Quarterly Report (10-q)
03 Août 2022 - 07:47PM
Edgar (US Regulatory)
Q20000049938--12-31falseYesYesfalsefalseCAhttp://www.imperialoil.ca/20220630#LongTermDebtAndFinanceLeaseObligationshttp://www.imperialoil.ca/20220630#LongTermDebtAndFinanceLeaseObligationsIncluded
contributions to registered pension plans.(46) (42) (96) (70)
Income taxes (paid) refunded. (52) 27 (275 ) 28 Interest (paid),
net of capitalization.(10) (14) (22) (27)Number of common shares
authorized and outstanding were 1,100 million and 637 million,
respectively (2021 - 1,100 million and 678 million,
respectively).Accounts receivable - net included net amounts
receivable from related parties of $1,888 million (2021 - $1,031
million).Long-term debt included amounts to related parties of
$4,447 million (2021 - $4,447 million). Amounts from related
parties included in revenues.5,175 1,405 9,134 2,913Amounts to
related parties included in production and manufacturing, and
selling and general expenses.116 106 234 222Amounts to related
parties included in purchases of crude oil and products.1,129 666
1,779 1,181Investments and long-term receivables included amounts
from related parties of $296 million (2021 - $298 million).Cash is
composed of cash in bank and cash equivalents at cost. Cash
equivalents are all highly liquid securities with maturity of three
months or less when purchased.Includes approximately 11% related to
revenue outside the scope of ASC 606 “Revenue from Contracts with
Customers” for the six months ended June 30, 2022. Trade
receivables in Accounts receivable – net reported on the 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. Credit quality
and type of customer are generally similar between those revenues
and receivables within the scope of ASC 606 and those outside it.
Included export sales to the United States of $6,375 million (2021
- $3,113 million).Included export sales to the United States of
$3,871 million (2021 - $1,544 million).Includes approximately 13%
related to revenue outside the scope of ASC 606 “Revenue from
Contracts with Customers” for the three months ended June 30, 2022.
Trade receivables in Accounts receivable – net reported on the
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. Credit quality
and type of customer are generally similar between those revenues
and receivables within the scope of ASC 606 and those outside it.
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.Total recorded
employee retirement benefits obligations also included $56 million
in current liabilities (2021 - $56 million).Total asset retirement
obligations and other environmental liabilities also included $102
million in current liabilities (2021 - $102 million).This
accumulated other comprehensive income component is included in the
computation of net benefit cost (note 4).Total operating lease
liability also included $86 million in current liabilities (2021 -
$102 million). In addition to the total operating lease liability,
additional undiscounted commitments for leases not yet commenced
totalled $11 million (2021 - $5 million).Amounts to related parties
included in financing (note 5).13 10 17 21Included in the
Consolidated balance sheet line: “Materials, supplies and prepaid
expenses”, “Accounts receivable - net” and “Other assets, including
intangibles - net”.Included in the Consolidated balance sheet line:
“Accounts payable and accrued liabilities” and “Other long-term
obligations”. 0000049938 2022-01-01 2022-06-30 0000049938
2022-04-01 2022-06-30 0000049938 2021-04-01 2021-06-30 0000049938
2021-01-01 2021-06-30 0000049938 2021-12-31 0000049938 2022-06-30
0000049938 2021-06-29 0000049938 2021-06-30 0000049938 2021-01-01
2021-12-31 0000049938 2021-06-29 2021-06-29 0000049938 2021-06-15
2021-06-15 0000049938 2022-05-06 2022-05-06 0000049938 2020-12-31
0000049938 2022-03-31 0000049938 2021-03-31 0000049938
us-gaap:CorporateAndOtherMember 2021-01-01 2021-06-30 0000049938
srt:ConsolidationEliminationsMember 2021-01-01 2021-06-30
0000049938 imo:UpstreamMember 2021-01-01 2021-06-30 0000049938
imo:DownstreamMember 2021-01-01 2021-06-30 0000049938
imo:ChemicalMember 2021-01-01 2021-06-30 0000049938
