(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||||||||
(Address of principal executive offices) | (Postal Code) |
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||
None | None |
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Table of contents | Page | ||||||||||
Liquids (a) | Natural gas | Synthetic crude oil | Bitumen | Total oil-equivalent basis | |||||||||||||||||||||||||
millions of barrels | billions of cubic feet | millions of barrels | millions of barrels | millions of barrels | |||||||||||||||||||||||||
Net proved reserves: | |||||||||||||||||||||||||||||
Developed | 4 | 60 | 248 | 1,691 | 1,953 | ||||||||||||||||||||||||
Undeveloped | — | 12 | 105 | 133 | 240 | ||||||||||||||||||||||||
Total net proved | 4 | 72 | 353 | 1,824 | 2,193 | ||||||||||||||||||||||||
(a)Liquids include crude oil, condensate and natural gas liquids (NGLs). NGL proved reserves are not material and are therefore included under liquids. |
thousands of barrels per day (a) | 2022 | 2021 | 2020 | |||||||||||||||||||||||
Bitumen: | ||||||||||||||||||||||||||
Kearl: | - gross (b) | 172 | 186 | 158 | ||||||||||||||||||||||
- net (c) | 157 | 178 | 155 | |||||||||||||||||||||||
Cold Lake: | - gross (b) | 144 | 140 | 132 | ||||||||||||||||||||||
- net (c) | 106 | 114 | 124 | |||||||||||||||||||||||
Total bitumen: | - gross (b) | 316 | 326 | 290 | ||||||||||||||||||||||
- net (c) | 263 | 292 | 279 | |||||||||||||||||||||||
Synthetic crude oil (d): | - gross (b) | 77 | 71 | 69 | ||||||||||||||||||||||
- net (c) | 63 | 62 | 68 | |||||||||||||||||||||||
Liquids (e): | - gross (b) | 9 | 11 | 13 | ||||||||||||||||||||||
- net (c) | 9 | 10 | 12 | |||||||||||||||||||||||
Total: | - gross (b) | 402 | 408 | 372 | ||||||||||||||||||||||
- net (c) | 335 | 364 | 359 | |||||||||||||||||||||||
(a)Volume per day metrics are calculated by dividing the volume for the period by the number of calendar days in the period. (b)Gross production is the company’s share of production (excluding purchases) before deduction of the mineral owners’ or governments’ share or both. (c)Net production is gross production less the mineral owners’ or governments’ share or both. (d)The company’s synthetic crude oil production volumes were from the company’s share of production volumes in the Syncrude joint venture and include immaterial amounts of bitumen and other products exported to the operator's facilities using an existing interconnect pipeline. (e)Liquids include crude oil, condensate and NGLs. |
millions of cubic feet per day (a) | 2022 | 2021 | 2020 | ||||||||||||||
Gross production (b) (c) | 85 | 120 | 154 | ||||||||||||||
Net production (c) (d) (e) | 83 | 115 | 150 | ||||||||||||||
Net production available for sale (f) | 50 | 81 | 115 | ||||||||||||||
(a)Volume per day metrics are calculated by dividing the volume for the period by the number of calendar days in the period. (b)Gross production is the company’s share of production (excluding purchases) before deduction of the mineral owners’ or governments’ share or both. (c)Production of natural gas includes amounts used for internal consumption with the exception of the amounts reinjected. (d)Net production is gross production less the mineral owners’ or governments’ share or both. (e)Net production reported in the above table is consistent with production quantities in the net proved reserves disclosure. (f)Includes sales of the company’s share of net production and excludes amounts used for internal consumption. |
thousands of barrels per day (a) | 2022 | 2021 | 2020 | ||||||||||||||
Total production oil-equivalent basis: | |||||||||||||||||
- gross (b) | 416 | 428 | 398 | ||||||||||||||
- net (c) | 349 | 383 | 384 | ||||||||||||||
(a)Volume per day metrics are calculated by dividing the volume for the period by the number of calendar days in the period. (b)Gross production is the company’s share of production (excluding purchases) before deduction of the mineral owners’ or governments’ share or both. (c)Net production is gross production less the mineral owners’ or governments’ share or both. |
Canadian dollars per barrel | 2022 | 2021 | 2020 | ||||||||||||||
Bitumen | 84.67 | 57.91 | 25.69 | ||||||||||||||
Synthetic crude oil | 125.46 | 81.61 | 49.76 | ||||||||||||||
Liquids (a) | 93.77 | 59.41 | 27.40 | ||||||||||||||
Canadian dollars per thousand cubic feet | |||||||||||||||||
Natural gas | 5.69 | 3.83 | 1.90 | ||||||||||||||
(a)Liquids include crude oil, condensate and NGLs. |
Canadian dollars per barrel | 2022 | 2021 | 2020 | ||||||||||||||
Bitumen | 39.05 | 29.06 | 25.73 | ||||||||||||||
Synthetic crude oil | 68.00 | 61.97 | 45.51 | ||||||||||||||
Total oil-equivalent basis (a) | 44.02 | 34.32 | 28.73 | ||||||||||||||
(a)Includes liquids, bitumen, synthetic crude oil and natural gas. |
wells | 2022 | 2021 | 2020 | ||||||||||||||
Net productive exploratory | — | — | — | ||||||||||||||
Net dry exploratory | — | — | — | ||||||||||||||
Net productive development | 24 | 13 | 29 | ||||||||||||||
Net dry development | — | — | — | ||||||||||||||
Total | 24 | 13 | 29 |
2022 | |||||||||||
Wells | Gross | Net | |||||||||
Total | 21 | 21 |
Year ended December 31, 2022 | Year ended December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
Crude oil | Natural gas | Crude oil | Natural gas | |||||||||||||||||||||||||||||||||||||||||||||||
wells | Gross (a) | Net (b) | Gross (a) | Net (b) | Gross (a) | Net (b) | Gross (a) | Net (b) | ||||||||||||||||||||||||||||||||||||||||||
Total (c) | 4,277 | 4,264 | 2,419 | 774 | 4,557 | 4,509 | 2,729 | 885 | ||||||||||||||||||||||||||||||||||||||||||
(a)Gross wells are wells in which the company owns a working interest. (b)Net wells are the sum of the fractional working interest owned by the company in gross wells, rounded to the nearest whole number. (c)Multiple completion wells are permanently equipped to produce separately from two or more distinctly different geological formations. At year-end 2022, the company had an interest in 12 gross wells with multiple completions (2021 - 12 gross wells). |
Developed | Undeveloped | Total | ||||||||||||||||||||||||||||||||||||||||||
thousands of acres | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||
Western provinces (a): | ||||||||||||||||||||||||||||||||||||||||||||
Liquids and gas | - gross (b) | 441 | 1,059 | 185 | 621 | 626 | 1,680 | |||||||||||||||||||||||||||||||||||||
- net (c) | 260 | 517 | 135 | 350 | 395 | 867 | ||||||||||||||||||||||||||||||||||||||
Bitumen | - gross (b) | 196 | 196 | 584 | 584 | 780 | 780 | |||||||||||||||||||||||||||||||||||||
- net (c) | 182 | 182 | 255 | 255 | 437 | 437 | ||||||||||||||||||||||||||||||||||||||
Synthetic crude oil | - gross (b) | 119 | 119 | 100 | 100 | 219 | 219 | |||||||||||||||||||||||||||||||||||||
- net (c) | 30 | 30 | 25 | 25 | 55 | 55 | ||||||||||||||||||||||||||||||||||||||
Canada lands (d): | ||||||||||||||||||||||||||||||||||||||||||||
Liquids and gas | - gross (b) | 2 | 2 | 1,803 | 1,803 | 1,805 | 1,805 | |||||||||||||||||||||||||||||||||||||
- net (c) | 2 | 2 | 495 | 495 | 497 | 497 | ||||||||||||||||||||||||||||||||||||||
Atlantic offshore: | ||||||||||||||||||||||||||||||||||||||||||||
Liquids and gas | - gross (b) | 65 | 65 | 146 | 267 | 211 | 332 | |||||||||||||||||||||||||||||||||||||
- net (c) | 6 | 6 | 22 | 36 | 28 | 42 | ||||||||||||||||||||||||||||||||||||||
Total (e): | - gross (b) | 823 | 1,441 | 2,818 | 3,375 | 3,641 | 4,816 | |||||||||||||||||||||||||||||||||||||
- net (c) | 480 | 737 | 932 | 1,161 | 1,412 | 1,898 | ||||||||||||||||||||||||||||||||||||||
(a)Western provinces include British Columbia and Alberta. (b)Gross acres include the interests of others. (c)Net acres exclude the interests of others. (d)Canada lands include the Arctic Islands, Beaufort Sea / Mackenzie Delta, and other Northwest Territories. (e)Certain land holdings are subject to modification under agreements whereby others may earn interests in the company’s holdings by performing certain exploratory work (farm-out) and whereby the company may earn interests in others’ holdings by performing certain exploratory work (farm-in). |
Refinery throughput (a) | Rated capacities (b) | ||||||||||||||||||||||
Year ended December 31 | at December 31 | ||||||||||||||||||||||
thousands of barrels per day | 2022 | 2021 | 2020 | 2022 | |||||||||||||||||||
Strathcona, Alberta | 195 | 172 | 170 | 197 | |||||||||||||||||||
Sarnia, Ontario | 113 | 106 | 86 | 123 | |||||||||||||||||||
Nanticoke, Ontario | 110 | 101 | 84 | 113 | |||||||||||||||||||
Total | 418 | 379 | 340 | 433 | |||||||||||||||||||
Utilization of refinery capacity (percent) | 98 | 89 | 80 | ||||||||||||||||||||
(a)Refinery throughput is the volume of crude oil and feedstocks that is processed in the refinery atmospheric distillation units. (b)Rated capacities are based on definite specifications as to types of crude oil and feedstocks that are processed in the refinery atmospheric distillation units, the products to be obtained and the refinery process, adjusted to include an estimated allowance for normal maintenance shutdowns. Accordingly, actual capacities may be higher or lower than rated capacities due to changes in refinery operation and the type of crude oil available for processing. |
thousands of barrels per day | 2022 | 2021 | 2020 | ||||||||||||||
Gasolines | 229 | 224 | 215 | ||||||||||||||
Heating, diesel and jet fuels | 176 | 160 | 146 | ||||||||||||||
Lube oils and other products | 47 | 45 | 40 | ||||||||||||||
Heavy fuel oils | 23 | 27 | 20 | ||||||||||||||
Net petroleum product sales | 475 | 456 | 421 |
thousands of tonnes | 2022 | 2021 | 2020 | ||||||||||||||
Total petrochemical sales | 842 | 831 | 749 |
Total number of shares purchased | Average price paid per share (Canadian dollars) | Total number of shares purchased as part of publicly announced plans or programs | Maximum number of shares that may yet be purchased under the plans or programs (a) (b) | ||||||||||||||||||||
October 2022 | |||||||||||||||||||||||
(October 1 - October 31) | 6,673,198 | 65.06 | 6,673,198 | — | |||||||||||||||||||
November 2022 | |||||||||||||||||||||||
(November 1 - November 30) | — | — | — | — | |||||||||||||||||||
December 2022 | |||||||||||||||||||||||
(December 1 - December 31) | 20,689,655 | 72.50 | 20,689,655 | — | |||||||||||||||||||
(a)On June 27, 2022, the company announced by news release that it had received final approval from the Toronto Stock Exchange for a new normal course issuer bid to continue its existing share purchase program. The program enabled the company to purchase up to a maximum of 31,833,809 common shares during the period June 29, 2022 to June 28, 2023. This maximum included shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid. As in the past, Exxon Mobil Corporation advised the company that it intended to participate to maintain its ownership percentage at approximately 69.6 percent. Imperial accelerated share purchases under the normal course issuer bid program, and the program completed on October 21, 2022 as a result of the company purchasing the maximum allowable number of shares under the program. (b)On November 4, 2022, the company commenced a substantial issuer bid pursuant to which it offered to purchase for cancellation up to $1.5 billion of its common shares through a modified Dutch auction and proportionate tender offer. The substantial issuer bid was completed on December 14, 2022, with the company taking up and paying for 20,689,655 common shares at a price of $72.50 per share, for an aggregate purchase of $1.5 billion and 3.4 percent of Imperial’s issued and outstanding shares at the close of business on October 31, 2022. This included 14,399,985 shares purchased from Exxon Mobil Corporation by way of a proportionate tender to maintain its ownership percentage at approximately 69.6 percent. |
Imperial Oil Limited | Exxon Mobil Corporation | ||||||||||||||||||||||
Named executive officer | Common shares (a) | Restricted stock units (b) | Common shares (a) | Restricted stock units (b) | |||||||||||||||||||
B.W. Corson | — | 323,600 | 120,676 | 73,850 | |||||||||||||||||||
D.E. Lyons | — | 94,800 | 10,419 | 9,600 | |||||||||||||||||||
S.P. Younger | — | 54,400 | 8,796 | 13,600 | |||||||||||||||||||
B.A. Jolly | 12,506 | 73,800 | — | — | |||||||||||||||||||
J.R. Wetmore | 15,990 | 60,400 | — | — | |||||||||||||||||||
Incumbent directors and executive officers as a group (16 people) | 113,437 | 807,550 | 161,155 | 225,450 | |||||||||||||||||||
(a)No common shares are beneficially owned by reason of exercisable options. None of these individuals owns more than 0.01 percent of the outstanding shares of Imperial Oil Limited or Exxon Mobil Corporation. The directors and officers as a group own approximately 0.02 percent of the outstanding shares of Imperial Oil Limited, and less than 0.01 percent of the outstanding shares of Exxon Mobil Corporation. Information not being within the knowledge of the company has been provided by the directors and the executive officers individually. (b)Restricted stock units do not carry voting rights prior to the issuance of shares on settlement of the awards. |
thousands of Canadian dollars | 2022 | 2021 | |||||||||
Audit fees | 2,190 | 1,890 | |||||||||
Audit-related fees | 92 | 92 | |||||||||
Tax fees | — | — | |||||||||
All other fees | — | — | |||||||||
Total fees | 2,282 | 1,982 |
(3) | Restated certificate and articles of incorporation of the company (Incorporated herein by reference to Exhibit (3.1) to the company’s Form 8-K filed on May 3, 2006 (File No. 0-12014)). | |||||||||||||||||||
By-laws of the company (Incorporated herein by reference to Exhibit (3)(ii) to the company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2003 (File No. 0-12014)). | ||||||||||||||||||||
(4) | Description of capital stock. (Incorporated herein by reference to Exhibit (4)(vi) of the company’s Annual Report on Form 10-K for the year ended December 31, 2019 (File No. 0-12014)). | |||||||||||||||||||
(10) | (ii) | (1) | Alberta Cold Lake Transition Agreement, effective January 1, 2000, relating to the royalties payable in respect of the Cold Lake production project and terminating the Alberta Cold Lake Crown Agreement dated June 25, 1984. (Incorporated herein by reference to Exhibit (10)(ii)(20) of the company’s Annual Report on Form 10-K for the year ended December 31, 2001 (File No. 0-12014)). | |||||||||||||||||
Syncrude Bitumen Royalty Option Agreement, dated November 18, 2008, setting out the terms of the exercise by the Syncrude Joint Venture owners of the option contained in the existing Crown Agreement to convert to a royalty payable on the value of bitumen, effective January 1, 2009 (Incorporated herein by reference to Exhibit 1.01(10)(ii)(2) of the company’s Form 8-K filed on November 19, 2008 (FileNo. 0-12014)). | ||||||||||||||||||||
(iii)(A) | (1) | Form of Letter relating to Supplemental Retirement Income (Incorporated herein by reference to Exhibit (10)(c)(3) of the company’s Annual Report on Form 10-K for the year ended December 31, 1980 (File No. 2-9259)). | ||||||||||||||||||
(2) | Deferred Share Unit Plan for Nonemployee Directors. (Incorporated herein by reference to Exhibit (10)(iii)(A)(6) of the company’s Annual Report on Form 10-K for the year ended December 31, 1998 (File No. 0-12014)). | |||||||||||||||||||
Amended Restricted Stock Unit Plan with respect to Restricted Stock Units granted in 2011 and subsequent years, as amended effective November 14, 2011 (Incorporated herein by reference to Exhibit 9.01(c)[10(iii)(A)(1)] of the company’s Form 8-K filed on February 23, 2012 (File No. 0-12014)). | ||||||||||||||||||||
Amended Restricted Stock Unit Plan with respect to Restricted Stock Units granted in 2016 and subsequent years, as amended effective October 26, 2016 (Incorporated herein by reference to Exhibit 9.01(c)[10(iii)(A)(1)] of the company’s Form 8-K filed on October 31, 2016 (File No. 0-12014)). | ||||||||||||||||||||
Amended Short Term Incentive Program with respect to awards granted in 2016 and subsequent years, as amended effective October 26, 2016 (Incorporated herein by reference to Exhibit 9.01(c)[10(iii)(A)(1)] of the company’s Form 8-K filed on October 31, 2016 (File No. 0-12014)). | ||||||||||||||||||||
Amended Restricted Stock Unit Plan with respect to Restricted Stock Units granted in 2020 and subsequent years, as amended effective November 24, 2020 (Incorporated herein by reference to Exhibit (10)(iii)(A)(6) of the company’s Annual Report on Form 10-K for the year ended December 31, 2020 (File No. 0-12014)). | ||||||||||||||||||||
Amended Restricted Stock Unit Plan with respect to Restricted Stock Units granted in 2022 and subsequent years, as amended effective November 29, 2022. | ||||||||||||||||||||
(21) | Imperial Oil Resources Limited is incorporated in Alberta, Canada and Canada Imperial Oil Limited is incorporated in Canada, and both are wholly-owned subsidiaries of the company. The names of all other subsidiaries of the company are omitted because, considered in the aggregate as a single subsidiary, they would not constitute a significant subsidiary as of December 31, 2022. | |||||||||||||||||||
Certification by principal executive officer of Periodic Financial Report pursuant to Rule 13a-14(a). | ||||||||||||||||||||
Certification by principal financial officer of Periodic Financial Report pursuant to Rule 13a-14(a). | ||||||||||||||||||||
Certification by chief executive officer of Periodic Financial Report pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350. | ||||||||||||||||||||
Certification by chief financial officer of Periodic Financial Report pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350. | ||||||||||||||||||||
(101) | Interactive Data Files (formatted as Inline XBRL). | |||||||||||||||||||
(104) | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
Imperial Oil Limited | ||||||||
by /s/ Bradley W. Corson | ||||||||
(Bradley W. Corson) | ||||||||
Chairman, president and chief executive officer |
Signature | Title | |||||||
/s/ Bradley W. Corson | Chairman, president and chief executive officer and director (Principal executive officer) | |||||||
(Bradley W. Corson) | ||||||||
/s/ Daniel E. Lyons | Senior vice-president, finance and administration, and controller (Principal financial officer and principal accounting officer) | |||||||
(Daniel E. Lyons) | ||||||||
/s/ David W. Cornhill | Director | |||||||
(David W. Cornhill) | ||||||||
/s/ Matthew R. Crocker | Director | |||||||
(Matthew R. Crocker) | ||||||||
/s/ Krystyna T. Hoeg | Director | |||||||
(Krystyna T. Hoeg) | ||||||||
/s/ Miranda C. Hubbs | Director | |||||||
(Miranda C. Hubbs) | ||||||||
/s/ Jack M. Mintz | Director | |||||||
(Jack M. Mintz) | ||||||||
/s/ David S. Sutherland | Director | |||||||
(David S. Sutherland) |
Table of contents | Page | |||||||
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
Revenues | 59,413 | 37,508 | 22,284 | ||||||||||||||
Net income (loss): | |||||||||||||||||
Upstream | 3,645 | 1,395 | (2,318) | ||||||||||||||
Downstream | 3,622 | 895 | 553 | ||||||||||||||
Chemical | 204 | 361 | 78 | ||||||||||||||
Corporate and other | (131) | (172) | (170) | ||||||||||||||
Net income (loss) | 7,340 | 2,479 | (1,857) | ||||||||||||||
Cash and cash equivalents at year-end | 3,749 | 2,153 | 771 | ||||||||||||||
Total assets at year-end | 43,524 | 40,782 | 38,031 | ||||||||||||||
Long-term debt at year-end | 4,033 | 5,054 | 4,957 | ||||||||||||||
Total debt at year-end | 4,155 | 5,176 | 5,184 | ||||||||||||||
Other long-term obligations at year-end | 3,467 | 3,897 | 4,100 | ||||||||||||||
Shareholders’ equity at year-end | 22,413 | 21,735 | 21,418 | ||||||||||||||
Cash flow from operating activities | 10,482 | 5,476 | 798 | ||||||||||||||
Per share information (Canadian dollars) | |||||||||||||||||
Net income (loss) per common share - basic | 11.47 | 3.48 | (2.53) | ||||||||||||||
Net income (loss) per common share - diluted | 11.44 | 3.48 | (2.53) | ||||||||||||||
Dividends per common share - declared | 1.46 | 1.03 | 0.88 |
millions of Canadian dollars | 2022 | 2021 | 2020 | |||||||||||||||||
From the Consolidated balance sheet | ||||||||||||||||||||
Business uses: asset and liability perspective | ||||||||||||||||||||
Total assets | 43,524 | 40,782 | 38,031 | |||||||||||||||||
Less: | Total current liabilities excluding notes and loans payable | (8,776) | (5,432) | (3,153) | ||||||||||||||||
Total long-term liabilities excluding long-term debt | (8,180) | (8,439) | (8,276) | |||||||||||||||||
Add: Imperial’s share of equity company debt | 25 | 20 | 26 | |||||||||||||||||
Total capital employed | 26,593 | 26,931 | 26,628 | |||||||||||||||||
Total company sources: Debt and equity perspective | ||||||||||||||||||||
Notes and loans payable | 122 | 122 | 227 | |||||||||||||||||
Long-term debt | 4,033 | 5,054 | 4,957 | |||||||||||||||||
Shareholders’ equity | 22,413 | 21,735 | 21,418 | |||||||||||||||||
Add: Imperial’s share of equity company debt | 25 | 20 | 26 | |||||||||||||||||
Total capital employed | 26,593 | 26,931 | 26,628 |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
From the Consolidated statement of income | |||||||||||||||||
Net income (loss) | 7,340 | 2,479 | (1,857) | ||||||||||||||
Financing (after-tax) including Imperial’s share of equity companies | 55 | 40 | 52 | ||||||||||||||
Net income (loss) excluding financing | 7,395 | 2,519 | (1,805) | ||||||||||||||
Average capital employed | 26,762 | 26,780 | 28,059 | ||||||||||||||
Return on average capital employed (percent) – corporate total | 27.6 | 9.4 | (6.4) |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
From the Consolidated statement of cash flows | |||||||||||||||||
Cash flows from (used in) operating activities | 10,482 | 5,476 | 798 | ||||||||||||||
Proceeds from asset sales | 904 | 81 | 82 | ||||||||||||||
Total cash flows from (used in) operating activities and asset sales | 11,386 | 5,557 | 880 |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
From the Consolidated statement of income | |||||||||||||||||
Total expenses | 50,186 | 34,307 | 24,796 | ||||||||||||||
Less: | |||||||||||||||||
Purchases of crude oil and products | 37,742 | 23,174 | 13,293 | ||||||||||||||
Federal excise tax and fuel charge | 2,179 | 1,928 | 1,736 | ||||||||||||||
Financing | 60 | 54 | 64 | ||||||||||||||
Subtotal | 39,981 | 25,156 | 15,093 | ||||||||||||||
Imperial's share of equity company expenses | 71 | 61 | 64 | ||||||||||||||
Total operating costs | 10,276 | 9,212 | 9,767 |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
From the Consolidated statement of income | |||||||||||||||||
Production and manufacturing | 7,404 | 6,316 | 5,535 | ||||||||||||||
Selling and general | 882 | 784 | 741 | ||||||||||||||
Depreciation and depletion (includes impairments) | 1,897 | 1,977 | 3,293 | ||||||||||||||
Non-service pension and postretirement benefit | 17 | 42 | 121 | ||||||||||||||
Exploration | 5 | 32 | 13 | ||||||||||||||
Subtotal | 10,205 | 9,151 | 9,703 | ||||||||||||||
Imperial's share of equity company expenses | 71 | 61 | 64 | ||||||||||||||
Total operating costs | 10,276 | 9,212 | 9,767 |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
From the Consolidated statement of income | |||||||||||||||||
Net income (loss) (U.S. GAAP) | 7,340 | 2,479 | (1,857) | ||||||||||||||
Less identified items included in Net income (loss) | |||||||||||||||||
Gain/(loss) on sale of assets | 208 | — | — | ||||||||||||||
Impairments | — | — | (1,171) | ||||||||||||||
Subtotal of identified items | 208 | — | (1,171) | ||||||||||||||
Net income (loss) excluding identified items | 7,132 | 2,479 | (686) |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
Net income (loss) (U.S. GAAP) | 7,340 | 2,479 | (1,857) | ||||||||||||||
Identified items1 included in Net income (loss) | |||||||||||||||||
Gain/(loss) on sale of assets | 208 | — | — | ||||||||||||||
Impairments | — | — | (1,171) | ||||||||||||||
Subtotal of identified items1 | 208 | — | (1,171) | ||||||||||||||
Net income (loss) excluding identified items1 | 7,132 | 2,479 | (686) |
1 non-GAAP financial measure - see "Frequently used terms" section on page 43 for definition and reconciliation. |
1 non-GAAP financial measure - see "Frequently used terms" section on page 43 for definition and reconciliation. |
Canadian dollars, unless otherwise noted | 2022 | 2021 | 2020 | ||||||||||||||
West Texas Intermediate (US$) (per barrel) | 94.36 | 68.05 | 39.26 | ||||||||||||||
Western Canada Select (US$) (per barrel) | 76.28 | 54.96 | 26.87 | ||||||||||||||
WTI/WCS Spread (US$) (per barrel) | 18.08 | 13.09 | 12.39 | ||||||||||||||
Bitumen (per barrel) | 84.67 | 57.91 | 25.69 | ||||||||||||||
Synthetic crude oil (per barrel) | 125.46 | 81.61 | 49.76 | ||||||||||||||
Conventional crude oil (per barrel) | 97.45 | 59.84 | 29.34 | ||||||||||||||
Natural gas liquids (per barrel) | 64.92 | 35.87 | 13.85 | ||||||||||||||
Natural gas (per thousand cubic feet) | 5.69 | 3.83 | 1.90 | ||||||||||||||
Average foreign exchange rate (US$) | 0.77 | 0.80 | 0.75 |
thousands of barrels per day | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||||
gross | net | gross | net | gross | net | ||||||||||||||||||||||||||||||
Bitumen | 316 | 263 | 326 | 292 | 290 | 279 | |||||||||||||||||||||||||||||
Synthetic crude oil (b) | 77 | 63 | 71 | 62 | 69 | 68 | |||||||||||||||||||||||||||||
Conventional crude oil | 8 | 8 | 10 | 9 | 11 | 10 | |||||||||||||||||||||||||||||
Total crude oil production | 401 | 334 | 407 | 363 | 370 | 357 | |||||||||||||||||||||||||||||
NGLs available for sale | 1 | 1 | 1 | 1 | 2 | 2 | |||||||||||||||||||||||||||||
Total crude oil and NGL production | 402 | 335 | 408 | 364 | 372 | 359 | |||||||||||||||||||||||||||||
Bitumen sales, including diluent (c) | 424 | 451 | 401 | ||||||||||||||||||||||||||||||||
NGL sales (d) | 1 | — | 2 |
millions of cubic feet per day | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||||
gross | net | gross | net | gross | net | ||||||||||||||||||||||||||||||
Production (e) (f) | 85 | 83 | 120 | 115 | 154 | 150 | |||||||||||||||||||||||||||||
Production available for sale (g) | 50 | 81 | 115 | ||||||||||||||||||||||||||||||||
(a)Volume per day metrics are calculated by dividing the volume for the period by the number of calendar days in the period. Gross production is the company’s share of production (excluding purchases) before deduction of the mineral owners’ or governments’ share or both. (b)The company’s synthetic crude oil production volumes were from the company’s share of production volumes in the Syncrude joint venture and include immaterial amounts of bitumen and other products exported to the operator's facilities using an existing interconnect pipeline. (c)Diluent is natural gas condensate or other light hydrocarbons added to crude bitumen to facilitate transportation to market by pipeline and rail. (d)2021 NGL sales round to 0. (e)Gross production of natural gas includes amounts used for internal consumption with the exception of the amounts re-injected. (f)Net production is gross production less the mineral owners’ or governments’ share or both. Net production reported in the above table is consistent with production quantities in the net proved reserves disclosure. (g)Includes sales of the company’s share of net production and excludes amounts used for internal consumption. |
thousands of barrels per day (a) | 2022 | 2021 | 2020 | ||||||||||||||
Total refinery throughput (b) | 418 | 379 | 340 | ||||||||||||||
Rated capacity at December 31 (c) | 433 | 428 | 428 | ||||||||||||||
Utilization of total refinery capacity (percent) | 98 | 89 | 80 | ||||||||||||||
(a)Volume per day metrics are calculated by dividing the volume for the period by the number of calendar days in the period. (b)Refinery throughput is the volume of crude oil and feedstocks that is processed in the refinery atmospheric distillation units. (c)Rated capacities are based on definite specifications as to types of crude oil and feedstocks that are processed in the refinery atmospheric distillation units, the products to be obtained and the refinery process, adjusted to include an estimated allowance for normal maintenance shutdowns. Accordingly, actual capacities may be higher or lower than rated capacities due to changes in refinery operation and the type of crude oil available for processing. |
thousands of barrels per day (a) | 2022 | 2021 | 2020 | ||||||||||||||
Gasolines | 229 | 224 | 215 | ||||||||||||||
Heating, diesel and jet fuels | 176 | 160 | 146 | ||||||||||||||
Lube oils and other products | 47 | 45 | 40 | ||||||||||||||
Heavy fuel oils | 23 | 27 | 20 | ||||||||||||||
Net petroleum product sales | 475 | 456 | 421 | ||||||||||||||
(a)Volume per day metrics are calculated by dividing the volume for the period by the number of calendar days in the period. |
1 In 2021, the company recorded an unfavourable $74 million ($82 million, before tax) inventory adjustment (including the proportionate share of LIFO changes) related to reconciliations of additives and products inventory at equity and third-party terminals. The out-of-period impact of $57 million ($63 million, before tax) occurred over a number of years, and has been resolved. |
thousands of tonnes | 2022 | 2021 | 2020 | ||||||||||||||
Polymers and basic chemicals | 635 | 599 | 574 | ||||||||||||||
Intermediates | 207 | 232 | 175 | ||||||||||||||
Total petrochemical sales | 842 | 831 | 749 |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
Net income (loss) | (131) | (172) | (170) |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
Cash provided by (used in) | |||||||||||||||||
Operating activities | 10,482 | 5,476 | 798 | ||||||||||||||
Investing activities | (618) | (1,012) | (802) | ||||||||||||||
Financing activities | (8,268) | (3,082) | (943) | ||||||||||||||
Increase (decrease) in cash and cash equivalents | 1,596 | 1,382 | (947) | ||||||||||||||
Cash and cash equivalents at end of year | 3,749 | 2,153 | 771 |
millions of Canadian dollars, unless noted | 2022 | 2021 | 2020 | ||||||||||||||
Share repurchases | 6,395 | 2,245 | 274 | ||||||||||||||
Number of shares purchased (millions) (a) | 93.9 | 56.0 | 9.8 | ||||||||||||||
(a)Share repurchases were made under the company’s normal course issuer bid program, and substantial issuer bids that commenced on May 6, 2022 and November 4, 2022, and expired on June 10, 2022 and December 9, 2022, respectively. Includes shares purchased from Exxon Mobil Corporation concurrent with, but outside of, the normal course issuer bid, and by way of a proportionate tender under the company’s substantial issuer bids. |
millions of Canadian dollars, unless noted | 2022 | 2021 | 2020 | ||||||||||||||
Dividends paid | 851 | 706 | 649 | ||||||||||||||
Per share dividend paid (dollars) | 1.29 | 0.98 | 0.88 |
percent | |||||||||||||||||
At December 31 | 2022 | 2021 | 2020 | ||||||||||||||
Debt to capital (a) | 16 | 19 | 19 | ||||||||||||||
millions of Canadian dollars | 2022 | 2021 | |||||||||
Upstream (a) | 1,128 | 632 | |||||||||
Downstream | 295 | 476 | |||||||||
Chemical | 10 | 8 | |||||||||
Corporate and other | 57 | 24 | |||||||||
Total | 1,490 | 1,140 | |||||||||
(a)Exploration expenses included. |
millions of Canadian dollars, after-tax | |||||||||||
One dollar (U.S.) per barrel increase (decrease) in crude oil prices | + (-) | 105 | |||||||||
One dollar (U.S.) per barrel increase (decrease) in refining 2-1-1 margins (b) | + (-) | 140 | |||||||||
One cent decrease (increase) in the value of the Canadian dollar versus the U.S. dollar | + (-) | 170 | |||||||||
(a)Each sensitivity calculation shows the annual impact on net income resulting from a change in one factor, after tax and royalties, and holding all other factors constant. These sensitivities have been updated to reflect current market conditions. They may not apply proportionately to larger fluctuations. (b)The 2-1-1 crack spread is an indicator of the refining margin generated by converting two barrels of crude oil into one barrel of gasoline and one barrel of diesel. |
/s/ Bradley W. Corson | ||
Bradley W. Corson | ||
Chairman, president and chief executive officer | ||
(Principal executive officer) |
/s/ Daniel E. Lyons | ||
Daniel E. Lyons | ||
