Imperial Oil Limited (IMO) 10-Q 2 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page	3 Months Ended
	Mar. 31, 2023 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	0-12014
Entity Registrant Name	IMPERIAL OIL LIMITED
Entity Incorporation, State or Country Code	Z4
Entity Tax Identification Number	98-0017682
Entity Address, Address Line One	505 Quarry Park Boulevard S.E.
Entity Address, City or Town	Calgary
Entity Address, State or Province	AB
Entity Address, Country	CA
Entity Address, Postal Zip Code	T2C 5N1
City Area Code	800
Local Phone Number	567-3776
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	584,152,718
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000049938
Current Fiscal Year End Date	--12-31

Consolidated statement of incom

Consolidated statement of income (U.S. GAAP, unaudited) - CAD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Revenues and other income
Revenues	[1]	$ 12,057	$ 12,657
Investment and other income (note 3)		64	29
Total revenues and other income		12,121	12,686
Expenses
Exploration		1	2
Purchases of crude oil and products	[2]	7,478	8,350
Production and manufacturing	[3]	1,756	1,659
Selling and general	[3]	186	225
Federal excise tax and fuel charge		529	479
Depreciation and depletion		490	426
Non-service pension and postretirement benefit		20	4
Financing	[4]	16	7
Total expenses		10,476	11,152
Income (loss) before income taxes		1,645	1,534
Income taxes		397	361
Net income (loss)		$ 1,248	$ 1,173
Per share information (Canadian dollars)
Net income (loss) per common share - basic (note 9) (in CAD per share)		$ 2.14	$ 1.75
Net income (loss) per common share - diluted (note 9) (in CAD per share)		$ 2.13	$ 1.75
[1] (a) Amounts from related parties included in revenues 3,136 3,959 (b) Amounts to related parties included in purchases of crude oil and products 1,078 650 (c) Amounts to related parties included in production and manufacturing, and selling and general expenses 135 118 (d) Amounts to related parties included in financing, (note 5). 39 4

Consolidated statement of inc_2

Consolidated statement of income (U.S. GAAP, unaudited) (Parenthetical) - CAD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Amounts from related parties included in revenues.	$ 3,136	$ 3,959
Amounts to related parties included in purchases of crude oil and products.	1,078	650
Amounts to related parties included in production and manufacturing, and selling and general expenses.	135	118
Amounts to related parties included in financing (note 5).	$ 39	$ 4

Consolidated statement of compr

Consolidated statement of comprehensive income (U.S. GAAP, unaudited) - CAD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 1,248	$ 1,173
Other comprehensive income (loss), net of income taxes
Postretirement benefits liability adjustment (excluding amortization)	21	24
Amortization of postretirement benefits liability adjustment included in net benefit costs	10	21
Total other comprehensive income (loss)	31	45
Comprehensive income (loss)	$ 1,279	$ 1,218

Consolidated balance sheet (U.S

Consolidated balance sheet (U.S. GAAP, unaudited) - CAD ($) $ in Millions		Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents		$ 2,243	$ 3,749
Accounts receivable - net	[1]	4,283	4,719
Inventories of crude oil and products		1,757	1,514
Materials, supplies and prepaid expenses		989	754
Total current assets		9,272	10,736
Investments and long-term receivables	[2]	995	893
Property, plant and equipment,		54,991	54,568
less accumulated depreciation and depletion		(24,549)	(24,062)
Property, plant and equipment, net		30,442	30,506
Goodwill		166	166
Other assets, including intangibles - net		1,240	1,223
Total assets		42,115	43,524
Current liabilities
Notes and loans payable		122	122
Accounts payable and accrued liabilities (note 7)	[1]	5,930	6,194
Income taxes payable		505	2,582
Total current liabilities		6,557	8,898
Long-term debt	[3]	4,027	4,033
Other long-term obligations (note 7)		3,409	3,467
Deferred income tax liabilities		4,687	4,713
Total liabilities		18,680	21,111
Shareholders’ equity
Common shares at stated value (note 9)	[4]	1,079	1,079
Earnings reinvested		22,837	21,846
Accumulated other comprehensive income (loss) (note 10)		(481)	(512)
Total shareholders’ equity		23,435	22,413
Total liabilities and shareholders’ equity		$ 42,115	$ 43,524
[1](a) Accounts receivable - net included net amounts receivable from related parties of $908 million (2022 - $1,108 million).[2](b) Investments and long-term receivables included amounts from related parties of $287 million (2022 - $288 million).[3](c) Long-term debt included amounts to related parties of $3,447 million (2022 - $3,447 million).[4](d) Number of common shares authorized and outstanding were 1,100 million and 584 million, respectively (2022 - 1,100 million and 584 million, respectively).