imo:AccumulatedDefinedBenefitPlansAdjustmentBeforeTaxMember
2021-01-01 2021-06-30 0000049938 country:US 2021-01-01 2021-06-30
0000049938 us-gaap:RetainedEarningsMember 2021-01-01 2021-06-30
0000049938 us-gaap:CommonStockMember 2021-01-01 2021-06-30
0000049938 us-gaap:AccumulatedOtherComprehensiveIncomeMember
2021-01-01 2021-06-30 0000049938
us-gaap:PensionPlansDefinedBenefitMember 2021-01-01 2021-06-30
0000049938
us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember
2021-01-01 2021-06-30 0000049938 imo:UpstreamMember 2021-04-01
2021-06-30 0000049938 imo:DownstreamMember 2021-04-01 2021-06-30
0000049938 imo:ChemicalMember 2021-04-01 2021-06-30 0000049938
us-gaap:CorporateAndOtherMember 2021-04-01 2021-06-30 0000049938
srt:ConsolidationEliminationsMember 2021-04-01 2021-06-30
0000049938
imo:AccumulatedDefinedBenefitPlansAdjustmentBeforeTaxMember
2021-04-01 2021-06-30 0000049938 country:US 2021-04-01 2021-06-30
0000049938 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30
0000049938 us-gaap:CommonStockMember 2021-04-01 2021-06-30
0000049938 us-gaap:AccumulatedOtherComprehensiveIncomeMember
2021-04-01 2021-06-30 0000049938
us-gaap:PensionPlansDefinedBenefitMember 2021-04-01 2021-06-30
0000049938
us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember
2021-04-01 2021-06-30 0000049938 us-gaap:CorporateAndOtherMember
2022-01-01 2022-06-30 0000049938
srt:ConsolidationEliminationsMember 2022-01-01 2022-06-30
0000049938 imo:UpstreamMember 2022-01-01 2022-06-30 0000049938
imo:DownstreamMember 2022-01-01 2022-06-30 0000049938
imo:ChemicalMember 2022-01-01 2022-06-30 0000049938
imo:AccumulatedDefinedBenefitPlansAdjustmentBeforeTaxMember
2022-01-01 2022-06-30 0000049938 us-gaap:CommonStockMember
2022-01-01 2022-06-30 0000049938 country:US 2022-01-01 2022-06-30
0000049938 us-gaap:RetainedEarningsMember 2022-01-01 2022-06-30
0000049938 us-gaap:AccumulatedOtherComprehensiveIncomeMember
2022-01-01 2022-06-30 0000049938
us-gaap:PensionPlansDefinedBenefitMember 2022-01-01 2022-06-30
0000049938
us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember
2022-01-01 2022-06-30 0000049938 imo:ProductsBarrelsMember
2022-01-01 2022-06-30 0000049938 imo:CrudeBarrelsMember 2022-01-01
2022-06-30 0000049938 imo:AmendmentToLongTermLinesOfCreditMember
imo:LineOfCreditFacilityDueJuneTwoThousandAndTwentyThreeMember
imo:AmendedLineOfCreditFacilityForTwoHundredAndFiftyMillionDollarsOneMember
2022-01-01 2022-06-30 0000049938
imo:AmendmentToLongTermLinesOfCreditMember
imo:LineOfCreditFacilityDueJuneTwoThousandAndTwentyFourMember
imo:AmendedLineOfCreditFacilityForTwoHundredAndFiftyMillionDollarsTwoMember
2022-01-01 2022-06-30 0000049938 imo:XtoEnergyCanadaMember
2022-01-01 2022-06-30 0000049938 imo:UpstreamMember 2022-04-01
2022-06-30 0000049938 imo:DownstreamMember 2022-04-01 2022-06-30
0000049938 imo:ChemicalMember 2022-04-01 2022-06-30 0000049938
us-gaap:CorporateAndOtherMember 2022-04-01 2022-06-30 0000049938
srt:ConsolidationEliminationsMember 2022-04-01 2022-06-30
0000049938
imo:AccumulatedDefinedBenefitPlansAdjustmentBeforeTaxMember
2022-04-01 2022-06-30 0000049938 country:US 2022-04-01 2022-06-30
0000049938 us-gaap:RetainedEarningsMember 2022-04-01 2022-06-30
0000049938 us-gaap:CommonStockMember 2022-04-01 2022-06-30
0000049938 us-gaap:AccumulatedOtherComprehensiveIncomeMember
2022-04-01 2022-06-30 0000049938
us-gaap:PensionPlansDefinedBenefitMember 2022-04-01 2022-06-30
0000049938
us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember
2022-04-01 2022-06-30 0000049938
imo:InvestmentsAndLongTermReceivablesMember 2021-12-31 0000049938
imo:NoncurrentLiabilitiesMember 2021-12-31 0000049938
imo:MasterNettingArrangementsMember 2021-12-31 0000049938
imo:NetCarryingValueMember 2021-12-31 0000049938
imo:DerivativeFairValueOfDerivativeAmountEffectOfCollateralNettingMember
2021-12-31 0000049938
imo:DerivativeFairValueOfDerivativeAmountEffectOfCounterPartyNettingMember
2021-12-31 0000049938 us-gaap:FairValueInputsLevel3Member
2021-12-31 0000049938 us-gaap:FairValueInputsLevel2Member
2021-12-31 0000049938 us-gaap:FairValueInputsLevel1Member
2021-12-31 0000049938