Senior vice-president, finance and administration, and controller | ||
(Principal accounting officer and principal financial officer) | ||
February 22, 2023 |
millions of Canadian dollars | |||||||||||||||||
For the years ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
Revenues and other income | |||||||||||||||||
Revenues (a) | |||||||||||||||||
Investment and other income (note 8, 18) | |||||||||||||||||
Total revenues and other income | |||||||||||||||||
Expenses | |||||||||||||||||
Exploration (note 15) | |||||||||||||||||
Purchases of crude oil and products (b) | |||||||||||||||||
Production and manufacturing (c) (note 11) | |||||||||||||||||
Selling and general (c) | |||||||||||||||||
Federal excise tax and fuel charge | |||||||||||||||||
Depreciation and depletion (includes impairments) (note 2, 11) | |||||||||||||||||
Non-service pension and postretirement benefit | |||||||||||||||||
Financing (d) (note 12) | |||||||||||||||||
Total expenses | |||||||||||||||||
Income (loss) before income taxes | ( | ||||||||||||||||
Income taxes (note 3) | ( | ||||||||||||||||
Net income (loss) | ( | ||||||||||||||||
Per share information (Canadian dollars) | |||||||||||||||||
Net income (loss) per common share - basic (note 10) | ( | ||||||||||||||||
Net income (loss) per common share - diluted (note 10) | ( | ||||||||||||||||
(a) Amounts from related parties included in revenues, (note 16). | |||||||||||||||||
(b) Amounts to related parties included in purchases of crude oil and products, (note 16). | |||||||||||||||||
(c) Amounts to related parties included in production and manufacturing, and selling and general expenses, (note 16). | |||||||||||||||||
(d) Amounts to related parties included in financing, (note 16). | |||||||||||||||||
The information in the notes to consolidated financial statements is an integral part of these statements. |
millions of Canadian dollars | |||||||||||||||||
For the years ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
Net income (loss) | ( | ||||||||||||||||
Other comprehensive income (loss), net of income taxes | |||||||||||||||||
Postretirement benefits liability adjustment (excluding amortization) | ( | ||||||||||||||||
Amortization of postretirement benefits liability adjustment included in net benefit costs | |||||||||||||||||
Total other comprehensive income (loss) | ( | ||||||||||||||||
Comprehensive income (loss) | ( | ||||||||||||||||
The information in the notes to consolidated financial statements is an integral part of these statements. |
millions of Canadian dollars | |||||||||||
At December 31 | 2022 | 2021 | |||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | |||||||||||
Accounts receivable - net (a) | |||||||||||
Inventories of crude oil and products (note 11) | |||||||||||
Materials, supplies and prepaid expenses | |||||||||||
Total current assets | |||||||||||
Investments and long-term receivables (b) | |||||||||||
Property, plant and equipment, | |||||||||||
less accumulated depreciation and depletion (note 2, 18) | |||||||||||
Goodwill | |||||||||||
Other assets, including intangibles - net | |||||||||||
Total assets | |||||||||||
Liabilities | |||||||||||
Current liabilities | |||||||||||
Notes and loans payable (note 12) | |||||||||||
Accounts payable and accrued liabilities (a) (note 11) | |||||||||||
Income taxes payable | |||||||||||
Total current liabilities | |||||||||||
Long-term debt (c) (note 14) | |||||||||||
Other long-term obligations (note 5) | |||||||||||
Deferred income tax liabilities (note 3) | |||||||||||
Total liabilities | |||||||||||
Commitments and contingent liabilities (note 9) | |||||||||||
Shareholders’ equity | |||||||||||
Common shares at stated value (d) (note 10) | |||||||||||
Earnings reinvested | |||||||||||
Accumulated other comprehensive income (loss) (note 17) | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | |||||||||||
(a)Accounts receivable - net included net amounts receivable from related parties of $ (b)Investments and long-term receivables included amounts from related parties of $ (c)Long-term debt included amounts to related parties of $ (d)Number of common shares authorized and outstanding were | |||||||||||
The information in the notes to consolidated financial statements is an integral part of these statements. |
/s/ Bradley W. Corson | /s/ Daniel E. Lyons | ||||
Bradley W. Corson | Daniel E. Lyons | ||||
Chairman, president and | Senior vice-president | ||||
chief executive officer | finance and administration, and controller |
millions of Canadian dollars | |||||||||||||||||
At December 31 | 2022 | 2021 | 2020 | ||||||||||||||
Common shares at stated value (note 10) | |||||||||||||||||
At beginning of year | |||||||||||||||||
Share purchases at stated value | ( | ( | ( | ||||||||||||||
At end of year | |||||||||||||||||
Earnings reinvested | |||||||||||||||||
At beginning of year | |||||||||||||||||
Net income (loss) for the year | ( | ||||||||||||||||
Share purchases in excess of stated value | ( | ( | ( | ||||||||||||||
Dividends declared | ( | ( | ( | ||||||||||||||
Cumulative effect of accounting change | ( | ||||||||||||||||
At end of year | |||||||||||||||||
Accumulated other comprehensive income (loss) (note 17) | |||||||||||||||||
At beginning of year | ( | ( | ( | ||||||||||||||
Other comprehensive income (loss) | ( | ||||||||||||||||
At end of year | ( | ( | ( | ||||||||||||||
Shareholders’ equity at end of year | |||||||||||||||||
The information in the notes to consolidated financial statements is an integral part of these statements. |
millions of Canadian dollars | |||||||||||||||||
For the years ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
Operating activities | |||||||||||||||||
Net income (loss) | ( | ||||||||||||||||
Adjustments for non-cash items: | |||||||||||||||||
Depreciation and depletion (includes impairments) (note 2) | |||||||||||||||||
Impairment of intangible assets (note 11) | |||||||||||||||||
(Gain) loss on asset sales (note 8, 18) | ( | ( | ( | ||||||||||||||
Deferred income taxes and other | ( | ( | |||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Accounts receivable | ( | ( | |||||||||||||||
Inventories, materials, supplies and prepaid expenses | ( | ||||||||||||||||
Income taxes payable | ( | ||||||||||||||||
Accounts payable and accrued liabilities | ( | ||||||||||||||||
All other items - net (b) | ( | ||||||||||||||||
Cash flows from (used in) operating activities | |||||||||||||||||
Investing activities | |||||||||||||||||
Additions to property, plant and equipment | ( | ( | ( | ||||||||||||||
Proceeds from asset sales (note 8, 18) | |||||||||||||||||
Additional investments | ( | ||||||||||||||||
Loans to equity companies - net | ( | ||||||||||||||||
Cash flows from (used in) investing activities | ( | ( | ( | ||||||||||||||
Financing activities | |||||||||||||||||
Short-term debt - net (note 12) | ( | ||||||||||||||||
Long-term debt - reduction (note 14) | ( | ||||||||||||||||
Finance lease obligations - reduction (note 14) | ( | ( | ( | ||||||||||||||
Dividends paid | ( | ( | ( | ||||||||||||||
Common shares purchased (note 10) | ( | ( | ( | ||||||||||||||
Cash flows from (used in) financing activities | ( | ( | ( | ||||||||||||||
Increase (decrease) in cash | ( | ||||||||||||||||
Cash and cash equivalents at beginning of year | |||||||||||||||||
Cash and cash equivalents at end of year (a) | |||||||||||||||||
(a) Cash is composed of cash in bank and cash equivalents at cost. Cash equivalents are all highly liquid securities with maturity of three months or less. | |||||||||||||||||
(b) Included contributions to registered pension plans. | ( | ( | ( | ||||||||||||||
Income taxes (paid) refunded. | ( | ( | |||||||||||||||
Interest (paid), net of capitalization. | ( | ( | ( |
Upstream | Downstream | Chemical | |||||||||||||||||||||||||||
millions of Canadian dollars | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | ||||||||||||||||||||
Revenues and other income | |||||||||||||||||||||||||||||
Revenues (a) (b) | |||||||||||||||||||||||||||||
Intersegment sales (c) | |||||||||||||||||||||||||||||
Investment and other income (note 8, 18) | |||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Exploration (note 15) | |||||||||||||||||||||||||||||
Purchases of crude oil and products (c) (note 11) | |||||||||||||||||||||||||||||
Production and manufacturing (note 11) | |||||||||||||||||||||||||||||
Selling and general | |||||||||||||||||||||||||||||
Federal excise tax and fuel charge | |||||||||||||||||||||||||||||
Depreciation and depletion (d) (note 11) | |||||||||||||||||||||||||||||
Non-service pension and postretirement benefit | |||||||||||||||||||||||||||||
Financing (note 12) | |||||||||||||||||||||||||||||
Total expenses | |||||||||||||||||||||||||||||
Income (loss) before income taxes (note 11) | ( | ||||||||||||||||||||||||||||
Income tax expense (benefit) (note 3) | ( | ||||||||||||||||||||||||||||
Net income (loss) (c) (note 11) | ( | ||||||||||||||||||||||||||||
Cash flows from (used in) operating activities (c) | |||||||||||||||||||||||||||||
Capital and exploration expenditures (e) | |||||||||||||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||||||||||
Cost | |||||||||||||||||||||||||||||
Accumulated depreciation and depletion | ( | ( | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
Net property, plant and equipment (f) | |||||||||||||||||||||||||||||
Total assets (c) |
Corporate and other | Eliminations | Consolidated | |||||||||||||||||||||||||||
millions of Canadian dollars | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | ||||||||||||||||||||
Revenues and other income | |||||||||||||||||||||||||||||
Revenues (a) (b) | — | — | — | ||||||||||||||||||||||||||
Intersegment sales (c) | — | — | — | ( | ( | ( | — | — | — | ||||||||||||||||||||
Investment and other income (note 8, 18) | — | — | — | ||||||||||||||||||||||||||
( | ( | ( | |||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Exploration (note 15) | |||||||||||||||||||||||||||||
Purchases of crude oil and products (c) (note 11) | ( | ( | ( | ||||||||||||||||||||||||||
Production and manufacturing (note 11) | |||||||||||||||||||||||||||||
Selling and general | ( | ( | ( | ||||||||||||||||||||||||||
Federal excise tax and fuel charge | |||||||||||||||||||||||||||||
Depreciation and depletion (d) (note 11) | |||||||||||||||||||||||||||||
Non-service pension and postretirement benefit | |||||||||||||||||||||||||||||
Financing (note 12) | |||||||||||||||||||||||||||||
Total expenses | ( | ( | ( | ||||||||||||||||||||||||||
Income (loss) before income taxes (note 11) | ( | ( | ( | ( | |||||||||||||||||||||||||
Income tax expense (benefit) (note 3) | ( | ( | ( | ( | |||||||||||||||||||||||||
Net income (loss) (c) (note 11) | ( | ( | ( | ( | |||||||||||||||||||||||||
Cash flows from (used in) operating activities (c) | ( | ( | ( | ( | |||||||||||||||||||||||||
Capital and exploration expenditures (e) | |||||||||||||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||||||||||
Cost | |||||||||||||||||||||||||||||
Accumulated depreciation and depletion | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||
Net property, plant and equipment (f) | |||||||||||||||||||||||||||||
Total assets (c) | ( | ( | ( |
Revenues | |||||||||||
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||
Revenue from contracts with customers | |||||||||||
Revenue outside the scope of ASC 606 | |||||||||||
Total |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
Current income tax expense (benefit) (a) | ( | ||||||||||||||||
Deferred income tax expense (benefit) (a) | ( | ( | |||||||||||||||
Total income tax expense (benefit) (a) | ( | ||||||||||||||||
Statutory corporate tax rate (percent) | |||||||||||||||||
Increase (decrease) resulting from: | |||||||||||||||||
Enacted tax rate change (a) | |||||||||||||||||
Other (b) | ( | ( | |||||||||||||||
Effective income tax rate (percent) | |||||||||||||||||
(a)On June 28, 2019, the Alberta government enacted a (b)Other primarily relates to disposals, prior year adjustments and re-assessments. In 2022, the company's sale of its interests in XTO Energy Canada decreased the effective income tax rate by |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
Depreciation and amortization | |||||||||||||||||
Successful drilling and land acquisitions | |||||||||||||||||
Pension and benefits | ( | ( | ( | ||||||||||||||
Asset retirement obligation | ( | ( | ( | ||||||||||||||
Capitalized interest | |||||||||||||||||
LIFO inventory valuation | ( | ( | ( | ||||||||||||||
Tax loss carryforwards | ( | ( | ( | ||||||||||||||
Valuation allowance | |||||||||||||||||
Other | ( | ( | ( | ||||||||||||||
Net deferred income tax liabilities |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
Balance as of January 1 | |||||||||||||||||
Additions based on current year’s tax position | |||||||||||||||||
Additions for prior years’ tax positions | |||||||||||||||||
Settlements with tax authorities | ( | ( | ( | ||||||||||||||
Balance as of December 31 |
Pension benefits | Other postretirement benefits | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Assumptions used to determine benefit obligations at December 31 (percent) | |||||||||||||||||||||||
Discount rate | |||||||||||||||||||||||
Long-term rate of compensation increase | |||||||||||||||||||||||
millions of Canadian dollars | |||||||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||
Benefit obligation at January 1 | |||||||||||||||||||||||
Service cost | |||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Actuarial loss (gain) (a) | ( | ( | ( | ( | |||||||||||||||||||
Benefits paid (b) | ( | ( | ( | ( | |||||||||||||||||||
Benefit obligation at December 31 | |||||||||||||||||||||||
Accumulated benefit obligation at December 31 | |||||||||||||||||||||||
(a)Actuarial loss (gain) primarily driven by changes in the year-end discount rate and salary experience. (b)Benefit payments for funded and unfunded plans. |
Pension benefits | Other postretirement benefits | ||||||||||||||||||||||
millions of Canadian dollars | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||
Fair value at January 1 | |||||||||||||||||||||||
Actual return (loss) gain | ( | ||||||||||||||||||||||
Company contributions | |||||||||||||||||||||||
Benefits paid (a) | ( | ( | |||||||||||||||||||||
Fair value at December 31 | |||||||||||||||||||||||
Plan assets in excess of (less than) projected benefit obligation at December 31 | |||||||||||||||||||||||
Funded plans | |||||||||||||||||||||||
Unfunded plans | ( | ( | ( | ( | |||||||||||||||||||
Total (b) | ( | ( | ( | ||||||||||||||||||||
(a)Benefit payments for funded plans only. (b)Fair value of assets less projected benefit obligation shown above. |
Pension benefits | Other postretirement benefits | ||||||||||||||||||||||
millions of Canadian dollars | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Amounts recorded in the Consolidated balance sheet consist of: | |||||||||||||||||||||||
Other assets, including intangibles - net | |||||||||||||||||||||||
Current liabilities | ( | ( | ( | ( | |||||||||||||||||||
Other long-term obligations | ( | ( | ( | ( | |||||||||||||||||||
Total recorded | ( | ( | ( | ||||||||||||||||||||
Amounts recorded in accumulated other comprehensive income consist of: | |||||||||||||||||||||||
Net actuarial loss (gain) | ( | ||||||||||||||||||||||
Prior service cost | |||||||||||||||||||||||
Total recorded in accumulated other comprehensive income, before-tax | ( |
Pension benefits | Other postretirement benefits | ||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||
Assumptions used to determine net periodic benefit cost for years ended December 31 (percent) | |||||||||||||||||||||||||||||||||||
Discount rate | |||||||||||||||||||||||||||||||||||
Long-term rate of return on funded assets | |||||||||||||||||||||||||||||||||||
Long-term rate of compensation increase | |||||||||||||||||||||||||||||||||||
millions of Canadian dollars | |||||||||||||||||||||||||||||||||||
Components of net periodic benefit cost | |||||||||||||||||||||||||||||||||||
Service cost | |||||||||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ||||||||||||||||||||||||||||||||
Amortization of prior service cost | |||||||||||||||||||||||||||||||||||
Amortization of actuarial loss (gain) | |||||||||||||||||||||||||||||||||||
Net periodic benefit cost | |||||||||||||||||||||||||||||||||||
Changes in amounts recorded in accumulated other comprehensive income | |||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Amortization of net actuarial (loss) gain included in net periodic benefit cost | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Amortization of prior service cost included in net periodic benefit cost | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total recorded in other comprehensive income | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Total recorded in net periodic benefit cost and other comprehensive income, before-tax | ( | ( | ( | ( |
Total pension and other postretirement benefits | |||||||||||||||||
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
(Charge) credit to other comprehensive income, before-tax | ( | ||||||||||||||||
Deferred income tax (charge) credit (note 17) | ( | ( | |||||||||||||||
(Charge) credit to other comprehensive income, after-tax | ( |
Fair value measurements at December 31, 2022, using: | |||||||||||||||||||||||||||||
millions of Canadian dollars | Total | Level 1 | Level 2 | Level 3 | Net Asset Value | ||||||||||||||||||||||||
Asset class | |||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||
Canadian | |||||||||||||||||||||||||||||
Non-Canadian | |||||||||||||||||||||||||||||
Debt securities - Canadian | |||||||||||||||||||||||||||||
Corporate | |||||||||||||||||||||||||||||
Government | |||||||||||||||||||||||||||||
Asset backed | |||||||||||||||||||||||||||||
Equities – Venture capital | |||||||||||||||||||||||||||||
Cash | |||||||||||||||||||||||||||||
Total plan assets at fair value |
Fair value measurements at December 31, 2021, using: | |||||||||||||||||||||||||||||
millions of Canadian dollars | Total | Level 1 | Level 2 | Level 3 | Net Asset Value | ||||||||||||||||||||||||
Asset class | |||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||
Canadian | |||||||||||||||||||||||||||||
Non-Canadian | |||||||||||||||||||||||||||||
Debt securities - Canadian | |||||||||||||||||||||||||||||
Corporate | |||||||||||||||||||||||||||||
Government | |||||||||||||||||||||||||||||
Asset backed | |||||||||||||||||||||||||||||
Equities – Venture capital | |||||||||||||||||||||||||||||
Cash | |||||||||||||||||||||||||||||
Total plan assets at fair value |
Pension benefits | |||||||||||
millions of Canadian dollars | 2022 | 2021 | |||||||||
For funded pension plans with projected benefit obligation in excess of plan assets: (a) (b) | |||||||||||
Projected benefit obligation | |||||||||||
Fair value of plan assets | |||||||||||
Projected benefit obligation less fair value of plan assets | |||||||||||
For unfunded pension plans covered by book reserves: | |||||||||||
Projected benefit obligation | |||||||||||
Accumulated benefit obligation | |||||||||||
(a)In 2022, the fair value of plan assets exceeded the projected benefit obligation for both the company sponsored plan and its proportionate share of a joint venture sponsored plan. (b)In 2021, projected benefit obligation exceeded the fair value of plan assets only for the company’s proportionate share of a joint venture sponsored pension plan. |
millions of Canadian dollars | Pension benefits | Other postretirement benefits | |||||||||
2023 | |||||||||||
2024 | |||||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
2028 - 2032 |
millions of Canadian dollars | 2022 | 2021 | |||||||||
Employee retirement benefits (a) (note 4) | |||||||||||
Asset retirement obligations and other environmental liabilities (b) (c) | |||||||||||
Share-based incentive compensation liabilities (note 7) | |||||||||||
Operating lease liability (note 13) | |||||||||||
Other obligations | |||||||||||
Total other long-term obligations | |||||||||||
(a)Total recorded employee retirement benefits obligations also included $ (b)Total asset retirement obligations and other environmental liabilities also included $ (c)For 2022, the asset retirement obligations were discounted at |
millions of Canadian dollars | 2022 | 2021 | 2020 | |||||||||||||||||
Balance as at January 1 | ||||||||||||||||||||
Additions (deductions) | ||||||||||||||||||||
Accretion | ||||||||||||||||||||
Settlement | ( | ( | ( | |||||||||||||||||
Balance as at December 31 |
thousands of barrels | 2022 | 2021 | |||||||||
Crude | |||||||||||
Products | ( | ( |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
Revenues | ( | ( | |||||||||||||||
Purchases of crude oil and products | ( | ( | |||||||||||||||
Total | ( | ( |
At December 31, 2022 millions of Canadian dollars | |||||||||||||||||||||||||||||||||||||||||
Fair value | Effect of counterparty netting | Effect of collateral netting | Net carrying value | ||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||
Derivative assets (a) | ( | ||||||||||||||||||||||||||||||||||||||||
L | |||||||||||||||||||||||||||||||||||||||||
Derivative liabilities (b) | ( | ( | |||||||||||||||||||||||||||||||||||||||
(a)Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”, “Accounts receivable - net” and “Other assets, including intangibles - net”. (b)Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities” and “Other long-term obligations”. |
At December 31, 2021 millions of Canadian dollars | |||||||||||||||||||||||||||||||||||||||||
Fair value | Effect of counterparty netting | Effect of collateral netting | Net carrying value | ||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||
Derivative assets (a) | ( | ||||||||||||||||||||||||||||||||||||||||
L | |||||||||||||||||||||||||||||||||||||||||
Derivative liabilities (b) | ( | ( | |||||||||||||||||||||||||||||||||||||||
(a)Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”, “Accounts receivable - net” and “Other assets, including intangibles - net”. (b)Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities” and “Other long-term obligations”. |
Restricted stock units | Deferred share units | ||||||||||
Outstanding at January 1, 2022 | |||||||||||
Granted | |||||||||||
Vested / Exercised | ( | ||||||||||
Forfeited and cancelled | ( | ||||||||||
Outstanding at December 31, 2022 |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
Proceeds from asset sales | |||||||||||||||||
Book value of asset sales | |||||||||||||||||
Gain (loss) on asset sales, before tax (a) | |||||||||||||||||
Gain (loss) on asset sales, after tax (a) | |||||||||||||||||
(a)2022 included a gain of $ |
At December 31 | |||||||||||
thousands of shares | 2022 | 2021 | |||||||||
Authorized | |||||||||||
Common shares outstanding |
Thousands of shares | Millions of dollars | ||||||||||
Balance as at January 1, 2020 | |||||||||||
Issued under employee share-based awards | |||||||||||
Purchases at stated value | ( | ( | |||||||||
Balance as at December 31, 2020 | |||||||||||
Issued under employee share-based awards | |||||||||||
Purchases at stated value | ( | ( | |||||||||
Balance as at December 31, 2021 | |||||||||||
Issued under employee share-based awards | |||||||||||
Purchases at stated value | ( | ( | |||||||||
Balance as at December 31, 2022 |
2022 | 2021 | 2020 | |||||||||||||||
Net income (loss) per common share – basic | |||||||||||||||||
Net income (loss) (millions of Canadian dollars) | ( | ||||||||||||||||
Weighted-average number of common shares outstanding (millions of shares) | |||||||||||||||||
Net income (loss) per common share (dollars) | ( | ||||||||||||||||
Net income (loss) per common share – diluted | |||||||||||||||||
Net income (loss) (millions of Canadian dollars) | ( | ||||||||||||||||
Weighted-average number of common shares outstanding (millions of shares) | |||||||||||||||||
Effect of employee share-based awards (millions of shares) (a) | |||||||||||||||||
Weighted-average number of common shares outstanding, assuming dilution (millions of shares) | |||||||||||||||||
Net income (loss) per common share (dollars) | ( | ||||||||||||||||
Dividends per common share – declared (dollars) | |||||||||||||||||
(a)For 2020, the Net income (loss) per common share – diluted excludes the effect of |
millions of Canadian dollars | 2022 | 2021 | |||||||||
Crude oil | |||||||||||
Petroleum products | |||||||||||
Chemical products | |||||||||||
Other | |||||||||||
Total |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
Debt-related interest (a) | |||||||||||||||||
Capitalized interest | ( | ( | ( | ||||||||||||||
Net interest expense | |||||||||||||||||
Other interest | |||||||||||||||||
Total financing (b) | |||||||||||||||||
(a)Includes related party interest with ExxonMobil. (b)The weighted-average interest rate on short-term borrowings in 2022 was |
2022 | 2021 | 2020 | |||||||||||||||||||||||||||
millions of Canadian dollars | Operating leases | Finance leases | Operating leases | Finance leases | Operating leases | Finance leases | |||||||||||||||||||||||
Operating lease cost | |||||||||||||||||||||||||||||
Short-term and other (net of sublease rental income) | |||||||||||||||||||||||||||||
Amortization of right of use assets | |||||||||||||||||||||||||||||
Interest on lease liabilities | |||||||||||||||||||||||||||||
Total lease cost |
2022 | 2021 | ||||||||||||||||
millions of Canadian dollars | Operating leases | Finance leases | Operating leases | Finance leases | |||||||||||||
Right of use assets | |||||||||||||||||
accumulated depreciation and depletion | |||||||||||||||||
Total right of use assets | |||||||||||||||||
Lease liability due within one year | |||||||||||||||||
Included in Notes and loans payable | |||||||||||||||||
L | |||||||||||||||||
Included in Long-term debt | |||||||||||||||||
Total lease liability | |||||||||||||||||
Weighted-average remaining lease term (years) | |||||||||||||||||
Weighted-average discount rate (percent) |
2022 | |||||||||||
millions of Canadian dollars | Operating leases | Finance leases | |||||||||
Maturity analysis of lease liabilities | |||||||||||
2023 | |||||||||||
2024 | |||||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
2028 and beyond | |||||||||||
Total lease payments | |||||||||||
Discount to present value | ( | ( | |||||||||
Total lease liability |
2022 | 2021 | 2020 | ||||||||||||||||||||||||
millions of Canadian dollars | Operating leases | Finance leases | Operating leases | Finance leases | Operating leases | Finance leases | ||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||||||||
Non-cash right of use assets recorded for lease liabilities | ||||||||||||||||||||||||||
In exchange for lease liabilities during the year |
At December 31 | |||||||||||
millions of Canadian dollars | 2022 | 2021 | |||||||||
Long-term debt (a) (b) | |||||||||||
Finance leases (c) | |||||||||||
Total long-term debt | |||||||||||
(a)Borrowed under an existing agreement with an affiliated company of ExxonMobil that provides for a long-term, variable-rate, Canadian dollar loan from ExxonMobil to the company of up to $ (b)During the third quarter of 2022, the company decreased its long-term debt by $ (c)Finance leases are primarily associated with transportation facilities and services agreements. The average imputed interest rate was |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
Balance at January 1 | ( | ( | ( | ||||||||||||||
Postretirement benefits liability adjustment: | |||||||||||||||||
Current period change excluding amounts reclassified from accumulated other comprehensive income | ( | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | |||||||||||||||||
Balance at December 31 | ( | ( | ( |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
Amortization of postretirement benefits liability adjustment included in net benefit cost (a) | ( | ( | ( | ||||||||||||||
(a) This accumulated other comprehensive income component is included in the computation of net periodic benefit cost (note 4). |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
Postretirement benefits liability adjustments: | |||||||||||||||||
Postretirement benefits liability adjustment (excluding amortization) | ( | ||||||||||||||||
Amortization of postretirement benefits liability adjustment included in net benefit cost | |||||||||||||||||
Total | ( |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
Revenue | |||||||||||||||||
Sales to third parties (a) | 7,154 | 5,081 | 2,066 | ||||||||||||||
Transfers (a) (b) | 4,182 | 3,037 | 1,777 | ||||||||||||||
11,336 | 8,118 | 3,843 | |||||||||||||||
Production expenses | 5,521 | 4,728 | 3,977 | ||||||||||||||
Exploration expenses | 5 | 32 | 13 | ||||||||||||||
Depreciation and depletion (includes impairments) | 1,467 | 1,579 | 2,857 | ||||||||||||||
Income taxes | 1,030 | 457 | (678) | ||||||||||||||
Results of operations | 3,313 | 1,322 | (2,326) |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
Property costs (c) | |||||||||||||||||
Proved | — | — | — | ||||||||||||||
Unproved | — | — | — | ||||||||||||||
Exploration costs | 5 | 32 | 13 | ||||||||||||||
Development costs | 1,602 | 576 | 816 | ||||||||||||||
Total costs incurred in property acquisitions, exploration and development activities | 1,607 | 608 | 829 | ||||||||||||||
(a)Sales to third parties or transfers do not include the sale of natural gas and natural gas liquids purchased for resale, as well as royalty payments or diluent costs. These items are reported gross in note 2 in “Revenues”, “Intersegment sales” and in “Purchases of crude oil and products”. (b)Sales of crude oil to consolidated affiliates are at market value, using posted field prices. Sales of natural gas liquids to consolidated affiliates are at prices estimated to be obtainable in a competitive, arm’s-length transaction. (c)“Property costs” are payments for rights to explore for petroleum and natural gas and for purchased reserves (acquired tangible and intangible assets such as gas plants, production facilities and producing-well costs are included under “producing assets”). “Proved” represents areas where successful drilling has delineated a field capable of production. “Unproved” represents all other areas. |
millions of Canadian dollars | 2022 | 2021 | |||||||||
Property costs (a) | |||||||||||
Proved | 1,840 | 2,045 | |||||||||
Unproved | 493 | 2,468 | |||||||||
Producing assets | 39,075 | 39,926 | |||||||||
Incomplete construction | 2,375 | 1,762 | |||||||||
Total capitalized cost | 43,783 | 46,201 | |||||||||
Accumulated depreciation and depletion | (18,512) | (20,112) | |||||||||
Net capitalized costs | 25,271 | 26,089 | |||||||||
(a)“Property costs” are payments for rights to explore for petroleum and natural gas and for purchased reserves (acquired tangible and intangible assets such as gas plants, production facilities and producing-well costs are included under “producing assets”). “Proved” represents areas where successful drilling has delineated a field capable of production. “Unproved” represents all other areas. |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
Future cash flows | 198,923 | 161,577 | 23,911 | ||||||||||||||
Future production costs | (104,765) | (101,580) | (18,787) | ||||||||||||||
Future development costs | (23,392) | (21,903) | (6,096) | ||||||||||||||
Future income taxes | (16,872) | (8,192) | (155) | ||||||||||||||
Future net cash flows | 53,894 | 29,902 | (1,127) | ||||||||||||||
Annual discount of 10 percent for estimated timing of cash flows | (28,340) | (15,732) | 1,065 | ||||||||||||||
Discounted future cash flows | 25,554 | 14,170 | (62) |
millions of Canadian dollars | 2022 | 2021 | 2020 | ||||||||||||||
Balance at beginning of year | 14,170 | (62) | 5,511 | ||||||||||||||
Changes resulting from: | |||||||||||||||||
Sales and transfers of oil and gas produced, net of production costs | (6,113) | (3,841) | (447) | ||||||||||||||
Net changes in prices, development costs and production costs (a) | 23,215 | 7,681 | (8,661) | ||||||||||||||
Extensions, discoveries, additions and improved recovery, less related costs | 664 | 52 | 114 | ||||||||||||||
Development costs incurred during the year | 1,160 | 650 | 563 | ||||||||||||||
