This article was originally published by TheStreet
By Sarfaraz A. Khan, Research Assistant: Gohar Yousuf
March 6, 2014
NEW YORK (TheStreet) -- Imperial Oil (IMO_), Canada's second-biggest oil company and the country's largest refiner, appears ripe for investment.
March 6, 2014
NEW YORK (TheStreet) -- Imperial Oil (IMO_), Canada's second-biggest oil company and the country's largest refiner, appears ripe for investment.
The company's shares have been under pressure because of a lack of production growth and cost overuns on a key project. The company, however, can considerably increase its output in the near future, a potential boon for its shares.
The stock has fallen 0.9% this year, and closed at $43.85 on Wednesday. It is priced at 10 times Imperial's current year's earnings estimate, which is cheaper than its parent company, Exxon Mobil (XOM_), which trades at 12.5 times this year's earnings estimate. Exxon owns 70% of Imperial.
Imperial Oil has three segments -- exploration and production, refining and chemicals. It focuses on the production of unconventional oil from oil sands and has 3.6 billion barrels of proved reserves, of which 58% are developed.