Consolidated balance sheet (U_2

Consolidated balance sheet (U.S. GAAP, unaudited) (Parenthetical) - CAD ($) shares in Thousands, $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Amounts receivable (payable) from (to) related parties	$ 908	$ 1,108
Common shares authorized	1,100,000	1,100,000
Common shares outstanding	584,000	584,000
Investments and long-term receivables
Due from related parties	$ 287	$ 288
Long-term debt
Due to related parties	$ 3,447	$ 3,447

Consolidated statement of share

Consolidated statement of shareholders' equity (U.S GAAP, unaudited) - CAD ($) $ in Millions	Total	Common shares at stated value (note 9)	Earnings reinvested	Accumulated other comprehensive income (loss) (note 10)
At beginning of period at Dec. 31, 2021		$ 1,252	$ 21,660	$ (1,177)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) for the period	$ 1,173		1,173
Share purchases at stated value		(15)
Share purchases in excess of stated value			(434)
Dividends declared			(228)
Other comprehensive income (loss)	45			45
At end of period at Mar. 31, 2022	22,276	1,237	22,171	(1,132)
At beginning of period at Dec. 31, 2021		1,252	21,660	(1,177)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share purchases at stated value		(173)
At end of period at Dec. 31, 2022	22,413	1,079	21,846	(512)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) for the period	1,248		1,248
Share purchases at stated value		0
Share purchases in excess of stated value			0
Dividends declared			(257)
Other comprehensive income (loss)	31			31
At end of period at Mar. 31, 2023	$ 23,435	$ 1,079	$ 22,837	$ (481)

Consolidated statement of cash

Consolidated statement of cash flows - CAD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Operating activities
Net income (loss)		$ 1,248	$ 1,173
Adjustments for non-cash items:
Depreciation and depletion		490	426
(Gain) loss on asset sales (note 3)		(9)	(20)
Deferred income taxes and other		(56)	(331)
Changes in operating assets and liabilities:
Accounts receivable		436	(1,544)
Inventories, materials, supplies and prepaid expenses		(479)	(364)
Income taxes payable		(2,077)	459
Accounts payable and accrued liabilities		(255)	2,144
All other items - net	[1]	(119)	(29)
Cash flows from (used in) operating activities		(821)	1,914
Investing activities
Additions to property, plant and equipment		(429)	(304)
Proceeds from asset sales (note 3)		14	24
Loans to equity companies - net		1	1
Cash flows from (used in) investing activities		(414)	(279)
Financing activities
Finance lease obligations - reduction (note 6)		(5)	(5)
Dividends paid		(266)	(185)
Common shares purchased (note 9)		0	(449)
Cash flows from (used in) financing activities		(271)	(639)
Increase (decrease) in cash and cash equivalents		(1,506)	996
Increase (decrease) in cash and cash equivalents		(1,506)	996
Cash and cash equivalents at beginning of period		3,749	2,153
Cash at end of period	[2]	$ 2,243	$ 3,149
[1] (b)  Included contributions to registered pension plans. (42) (50) (a)  Cash is composed of cash in bank and cash equivalents at cost. Cash equivalents are all highly liquid securities with maturity of

Consolidated statement of cas_2

Consolidated statement of cash flows (U.S. GAAP, unaudited) (Parenthetical) - CAD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Cash Flows [Abstract]
Included contributions to registered pension plans	$ (42)	$ (50)
Income taxes (paid) refunded	(2,632)	(223)
Interest (paid), net of capitalization	$ (21)	$ (12)

Basis of financial statement pr

Basis of financial statement preparation	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of financial statement preparation	Basis of financial statement preparation These unaudited consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (GAAP) and follow the same accounting policies and methods of computation as, and should be read in conjunction with, the most recent annual consolidated financial statements filed with the U.S. Securities and Exchange Commission (SEC) in the company’s 2022 annual report on Form 10-K. In the opinion of the company, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein. All such adjustments are of a normal recurring nature. The company’s exploration and production activities are accounted for under the “successful efforts” method. The results for the three months ended March 31, 2023, are not necessarily indicative of the operations to be expected for the full year.