us-gaap:AccountsPayableAndAccruedLiabilitiesMember 2021-12-31
0000049938 imo:InvestmentsAndLongTermReceivablesMember 2022-06-30
0000049938 imo:NoncurrentLiabilitiesMember 2022-06-30 0000049938
imo:UpstreamMember 2022-06-30 0000049938 imo:DownstreamMember
2022-06-30 0000049938 imo:ChemicalMember 2022-06-30 0000049938
us-gaap:CorporateAndOtherMember 2022-06-30 0000049938
srt:ConsolidationEliminationsMember 2022-06-30 0000049938
imo:MasterNettingArrangementsMember 2022-06-30 0000049938
imo:NetCarryingValueMember 2022-06-30 0000049938
imo:DerivativeFairValueOfDerivativeAmountEffectOfCollateralNettingMember
2022-06-30 0000049938
imo:DerivativeFairValueOfDerivativeAmountEffectOfCounterPartyNettingMember
2022-06-30 0000049938 us-gaap:FairValueInputsLevel3Member
2022-06-30 0000049938 us-gaap:FairValueInputsLevel2Member
2022-06-30 0000049938 us-gaap:FairValueInputsLevel1Member
2022-06-30 0000049938
us-gaap:AccountsPayableAndAccruedLiabilitiesMember 2022-06-30
0000049938 imo:AmendmentToLongTermLinesOfCreditMember
imo:LineOfCreditFacilityDueJuneTwoThousandAndTwentyThreeMember
2022-06-30 0000049938 imo:AmendmentToLongTermLinesOfCreditMember
imo:LineOfCreditFacilityDueJuneTwoThousandAndTwentyThreeMember
imo:AmendedLineOfCreditFacilityForTwoHundredAndFiftyMillionDollarsOneMember
2022-06-30 0000049938 imo:AmendmentToLongTermLinesOfCreditMember
imo:LineOfCreditFacilityDueJuneTwoThousandAndTwentyFourMember
imo:AmendedLineOfCreditFacilityForTwoHundredAndFiftyMillionDollarsTwoMember
2022-06-30 0000049938 imo:AmendmentToLongTermLinesOfCreditMember
2022-06-30 0000049938 imo:WhiteCapIncMember
imo:XtoEnergyCanadaMember imo:ExxonMobilCanadaMember 2022-06-30
0000049938 imo:CompaniesShareMember imo:XtoEnergyCanadaMember
imo:WhiteCapIncMember 2022-06-30 0000049938
imo:XtoEnergyCanadaMember imo:ExxonMobilCanadaMember 2022-06-30
0000049938 imo:UpstreamMember 2021-06-30 0000049938
imo:DownstreamMember 2021-06-30 0000049938 imo:ChemicalMember
2021-06-30 0000049938 us-gaap:CorporateAndOtherMember 2021-06-30
0000049938 srt:ConsolidationEliminationsMember 2021-06-30
0000049938 us-gaap:CommonStockMember 2021-01-01 2021-12-31
0000049938 imo:ProductsBarrelsMember 2021-01-01 2021-12-31
0000049938 imo:CrudeBarrelsMember 2021-01-01 2021-12-31 0000049938
imo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember
imo:ExonnMobileCorporationMember 2021-06-29 0000049938
imo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember
imo:ExonnMobileCorporationMember 2022-06-15 0000049938
imo:XtoEnergyCanadaMember imo:WhiteCapIncMember
srt:ScenarioForecastMember imo:CompaniesShareMember 2022-07-01
2022-09-30 0000049938
imo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember
2022-06-29 0000049938
imo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember
2022-06-29 2022-06-29 0000049938 imo:ExonnMobileCorporationMember
imo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember
2022-06-29 2022-06-29 0000049938
imo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember
2022-06-15 2022-06-15 0000049938 imo:ExonnMobileCorporationMember
imo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember
2022-06-15 2022-06-15 0000049938 imo:ExonnMobileCorporationMember
imo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember
2022-05-02 0000049938
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31
0000049938 us-gaap:RetainedEarningsMember 2020-12-31 0000049938
us-gaap:CommonStockMember 2020-12-31 0000049938
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30
0000049938 us-gaap:RetainedEarningsMember 2021-06-30 0000049938
us-gaap:CommonStockMember 2021-06-30 0000049938
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31
0000049938 us-gaap:RetainedEarningsMember 2021-03-31 0000049938
us-gaap:CommonStockMember 2021-03-31 0000049938
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31
0000049938 us-gaap:RetainedEarningsMember 2021-12-31 0000049938
us-gaap:CommonStockMember 2021-12-31 0000049938
us-gaap:CommonStockMember 2022-06-30 0000049938
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-06-30
0000049938 us-gaap:RetainedEarningsMember 2022-06-30 0000049938