Revisions of previous quantity estimates | (4,431) | 13,482 | 459 | ||||||||||||||
Accretion of discount | 1,439 | 24 | 623 | ||||||||||||||
Net change in income taxes | (4,550) | (3,816) | 1,776 | ||||||||||||||
Net change | 11,384 | 14,232 | (5,573) | ||||||||||||||
Balance at end of year | 25,554 | 14,170 | (62) | ||||||||||||||
(a)SEC rules require the company’s reserves to be calculated on the basis of average first-day-of-the-month oil and natural gas prices during the reporting year. Future net cash flows are determined based on the net proved reserves as outlined in the “Net proved reserves table”. |
Liquids (b) | Natural gas | Synthetic crude oil | Bitumen | Total oil-equivalent basis (c) | |||||||||||||
millions of barrels | billions of cubic feet | millions of barrels | millions of barrels | millions of barrels | |||||||||||||
Beginning of year 2020 | 41 | 581 | 415 | 2,939 | 3,492 | ||||||||||||
Revisions | (29) | (348) | (79) | (2,757) | (2,923) | ||||||||||||
Improved recovery | — | — | — | — | — | ||||||||||||
(Sale) purchase of reserves in place | — | (10) | — | — | (2) | ||||||||||||
Discoveries and extensions | — | — | 133 | 1 | 134 | ||||||||||||
Production | (5) | (55) | (25) | (102) | (141) | ||||||||||||
End of year 2020 | 7 | 168 | 444 | 81 | 560 | ||||||||||||
Revisions | 13 | 165 | 17 | 2,239 | 2,297 | ||||||||||||
Improved recovery | — | — | — | 2 | 2 | ||||||||||||
(Sale) purchase of reserves in place | — | (10) | — | — | (2) | ||||||||||||
Discoveries and extensions | — | — | — | — | — | ||||||||||||
Production | (4) | (42) | (23) | (106) | (140) | ||||||||||||
End of year 2021 | 16 | 281 | 438 | 2,216 | 2,717 | ||||||||||||
Revisions | — | (41) | (62) | (363) | (432) | ||||||||||||
Improved recovery | — | — | — | — | — | ||||||||||||
(Sale) purchase of reserves in place | (9) | (141) | — | — | (32) | ||||||||||||
Discoveries and extensions | — | 2 | — | 67 | 67 | ||||||||||||
Production | (3) | (29) | (23) | (96) | (127) | ||||||||||||
End of year 2022 | 4 | 72 | 353 | 1,824 | 2,193 | ||||||||||||
Net proved developed reserves included above, as of | |||||||||||||||||
January 1, 2020 | 22 | 291 | 415 | 2,609 | 3,095 | ||||||||||||
December 31, 2020 | 7 | 167 | 311 | 76 | 422 | ||||||||||||
December 31, 2021 | 14 | 205 | 326 | 1,957 | 2,331 | ||||||||||||
December 31, 2022 | 4 | 60 | 248 | 1,691 | 1,953 | ||||||||||||
Net proved undeveloped reserves included above, as of | |||||||||||||||||
January 1, 2020 | 19 | 290 | — | 330 | 397 | ||||||||||||
December 31, 2020 | — | 1 | 133 | 5 | 138 | ||||||||||||
December 31, 2021 | 2 | 76 | 112 | 259 | 386 | ||||||||||||
December 31, 2022 | — | 12 | 105 | 133 | 240 | ||||||||||||
(a)Net reserves are the company’s share of reserves after deducting the shares of mineral owners or governments or both. All reported reserves are located in Canada. Reserves of natural gas are calculated at a pressure of 14.73 pounds per square inch at 60°F. (b)Liquids include crude, condensate and natural gas liquids (NGLs). NGL proved reserves are not material and are therefore included under liquids. (c)Gas converted to oil-equivalent at six million cubic feet per one thousand barrels. |
Proxy information section | |||||
Table of contents | Page | ||||
![]() | David W. Cornhill Calgary, Alberta, Canada Nonemployee director (independent) Age: 69 Director since: November 29, 2017 Skills and experience: Leadership of large organizations, Operations/technical, Project management, Strategy development, Environment and sustainability, Audit committee financial expert, Financial expertise, Executive compensation, Risk management | |||||||
Mr. Cornhill is a director of AltaGas Ltd., and is the chairman of the board of directors of TriSummit Utilities Inc. (formerly | ||||||||
AltaGas Canada Inc.), a privately owned corporation. Mr. Cornhill is a founding shareholder of AltaGas (and its predecessors). He was chief executive officer of AltaGas from 1994 to 2016 and served as interim co-chief executive officer from July to December 2018. Prior to forming AltaGas, Mr. Cornhill served in various capacities with Alberta and Southern Gas Co. Ltd, including vice-president, finance and administration, treasurer and president and chief operating officer. Mr. Cornhill is an experienced leader in the business community and is a strong supporter of communities and community collaboration, investment and enhancement. He is a member of the Ivey Advisory Board at Western University. Mr. Cornhill holds a BSc (Hons.) degree and a MBA degree from Western University, and he was awarded an honorary Doctor of Laws degree by the University in 2015. |
Imperial Oil Limited Ownership and Value of Equity (a) (b) (c) (d) | ||||||||||||||||||||||||||||||||
IMO Common Shares (% of class) | IMO Deferred Share Units (DSU) | Total Vested Equity Holdings (Common + DSU) | Restricted Stock Units (RSU) | Total Holdings * (Common + DSU + RSU) | ||||||||||||||||||||||||||||
Holdings as at February 8, 2023 (#) | 12,500 (<0.01%) | 13,308 | 25,808 | 16,900 | 42,708 | |||||||||||||||||||||||||||
Total market value as at February 8, 2023 ($) | 869,625 | 925,838 | 1,795,463 | 1,175,733 | 2,971,196 | |||||||||||||||||||||||||||
Year over year change (#) | 0 | 2,355 | 2,355 | 2,000 | 4,355 |
Board and Standing Committee Membership | Meeting Attendance 2022 | Public Company Directorships in the Past Five Years* | ||||||||||||
Imperial Oil Limited board | 8 of 8 (100%) | –AltaGas Ltd. (2010 – present) | ||||||||||||
Audit committee | 5 of 5 (100%) | –AltaGas Canada Inc. (2018 – 2020) | ||||||||||||
Executive resources committee | 6 of 7 (86%) | –Alterra Power Corp. (2008 – 2018) | ||||||||||||
Safety and sustainability committee | 3 of 4 (75%) | |||||||||||||
Nominations and corporate governance committee (Chair) | 6 of 6 (100%) | *no public board interlocks | ||||||||||||
Community collaboration and engagement committee | 1 of 1 (100%) |
Voting Results of 2022 Annual General Meeting: | Other Positions in the Past Five Years: (position, date office held, and status of employer) | |||||||||||||
Votes in Favour: | Votes Withheld: | –AltaGas Ltd., Chairman of the board (1994 – 2019) | ||||||||||||
540,497,248 (89.79%) | 61,434,933 (10.21%) | –AltaGas Ltd., Interim co-CEO (July to December 2018) |
![]() | Bradley W. Corson Calgary, Alberta, Canada Non-independent director Age: 61 Director since: September 17, 2019 Skills and experience: Leadership of large organizations, Operations/technical, Project management, Global experience, Strategy development, Environment and sustainability, Financial expertise, Government relations, Executive compensation, Risk management | |||||||
Mr. Corson was appointed as president and a director of Imperial Oil Limited on September 17, 2019, and assumed the | ||||||||
additional roles of chairman and chief executive officer on January 1, 2020. Mr. Corson has worked for Exxon Mobil Corporation and its predecessor companies since 1983 in various upstream and downstream assignments, with responsibilities in the United States, Hong Kong and London. In his previous position, Mr. Corson was vice-president of Exxon Mobil Corporation and president of ExxonMobil Upstream Ventures, a division of Exxon Mobil Corporation. |
Imperial Oil Limited Ownership and Value of Equity (a) (b) (c) (d) | ||||||||||||||||||||||||||||||||
IMO Common Shares (% of class) | IMO Deferred Share Units (DSU) | Total Vested Equity Holdings (Common + DSU) | Restricted Stock Units (RSU) | Total Holdings * (Common + DSU + RSU) | ||||||||||||||||||||||||||||
Holdings as at February 8, 2023 (#) | 0 | 0 | 0 | 323,600 | 323,600 | |||||||||||||||||||||||||||
Total market value as at February 8, 2023 ($) | 0 | 0 | 0 | 22,512,852 | 22,512,852 | |||||||||||||||||||||||||||
Year over year change (#) | 0 | 0 | 0 | 89,000 | 89,000 |
Board and Standing Committee Membership | Meeting Attendance 2022 | Public Company Directorships in the Past Five Years* | ||||||||||||
Imperial Oil Limited board (Chair) | 8 of 8 (100%) | None | ||||||||||||
Community collaboration and engagement committee | 1 of 1 (100%) | *no public board interlocks |
Voting Results of 2022 Annual General Meeting: | Other Positions in the Past Five Years: (position, date office held, and status of employer) | |||||||||||||
Votes in Favour: | Votes Withheld: | –President, Imperial Oil Limited (2019 – present) | ||||||||||||
586,247,361 (97.39%) | 15,684,820 (2.61%) | –President, ExxonMobil Upstream Ventures (2015 – 2019) (Affiliate) |
![]() | Matthew R. Crocker Spring, Texas, United States of America Non-independent director Age: 49 Director since: May 4, 2021 Skills and experience: Leadership of large organizations, Operations/technical, Project management, Global experience, Strategy development, Environment and sustainability, Financial expertise, Government relations, Executive compensation, Risk management | |||||||
Mr. Crocker is senior vice-president, product, strategy and new assets for ExxonMobil's Low Carbon Solutions business since | ||||||||
April, 2022 and is responsible for product development across the portfolio, creation and alignment on business strategies and has oversight for product execution and start-up of new assets. Mr. Crocker has also held leadership positions within refining, upstream business development, chemicals and controllers. Prior to his current position, Mr. Crocker was senior vice-president, fuels, at ExxonMobil Fuels and Lubricants Company, responsible for the global fuels value chain, from crude to customer. |
Imperial Oil Limited Ownership and Value of Equity (a) (b) (c) (d) | ||||||||||||||||||||||||||||||||
IMO Common Shares (% of class) | IMO Deferred Share Units (DSU) | Total Vested Equity Holdings (Common + DSU) | Restricted Stock Units (RSU) | Total Holdings * (Common + DSU + RSU) | ||||||||||||||||||||||||||||
Holdings as at February 8, 2023 (#) | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total market value as at February 8, 2023 ($) | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Year over year change (#) | 0 | 0 | 0 | 0 | 0 |
Board and Standing Committee Membership | Meeting Attendance 2022 | Public Company Directorships in the Past Five Years* | ||||||||||||
Imperial Oil Limited board | 8 of 8 (100%) | None | ||||||||||||
Executive resources committee | 7 of 7 (100%) | *no public board interlocks | ||||||||||||
Safety and sustainability committee | 4 of 4 (100%) | |||||||||||||
Nominations and corporate governance committee | 6 of 6 (100%) | |||||||||||||
Community collaboration and engagement committee | 1 of 1(100%) |
Voting Results of 2022 Annual General Meeting: | Other Positions in the Past Five Years: (position, date office held, and status of employer) | |||||||||||||
Votes in Favour: | Votes Withheld: | –Senior vice president, fuels, ExxonMobil Fuels & Lubricants Company, (2020 – Present) (Affiliate) | ||||||||||||
577,063,393 (95.87%) | 24,868,788 (4.13%) | –Vice-president, strategy and portfolio management, ExxonMobil Upstream Business Development Company (2019 – 2020) (Affiliate) | ||||||||||||
–Special assignment, strategy and portfolio management, ExxonMobil Upstream Business Development Company (2019) (Affiliate) | ||||||||||||||
–Vice-president, intermediates, performance derivatives, ExxonMobil Chemical Company (2017 – 2019) (Affiliate) |
![]() | Sharon R. Driscoll Vancouver, British Columbia, Canada Nonemployee director (independent) Age: 61 Director since: Not currently a member of the board; first nomination for election as director Skills and experience: Leadership of large organizations, Project management, Global experience, Strategy development, Environment and sustainability, Audit committee financial expert, Financial expertise, Executive compensation, Risk management | |||||||
Sharon Driscoll is the executive vice-president and advisor to the chief executive officer of Ritchie Bros. Auctioneers Incorporated. | ||||||||
Ms. Driscoll joined Ritchie Bros. in July 2015 as the chief financial officer where she led global financial operations including capital allocation, financing strategies, treasury operations, risk management, investor relations and regulatory compliance. Ms. Driscoll also served as Co-CEO in 2019 to support the company's planned CEO transition. Prior to joining Ritchie Bros., Ms. Driscoll served as the executive vice-president and chief financial officer for Katz Group Canada Ltd. from 2013 to 2015 and senior vice-president and chief financial officer at Sears Canada Inc. from 2008 to 2013. Ms. Driscoll is a Chartered Professional Accountant and has a Bachelor of Commerce (Honours) degree from Queen’s University. Ms. Driscoll also serves as a director of Empire Company Limited. |
Imperial Oil Limited Ownership and Value of Equity (a) (b) (c) (d) | ||||||||||||||||||||||||||||||||
IMO Common Shares (% of class) | IMO Deferred Share Units (DSU) | Total Vested Equity Holdings (Common + DSU) | Restricted Stock Units (RSU) | Total Holdings * (Common + DSU + RSU) | ||||||||||||||||||||||||||||
Holdings as at February 8, 2023 (#) | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total market value as at February 8, 2023 ($) | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Year over year change (#) | 0 | 0 | 0 | 0 | 0 |
Board and Standing Committee Membership | Meeting Attendance 2022 | Public Company Directorships in the Past Five Years* | ||||||||||||
Not currently a member of the board or any of its committees | n/a | –Empire Company Limited (2018 – Present) | ||||||||||||
*no public board interlocks | ||||||||||||||
Voting Results of 2022 Annual General Meeting: | Other Positions in the Past Five Years: (position, date office held, and status of employer) | |||||||||||||
Votes in Favour: n/a | Votes Withheld: n/a | –Ritchie Bros. Auctioneers Incorporated, Executive vice-president and advisor to CEO (2022 – present) | ||||||||||||
–Ritchie Bros. Auctioneers Incorporated, Chief financial officer (2015 - 2022) | ||||||||||||||
–Ritchie Bros. Auctioneers Incorporated, Chief financial officer and Co-chief executive officer (2019) | ||||||||||||||
![]() | John Floren Oakville, Ontario, Canada Nonemployee director (independent) Age: 64 Director since: Not currently a member of the board; first nomination for election as director Skills and experience: Leadership of large organizations, Operations/technical, Project management, Global experience, Strategy development, Environment and sustainability, Financial expertise, Government relations, Information technology/cybersecurity oversight, Executive compensation, Risk management | |||||||
Mr. Floren is the former president and chief executive officer of Methanex Corporation, and prior to that appointment held the | ||||||||
positions of senior vice-president, global marketing and logistics and regional director, marketing and logistics, North America. Mr. Floren was an employee of Methanex for approximately 22 years and has worked in the chemical industry for over 37 years. He currently serves as a director of West Fraser Timber Co. Ltd. Mr. Floren holds a Bachelor of Arts in Economics from the University of Manitoba and attended the Harvard Business School’s Program for Management Development, the International Executive Program at INSEAD and completed the Directors Education Program at the Institute of Corporate Directors. |
Imperial Oil Limited Ownership and Value of Equity (a) (b) (c) (d) | ||||||||||||||||||||||||||||||||
IMO Common Shares (% of class) | IMO Deferred Share Units (DSU) | Total Vested Equity Holdings (Common + DSU) | Restricted Stock Units (RSU) | Total Holdings * (Common + DSU + RSU) | ||||||||||||||||||||||||||||
Holdings as at February 8, 2023 (#) | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total market value as at February 8, 2023 ($) | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Year over year change (#) | 0 | 0 | 0 | 0 | 0 |
Board and Standing Committee Membership | Meeting Attendance 2022 | Public Company Directorships in the Past Five Years* | ||||||||||||
Not currently a member of the board or any of its committees | n/a | –West Fraser Timber Co. Ltd. (2016 – present) | ||||||||||||
–Methanex Corporation (2013 - 2022) | ||||||||||||||
*no public board interlocks | ||||||||||||||
Voting Results of 2022 Annual General Meeting: | Other Positions in the Past Five Years: (position, date office held, and status of employer) | |||||||||||||
Votes in Favour: n/a | Votes Withheld: n/a | –Methanex Corporation, President and chief executive officer (2013 – 2022) | ||||||||||||
![]() | Gary J. Goldberg Castle Pines, Colorado, United States of America Nonemployee director (independent) Age: 63 Director since: Not currently a member of the board; first nomination for election as director Skills and experience: Leadership of large organizations, Operations/technical, Project management, Global experience, Strategy development, Environment and sustainability, Financial expertise, Government relations, Executive compensation, Risk management | |||||||
Mr. Goldberg has more than 35 years of global experience in the mining industry, including in executive, operational and | ||||||||
strategic roles, and currently serves as a non-executive director of BHP Group Limited. Mr. Goldberg served as the chief executive officer of Newmont Corporation from 2013 to 2019, and prior to that, was president and chief executive officer of Rio Tinto Minerals. Mr. Goldberg was also a non-executive director of Port Waratah Coal Services Limited and Rio Tinto Zimbabwe, and served as vice-chair of the World Gold Council, treasurer of the International Council on Mining and Metals, and chair of the National Mining Association in the United States. |
Imperial Oil Limited Ownership and Value of Equity (a) (b) (c) (d) | ||||||||||||||||||||||||||||||||
IMO Common Shares (% of class) | IMO Deferred Share Units (DSU) | Total Vested Equity Holdings (Common + DSU) | Restricted Stock Units (RSU) | Total Holdings * (Common + DSU + RSU) | ||||||||||||||||||||||||||||
Holdings as at February 8, 2023 (#) | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total market value as at February 8, 2023 ($) | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Year over year change (#) | 0 | 0 | 0 | 0 | 0 |
Board and Standing Committee Membership | Meeting Attendance 2022 | Public Company Directorships in the Past Five Years* | ||||||||||||
Not currently a member of the board or any of its committees | n/a | –BHP Group Limited (2020 – present) | ||||||||||||
–Newmont Corporation (previously Newmont Mining Corporation) (2013 – 2019) | ||||||||||||||
*no public board interlocks | ||||||||||||||
Voting Results of 2022 Annual General Meeting: | Other Positions in the Past Five Years: (position, date office held, and status of employer) | |||||||||||||
Votes in Favour: | Votes Withheld: | –Newmont Corporation, Executive advisor (2019 – 2020) | ||||||||||||
n/a | n/a | –Newmont Corporation, Chief executive officer (2018 – 2019) | ||||||||||||
–Newmont Corporation, President and chief executive officer (2013 – 2018) | ||||||||||||||
![]() | Miranda C. Hubbs Toronto, Ontario, Canada Nonemployee director (independent) Age: 56 Director since: July 26, 2018 Skills and experience: Global experience, Strategy development, Environment and sustainability, Audit committee financial expert, Financial expertise, Information technology/cybersecurity oversight, Executive compensation, Risk management | |||||||
Ms. Hubbs is currently an independent director of Nutrien Ltd. and also serves as a director of PSP Investments (Public Sector | ||||||||
Pension Investment Board), New Self-Regulatory Organization of Canada and serves as vice-chair of the board of the Canadian Red Cross. Prior to retirement in 2011, Ms. Hubbs was executive vice president and managing director of McLean Budden, one of Canada’s leading investment managers. Ms. Hubbs holds a BSc from Western University and an MBA from Schulich School of Business at York University and is a CFA charterholder. Ms. Hubbs serves on the ICD Climate Strategy Advisory Board and the Global Risk Institute Sustainable Finance Advisory Committee, holds the Fundamentals of Sustainability Accounting credential from the Sustainability Accounting Standards Board, and has received her CERT Certificate in Cybersecurity Oversight issued by the Software Engineering Institute at Carnegie Mellon University. |
Imperial Oil Limited Ownership and Value of Equity (a) (b) (c) (d) | ||||||||||||||||||||||||||||||||
IMO Common Shares (% of class) | IMO Deferred Share Units (DSU) | Total Vested Equity Holdings (Common + DSU) | Restricted Stock Units (RSU) | Total Holdings * (Common + DSU + RSU) | ||||||||||||||||||||||||||||
Holdings as at February 8, 2023 (#) | 0 | 16,735 | 16,735 | 15,600 | 32,335 | |||||||||||||||||||||||||||
Total market value as at February 8, 2023 ($) | 0 | 1,164,254 | 1,164,254 | 1,085,292 | 2,249,546 | |||||||||||||||||||||||||||
Year over year change (#) | 0 | 2,352 | 2,352 | 3,300 | 5,652 |
Board and Standing Committee Membership | Meeting Attendance 2022 | Public Company Directorships in the Past Five Years* | ||||||||||||
Imperial Oil Limited board | 8 of 8 (100%) | –Nutrien Ltd. (2018 – present) | ||||||||||||
Audit committee | 5 of 5 (100%) | –Agrium Inc. (2016 – 2018) | ||||||||||||
Executive resources committee | 7 of 7 (100%) | *no public board interlocks | ||||||||||||
Safety and sustainability committee | 4 of 4 (100%) | |||||||||||||
Nominations and corporate governance committee | 6 of 6 (100%) | |||||||||||||
Community collaboration and engagement committee (Chair) | 1 of 1 (100%) |
Voting Results of 2022 Annual General Meeting: | Other Positions in the Past Five Years: (position, date office held, and status of employer) | |||||||||||||
Votes in Favour: | Votes Withheld: | None | ||||||||||||
596,301,725 (99.06%) | 5,630,456 (0.94%) |
Director | XOM Common Shares (#) | XOM Restricted Stock (#) (b) | Total Common Shares and Restricted Stock (#) | Total Market Value of Common Shares and Restricted Stock ($) (c) | ||||||||||||||||||||||
B.W. Corson | 120,676 | 73,850 | 194,526 | 29,759,204 | ||||||||||||||||||||||
M.R. Crocker | 15,534 | 128,400 | 143,934 | 22,019,479 | ||||||||||||||||||||||
D.S. Sutherland | 5,730 | — | 5,730 | 876,594 |
Table of contents | |||||
2022 Corporate governance highlights |
Corporate governance at a glance | ||||||||
Controlled company | Yes | |||||||
Size of board | 7 | |||||||
Number of independent directors (board and nominees) | 5 | |||||||
Women on board (board and nominees) | 2 | |||||||
Average attendance of directors at board and committee meetings | 99% | |||||||
Independent chair of the executive sessions | Yes | |||||||
In camera sessions of independent directors at every board meeting | Yes | |||||||
Independent status of audit committee | 100% | |||||||
Audit committee members financially literate | All | |||||||
Independent status of executive resources committee | 83% | |||||||
Independent status of nominations and corporate governance committee | 83% | |||||||
Majority of independent directors on all committees | Yes | |||||||
Individual director elections | Yes | |||||||
Average tenure of director nominees (approximate) | 2 years | |||||||
Average age of director nominees (approximate) | 60 years | |||||||
Mandatory retirement age | 72 years | |||||||
Separate board chair and CEO | No | |||||||
Number of board interlocks | None | |||||||
No director serves on more than two boards of another reporting issuer | Yes | |||||||
Share ownership requirements for independent directors | Yes | |||||||
Share ownership requirements for chairman and chief executive officer | Yes | |||||||
Board orientation and education program | Yes | |||||||
Code of business conduct and ethics | Yes | |||||||
Board and committee charters | Yes | |||||||
Position descriptions for the chairman and chief executive officer and the chair of each committee | Yes | |||||||
Skills matrix for directors | Yes | |||||||
Annual board evaluation process | Yes | |||||||
Annual advisory vote on executive compensation | No | |||||||
Dual-class shares | No | |||||||
Change of control agreements | No |
The company continually reviews its governance practices and monitors regulatory changes. |
Name of director nominee | Years of service on the board | Year of expected retirement from the board for independent directors | ||||||||||||
D.W. Cornhill | 5 years | 2026 | ||||||||||||
B.W. Corson | 3 years | - | ||||||||||||
M.R. Crocker | 2 years | - | ||||||||||||
S.R. Driscoll (a) | - | 2034 | ||||||||||||
J. Floren (a) | - | 2031 | ||||||||||||
G.J. Goldberg (a) | - | 2031 | ||||||||||||
M.C. Hubbs | 4 years | 2039 |
Our directors bring a wide range of skills, diversity and experience. |
D.W. Cornhill | B.W. Corson | M.R. Crocker | S.R. Driscoll (a) | J. Floren (a) | G.J. Goldberg (a) | K.T. Hoeg (b) | M.C. Hubbs | J.M. Mintz (b) | D.S. Sutherland (b) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Leadership of large organizations | ü | ü | ü | ü | ü | ü | ü | ü | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operations / technical | ü | ü | ü | ü | ü | ü | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Project management | ü | ü | ü | ü | ü | ü | ü | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global experience | ü | ü | ü | ü | ü | ü | ü | ü | ü | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Strategy development | ü | ü | ü | ü | ü | ü | ü | ü | ü | ü | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Environment and sustainability | ü | ü | ü | ü | ü | ü | ü | ü | ü | ü | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Audit committee financial expert | ü | ü | ü | ü | ü | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial expertise | ü | ü | ü | ü | ü | ü | ü | ü | ü | ü | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Government relations | ü | ü | ü | ü | ü | ü | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information technology / cybersecurity oversight | ü | ü | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Executive compensation | ü | ü | ü | ü | ü | ü | ü | ü | ü | ü | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk management | ü | ü | ü | ü | ü | ü | ü | ü | ü | ü |
Five out of seven of the director nominees are independent. |
Name of director and nominee | Management | Independent | Not independent | Reason for non-independent status | ||||||||||||||||||||||
D.W. Cornhill | ü | |||||||||||||||||||||||||
B.W. Corson | ü | ü | B.W. Corson is a director and chairman, president and chief executive officer of Imperial Oil Limited. | |||||||||||||||||||||||
M.R. Crocker | ü | M.R. Crocker is an employee of Exxon Mobil Corporation. | ||||||||||||||||||||||||
S.R. Driscoll (a) | ü | |||||||||||||||||||||||||
J. Floren (a) | ü | |||||||||||||||||||||||||
G G.J. Goldberg (a) | ü | |||||||||||||||||||||||||
K.T. Hoeg (b) | ü | |||||||||||||||||||||||||
M.C. Hubbs | ü | |||||||||||||||||||||||||
J.M. Mintz (b) | ü | |||||||||||||||||||||||||
D.S. Sutherland (b) | ü |
Each standing committee is chaired by a different independent director and all of the independent directors are members of each committee. |
Director | Nominations and corporate governance committee | Audit committee (b) | Safety and sustainability committee | Executive resources committee | Community collaboration and engagement committee | |||||||||||||||||||||||||||
D.W. Cornhill (c) | ü Chair | ü | ü | ü | ü | |||||||||||||||||||||||||||
B.W. Corson (a) | — | — | — | — | ü | |||||||||||||||||||||||||||
M.R. Crocker (a) | ü | — | ü | ü | ü | |||||||||||||||||||||||||||
K.T. Hoeg (c) | ü | ü Chair | ü | ü | ü | |||||||||||||||||||||||||||
M.C. Hubbs (c) | ü | ü | ü | ü | ü Chair | |||||||||||||||||||||||||||
J.M. Mintz | ü | ü | ü Chair | ü | ü | |||||||||||||||||||||||||||
D.S. Sutherland (c) | ü | ü | ü | ü Chair | ü |
Board 8 | ||||||||||||||||||||||||||
Audit committee | Executive resources committee | Safety and sustainability committee | Nominations and corporate governance committee | Community collaboration and engagement committee | ||||||||||||||||||||||
5 | 7 | 4 | 6 | 1 |
99% board and standing committee meeting attendance from all members. |
Director | Board | Audit committee | Executive resources committee | Safety and sustainability committee (a) | Nominations and corporate governance committee | Community collaboration and engagement committee | Annual meeting | Total | Percentage by director | ||||||||||||||||||||||||||||||||||||||||||||||||||
D.W. Cornhill | 8 of 8 | 5 of 5 | 6 of 7 | 3 of 4 | 6 of 6 (chair) | 1 of 1 | 1 of 1 | 30 of 32 | 94% | ||||||||||||||||||||||||||||||||||||||||||||||||||
B.W. Corson | 8 of 8 (chair) | — | — | — | — | 1 of 1 | 1 of 1 | 10 of 10 | 100% | ||||||||||||||||||||||||||||||||||||||||||||||||||
M.R. Crocker | 8 of 8 | — | 7 of 7 | 4 of 4 | 6 of 6 | 1 of 1 | 1 of 1 | 27 of 27 | 100% | ||||||||||||||||||||||||||||||||||||||||||||||||||
K.T. Hoeg | 8 of 8 | 5 of 5 (chair) | 7 of 7 | 4 of 4 | 6 of 6 | 1 of 1 | 1 of 1 | 32 of 32 | 100% | ||||||||||||||||||||||||||||||||||||||||||||||||||
M.C. Hubbs | 8 of 8 | 5 of 5 | 7 of 7 | 4 of 4 | 6 of 6 | 1 of 1 (chair) | 1 of 1 | 32 of 32 | 100% | ||||||||||||||||||||||||||||||||||||||||||||||||||
J.M. Mintz | 8 of 8 | 5 of 5 | 7 of 7 | 4 of 4 (chair) | 6 of 6 | 1 of 1 | 1 of 1 | 32 of 32 | 100% | ||||||||||||||||||||||||||||||||||||||||||||||||||
D.S. Sutherland | 8 of 8 | 5 of 5 | 7 of 7 (chair) | 4 of 4 | 6 of 6 | 1 of 1 | 1 of 1 | 32 of 32 | 100% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage by committee | 100% | 100% | 98% | 96% | 100% | 100% | 100% | 195 of 197 | Overall attendance 99% |
No director or nominee serves on more than two boards of another reporting issuer. |
Name of director or nominee | Other reporting issuers of which director or nominee is also a director | Type of company | Stock symbol: Exchange | Committee appointments | |||||||||||||||||||||||||
D.W. Cornhill | AltaGas Ltd. | Diversified energy company | ALA:TSX | No committees | |||||||||||||||||||||||||
B.W. Corson | — | — | — | — | |||||||||||||||||||||||||
M.R. Crocker | — | — | — | — | |||||||||||||||||||||||||
S.R. Driscoll | Empire Company Limited | Food retailing | EMP.A:TSX | Audit committee (chair), Nominating and governance committee, and Corporate governance and social responsibility committee | |||||||||||||||||||||||||
J. Floren | West Fraser Timer Co. Ltd | Basic Materials- Forest Products | WFG:TSX | Health, safety and environment committee (chair), and Human resources and compensation committee, and Governance and nominating committee | |||||||||||||||||||||||||
G.J. Goldberg | BHP Group Limited | Basic Materials- Other industrial Metals and mining | BHP:ASX | Sustainability committee (chair) and Nominations and governance committee | |||||||||||||||||||||||||
K.T. Hoeg | New Flyer Industries Inc. | Manufacturer of heavy duty transit buses | NFI:TSX | Audit committee | |||||||||||||||||||||||||
M.C. Hubbs | Nutrien Ltd. | Fertilizer manufacturing | NTR:TSX, NYSE | Human resources and compensation committee and Safety and sustainability committee (chair) | |||||||||||||||||||||||||
J.M. Mintz | — | — | — | — | |||||||||||||||||||||||||
D.S. Sutherland | GATX Corporation | Commercial rail vehicles and aircraft engines – shipping | GMT:NYSE | Compensation committee (chair) | |||||||||||||||||||||||||
United States Steel Corporation | Iron and steel | X:NYSE | Chairman of the board |
The company regularly provides in-depth presentations to the directors on relevant and emerging issues and encourages continuing education opportunities. |
Directors | ● B.W. Corson (chair) | ● M.C. Hubbs | ||||||||||||||||||
● D.W. Cornhill | ● J.M. Mintz | |||||||||||||||||||
● M.R. Crocker | ● D.S. Sutherland | |||||||||||||||||||
● K.T. Hoeg | ||||||||||||||||||||
Number of meetings | Eight meetings of the board of directors were held in 2022, which included one special meeting of the board. The independent directors hold executive sessions of the board in conjunction with every board meeting. These meetings are held in the absence of management. The independent directors held eight executive sessions in 2022. | |||||||||||||||||||