Business segments

Business segments	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Business segments	Business segments Three Months to March 31 Upstream Downstream Chemical millions of Canadian dollars 2023 2022 2023 2022 2023 2022 Revenues and other income Revenues (a) (b) 76 99 11,639 12,191 342 367 Intersegment sales 3,622 4,431 1,823 1,833 91 104 Investment and other income (note 3) 2 4 20 21 — — 3,700 4,534 13,482 14,045 433 471 Expenses Exploration 1 2 — — — — Purchases of crude oil and products 1,543 1,890 11,196 12,512 274 315 Production and manufacturing 1,287 1,249 411 356 58 54 Selling and general — — 157 147 26 23 Federal excise tax and fuel charge — — 528 479 1 — Depreciation and depletion 434 373 45 41 4 5 Non-service pension and postretirement benefit — — — — — — Financing (note 5) — — — — — — Total expenses 3,265 3,514 12,337 13,535 363 397 Income (loss) before income taxes 435 1,020 1,145 510 70 74 Income tax expense (benefit) 105 238 275 121 17 18 Net income (loss) 330 782 870 389 53 56 Cash flows from (used in) operating activities (398) 1,447 (419) 375 (32) 67 Capital and exploration expenditures (c) 321 222 74 68 4 1 Total assets as at March 31 29,059 29,182 9,535 10,179 477 501 Three Months to March 31 Corporate and other Eliminations Consolidated millions of Canadian dollars 2023 2022 2023 2022 2023 2022 Revenues and other income Revenues (a) (b) — — — — 12,057 12,657 Intersegment sales — — (5,536) (6,368) — — Investment and other income (note 3) 42 4 — — 64 29 42 4 (5,536) (6,368) 12,121 12,686 Expenses Exploration — — — — 1 2 Purchases of crude oil and products — — (5,535) (6,367) 7,478 8,350 Production and manufacturing — — — — 1,756 1,659 Selling and general 4 56 (1) (1) 186 225 Federal excise tax and fuel charge — — — — 529 479 Depreciation and depletion 7 7 — — 490 426 Non-service pension and postretirement benefit 20 4 — — 20 4 Financing (note 5) 16 7 — — 16 7 Total expenses 47 74 (5,536) (6,368) 10,476 11,152 Income (loss) before income taxes (5) (70) — — 1,645 1,534 Income tax expense (benefit) — (16) — — 397 361 Net income (loss) (5) (54) — — 1,248 1,173 Cash flows from (used in) operating activities 28 25 — — (821) 1,914 Capital and exploration expenditures (c) 30 5 — — 429 296 Total assets as at March 31 3,815 4,136 (771) (188) 42,115 43,810 (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 those 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 those revenues and receivables within the scope of ASC 606 and those outside it. Revenues Three Months to March 31 millions of Canadian dollars 2023 2022 Revenue from contracts with customers 10,520 10,864 Revenue outside the scope of ASC 606 1,537 1,793 Total 12,057 12,657 (c) 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.

Investment and other income

Investment and other income	3 Months Ended
	Mar. 31, 2023
Other Income and Expenses [Abstract]
Investment and other income	Investment and other income Investment and other income included gains and losses on asset sales as follows: Three Months to March 31 millions of Canadian dollars 2023 2022 Proceeds from asset sales 14 24 Book value of asset sales 5 4 Gain (loss) on asset sales, before tax 9 20 Gain (loss) on asset sales, after tax 8 16

Employee retirement benefits

Employee retirement benefits	3 Months Ended
	Mar. 31, 2023
Retirement Benefits [Abstract]
Employee retirement benefits	Employee retirement benefits The components of net benefit cost were as follows: Three Months to March 31 millions of Canadian dollars 2023 2022 Pension benefits: Service cost 41 70 Interest cost 93 73 Expected return on plan assets (93) (103) Amortization of prior service cost 4 4 Amortization of actuarial loss (gain) 11 22 Net benefit cost 56 66 Other postretirement benefits: Service cost 3 6 Interest cost 7 6 Amortization of actuarial loss (gain) (2) 2 Net benefit cost 8 14

Financing costs

Financing costs	3 Months Ended
	Mar. 31, 2023
Financing costs and additional notes and loans payable information [Abstract]
Financing costs	Financing costs Three Months to March 31 millions of Canadian dollars 2023 2022 Debt-related interest 46 12 Capitalized interest (30) (5) Net interest expense 16 7 Other interest — — Total financing 16 7

Long-term debt

Long-term debt	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Long-term debt	Long-term debt millions of Canadian dollars As at As at 2023 2022 Long-term debt 3,447 3,447 Finance leases 580 586 Total long-term debt 4,027 4,033

Other long-term obligations

Other long-term obligations	3 Months Ended
	Mar. 31, 2023
Other Liabilities Disclosure [Abstract]
Other long-term obligations	Other long-term obligations As at Mar 31 As at Dec 31 millions of Canadian dollars 2023 2022 Employee retirement benefits (a) 875 902 Asset retirement obligations and other environmental liabilities (b) 2,158 2,150 Share-based incentive compensation liabilities 99 101 Operating lease liability (c) 137 151 Other obligations 140 163 Total other long-term obligations 3,409 3,467 (a) Total recorded employee retirement benefits obligations also included $63 million in current liabilities (2022 - $63 million). (b) Total asset retirement obligations and other environmental liabilities also included $116 million in current liabilities (2022 - $116 million). (c) Total operating lease liability also included $100 million in current liabilities (2022 - $100 million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $13 million (2022 - $14 million).

Financial and derivative instru

Financial and derivative instruments	3 Months Ended
	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Financial and derivative instruments	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 March 31, 2023 and December 31, 2022, the fair value of long-term debt ($3,447 million, 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. The net notional long/(short) position of derivative instruments was: As at Mar 31 As at Dec 31 thousands of barrels 2023 2022 Crude 3,490 1,800 Products (400) (350) Realized and unrealized gain/(loss) on derivative instruments recognized in the Consolidated statement of income is included in the following lines on a before-tax basis: Three Months to March 31 millions of Canadian dollars 2023 2022 Revenues (23) 37 The estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement was as follows: At March 31, 2023 millions of Canadian dollars Fair value Effect of Effect of Net Level 1 Level 2 Level 3 Total Assets Derivative assets (a) 13 26 — 39 (25) — 14 Liabilities Derivative liabilities (b) 17 47 — 64 (25) (3) 36 (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, 2022 millions of Canadian dollars Fair value Effect of Effect of Net Level 1 Level 2 Level 3 Total Assets Derivative assets (a) 17 32 — 49 (27) — 22 Liabilities Derivative liabilities (b) 21 20 — 41 (27) (4) 10 (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 March 31, 2023 and December 31, 2022, the company had $9 million and $14 million, respectively, of collateral under a master netting arrangement not offset against the derivatives on the Consolidated balance sheet in “Accounts receivable - net”, primarily related to initial margin requirements.

