Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2023 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 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 | Q2 |
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 | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Revenues and other income | |||||
Revenues | [1] | $ 11,764 | $ 17,285 | $ 23,821 | $ 29,942 |
Investment and other income (note 3) | 55 | 22 | 119 | 51 | |
Total revenues and other income | 11,819 | 17,307 | 23,940 | 29,993 | |
Expenses | |||||
Exploration | 1 | 1 | 2 | 3 | |
Purchases of crude oil and products | [2] | 7,856 | 11,021 | 15,334 | 19,371 |
Production and manufacturing | [3] | 1,785 | 1,908 | 3,541 | 3,567 |
Selling and general | [3] | 206 | 191 | 392 | 416 |
Federal excise tax and fuel charge | 598 | 553 | 1,127 | 1,032 | |
Depreciation and depletion | 453 | 451 | 943 | 877 | |
Non-service pension and postretirement benefit | 20 | 5 | 40 | 9 | |
Financing | [4] | 16 | 11 | 32 | 18 |
Total expenses | 10,935 | 14,141 | 21,411 | 25,293 | |
Income (loss) before income taxes | 884 | 3,166 | 2,529 | 4,700 | |
Income taxes | 209 | 757 | 606 | 1,118 | |
Net income (loss) | $ 675 | $ 2,409 | $ 1,923 | $ 3,582 | |
Per share information (Canadian dollars) | |||||
Net income (loss) per common share - basic (note 9) (in CAD per share) | $ 1.16 | $ 3.63 | $ 3.29 | $ 5.37 | |
Net income (loss) per common share - diluted (note 9) (in CAD per share) | $ 1.15 | $ 3.63 | $ 3.29 | $ 5.36 | |
[1] (a) Amounts from related parties included in revenues. 3,556 5,175 6,692 9,134 (b) Amounts to related parties included in purchases of crude oil and products. 964 1,129 2,042 1,779 (c) Amounts to related parties included in production and manufacturing, 125 116 260 234 (d) Amounts to related parties included in financing. 41 13 80 17 |
Consolidated statement of inc_2
Consolidated statement of income (U.S. GAAP, unaudited) (Parenthetical) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Amounts from related parties included in revenues | [1] | $ 11,764 | $ 17,285 | $ 23,821 | $ 29,942 |
Amounts to related parties included in purchases of crude oil and products | [2] | 7,856 | 11,021 | 15,334 | 19,371 |
Amounts to related parties included in financing | [3] | 16 | 11 | 32 | 18 |
Related Party | |||||
Amounts from related parties included in revenues | 3,556 | 5,175 | 6,692 | 9,134 | |
Amounts to related parties included in purchases of crude oil and products | 964 | 1,129 | 2,042 | 1,779 | |
Amounts to related parties included in production and manufacturing, and selling and general expenses | 125 | 116 | 260 | 234 | |
Amounts to related parties included in financing | $ 41 | $ 13 | $ 80 | $ 17 | |
[1] (a) Amounts from related parties included in revenues. 3,556 5,175 6,692 9,134 (b) Amounts to related parties included in purchases of crude oil and products. 964 1,129 2,042 1,779 (d) Amounts to related parties included in financing. 41 13 80 17 |
Consolidated statement of compr
Consolidated statement of comprehensive income (U.S. GAAP, unaudited) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 675 | $ 2,409 | $ 1,923 | $ 3,582 |
Other comprehensive income (loss), net of income taxes | ||||
Postretirement benefits liability adjustment (excluding amortization) | 0 | 0 | 21 | 24 |
Amortization of postretirement benefits liability adjustment included in net benefit costs | 10 | 21 | 20 | 42 |
Total other comprehensive income (loss) | 10 | 21 | 41 | 66 |
Comprehensive income (loss) | $ 685 | $ 2,430 | $ 1,964 | $ 3,648 |
Consolidated balance sheet (U.S
Consolidated balance sheet (U.S. GAAP, unaudited) - CAD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | |
Current assets | |||
Cash and cash equivalents | $ 2,376 | $ 3,749 | |
Accounts receivable - net | [1] | 4,585 | 4,719 |
Inventories of crude oil and products | 1,460 | 1,514 | |
Materials, supplies and prepaid expenses | 869 | 754 | |
Total current assets | 9,290 | 10,736 | |
Investments and long-term receivables | [2] | 998 | 893 |
Property, plant and equipment, | 55,424 | 54,568 | |
less accumulated depreciation and depletion | (24,945) | (24,062) | |
Property, plant and equipment, net | 30,479 | 30,506 | |
Goodwill | 166 | 166 | |
Other assets, including intangibles - net | 1,193 | 1,223 | |
Total assets | 42,126 | 43,524 | |
Current liabilities | |||
Notes and loans payable | 122 | 122 | |
Accounts payable and accrued liabilities (note 7) | [1] | 5,923 | 6,194 |
Income taxes payable | 184 | 2,582 | |
Total current liabilities | 6,229 | 8,898 | |
Long-term debt | [3] | 4,022 | 4,033 |
Other long-term obligations (note 7) | 3,418 | 3,467 | |
Deferred income tax liabilities | 4,629 | 4,713 | |
Total liabilities | 18,298 | 21,111 | |
Shareholders’ equity | |||
Common shares at stated value (note 9) | [4] | 1,079 | 1,079 |
Earnings reinvested | 23,220 | 21,846 | |
Accumulated other comprehensive income (loss) (note 10) | (471) | (512) | |
Total shareholders’ equity | 23,828 | 22,413 | |
Total liabilities and shareholders’ equity | $ 42,126 | $ 43,524 | |
[1](a) Accounts receivable - net included net amounts receivable from related parties of $1,029 million (2022 - $1,108 million).[2](b) Investments and long-term receivables included amounts from related parties of $286 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 | Jun. 30, 2023 | Dec. 31, 2022 | |
Investments and long-term receivables, related party amount | [1] | $ 998 | $ 893 |
Long-term debt, related party amount | [2] | $ 4,022 | $ 4,033 |
Common shares authorized | 1,100,000 | 1,100,000 | |
Common shares outstanding | 584,000 | 584,000 | |
Related Party | |||
Accounts receivable, net | $ 1,029 | $ 1,108 | |
Investments and long-term receivables, related party amount | 286 | 288 | |
Long-term debt, related party amount | $ 3,447 | $ 3,447 | |
[1](b) Investments and long-term receivables included amounts from related parties of $286 million (2022 - $288 million).[2](c) Long-term debt included amounts to related parties of $3,447 million (2022 - $3,447 million). |