Board highlights in 2022 | ● Regularly discussed industry activity, market updates and company initiatives. ● Regularly discussed operational and project updates. ● Regularly discussed risk management and business controls environment. ● Regularly reviewed information technology, systems and cybersecurity strategies (including trends, risks, preparedness, mitigation, response, system improvements and business continuity strategies) to assess the security and integrity of the company’s information, systems and assets. ● Discussed comprehensive company strategy for all business lines, including a focus on capital allocation and discipline. ● Implemented various mechanisms for enhancing shareholder returns, such as increasing the dividend, renewing and accelerating the company’s normal course issuer bid program, and two substantial issuer bids. ● Provided oversight in support of safety, environmental performance and sustainability. ● Regularly discussed climate change policies, risks, opportunities and the company’s climate strategy, including the company’s founding partnership in the Oil Sands Pathways to Net Zero initiative. ● Reviewed various stages of key projects such as Strathcona’s renewable diesel, Kearl in-pit tailings, Kearl autonomous haul vehicles and Cold Lake Grand Rapids Phase 1. ● Approved the sale of the company's interest in XTO Energy Canada. ● Conducted site visit to Sarnia including refinery, chemical plant and research centre. | |||||||||||||||||||
Role in risk oversight | The company’s financial, execution and operational risk rests with management and the company is governed by well-established risk management systems. The board of directors are responsible for reviewing the company’s principal risks and overseeing the implementation of the appropriate systems to manage these risks. The board carefully considers these risks in evaluating the company’s strategic plans and specific proposals for capital expenditures and budget additions. It also approves and monitors compliance with the code of ethics and business conduct, and ensures that executive officers create a culture of integrity throughout the company. The board reviews the company’s information technology, systems and cybersecurity to ensure they adequately protect corporate information and assets. In 2022, the board’s role in risk oversight included the company’s continued response to the COVID-19 pandemic and adaptation to the gradual lessening of restrictions across Canada over the year. | |||||||||||||||||||
Disclosure policy | The company is committed to full, true and plain public disclosure of all material information in a timely manner, in order to keep security holders and the investing public informed about the company’s operations. The full details of the corporate disclosure policy can be found on the company’s internet site at www.imperialoil.ca. | |||||||||||||||||||
Independence | The current board of directors is composed of seven directors, the majority of whom (five of seven) are independent. The five independent directors are not employees of the company. |
Committee members | ● K.T. Hoeg (chair) | ● J.M. Mintz | ||||||||||||
● M.C. Hubbs (vice-chair) | ● D.S. Sutherland | |||||||||||||
● D.W. Cornhill | ||||||||||||||
Number of meetings | Five meetings of the audit committee were held in 2022. The committee members met in camera without management present and separately with the internal auditor and the external auditor at all regularly scheduled meetings. A pre-audit meeting also occurs prior to every regularly scheduled audit committee meeting with the chair of the audit committee and the chief financial officer and both the internal and external auditors. | |||||||||||||
Committee highlights in 2022 | ● Reviewed and recommended for approval the interim and full year financial and operating results. ● Reviewed and assessed the company’s system of internal controls and auditing procedures, and the results of the internal auditor’s audit program. ● Reviewed and assessed the external auditor plan, performance and fees. ● Reviewed evolving regulations and reporting obligations. ● Reviewed the committee’s mandate and completed the committee self-assessment. ● Performed external auditor performance evaluation. ● Ensured the effectiveness of controls and procedures and integrity of financial statements was maintained. | |||||||||||||
Financial expertise | The company’s board of directors has determined that D.W. Cornhill, K.T. Hoeg, M.C. Hubbs and D.S. Sutherland meet the definition of “audit committee financial expert”. The U.S. Securities and Exchange Commission has indicated that the designation of an audit committee financial expert does not make that person an expert for any purpose, or impose any duties, obligations or liability on that person that are greater than those imposed on members of the audit committee and board of directors in the absence of such designation or identification. All members of the audit committee are financially literate within the meaning of National Instrument 52-110 Audit Committees and the listing standards of the NYSE American LLC. | |||||||||||||
Role in risk oversight | The audit committee also has an important role in risk oversight. The audit committee oversees risks associated with financial and accounting matters, including compliance with legal and regulatory requirements, and the company’s financial reporting and internal controls systems. In addition, it reviews the scope of PricewaterhouseCoopers’ audit in light of risks associated with the energy industry, the regulatory environment and company-specific financial audit risks. The committee also reviews financial statements and internal and external audit results, and any changes proposed to accounting principles and practices. | |||||||||||||
Independence | The audit committee is composed entirely of independent directors. All members met board approved independence standards, as that term is defined in National Instrument 52-110 Audit Committees, the U.S. Securities and Exchange Commission rules and the listing standards of the NYSE American LLC. |
Committee members | ● D.S. Sutherland (chair) | ● K.T. Hoeg | ||||||||||||||||||
● D.W. Cornhill (vice-chair) | ● M.C. Hubbs | |||||||||||||||||||
● M.R. Crocker | ● J.M. Mintz | |||||||||||||||||||
None of the members of the executive resources committee currently serves as a chief executive officer of another company. | ||||||||||||||||||||
Number of meetings | Seven meetings of the executive resources committee were held in 2022. | |||||||||||||||||||
Committee highlights in 2022 | ● Reviewed performance and approved compensation for CEO and other executive officers ● Approved overall compensation budget and incentive program for the company ● Approved changes to non-executive restricted stock unit program ● Reviewed a number of workforce and organizational changes ● Continued focus on succession planning for senior management positions. | |||||||||||||||||||
Committee members relevant skills and experience | D.W. Cornhill, K.T. Hoeg, M.C. Hubbs and D.S. Sutherland had extensive and lengthy experience in managing and implementing their respective companies’ compensation policies and practices in their past role as chief executive officers or members of senior management. Mr. Cornhill, Ms. Hoeg, Dr. Mintz and Mr. Sutherland serve or have served on compensation committees of one or more public companies. Accordingly, committee members are able to use this experience and knowledge derived from their roles with other companies in judging the suitability of the company’s compensation policies and practices. | |||||||||||||||||||
Role in risk oversight | The executive resources committee oversees the compensation programs and practices that are designed to encourage appropriate risk assessment and risk management. | |||||||||||||||||||
Independence | The members of the executive resources committee are independent, with the exception of M.R. Crocker, who is not considered to be independent under the rules of the U.S. Securities and Exchange Commission, Canadian securities rules and the rules of the NYSE American LLC due to his employment with Exxon Mobil Corporation. However, the Canadian Coalition for Good Governance’s policy, “Governance Differences of Equity Controlled Corporations”, views Mr. Crocker as a related director and independent of management and who may participate as a member of the company’s executive resources committee. Mr. Crocker’s participation helps to ensure an objective process for determining compensation of the company’s officers and directors and assists the deliberations of this committee by bringing the views and perspectives of the majority shareholder. |
Committee members | ● J.M. Mintz (chair) | ● M.R. Crocker | ||||||||||||||||||
● D.S. Sutherland (vice-chair) | ● K.T. Hoeg | |||||||||||||||||||
● D.W. Cornhill | ● M.C. Hubbs | |||||||||||||||||||
Number of meetings | Four meetings of the safety and sustainability committee were held in 2022. | |||||||||||||||||||
Committee highlights in 2022 | ● Personnel and process safety systems, performance and incident review. ● Environmental performance review (greenhouse gas, other air emissions, water consumption). ● Updates on Canadian policy, regulatory change, potential impacts and Imperial’s advocacy strategies (air quality, plastics, UN Declaration on the Rights of Indigenous Peoples). ● Review of climate change policies, risks, potential impacts and Imperial’s advocacy and climate strategies. ● Review of Imperial’s Advancing Climate Solutions and Sustainability Reports and related environmental, social and corporate governance disclosures and Imperial’s disclosure strategy and plans. | |||||||||||||||||||
Role in risk oversight | The safety and sustainability committee reviews and monitors the company’s policies and practices in matters of environment, health, personnel and process safety and security, which policies and practices are intended to mitigate and manage risk in these areas. This includes specific reviews with respect to climate risk and the company’s strategies to address these risks. It also includes pandemic and emergency response and continuity planning, which is a significant focus of reviews and discussions in relation to the COVID-19 pandemic. The committee receives regular reports from management on these matters. | |||||||||||||||||||
Independence | The members of the safety and sustainability committee are independent, with the exception of M.R. Crocker. |
Committee members | ● D.W. Cornhill (chair) | ● K.T. Hoeg | ||||||||||||
● J.M. Mintz (vice-chair) | ● M.C. Hubbs | |||||||||||||
● M.R. Crocker | ● D.S. Sutherland | |||||||||||||
Number of meetings | Six meetings of the nominations and corporate governance committee were held in 2022. | |||||||||||||
Committee highlights in 2022 | ● Approval of the statement of corporate governance practices. ● Engagement in board and committee self-assessment. ● Recommendation of director compensation and increase to share ownership requirements. ● Continued oversight of director recruitment process. ● Recommendation for special committees to consider certain matters. | |||||||||||||
Role in risk oversight | The nominations and corporate governance committee oversees risk by implementing an effective program for corporate governance, including board composition and succession planning. | |||||||||||||
Independence | The members of the nominations and corporate governance committee are independent, with the exception of M.R. Crocker, who is not considered to be independent under the rules of the U.S. Securities and Exchange Commission, Canadian securities rules and the rules of the NYSE American LLC due to his employment with Exxon Mobil Corporation. However, the Canadian Coalition for Good Governance’s policy, “Governance Differences of Equity Controlled Corporations”, views Mr. Crocker as a related director and independent of management and who may participate as a member of the company’s nominations and corporate governance committee. Mr. Crocker’s participation helps to ensure an objective nominations process and assists the deliberations of this committee by bringing the views and perspectives of the majority shareholder. |
Committee members | ● M.C. Hubbs (chair) | ● M.R. Crocker | ||||||||||||||||||
● K.T. Hoeg (vice-chair) | ● J.M. Mintz | |||||||||||||||||||
● D.W. Cornhill | ● D.S. Sutherland | |||||||||||||||||||
● B.W. Corson | ||||||||||||||||||||
Number of meetings | One meeting of the community collaboration and engagement committee was held in 2022. | |||||||||||||||||||
Committee highlights in 2022 | ● Imperial invested more than $17M in Canadian communities in 2021 as reported using the London Benchmark Group model – a global standard for measuring and reporting community investment. | |||||||||||||||||||
● In 2022, Imperial paid more than $18M through community benefit agreements to Indigenous communities. | ||||||||||||||||||||
● Imperial surpassed $4 billion in spending with Indigenous business since 2008 and achieved its highest annual Indigenous business spent in 2022. | ||||||||||||||||||||
● In response to growing stakeholder expectations to demonstrate ESG in action and related reporting standards, we further focused our social investment strategy and relationships to align with our sustainability pillars: climate, Reconciliation, inclusion and diversity, mental health and land conservation and water protection. | ||||||||||||||||||||
● Contributed $150K over three years to Quest Canada to support net-zero pathways for Indigenous communities in our operating areas. | ||||||||||||||||||||
● Donated $300,000 to KidSport to improve access to sport and drive positive mental health as part of our Fuel What Matters 3.0 campaign. | ||||||||||||||||||||
● Planted more than 25,000 trees in urban areas of Southern Ontario. | ||||||||||||||||||||
● Grew employee giving and volunteer matching ImpACT program – more than $550,000 given to nearly 850 charities and non-profits across Canada in 2022. | ||||||||||||||||||||
● Raised nearly $2.7M in United Way campaign from employee/annuitant and corporate donations. | ||||||||||||||||||||
Independence | The majority of the members of the community collaboration and engagement committee are independent (five out of seven) with the exception of B.W. Corson and M.R. Crocker. |
Directors’ compensation is intended to align the long-term financial interests of the directors with those of the shareholders. |
Energy | Non-energy | |||||||
Canadian Natural Resources Limited | Air Canada | |||||||
Cenovus Energy Inc. | Bank of Nova Scotia | |||||||
Enbridge Inc. | BCE Inc. | |||||||
Ovintiv Inc. | Canadian National Railway Company | |||||||
Parkland Fuel Corporation | Nutrien Ltd. | |||||||
Suncor Energy Inc. | Royal Bank of Canada | |||||||
TC Energy Corporation | Sun Life Financial Inc. | |||||||
Teck Resources Limited | ||||||||
TELUS Corporation | ||||||||
Thomson Reuters Corporation | ||||||||
The Toronto-Dominion Bank |
Director compensation | |||||
Annual retainer terms: (a) | |||||
Cash retainer: | |||||
Board membership | $110,000 annually | ||||
Committee chair | None | ||||
Equity based compensation: | |||||
Restricted stock units | 3,300 units | ||||
(50% vests on each of the 5th and 10th anniversary dates of the grant) |
Director | Election for 2022 director’s fees in cash (%) | Election for 2022 director’s fees in deferred share units (%) | ||||||||||||
D.W. Cornhill | 0 | 100 | ||||||||||||
K.T. Hoeg | 0 | 100 | ||||||||||||
M.C. Hubbs | 0 | 100 | ||||||||||||
J.M. Mintz | 50 | 50 | ||||||||||||
D.S. Sutherland | 0 | 100 |
Director (a) | Annual retainer for board membership and special committee ($) (b) | Restricted stock units (RSU) (#) | Total fees paid in cash ($) (c) | Total value of deferred share units (DSU) ($) (d) | Total value of restricted stock units (RSU) ($) (e) | All other compen- sation ($) (f) | Total compensation ($) | |||||||||||||||||||||||||||||||||||||
D.W. Cornhill | 125,000 | 3,300 | — | 125,000 | 239,646 | 35,844 | 400,490 | |||||||||||||||||||||||||||||||||||||
K.T. Hoeg | 120,000 | 3,300 | — | 120,000 | 239,646 | 98,580 | 458,226 | |||||||||||||||||||||||||||||||||||||
M.C. Hubbs | 120,000 | 3,300 | — | 120,000 | 239,646 | 37,448 | 397,094 | |||||||||||||||||||||||||||||||||||||
J.M. Mintz | 120,000 | 3,300 | 55,000 | 65,000 | 239,646 | 91,213 | 450,859 | |||||||||||||||||||||||||||||||||||||
D.S. Sutherland | 120,000 | 3,300 | — | 120,000 | 239,646 | 87,492 | 447,138 |
Name (a) | Fees earned ($)(b) | Share- based awards ($) (c) | Option- based awards ($) | Non-equity incentive plan compensation ($) | Pension value ($) | All other compensation ($) (d) | Total ($) | |||||||||||||||||||||||||||||||||||||
D.W. Cornhill | — | 364,646 | — | — | — | 35,844 | 400,490 | |||||||||||||||||||||||||||||||||||||
K.T. Hoeg | — | 359,646 | — | — | — | 98,580 | 458,226 | |||||||||||||||||||||||||||||||||||||
M.C. Hubbs | — | 359,646 | — | — | — | 37,448 | 397,094 | |||||||||||||||||||||||||||||||||||||
J.M. Mintz | 55,000 | 304,646 | — | — | — | 91,213 | 450,859 | |||||||||||||||||||||||||||||||||||||
D.S. Sutherland | — | 359,646 | — | — | — | 87,492 | 447,138 |
Five-year look back at total compensation paid to nonemployee directors | ||||||||
Year | Amount ($) | |||||||
2018 | 1,500,739 | |||||||
2019 | 1,251,395 | |||||||
2020 | 1,073,527 | |||||||
2021 | 1,557,202 | |||||||
2022 | 2,153,807 |
Option-based awards | Share-based awards | |||||||||||||||||||||||||||||||||||||
Name (a) | Number of securities underlying unexercised options (#) | Option exercise price ($) | Option expiration date | Value of unexercised in-the- money options ($) | Number of shares or units of shares that have not vested (#) (b) | Market or payout value of share-based awards that have not vested ($) (c) | ||||||||||||||||||||||||||||||||
D.W. Cornhill | — | — | — | — | 30,208 | 1,992,218 | ||||||||||||||||||||||||||||||||
K.T. Hoeg | — | — | — | — | 72,602 | 4,788,102 | ||||||||||||||||||||||||||||||||
M.C. Hubbs | — | — | — | — | 32,335 | 2,132,493 | ||||||||||||||||||||||||||||||||
J.M. Mintz | — | — | — | — | 66,945 | 4,415,023 | ||||||||||||||||||||||||||||||||
D.S. Sutherland | — | — | — | — | 64,894 | 4,279,759 |
Name (a) | Option-based awards –Value vested during the year ($) | Share-based awards – Value vested during the year ($) (b) | Non-equity incentive plan compensation – Value earned during the year ($) | |||||||||||||||||
D.W. Cornhill | — | 99,190 | — | |||||||||||||||||
K.T. Hoeg | — | 175,490 | — | |||||||||||||||||
M.C. Hubbs | — | — | — | |||||||||||||||||
J.M. Mintz | — | 175,490 | — | |||||||||||||||||
D.S. Sutherland | — | 175,490 | — |
Minimum share ownership requirement | Time to fulfill | |||||||||||||
Chairman, president and chief executive officer | 5 x base salary | Within 3 years of appointment | ||||||||||||
Independent directors | 16,500 shares | Within 5 years of initial appointment |
Director | Director since | Amount acquired since last report (February 16, 2022 to February 8, 2023) (#) | Total holdings (includes common shares, deferred share units and restricted stock units) (#) | Market value of total holdings (a) ($) | Minimum shareholding requirement | Minimum requirement met | ||||||||||||||||||||||||||||||||
D.W. Cornhill | November 29, 2017 | 4,355 | 42,708 | 2,971,196 | 16,500 | Yes | ||||||||||||||||||||||||||||||||
B.W. Corson | September 17, 2019 | 89,000 | 323,600 | 22,512,852 | Five times base salary | Yes | ||||||||||||||||||||||||||||||||
K.T. Hoeg | May 1, 2008 | 4,241 | 72,602 | 5,050,921 | 16,500 | Yes | ||||||||||||||||||||||||||||||||
M.C. Hubbs | July 26, 2018 | 5,652 | 32,335 | 2,249,546 | 16,500 | Yes | ||||||||||||||||||||||||||||||||
J.M. Mintz | April 21, 2005 | 3,215 | 67,945 | 4,726,934 | 16,500 | Yes | ||||||||||||||||||||||||||||||||
D.S. Sutherland | April 29, 2010 | 4,058 | 119,894 | 8,341,026 | 16,500 | Yes | ||||||||||||||||||||||||||||||||
Total accumulated holdings (#) and value of directors’ holdings ($) | 659,084 | 45,852,475 |
The company is committed to high ethical standards through its policies and practices. |
Commitment to stringent safeguards with trading restrictions and reporting for company insiders. |
The company has a long history of valuing diversity on the board and in its executive management. |
Designated group (a) | Number | Percent (%) | ||||||||||||
Women | 2 of 7 (board and nominees) | 29 | ||||||||||||
2 of 5 (independent directors and nominees) | 40 | |||||||||||||
Aboriginal peoples | 0 of 7 | 0 | ||||||||||||
Persons with disabilities | 0 of 7 | 0 | ||||||||||||
Members of visible minorities | 0 of 7 | 0 |
Designated group (a) | Number | Percent (%) | ||||||||||||
Women | 11 of 24 | 46 | ||||||||||||
Aboriginal peoples | 0 of 24 | 0 | ||||||||||||
Persons with disabilities | 0 of 24 | 0 | ||||||||||||
Members of visible minorities | 4 of 24 | 17 |
Shareholder engagement strategy focuses on wide-ranging dialogue between shareholders and management. |
Exxon Mobil Corporation is the majority shareholder of the company, holding 69.6% of the company’s shares. |
Bradley W. Corson, 61 | ||||||||
Calgary, Alberta, Canada | ||||||||
![]() | Position held at the end of 2022 (date office held): Chairman, president and chief executive officer (2020 – Present) Other positions in the past five years (position, date office held and status of employer): President (2019 – Present) President, ExxonMobil Upstream Ventures (2015 – 2019) (Affiliate) | |||||||
Daniel E. Lyons, 60 | ||||||||
Calgary, Alberta, Canada | ||||||||
![]() | Position held at the end of 2022 (date office held): Senior vice-president, finance and administration, and controller (2018 – Present) Other positions in the past five years (position, date office held and status of employer): Vice-president, downstream business services and downstream treasurer, Exxon Mobil Corporation (2015 – 2018) (Affiliate) | |||||||
Simon P. Younger, 47 | ||||||||
Calgary, Alberta, Canada | ||||||||
![]() | Position held at the end of 2022 (date office held): Senior vice-president, upstream (2020 – Present) Other positions in the past five years (position, date office held and status of employer): Vice-president, production, upstream (2019 – 2020) Senior planning advisor, corporate strategic planning, upstream, Exxon Mobil Corporation (2017 – 2019) (Affiliate) | |||||||
Bruce A. Jolly, 55 | ||||||||
Calgary, Alberta, Canada | ||||||||
![]() | Position held at the end of 2022 (date office held): Assistant controller (2019 – Present) Other positions in the past five years (position, date office held and status of employer): Upstream controller (2018 – 2019) Controller, United States upstream production, Exxon Mobil Corporation (2016 – 2018) (Affiliate) | |||||||
Jonathan R. Wetmore, 50 | ||||||||
Calgary, Alberta, Canada | ||||||||
![]() | Position held at the end of 2022 (date office held): Vice-president, downstream, chemicals and Western Canada fuels manager (2022 – Present) Other positions in the past five years (position, date office held and status of employer): Vice-president, downstream and Western Canada fuels manager (2018 – 2022) |
Sherri L. Evers, 46 | Position held (date office held): Vice-president, commercial and corporate development (2021 – Present) Other positions in the past five years (position, date office held and status of employer): Fuels manager, Central and Eastern Canada, fuels and lubricants (2018 – 2020) | |||||||
Calgary, Alberta, Canada | ||||||||
![]() | ||||||||
Kitty Lee, 46 | Position held (date office held): Treasurer (2020 – Present) Other positions in the past five years (position, date office held and status of employer): Financial advisor, treasurer’s, Exxon Mobil Corporation (2019 – 2020) (Affiliate) Benefits finance manager, treasurer’s, Exxon Mobil Corporation (2018 – 2019) (Affiliate) Global coordination manager, controller’s, Exxon Mobil Corporation (2016 – 2018) (Affiliate) | |||||||
Calgary, Alberta, Canada | ||||||||
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Kristi L. Desjardins, 49 | ||||||||
Calgary, Alberta, Canada | Position held (date office held): Vice-president, human resources (2020 – Present) Other positions in the past five years (position, date office held and status of employer): Human resources services manager, global human resources operations, Exxon Mobil Corporation (2018 – 2020) (Affiliate) Manager, human resources services (2017 – 2018) | |||||||
![]() | ||||||||
Constance D. Gemmell, 56 | ||||||||
Calgary, Alberta, Canada | Position held (date office held): Director, corporate tax (2018 – Present) Other positions in the past five years (position, date office held and status of employer): Manager, income tax planning and advice (2013 – 2018) | |||||||
![]() | ||||||||
Ian R. Laing, 49 | ||||||||
Calgary, Alberta, Canada | Position held (date office held): Vice-president, general counsel and corporate secretary (2020 – Present) Other positions in the past five years (position, date office held and status of employer): Assistant general counsel, downstream and corporate departments and corporate secretary (2019 – 2020) Assistant general counsel, upstream (2017 – 2018) | |||||||
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Compensation program design | |||||
Retirement plans | |||||
The company takes a long-term view to managing its business. |
Element | Base salary | Annual bonus | Restricted stock units | |||||||||||||||||
Percent of total direct compensation (a) | • 10 to 30 percent | •10 to 25 percent | •50 percent or more | |||||||||||||||||
Intent | • Provide competitive base pay | • Link pay to annual company earnings performance • Provide near-term performance payment | • Link pay to returns of long-term shareholders •Encourages long-term view through commodity price cycle | |||||||||||||||||
Key design features | •Increase determined by individual performance, experience, and pay grade •Ties directly to long-term benefits (pension & savings plans) | •Paid in year of grant •Bonus award pool reflective of business performance • Individual award determined by performance and pay grade • Full award subject to clawback | • Granted in the form of stock units •CEO: 50 percent vests in 5 years from grant date; 50 percent in 10 years •All other executives: 50 percent vests in 3 years from grant date; 50 percent in 7 years • Long restriction periods coupled with performance considerations applied at grant • Significant portion of pay at risk of forfeiture for an extended period of time | |||||||||||||||||
Pay at risk | • Fixed pay | •Variable pay at risk | •Variable pay at risk |
Design feature | Risk management | |||||||
Common programs | •All executives employed by the company, including the named executive officers, participate in common programs (the same salary, incentive, and retirement programs). Similar compensation design features and allocation of awards within the programs discourage inappropriate risk taking. Compensation is differentiated based on individual performance assessment, experience and pay grade. •All executives on assignment from an affiliate of the company, including the named executive officers on assignment from Exxon Mobil Corporation and Esso Australia Pty Ltd., also participate in common programs that are administered by Exxon Mobil Corporation or such affiliates. The named executive officers on assignment receive restricted stock units from Imperial. •The executive resources committee ("committee") reviews and approves annual compensation recommendations for each named executive officer prior to implementation. | |||||||
Executive stock ownership | •Long holding periods on restricted stock units (RSUs) results in executives maintaining significant stock ownership during employment and for 7 years into retirement, with a longer holding period for the chairman, president and chief executive officer up to 10 years into retirement. | |||||||
Significant pay at risk | •Uniquely long restriction periods on RSUs substantially increase the percentage of career compensation at risk well into retirement. •Unvested RSUs cannot be used as collateral for any purpose. | |||||||
Strong forfeiture provisions | •Unvested RSUs are at risk of forfeiture for resignation or detrimental activity, even if such detrimental activity occurs or is discovered after resignation or retirement. | |||||||
Clawback policy | •The entire annual bonus is subject to recoupment (clawback) in the event of a material negative restatement of the company's reported financial or operating results. This reinforces the importance of the company's financial controls and compliance programs. Clawback provisions also apply if an executive resigns or engages in detrimental activity. | |||||||
No guaranteed bonuses | •Bonus is subject to year-on-year changes in business performance; remains at risk •Demonstrated by bonus program suspension in 2020; no award granted. | |||||||
No additional stock grants to balance losses in value | •The committee does not support a practice of offsetting a loss or gain in the value of prior restricted share units by the value of current year grants. •Such a practice would minimize the risk/reward profile of stock-based awards and undermine the long-term view that executives are expected to adopt. | |||||||
No accelerated vesting at retirement | •RSUs are not subject to acceleration, not even at retirement, except in the case of death. •Unvested RSUs cannot be used as collateral for any purpose. |
The company’s compensation program is designed to reward performance, promote retention, and encourage long-term business decisions. |
The vesting periods of the company’s long-term incentive program are greater than those in use by comparator companies. |
Employee group | Vesting On the anniversary of the date of grant | |||||||
For the chairman, president and chief executive officer | 50 percent in 5 years and 50 percent in 10 years | |||||||
For all other executives | 50 percent in 3 years and 50 percent in 7 years |
Plan | Description | |||||||
Savings plan | •Employees with more than one year of service may contribute between 1 and 30 percent of normal earnings via payroll deductions. •The company provides matching contributions up to 6% which vary depending on the amount of employee contributions and which defined benefit pension arrangement the employee participates •Employee and company contributions can be allocated in any combination to a non-registered (tax-paid) account, or a registered (tax-deferred) group retirement savings plan (RRSP), subject to contribution limits under the Income Tax Act. | |||||||
Registered pension plan | •The company provides a registered defined pension benefit when leaving the company if age, service, and other provisions under the plan are met. •Pension is subject to income tax regulations that impose limits on the amounts that can be paid from a registered plan. •The pension plan provides for pension benefits accrual only until December 1st in the year the employee reaches the age of 71. •The company does not grant additional pension service credit. | |||||||
Supplemental pension arrangement (SPA) | •SPA addresses any portions of the defined benefit that cannot be paid from the registered plan due to income tax regulations. •For executive officers who receive an annual bonus, the company's SPA can also provide an annual benefit tied to annual bonus. •SPA may be taken as a lump sum or an annuity. •No SPA amounts are payable if an employee resigns or is terminated with cause before reaching retirement eligibility. |
In 2022, Imperial delivered exceptional business results across a wide range of performance dimensions. |
millions of Canadian dollars | 2022 | ||||
From the Consolidated statement of cash flows | |||||
Cash flows from (used in) operating activities | 10,482 | ||||
Cash flows from (used in) investing activities | |||||
Additions to property, plant and equipment | (1,526) | ||||
Proceeds from asset sales | 904 | ||||
Additional investments | (6) | ||||
Loans to equity companies - net | 10 | ||||
Free cash flow | 9,864 | ||||
