Imperial Oil (IMO) Gets Toronto Stock Exchange Approval for 5% Share Buyback

Imperial Oil Ltd. (NYSE:IMO) is one of the 10 integrated oil and gas companies to invest in according to hedge funds.

On June 23, the Toronto Stock Exchange granted Imperial Oil Ltd. (NYSE:IMO) approval to initiate a normal course issuer bid (NCIB), which permits the business to buy back up to 5% of its common shares outstanding. The company may buy back up to 24.17 million shares over the course of the next year, based on the 483.59 million shares outstanding as of June 15. The quantity of shares purchased from ExxonMobil, Imperial Oil’s largest shareholder, will lower this upper limit.

Photo by Viktor Kharlashkin on Unsplash

The one-year buyback program will commence on June 29 and will finish either on June 28, 2027, or whenever the business has bought the maximum shares permitted. It reflects the company’s fundamental strength, which is backed by a resilient balance sheet position, impressive cash flows, and low working capital requirements.

It also exhibits the company’s strong emphasis on paying out cash to shareholders in a more tax-efficient manner, along with flexibility to participate. Moreover, it is a more efficient way to overcome the dilution risk associated with the company’s restricted share allocation program.

Imperial Oil Ltd. (NYSE:IMO) is involved in exploration, production, and sale of crude oil and natural gas in Canada. The company explores, produces, and transports crude oil, natural gas, synthetic crude oil, and bitumen. It manufactures and sells plasticizer intermediates, aliphatic solvents, and polyethylene resins.

While we acknowledge the risk and potential of IMO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IMO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1