Imperial Oil Ltd.

Strong cash generation + earnings up (benefit from higher commodity prices): - Q2 2026 net income: $2.190B, up $1.241B YoY and up $1.250B QoQ (main driver: higher commodity prices). - Cash flow from operations: ~$2.7B (or ~$2.522B excluding working capital). Cash on hand: >$2.8B. - Dividend: paid $421M in Q2; declared Q3 dividend of $0.87/share. - Investor implication: current earnings/cash power remains solid, supporting shareholder returns even with operational disruptions.

Shareholder returns acceleration (surplus cash allocation): - Management plans to accelerate NCIB share repurchases and complete all remaining allowable shares by year-end (i.e., expect buybacks to ramp up ahead of schedule). - Dividend is positioned as a priority with a long history (31 consecutive years of annual growth). - Potential for additional buybacks/SIB: higher flexibility if surplus cash remains after NCIB, but explicitly dependent on commodity prices (no commitment to a SIB—only “could be” depending on market conditions).

Upstream operational highlights: Kearl strength despite weather/turnaround; production guide leaning to low end: - Gross upstream production: 414k boe/d, down 5k boe/d vs Q1 due to planned Kearl turnaround, unplanned Cold Lake maintenance, and extreme Syncrude rainfall (partially offset by reliability improvements/absence of a third-party gas outage). - Full-year upstream outlook: gross production guidance unchanged, but they now expect full-year production toward the low end of the range based on first-half performance. - Kearl: production 257k bbl/d, down 2k QoQ; planned turnaround completed ahead of schedule and below budget, extending turnaround interval to industry-leading 4 years. - Ore grade surprise clarification: “exceptional ore grades” referred to Q2 2025 anomaly; Q2 2026 is back to normal high ore quality (management emphasized confidence in ore quality).