Name and principal position at the end of 2022 | Year | Salary ($) (b) | Share- based awards ($) (c) | Option- based awards ($) (d) | Non-equity incentive plan compensation ($) | Pension value ($) (g) | All other compensation ($) (h) | Total compensation ($) (i) | ||||||||||||||||||||||||||||||||||||||||||||||||
Annual incentive plans (e) | Long-term incentive plans (f) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
B.W. Corson (a) Chairman, president and chief executive officer (since September 17, 2019) | 2022 | 1,046,245 | 6,463,180 | — | 2,223,922 | 727,427 | 4,905,567 | 1,975,182 | 17,341,523 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 968,956 | 3,447,056 | — | 956,421 | 0 | 1,200,091 | 2,178,025 | 8,750,549 | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 996,734 | 1,897,132 | — | — | 0 | (340,046) | 1,945,980 | 4,499,800 | ||||||||||||||||||||||||||||||||||||||||||||||||
D.E. Lyons (a) Senior vice-president, finance and administration, and controller (since May 1, 2018) | 2022 | 688,388 | 1,917,168 | — | 890,089 | 298,642 | 1,850,528 | 1,798,933 | 7,443,748 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 646,806 | 1,163,712 | — | 439,979 | 0 | 463,757 | 784,104 | 3,498,358 | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 689,307 | 553,128 | — | — | 0 | (207,474) | 1,516,702 | 2,551,663 | ||||||||||||||||||||||||||||||||||||||||||||||||
S.P. Younger (a) Senior vice-president, upstream (since July 1, 2019) | 2022 | 574,345 | 1,597,640 | — | 565,155 | 170,133 | 346,566 | 709,862 | 3,963,701 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 545,996 | 714,096 | — | 250,449 | 0 | 81,762 | 415,505 | 2,007,808 | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 527,126 | 393,012 | — | — | 0 | (299,441) | 555,097 | 1,175,794 | ||||||||||||||||||||||||||||||||||||||||||||||||
B.A. Jolly Assistant controller (since August 1, 2019) | 2022 | 472,500 | 1,234,540 | — | 469,657 | 140,448 | 1,306,400 | 118,315 | 3,741,860 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 450,000 | 749,360 | — | 237,332 | 0 | 268,900 | 91,487 | 1,797,079 | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 444,500 | 393,012 | — | — | 0 | 23,300 | 76,767 | 937,579 | ||||||||||||||||||||||||||||||||||||||||||||||||
J.R. Wetmore Vice-president, downstream, chemicals and Western Canada fuels manager (since June 1, 2022) | 2022 | 453,700 | 958,584 | — | 311,755 | 93,370 | 449,200 | 80,057 | 2,346,666 | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 432,100 | 581,856 | — | 157,555 | 0 | 56,200 | 59,028 | 1,286,739 | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 427,100 | 320,232 | — | — | 0 | 87,500 | 50,885 | 885,717 |
Option-based awards | Share-based awards | |||||||||||||||||||||||||||||||||||||||||||
Name | Number of securities underlying unexercised options (#) | Option exercise price ($) | Option expiration date | Value of unexercised in-the- money options ($) | Number of shares or units of shares that have not vested (#) (d) | Market or payout value of share- based awards that have not vested ($) (d) | Market or payout value of vested share- based awards not paid out or distributed ($) | |||||||||||||||||||||||||||||||||||||
B.W. Corson (a) | — | — | — | — | 323,600 | 21,341,420 | — | |||||||||||||||||||||||||||||||||||||
D.E. Lyons (b) | — | — | — | — | 94,800 | 6,252,060 | — | |||||||||||||||||||||||||||||||||||||
S.P. Younger (c) | — | — | — | — | 54,400 | 3,587,680 | — | |||||||||||||||||||||||||||||||||||||
B.A. Jolly | — | — | — | — | 73,800 | 4,867,110 | — | |||||||||||||||||||||||||||||||||||||
J.R. Wetmore | — | — | — | — | 60,400 | 3,983,380 | — |
Name | Option-based awards – Value vested during the year ($) | Share-based awards – Value vested during the year ($) (d) | Non-equity incentive plan compensation – Value earned during the year ($) (e) | |||||||||||||||||
B.W. Corson (a) | — | — | — | |||||||||||||||||
D.E. Lyons (b) | — | 732,480 | — | |||||||||||||||||
S.P. Younger (c) | — | — | — | |||||||||||||||||
B.A. Jolly | — | 900,340 | 610,105 | |||||||||||||||||
J.R. Wetmore | — | 740,110 | 405,125 |
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (#) (c) | Weighted-average exercise price of outstanding options, warrants and rights ($) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in the first column) (#) (c) | |||||||||||||||||
Equity compensation plans approved by security holders (a) | — | — | — | |||||||||||||||||
Equity compensation plans not approved by security holders (b) | 1,762,425 | — | 8,705,612 | |||||||||||||||||
Total | 1,762,425 | — | 8,705,612 |
Maximum number of restricted stock units issuable under the plan (b) | Total number of restricted stock units awarded and outstanding | Total number of restricted stock units available for grant | ||||||||||||||||||
Number (#) | 10,468,037 | 4,036,355 | 6,431,682 | |||||||||||||||||
Percent of outstanding common shares (%) (a) | 1.79 | 0.69 | 1.10 |
Number of restricted stock units granted under the plan (#) (a) | Weighted-average number of securities outstanding (#) (b) | Annual burn rate (%) (c) | ||||||||||||||||||
2022 | 884,140 | 640,160,028 | 0.14 | |||||||||||||||||
2021 | 680,720 | 711,602,150 | 0.10 | |||||||||||||||||
2020 | 747,040 | 735,285,422 | 0.10 |
Name | Number of years credited service (as of December 31, 2022) (#) (a) | Annual benefits payable ($) | Opening present value of defined benefit obligation ($) (d) | Compensatory change ($) (e) | Non- compensatory change ($) (f) | Closing present value of defined benefit obligation ($) (d) | ||||||||||||||||||||||||||||||||||||||
At year- end (b) | At age 65 (c) | |||||||||||||||||||||||||||||||||||||||||||
B.W. Corson | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
D.E. Lyons | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
S.P. Younger (g) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
B.A. Jolly | 31.5 | 310,500 | 409,400 | 5,747,500 | 1,306,400 | (1,189,400) | 5,864,500 | |||||||||||||||||||||||||||||||||||||
J.R. Wetmore | 28.5 | 269,500 | 426,100 | 5,036,900 | 449,200 | (1,511,600) | 3,974,500 |
Appendix A – Board of director and committee charters |
Board of Directors Charter |
Audit Committee Charter |
Safety and Sustainability Committee Charter |
Executive Resources Committee Charter |
Nominations and Corporate Governance Committee Charter |
Community Collaboration and Engagement Committee Charter |
IMPERIAL OIL LIMITED |
/s/ Bradley W. Corson |
IMPERIAL OIL LIMITED |
/s/ Daniel E. Lyons |
IMPERIAL OIL LIMITED |
Date: February 22, 2023 | ||
/s/ Bradley W. Corson | ||
Bradley W. Corson | ||
Chairman, president and chief executive officer | ||
(Principal executive officer) |
IMPERIAL OIL LIMITED |
Date: February 22, 2023 | ||
/s/ Daniel E. Lyons | ||
Daniel E. Lyons | ||
Senior vice-president, finance and | ||
administration, and controller | ||
(Chief financial officer) |
Audit Information |
12 Months Ended |
---|---|
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Calgary, Canada |
Auditor Firm ID | 271 |
Consolidated statement of income (Parenthetical) - CAD ($) $ in Millions |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
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Income Statement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts from related parties included in revenues, (note 16). | [1] | $ 17,042 | $ 8,777 | $ 5,107 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts to related parties included in purchases of crude oil and products, (note 16). | [2] | 3,795 | 2,737 | 2,484 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts to related parties included in production and manufacturing, and selling and general expenses, (note 16). | [3] | 460 | 420 | 579 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts to related parties included in financing, (note 16). | [4] | $ 78 | $ 28 | $ 61 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Consolidated statement of comprehensive income (U.S. GAAP) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 7,340 | $ 2,479 | $ (1,857) |
Other comprehensive income (loss), net of income taxes | |||
Postretirement benefits liability adjustment (excluding amortization) | 582 | 679 | (212) |
Amortization of postretirement benefits liability adjustment included in net benefit costs | 83 | 133 | 134 |
Total other comprehensive income (loss) | 665 | 812 | (78) |
Comprehensive income (loss) | $ 8,005 | $ 3,291 | $ (1,935) |
Consolidated balance sheet (U.S. GAAP) (Parenthetical) - CAD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Amounts receivable (payable) from (to) related parties | $ 1,108 | $ 1,031 |
Common shares authorized (in shares) | 1,100,000,000 | 1,100,000,000 |
Common shares outstanding (in shares) | 584,000,000 | 678,000,000 |
Investments and Long Term Receivables | ||
Due from related parties | $ 288 | $ 298 |
Long-term debt | ||
Due to related parties | $ 3,447 | $ 4,447 |
Consolidated statement of cash flows (U.S. GAAP) (Parenthetical) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Included contributions to registered pension plans | $ (174) | $ (164) | $ (195) |
Income taxes (paid) refunded. | (374) | 58 | (42) |
Interest (paid), net of capitalization. | $ (60) | $ (43) | $ (62) |
Summary of significant accounting policies |
12 Months Ended |
---|---|
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 1. Summary of significant accounting policies Principles of consolidation The consolidated financial statements include the accounts of subsidiaries the company controls. Intercompany accounts and transactions are eliminated. Subsidiaries include those companies in which Imperial has both an equity interest and the continuing ability to unilaterally determine strategic, operating, investing and financing policies. Imperial Oil Resources Limited and Canada Imperial Oil Limited are significant subsidiaries included in the consolidated financial statements and are wholly owned by Imperial Oil Limited. The consolidated financial statements also include the company’s share of the undivided interest in certain upstream assets, liabilities, revenues and expenses, including its 70.96 percent interest in the Kearl joint venture and its 25 percent interest in the Syncrude joint venture. Revenues Imperial generally sells crude oil, natural gas and petroleum and chemical products under short-term agreements at prevailing market prices. In some cases, products may be sold under long-term agreements, with periodic price adjustments to reflect market conditions. Revenue is recognized at the amount the company expects to receive when the customer has taken control, which is typically when title transfers and the customer has assumed the risks and rewards of ownership. The prices of certain sales are based on price indices that are sometimes not available until the next period. In such cases, estimated realizations are accrued when the sale is recognized, and are finalized when final information is available. Such adjustments to revenue from performance obligations satisfied in previous periods are not significant. Payment for revenue transactions is typically due within 30 days. Revenues include amounts billed to customers for shipping and handling. Shipping and handling costs incurred up to the point of final storage prior to delivery to a customer are included in “Purchases of crude oil and products” in the Consolidated statement of income. Delivery costs from final storage to customer are recorded as a marketing expense in “Selling and general” expenses. The company does not enter into ongoing arrangements whereby it is required to repurchase its products, nor does the company provide the customer with a right of return. Future volume delivery obligations that are unsatisfied at the end of the period are expected to be fulfilled through ordinary production or purchases. These performance obligations are based on market prices at the time of the transaction and are fully constrained due to market price volatility. Purchases and sales of inventory with the same counterparty that are entered into in contemplation of one another are combined and recorded as exchanges measured at the book value of the item sold. “Revenues” and “Accounts receivable - net” include revenue and receivables both within the scope of ASC 606 Revenue from Contracts with Customers, and those outside the scope of ASC 606. Long-term receivables are primarily from receivables outside the scope of ASC 606. Contract assets are mainly from marketing assistance programs and are not significant. Contract liabilities are mainly customer prepayments and accruals of expected volume discounts, and are not significant. Consumer taxes Taxes levied on the consumer and collected by the company are excluded from the Consolidated statement of income. These are primarily provincial taxes on motor fuels, the federal goods and services tax and the federal / provincial harmonized sales tax. Derivative instruments Imperial may use derivative instruments for trading purposes and to offset exposures associated with commodity prices, currency exchange rates and interest rates that arise from existing assets, liabilities, firm commitments and forecasted transactions. All derivative instruments, except those designated as normal purchase and normal sale, are recorded at fair value. Derivative assets and liabilities with the same counterparty are netted if the right of offset exists and certain other criteria are met. Collateral payables or receivables are netted against derivative assets and derivative liabilities, respectively. Recognition and classification of the gain or loss that results from adjusting a derivative to fair value depends on the purpose for the derivative. The gains and losses resulting from changes in the fair value of derivatives are recorded under “Revenues” or “Purchases of crude oil and products” in the Consolidated statement of income. Fair value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Hierarchy levels 1, 2 and 3 are terms for the priority of inputs to valuation techniques used to measure fair value. Hierarchy level 1 inputs are quoted prices in active markets for identical assets or liabilities. Hierarchy level 2 inputs are inputs other than quoted prices included within level 1 that are directly or indirectly observable for the asset or liability. Hierarchy level 3 inputs are inputs that are not observable in the market. Inventories Inventories are recorded at the lower of current market value or cost. The cost of crude oil and products is determined primarily using the last-in, first-out (LIFO) method. LIFO was selected over the alternative first-in, first-out and average cost methods because it provides a better matching of current costs with the revenues generated in the period. Inventory costs include expenditures and other charges (including depreciation), directly or indirectly incurred in bringing the inventory to its existing condition and location. Selling and general expenses are reported as period costs and excluded from inventory costs. Inventories of materials and supplies are valued at cost or less. Investments The company’s interests in the underlying net assets of affiliates it does not control, but over which it exercises significant influence, are accounted for using the equity method. They are recorded at the original cost of the investment plus Imperial’s share of earnings since the investment was made, less dividends received. Imperial’s share of the after-tax earnings of these investments is included in “Investment and other income” in the Consolidated statement of income. Investments in equity securities, other than consolidated subsidiaries and equity method investments, are measured at fair value, with changes in the fair value recognized in net income. The company uses a modified approach for equity securities that do not have a readily determinable fair value. This modified approach measures investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions in similar investments of the same issuer. Dividends from these investments are included in “Investment and other income”. These investments represent interests in non-publicly traded pipeline companies and a rail loading joint venture that facilitate the sale and purchase of liquids in the conduct of company operations. Other parties who also have an equity interest in these investments share in the risks and rewards according to their percentage of ownership. Imperial does not invest in these investments in order to remove liabilities from its balance sheet. Property, plant and equipment Cost basis Imperial uses the “successful efforts” method to account for its exploration and production activities. Under this method, costs are accumulated on a field-by-field basis. Costs incurred to purchase, lease, or otherwise acquire a property (whether unproved or proved) are capitalized when incurred. Exploratory well costs are carried as an asset when the well has found a sufficient quantity of reserves to justify its completion as a producing well and where the company is making sufficient progress assessing the reserves and the economic and operating viability of the project. Exploratory well costs not meeting these criteria are charged to expense. Other exploratory expenditures, including geophysical costs and annual lease rentals, are expensed as incurred. Development costs, including costs of productive wells and development dry holes, are capitalized. Interest costs incurred to finance expenditures during the construction phase of projects are capitalized as part of the historical cost of acquiring the constructed assets. The project construction phase commences with the development of the detailed engineering design and ends when the constructed assets are ready for their intended use. Capitalized interest costs are included in property, plant and equipment and are depreciated over the service life of the related assets. Maintenance and repair costs, including planned major maintenance, are expensed as incurred. Improvements that increase or prolong the service life or capacity of an asset are capitalized. Depreciation, depletion and amortization Depreciation, depletion and amortization are primarily determined under either the unit-of-production method or the straight-line method, which is based on estimated asset service life taking obsolescence into consideration. Depreciation and depletion for assets associated with producing properties begin at the time when production commences on a regular basis. Depreciation for other assets begins when the asset is in place and ready for its intended use. Assets under construction are not depreciated or depleted. Acquisition costs of proved properties are amortized using a unit-of-production method, computed on the basis of total proved oil and natural gas reserve volumes. Capitalized exploratory drilling and development costs associated with productive depletable extractive properties are amortized using the unit-of-production rates based on the amount of proved developed reserves of oil and gas that are estimated to be recoverable from existing facilities using current operating methods. Under the unit-of-production method, oil and natural gas volumes are considered produced once they have been measured through meters at custody transfer or sales transaction points at the outlet valve on the lease or field storage tank. In the event that the unit-of-production method does not result in an equitable allocation of cost over the economic life of an upstream asset, an alternative method is used. The straight-line method is used in limited situations where the expected life of the asset does not reasonably correlate with that of the underlying reserves. For example, certain assets used in the production of oil and natural gas have a shorter life than the reserves, and as such, the company uses straight-line depreciation to ensure the asset is fully depreciated by the end of its useful life. Investments in mining heavy equipment and certain ore processing plant assets at oil sands mining properties are depreciated on a straight-line basis over a maximum of 15 years and 50 years respectively. Depreciation of other plant and equipment is calculated using the straight-line method, based on the estimated service life of the asset. To the extent that proved reserves for a property are substantially de-booked and that property continues to produce such that the resulting depreciation charge does not result in an equitable allocation of cost over the expected life, assets will be depreciated using a unit-of-production method based on reserves determined at the most recent SEC price which results in a more meaningful quantity of proved reserves, appropriately adjusted for production and technical changes. This approach was applied in 2021, with the corresponding effect on depreciation expense being immaterial compared to prior periods. For 2022 and 2023, all properties have sufficient reserves at current SEC prices which will enable equitable allocation of cost over the economic lives of the Upstream assets. Investments in refinery and chemical process manufacturing equipment are generally depreciated on a straight-line basis over a 25-year life. Maintenance and repairs, including planned major maintenance, are expensed as incurred. Major renewals and improvements are capitalized and the assets replaced are retired. Impairment assessment The company tests assets or groups of assets for recoverability on an ongoing basis whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. Among the events or changes in circumstances which could indicate that the carrying value of an asset or asset group may not be recoverable are the following: •a significant decrease in the market price of a long-lived asset; •a significant adverse change in the extent or manner in which an asset is being used or in its physical condition including a significant decrease in current and projected reserve volumes; •a significant adverse change in legal factors or in the business climate that could affect the value, including an adverse action or assessment by a regulator; •an accumulation of project costs significantly in excess of the amount originally expected; •a current-period operating loss combined with a history and forecast of operating or cash flow losses; and •a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The company has a robust process to monitor for indicators of potential impairment across its asset groups throughout the year. This process is aligned with the requirements of ASC 360 and ASC 932 and relies, in part, on the company’s planning and budgeting cycle. Asset valuation analysis, profitability reviews and other periodic control processes assist the company in assessing whether events or changes in circumstances indicate the carrying amounts of any of its assets may not be recoverable. Because the lifespans of the vast majority of the company’s major assets are measured in decades, the future cash flows of these assets are predominantly based on long-term oil and natural gas commodity prices, industry margins, and development and production costs. Significant reductions in the company’s view of oil or natural gas commodity prices or margin ranges, especially the longer-term prices and margins, and changes in the development plans, including decisions to defer, reduce or eliminate planned capital spending, can be an indicator of potential impairment. Other events or changes in circumstances, including indicators outlined in ASC 360 can be indicators of potential impairment as well. In general, Imperial does not view temporarily low prices or margins as an indication of impairment. Management believes that prices over the long term must be sufficient to generate investments in energy supply to meet global demand. Although prices will occasionally drop significantly, industry prices over the long term will continue to be driven by market supply and demand fundamentals. On the supply side, industry production from mature fields is declining. This is being offset by investments to generate production from new discoveries, field developments, and technology and efficiency advancements. OPEC investment activities and production policies also have an impact on world oil supplies. The demand side is largely a function of general economic activities, alternative energy sources and levels of prosperity. During the lifespan of its major assets, the company expects that oil and gas prices and industry margins will experience significant volatility. Consequently, these assets will experience periods of higher earnings and periods of lower earnings, or even losses. In assessing whether events or changes in circumstances indicate the carrying value of an asset may not be recoverable, the company considers recent periods of operating losses in the context of its longer-term view of prices and margins. In the Upstream, the standardized measure of discounted cash flows included in the “Supplemental information on oil and gas exploration and production activities” is required to use prices based on the average of first-day-of-month prices in the year. These prices represent discrete points in time and could be higher or lower than the company’s price assumptions which are used for impairment assessments. The company believes the standardized measure does not provide a reliable estimate of the expected future cash flows to be obtained from the development and production of its oil and gas properties or of the value of its oil and gas reserves and therefore does not consider it relevant in determining whether events or changes in circumstances indicate the need for an impairment assessment. Outlook for Energy and cash flow assessment The annual planning and budgeting process, known as the company plan, is the mechanism by which resources (capital, operating expenses and people) are allocated across the company. The foundation for the energy supply and demand assumptions supporting the company plan begins with Exxon Mobil Corporation’s Outlook for Energy (the Outlook), which contains demand and supply projections based on its assessment of current trends in technology, government policies, consumer preferences, geopolitics, economic development, and other factors. Reflective of the existing global policy environment, the Outlook does not project the degree of required future policy and technology advancement and deployment for the world or the company, to meet net zero by 2050. As future policies and technology advancements emerge, they will be incorporated into the Outlook, and consequently, the company’s business plans will be updated accordingly. If events or changes in circumstances indicate that the carrying value of an asset may not be recoverable, the company estimates the future undiscounted cash flows of the affected properties to judge the recoverability of carrying amounts. In performing this assessment, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. Cash flows used in recoverability assessments are based on the assumptions developed in the company plan, which is reviewed and approved by the board of directors, and are consistent with the criteria management uses to evaluate investment opportunities. These evaluations make use of the company’s assumptions of future capital allocations, crude oil and natural gas commodity prices including price differentials, refining and chemical margins, volumes, development and operating costs, including greenhouse gas emissions prices, and foreign currency exchange rates. Volumes are based on projected field and facility production profiles, throughput, or sales. Management’s estimate of upstream production volumes used for projected cash flows makes use of proved reserve quantities and may include risk-adjusted unproved reserve quantities. The greenhouse gas emission prices reflect existing or anticipated policy actions of applicable provincial and federal governments. Fair value of impaired assets An asset group is impaired if its estimated future undiscounted cash flows are less than the asset group’s carrying value. Impairments are measured by the excess of the carrying value over fair value. The assessment of fair value is based on the views of a likely market participant. The principal parameters used to establish fair value include estimates of acreage values and flowing production metrics from comparable market transactions, market-based estimates of historical cash flow multiples, and discounted cash flows. Inputs and assumptions used in discounted cash flow models include estimates of future production volumes, throughput and product sales volumes, commodity prices which are consistent with the average of third-party industry experts and government agencies, refining and chemical margins, drilling and development costs, operating costs, and discount rates which are reflective of the characteristics of the asset group. Other impairment estimates Unproved properties are assessed periodically to determine whether they have been impaired. Significant unproved properties are assessed for impairment individually, and valuation allowances against the capitalized costs are recorded based on the company’s future development plans, the estimated economic chance of success and the length of time that the company expects to hold the properties. Properties that are not individually significant are aggregated by groups and amortized based on development risk and average holding period. Long-lived assets that are held for sale are evaluated for possible impairment by comparing the carrying value of the asset with its fair value less the cost to sell. If the net book value exceeds the fair value less cost to sell, the assets are considered impaired and adjusted to the lower value. Gains on sales of proved and unproved properties are only recognized when there is neither uncertainty about the recovery of costs applicable to any interest retained nor any substantial obligation for future performance by the company. Asset retirement obligations and other environmental liabilities The company incurs retirement obligations for certain assets. The fair values of these obligations are recorded as liabilities on a discounted basis, which is typically at the time the assets are installed. In the estimation of fair value, the company uses assumptions and judgments regarding such factors as the existence of a legal obligation for an asset retirement obligation, technical assessments of the assets, estimated amounts and timing of settlements, discount rates and inflation rates. Asset retirement obligations incurred in the current period were Level 3 fair value measurements. The costs associated with these liabilities are capitalized as part of the related assets and depreciated as the reserves are produced. Over time, the liabilities are accreted for the change in their present value. Asset retirement obligations for downstream and chemical facilities generally become firm at the time the facilities are permanently shut down and dismantled. These obligations may include the costs of asset disposal and additional soil remediation. However, these sites generally have indeterminate lives based on plans for continued operations, and as such, the fair value of the conditional legal obligations cannot be measured, since it is impossible to estimate the future settlement dates of such obligations. On page 93, note 5 to the consolidated financial statements provides a three-year continuity table detailing the changes in asset retirement obligations. The company accrues environmental liabilities when it is probable that obligations have been incurred and the amount can be reasonably estimated. Provisions for environmental liabilities are determined based on engineering estimated costs, taking into account the anticipated method and extent of remediation consistent with legal requirements, current technology and the possible use of the location. These provisions are not reduced by possible recoveries from third parties and projected cash expenditures are not discounted. Foreign-currency translation Monetary assets and liabilities in foreign currencies have been translated at the rates of exchange prevailing on December 31. Any exchange gains or losses are recognized in income.