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-03-31
0000049938 us-gaap:RetainedEarningsMember 2022-03-31 0000049938
us-gaap:CommonStockMember 2022-03-31 iso4217:CAD xbrli:shares
xbrli:pure utr:bbl utr:Month iso4217:USD iso4217:CAD
xbrli:shares
SECURITIES AND
EXCHANGE COMMISSION
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly
period ended June 30, 2022
TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
to
Commission file number
0-12014
(Exact name of registrant as specified in its charter)
|
|
|
|
|
|
|
|
(State or other jurisdiction
|
|
(I.R.S. Employer |
|
of incorporation or organization)
|
|
Identification No.) |
|
|
505 Quarry Park
Boulevard S.E. Calgary, Alberta, Canada
|
|
|
|
(Address of principal executive offices)
|
|
(Postal
Code) |
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the
Act:
|
|
|
|
|
|
Title of each class
|
|
Trading symbol |
|
Name of each exchange on
which registered
|
|
None
|
|
|
|
None |
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted
electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation
S-T
(§ 232.405 of this chapter) during the preceding 12 months (or for
such shorter period that the registrant was required to submit such
files).
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a
non-accelerated
filer, smaller reporting company, or an emerging growth company.
See the definition of “large accelerated filer”, “accelerated
filer”, “smaller reporting company” and “emerging growth company”
in Rule
12b-2
of the Exchange Act of 1934.
|
|
|
|
|
|
|
|
|
|
|
|
Smaller reporting company
|
|
|
|
|
|
|
|
Emerging growth company
|
|
|
|
Accelerated filer
|
|
|
|
|
|
|
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange
Act.
Indicate by check mark whether the registrant is a shell company
(as defined in Rule
12b-2
of the Exchange Act of 1934).
The number of common
shares outstanding, as of June 30, 2022 was 636,676,182.
In this report all dollar amounts are expressed in Canadian dollars
unless otherwise stated. This report should be read in conjunction
with the company’s annual report on Form
10-K
for the year ended December 31, 2021. Note that numbers may
not add due to rounding.
The term “project” as used in this report can refer to a variety of
different activities and does not necessarily have the same meaning
as in any government payment transparency reports.
In this report, unless the context otherwise indicates, reference
to “the company” or “Imperial” includes Imperial Oil Limited and
its subsidiaries.
2
PART I. FINANCIAL
INFORMATION
Item 1. Financial statements
Consolidated statement of income (U.S. GAAP, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
|
|
|
|
|
Second Quarter
|
|
|
to June 30
|
|
millions of Canadian dollars
|
|
|
|
|
2021
|
|
|
|
|
|
2021
|
|
Revenues and other income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,007 |
|
|
|
|
|
|
|
14,999 |
|
Investment and other income
(note 3)
|
|
|
|
|
|
|
40 |
|
|
|
|
|
|
|
46 |
|
Total revenues and
other income
|
|
|
|
|
|
|
8,047 |
|
|
|
|
|
|
|
15,045 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
4 |
|
Purchases of crude oil and products
(b)
|
|
|
|
|
|
|
4,867 |
|
|
|
|
|
|
|
8,754 |
|
Production and manufacturing
(c)
|
|
|
|
|
|
|
1,569 |
|
|
|
|
|
|
|
3,054 |
|
|
|
|
|
|
|
|
|
200 |
|
|
|
|
|
|
|
389 |
|
|
Federal excise tax and fuel charge
|
|
|
|
|
|
|
465 |
|
|
|
|
|
|
|
869 |
|
|
Depreciation and depletion
|
|
|
|
|
|
|
450 |
|
|
|
|
|
|
|
944 |
|
Non-service
pension and postretirement benefit
|
|
|
|
|
|
|
10 |
|
|
|
|
|
|
|
21 |
|
|
|
|
|
|
|
|
|
13 |
|
|
|
|
|
|
|
27 |
|
|
|
|
|
|
|
|
|
7,576 |
|
|
|
|
|
|
|
14,062 |
|
| |
|
|
|
|
Income (loss) before
income taxes
|
|
|
|
|
|
|
471 |
|
|
|
|
|
|
|
983 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
105 |
|
|
|
|
|
|
|
225 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
366 |
|
|
|
|
|
|
|
758 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share - basic
(note 9)
|
|
|
|
|
|
|
0.51 |
|
|
|
|
|
|
|
1.04 |
|
Net income (loss) per common share - diluted
(note 9)
|
|
|
|
|
|
|
0.50 |
|
|
|
|
|
|
|
1.04 |
|
|
(a) Amounts from related parties included in revenues.