Consolidated statement of share
Consolidated statement of shareholders' equity (U.S GAAP, unaudited) - CAD ($) $ 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] | ||||
Share purchases at stated value | (75) | |||
Net income (loss) for the period | $ 3,582 | 3,582 | ||
Share purchases in excess of stated value | (2,874) | |||
Dividends declared | (455) | |||
Other comprehensive income (loss) | 66 | 66 | ||
At end of period at Jun. 30, 2022 | 21,979 | 1,177 | 21,913 | (1,111) |
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) |
At beginning of period at Mar. 31, 2022 | 1,237 | 22,171 | (1,132) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Share purchases at stated value | (60) | |||
Net income (loss) for the period | 2,409 | 2,409 | ||
Share purchases in excess of stated value | (2,440) | |||
Dividends declared | (227) | |||
Other comprehensive income (loss) | 21 | 21 | ||
At end of period at Jun. 30, 2022 | 21,979 | 1,177 | 21,913 | (1,111) |
At beginning of period at Dec. 31, 2022 | 22,413 | 1,079 | 21,846 | (512) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Share purchases at stated value | 0 | |||
Net income (loss) for the period | 1,923 | 1,923 | ||
Share purchases in excess of stated value | 0 | |||
Dividends declared | (549) | |||
Other comprehensive income (loss) | 41 | 41 | ||
At end of period at Jun. 30, 2023 | 23,828 | 1,079 | 23,220 | (471) |
At beginning of period at Mar. 31, 2023 | 1,079 | 22,837 | (481) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Share purchases at stated value | 0 | |||
Net income (loss) for the period | 675 | 675 | ||
Share purchases in excess of stated value | 0 | |||
Dividends declared | (292) | |||
Other comprehensive income (loss) | 10 | 10 | ||
At end of period at Jun. 30, 2023 | $ 23,828 | $ 1,079 | $ 23,220 | $ (471) |
Consolidated statement of cash
Consolidated statement of cash flows (U.S. GAAP, unaudited) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Operating activities | |||||
Net income (loss) | $ 675 | $ 2,409 | $ 1,923 | $ 3,582 | |
Adjustments for non-cash items: | |||||
Depreciation and depletion | 453 | 451 | 943 | 877 | |
(Gain) loss on asset sales (note 3) | (13) | (4) | (22) | (24) | |
Deferred income taxes and other | (15) | (149) | (71) | (480) | |
Changes in operating assets and liabilities: | |||||
Accounts receivable | (302) | (1,426) | 134 | (2,970) | |
Inventories, materials, supplies and prepaid expenses | 420 | (27) | (59) | (391) | |
Income taxes payable | (321) | 853 | (2,398) | 1,312 | |
Accounts payable and accrued liabilities | (48) | 499 | (303) | 2,643 | |
All other items - net | [1] | 36 | 76 | (83) | 47 |
Cash flows from (used in) operating activities | 885 | 2,682 | 64 | 4,596 | |
Investing activities | |||||
Additions to property, plant and equipment | (499) | (333) | (928) | (637) | |
Proceeds from asset sales (note 3) | [2] | 9 | 102 | 23 | 126 |
Loans to equity companies - net | 1 | 1 | 2 | 2 | |
Cash flows from (used in) investing activities | (489) | (230) | (903) | (509) | |
Financing activities | |||||
Finance lease obligations - reduction (note 6) | (6) | (6) | (11) | (11) | |
Dividends paid | (257) | (228) | (523) | (413) | |
Common shares purchased (note 9) | 0 | (2,500) | 0 | (2,949) | |
Cash flows from (used in) financing activities | (263) | (2,734) | (534) | (3,373) | |
Increase (decrease) in cash and cash equivalents | 133 | (282) | (1,373) | 714 | |
Cash and cash equivalents at beginning of period | 2,243 | 3,149 | 3,749 | 2,153 | |
Cash and cash equivalents at end of period | [3] | $ 2,376 | $ 2,867 | $ 2,376 | $ 2,867 |
[1] (c) Included contributions to registered pension plans. (44) (46) (86) (96) |
Consolidated statement of cas_2
Consolidated statement of cash flows (U.S. GAAP, unaudited) (Parenthetical) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Proceeds from asset sales | [1] | $ 9 | $ 102 | $ 23 | $ 126 |
Included contributions to registered pension plans | (44) | (46) | (86) | (96) | |
Income taxes (paid) refunded. | (557) | (52) | (3,189) | (275) | |
Interest (paid), net of capitalization. | $ (16) | (10) | $ (37) | (22) | |
XTO Energy Canada | |||||
Proceeds from asset sales | $ 94 | $ 94 | |||
[1](b) In the second quarter of 2022, a deposit of $94 million was received for the pending sale of XTO Energy Canada. |
Basis of financial statement pr
Basis of financial statement preparation | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2023, are not necessarily indicative of the operations to be expected for the full year. |
Business segments
Business segments | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Business segments | Business segments Second Quarter Upstream Downstream Chemical millions of Canadian dollars 2023 2022 2023 2022 2023 2022 Revenues and other income Revenues (a) (b) 61 119 11,355 16,752 348 414 Intersegment sales 3,519 5,827 1,365 2,024 89 149 Investment and other income (note 3) 10 3 15 9 — — 3,590 5,949 12,735 18,785 437 563 Expenses Exploration 1 1 — — — — Purchases of crude oil and products 1,432 2,357 11,133 16,261 263 401 Production and manufacturing 1,256 1,423 475 418 54 67 Selling and general — — 160 153 22 22 Federal excise tax and fuel charge — — 597 553 1 — Depreciation and depletion 398 395 44 45 4 4 Non-service pension and postretirement benefit — — — — — — Financing (note 5) — 1 — — — — Total expenses 3,087 4,177 12,409 17,430 344 494 Income (loss) before income taxes 503 1,772 326 1,355 93 69 Income tax expense (benefit) 119 426 76 322 22 16 Net income (loss) 384 1,346 250 1,033 71 53 Cash flows from (used in) operating activities 573 2,087 228 641 55 64 Capital and exploration expenditures (c) 303 233 152 69 5 2 Second Quarter Corporate and other Eliminations Consolidated millions of Canadian dollars 2023 2022 2023 2022 2023 2022 Revenues and other income Revenues (a) (b) — — — — 