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Business segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business segments | 2. Business segments The company operates its business in Canada. The Upstream, Downstream and Chemical functions best define the operating segments of the business that are reported separately. The factors used to identify these reportable segments are based on the nature of the operations that are undertaken by each segment and the structure of the company’s internal organization. The Upstream segment is organized and operates to explore for and ultimately produce crude oil and its equivalent, and natural gas. The Downstream segment is organized and operates to refine crude oil into petroleum products and to distribute and market these products. The Chemical segment is organized and operates to manufacture and market hydrocarbon-based chemicals and chemical products. The above segmentation has been the long-standing practice of the company and is broadly understood across the petroleum and petrochemical industries. These functions have been defined as the operating segments of the company because they are the segments (a) that engage in business activities from which revenues are earned and expenses are incurred; (b) whose operating results are regularly reviewed by the company’s chief operating decision maker to make decisions about resources to be allocated to each segment and assess its performance; and (c) for which discrete financial information is available. Corporate and other includes assets and liabilities that do not specifically relate to business segments – primarily cash, capitalized interest costs, short-term borrowings, long-term debt and liabilities associated with incentive compensation, pension and other postretirement benefit liabilities. Net earnings effects under Corporate and other activities primarily include debt-related financing, corporate governance costs, non-service pension and postretirement benefit costs, share-based incentive compensation expenses and interest income. Segment accounting policies are the same as those described in note 1 "Summary of significant accounting policies". Upstream, Downstream and Chemical expenses include amounts allocated from Corporate and other activities. The allocation is based on proportional segment expenses. Transfers of assets between segments are recorded at book amounts. Intersegment sales are made essentially at prevailing market prices. Assets and liabilities that are not identifiable by segment are allocated.
(b)Revenues include both revenue within the scope of ASC 606 and outside the scope of ASC 606. Trade receivables in "Accounts receivable – net" reported on the Consolidated balance sheet include both receivables within the scope of ASC 606 and outside the scope of ASC 606. Revenue and receivables outside the scope of ASC 606 primarily relate to physically settled commodity contracts accounted for as derivatives. Contractual terms, credit quality and type of customer are generally similar between contracts within the scope of ASC 606 and those outside it.
(c)In 2021, the Downstream segment acquired a portion of Upstream crude inventory for $444 million. There was no earnings impact and the effects of this transaction have been eliminated for consolidation purposes. (d)In 2020, the Upstream segment included a non-cash impairment charge of $1,531 million, before-tax, related to the company’s decision not to further develop a significant portion of its unconventional portfolio. (e)Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions and the company’s share of similar costs for equity companies. CAPEX excludes the purchase of carbon emission credits. (f)Includes property, plant and equipment under construction of $2,676 million (2021 - $2,348 million, 2020 - $1,874 million).
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Income taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | 3. Income taxes
Deferred income taxes are based on differences between the accounting and tax values of assets and liabilities. These differences in value are re-measured at each year-end using the tax rates and tax laws expected to apply when those differences are realized or settled in the future. Components of deferred income tax liabilities and assets as at December 31 were:
Unrecognized tax benefits Unrecognized tax benefits reflect the difference between positions taken or expected to be taken on income tax returns and the amounts recognized in the financial statements. The following table summarizes the movement in unrecognized tax benefits:
The unrecognized tax benefit balances shown above are predominately related to tax positions that would reduce the company’s effective tax rate if the positions are favourably resolved. Unfavourable resolution of these tax positions generally would not increase the effective tax rate. The 2022, 2021 and 2020 changes in unrecognized tax benefits did not have a material effect on the company’s net income or cash flow. The company’s tax filings from 2018 to 2022 are subject to examination by the tax authorities. Tax filings from 2007 to 2017 have open objections and therefore are also subject to examination by the tax authorities. The Canada Revenue Agency has made certain adjustments to the company’s filings. Management has evaluated these adjustments and is formally disputing those matters to which the company disagrees. Many of these outstanding matters will not be resolved until after 2023. The impact on unrecognized tax benefits and the company’s effective income tax rate from these matters is not expected to be material. Resolution of the related tax positions could take many years to complete. It is difficult to predict the timing of resolution for tax positions since such timing is not entirely within the control of the company. The company classifies interest on income tax related balances as interest expense or interest income and classifies tax related penalties as operating expense. Unrecognized tax benefits are not classified as future commitments because the company does not expect there will be any cash impact from the final settlements as sufficient funds have been deposited with the Canada Revenue Agency.
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Employee retirement benefits |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee retirement benefits | Retirement benefits, which cover almost all retired employees and their surviving spouses, include pension income and certain health care and life insurance benefits. They are met through funded registered retirement plans and through unfunded supplementary benefits that are paid directly to recipients. Pension income benefits consist mainly of company-paid defined benefit plans that are based on years of service and final average earnings. The company shares in the cost of health care and life insurance benefits. The company’s benefit obligations are based on the projected benefit method of valuation that includes employee service to date and present compensation levels, as well as a projection of salaries to retirement. The expense and obligations for both funded and unfunded benefits are determined in accordance with accepted actuarial practices and U.S. GAAP. The process for determining retirement-income expense and related obligations includes making certain long-term assumptions regarding the discount rate, rate of return on plan assets and rate of compensation increases. The obligation and pension expense can vary significantly with changes in the assumptions used to estimate the obligation and the expected return on plan assets. The benefit obligations and plan assets associated with the company’s defined benefit plans are measured on December 31.
The discount rate for the purpose of calculating year-end postretirement benefits plan obligation is determined by using the Canadian Institute of Actuaries recommended spot yield curve for high-quality, long-term Canadian corporate bonds with an average maturity (or duration) approximating that of the liabilities. For the measurement of the accumulated postretirement benefit obligation, the assumed health care cost trend rates start with 6.01 percent in 2023 and gradually decline to 3.57 percent by 2040 and beyond.
Funding of registered retirement plans complies with federal and provincial pension regulations, and the company makes contributions to the plans based on an independent actuarial valuation. In accordance with authoritative guidance relating to the accounting for defined pension and other postretirement benefits plans, the overfunded or underfunded status of the company’s defined benefit postretirement plans was recorded as an asset or liability in the Consolidated balance sheet, and the changes in that funded status in the year in which the changes occurred was recognized through other comprehensive income.
The company establishes the long-term expected rate of return on plan assets by developing a forward-looking long-term return assumption for each asset class, taking into account factors such as the expected real return for the specific asset class and inflation. A single, long-term rate of return is then calculated as the weighted average of the target asset allocation percentages and the long-term return assumption for each asset class. The 2022 long-term expected return of 4.3 percent used in the calculations of pension expense compares to an actual rate of return of 5.6 percent and 6.5 percent over the last 10- and 20-year periods respectively, ending December 31, 2022.
Costs for defined contribution plans, primarily the employee savings plan, were $43 million in 2022 (2021 - $47 million, 2020 - $47 million). A summary of the change in accumulated other comprehensive income is shown in the table below:
The company’s investment strategy for pension plan assets reflects a long-term view, a careful assessment of the risks inherent in plan assets and liabilities and broad diversification to reduce the risk of the portfolio. The pension plan assets are primarily invested in passive global equity and domestic fixed income index funds to diversify risk while minimizing costs. The fixed income funds are largely invested in investment grade corporate and government debt securities with interest rate sensitivity designed to approximate the interest rate sensitivity of plan liabilities. The target asset allocation for the pension plan is reviewed periodically and set based on considerations such as risk, diversification and liquidity. The target asset allocation for equity securities is 30 percent with the remainder in fixed-income securities. The fair value measurement levels are accounting terms that refer to different methods of valuing assets. The terms do not represent the relative risk or credit quality of an investment. The 2022 fair value of the pension plan assets, including the level within the fair value hierarchy, is shown in the table below:
The 2021 fair value of the pension plan assets, including the level within the fair value hierarchy, is shown in the table below:
A summary of pension plans with accumulated benefit obligation and projected benefit obligation in excess of plan assets is shown in the table below:
Cash flows Benefit payments expected in:
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Other long-term obligations |
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Other Liabilities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other long-term obligations | 5. Other long-term obligations
The following table summarizes the activity in the liability for asset retirement obligations:
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Financial and derivative instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial and derivative instruments | 6. Financial and derivative instruments Financial instruments The fair value of the company’s financial instruments is determined by reference to various market data and other appropriate valuation techniques. There are no material differences between the fair value of the company’s financial instruments and the recorded carrying value. At December 31, 2022 and December 31, 2021, the fair value of long-term debt ($3,447 million and $4,447 million respectively, excluding finance lease obligations) was primarily a level 2 measurement. Derivative instruments The company’s size, strong capital structure and the complementary nature of its business segments reduce the company’s enterprise-wide risk from changes in commodity prices and currency exchange rates. In addition, the company uses commodity-based contracts, including derivatives, to manage commodity price risk and to generate returns from trading. Commodity contracts held for trading purposes are presented in the Consolidated statement of income on a net basis in the line “Revenues”. The company does not designate derivative instruments as a hedge for hedge accounting purposes. Credit risk associated with the company’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties. The company maintains a system of controls that includes the authorization, reporting and monitoring of derivative activity. At December 31, the net notional long / (short) position of derivative instruments was:
Realized and unrealized gain or (loss) on derivative instruments recognized in the Consolidated statement of income is included in the following lines on a before-tax basis:
The estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement is as follows:
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Share-based incentive compensation programs |
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based incentive compensation programs | 7. Share-based incentive compensation programs Share-based incentive compensation programs are designed to retain selected employees, reward them for high performance and promote individual contribution to sustained improvement in the company’s future business performance and shareholder value over the long-term. The nonemployee directors also participate in share-based incentive compensation programs. Restricted stock units and deferred share units Under the restricted stock unit plan, each unit entitles the recipient to the conditional right to receive from the company, upon vesting, an amount equal to the value of one common share of the company, based on the five-day average of the closing price of the company’s common shares on the Toronto Stock Exchange on and immediately prior to the vesting dates. For the majority of the units, 50 percent of the units vest on the third anniversary of the grant date, and the remainder vest on the seventh anniversary of the grant date. As a result of an employee stock program expansion implemented in 2022, some new participants will be eligible for awards granted that vest 100 percent after three years. The company may also issue units to the chairman, president and chief executive officer where 50 percent of the units vest on the fifth anniversary of the grant date and the remainder vest on the tenth anniversary of the grant date, except that for awards granted prior to 2020, the vesting of the tenth anniversary portion is delayed until retirement if later than 10 years. The deferred share unit plan is made available to nonemployee directors. The nonemployee directors can elect to receive all or part of their eligible directors’ fees in units. The number of units granted is determined at the end of each calendar quarter by dividing the dollar amount of the nonemployee director’s fees for that calendar quarter elected to be received as deferred share units by the average closing price of the company’s shares for the five consecutive trading days (“average closing price”) immediately prior to the last day of the calendar quarter. Additional units are granted to represent dividends on unexercised units, and are calculated by dividing the cash dividend payable on the company’s shares by the average closing price immediately prior to the payment date for that dividend and multiplying the resulting number by the number of deferred share units held by the recipient, as adjusted for any share splits. Deferred share units cannot be exercised until after termination of service as a director, including termination due to death, and must be exercised in their entirety in one election no later than December 31 of the year following the year of termination of service. On the exercise date, the cash value to be received for the units is determined based on the company’s average closing price immediately prior to the date of exercise, as adjusted for any share splits. All units require settlement by cash payments with the following exceptions. The restricted stock unit program provides that, for units granted to Canadian residents, the recipient may receive one common share of the company per unit or elect to receive the cash payment for the units that vest on the seventh year anniversary of the grant date. For units where 50 percent vest on the fifth anniversary of the grant date and the remainder vest on the tenth anniversary of grant, the recipient may receive one common share of the company per unit or elect to receive cash payment for all that vest. The company accounts for all units by using the fair-value-based method. The fair value of awards in the form of restricted stock and deferred share units is the market price of the company’s stock. Under this method, compensation expense related to the units of these programs is measured each reporting period based on the company’s current stock price and is recorded in the Consolidated statement of income over the requisite service period of each award. The following table summarizes information about these units for the year ended December 31, 2022:
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Investment and other income |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment and other income | 8. Investment and other income Investment and other income includes gains and losses on asset sales as follows:
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Litigation and other contingencies |
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Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and other contingencies | 9. Litigation and other contingencies A variety of claims have been made against Imperial and its subsidiaries in a number of lawsuits. Management has regular litigation reviews, including updates from corporate and outside counsel to assess the need for accounting recognition or disclosure of these contingencies. The company accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The company does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavourable outcome is reasonably possible and which are significant, the company discloses the nature of the contingency and, where feasible, an estimate of the possible loss. For purposes of the company’s contingency disclosures, “significant” includes material matters, as well as other matters which management believes should be disclosed. Based on a consideration of all relevant facts and circumstances, the company does not believe the ultimate outcome of any currently pending lawsuits against the company will have a material adverse effect on the company’s operations, financial condition, or financial statements taken as a whole. Additionally, the company has other commitments arising in the normal course of business for operating and capital needs, all of which are expected to be fulfilled with no adverse consequences material to the company’s operations or financial condition. Unconditional purchase obligations, as defined by accounting standards, are those long-term commitments that are non-cancelable or cancelable only under certain conditions and that third parties have used to secure financing for the facilities that will provide the contracted goods and services. The company has not entered into any unconditional purchase obligations. As a result of the completed sale of Imperial’s remaining company-owned Esso retail sites, the company was contingently liable at December 31, 2022, for guarantees relating to performance under contracts of other third-party obligations totalling $17 million (2021 - $21 million).
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Common shares |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares | 10. Common shares
The most recent 12-month normal course issuer bid program came into effect June 29, 2022, under which Imperial continued its existing share purchase program. The program enabled the company to purchase up to a maximum of 31,833,809 common shares (5 percent of the total shares on June 15, 2022) which included shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid. As in the past, Exxon Mobil Corporation advised the company that it intended to participate to maintain its ownership percentage at approximately 69.6 percent. The program completed on October 21, 2022 as a result of the company purchasing the maximum allowable number of shares under the program. On May 6, 2022, the company commenced a substantial issuer bid pursuant to which it offered to purchase for cancellation up to $2.5 billion of its common shares through a modified Dutch auction and proportionate tender offer. The substantial issuer bid was completed on June 15, 2022, with the company taking up and paying for 32,467,532 common shares at a price of $77.00 per share, for an aggregate purchase of $2.5 billion and 4.9 percent of Imperial’s issued and outstanding shares at the close of business on May 2, 2022. This included 22,597,379 shares purchased from Exxon Mobil Corporation by way of a proportionate tender to maintain its ownership percentage at approximately 69.6 percent. On November 4, 2022, the company commenced a substantial issuer bid pursuant to which it offered to purchase for cancellation up to $1.5 billion of its common shares through a modified Dutch auction and proportionate tender offer. The substantial issuer bid was completed on December 14, 2022, with the company taking up and paying for 20,689,655 common shares at a price of $72.50 per share, for an aggregate purchase of $1.5 billion and 3.4 percent of Imperial’s issued and outstanding shares at the close of business on October 31, 2022. This included 14,399,985 shares purchased from Exxon Mobil Corporation by way of a proportionate tender to maintain its ownership percentage at approximately 69.6 percent. The excess of the purchase cost over the stated value of shares purchased has been recorded as a distribution of earnings reinvested. The company’s common share activities are summarized below:
The following table provides the calculation of basic and diluted earnings per common share and the dividends declared by the company on its outstanding common shares:
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Miscellaneous financial information |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Miscellaneous financial information | 11. Miscellaneous financial information LIFO inventory In 2022, net income included an after-tax gain of $62 million (2021 – $13 million loss, 2020 – $19 million loss) attributable to the effect of changes in last-in, first-out (LIFO) inventories. The replacement cost of inventories was estimated to exceed their LIFO carrying values at December 31, 2022 by about $2 billion (2021 – $1.8 billion). Inventories of crude oil and products at year-end consisted of the following:
In 2021, the company recorded an unfavourable $74 million ($82 million, before tax) inventory adjustment (including the proportionate share of LIFO changes) related to reconciliations of additives and products inventory at equity and third-party terminals. The out-of-period impact of $57 million ($63 million, before tax) occurred over a number of years, and has been resolved. The company determined that the adjustment was not material to the consolidated financial statements for the year ended December 31, 2021, or any of the prior periods related to the adjustment. Accordingly, comparative periods presented in the consolidated financial statements have not been restated. Research and development Research expenditures are mainly spent on developing technologies to improve bitumen recovery, reduce costs and reduce the environmental impact of upstream operations, including technologies to reduce greenhouse gas emissions intensity, supporting environmental and process improvements in the refineries, as well as accessing ExxonMobil’s research worldwide. The company has scientific research agreements with affiliates of ExxonMobil, which provide for technical and engineering work to be performed by all parties, the exchange of technical information and the assignment and licensing of patents, and patent rights. These agreements provide mutual access to scientific and operating data related to nearly every phase of the petroleum and petrochemical operations of the parties. Net research and development costs charged to expenses in 2022 were $74 million (2021 – $89 million, 2020 – $105 million). These costs are included in expenses due to the uncertainty of future benefits. Accounts payable and accrued liabilities “Accounts payable and accrued liabilities” included accrued taxes other than income taxes of $458 million at December 31, 2022 (2021 – $415 million). Goodwill impairment In the first quarter of 2020, the company assessed its goodwill balances for impairment and recognized a non-cash goodwill impairment charge of $20 million in the company’s Upstream segment. The goodwill impairment was reflected in “Depreciation and depletion” on the Consolidated statement of income and “Goodwill” on the Consolidated balance sheet. The remaining balance of goodwill is associated with the Downstream segment. Government assistance In 2022, the company prospectively adopted the Financial Accounting Standards Board’s standard, Government Assistance (Topic 832). The standard requires the annual disclosure of certain types of government assistance not otherwise covered by authoritative accounting guidance. The company receives allowances from governments in the form of emission credits as a result of performing better than facility level expectations for emission targets and records these at a nominal amount in the Consolidated balance sheet. During 2022, government assistance was immaterial to the company’s financial results
The company received subsidies as part of the Government of Canada’s COVID-19 Economic Response Plan, which included the company’s proportionate share of a joint venture. It was recognized as a reduction to expense (2020 – $155 million before tax) and was included in the Consolidated statement of income, primarily as part of “Production and manufacturing”. |
Financing and additional notes and loans payable information |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing and additional notes and loans payable information | 12. Financing and additional notes and loans payable information
During the second quarter of 2022, the company reduced its existing $500 million committed long-term line of credit to $250 million and extended the maturity date to June 30, 2023. Subsequently, in the fourth quarter of 2022, this committed long-term line of credit was cancelled in full. The company also extended one of its $250 million committed long-term lines of credit to June 30, 2024. In November 2022, the company extended the maturity date of an existing $250 million committed short-term line of credit to November 2023. The company has not drawn on any of its outstanding $500 million of available credit facilities. In 2021, the company repaid the $111 million outstanding balance and terminated the non-interest bearing, revolving demand loan under an arrangement with an affiliate company of ExxonMobil.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | 13. Leases The company generally purchases the property, plant and equipment used in operations, but there are situations where assets are leased, primarily storage tanks, rail cars, marine vessels and transportation facilities. Right of use assets and lease liabilities are established on the balance sheet for leases with an expected term greater than one year, by discounting the amounts fixed in the lease agreement for the duration of the lease which is reasonably certain, considering the probability of exercising any early termination and extension options. The portion of the fixed payment related to service costs for tankers and finance leases is excluded from the calculation of right of use assets and lease liabilities. Usually, assets are leased only for a portion of their useful lives and are accounted for as operating leases. In limited situations, assets are leased for nearly all of their useful lives and are accounted for as finance leases. In general, leases are capitalized using the company’s incremental borrowing rate. Variable payments under these lease agreements are not significant. Residual value guarantees, restrictions, or covenants related to leases, and transactions with related parties are also not significant. The company’s activities as a lessor are not material. The table below summarizes the total lease cost incurred:
The following table summarizes the amounts related to operating leases and finance leases recorded on the Consolidated balance sheet, weighted-average remaining lease term and weighted-average discount rates applied at December 31:
The maturity analysis of the company’s lease liabilities as at December 31 are summarized below:
In addition to the operating lease liabilities in the table immediately above, at December 31, 2022, additional undiscounted commitments for leases not yet commenced totalled $14 million (2021 - $5 million). Estimated cash payments for operating and finance leases not yet commenced are $5 million in both 2023 and 2024. The table below summarizes the cash paid for amounts included in the measurement of lease liabilities and the right of use assets obtained in exchange for new lease liabilities:
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Leases | 13. Leases The company generally purchases the property, plant and equipment used in operations, but there are situations where assets are leased, primarily storage tanks, rail cars, marine vessels and transportation facilities. Right of use assets and lease liabilities are established on the balance sheet for leases with an expected term greater than one year, by discounting the amounts fixed in the lease agreement for the duration of the lease which is reasonably certain, considering the probability of exercising any early termination and extension options. The portion of the fixed payment related to service costs for tankers and finance leases is excluded from the calculation of right of use assets and lease liabilities. Usually, assets are leased only for a portion of their useful lives and are accounted for as operating leases. In limited situations, assets are leased for nearly all of their useful lives and are accounted for as finance leases. In general, leases are capitalized using the company’s incremental borrowing rate. Variable payments under these lease agreements are not significant. Residual value guarantees, restrictions, or covenants related to leases, and transactions with related parties are also not significant. The company’s activities as a lessor are not material. The table below summarizes the total lease cost incurred:
The following table summarizes the amounts related to operating leases and finance leases recorded on the Consolidated balance sheet, weighted-average remaining lease term and weighted-average discount rates applied at December 31:
The maturity analysis of the company’s lease liabilities as at December 31 are summarized below:
In addition to the operating lease liabilities in the table immediately above, at December 31, 2022, additional undiscounted commitments for leases not yet commenced totalled $14 million (2021 - $5 million). Estimated cash payments for operating and finance leases not yet commenced are $5 million in both 2023 and 2024. The table below summarizes the cash paid for amounts included in the measurement of lease liabilities and the right of use assets obtained in exchange for new lease liabilities:
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Long-term debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 14. Long-term debt
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Accounting for suspended exploratory well costs |
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Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Accounting for suspended exploratory well costs | 15. Accounting for suspended exploratory well costs The company continues capitalization of exploratory well costs when the well has found a sufficient quantity of reserves to justify its completion as a producing well and the company is making sufficient progress assessing the reserves and the economic and operating viability of the project. The term “project” as used in this report can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports. The company had no capitalized suspended exploratory well costs as at December 31, 2022, 2021 and 2020. Exploration activity involves drilling multiple wells, over a number of years, to fully evaluate a project. The company had no projects with exploratory wells costs capitalized as at December 31, 2022, 2021 and 2020.
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Transactions with related parties |
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Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Transactions with related parties | 16. Transactions with related parties Revenues and expenses of the company also include the results of transactions with affiliated companies of ExxonMobil in the normal course of operations. These were conducted on terms comparable to those which would have been conducted with unrelated parties and primarily consisted of the purchase and sale of crude oil, natural gas, petroleum and chemical products, as well as technical, engineering and research and development costs. Transactions with ExxonMobil also included amounts paid and received in connection with the company’s participation in a number of upstream activities conducted jointly in Canada. In addition, the company has existing agreements with ExxonMobil: a)To provide computer and customer support services to the company and to share common business and operational support services that allow the companies to consolidate duplicate work and systems; b)To operate certain western Canada production properties owned by ExxonMobil, as well as provide for the delivery of management, business and technical services to ExxonMobil in Canada. These agreements are designed to provide organizational efficiencies and to reduce costs. No separate legal entities were created from these arrangements. Separate books of account continue to be maintained for the company and ExxonMobil. The company and ExxonMobil retain ownership of their respective assets, and there is no impact on operations or reserves; c)To provide for the option of equal participation in new upstream opportunities; and d)To enter into derivative agreements on each other’s behalf. The company had an existing agreement with ExxonMobil to provide for the delivery of management, business and technical services to Syncrude Canada Ltd. by ExxonMobil, which was terminated in connection with the transfer of operatorship of Syncrude on September 30, 2021. Certain charges from ExxonMobil have been capitalized; they are not material in the aggregate. The amounts of purchases and revenues by Imperial in 2022, with ExxonMobil, were $3,719 million and $17,042 million respectively (2021 - $2,669 million and $8,777 million respectively). As at December 31, 2022, the company had an outstanding long-term loan of $3,447 million (2021 – $4,447 million) from ExxonMobil (see note 14, "Long-term debt", on page 104 and note 12, "Financing and additional notes and loans payable information", on page 101 for further details). The amount of financing costs with ExxonMobil were $78 million (2021 - $28 million). Imperial has other related party transactions not detailed above in note 16, as they are not significant.
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Other comprehensive income (loss) information |
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Other comprehensive income (loss) information | 17. Other comprehensive income (loss) information Changes in accumulated other comprehensive income (loss):
Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax income (expense):
Income tax expense (credit) for components of other comprehensive income (loss):
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Divestment activities |
12 Months Ended |
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Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestment activities | 18. Divestment activities Jointly with ExxonMobil Canada, Imperial signed an agreement in the second quarter of 2022 with Whitecap Resources Inc. for the sale of its interests in XTO Energy Canada which included assets in the Montney and Duvernay areas of central Alberta, for total cash consideration of approximately $1.9 billion ($0.9 billion Imperial's share). The transaction closed on August 31, 2022 and the company recognized a gain of approximately $0.2 billion, after tax. Imperial’s total assets associated with this transaction include about $0.9 billion (about $0.8 billion of property, plant and equipment) and about $0.2 billion total liabilities in the Upstream segment. |
Summary of significant accounting policies (Policies) |
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Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of subsidiaries the company controls. Intercompany accounts and transactions are eliminated. Subsidiaries include those companies in which Imperial has both an equity interest and the continuing ability to unilaterally determine strategic, operating, investing and financing policies. Imperial Oil Resources Limited and Canada Imperial Oil Limited are significant subsidiaries included in the consolidated financial statements and are wholly owned by Imperial Oil Limited. The consolidated financial statements also include the company’s share of the undivided interest in certain upstream assets, liabilities, revenues and expenses, including its 70.96 percent interest in the Kearl joint venture and its 25 percent interest in the Syncrude joint venture. |
Revenues | Revenues Imperial generally sells crude oil, natural gas and petroleum and chemical products under short-term agreements at prevailing market prices. In some cases, products may be sold under long-term agreements, with periodic price adjustments to reflect market conditions. Revenue is recognized at the amount the company expects to receive when the customer has taken control, which is typically when title transfers and the customer has assumed the risks and rewards of ownership. The prices of certain sales are based on price indices that are sometimes not available until the next period. In such cases, estimated realizations are accrued when the sale is recognized, and are finalized when final information is available. Such adjustments to revenue from performance obligations satisfied in previous periods are not significant. Payment for revenue transactions is typically due within 30 days. Revenues include amounts billed to customers for shipping and handling. Shipping and handling costs incurred up to the point of final storage prior to delivery to a customer are included in “Purchases of crude oil and products” in the Consolidated statement of income. Delivery costs from final storage to customer are recorded as a marketing expense in “Selling and general” expenses. The company does not enter into ongoing arrangements whereby it is required to repurchase its products, nor does the company provide the customer with a right of return. Future volume delivery obligations that are unsatisfied at the end of the period are expected to be fulfilled through ordinary production or purchases. These performance obligations are based on market prices at the time of the transaction and are fully constrained due to market price volatility. Purchases and sales of inventory with the same counterparty that are entered into in contemplation of one another are combined and recorded as exchanges measured at the book value of the item sold. “Revenues” and “Accounts receivable - net” include revenue and receivables both within the scope of ASC 606 Revenue from Contracts with Customers, and those outside the scope of ASC 606. Long-term receivables are primarily from receivables outside the scope of ASC 606. Contract assets are mainly from marketing assistance programs and are not significant. Contract liabilities are mainly customer prepayments and accruals of expected volume discounts, and are not significant.
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Consumer taxes | Consumer taxes Taxes levied on the consumer and collected by the company are excluded from the Consolidated statement of income. These are primarily provincial taxes on motor fuels, the federal goods and services tax and the federal / provincial harmonized sales tax.
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Derivative instruments | Derivative instruments Imperial may use derivative instruments for trading purposes and to offset exposures associated with commodity prices, currency exchange rates and interest rates that arise from existing assets, liabilities, firm commitments and forecasted transactions. All derivative instruments, except those designated as normal purchase and normal sale, are recorded at fair value. Derivative assets and liabilities with the same counterparty are netted if the right of offset exists and certain other criteria are met. Collateral payables or receivables are netted against derivative assets and derivative liabilities, respectively. Recognition and classification of the gain or loss that results from adjusting a derivative to fair value depends on the purpose for the derivative. The gains and losses resulting from changes in the fair value of derivatives are recorded under “Revenues” or “Purchases of crude oil and products” in the Consolidated statement of income.