Common shares

Common shares	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Common shares	Common shares thousands of shares As of Mar 31 2023 As of 2022 Authorized 1,100,000 1,100,000 Common shares outstanding 584,153 584,153 The company’s common share activities are summarized below: Thousands of Millions of Balance as at December 31, 2021 678,080 1,252 Issued under employee share-based awards — — Purchases at stated value (93,927) (173) Balance as at December 31, 2022 584,153 1,079 Issued under employee share-based awards — — Purchases at stated value — — Balance as at March 31, 2023 584,153 1,079 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: Three Months to March 31 2023 2022 Net income (loss) per common share – basic Net income (loss) (millions of Canadian dollars) 1,248 1,173 Weighted average number of common shares outstanding (millions of shares) 584.2 670.5 Net income (loss) per common share (dollars) 2.14 1.75 Net income (loss) per common share – diluted Net income (loss) (millions of Canadian dollars) 1,248 1,173 Weighted average number of common shares outstanding (millions of shares) 584.2 670.5 Effect of employee share-based awards (millions of shares) 1.2 1.4 Weighted-average number of common shares outstanding, assuming dilution (millions of shares) 585.4 671.9 Net income (loss) per common share (dollars) 2.13 1.75 Dividends per common share – declared (dollars) 0.44 0.34

Other comprehensive income (los

Other comprehensive income (loss) information	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Other comprehensive income (loss) information	Other comprehensive income (loss) information Changes in accumulated other comprehensive income (loss): millions of Canadian dollars 2023 2022 Balance at January 1 (512) (1,177) Postretirement benefits liability adjustment: Current period change excluding amounts reclassified from accumulated other comprehensive income 21 24 Amounts reclassified from accumulated other comprehensive income 10 21 Balance at March 31 (481) (1,132) Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax income (expense): Three Months to March 31 millions of Canadian dollars 2023 2022 Amortization of postretirement benefits liability adjustment included in net benefit cost (a) (13) (28) (a) This accumulated other comprehensive income component is included in the computation of net benefit cost (note 4). Income tax expense (credit) for components of other comprehensive income (loss): Three Months to March 31 millions of Canadian dollars 2023 2022 Postretirement benefits liability adjustments: Postretirement benefits liability adjustment (excluding amortization) 7 8 Amortization of postretirement benefits liability adjustment included in net benefit cost 3 7 Total 10 15

Business segments (Tables)

Business segments (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Business segments	Three Months to March 31 Upstream Downstream Chemical millions of Canadian dollars 2023 2022 2023 2022 2023 2022 Revenues and other income Revenues (a) (b) 76 99 11,639 12,191 342 367 Intersegment sales 3,622 4,431 1,823 1,833 91 104 Investment and other income (note 3) 2 4 20 21 — — 3,700 4,534 13,482 14,045 433 471 Expenses Exploration 1 2 — — — — Purchases of crude oil and products 1,543 1,890 11,196 12,512 274 315 Production and manufacturing 1,287 1,249 411 356 58 54 Selling and general — — 157 147 26 23 Federal excise tax and fuel charge — — 528 479 1 — Depreciation and depletion 434 373 45 41 4 5 Non-service pension and postretirement benefit — — — — — — Financing (note 5) — — — — — — Total expenses 3,265 3,514 12,337 13,535 363 397 Income (loss) before income taxes 435 1,020 1,145 510 70 74 Income tax expense (benefit) 105 238 275 121 17 18 Net income (loss) 330 782 870 389 53 56 Cash flows from (used in) operating activities (398) 1,447 (419) 375 (32) 67 Capital and exploration expenditures (c) 321 222 74 68 4 1 Total assets as at March 31 29,059 29,182 9,535 10,179 477 501 Three Months to March 31 Corporate and other Eliminations Consolidated millions of Canadian dollars 2023 2022 2023 2022 2023 2022 Revenues and other income Revenues (a) (b) — — — — 12,057 12,657 Intersegment sales — — (5,536) (6,368) — — Investment and other income (note 3) 42 4 — — 64 29 42 4 (5,536) (6,368) 12,121 12,686 Expenses Exploration — — — — 1 2 Purchases of crude oil and products — — (5,535) (6,367) 7,478 8,350 Production and manufacturing — — — — 1,756 1,659 Selling and general 4 56 (1) (1) 186 225 Federal excise tax and fuel charge — — — — 529 479 Depreciation and depletion 7 7 — — 490 426 Non-service pension and postretirement benefit 20 4 — — 20 4 Financing (note 5) 16 7 — — 16 7 Total expenses 47 74 (5,536) (6,368) 10,476 11,152 Income (loss) before income taxes (5) (70) — — 1,645 1,534 Income tax expense (benefit) — (16) — — 397 361 Net income (loss) (5) (54) — — 1,248 1,173 Cash flows from (used in) operating activities 28 25 — — (821) 1,914 Capital and exploration expenditures (c) 30 5 — — 429 296 Total assets as at March 31 3,815 4,136 (771) (188) 42,115 43,810 (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 those 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 those revenues and receivables within the scope of ASC 606 and those outside it. Revenues Three Months to March 31 millions of Canadian dollars 2023 2022 Revenue from contracts with customers 10,520 10,864 Revenue outside the scope of ASC 606 1,537 1,793 Total 12,057 12,657 (c) 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.
Disaggregation of Revenue	Revenues Three Months to March 31 millions of Canadian dollars 2023 2022 Revenue from contracts with customers 10,520 10,864 Revenue outside the scope of ASC 606 1,537 1,793 Total 12,057 12,657

