cents a year ago. Range Resources’ bottom line topped the Zacks Consensus Estimate of 56 cents by 41.1%. Strong quarterly results are driven by higher production and improved price realization.

The company’s net debt was $880.8 million at June 30, 2026, down 28% from $1.22 billion at year-end 2025. Range Resources repurchased $78 million of shares and paid $24 million in dividends during the quarter.

Houston, TX-based oil and gas storage and transportation company Kinder Morgan, Inc. KMI reported second-quarter 2026 adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 31 cents by 19.35%. Earnings increased 32.1% from 28 cents per share in the year-ago quarter. Strong quarterly results benefited from broad-based segment growth, led by higher natural gas transportation and gathering volumes. Natural gas transport volumes rose 7%, while gathering volumes increased 26%.

As of June 30, 2026, Kinder Morgan reported $89 million in cash and cash equivalents. Kinder Morgan’s net debt stood at $32.03 billion at quarter-end. The net debt-to-adjusted EBITDA ratio improved to 3.6X from 3.8X at the end of 2025.

Patterson-UTI Energy PTEN reported second-quarter 2026 adjusted earnings of break-even, outperforming the Zacks Consensus Estimate of a loss of 3 cents per share. The bottom line improved from the year-ago quarter's adjusted loss of 6 cents, primarily driven by stronger performance in its Completion Services segment and year-over-year improvement in the Drilling Products and Other operations.

This Houston, TX-based oil and gas drilling company’s total revenues of $1.23 billion beat the Zacks Consensus Estimate of $1.15 billion by 7%. The top line also increased about 0.7% year over year, driven by improved activity and pricing in the Completion Services segment, along with higher revenues from Drilling Products and Other operations.

As of June 30, 2026, PTEN had cash and cash equivalents of $203.2 million and long-term debt of $1.23 billion. Its debt-to-capitalization was 28.5%.

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