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Fair value | Fair value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Hierarchy levels 1, 2 and 3 are terms for the priority of inputs to valuation techniques used to measure fair value. Hierarchy level 1 inputs are quoted prices in active markets for identical assets or liabilities. Hierarchy level 2 inputs are inputs other than quoted prices included within level 1 that are directly or indirectly observable for the asset or liability. Hierarchy level 3 inputs are inputs that are not observable in the market. |
Inventories | Inventories Inventories are recorded at the lower of current market value or cost. The cost of crude oil and products is determined primarily using the last-in, first-out (LIFO) method. LIFO was selected over the alternative first-in, first-out and average cost methods because it provides a better matching of current costs with the revenues generated in the period. Inventory costs include expenditures and other charges (including depreciation), directly or indirectly incurred in bringing the inventory to its existing condition and location. Selling and general expenses are reported as period costs and excluded from inventory costs. Inventories of materials and supplies are valued at cost or less.
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Investments | Investments The company’s interests in the underlying net assets of affiliates it does not control, but over which it exercises significant influence, are accounted for using the equity method. They are recorded at the original cost of the investment plus Imperial’s share of earnings since the investment was made, less dividends received. Imperial’s share of the after-tax earnings of these investments is included in “Investment and other income” in the Consolidated statement of income. Investments in equity securities, other than consolidated subsidiaries and equity method investments, are measured at fair value, with changes in the fair value recognized in net income. The company uses a modified approach for equity securities that do not have a readily determinable fair value. This modified approach measures investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions in similar investments of the same issuer. Dividends from these investments are included in “Investment and other income”. These investments represent interests in non-publicly traded pipeline companies and a rail loading joint venture that facilitate the sale and purchase of liquids in the conduct of company operations. Other parties who also have an equity interest in these investments share in the risks and rewards according to their percentage of ownership. Imperial does not invest in these investments in order to remove liabilities from its balance sheet.
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Property, plant and equipment | Property, plant and equipment Cost basis Imperial uses the “successful efforts” method to account for its exploration and production activities. Under this method, costs are accumulated on a field-by-field basis. Costs incurred to purchase, lease, or otherwise acquire a property (whether unproved or proved) are capitalized when incurred. Exploratory well costs are carried as an asset when the well has found a sufficient quantity of reserves to justify its completion as a producing well and where the company is making sufficient progress assessing the reserves and the economic and operating viability of the project. Exploratory well costs not meeting these criteria are charged to expense. Other exploratory expenditures, including geophysical costs and annual lease rentals, are expensed as incurred. Development costs, including costs of productive wells and development dry holes, are capitalized. Interest costs incurred to finance expenditures during the construction phase of projects are capitalized as part of the historical cost of acquiring the constructed assets. The project construction phase commences with the development of the detailed engineering design and ends when the constructed assets are ready for their intended use. Capitalized interest costs are included in property, plant and equipment and are depreciated over the service life of the related assets. Maintenance and repair costs, including planned major maintenance, are expensed as incurred. Improvements that increase or prolong the service life or capacity of an asset are capitalized. Depreciation, depletion and amortization Depreciation, depletion and amortization are primarily determined under either the unit-of-production method or the straight-line method, which is based on estimated asset service life taking obsolescence into consideration. Depreciation and depletion for assets associated with producing properties begin at the time when production commences on a regular basis. Depreciation for other assets begins when the asset is in place and ready for its intended use. Assets under construction are not depreciated or depleted. Acquisition costs of proved properties are amortized using a unit-of-production method, computed on the basis of total proved oil and natural gas reserve volumes. Capitalized exploratory drilling and development costs associated with productive depletable extractive properties are amortized using the unit-of-production rates based on the amount of proved developed reserves of oil and gas that are estimated to be recoverable from existing facilities using current operating methods. Under the unit-of-production method, oil and natural gas volumes are considered produced once they have been measured through meters at custody transfer or sales transaction points at the outlet valve on the lease or field storage tank. In the event that the unit-of-production method does not result in an equitable allocation of cost over the economic life of an upstream asset, an alternative method is used. The straight-line method is used in limited situations where the expected life of the asset does not reasonably correlate with that of the underlying reserves. For example, certain assets used in the production of oil and natural gas have a shorter life than the reserves, and as such, the company uses straight-line depreciation to ensure the asset is fully depreciated by the end of its useful life. Investments in mining heavy equipment and certain ore processing plant assets at oil sands mining properties are depreciated on a straight-line basis over a maximum of 15 years and 50 years respectively. Depreciation of other plant and equipment is calculated using the straight-line method, based on the estimated service life of the asset. To the extent that proved reserves for a property are substantially de-booked and that property continues to produce such that the resulting depreciation charge does not result in an equitable allocation of cost over the expected life, assets will be depreciated using a unit-of-production method based on reserves determined at the most recent SEC price which results in a more meaningful quantity of proved reserves, appropriately adjusted for production and technical changes. This approach was applied in 2021, with the corresponding effect on depreciation expense being immaterial compared to prior periods. For 2022 and 2023, all properties have sufficient reserves at current SEC prices which will enable equitable allocation of cost over the economic lives of the Upstream assets. Investments in refinery and chemical process manufacturing equipment are generally depreciated on a straight-line basis over a 25-year life. Maintenance and repairs, including planned major maintenance, are expensed as incurred. Major renewals and improvements are capitalized and the assets replaced are retired. Impairment assessment The company tests assets or groups of assets for recoverability on an ongoing basis whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. Among the events or changes in circumstances which could indicate that the carrying value of an asset or asset group may not be recoverable are the following: •a significant decrease in the market price of a long-lived asset; •a significant adverse change in the extent or manner in which an asset is being used or in its physical condition including a significant decrease in current and projected reserve volumes; •a significant adverse change in legal factors or in the business climate that could affect the value, including an adverse action or assessment by a regulator; •an accumulation of project costs significantly in excess of the amount originally expected; •a current-period operating loss combined with a history and forecast of operating or cash flow losses; and •a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The company has a robust process to monitor for indicators of potential impairment across its asset groups throughout the year. This process is aligned with the requirements of ASC 360 and ASC 932 and relies, in part, on the company’s planning and budgeting cycle. Asset valuation analysis, profitability reviews and other periodic control processes assist the company in assessing whether events or changes in circumstances indicate the carrying amounts of any of its assets may not be recoverable. Because the lifespans of the vast majority of the company’s major assets are measured in decades, the future cash flows of these assets are predominantly based on long-term oil and natural gas commodity prices, industry margins, and development and production costs. Significant reductions in the company’s view of oil or natural gas commodity prices or margin ranges, especially the longer-term prices and margins, and changes in the development plans, including decisions to defer, reduce or eliminate planned capital spending, can be an indicator of potential impairment. Other events or changes in circumstances, including indicators outlined in ASC 360 can be indicators of potential impairment as well. In general, Imperial does not view temporarily low prices or margins as an indication of impairment. Management believes that prices over the long term must be sufficient to generate investments in energy supply to meet global demand. Although prices will occasionally drop significantly, industry prices over the long term will continue to be driven by market supply and demand fundamentals. On the supply side, industry production from mature fields is declining. This is being offset by investments to generate production from new discoveries, field developments, and technology and efficiency advancements. OPEC investment activities and production policies also have an impact on world oil supplies. The demand side is largely a function of general economic activities, alternative energy sources and levels of prosperity. During the lifespan of its major assets, the company expects that oil and gas prices and industry margins will experience significant volatility. Consequently, these assets will experience periods of higher earnings and periods of lower earnings, or even losses. In assessing whether events or changes in circumstances indicate the carrying value of an asset may not be recoverable, the company considers recent periods of operating losses in the context of its longer-term view of prices and margins. In the Upstream, the standardized measure of discounted cash flows included in the “Supplemental information on oil and gas exploration and production activities” is required to use prices based on the average of first-day-of-month prices in the year. These prices represent discrete points in time and could be higher or lower than the company’s price assumptions which are used for impairment assessments. The company believes the standardized measure does not provide a reliable estimate of the expected future cash flows to be obtained from the development and production of its oil and gas properties or of the value of its oil and gas reserves and therefore does not consider it relevant in determining whether events or changes in circumstances indicate the need for an impairment assessment. Outlook for Energy and cash flow assessment The annual planning and budgeting process, known as the company plan, is the mechanism by which resources (capital, operating expenses and people) are allocated across the company. The foundation for the energy supply and demand assumptions supporting the company plan begins with Exxon Mobil Corporation’s Outlook for Energy (the Outlook), which contains demand and supply projections based on its assessment of current trends in technology, government policies, consumer preferences, geopolitics, economic development, and other factors. Reflective of the existing global policy environment, the Outlook does not project the degree of required future policy and technology advancement and deployment for the world or the company, to meet net zero by 2050. As future policies and technology advancements emerge, they will be incorporated into the Outlook, and consequently, the company’s business plans will be updated accordingly. If events or changes in circumstances indicate that the carrying value of an asset may not be recoverable, the company estimates the future undiscounted cash flows of the affected properties to judge the recoverability of carrying amounts. In performing this assessment, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. Cash flows used in recoverability assessments are based on the assumptions developed in the company plan, which is reviewed and approved by the board of directors, and are consistent with the criteria management uses to evaluate investment opportunities. These evaluations make use of the company’s assumptions of future capital allocations, crude oil and natural gas commodity prices including price differentials, refining and chemical margins, volumes, development and operating costs, including greenhouse gas emissions prices, and foreign currency exchange rates. Volumes are based on projected field and facility production profiles, throughput, or sales. Management’s estimate of upstream production volumes used for projected cash flows makes use of proved reserve quantities and may include risk-adjusted unproved reserve quantities. The greenhouse gas emission prices reflect existing or anticipated policy actions of applicable provincial and federal governments. Fair value of impaired assets An asset group is impaired if its estimated future undiscounted cash flows are less than the asset group’s carrying value. Impairments are measured by the excess of the carrying value over fair value. The assessment of fair value is based on the views of a likely market participant. The principal parameters used to establish fair value include estimates of acreage values and flowing production metrics from comparable market transactions, market-based estimates of historical cash flow multiples, and discounted cash flows. Inputs and assumptions used in discounted cash flow models include estimates of future production volumes, throughput and product sales volumes, commodity prices which are consistent with the average of third-party industry experts and government agencies, refining and chemical margins, drilling and development costs, operating costs, and discount rates which are reflective of the characteristics of the asset group. Other impairment estimates Unproved properties are assessed periodically to determine whether they have been impaired. Significant unproved properties are assessed for impairment individually, and valuation allowances against the capitalized costs are recorded based on the company’s future development plans, the estimated economic chance of success and the length of time that the company expects to hold the properties. Properties that are not individually significant are aggregated by groups and amortized based on development risk and average holding period. Long-lived assets that are held for sale are evaluated for possible impairment by comparing the carrying value of the asset with its fair value less the cost to sell. If the net book value exceeds the fair value less cost to sell, the assets are considered impaired and adjusted to the lower value. Gains on sales of proved and unproved properties are only recognized when there is neither uncertainty about the recovery of costs applicable to any interest retained nor any substantial obligation for future performance by the company.
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Asset retirement obligations and other environmental liabilities | Asset retirement obligations and other environmental liabilities The company incurs retirement obligations for certain assets. The fair values of these obligations are recorded as liabilities on a discounted basis, which is typically at the time the assets are installed. In the estimation of fair value, the company uses assumptions and judgments regarding such factors as the existence of a legal obligation for an asset retirement obligation, technical assessments of the assets, estimated amounts and timing of settlements, discount rates and inflation rates. Asset retirement obligations incurred in the current period were Level 3 fair value measurements. The costs associated with these liabilities are capitalized as part of the related assets and depreciated as the reserves are produced. Over time, the liabilities are accreted for the change in their present value. Asset retirement obligations for downstream and chemical facilities generally become firm at the time the facilities are permanently shut down and dismantled. These obligations may include the costs of asset disposal and additional soil remediation. However, these sites generally have indeterminate lives based on plans for continued operations, and as such, the fair value of the conditional legal obligations cannot be measured, since it is impossible to estimate the future settlement dates of such obligations. On page 93, note 5 to the consolidated financial statements provides a three-year continuity table detailing the changes in asset retirement obligations. The company accrues environmental liabilities when it is probable that obligations have been incurred and the amount can be reasonably estimated. Provisions for environmental liabilities are determined based on engineering estimated costs, taking into account the anticipated method and extent of remediation consistent with legal requirements, current technology and the possible use of the location. These provisions are not reduced by possible recoveries from third parties and projected cash expenditures are not discounted.
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Foreign-currency translation | Foreign-currency translation Monetary assets and liabilities in foreign currencies have been translated at the rates of exchange prevailing on December 31. Any exchange gains or losses are recognized in income. |
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments |
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Disaggregation of Revenue |
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Income taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Income Tax Expense (Benefit) |
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Components of Deferred Income Tax Liabilities and Assets | Components of deferred income tax liabilities and assets as at December 31 were:
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Unrecognized Tax Benefits | The following table summarizes the movement in unrecognized tax benefits:
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Employee retirement benefits (Tables) |
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---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assumptions Used to Determine Benefit Obligations | The benefit obligations and plan assets associated with the company’s defined benefit plans are measured on December 31.
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Change in Plan Assets of Pension and Other Postretirement Benefits |
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Amounts Recorded in Consolidated Balance Sheet and Accumulated Other Comprehensive Income |
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Assumptions Used to Determine Periodic Benefit Cost |
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Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | A summary of the change in accumulated other comprehensive income is shown in the table below:
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Fair Value of Pension Plan Assets Including Level within Fair Value Hierarchy | The 2022 fair value of the pension plan assets, including the level within the fair value hierarchy, is shown in the table below:
The 2021 fair value of the pension plan assets, including the level within the fair value hierarchy, is shown in the table below:
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Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets | A summary of pension plans with accumulated benefit obligation and projected benefit obligation in excess of plan assets is shown in the table below:
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Benefit Payments Expected | Benefit payments expected in:
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Other long-term obligations (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Long-Term Obligations |
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Schedule of Asset Retirement Obligations | The following table summarizes the activity in the liability for asset retirement obligations:
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Financial and derivative instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Long Short Position Of Derivative Instruments | At December 31, the net notional long / (short) position of derivative instruments was:
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Summary of Realized and Unrealized Gain or (Loss) on Derivative Instruments | Realized and unrealized gain or (loss) on derivative instruments recognized in the Consolidated statement of income is included in the following lines on a before-tax basis:
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Summary of Estimated Fair Value of Financial Instruments | The estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement is as follows:
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Share-based incentive compensation programs (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Information about Incentive Share, Deferred Share and Restricted Stock Units | The following table summarizes information about these units for the year ended December 31, 2022:
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Investment and other income (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains and Losses on Asset Sales | Investment and other income includes gains and losses on asset sales as follows:
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Common shares (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Common Shares |
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Common Share Activities | The company’s common share activities are summarized below:
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Calculation of Basic and Diluted Earnings Per Share | The following table provides the calculation of basic and diluted earnings per common share and the dividends declared by the company on its outstanding common shares:
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Miscellaneous financial information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories of Crude Oil and Products | Inventories of crude oil and products at year-end consisted of the following:
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Financing and additional notes and loans payable information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing and Additional Notes and Loans Payable Information |
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Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Lease Cost | The table below summarizes the total lease cost incurred:
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Schedule Of Operating Leases and Finance Leases Recorded In Balance Sheet | The following table summarizes the amounts related to operating leases and finance leases recorded on the Consolidated balance sheet, weighted-average remaining lease term and weighted-average discount rates applied at December 31:
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Maturity Of Lease Liabilities | The maturity analysis of the company’s lease liabilities as at December 31 are summarized below:
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Schedule Of Measurement Of Lease Liabilities and Right Of Use Assets |
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Long-term debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt |
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Other comprehensive income (loss) information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss):
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Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) - Before-Tax Income (Expense) | Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax income (expense):
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Income Tax Expense (Credit) for Components of Other Comprehensive Income (Loss) | Income tax expense (credit) for components of other comprehensive income (loss):
|
Summary of significant accounting policies - Narrative (Detail) |
12 Months Ended |
---|---|
Dec. 31, 2022 | |
Kearl Joint Venture | |
Significant Accounting Policies [Line Items] | |
Undivided interest in oil and gas activities | 70.96% |
Syncrude Joint Venture | |
Significant Accounting Policies [Line Items] | |
Undivided interest in oil and gas activities | 25.00% |
Refinery And Chemical Process | |
Significant Accounting Policies [Line Items] | |
Property plant and equipment, useful life | 25 years |
Maximum | Mining Heavy Equipment | |
Significant Accounting Policies [Line Items] | |
Property plant and equipment, useful life | 15 years |
Maximum | Ore Processing Plant Assets | |
Significant Accounting Policies [Line Items] | |
Property plant and equipment, useful life | 50 years |
Business segments (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Revenues and other income | |||
Revenues | $ 59,413 | $ 37,508 | $ 22,284 |
Investment and other income (note 8, 18) | 257 | 82 | 104 |
Total revenues and other income | 59,670 | 37,590 | 22,388 |
Expenses | |||
Exploration (note 15) | 5 | 32 | 13 |
Purchases of crude oil and products (note 11) | 37,742 | 23,174 | 13,293 |
Production and manufacturing (note 11) | 7,404 | 6,316 | 5,535 |
Selling and general | 882 | 784 | 741 |
Federal excise tax and fuel charge | 2,179 | 1,928 | 1,736 |
Depreciation and depletion (note 11) | 1,897 | 1,977 | 3,293 |
Non-service pension and postretirement benefit | 17 | 42 | 121 |
Financing (note 12) | 60 | 54 | 64 |
Total expenses | 50,186 | 34,307 | 24,796 |
Income (loss) before income taxes (note 11) | 9,484 | 3,283 | (2,408) |
Income taxes (note 3) | 2,144 | 804 | (551) |
Net income (loss) (note 11) | 7,340 | 2,479 | (1,857) |
Cash flows from (used in) operating activities | 10,482 | 5,476 | 798 |
Capital and exploration expenditures | 1,490 | 1,140 | 874 |
Property, plant and equipment | |||
Cost | 54,568 | 56,762 | 55,771 |
Accumulated depreciation and depletion | (24,062) | (25,522) | (23,737) |
Net property, plant and equipment | 30,506 | 31,240 | 32,034 |
Total assets | 43,524 | 40,782 | 38,031 |
Corporate and other | |||
Revenues and other income | |||
Revenues | 0 | 0 | 0 |
Investment and other income (note 8, 18) | 79 | 10 | 19 |
Total revenues and other income | 79 | 10 | 19 |
Expenses | |||
Exploration (note 15) | 0 | 0 | 0 |
Purchases of crude oil and products (note 11) | 0 | 0 | 0 |
Production and manufacturing (note 11) | 0 | 0 | 0 |
Selling and general | 150 | 128 | 35 |
Federal excise tax and fuel charge | 0 | 0 | 0 |
Depreciation and depletion (note 11) | 27 | 26 | 24 |
Non-service pension and postretirement benefit | 17 | 42 | 121 |
Financing (note 12) | 54 | 39 | 61 |
Total expenses | 248 | 235 | 241 |
Income (loss) before income taxes (note 11) | (169) | (225) | (222) |
Income taxes (note 3) | (38) | (53) | (52) |
Net income (loss) (note 11) | (131) | (172) | (170) |
Cash flows from (used in) operating activities | (59) | (47) | (64) |
Capital and exploration expenditures | 57 | 24 | 41 |
Property, plant and equipment | |||
Cost | 863 | 806 | 782 |
Accumulated depreciation and depletion | (343) | (316) | (290) |
Net property, plant and equipment | 520 | 490 | 492 |
Total assets | 5,312 | 3,196 | 1,632 |
Eliminations | |||
Revenues and other income | |||
Revenues | (27,134) | (14,795) | (4,172) |
Total revenues and other income | (27,134) | (14,795) | (4,172) |
Expenses | |||
Exploration (note 15) | 0 | 0 | 0 |
Purchases of crude oil and products (note 11) | (27,128) | (14,789) | (4,167) |
Production and manufacturing (note 11) | 0 | 0 | 0 |
Selling and general | (6) | (6) | (5) |
Federal excise tax and fuel charge | 0 | 0 | 0 |
Depreciation and depletion (note 11) | 0 | 0 | 0 |
Non-service pension and postretirement benefit | 0 | 0 | 0 |
Financing (note 12) | 0 | 0 | 0 |
Total expenses | (27,134) | (14,795) | (4,172) |
Income (loss) before income taxes (note 11) | 0 | 0 | 0 |
Income taxes (note 3) | 0 | 0 | 0 |
Net income (loss) (note 11) | 0 | 0 | 0 |
Cash flows from (used in) operating activities | 16 | 10 | (8) |
Capital and exploration expenditures | 0 | 0 | 0 |
Property, plant and equipment | |||
Cost | 0 | 0 | 0 |
Accumulated depreciation and depletion | 0 | 0 | 0 |
Net property, plant and equipment | 0 | 0 | 0 |
Total assets | (386) | (249) | (398) |
Upstream | |||
Revenues and other income | |||
Revenues | 494 | 5,863 | 6,263 |
Investment and other income (note 8, 18) | 135 | 12 | 7 |
Expenses | |||
Exploration (note 15) | 5 | 32 | 13 |
Purchases of crude oil and products (note 11) | 7,971 | 7,492 | 4,834 |
Production and manufacturing (note 11) | 5,491 | 4,661 | 3,852 |
Selling and general | 0 | 0 | 0 |
Federal excise tax and fuel charge | 0 | 0 | 0 |
Depreciation and depletion (note 11) | 1,673 | 1,775 | 3,084 |
Non-service pension and postretirement benefit | 0 | 0 | 0 |
Financing (note 12) | 5 | 15 | 3 |
Total expenses | 15,145 | 13,975 | 11,786 |
Income (loss) before income taxes (note 11) | 4,619 | 1,856 | (2,989) |
Income taxes (note 3) | 974 | 461 | (671) |
Net income (loss) (note 11) | 3,645 | 1,395 | (2,318) |
Cash flows from (used in) operating activities | 5,834 | 4,913 | 286 |
Capital and exploration expenditures | 1,128 | 632 | 561 |
Property, plant and equipment | |||
Cost | 45,784 | 48,200 | 47,693 |
Accumulated depreciation and depletion | (18,835) | (20,389) | (18,786) |
Net property, plant and equipment | 26,949 | 27,811 | 28,907 |
Total assets | 28,830 | 29,416 | 31,835 |
Upstream | Intersegment Eliminations | |||
Revenues and other income | |||
Revenues | 19,135 | 9,956 | 2,527 |
Upstream | Operating Segments | |||
Revenues and other income | |||
Total revenues and other income | 19,764 | 15,831 | 8,797 |
Downstream | |||
Revenues and other income | |||
Revenues | 57,466 | 30,207 | 15,178 |
Investment and other income (note 8, 18) | 43 | 59 | 78 |
Expenses | |||
Exploration (note 15) | 0 | 0 | 0 |
Purchases of crude oil and products (note 11) | 55,569 | 29,505 | 12,047 |
Production and manufacturing (note 11) | 1,640 | 1,445 | 1,468 |
Selling and general | 653 | 572 | 619 |
Federal excise tax and fuel charge | 2,177 | 1,928 | 1,736 |
Depreciation and depletion (note 11) | 179 | 158 | 166 |
Non-service pension and postretirement benefit | 0 | 0 | 0 |
Financing (note 12) | 1 | 0 | 0 |
Total expenses | 60,219 | 33,608 | 16,036 |
Income (loss) before income taxes (note 11) | 4,766 | 1,178 | 700 |
Income taxes (note 3) | 1,144 | 283 | 147 |
Net income (loss) (note 11) | 3,622 | 895 | 553 |
Cash flows from (used in) operating activities | 4,415 | 179 | 470 |
Capital and exploration expenditures | 295 | 476 | 251 |
Property, plant and equipment | |||
Cost | 6,926 | 6,772 | 6,321 |
Accumulated depreciation and depletion | (4,143) | (4,096) | (3,962) |
Net property, plant and equipment | 2,783 | 2,676 | 2,359 |
Total assets | 9,277 | 7,945 | 4,554 |
Downstream | Intersegment Eliminations | |||
Revenues and other income | |||
Revenues | 7,476 | 4,520 | 1,480 |
Downstream | Operating Segments | |||
Revenues and other income | |||
Total revenues and other income | 64,985 | 34,786 | 16,736 |
Chemical | |||
Revenues and other income | |||
Revenues | 1,453 | 1,438 | 843 |
Investment and other income (note 8, 18) | 0 | 1 | 0 |
Expenses | |||
Exploration (note 15) | 0 | 0 | 0 |
Purchases of crude oil and products (note 11) | 1,330 | 966 | 579 |
Production and manufacturing (note 11) | 273 | 210 | 215 |
Selling and general | 85 | 90 | 92 |
Federal excise tax and fuel charge | 2 | 0 | 0 |
Depreciation and depletion (note 11) | 18 | 18 | 19 |
Non-service pension and postretirement benefit | 0 | 0 | 0 |
Financing (note 12) | 0 | 0 | 0 |
Total expenses | 1,708 | 1,284 | 905 |
Income (loss) before income taxes (note 11) | 268 | 474 | 103 |
Income taxes (note 3) | 64 | 113 | 25 |
Net income (loss) (note 11) | 204 | 361 | 78 |
Cash flows from (used in) operating activities | 276 | 421 | 114 |
Capital and exploration expenditures | 10 | 8 | 21 |
Property, plant and equipment | |||
Cost | 995 | 984 | 975 |
Accumulated depreciation and depletion | (741) | (721) | (699) |
Net property, plant and equipment | 254 | 263 | 276 |
Total assets | 491 | 474 | 408 |
Chemical | Intersegment Eliminations | |||
Revenues and other income | |||
Revenues | 523 | 319 | 165 |
Chemical | Operating Segments | |||
Revenues and other income | |||
Total revenues and other income | $ 1,976 | $ 1,758 | $ 1,008 |
Business segments - Table Narrative (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Segment Reporting Information [Line Items] | |||
Revenue from contracts with customers | $ 52,265 | $ 34,275 | $ 22,199 |
Revenue outside the scope of ASC 606 | 7,148 | 3,233 | 85 |
Revenues | 59,413 | 37,508 | 22,284 |
Plant and equipment under construction | 2,676 | 2,348 | 1,874 |
Downstream | |||
Segment Reporting Information [Line Items] | |||
Revenues | 57,466 | 30,207 | 15,178 |
Inventory transfer | 444 | ||
Upstream | |||
Segment Reporting Information [Line Items] | |||
Revenues | 494 | 5,863 | 6,263 |
Impairment charge, before tax | 1,531 | ||
United States Exports | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | $ 12,394 | $ 7,228 | $ 4,614 |
Income taxes - Summary of Income Taxes (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Income Tax Disclosure [Abstract] | |||
Current income tax expense (benefit) | $ 2,228 | $ 711 | $ (27) |
Deferred income tax expense (benefit) | (84) | 93 | (524) |
Total income tax expense (benefit) | $ 2,144 | $ 804 | $ (551) |
Statutory corporate tax rate (percent) | 24.10% | 24.00% | 25.00% |
Increase (decrease) resulting from: | |||
Enacted tax rate change | 0.00% | 0.00% | 0.10% |
Other | (1.50%) | 0.50% | (2.20%) |
Effective income tax rate (percent) | 22.60% | 24.50% | 22.90% |
Income taxes - Table Narrative (Detail) |
12 Months Ended | ||||
---|---|---|---|---|---|
Jan. 01, 2022 |
Dec. 09, 2020 |
Jul. 01, 2020 |
Jun. 28, 2019 |
Dec. 31, 2022 |
|
Schedule Of Income Tax [Line Items] | |||||