11,764 17,285 Intersegment sales — — (4,973) (8,000) — — Investment and other income (note 3) 30 10 — — 55 22 30 10 (4,973) (8,000) 11,819 17,307 Expenses Exploration — — — — 1 1 Purchases of crude oil and products — — (4,972) (7,998) 7,856 11,021 Production and manufacturing — — — — 1,785 1,908 Selling and general 25 18 (1) (2) 206 191 Federal excise tax and fuel charge — — — — 598 553 Depreciation and depletion 7 7 — — 453 451 Non-service pension and postretirement benefit 20 5 — — 20 5 Financing (note 5) 16 10 — — 16 11 Total expenses 68 40 (4,973) (8,000) 10,935 14,141 Income (loss) before income taxes (38) (30) — — 884 3,166 Income tax expense (benefit) (8) (7) — — 209 757 Net income (loss) (30) (23) — — 675 2,409 Cash flows from (used in) operating activities 29 (110) — — 885 2,682 Capital and exploration expenditures (c) 33 10 — — 493 314 (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 Second Quarter millions of Canadian dollars 2023 2022 Revenue from contracts with customers 10,922 15,871 Revenue outside the scope of ASC 606 842 1,414 Total 11,764 17,285 (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. Six Months to June 30 Upstream Downstream Chemical millions of Canadian dollars 2023 2022 2023 2022 2023 2022 Revenues and other income Revenues (a) (b) 137 218 22,994 28,943 690 781 Intersegment sales 7,141 10,258 3,188 3,857 180 253 Investment and other income (note 3) 12 7 35 30 — — 7,290 10,483 26,217 32,830 870 1,034 Expenses Exploration 2 3 — — — — Purchases of crude oil and products 2,975 4,247 22,329 28,773 537 716 Production and manufacturing 2,543 2,672 886 774 112 121 Selling and general — — 317 300 48 45 Federal excise tax and fuel charge — — 1,125 1,032 2 — Depreciation and depletion 832 768 89 86 8 9 Non-service pension and postretirement benefit — — — — — — Financing (note 5) — 1 — — — — Total expenses 6,352 7,691 24,746 30,965 707 891 Income (loss) before income taxes 938 2,792 1,471 1,865 163 143 Income tax expense (benefit) 224 664 351 443 39 34 Net income (loss) 714 2,128 1,120 1,422 124 109 Cash flows from (used in) operating activities 175 3,534 (191) 1,016 23 131 Capital and exploration expenditures (c) 624 455 226 137 9 3 Total assets as at June 30 28,603 28,961 9,629 11,649 482 505 Six Months to June 30 Corporate and other Eliminations Consolidated millions of Canadian dollars 2023 2022 2023 2022 2023 2022 Revenues and other income Revenues (a) (b) — — — — 23,821 29,942 Intersegment sales — — (10,509) (14,368) — — Investment and other income (note 3) 72 14 — — 119 51 72 14 (10,509) (14,368) 23,940 29,993 Expenses Exploration — — — — 2 3 Purchases of crude oil and products — — (10,507) (14,365) 15,334 19,371 Production and manufacturing — — — — 3,541 3,567 Selling and general 29 74 (2) (3) 392 416 Federal excise tax and fuel charge — — — — 1,127 1,032 Depreciation and depletion 14 14 — — 943 877 Non-service pension and postretirement benefit 40 9 — — 40 9 Financing (note 5) 32 17 — — 32 18 Total expenses 115 114 (10,509) (14,368) 21,411 25,293 Income (loss) before income taxes (43) (100) — — 2,529 4,700 Income tax expense (benefit) (8) (23) — — 606 1,118 Net income (loss) (35) (77) — — 1,923 3,582 Cash flows from (used in) operating activities 57 (85) — — 64 4,596 Capital and exploration expenditures (c) 63 15 — — 922 610 Total assets as at June 30 3,915 4,016 (503) (239) 42,126 44,892 (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 Six Months to June 30 millions of Canadian dollars 2023 2022 Revenue from contracts with customers 21,442 26,735 Revenue outside the scope of ASC 606 2,379 3,207 Total 23,821 29,942 (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 | 6 Months Ended |
Jun. 30, 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: Second Quarter Six Months to June 30 millions of Canadian dollars 2023 2022 2023 2022 Proceeds from asset sales 9 8 23 32 Book value of asset sales (4) 4 1 8 Gain (loss) on asset sales, before tax 13 4 22 24 Gain (loss) on asset sales, after tax 10 3 18 19 |
Employee retirement benefits
Employee retirement benefits | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Employee retirement benefits | Employee retirement benefits The components of net benefit cost were as follows: Second Quarter Six Months to June 30 millions of Canadian dollars 2023 2022 2023 2022 Pension benefits: Service cost 40 70 81 140 Interest cost 93 74 186 147 Expected return on plan assets (93) (103) (186) (206) Amortization of prior service cost 4 4 8 8 Amortization of actuarial loss (gain) 11 21 22 43 Net benefit cost 55 66 111 132 Other postretirement benefits: Service cost 3 5 6 11 Interest cost 7 6 14 12 Amortization of actuarial loss (gain) (2) 3 (4) 5 Net benefit cost 8 14 16 28 |
Financing costs
Financing costs | 6 Months Ended |
Jun. 30, 2023 | |
Financing costs and additional notes and loans payable information [Abstract] | |
Financing costs | Financing costs Second Quarter Six Months to June 30 millions of Canadian dollars 2023 2022 2023 2022 Debt-related interest 49 20 95 32 Capitalized interest (33) (10) (63) (15) Net interest expense 16 10 32 17 Other interest — 1 — 1 Total financing 16 11 32 18 |
Long-term debt
Long-term debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt As at June 30 As at Dec 31 millions of Canadian dollars 2023 2022 Long-term debt 3,447 3,447 Finance leases 575 586 Total long-term debt 4,022 4,033 |
Other long-term obligations
Other long-term obligations | 6 Months Ended |
Jun. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other long-term obligations | Other long-term obligations As at June 30 As at Dec 31 millions of Canadian dollars 2023 2022 Employee retirement benefits (a) 875 902 Asset retirement obligations and other environmental liabilities (b) 2,165 2,150 Share-based incentive compensation liabilities 107 101 Operating lease liability (c) 127 151 Other obligations 144 163 Total other long-term obligations 3,418 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 $106 million in current liabilities (2022 - $100 million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $60 million (2022 - $14 million). |