Investment and other income (Ta

Investment and other income (Tables)	3 Months Ended
	Mar. 31, 2023
Other Income and Expenses [Abstract]
Investment and other income	Investment and other income included gains and losses on asset sales as follows: Three Months to March 31 millions of Canadian dollars 2023 2022 Proceeds from asset sales 14 24 Book value of asset sales 5 4 Gain (loss) on asset sales, before tax 9 20 Gain (loss) on asset sales, after tax 8 16

Employee retirement benefits (T

Employee retirement benefits (Tables)	3 Months Ended
	Mar. 31, 2023
Retirement Benefits [Abstract]
Schedule of net benefit costs	The components of net benefit cost were as follows: Three Months to March 31 millions of Canadian dollars 2023 2022 Pension benefits: Service cost 41 70 Interest cost 93 73 Expected return on plan assets (93) (103) Amortization of prior service cost 4 4 Amortization of actuarial loss (gain) 11 22 Net benefit cost 56 66 Other postretirement benefits: Service cost 3 6 Interest cost 7 6 Amortization of actuarial loss (gain) (2) 2 Net benefit cost 8 14

Financing costs (Tables)

Financing costs (Tables)	3 Months Ended
	Mar. 31, 2023
Financing costs and additional notes and loans payable information [Abstract]
Financing costs	Three Months to March 31 millions of Canadian dollars 2023 2022 Debt-related interest 46 12 Capitalized interest (30) (5) Net interest expense 16 7 Other interest — — Total financing 16 7

Long-term debt (Tables)

Long-term debt (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Long-term debt	millions of Canadian dollars As at As at 2023 2022 Long-term debt 3,447 3,447 Finance leases 580 586 Total long-term debt 4,027 4,033

Other long-term obligations (Ta

Other long-term obligations (Tables)	3 Months Ended
	Mar. 31, 2023
Other Liabilities Disclosure [Abstract]
Other long-term obligations	As at Mar 31 As at Dec 31 millions of Canadian dollars 2023 2022 Employee retirement benefits (a) 875 902 Asset retirement obligations and other environmental liabilities (b) 2,158 2,150 Share-based incentive compensation liabilities 99 101 Operating lease liability (c) 137 151 Other obligations 140 163 Total other long-term obligations 3,409 3,467 (a) Total recorded employee retirement benefits obligations also included $63 million in current liabilities (2022 - $63 million). (b) Total asset retirement obligations and other environmental liabilities also included $116 million in current liabilities (2022 - $116 million). (c) Total operating lease liability also included $100 million in current liabilities (2022 - $100 million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $13 million (2022 - $14 million).

Financial and derivative inst_2

Financial and derivative instruments (Tables)	3 Months Ended
	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of net long short position of derivative instruments	The net notional long/(short) position of derivative instruments was: As at Mar 31 As at Dec 31 thousands of barrels 2023 2022 Crude 3,490 1,800 Products (400) (350)
Summary of realized and unrealized gain or (loss) on derivative instruments	Realized and unrealized gain/(loss) on derivative instruments recognized in the Consolidated statement of income is included in the following lines on a before-tax basis: Three Months to March 31 millions of Canadian dollars 2023 2022 Revenues (23) 37
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 was as follows: At March 31, 2023 millions of Canadian dollars Fair value Effect of Effect of Net Level 1 Level 2 Level 3 Total Assets Derivative assets (a) 13 26 — 39 (25) — 14 Liabilities Derivative liabilities (b) 17 47 — 64 (25) (3) 36 (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, 2022 millions of Canadian dollars Fair value Effect of Effect of Net Level 1 Level 2 Level 3 Total Assets Derivative assets (a) 17 32 — 49 (27) — 22 Liabilities Derivative liabilities (b) 21 20 — 41 (27) (4) 10 (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”.