|
|
|
|
|
|
|
1,405 |
|
|
|
|
|
|
|
2,913 |
|
|
(b) Amounts to related parties included in purchases of crude oil
and products.
|
|
|
|
|
|
|
666 |
|
|
|
|
|
|
|
1,181 |
|
|
(c) Amounts to related parties included in production and
manufacturing, and selling and general expenses.
|
|
|
|
|
|
|
106 |
|
|
|
|
|
|
|
222 |
|
|
(d) Amounts to related parties included in financing (note
5).
|
|
|
|
|
|
|
10 |
|
|
|
|
|
|
|
21 |
|
The information in the notes to consolidated financial statements
is an integral part of these statements.
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated statement of comprehensive income (U.S. GAAP,
unaudited)
|
|
|
|
|
|
|
|
Six
Months
|
|
|
|
|
Second Quarter
|
|
|
to
June 30
|
|
millions of Canadian dollars
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
366 |
|
|
|
|
|
|
|
758 |
|
| |
|
|
|
|
|
Other comprehensive income (loss), net of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postretirement benefits liability adjustment (excluding
amortization)
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
54 |
|
| |
|
|
|
|
|
Amortization of postretirement benefits liability adjustment
included in net benefit costs
|
|
|
|
|
|
|
33 |
|
|
|
|
|
|
|
66 |
|
Total other
comprehensive income (loss)
|
|
|
|
|
|
|
33 |
|
|
|
|
|
|
|
120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
|
|
|
|
|
|
399 |
|
|
|
|
|
|
|
878 |
|
The information in the notes to consolidated financial statements
is an integral part of these statements.
4
Consolidated balance sheet (U.S. GAAP, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
at
|
|
|
|
As
at
|
|
|
|
|
|
June 30
|
|
|
|
Dec
31
|
|
millions of Canadian dollars
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
|
|
|
|
|
2,153 |
|
Accounts receivable - net
(a)
|
|
|
|
|
|
|
3,869 |
|
|
Inventories of crude oil and products
|
|
|
|
|
|
|
1,102 |
|
|
Materials, supplies and prepaid expenses
|
|
|
|
|
|
|
689 |
|
|
Total current assets
|
|
|
|
|
|
|
7,813 |
|
Investments and long-term receivables
(b)
|
|
|
|
|
|
|
757 |
|
|
Property, plant and equipment,
|
|
|
|
|
|
|
56,762 |
|
|
less accumulated depreciation and depletion
|
|
|
|
|
|
|
(25,522 |
) |
Property, plant and equipment, net
(note 11)
|
|
|
|
|
|
|
31,240 |
|
|
Goodwill
|
|
|
|
|
|
|
166 |
|
|
Other assets, including intangibles - net
|
|
|
|
|
|
|
806 |
|
|
|
|
|
|
|
|
|
40,782 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
Notes and loans payable
|
|
|
|
|
|
|
122 |
|
Accounts payable and accrued liabilities
(a) (note 7)
|
|
|
|
|
|
|
5,184 |
|
|
Income taxes payable
|
|
|
|
|
|
|
248 |
|
|
Total current liabilities
|
|
|
|
|
|
|
5,554 |
|
Long-term debt
(c) (note 6)
|
|
|
|
|
|
|
5,054 |
|
Other long-term obligations
(note 7)
|
|
|
|
|
|
|
3,897 |
|
|
Deferred income tax liabilities
|
|
|
|
|
|
|
4,542 |
|
|
|
|
|
|
|
|
|
19,047 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Common shares at stated value
(d) (note 9)
|
|
|
|
|
|
|
1,252 |
|
|
Earnings reinvested
|
|
|
|
|
|
|
21,660 |
|
Accumulated other comprehensive income (loss)
(note 10)
|
|
|
|
|
|
|
(1,177 |
) |
Total shareholders’
equity
|
|
|
|
|
|
|
21,735 |
|
| |
|
|
Total liabilities and
shareholders’ equity
|
|
|
|
|
|
|
40,782 |
|
| (a) |
Accounts receivable - net included net amounts receivable from
related parties of $1,888 million (2021 - $1,031
million).
|
| (b) |
Investments and long-term receivables included amounts from related
parties of $296 million (2021 - $298 million).
|
| (c) |
Long-term debt included amounts to related parties of
$4,447 million (2021 - $4,447 million).
|
| (d) |
Number of common shares authorized and outstanding were
1,100 million and 637 million, respectively (2021 -
1,100 million and 678 million, respectively).
|
The information in the notes to consolidated financial statements
is an integral part of these statements.