Financial and derivative instru
Financial and derivative instruments | 6 Months Ended |
Jun. 30, 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 June 30, 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 June 30 As at Dec 31 thousands of barrels 2023 2022 Crude 8,040 1,800 Products (670) (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: Second Quarter Six Months to June 30 millions of Canadian dollars 2023 2022 2023 2022 Revenues 10 (51) (13) (14) The estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement were as follows: At June 30, 2023 millions of Canadian dollars Fair value Effect of Effect of Net Level 1 Level 2 Level 3 Total Assets Derivative assets (a) 11 31 — 42 (11) — 31 Liabilities Derivative liabilities (b) 13 26 — 39 (11) (2) 26 (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 June 30, 2023 and December 31, 2022, the company had $8 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 | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Common shares | Common shares thousands of shares As at June 30 2023 As at Dec 31 2022 Authorized 1,100,000 1,100,000 Outstanding 584,153 584,153 The current 12-month normal course issuer bid program came into effect June 29, 2023 under which Imperial will continue its existing share purchase program. The program enables the company to purchase up to a maximum of 29,207,635 common shares (5 percent of the total shares on June 15, 2023) which includes 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 has advised the company that it intends to participate to maintain its ownership percentage at approximately 69.6 percent. Imperial plans to accelerate its share purchases under the normal course issuer bid program, and anticipates repurchasing all remaining allowable shares prior to year end. Purchase plans may be modified at any time without prior notice. 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: 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 June 30, 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: Second Quarter Six Months to June 30 2023 2022 2023 2022 Net income (loss) per common share – basic Net income (loss) (millions of Canadian dollars) 675 2,409 1,923 3,582 Weighted average number of common shares outstanding (millions of shares) 584.2 663.0 584.2 666.7 Net income (loss) per common share (dollars) 1.16 3.63 3.29 5.37 Net income (loss) per common share – diluted Net income (loss) (millions of Canadian dollars) 675 2,409 1,923 3,582 Weighted average number of common shares outstanding (millions of shares) 584.2 663.0 584.2 666.7 Effect of employee share-based awards (millions of shares) 1.1 1.4 1.1 1.4 Weighted-average number of common shares outstanding, assuming dilution (millions of shares) 585.3 664.4 585.3 668.1 Net income (loss) per common share (dollars) 1.15 3.63 3.29 5.36 Dividends per common share – declared (dollars) 0.50 0.34 0.94 0.68 |
Other comprehensive income (los
Other comprehensive income (loss) information | 6 Months Ended |
Jun. 30, 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 20 42 Balance at June 30 (471) (1,111) Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax income (expense): Second Quarter Six Months to June 30 millions of Canadian dollars 2023 2022 2023 2022 Amortization of postretirement benefits liability adjustment included in net benefit cost (a) (13) (27) (26) (55) (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): Second Quarter Six Months to June 30 millions of Canadian dollars 2023 2022 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 6 6 13 Total 3 6 13 21 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ 675 | $ 2,409 | $ 1,923 | $ 3,582 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Business segments (Tables)
Business segments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Business segments | Second Quarter Upstream Downstream Chemical millions of Canadian dollars 2023 2022 2023 2022 2023 2022 Revenues and other income Revenues (a) (b) 61 119 11,355 16,752 348 414 Intersegment sales 3,519 5,827 1,365 2,024 89 149 Investment and other income (note 3) 10 3 15 9 — — 3,590 5,949 12,735 18,785 437 563 Expenses Exploration 1 1 — — — — Purchases of crude oil and products 1,432 2,357 11,133 16,261 263 401 Production and manufacturing 1,256 1,423 475 418 54 67 Selling and general — — 160 153 22 22 Federal excise tax and fuel charge — — 597 553 1 — Depreciation and depletion 398 395 44 45 4 4 Non-service pension and postretirement benefit — — — — — — Financing (note 5) — 1 — — — — Total expenses 3,087 4,177 12,409 17,430 344 494 Income (loss) before income taxes 503 1,772 326 1,355 93 69 Income tax expense (benefit) 119 426 76 322 22 16 Net income (loss) 384 1,346 250 1,033 71 53 Cash flows from (used in) operating activities 573 2,087 228 641 55 64 Capital and exploration expenditures (c) 303 233 152 69 5 2 Second Quarter Corporate and other Eliminations Consolidated millions of Canadian dollars 2023 2022 2023 2022 2023 2022 Revenues and other income Revenues (a) (b) — — — — 11,764 17,285 Intersegment sales — — (4,973) (8,000) — — Investment and other income (note 3) 30 10 — — 55 22 30 10 (4,973) (8,000) 11,819 17,307 Expenses Exploration — — — — 1 1 Purchases of crude oil and products — — (4,972) (7,998) 7,856 11,021 Production and manufacturing — — — — 1,785 1,908 Selling and general 25 18 (1) (2) 206 191 Federal excise tax and fuel charge — — — — 598 553 Depreciation and depletion 7 7 — — 453 451 Non-service pension and postretirement benefit 20 5 — — 20 5 Financing (note 5) 16 10 — — 16 11 Total expenses 68 40 (4,973) (8,000) 10,935 14,141 Income (loss) before income taxes (38) (30) — — 884 3,166 Income tax expense (benefit) (8) (7) — — 209 757 Net income (loss) (30) (23) — — 675 2,409 Cash flows