Common shares (Tables)

Common shares (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Summary of common shares	thousands of shares As of Mar 31 2023 As of 2022 Authorized 1,100,000 1,100,000 Common shares outstanding 584,153 584,153
Common share activities	The company’s common share activities are summarized below: Thousands of Millions of Balance as at December 31, 2021 678,080 1,252 Issued under employee share-based awards — — Purchases at stated value (93,927) (173) Balance as at December 31, 2022 584,153 1,079 Issued under employee share-based awards — — Purchases at stated value — — Balance as at March 31, 2023 584,153 1,079
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: Three Months to March 31 2023 2022 Net income (loss) per common share – basic Net income (loss) (millions of Canadian dollars) 1,248 1,173 Weighted average number of common shares outstanding (millions of shares) 584.2 670.5 Net income (loss) per common share (dollars) 2.14 1.75 Net income (loss) per common share – diluted Net income (loss) (millions of Canadian dollars) 1,248 1,173 Weighted average number of common shares outstanding (millions of shares) 584.2 670.5 Effect of employee share-based awards (millions of shares) 1.2 1.4 Weighted-average number of common shares outstanding, assuming dilution (millions of shares) 585.4 671.9 Net income (loss) per common share (dollars) 2.13 1.75 Dividends per common share – declared (dollars) 0.44 0.34

Other comprehensive income (l_2

Other comprehensive income (loss) information (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Changes in accumulated other comprehensive income (loss)	Changes in accumulated other comprehensive income (loss): millions of Canadian dollars 2023 2022 Balance at January 1 (512) (1,177) Postretirement benefits liability adjustment: Current period change excluding amounts reclassified from accumulated other comprehensive income 21 24 Amounts reclassified from accumulated other comprehensive income 10 21 Balance at March 31 (481) (1,132)
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): Three Months to March 31 millions of Canadian dollars 2023 2022 Amortization of postretirement benefits liability adjustment included in net benefit cost (a) (13) (28) (a) This accumulated other comprehensive income component is included in the computation of net benefit cost (note 4).
Income tax expense (credit) for components of other comprehensive income (loss)	Income tax expense (credit) for components of other comprehensive income (loss): Three Months to March 31 millions of Canadian dollars 2023 2022 Postretirement benefits liability adjustments: Postretirement benefits liability adjustment (excluding amortization) 7 8 Amortization of postretirement benefits liability adjustment included in net benefit cost 3 7 Total 10 15

Business Segments (Detail)

Business Segments (Detail) - CAD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Revenues and other income
Revenues	[1]	$ 12,057	$ 12,657
Investment and other income (note 3, 0)		64	29
Total revenues and other income		12,121	12,686
Expenses
Exploration		1	2
Purchases of crude oil and products	[2]	7,478	8,350
Production and manufacturing	[3]	1,756	1,659
Selling and general	[3]	186	225
Federal excise tax and fuel charge		529	479
Depreciation and depletion		490	426
Non-service pension and postretirement benefit		20	4
Financing (note 5)	[4]	16	7
Total expenses		10,476	11,152
Income (loss) before income taxes		1,645	1,534
Income taxes		397	361
Net income (loss)		1,248	1,173
Cash flows from (used in) operating activities		(821)	1,914
Capital and exploration expenditures		429	296
Total assets as at September 30		42,115	43,810	$ 43,524
Corporate and other
Revenues and other income
Revenues		0	0
Investment and other income (note 3, 0)		42	4
Total revenues and other income		42	4
Expenses
Exploration		0	0
Purchases of crude oil and products		0	0
Production and manufacturing		0	0
Selling and general		4	56
Federal excise tax and fuel charge		0	0
Depreciation and depletion		7	7
Non-service pension and postretirement benefit		20	4
Financing (note 5)		16	7
Total expenses		47	74
Income (loss) before income taxes		(5)	(70)
Income taxes		0	(16)
Net income (loss)		(5)	(54)
Cash flows from (used in) operating activities		28	25
Capital and exploration expenditures		30	5
Total assets as at September 30		3,815	4,136
Eliminations
Revenues and other income
Revenues		(5,536)	(6,368)
Total revenues and other income		(5,536)	(6,368)
Expenses
Exploration		0	0
Purchases of crude oil and products		(5,535)	(6,367)
Production and manufacturing		0	0
Selling and general		(1)	(1)
Federal excise tax and fuel charge		0	0
Depreciation and depletion		0	0
Non-service pension and postretirement benefit		0	0
Financing (note 5)		0	0
Total expenses		(5,536)	(6,368)
Income (loss) before income taxes		0	0
Income taxes		0	0
Net income (loss)		0	0
Cash flows from (used in) operating activities		0	0
Capital and exploration expenditures		0	0
Total assets as at September 30		(771)	(188)
Upstream
Revenues and other income
Revenues		76	99
Investment and other income (note 3, 0)		2	4
Expenses
Exploration		1	2
Purchases of crude oil and products		1,543	1,890
Production and manufacturing		1,287	1,249
Selling and general		0	0
Federal excise tax and fuel charge		0	0
Depreciation and depletion		434	373
Non-service pension and postretirement benefit		0	0
Financing (note 5)		0	0
Total expenses		3,265	3,514
Income (loss) before income taxes		435	1,020
Income taxes		105	238
Net income (loss)		330	782
Cash flows from (used in) operating activities		(398)	1,447
Capital and exploration expenditures		321	222
Total assets as at September 30		29,059	29,182
Upstream | Intersegment Eliminations
Revenues and other income
Revenues		3,622	4,431
Upstream | Operating Segments
Revenues and other income
Total revenues and other income		3,700	4,534
Downstream
Revenues and other income
Revenues		11,639	12,191
Investment and other income (note 3, 0)		20	21
Expenses
Exploration		0	0
Purchases of crude oil and products		11,196	12,512
Production and manufacturing		411	356
Selling and general		157	147
Federal excise tax and fuel charge		528	479
Depreciation and depletion		45	41
Non-service pension and postretirement benefit		0	0
Financing (note 5)		0	0
Total expenses		12,337	13,535
Income (loss) before income taxes		1,145	510
Income taxes		275	121
Net income (loss)		870	389
Cash flows from (used in) operating activities		(419)	375
Capital and exploration expenditures		74	68
Total assets as at September 30		9,535	10,179
Downstream | Intersegment Eliminations
Revenues and other income
Revenues		1,823	1,833
Downstream | Operating Segments
Revenues and other income
Total revenues and other income		13,482	14,045
Chemical
Revenues and other income
Revenues		342	367
Investment and other income (note 3, 0)		0	0
Expenses
Exploration		0	0
Purchases of crude oil and products		274	315
Production and manufacturing		58	54
Selling and general		26	23
Federal excise tax and fuel charge		1	0
Depreciation and depletion		4	5
Non-service pension and postretirement benefit		0	0
Financing (note 5)		0	0
Total expenses		363	397
Income (loss) before income taxes		70	74
Income taxes		17	18
Net income (loss)		53	56
Cash flows from (used in) operating activities		(32)	67
Capital and exploration expenditures		4	1
Total assets as at September 30		477	501
Chemical | Intersegment Eliminations
Revenues and other income
Revenues		91	104
Chemical | Operating Segments
Revenues and other income
Total revenues and other income		$ 433	$ 471
[1] (a) Amounts from related parties included in revenues 3,136 3,959 (b) Amounts to related parties included in purchases of crude oil and products 1,078 650 (c) Amounts to related parties included in production and manufacturing, and selling and general expenses 135 118 (d) Amounts to related parties included in financing, (note 5). 39 4