5
Consolidated statement of shareholders’ equity (U.S. GAAP,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
|
|
|
|
|
|
Second Quarter
|
|
|
|
to
June 30
|
|
millions of Canadian dollars
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
2021
|
|
Common shares at
stated value
(note 9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At beginning of period
|
|
|
|
|
|
|
1,357 |
|
|
|
|
|
|
|
1,357 |
|
|
Share purchases at stated value
|
|
|
|
|
|
|
(55 |
) |
|
|
|
|
|
|
(55 |
) |
|
At end of period
|
|
|
|
|
|
|
1,302 |
|
|
|
|
|
|
|
1,302 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At beginning of period
|
|
|
|
|
|
|
22,281 |
|
|
|
|
|
|
|
22,050 |
|
|
Net income (loss) for the period
|
|
|
|
|
|
|
366 |
|
|
|
|
|
|
|
758 |
|
|
Share purchases in excess of stated value
|
|
|
|
|
|
|
(1,116 |
) |
|
|
|
|
|
|
(1,116 |
) |
|
Dividends declared
|
|
|
|
|
|
|
(195 |
) |
|
|
|
|
|
|
(356 |
) |
|
At end of period
|
|
|
|
|
|
|
21,336 |
|
|
|
|
|
|
|
21,336 |
|
| |
|
|
|
|
Accumulated other
comprehensive income (loss)
(note 10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At beginning of period
|
|
|
|
|
|
|
(1,902 |
) |
|
|
|
|
|
|
(1,989 |
) |
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
33 |
|
|
|
|
|
|
|
120 |
|
|
At end of period
|
|
|
|
|
|
|
(1,869 |
) |
|
|
|
|
|
|
(1,869 |
) |
| |
|
|
|
|
Shareholders’ equity
at end of period
|
|
|
|
|
|
|
20,769 |
|
|
|
|
|
|
|
20,769 |
|
The information in the notes to consolidated financial statements
is an integral part of these statements.
6
Consolidated statement of cash flows (U.S. GAAP,
unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
|
|
|
|
|
|
Six Months
|
|
|
|
|
|
Second Quarter
|
|
|
|
to June 30
|
|
millions of Canadian dollars
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
|
|
366 |
|
|
|
|
|
|
|
758 |
|
Adjustments for
non-cash
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and depletion
|
|
|
|
|
|
|
450 |
|
|
|
|
|
|
|
944 |
|
(Gain) loss on asset sales
(note 3)
|
|
|
|
|
|
|
(24 |
) |
|
|
|
|
|
|
(27 |
) |
|
Deferred income taxes and other
|
|
|
|
|
|
|
76 |
|
|
|
|
|
|
|
136 |
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
|
|
(775 |
) |
|
|
|
|
|
|
(1,244 |
) |
|
Inventories, materials, supplies and prepaid expenses
|
|
|
|
|
|
|
58 |
|
|
|
|
|
|
|
(101 |
) |
|
Income taxes payable
|
|
|
|
|
|
|
21 |
|
|
|
|
|
|
|
42 |
|
|
Accounts payable and accrued liabilities
|
|
|
|
|
|
|
655 |
|
|
|
|
|
|
|
1,239 |
|
All other items - net
(c)
|
|
|
|
|
|
|
25 |
|
|
|
|
|
|
|
150 |
|
Cash flows from (used
in) operating activities
|
|
|
|
|
|
|
852 |
|
|
|
|
|
|
|
1,897 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment
|
|
|
|
|
|
|
(241 |
) |
|
|
|
|
|
|
(408 |
) |
Proceeds from asset sales
(note 3) (b)
|
|
|
|
|
|
|
35 |
|
|
|
|
|
|
|
42 |
|
|
Loans to equity companies - net
|
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
12 |
|
Cash flows from (used
in) investing activities
|
|
|
|
|
|
|
(207 |
) |
|
|
|
|
|
|
(354 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt - net
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
(36 |
) |
Reduction in finance lease obligations
(note 6)
|
|
|
|
|
|
|
(4 |
) |
|
|
|
|
|
|
(8 |
) |
|
Dividends paid
|
|
|
|
|
|
|
(161 |
) |
|
|
|
|
|
|
(323 |
) |
Common shares purchased
(note 9)
|
|
|
|
|
|
|
(1,171 |
) |
|
|
|
|
|
|
(1,171 |
) |
Cash flows from (used
in) financing activities
|
|
|
|
|
|
|
(1,336 |
) |
|
|
|
|
|
|
(1,538 |
) |
| |
|
|
|
|
Increase (decrease)
in cash
|
|
|
|
|
|
|
(691 |
) |
|
|
|
|
|
|
5 |
|
Cash at beginning of
period
|
|
|
|
|
|
|
1,467 |
|
|
|
|
|
|
|
771 |
|
|
|
|
|
|
|
|
|
776 |
|
|
|
|
|
|
|
776 |
|
|
(a) Cash is composed of cash in bank and cash equivalents at cost.
