Imperial Oil. Graphic via The Canadian Press
The end is fast approaching for a Northwest Territories oilfield Imperial Oil Ltd. first tapped more than a century ago.
The Calgary-based company, majority owned by U.S. heavyweight ExxonMobil Corp., announced Friday that it aims to wind down production at Norman Wells by the end of the third quarter of this year. That’s sooner than the end-of-decade closure it had earlier targeted, CEO John Whelan told analysts on a conference call to discuss Imperial’s latest financial results.
The change of plans resulted in a $320-million after-tax charge against Imperial’s fourth-quarter earnings, which were down sharply from a year ago due to that and other factors, including lower commodity prices and weather-related production hiccups in the oilsands.
“I would like to take a moment to thank our Imperial team members and our partners that have contributed to and are still supporting our efforts at Norman Wells,” Whelan said.
“As we continue to supply essential energy products to the North, and as we move forward with the decommissioning at Norman Wells, our focus will remain on strong relationships and working closely with local communities.”
Norman Wells, almost 700 kilometres northwest of Yellowknife on the Mackenzie River, has a population of about 800. The town says on its website that it was the first community in the Northwest Territories to be established solely as a result of non-renewable resource development, with most others tracing their roots to the fur trade.
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Imperial bought claims in the area in 1918 and drilled its first discovery well a year later, the town’s website says.
N.W.T. Premier R.J. Simpson said Imperial’s announcement is “difficult news” for people in the town and the Sahtu region, where it’s located.
“Norman Wells is a community with deep roots and a proud history. For generations, people in Norman Wells and the Sahtu have helped build this territory, and their contributions matter,” he said in a written statement.
“While this decision is not entirely unexpected given the age of the facilities and long-term trends, it is still disappointing. It also comes at a time when stability matters. In the immediate period ahead, our focus as a government is on support, certainty and a responsible path forward.”
Meanwhile, Imperial raised its quarterly dividend by 20 per cent to 87 cents per share from 72.
It said fourth-quarter earnings tumbled to $492 million from $1.23 billion during the same period a year earlier.
That amounted to $1 per diluted share compared to $2.37. On an adjusted basis, Imperial earned $1.97 per diluted share, a drop from $2.37.
Revenue and other income totalled $11.28 billion, down from $12.61 billion in the fourth quarter of 2024.
In addition to the financial hit from the Norman Wells closure, Imperial also took a one-time charge related to materials and supply inventory management changes that Whelan said are expected to result in “significant operating and working capital efficiencies going forward.”
The price of West Texas Intermediate crude oil for the fourth quarter of 2025 averaged US$59.14 a barrel, a 16 per cent drop from a year earlier. Prices of the oilsands crude Imperial produces also weakened significantly.
At Imperial and Exxon’s joint Kearl oilsands mine north of Fort McMurray, Alta., total gross bitumen production was 274,000 barrels per day, down from 299,000 barrels per day.
Weather was “exceptionally wet” in the area last fall, Whelan said.
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“We experienced more rain in a few days in October than we typically get all summer. So it was a significant event,” he said.
“That impacted the mobility of the equipment in the mine, and it delayed accessing high quality ore that we had planned to get to. Unfortunately, it took a little time to recover from that.”
Overall upstream production in the quarter averaged 444,000 gross oil-equivalent barrels per day, compared with 460,000 a year earlier. Refinery throughput averaged 408,000 barrels per day, compared with 411,000 barrels per day in the fourth quarter of 2024.
This report by The Canadian Press was first published Jan. 30, 2026.
Companies in this story: (TSX:IMO)
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