Summary
Imperial Oil Limited (IMO) announced on December 6 and 7, 2005, through two press releases, significant divestitures of assets. The company, along with ExxonMobil Canada, entered into agreements with ARC Resources Ltd. to sell their interests in the Redwater and North Pembina fields. This transaction is expected to generate substantial proceeds for Imperial Oil. Imperial Oil's portion of the sale amounts to Cdn $304.5 million, comprising Cdn $235 million for its interest in the Redwater field (which it operates) and Cdn $69.5 million for its share in the North Pembina field (operated by ExxonMobil Canada). The total transaction value for all divested properties, including ExxonMobil Canada's stake in North Pembina, is Cdn $480 million. Investors should note this strategic move to streamline its asset portfolio and potentially redeploy capital.
Key Highlights
- 1Imperial Oil Ltd. and ExxonMobil Canada are selling assets to ARC Resources Ltd.
- 2Divested assets include Imperial's interest in the Redwater field and its share of the North Pembina field.
- 3Imperial Oil's proceeds from the sale are Cdn $304.5 million.
- 4Cdn $235 million is attributed to the sale of the Redwater property.
- 5Cdn $69.5 million is attributed to Imperial's share of the North Pembina field.
- 6The total purchase price for all divested assets (Imperial and ExxonMobil Canada) is Cdn $480 million.
- 7The Redwater field is operated by Imperial Oil, while North Pembina is operated by ExxonMobil Canada.