from (used in) operating activities 29 (110) — — 885 2,682 Capital and exploration expenditures (c) 33 10 — — 493 314 (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 Second Quarter millions of Canadian dollars 2023 2022 Revenue from contracts with customers 10,922 15,871 Revenue outside the scope of ASC 606 842 1,414 Total 11,764 17,285 (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. Six Months to June 30 Upstream Downstream Chemical millions of Canadian dollars 2023 2022 2023 2022 2023 2022 Revenues and other income Revenues (a) (b) 137 218 22,994 28,943 690 781 Intersegment sales 7,141 10,258 3,188 3,857 180 253 Investment and other income (note 3) 12 7 35 30 — — 7,290 10,483 26,217 32,830 870 1,034 Expenses Exploration 2 3 — — — — Purchases of crude oil and products 2,975 4,247 22,329 28,773 537 716 Production and manufacturing 2,543 2,672 886 774 112 121 Selling and general — — 317 300 48 45 Federal excise tax and fuel charge — — 1,125 1,032 2 — Depreciation and depletion 832 768 89 86 8 9 Non-service pension and postretirement benefit — — — — — — Financing (note 5) — 1 — — — — Total expenses 6,352 7,691 24,746 30,965 707 891 Income (loss) before income taxes 938 2,792 1,471 1,865 163 143 Income tax expense (benefit) 224 664 351 443 39 34 Net income (loss) 714 2,128 1,120 1,422 124 109 Cash flows from (used in) operating activities 175 3,534 (191) 1,016 23 131 Capital and exploration expenditures (c) 624 455 226 137 9 3 Total assets as at June 30 28,603 28,961 9,629 11,649 482 505 Six Months to June 30 Corporate and other Eliminations Consolidated millions of Canadian dollars 2023 2022 2023 2022 2023 2022 Revenues and other income Revenues (a) (b) — — — — 23,821 29,942 Intersegment sales — — (10,509) (14,368) — — Investment and other income (note 3) 72 14 — — 119 51 72 14 (10,509) (14,368) 23,940 29,993 Expenses Exploration — — — — 2 3 Purchases of crude oil and products — — (10,507) (14,365) 15,334 19,371 Production and manufacturing — — — — 3,541 3,567 Selling and general 29 74 (2) (3) 392 416 Federal excise tax and fuel charge — — — — 1,127 1,032 Depreciation and depletion 14 14 — — 943 877 Non-service pension and postretirement benefit 40 9 — — 40 9 Financing (note 5) 32 17 — — 32 18 Total expenses 115 114 (10,509) (14,368) 21,411 25,293 Income (loss) before income taxes (43) (100) — — 2,529 4,700 Income tax expense (benefit) (8) (23) — — 606 1,118 Net income (loss) (35) (77) — — 1,923 3,582 Cash flows from (used in) operating activities 57 (85) — — 64 4,596 Capital and exploration expenditures (c) 63 15 — — 922 610 Total assets as at June 30 3,915 4,016 (503) (239) 42,126 44,892 (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 Six Months to June 30 millions of Canadian dollars 2023 2022 Revenue from contracts with customers 21,442 26,735 Revenue outside the scope of ASC 606 2,379 3,207 Total 23,821 29,942 (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 Second Quarter millions of Canadian dollars 2023 2022 Revenue from contracts with customers 10,922 15,871 Revenue outside the scope of ASC 606 842 1,414 Total 11,764 17,285 Revenues Six Months to June 30 millions of Canadian dollars 2023 2022 Revenue from contracts with customers 21,442 26,735 Revenue outside the scope of ASC 606 2,379 3,207 Total 23,821 29,942 |
Investment and other income (Ta
Investment and other income (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Investment and other income | Investment and other income included gains and losses on asset sales as follows: Second Quarter Six Months to June 30 millions of Canadian dollars 2023 2022 2023 2022 Proceeds from asset sales 9 8 23 32 Book value of asset sales (4) 4 1 8 Gain (loss) on asset sales, before tax 13 4 22 24 Gain (loss) on asset sales, after tax 10 3 18 19 |
Employee retirement benefits (T
Employee retirement benefits (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of net benefit costs | The components of net benefit cost were as follows: Second Quarter Six Months to June 30 millions of Canadian dollars 2023 2022 2023 2022 Pension benefits: Service cost 40 70 81 140 Interest cost 93 74 186 147 Expected return on plan assets (93) (103) (186) (206) Amortization of prior service cost 4 4 8 8 Amortization of actuarial loss (gain) 11 21 22 43 Net benefit cost 55 66 111 132 Other postretirement benefits: Service cost 3 5 6 11 Interest cost 7 6 14 12 Amortization of actuarial loss (gain) (2) 3 (4) 5 Net benefit cost 8 14 16 28 |
Financing costs (Tables)
Financing costs (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Financing costs and additional notes and loans payable information [Abstract] | |
Financing costs | Second Quarter Six Months to June 30 millions of Canadian dollars 2023 2022 2023 2022 Debt-related interest 49 20 95 32 Capitalized interest (33) (10) (63) (15) Net interest expense 16 10 32 17 Other interest — 1 — 1 Total financing 16 11 32 18 |
Long-term debt (Tables)
Long-term debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-term debt | As at June 30 As at Dec 31 millions of Canadian dollars 2023 2022 Long-term debt 3,447 3,447 Finance leases 575 586 Total long-term debt 4,022 4,033 |
Other long-term obligations (Ta
Other long-term obligations (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other long-term obligations | As at June 30 As at Dec 31 millions of Canadian dollars 2023 2022 Employee retirement benefits (a) 875 902 Asset retirement obligations and other environmental liabilities (b) 2,165 2,150 Share-based incentive compensation liabilities 107 101 Operating lease liability (c) 127 151 Other obligations 144 163 Total other long-term obligations 3,418 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 $106 million in current liabilities (2022 - $100 million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $60 million (2022 - $14 million). |
Financial and derivative inst_2
Financial and derivative instruments (Tables) | 6 Months Ended |