Decrease in Federal Statutory income tax rate, percent | 1.30% | ||||
Alberta government | |||||
Schedule Of Income Tax [Line Items] | |||||
Increase (decrease) in the provincial tax rate | 4.00% | ||||
Alberta government | Minimum | |||||
Schedule Of Income Tax [Line Items] | |||||
Provincial tax rate | 8.00% | 8.00% | |||
Alberta government | Maximum | |||||
Schedule Of Income Tax [Line Items] | |||||
Provincial tax rate | 10.00% | 12.00% |
Income taxes - Components of Deferred Income Tax Liabilities and Assets (Detail) - CAD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|
Income Tax Disclosure [Abstract] | |||
Depreciation and amortization | $ 5,388 | $ 5,284 | $ 5,319 |
Successful drilling and land acquisitions | 236 | 331 | 363 |
Pension and benefits | (105) | (303) | (534) |
Asset retirement obligation | (529) | (418) | (403) |
Capitalized interest | 127 | 120 | 120 |
LIFO inventory valuation | (454) | (413) | (150) |
Tax loss carryforwards | (84) | (42) | (460) |
Valuation allowance | 73 | 0 | 0 |
Other | (53) | (101) | (154) |
Net deferred income tax liabilities | $ 4,599 | $ 4,458 | $ 4,101 |
Income taxes - Unrecognized Tax Benefits (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance as of January 1 | $ 47 | $ 36 | $ 35 |
Additions based on current year’s tax position | 12 | 16 | 2 |
Additions for prior years’ tax positions | 10 | 0 | 0 |
Settlements with tax authorities | (9) | (5) | (1) |
Balance as of December 31 | $ 60 | $ 47 | $ 36 |
Employee retirement benefits - Assumptions (Detail) |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Pension benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.10% | 3.00% |
Long-term rate of compensation increase | 4.00% | 4.00% |
Other postretirement benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.10% | 3.00% |
Long-term rate of compensation increase | 4.00% | 4.00% |
Employee retirement benefits - Benefit Obligations (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Pension benefits | |||
Change in benefit obligation | |||
Benefit obligation at January 1 | $ 9,850 | $ 10,716 | |
Service cost | 280 | 324 | $ 305 |
Interest cost | 295 | 271 | 308 |
Actuarial loss (gain) | (2,528) | (925) | |
Benefits paid | (523) | (536) | |
Benefit obligation at December 31 | 7,374 | 9,850 | 10,716 |
Accumulated benefit obligation at December 31 | 6,820 | 8,885 | |
Other postretirement benefits | |||
Change in benefit obligation | |||
Benefit obligation at January 1 | 818 | 873 | |
Service cost | 23 | 28 | 24 |
Interest cost | 24 | 22 | 24 |
Actuarial loss (gain) | (248) | (83) | |
Benefits paid | (28) | (22) | |
Benefit obligation at December 31 | $ 589 | $ 818 | $ 873 |
Employee retirement benefits - Narrative (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for 2023 | 6.01% | ||
Health care cost trend rate assumed for 2040 | 3.57% | ||
Long-term expected return | 4.30% | ||
Actual rate of return over the last 10 years | 5.60% | ||
Actual rate of return over the last 20 years | 6.50% | ||
Cost for defined contributions plans | $ 43 | $ 47 | $ 47 |
Cash contributions to pension plans in 2023 | $ 180 | ||
Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation securities | 30.00% |
Employee retirement benefits - Plan Assets (Detail) - CAD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Change in plan assets | ||
Fair value at January 1 | $ 9,440 | |
Fair value at December 31 | 7,541 | $ 9,440 |
Pension benefits | ||
Change in plan assets | ||
Fair value at January 1 | 9,440 | 9,426 |
Actual return (loss) gain | (1,594) | 319 |
Company contributions | 174 | 164 |
Benefits paid | (479) | (469) |
Fair value at December 31 | 7,541 | 9,440 |
Funded plans | 543 | 89 |
Unfunded plans | (376) | (499) |
Total | 167 | (410) |
Other postretirement benefits | ||
Change in plan assets | ||
Unfunded plans | (589) | (818) |
Total | $ (589) | $ (818) |
Employee retirement benefits - Amounts Recorded in Consolidated Balance Sheet and Accumulated Other Comprehensive Income (Detail) - CAD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Schedule Of Defined Benefit Plans Disclosures [Line Items] | ||
Current liabilities | $ (63) | $ (56) |
Other long-term obligations | (902) | (1,362) |
Pension benefits | ||
Schedule Of Defined Benefit Plans Disclosures [Line Items] | ||
Other assets, including intangibles - net | 543 | 190 |
Current liabilities | (35) | (26) |
Other long-term obligations | (341) | (574) |
Total recorded | 167 | (410) |
Net actuarial loss (gain) | 666 | 1,272 |
Prior service cost | 235 | 252 |
Total recorded in accumulated other comprehensive income, before-tax | 901 | 1,524 |
Other postretirement benefits | ||
Schedule Of Defined Benefit Plans Disclosures [Line Items] | ||
Other assets, including intangibles - net | 0 | 0 |
Current liabilities | (28) | (30) |
Other long-term obligations | (561) | (788) |
Total recorded | (589) | (818) |
Net actuarial loss (gain) | (84) | 173 |
Prior service cost | 0 | 0 |
Total recorded in accumulated other comprehensive income, before-tax | $ (84) | $ 173 |
Employee retirement benefits - Assumptions Used to Determine Net Periodic Benefit (Detail) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Schedule Of Defined Benefit Plans Disclosures [Line Items] | |||
Long-term rate of return on funded assets | 4.30% | ||
Pension benefits | |||
Schedule Of Defined Benefit Plans Disclosures [Line Items] | |||
Discount rate | 3.00% | 2.50% | 3.10% |
Long-term rate of return on funded assets | 4.30% | 4.50% | 4.50% |
Long-term rate of compensation increase | 4.00% | 4.00% | 4.50% |
Other postretirement benefits | |||
Schedule Of Defined Benefit Plans Disclosures [Line Items] | |||
Discount rate | 3.00% | 2.50% | 3.10% |
Long-term rate of return on funded assets | 0.00% | 0.00% | 0.00% |
Long-term rate of compensation increase | 4.00% | 4.00% | 4.50% |
Employee retirement benefits - Components of Net Periodic Benefit Cost and Changes in Amounts Recorded in Accumulated Other Comprehensive Income (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Changes in amounts recorded in accumulated other comprehensive income | |||
Total recorded in other comprehensive income | $ (880) | $ (1,076) | $ 101 |
Pension benefits | |||
Components of net periodic benefit cost | |||
Service cost | 280 | 324 | 305 |
Interest cost | 295 | 271 | 308 |
Expected return on plan assets | (412) | (427) | (391) |
Amortization of prior service cost | 17 | 17 | 14 |
Amortization of actuarial loss (gain) | 84 | 143 | 153 |
Net periodic benefit cost | 264 | 328 | 389 |
Changes in amounts recorded in accumulated other comprehensive income | |||
Net actuarial loss (gain) | (522) | (817) | 129 |
Amortization of net actuarial (loss) gain included in net periodic benefit cost | (84) | (143) | (153) |
Amortization of prior service cost included in net periodic benefit cost | (17) | (17) | (14) |
Total recorded in other comprehensive income | (623) | (977) | (38) |
Total recorded in net periodic benefit cost and other comprehensive income, before-tax | (359) | (649) | 351 |
Other postretirement benefits | |||
Components of net periodic benefit cost | |||
Service cost | 23 | 28 | 24 |
Interest cost | 24 | 22 | 24 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of actuarial loss (gain) | 9 | 16 | 13 |
Net periodic benefit cost | 56 | 66 | 61 |
Changes in amounts recorded in accumulated other comprehensive income | |||
Net actuarial loss (gain) | (248) | (83) | 152 |
Amortization of net actuarial (loss) gain included in net periodic benefit cost | (9) | (16) | (13) |
Amortization of prior service cost included in net periodic benefit cost | 0 | 0 | 0 |
Total recorded in other comprehensive income | (257) | (99) | 139 |
Total recorded in net periodic benefit cost and other comprehensive income, before-tax | $ (201) | $ (33) | $ 200 |
Employee retirement benefits - Summary of Change in Accumulated Other Comprehensive Income (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Retirement Benefits [Abstract] | |||
(Charge) credit to other comprehensive income, before-tax | $ 880 | $ 1,076 | $ (101) |
Deferred income tax (charge) credit (note 17) | (215) | (264) | 23 |
(Charge) credit to other comprehensive income, after-tax | $ 665 | $ 812 | $ (78) |
Employee retirement benefits - Fair Value of Pension Plan Assets Including Level Within Fair Value Hierarchy (Detail) - CAD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | $ 7,541 | $ 9,440 |
Equity securities, Canadian | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 96 | 247 |
Equity Securities, Non-Canadian | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 2,215 | 2,539 |
Debt Securities - Canadian, Corporate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 1,156 | 1,496 |
Debt Securities - Canadian, Government | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 3,842 | 4,865 |
Debt Securities - Canadian, Asset Backed | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 2 | 1 |
Equities – Venture capital | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 199 | 249 |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 31 | 43 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 10 | 36 |
Level 1 | Equity securities, Canadian | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 1 | Equity Securities, Non-Canadian | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 1 | Debt Securities - Canadian, Corporate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 1 | Debt Securities - Canadian, Government | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 1 | Debt Securities - Canadian, Asset Backed | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 1 | Equities – Venture capital | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 1 | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 10 | 36 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 2 | Equity securities, Canadian | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 2 | Equity Securities, Non-Canadian | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 2 | Debt Securities - Canadian, Corporate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 2 | Debt Securities - Canadian, Government | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 2 | Debt Securities - Canadian, Asset Backed | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 2 | Equities – Venture capital | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 2 | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 3 | Equity securities, Canadian | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 3 | Equity Securities, Non-Canadian | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 3 | Debt Securities - Canadian, Corporate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 3 | Debt Securities - Canadian, Government | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 3 | Debt Securities - Canadian, Asset Backed | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 3 | Equities – Venture capital | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Level 3 | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | ||
Net Asset Value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 7,531 | 9,404 |
Net Asset Value | Equity securities, Canadian | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 96 | 247 |
Net Asset Value | Equity Securities, Non-Canadian | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 2,215 | 2,539 |
Net Asset Value | Debt Securities - Canadian, Corporate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 1,156 | 1,496 |
Net Asset Value | Debt Securities - Canadian, Government | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 3,842 | 4,865 |
Net Asset Value | Debt Securities - Canadian, Asset Backed | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 2 | 1 |
Net Asset Value | Equities – Venture capital | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 199 | 249 |
Net Asset Value | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | $ 21 | $ 7 |
Employee retirement benefits, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets (Detail) - CAD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 7,541 | $ 9,440 |
For funded pension plans with projected benefit obligation in excess of plan assets: | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 0 | 1,132 |
Fair value of plan assets | 0 | 1,031 |
Projected benefit obligation less fair value of plan assets | 0 | 101 |
For unfunded pension plans covered by book reserves: | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 376 | 499 |
Accumulated benefit obligation | $ 353 | $ 461 |
Employee retirement benefits - Expected Benefit Payments (Detail) $ in Millions |
Dec. 31, 2022
CAD ($)
|
---|---|
Pension benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 480 |
2024 | 470 |
2025 | 470 |
2026 | 470 |
2027 | 470 |
2028 - 2032 | 2,360 |
Other postretirement benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 29 |
2024 | 30 |
2025 | 30 |
2026 | 31 |
2027 | 31 |
2028 - 2032 | $ 166 |
Other long-term obligations - Summary of Obligations (Detail) - CAD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Employee retirement benefits | $ 902 | $ 1,362 |
Asset retirement obligations and other environmental liabilities | 2,150 | 1,713 |
Share-based incentive compensation liabilities (note 7) | 101 | 79 |
Operating lease liability (note 13) | 151 | 147 |
Other obligations | 163 | 596 |
Total other long-term obligations | $ 3,467 | $ 3,897 |
Other long-term obligations - Table Narrative (Detail) - CAD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Other Liabilities Disclosure [Abstract] | ||
Employee retirement benefit obligations in current liabilities | $ 63 | $ 56 |
Asset retirement obligations and other environmental liabilities in current liabilities | $ 116 | $ 102 |
Asset retirement obligations discount rate | 6.00% | 6.00% |
Other long-term obligations - Summary of Liability for Asset Retirement Obligations (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Balance as at January 1 | $ 1,721 | $ 1,674 | $ 1,400 |
Additions (deductions) | 415 | 6 | 265 |
Accretion | 101 | 99 | 82 |
Settlement | (59) | (58) | (73) |
Balance as at December 31 | $ 2,178 | $ 1,721 | $ 1,674 |
Other long-term obligations - Narrative (Details) $ in Millions |
Dec. 31, 2022
CAD ($)
|
---|---|
Other Liabilities Disclosure [Abstract] | |
Estimated cash payments for asset retirement obligations in 2023 | $ 82 |
Estimated cash payments for asset retirement obligations in 2024 | $ 64 |
Financial and derivative instruments - Narrative (Detail) - CAD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Financial Instruments And Derivatives [Line Items] | ||
Long term debt | $ 3,447 | $ 4,447 |
Master netting arrangements | ||
Financial Instruments And Derivatives [Line Items] | ||
Derivative collateral receivable | $ 14 | $ 6 |
Financial and derivative instruments - Summary of net notional long/(short) position of derivative instruments (Detail) - bbl bbl in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Crude | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Volume | (1,800) | (7,390) |
Products | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Volume | (350) | (560) |
Financial and derivative instruments - Summary of realized and unrealized gain or (loss) on derivative instruments (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Revenues | $ 148 | $ (46) | $ (13) |
Purchases of crude oil and products | 0 | (33) | (21) |
Total | $ 148 | $ (79) | $ (34) |
Financial and derivative instruments - Summary of estimated fair value of financial instruments (Detail) - CAD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Derivative Asset [Abstract] | ||
Derivative assets | $ 49 | $ 41 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets, including intangibles - net, Accounts receivable - net, Materials, supplies and prepaid expenses | Other assets, including intangibles - net, Accounts receivable - net, Materials, supplies and prepaid expenses |
Derivative Liability [Abstract] | ||
Derivative liabilities | $ 41 | $ 43 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities, Current, Other long-term obligations (note 5) | Accounts Payable and Accrued Liabilities, Current, Other long-term obligations (note 5) |
Effect of counterparty netting | ||
Derivative Asset [Abstract] | ||
Derivative assets | $ (27) | $ (31) |
Derivative Liability [Abstract] | ||
Derivative liabilities | (27) | (31) |
Effect of collateral netting | ||
Derivative Asset [Abstract] | ||
Derivative assets | 0 | 0 |
Derivative Liability [Abstract] | ||
Derivative liabilities | (4) | (7) |
Net carrying value | ||
Derivative Asset [Abstract] | ||
Derivative assets | 22 | 10 |
Derivative Liability [Abstract] | ||
Derivative liabilities | 10 | 5 |
Level 1 | ||
Derivative Asset [Abstract] | ||
Derivative assets | 17 | 24 |
Derivative Liability [Abstract] | ||
Derivative liabilities | 21 | 31 |
Level 2 | ||
Derivative Asset [Abstract] | ||
Derivative assets | 32 | 17 |
Derivative Liability [Abstract] | ||
Derivative liabilities | 20 | 12 |
Level 3 | ||
Derivative Asset [Abstract] | ||
Derivative assets | 0 | 0 |
Derivative Liability [Abstract] | ||
Derivative liabilities | $ 0 | $ 0 |
Share-based incentive compensation programs - Narrative (Detail) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022
CAD ($)
|
Dec. 31, 2021
CAD ($)
|
Dec. 31, 2020
CAD ($)
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense charged against income | $ 113 | $ 96 | $ 2 |
Income tax benefit recognized in income related to compensation expense | 27 | 23 | 0 |
Cash payment for compensation expense | $ 78 | $ 52 | $ 33 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 100.00% | ||
Award vesting period | 3 years | ||
Before-tax unrecognized compensation expense related to non-vested restricted stock | $ 133 | ||
Weighted average vesting period of nonvested restricted stock | 4 years 1 month 6 days | ||
Restricted Stock Units | Restricted Stock Unit Plan 1 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares that become exercisable in third year | 0.50 | ||
Percentage of shares that become exercisable in seventh year | 0.50 | ||
Percentage restricted stock units vested on fifth anniversary of the grant date | 50.00% | ||
Percentage restricted stock units vested on tenth anniversary of the grant date or retirement | 50.00% | ||
Restricted Stock Units | Restricted Stock Unit Plan 2 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage restricted stock units vested on fifth anniversary of the grant date | 50.00% | ||
Percentage restricted stock units vested on tenth anniversary of the grant date | 50.00% |
Share-based incentive compensation programs - Summarized Information About Incentive Share, Deferred Share and Restricted Stock Units (Detail) |
12 Months Ended |
---|---|
Dec. 31, 2022
shares
| |
Restricted Stock Units | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding at January 1, 2022 | 3,950,615 |
Granted | 884,140 |
Vested / Exercised | (787,110) |
Forfeited and cancelled | (11,290) |
44926 | 4,036,355 |
Deferred Share Units | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding at January 1, 2022 | 166,665 |
Granted | 13,219 |
Vested / Exercised | 0 |
Forfeited and cancelled | 0 |
44926 | 179,884 |
Investment and other income - Gains and Losses on Asset Sales (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Net Investment Income [Line Items] | |||
Proceeds from asset sales | $ 904 | $ 81 | $ 82 |
Book value of asset sales | 746 | 32 | 47 |
Gain (loss) on asset sales, before-tax | 158 | 49 | 35 |
Gain (loss) on asset sales, after-tax | 241 | $ 43 | $ 32 |
XTO Energy Canada | |||
Net Investment Income [Line Items] | |||
Gain (loss) on asset sales, before-tax | 116 | ||
Gain (loss) on asset sales, after-tax | $ 208 |
Litigation and other contingencies - Narrative (Detail) - CAD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Commitments and Contingencies Disclosure [Abstract] | ||
Total payment on unconditional purchase obligation | $ 0 | |
Total other third party obligations payable | $ 17,000,000 | $ 21,000,000 |
Common shares - Summary of Common Shares (Detail) - shares |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Equity [Abstract] | ||
Authorized (in shares) | 1,100,000,000 | 1,100,000,000 |
Common shares outstanding (in shares) | 584,153,000 | 678,080,000 |
Common shares - Narrative (Detail) - CAD ($) |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 14, 2022 |
Nov. 04, 2022 |
Jun. 15, 2022 |
May 06, 2022 |
Jun. 29, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Oct. 31, 2022 |
May 02, 2022 |
|
Class of Stock [Line Items] | ||||||||||
Normal course issuer bid share repurchase term, months | 12 months | |||||||||
Normal course issuer bid share repurchase shares authorized | 31,833,809 | |||||||||
Exxon Mobil Corporation's ownership interest in Imperial | 69.60% | |||||||||
Stock repurchased during period, value | $ 1,500,000,000 | $ 2,500,000,000 | ||||||||
Payments for repurchase of common stock | $ 6,395,000,000 | $ 2,245,000,000 | $ 274,000,000 | |||||||
Normal Course Issuer Bid Effective From June Twenty Ninth Two Thousand And Twenty Two | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock repurchased during period, shares | 20,689,655 | 32,467,532 | ||||||||
Normal Course Issuer Bid Effective From June Twenty Ninth Two Thousand And Twenty Two | Exonn Mobile Corporation | ||||||||||
Class of Stock [Line Items] | ||||||||||
Percent of total shares | 5.00% | |||||||||
Exxon Mobil Corporation's ownership interest in Imperial | 69.60% | 69.60% | ||||||||
Stock repurchased during period, shares | 14,399,985 | 22,597,379 | ||||||||
Treasury stock acquired, average cost per share | $ 72.50 | $ 77.00 | ||||||||
Payments for repurchase of common stock | $ 1,500,000,000 | $ 2,500,000,000 | ||||||||
Percentage of outstanding stock repurchased | 3.40% | 4.90% |
Common shares - Common Share Activities (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Common stock beginning balance, (in shares) | 678,080,000 | ||
Common stock, ending balance, (in shares) | 584,153,000 | 678,080,000 | |
Common stock beginning balance | $ 1,252 | ||
Common stock, ending balance | $ 1,079 | $ 1,252 | |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Common stock beginning balance, (in shares) | 678,080,000 | 734,077,000 | 743,902,000 |
Issued under employee share-based awards, (in shares) | 0 | 7,000 | 7,000 |
Purchases at stated value, (in shares) | (93,927,000) | (56,004,000) | (9,832,000) |
Common stock, ending balance, (in shares) | 584,153,000 | 678,080,000 | 734,077,000 |
Common stock beginning balance | $ 1,252 | $ 1,357 | $ 1,375 |
Issued under employee share-based awards | 0 | 0 | 0 |
Purchases at stated value | (173) | (105) | (18) |
Common stock, ending balance | $ 1,079 | $ 1,252 | $ 1,357 |
Common shares - Calculation of basic and diluted earnings per common share and the dividend declared by the company on its outstanding common shares (Detail) - CAD ($) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Net income (loss) per common share – basic | |||
Net income (loss) | $ 7,340 | $ 2,479 | $ (1,857) |
Weighted-average number of common shares outstanding (millions of shares) | 640.2 | 711.6 | 735.3 |
Net income (loss) per common share (dollars) | $ 11.47 | $ 3.48 | $ (2.53) |
Net income (loss) per common share – diluted | |||
Net income (loss) | $ 7,340 | $ 2,479 | $ (1,857) |
Weighted-average number of common shares outstanding (millions of shares) | 640.2 | 711.6 | 735.3 |
Effect of employee share-based awards (millions of shares) | 1.3 | 1.6 | 0.0 |
Weighted-average number of common shares outstanding, assuming dilution (millions of shares) | 641.5 | 713.2 | 735.3 |
Net income (loss) per common share (dollars) | $ 11.44 | $ 3.48 | $ (2.53) |
Dividends per common share – declared (dollars) | $ 1.46 | $ 1.03 | $ 0.88 |
Effect of employee share-based awards excluded from computation | 1.9 |
Miscellaneous financial information - Narrative (Detail) - CAD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2020 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Additional Financial Information [Line Items] | ||||
Effect of LIFO inventory liquidation on income (loss) | $ (62) | $ 13 | $ 19 | |
Difference between LIFO carrying values and replacement cost of inventories | 2,000 | 1,800 | ||
Inventory write-down | 74 | |||
Inventory adjustments, before tax | 82 | |||
Out of period impact of the inventory write down | 57 | |||
Out of period impact of the inventory write down, Adjustment before tax | 63 | |||
Research and development costs charged to expenses | 74 | 89 | 105 | |
Accounts payable and accrued liabilities included accrued taxes other than income taxes | $ 458 | $ 415 | ||
Production and Manufacturing | Canada Emergency Wage Subsidy (CEWS) | ||||
Additional Financial Information [Line Items] | ||||
Amount received as part of the federal government subsidy program | $ 155 | |||
Upstream | ||||
Additional Financial Information [Line Items] | ||||
Non-cash impairment of goodwill | $ 20 |
Miscellaneous financial information - Inventories of Crude Oil and Products (Detail) - CAD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Crude oil | $ 809 | $ 674 |
Petroleum products | 471 | 310 |
Chemical products | 76 | 73 |
Other | 158 | 45 |
Total | $ 1,514 | $ 1,102 |
Financing and additional notes and loans payable information - Summary (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Other Income and Expenses [Abstract] | |||
Debt-related interest | $ 111 | $ 63 | $ 102 |
Capitalized interest | (57) | (24) | (41) |
Net interest expense | 54 | 39 | 61 |
Other interest | 6 | 15 | 3 |
Total financing | $ 60 | $ 54 | $ 64 |
Financing and additional notes and loans payable information - Table Narrative (Detail) |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|
Other Income and Expenses [Abstract] | |||
Weighted average interest rate on short-term borrowings | 2.00% | 0.20% | 0.80% |
Average effective rate for affiliate long-term borrowing | 1.90% | 0.60% | 1.40% |
Financing and additional notes and loans payable information - Narrative (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Nov. 30, 2022 |
Jun. 30, 2022 |
|
Financing Activities [Line Items] | |||
Line of credit facility, remaining borrowing capacity | $ 500 | ||
Non-interest bearing, revolving demand loan, outstanding amount | 111 | ||
Existing committed long-term line of credit | |||
Financing Activities [Line Items] | |||
Non-interest bearing, revolving demand loan, maximum borrowing capacity | $ 500 | ||
Long-term line of credit due June 2023 | |||
Financing Activities [Line Items] | |||
Non-interest bearing, revolving demand loan, maximum borrowing capacity | $ 250 | ||
Long-term line of credit due June 2024 | |||
Financing Activities [Line Items] | |||
Non-interest bearing, revolving demand loan, maximum borrowing capacity | $ 250 | ||
Short-term line of credit due 2023 | |||
Financing Activities [Line Items] | |||
Non-interest bearing, revolving demand loan, maximum borrowing capacity | $ 250 |
Leases - Schedule Of Lease Cost (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Leases [Abstract] | |||
Operating lease cost | $ 119 | $ 123 | $ 157 |
Short-term and other (net of sublease rental income) | 40 | 19 | 40 |
Amortization of right of use assets | 19 | 17 | 29 |
Interest on lease liabilities | 30 | 33 | 38 |
Operating Lease And Short-Term Lease, Cost | 159 | 142 | 197 |
Finance Lease, Total Lease Cost | $ 49 | $ 50 | $ 67 |
Leases - Schedule Of Operating Leases and Finance Leases Recorded In Balance Sheet (Detail) - CAD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Right of use assets | ||
Operating leases | $ 245 | $ 245 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, less accumulated depreciation and depletion (note 18) | Property, plant and equipment, less accumulated depreciation and depletion (note 18) |
Finance leases | $ 618 | $ 637 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities, Current | Accounts Payable and Accrued Liabilities, Current |
Lease liability due within one year | ||
Operating leases | $ 100 | $ 102 |
Finance leases | 22 | 22 |
Long-term lease liability | ||
Operating leases | 151 | 147 |
Finance leases | $ 586 | $ 607 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Long-term debt (note 14), Other long-term obligations (note 5) | Long-term debt (note 14), Other long-term obligations (note 5) |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term obligations (note 5) | Other long-term obligations (note 5) |
Total lease liability, Operating leases | $ 251 | $ 249 |
Total lease liability, Finance leases | $ 608 | $ 629 |
Weighted average remaining lease term (years), Operating leases | 5 years | 4 years |
Weighted average remaining lease term (years), Finance leases | 37 years | 38 years |
Weighted average discount rate (percent), Operating leases | 1.10% | 1.20% |
Weighted average discount rate (percent), Finance leases | 4.70% | 4.80% |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets, including intangibles - net | Other assets, including intangibles - net |
Included in Accounts payable and accrued liabilities | ||
Lease liability due within one year | ||
Finance leases | $ 0 | $ 0 |
Included in Notes and loans payable | ||
Lease liability due within one year | ||
Finance leases | 22 | 22 |
Included in Other long-term obligations | ||
Long-term lease liability | ||
Finance leases | 0 | 0 |
Included in Long-term debt | ||
Long-term lease liability | ||
Finance leases | $ 586 | $ 607 |
Leases - Maturity Of Lease Liabilities (Detail) - CAD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Operating leases | ||
2023 | $ 102 | |
2024 | 70 | |
2025 | 15 | |
2026 | 10 | |
2027 | 10 | |
2028 and beyond | 56 | |
Total lease payments | 263 | |
Discount to present value | (12) | |
Total lease liability, Operating leases | 251 | $ 249 |
Finance leases | ||
2023 | 50 | |
2024 | 49 | |
2025 | 46 | |
2026 | 44 | |
2027 | 43 | |
2028 and beyond | 900 | |
Total lease payments | 1,132 | |
Discount to present value | (524) | |
Total lease liability | $ 608 | $ 629 |
Leases - Narrative (Detail) - CAD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Leases [Abstract] | ||
Undiscounted Commitments | $ 14 | $ 5 |
Operating and finance leases not yet commenced payments due year one | 5 | |
Operating and finance leases not yet commenced payments due year two | $ 5 |
Leases - Schedule Of Measurement Of Lease Liabilities and Right Of Use Assets (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Cash paid for amounts included in the measurement of lease liabilities | |||
Cash flows from operating activities, Operating leases | $ 121 | $ 122 | $ 136 |
Cash flows from operating activities, Finance leases | 0 | 0 | 15 |
Cash flows from financing activities, Finance leases | 22 | 20 | 20 |
Non-cash right of use assets recorded for lease liabilities | |||
In exchange for lease liabilities during the year, Operating leases | 117 | 176 | 63 |
In exchange for lease liabilities during the year, Finance leases | $ 0 | $ 123 | $ 14 |
Long-term debt - Summary of Long-Term Debt (Detail) - CAD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt Disclosure [Abstract] | ||
Long-term debt | $ 3,447 | $ 4,447 |
Finance leases | 586 | 607 |
Total long-term debt | $ 4,033 | $ 5,054 |
Long-term debt - Table Narrative (Detail) - CAD ($) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Debt Disclosure [Abstract] | ||||
Maximum long-term borrowing from affiliate | $ 7,750,000,000 | |||
Cancellation period long-term borrowing from affiliate, days | 370 days | |||
Repayments of long-term debt | $ 1,000,000,000 | $ 1,000,000,000 | $ 0 | $ 0 |
Finance lease obligations for marine services, average imputed rate | 4.70% | 4.80% | ||
Finance leases | $ 22,000,000 | $ 22,000,000 | ||
Principal payments on finance lease, year two | 20,000,000 | |||
Principal payments on finance lease, year three | 20,000,000 | |||
Principal payments on finance lease, year four | 20,000,000 | |||
Principal payments on finance lease, year five | $ 20,000,000 |
Accounting for suspended exploratory well costs - Narrative (Detail) |
Dec. 31, 2022
CAD ($)
Project
|
Dec. 31, 2021
CAD ($)
Project
|
Dec. 31, 2020
CAD ($)
Project
|
---|---|---|---|
Debt Disclosure [Abstract] | |||
Capitalized exploratory well costs | $ | $ 0 | $ 0 | $ 0 |
Projects that have exploratory well costs that have been capitalized | Project | 0 | 0 | 0 |
Transactions with related parties - Narrative (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts of sales by Imperial | [1] | $ 17,042 | $ 8,777 | $ 5,107 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Financing costs | [2] | 78 | 28 | $ 61 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding loans from an affiliate | 3,447 | 4,447 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Exxon Mobil | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts of purchases by Imperial | 3,719 | 2,669 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts of sales by Imperial | 17,042 | 8,777 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing costs | $ 78 | $ 28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Other comprehensive income (loss) information - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at January 1 | $ (1,177) | ||
Balance at December 31 | (512) | $ (1,177) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at January 1 | (1,177) | (1,989) | $ (1,911) |
Current period change excluding amounts reclassified from accumulated other comprehensive income | 582 | 679 | (212) |
Amounts reclassified from accumulated other comprehensive income | 83 | 133 | 134 |
Balance at December 31 | $ (512) | $ (1,177) | $ (1,989) |
Other comprehensive income (loss) information - Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of postretirement benefits liability adjustment included in net benefit cost (a) | $ (110) | $ (176) | $ (180) |
Other comprehensive income (loss) information - Income Tax Expense (Credit) for Components of Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Uncategorized [Abstract] | |||
Postretirement benefits liability adjustment (excluding amortization) | $ (188) | $ (221) | $ 69 |
Amortization of postretirement benefits liability adjustment included in net benefit cost | 27 | 43 | 46 |
Total | $ 215 | $ 264 | $ (23) |
Divestment activities - Narrative (Detail) $ in Billions |
Aug. 31, 2022
CAD ($)
|
---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
DiscontinuedOperationGainLossOnDisposalStatementOfIncomeOrComprehensiveIncomeExtensibleEnumerationNotDisclosedFlag | 0.2 billion |
XTO Energy Canada | Exxon Mobil Canada | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal group including discontinued operation assets | $ 0.9 |
Disposal group including discontinued operation property, plant and equipment | 0.8 |
Disposal group including discontinued operation liabilities | 0.2 |
White Cap Inc | XTO Energy Canada | Companies Share | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal group including discontinued operation consideration receivable | 0.9 |
Disposal group including discontinued operation gain loss on disposal of business | 0.2 |
White Cap Inc | XTO Energy Canada | Exxon Mobil Canada | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal group including discontinued operation consideration receivable | $ 1.9 |
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