By Robb M. Stewart
Imperial Oil, a Canadian oil company, has announced its plan to return cash to investors by purchasing and canceling up to 1.5 billion Canadian dollars ($1.08 billion) worth of its shares.
Exxon Mobil, the majority shareholder of Imperial Oil, will also make a proportionate tender to maintain its stake in the company at just under 70% after the substantial issuer bid.
The terms and pricing for the share repurchase will be determined and the offer is expected to be launched within the next two weeks, with completion anticipated before the end of the year.
Earlier this month, Imperial Oil successfully completed an accelerated normal course issuer program, resulting in a return of over C$2.3 billion to its shareholders.
In the third quarter, Imperial Oil's production averaged 423,000 gross oil-equivalent barrels per day, slightly lower than the 430,000 barrels per day recorded during the same period last year. However, when adjusted for the sale of XTO Energy Canada, which closed in the third quarter of 2022, the company reported an increase of approximately 5,000 gross oil-equivalent barrels per day in production.
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