Cash equivalents are all highly liquid securities with maturity of
three months or less when purchased.
|
|
|
|
|
|
|
|
|
|
|
(b) Included $94 million deposit for the potential sale of XTO
Energy Canada (note 11).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) Included contributions to registered pension plans.
|
|
|
|
|
|
|
(42 |
) |
|
|
|
|
|
|
(70 |
) |
| |
|
|
|
|
|
Income taxes (paid) refunded.
|
|
|
|
|
|
|
27 |
|
|
|
|
|
|
|
28 |
|
|
Interest (paid), net of capitalization.
|
|
|
|
|
|
|
(14 |
) |
|
|
|
|
|
|
(27 |
) |
The information in the notes to consolidated financial statements
is an integral part of these statements.
7
Notes to consolidated financial statements (unaudited)
|
|
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 2021 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, 2022, are not
necessarily indicative of the operations to be expected for the
full year.
All amounts are in Canadian dollars unless otherwise
indicated.
8
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
|
|
Downstream
|
|
|
|
Chemical
|
|
millions of Canadian dollars
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
2021
|
|
Revenues and other income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,616 |
|
|
|
|
|
|
|
5,015 |
|
|
|
|
|
|
|
376 |
|
|
Intersegment sales
|
|
|
|
|
|
|
1,312 |
|
|
|
|
|
|
|
788 |
|
|
|
|
|
|
|
79 |
|
Investment and other income
(note 3)
|
|
|
|
|
|
|
6 |
|
|
|
|
|
|
|
28 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
3,934 |
|
|
|
|
|
|
|
5,831 |
|
|
|
|
|
|
|
456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
Purchases of crude oil and products
|
|
|
|
|
|
|
2,044 |
|
|
|
|
|
|
|
4,760 |
|
|
|
|
|
|
|
240 |
|
|
Production and manufacturing
|
|
|
|
|
|
|
1,166 |
|
|
|
|
|
|
|
357 |
|
|
|
|
|
|
|
46 |
|
|
Selling and general
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
142 |
|
|
|
|
|
|
|
22 |
|
|
Federal excise tax and fuel charge
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
465 |
|
|
|
|
|
|
|
- |
|
|
Depreciation and depletion
|
|
|
|
|
|
|
399 |
|
|
|
|
|
|
|
39 |
|
|
|
|
|
|
|
5 |
|
Non-service
pension and postretirement benefit
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
3,611 |
|
|
|
|
|
|
|
5,763 |
|
|
|
|
|
|
|
313 |
|
Income (loss) before
income taxes
|
|
|
|
|
|
|
323 |
|
|
|
|
|
|
|
68 |
|
|
|
|
|
|
|
143 |
|
Income tax expense
(benefit)
|
|
|
|
|
|
|
76 |
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
34 |
|
|
|
|
|
|
|
|
|
247 |
|
|
|
|
|
|
|
60 |
|
|
|
|
|
|
|
109 |
|
Cash flows from (used
in) operating activities
|
|
|
|
|
|
|
595 |
|
|
|
|
|
|
|
136 |
|
|
|
|
|
|
|
111 |
|
Capital and
exploration expenditures
(c)
|
|
|
|
|
|
|
130 |
|
|
|
|
|
|
|
120 |
|
|
|
|
|
|
|
2 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
|
|
|
Corporate and other
|
|
|
|
Eliminations
|
|
|
|
Consolidated
|
|
|
millions of Canadian dollars
|
|
|
|
|
|
|
2021 |
|
|
|
|
|
|
|
2021 |
|
|
|
|
|
|
|
2021 |
|
Revenues and other
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
8,007 |
|
|
Intersegment sales
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
(2,179 |
) |
|
|
|
|
|
|
- |
|
Investment and other income
(note 3)
|
|
|
|
|
|
|
5 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
40 |
|
|
|
|
|
|
|
|
|
5 |
|
|
|
|
|
|
|
(2,179 |
) |
|
|
|
|
|
|
8,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
2 |
|
|
Purchases of crude oil and products
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
(2,177 |
) |
|
|
|
|
|
|
4,867 |
|
|
Production and manufacturing
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
1,569 |
|
|