Business Segments - Table Narra

Business Segments - Table Narrative (Detail) - CAD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Revenue from contracts with customers		$ 10,520	$ 10,864
Revenue outside the scope of ASC 606		1,537	1,793
Revenues	[1]	12,057	12,657
Downstream
Segment Reporting Information [Line Items]
Revenues		11,639	12,191
United States Exports
Segment Reporting Information [Line Items]
Operating revenues		$ 2,375	$ 2,504
[1] (a) Amounts from related parties included in revenues 3,136 3,959

Investment and other income - G

Investment and other income - Gains and Losses on Asset Sales (Detail) - CAD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Schedule of Investments [Abstract]
Proceeds from asset sales	$ 14	$ 24
Book value of asset sales	5	4
Gain (loss) on asset sales, before tax	9	20
Gain (loss) on asset sales, after tax	$ 8	$ 16

Employee retirement benefits -

Employee retirement benefits - Components of Net Periodic Benefit Cost (Detail) - CAD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Pension benefits:
Service cost	$ 41	$ 70
Interest cost	93	73
Expected return on plan assets	(93)	(103)
Amortization of prior service cost	4	4
Amortization of actuarial loss (gain)	11	22
Net benefit cost	56	66
Other postretirement benefits:
Service cost	3	6
Interest cost	7	6
Amortization of actuarial loss (gain)	(2)	2
Net benefit cost	$ 8	$ 14

Financing costs (Detail)

Financing costs (Detail) - CAD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Financing costs and additional notes and loans payable information [Abstract]
Debt-related interest		$ 46	$ 12
Capitalized interest		(30)	(5)
Net interest expense		16	7
Other interest		0	0
Total financing	[1]	$ 16	$ 7
[1] (d) Amounts to related parties included in financing, (note 5). 39 4

Long-term debt (Detail)

Long-term debt (Detail) - CAD ($) $ in Millions		Mar. 31, 2023	Dec. 31, 2022
Debt Disclosure [Abstract]
Long-term debt		$ 3,447	$ 3,447
Finance leases		580	586
Total long-term debt	[1]	$ 4,027	$ 4,033
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]		Total long-term debt	Total long-term debt
[1](c) Long-term debt included amounts to related parties of $3,447 million (2022 - $3,447 million).