Jun. 30, 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 June 30 As at Dec 31 thousands of barrels 2023 2022 Crude 8,040 1,800 Products (670) (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: Second Quarter Six Months to June 30 millions of Canadian dollars 2023 2022 2023 2022 Revenues 10 (51) (13) (14) |
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 were as follows: At June 30, 2023 millions of Canadian dollars Fair value Effect of Effect of Net Level 1 Level 2 Level 3 Total Assets Derivative assets (a) 11 31 — 42 (11) — 31 Liabilities Derivative liabilities (b) 13 26 — 39 (11) (2) 26 (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) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Summary of common shares | thousands of shares As at June 30 2023 As at Dec 31 2022 Authorized 1,100,000 1,100,000 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 June 30, 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: Second Quarter Six Months to June 30 2023 2022 2023 2022 Net income (loss) per common share – basic Net income (loss) (millions of Canadian dollars) 675 2,409 1,923 3,582 Weighted average number of common shares outstanding (millions of shares) 584.2 663.0 584.2 666.7 Net income (loss) per common share (dollars) 1.16 3.63 3.29 5.37 Net income (loss) per common share – diluted Net income (loss) (millions of Canadian dollars) 675 2,409 1,923 3,582 Weighted average number of common shares outstanding (millions of shares) 584.2 663.0 584.2 666.7 Effect of employee share-based awards (millions of shares) 1.1 1.4 1.1 1.4 Weighted-average number of common shares outstanding, assuming dilution (millions of shares) 585.3 664.4 585.3 668.1 Net income (loss) per common share (dollars) 1.15 3.63 3.29 5.36 Dividends per common share – declared (dollars) 0.50 0.34 0.94 0.68 |
Other comprehensive income (l_2
Other comprehensive income (loss) information (Tables) | 6 Months Ended |
Jun. 30, 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 20 42 Balance at June 30 (471) (1,111) |
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): Second Quarter Six Months to June 30 millions of Canadian dollars 2023 2022 2023 2022 Amortization of postretirement benefits liability adjustment included in net benefit cost (a) (13) (27) (26) (55) (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): Second Quarter Six Months to June 30 millions of Canadian dollars 2023 2022 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 6 6 13 Total 3 6 13 21 |
Business Segments (Detail)
Business Segments (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | ||
Revenues and other income | ||||||
Revenues | [1] | $ 11,764 | $ 17,285 | $ 23,821 | $ 29,942 | |
Investment and other income (note 3) | 55 | 22 | 119 | 51 | ||
Total revenues and other income | 11,819 | 17,307 | 23,940 | 29,993 | ||
Expenses | ||||||
Exploration | 1 | 1 | 2 | 3 | ||
Purchases of crude oil and products | [2] | 7,856 | 11,021 | 15,334 | 19,371 | |
Production and manufacturing | [3] | 1,785 | 1,908 | 3,541 | 3,567 | |
Selling and general | [3] | 206 | 191 | 392 | 416 | |
Federal excise tax and fuel charge | 598 | 553 | 1,127 | 1,032 | ||
Depreciation and depletion | 453 | 451 | 943 | 877 | ||
Non-service pension and postretirement benefit | 20 | 5 | 40 | 9 | ||
Financing (note 5) | [4] | 16 | 11 | 32 | 18 | |
Total expenses | 10,935 | 14,141 | 21,411 | 25,293 | ||
Income (loss) before income taxes | 884 | 3,166 | 2,529 | 4,700 | ||
Income taxes | 209 | 757 | 606 | 1,118 | ||
Net income (loss) | 675 | 2,409 | 1,923 | 3,582 | ||
Cash flows from (used in) operating activities | 885 | 2,682 | 64 | 4,596 | ||
Capital and exploration expenditures | 493 | 314 | 922 | 610 | ||
Total assets as at June 30 | 42,126 | 44,892 | 42,126 | 44,892 | $ 43,524 | |
Corporate and other | ||||||
Revenues and other income | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Investment and other income (note 3) | 30 | 10 | 72 | 14 | ||
Total revenues and other income | 30 | 10 | 72 | 14 | ||
Expenses | ||||||
Exploration | 0 | 0 | 0 | 0 | ||
Purchases of crude oil and products | 0 | 0 | 0 | 0 | ||
Production and manufacturing | 0 | 0 | 0 | 0 | ||
Selling and general | 25 | 18 | 29 | 74 | ||
Federal excise tax and fuel charge | 0 | 0 | 0 | 0 | ||
Depreciation and depletion | 7 | 7 | 14 | 14 | ||
Non-service pension and postretirement benefit | 20 | 5 | 40 | 9 | ||
Financing (note 5) | 16 | 10 | 32 | 17 | ||
Total expenses | 68 | 40 | 115 | 114 | ||
Income (loss) before income taxes | (38) | (30) | (43) | (100) | ||
Income taxes | (8) | (7) | (8) | (23) | ||
Net income (loss) | (30) | (23) | (35) | (77) | ||
Cash flows from (used in) operating activities | 29 | (110) | 57 | (85) | ||
Capital and exploration expenditures | 33 | 10 | 63 | 15 | ||
Total assets as at June 30 | 3,915 | 4,016 | 3,915 | 4,016 | ||
Eliminations | ||||||
Revenues and other income | ||||||
Revenues | (4,973) | (8,000) | (10,509) | (14,368) | ||
Total revenues and other income | (4,973) | (8,000) | (10,509) | (14,368) | ||
Expenses | ||||||
Exploration | 0 | 0 | 0 | 0 | ||
Purchases of crude oil and products | (4,972) | (7,998) | (10,507) | (14,365) | ||
Production and manufacturing | 0 | 0 | 0 | 0 | ||
Selling and general | (1) | (2) | (2) | (3) | ||
Federal excise tax and fuel charge | 0 | 0 | 0 | 0 | ||
Depreciation and depletion | 0 | 0 | 0 | 0 | ||
Non-service pension and postretirement benefit | 0 | 0 | 0 | 0 | ||
Financing (note 5) | 0 | 0 | 0 | 0 | ||
Total expenses | (4,973) | (8,000) | (10,509) | (14,368) | ||
Income (loss) before income taxes | 0 | 0 | 0 | 0 | ||
Income taxes | 0 | 0 | 0 | 0 | ||
Net income (loss) | 0 | 0 | 0 | 0 | ||
Cash flows from (used in) operating activities | 0 | 0 | 0 | 0 | ||
Capital and exploration expenditures | 0 | 0 | 0 | 0 | ||
Total assets as at June 30 | (503) | (239) | (503) | (239) | ||
Upstream | ||||||
Revenues and other income | ||||||
Revenues | 61 | 119 | 137 | 218 | ||
