Yahoo Finance Imperial (IMO) Under Pressure to Fix Kearl Oil Sands Project
Imperial Oil Limited IMO, a Canadian petroleum company majority owned by ExxonMobil, is under pressure to resolve the wastewater seepage problem at its Kearl oil sands project, after the Alberta Energy Regulator (AER) issued an environmental protection order to the company.
The Kearl oil sands project is an oil sands mine located in northern Alberta, producing 240,000 barrels per day. The wastewater generated from the industrial processes contains dissolved iron and arsenic, which pose potential environmental and health risks if not properly managed and treated.
The seepage, which was first reported in May 2022, involves industrial wastewater leaking for almost nine months from the external tailings area in four locations on and outside the Kearl oil sands site.
Meanwhile, Imperial Oil also reported another spill on Feb 4, which resulted in the release of approximately 5.3 million liters of tailings water into nearby forests and wetlands. This amount of water is equivalent to two Olympic-sized swimming pools. The affected area is located near the tributaries of two rivers, the Muskeg and Firebag, according to AER.
AER has given Imperial a week to submit a plan to intercept and contain the seepage before the spring snowmelt and until the end of February.
AER has also increased its enforcement efforts through this new order, having previously given Imperial two notices for not following regulations and conducting inspections at the site.
Imperial stated that it’s been working to determine the cause of the seepage and the issue lies with the gaps within the seepage interception system.
A spokesperson for Imperial Oil, Lisa Schmidt, stated in an email that the company regrets the incident and is working to learn from it and prevent it from reoccurence. She added that the company has been cooperating with AER since the leak was first identified and that there have been no reported impacts on fish or wildlife in the area.
However, Imperial also reported another leak of over 5,000 cubic meters of tailings water from one of its holding ponds on Saturday. The cause of that release is still under investigation and the company has notified the local communities. Schmidt stated that Imperial plans to implement additional monitoring and control measures, including water catchment features and monitoring wells.
Zacks Rank and Key Picks
Imperial Oil Limited, founded in 1880 and based in Calgary, is Canada's largest integrated oil company, mainly involved in oil and gas production, refining, marketing, and the chemical business, and is a subsidiary of ExxonMobil with 69.6% ownership stake. Its notable operations include being Canada's largest jet fuel supplier and a major producer of asphalt.
Currently, Imperial Oil carries a Zacks Rank #3 (Hold). Meanwhile, investors interested in the energy sector might look at stocks like ProPetro Holding PUMPand Energy Transfer ET both sporting a Zacks Rank #1 (Strong Buy), and NGL Energy Partners NGL holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ProPetro Holding: PUMP currently has a Forward P/E ratio of 4.47. For comparison, its industry has an average Forward P/E of 28.50, which means PUMP is trading at a discount to the group.
ProPetro Holding is worth approximately $1.1 billion. Its shares have decreased by 20.1% in the past year.
Energy Transfer LP: Energy Transfer LP is valued at around $39.7 billion. ET delivered an average earnings surprise of 16.3% for the last four quarters, and its current dividend yield is 9.49%.
For the last quarter, Energy Transfer reported earnings of 30 cents per share,which is in line with the Zacks Consensus Estimate. The 2023 Zacks Consensus Estimate for ET indicates 2.1% year-over-year earnings per unit growth.
NGL Energy Partners: NGL Energy Partnersis worth approximately $219.57 million. Its shares have decreased by 12.5% in the past year. The fiscal 2023 Zacks Consensus Estimate for NGL indicates 2.1% year-over-year earnings per unit growth.
NGL Energy Partners LP is a limited partnership company that operates a vertically-integrated propane business with three segments — retail propane, wholesale supply and marketing, and midstream.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Imperial Oil Limited (IMO) : Free Stock Analysis Report
NGL Energy Partners LP (NGL) : Free Stock Analysis Report
Energy Transfer LP (ET) : Free Stock Analysis Report
ProPetro Holding Corp. (PUMP) : Free Stock Analysis Report