Other long-term obligations - S

Other long-term obligations - Summary of Other Long-Term Obligations (Detail) - CAD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Other Liabilities Disclosure [Abstract]
Employee retirement benefits	$ 875	$ 902
Asset retirement obligations and other environmental liabilities	2,158	2,150
Share-based incentive compensation liabilities	99	101
Operating lease liability	137	151
Other obligations	140	163
Total other long-term obligations	$ 3,409	$ 3,467

Other long-term obligations - T

Other long-term obligations - Table Narrative (Detail) - CAD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Schedule of Other Liabilities [Line Items]
Employee retirement benefit obligations in current liabilities	$ 63	$ 63
Asset retirement obligations and other environmental liabilities in current liabilities	116	116
Undiscounted commitments	13	14
Accounts Payable and Accrued Liabilities
Schedule of Other Liabilities [Line Items]
Lease liability due within one year, Operating leases	$ 100	$ 100

Financial and derivative inst_3

Financial and derivative instruments - Narrative (Detail) - CAD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Financial Instruments And Derivatives [Line Items]
Long-term debt	$ 3,447	$ 3,447
Master netting arrangements
Financial Instruments And Derivatives [Line Items]
Derivative collateral receivable	$ 9	$ 14

Financial and derivative inst_4

Financial and derivative instruments - Summary of net notional long/(short) position of derivative instruments (Detail) - bbl bbl in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Crude
Derivative [Line Items]
Derivative, nonmonetary notional amount, volume	(3,490)	(1,800)
Products
Derivative [Line Items]
Derivative, nonmonetary notional amount, volume	(400)	(350)

Financial and derivative inst_5

Financial and derivative instruments - Summary of realized and unrealized gain or (loss) on derivative instruments (Detail) - CAD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Revenues	$ (23)	$ 37

Financial and derivative inst_6

Financial and derivative instruments - Summary of estimated fair value of financial instruments (Detail) - CAD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Assets
Derivative Asset	$ 39	$ 49
Liabilities
Derivative liabilities	64	41
Effect of counterparty netting
Assets
Derivative Asset	(25)	(27)
Liabilities
Derivative liabilities	(25)	(27)
Effect of collateral netting
Assets
Derivative Asset	0	0
Liabilities
Derivative liabilities	(3)	(4)
Net carrying value
Assets
Derivative Asset	14	22
Liabilities
Derivative liabilities	36	10
Level 1
Assets
Derivative Asset	13	17
Liabilities
Derivative liabilities	17	21
Level 2
Assets
Derivative Asset	26	32
Liabilities
Derivative liabilities	47	20
Level 3
Assets
Derivative Asset	0	0
Liabilities
Derivative liabilities	$ 0	$ 0

Common shares - Summary of Comm

Common shares - Summary of Common Shares (Detail) - shares shares in Thousands	Mar. 31, 2023	Dec. 31, 2022
Equity [Abstract]
Authorized (in shares)	1,100,000	1,100,000
Common shares outstanding (in shares)	584,153	584,153

Common shares - Common Share Ac

Common shares - Common Share Activities (Detail) - CAD ($) shares in Thousands, $ in Millions		3 Months Ended		12 Months Ended
		Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock beginning balance, (in shares)		584,153
Common stock, ending balance, (in shares)		584,153		584,153
Common stock beginning balance	[1]	$ 1,079
Common stock, ending balance	[1]	$ 1,079		$ 1,079
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock beginning balance, (in shares)		584,153	678,080	678,080
Issued under employee share-based awards, (in shares)		0		0
Purchases at stated value, (in shares)		0		(93,927)
Common stock, ending balance, (in shares)		584,153		584,153
Common stock beginning balance		$ 1,079	$ 1,252	$ 1,252
Issued under employee share-based awards		0		0
Purchases at stated value		0	$ (15)	(173)
Common stock, ending balance		$ 1,079		$ 1,079
[1](d) Number of common shares authorized and outstanding were 1,100 million and 584 million, respectively (2022 - 1,100 million and 584 million, respectively).

Common shares - Calculation of

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	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net income (loss) per common share – basic
Net income (loss)	$ 1,248	$ 1,173
Weighted average number of common shares outstanding (millions of shares)	584.2	670.5
Net income (loss) per common share (dollars)	$ 2.14	$ 1.75
Net income (loss) per common share – diluted
Net income (loss)	$ 1,248	$ 1,173
Weighted average number of common shares outstanding (millions of shares)	584.2	670.5
Effect of employee share-based awards (millions of shares)	1.2	1.4
Weighted-average number of common shares outstanding, assuming dilution (millions of shares)	585.4	671.9
Net income (loss) per common share (dollars)	$ 2.13	$ 1.75
Dividends per common share – declared (dollars)	$ 0.44	$ 0.34

Other comprehensive income (l_3

Other comprehensive income (loss) information - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at January 1	$ (512)
Balance at March 31	(481)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at January 1	(512)	$ (1,177)
Current period change excluding amounts reclassified from accumulated other comprehensive income	21	24
Amounts reclassified from accumulated other comprehensive income	10	21
Balance at March 31	$ (481)	$ (1,132)

Other comprehensive income (l_4

Other comprehensive income (loss) information - Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
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	$ (13)	$ (28)

Other comprehensive income (l_5

Other comprehensive income (loss) information - Income Tax Expense (Credit) for Components of Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Uncategorized [Abstract]
Postretirement benefits liability adjustment (excluding amortization)	$ 7	$ 8
Amortization of postretirement benefits liability adjustment included in net benefit cost	3	7
Total	$ 10	$ 15