Imperial Oil +2.2% on Barron's report highlighting strong output growth

|About: Imperial Oil Ltd (IMO)|By:, SA News Editor

Imperial Oil (IMO +2.2%) opens higher after a weekend Barron's report touts the company as a "hidden gem," overlooked by investors because it is 70% owned by Exxon Mobil (XOM) but with potential stock price appreciation on strong production growth.

IMO represents 6%-7% of XOM's production, but should account for two-thirds of its production growth over the next five years, the report says, yet the stock, which once traded at a premium to XOM shares, now trades at a slight discount.

IMO does the opposite of what others do to boost their stocks, Barron's writes: It doesn't have earnings conference calls, doesn't make many investor presentations, doesn't pay a dividend it can't afford, and exploits investment opportunities with double-digit returns.