Investment and other income (note 3) | 10 | 3 | 12 | 7 | ||
Expenses | ||||||
Exploration | 1 | 1 | 2 | 3 | ||
Purchases of crude oil and products | 1,432 | 2,357 | 2,975 | 4,247 | ||
Production and manufacturing | 1,256 | 1,423 | 2,543 | 2,672 | ||
Selling and general | 0 | 0 | 0 | 0 | ||
Federal excise tax and fuel charge | 0 | 0 | 0 | 0 | ||
Depreciation and depletion | 398 | 395 | 832 | 768 | ||
Non-service pension and postretirement benefit | 0 | 0 | 0 | 0 | ||
Financing (note 5) | 0 | 1 | 0 | 1 | ||
Total expenses | 3,087 | 4,177 | 6,352 | 7,691 | ||
Income (loss) before income taxes | 503 | 1,772 | 938 | 2,792 | ||
Income taxes | 119 | 426 | 224 | 664 | ||
Net income (loss) | 384 | 1,346 | 714 | 2,128 | ||
Cash flows from (used in) operating activities | 573 | 2,087 | 175 | 3,534 | ||
Capital and exploration expenditures | 303 | 233 | 624 | 455 | ||
Total assets as at June 30 | 28,603 | 28,961 | 28,603 | 28,961 | ||
Upstream | Intersegment Eliminations | ||||||
Revenues and other income | ||||||
Revenues | 3,519 | 5,827 | 7,141 | 10,258 | ||
Upstream | Operating Segments | ||||||
Revenues and other income | ||||||
Total revenues and other income | 3,590 | 5,949 | 7,290 | 10,483 | ||
Downstream | ||||||
Revenues and other income | ||||||
Revenues | 11,355 | 16,752 | 22,994 | 28,943 | ||
Investment and other income (note 3) | 15 | 9 | 35 | 30 | ||
Expenses | ||||||
Exploration | 0 | 0 | 0 | 0 | ||
Purchases of crude oil and products | 11,133 | 16,261 | 22,329 | 28,773 | ||
Production and manufacturing | 475 | 418 | 886 | 774 | ||
Selling and general | 160 | 153 | 317 | 300 | ||
Federal excise tax and fuel charge | 597 | 553 | 1,125 | 1,032 | ||
Depreciation and depletion | 44 | 45 | 89 | 86 | ||
Non-service pension and postretirement benefit | 0 | 0 | 0 | 0 | ||
Financing (note 5) | 0 | 0 | 0 | 0 | ||
Total expenses | 12,409 | 17,430 | 24,746 | 30,965 | ||
Income (loss) before income taxes | 326 | 1,355 | 1,471 | 1,865 | ||
Income taxes | 76 | 322 | 351 | 443 | ||
Net income (loss) | 250 | 1,033 | 1,120 | 1,422 | ||
Cash flows from (used in) operating activities | 228 | 641 | (191) | 1,016 | ||
Capital and exploration expenditures | 152 | 69 | 226 | 137 | ||
Total assets as at June 30 | 9,629 | 11,649 | 9,629 | 11,649 | ||
Downstream | Intersegment Eliminations | ||||||
Revenues and other income | ||||||
Revenues | 1,365 | 2,024 | 3,188 | 3,857 | ||
Downstream | Operating Segments | ||||||
Revenues and other income | ||||||
Total revenues and other income | 12,735 | 18,785 | 26,217 | 32,830 | ||
Chemical | ||||||
Revenues and other income | ||||||
Revenues | 348 | 414 | 690 | 781 | ||
Investment and other income (note 3) | 0 | 0 | 0 | 0 | ||
Expenses | ||||||
Exploration | 0 | 0 | 0 | 0 | ||
Purchases of crude oil and products | 263 | 401 | 537 | 716 | ||
Production and manufacturing | 54 | 67 | 112 | 121 | ||
Selling and general | 22 | 22 | 48 | 45 | ||
Federal excise tax and fuel charge | 1 | 0 | 2 | 0 | ||
Depreciation and depletion | 4 | 4 | 8 | 9 | ||
Non-service pension and postretirement benefit | 0 | 0 | 0 | 0 | ||
Financing (note 5) | 0 | 0 | 0 | 0 | ||
Total expenses | 344 | 494 | 707 | 891 | ||
Income (loss) before income taxes | 93 | 69 | 163 | 143 | ||
Income taxes | 22 | 16 | 39 | 34 | ||
Net income (loss) | 71 | 53 | 124 | 109 | ||
Cash flows from (used in) operating activities | 55 | 64 | 23 | 131 | ||
Capital and exploration expenditures | 5 | 2 | 9 | 3 | ||
Total assets as at June 30 | 482 | 505 | 482 | 505 | ||
Chemical | Intersegment Eliminations | ||||||
Revenues and other income | ||||||
Revenues | 89 | 149 | 180 | 253 | ||
Chemical | Operating Segments | ||||||
Revenues and other income | ||||||
Total revenues and other income | $ 437 | $ 563 | $ 870 | $ 1,034 | ||
[1] (a) Amounts from related parties included in revenues. 3,556 5,175 6,692 9,134 (b) Amounts to related parties included in purchases of crude oil and products. 964 1,129 2,042 1,779 (c) Amounts to related parties included in production and manufacturing, 125 116 260 234 (d) Amounts to related parties included in financing. 41 13 80 17 |
Business Segments - Table Narra
Business Segments - Table Narrative (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Segment Reporting Information [Line Items] | |||||
Revenue from contracts with customers | $ 10,922 | $ 15,871 | $ 21,442 | $ 26,735 | |
Revenue outside the scope of ASC 606 | 842 | 1,414 | 2,379 | 3,207 | |
Revenues Including Federal Excise Tax | [1] | 11,764 | 17,285 | 23,821 | 29,942 |
United States Exports | |||||
Segment Reporting Information [Line Items] | |||||
Operating revenues | $ 2,034 | $ 3,871 | $ 4,409 | $ 6,375 | |
[1] (a) Amounts from related parties included in revenues. 3,556 5,175 6,692 9,134 |
Investment and other income - G
Investment and other income - Gains and Losses on Asset Sales (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Investments [Abstract] | ||||
Proceeds from asset sales | $ 9 | $ 8 | $ 23 | $ 32 |
Book value of asset sales | (4) | 4 | 1 | 8 |
Gain (loss) on asset sales, before tax | 13 | 4 | 22 | 24 |
Gain (loss) on asset sales, after tax | $ 10 | $ 3 | $ 18 | $ 19 |
Employee retirement benefits -
Employee retirement benefits - Components of Net Periodic Benefit Cost (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pension benefits: | ||||
Service cost | $ 40 | $ 70 | $ 81 | $ 140 |
Interest cost | 93 | 74 | 186 | 147 |
Expected return on plan assets | (93) | (103) | (186) | (206) |
Amortization of prior service cost | 4 | 4 | 8 | 8 |
Amortization of actuarial loss (gain) | 11 | 21 | 22 | 43 |
Net benefit cost | 55 | 66 | 111 | 132 |
Other postretirement benefits: | ||||
Service cost | 3 | 5 | 6 | 11 |
Interest cost | 7 | 6 | 14 | 12 |
Amortization of actuarial loss (gain) | (2) | 3 | (4) | 5 |
Net benefit cost | $ 8 | $ 14 | $ 16 | $ 28 |
Financing costs (Detail)
Financing costs (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Financing costs and additional notes and loans payable information [Abstract] | |||||
Debt-related interest | $ 49 | $ 20 | $ 95 | $ 32 | |
Capitalized interest | (33) | (10) | (63) | (15) | |
Net interest expense | 16 | 10 | 32 | 17 | |
Other interest | 0 | 1 | 0 | 1 | |
Total financing | [1] | $ 16 | $ 11 | $ 32 | $ 18 |
[1] (d) Amounts to related parties included in financing. 41 13 80 17 |
Long-term debt (Detail)
Long-term debt (Detail) - CAD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |||
Long-term debt | $ 3,447 | $ 3,447 | |
Finance leases | 575 | 586 | |
Total long-term debt | [1] | $ 4,022 | $ 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 | Jun. 30, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Employee retirement benefits | $ 875 | $ 902 |
Asset retirement obligations and other environmental liabilities | 2,165 | 2,150 |
Share-based incentive compensation liabilities | 107 | 101 |
Operating lease liability | 127 | 151 |
Other obligations | 144 | 163 |
Total other long-term obligations | $ 3,418 | $ 3,467 |
Other long-term obligations - T
Other long-term obligations - Table Narrative (Detail) - CAD ($) $ in Millions | Jun. 30, 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 | 60 | 14 |
Accounts Payable and Accrued Liabilities | ||
Schedule of Other Liabilities [Line Items] | ||
Lease liability due within one year, Operating leases | $ 106 | $ 100 |
Financial and derivative inst_3
Financial and derivative instruments - Narrative (Detail) - CAD ($) $ in Millions | Jun. 30, 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 | $ 8 | $ 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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Crude | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, volume | 8,040 | 1,800 |
Products | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, volume | 670 | 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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Revenues | $ 10 | $ (51) | $ (13) | $ (14) |
Financial and derivative inst_6
Financial and derivative instruments - Summary of estimated fair value of financial instruments (Detail) - CAD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Derivative Asset | $ 42 | $ 49 |
Liabilities | ||
Derivative liabilities | 39 | 41 |
Effect of counterparty netting | ||
Assets | ||
Derivative Asset | (11) | (27) |
Liabilities | ||
Derivative liabilities | (11) | (27) |
Effect of collateral netting | ||
Assets | ||
Derivative Asset | 0 | 0 |
Liabilities | ||
Derivative liabilities | (2) | (4) |
Net carrying value | ||
Assets | ||
Derivative Asset | 31 | 22 |
Liabilities | ||
Derivative liabilities | 26 | 10 |
Level 1 | ||
Assets | ||
Derivative Asset | 11 | 17 |
Liabilities | ||
Derivative liabilities | 13 | 21 |
Level 2 | ||
Assets | ||
Derivative Asset | 31 | 32 |
Liabilities | ||
Derivative liabilities | 26 | 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 | Jun. 30, 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 - Narrative (Deta
Common shares - Narrative (Detail) - shares | Jun. 29, 2023 | Jun. 15, 2023 |
Class of Stock [Line Items] | ||
Normal course issuer bid share repurchase term, months | 12 months | |
Normal Course Issuer Bid Effective From June Twenty Ninth Two Thousand And Twenty Three | ||
Class of Stock [Line Items] | ||
Normal course issuer bid share repurchase shares authorized | 29,207,635 | |
Normal Course Issuer Bid Effective From June Twenty Ninth Two Thousand And Twenty Three | Exxon Mobil Corporation | ||
Class of Stock [Line Items] | ||
Percent of total shares | 5% | |
Exxon Mobil Corporation's ownership interest in Imperial | 69.60% |
Common shares - Common Share Ac
Common shares - Common Share Activities (Detail) - CAD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 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 | 584,153 | |||
Common stock beginning balance | [1] | $ 1,079 | ||||
Common stock, ending balance | [1] | $ 1,079 | $ 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 | 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 | $ (60) | 0 | $ (75) | (173) | |
Common stock, ending balance | $ 1,079 | $ 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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net income (loss) per common share – basic | ||||
Net income (loss) | $ 675 | $ 2,409 | $ 1,923 | $ 3,582 |
Weighted average number of common shares outstanding (millions of shares) | 584.2 | 663 | 584.2 | 666.7 |
Net income (loss) per common share (dollars) | $ 1.16 | $ 3.63 | $ 3.29 | $ 5.37 |
Net income (loss) per common share – diluted | ||||
Net income (loss) | $ 675 | $ 2,409 | $ 1,923 | $ 3,582 |
Weighted average number of common shares outstanding (millions of shares) | 584.2 | 663 | 584.2 | 666.7 |
Effect of employee share-based awards (millions of shares) | 1.1 | 1.4 | 1.1 | 1.4 |
Weighted-average number of common shares outstanding, assuming dilution (millions of shares) | 585.3 | 664.4 | 585.3 | 668.1 |
Net income (loss) per common share (dollars) | $ 1.15 | $ 3.63 | $ 3.29 | $ 5.36 |
Dividends per common share – declared (dollars) | $ 0.50 | $ 0.34 | $ 0.94 | $ 0.68 |
Other comprehensive income (l_3
Other comprehensive income (loss) information - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at January 1 | $ (512) | |
Balance at June 30 | (471) | |
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 | 20 | 42 |
Balance at June 30 | $ (471) | $ (1,111) |
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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 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) | $ (27) | $ (26) | $ (55) |
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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Equity [Abstract] | ||||
Postretirement benefits liability adjustment (excluding amortization) | $ 0 | $ 0 | $ 7 | $ 8 |
Amortization of postretirement benefits liability adjustment included in net benefit cost | 3 | 6 | 6 | 13 |
Total | $ 3 | $ 6 | $ 13 | $ 21 |