Selling and general
|
|
|
|
|
|
|
38 |
|
|
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
200 |
|
|
Federal excise tax and fuel charge
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
465 |
|
|
Depreciation and depletion
|
|
|
|
|
|
|
7 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
450 |
|
|
Non-service pension and postretirement benefit
|
|
|
|
|
|
|
10 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
10 |
|
|
|
|
|
|
|
|
|
13 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
13 |
|
|
|
|
|
|
|
|
|
68 |
|
|
|
|
|
|
|
(2,179 |
) |
|
|
|
|
|
|
7,576 |
|
Income (loss) before
income taxes
|
|
|
|
|
|
|
(63 |
) |
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
471 |
|
Income tax expense
(benefit)
|
|
|
|
|
|
|
(13 |
) |
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
105 |
|
|
|
|
|
|
|
|
|
(50 |
) |
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
366 |
|
Cash flows from (used
in) operating activities
|
|
|
|
|
|
|
10 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
852 |
|
Capital and
exploration expenditures
(c)
|
|
|
|
|
|
|
7 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
259 |
|
9
| (a) |
Included export sales to the United States of $3,871 million
(2021 - $1,544 million).
|
| (b) |
Includes approximately 13% related to revenue outside the scope of
ASC 606 “Revenue from Contracts with Customers” for the three
months ended June 30, 2022. Trade receivables in Accounts
receivable – net reported on the 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
. Credit
quality and type of customer are generally similar
between
those revenues and receivables within the scope of ASC 606
and those outside it
. |
| (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.
|
10
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
|
|
Downstream
|
|
|
|
Chemical
|
|
millions of Canadian dollars
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
2021
|
|
Revenues and other income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,758 |
|
|
|
|
|
|
|
9,542 |
|
|
|
|
|
|
|
699 |
|
|
Intersegment sales
|
|
|
|
|
|
|
2,663 |
|
|
|
|
|
|
|
1,561 |
|
|
|
|
|
|
|
132 |
|
Investment and other income
(note 3)
|
|
|
|
|
|
|
6 |
|
|
|
|
|
|
|
33 |
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
7,427 |
|
|
|
|
|
|
|
11,136 |
|
|
|
|
|
|
|
832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration
|
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
Purchases of crude oil and products
|
|
|
|
|
|
|
3,878 |
|
|
|
|
|
|
|
8,780 |
|
|
|
|
|
|
|
449 |
|
|
Production and manufacturing
|
|
|
|
|
|
|
2,275 |
|
|
|
|
|
|
|
683 |
|
|
|
|
|
|
|
96 |
|
|
Selling and general
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
275 |
|
|
|
|
|
|
|
47 |
|
|
Federal excise tax and fuel charge
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
869 |
|
|
|
|
|
|
|
- |
|
|
Depreciation and depletion
|
|
|
|
|
|
|
844 |
|
|
|
|
|
|
|
78 |
|
|
|
|
|
|
|
9 |
|
|
Non-service pension and postretirement benefit
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
7,002 |
|
|
|
|
|
|
|
10,685 |
|
|
|
|
|
|
|
601 |
|
Income (loss) before
income taxes
|
|
|
|
|
|
|
425 |
|
|
|
|
|
|
|
451 |
|
|
|
|
|
|
|
231 |
|
Income tax expense
(benefit)
|
|
|
|
|
|
|
99 |
|
|
|
|
|
|
|
99 |
|
|
|
|
|
|
|
55 |
|
|
|
|
|
|
|
|
|
326 |
|
|
|
|
|
|
|
352 |
|
|
|
|
|
|
|
176 |
|
Cash flows from (used
in) operating activities
|
|
|
|
|
|
|
1,126 |
|
|
|
|
|
|
|
598 |
|
|
|
|
|
|
|
173 |
|
Capital and
exploration expenditures
(c)
|
|
|
|
|
|
|
215 |
|
|
|
|
|
|
|
188 |
|
|
|
|
|
|
|
4 |
|
Total assets as at
June 30
|
|
|
|
|
|
|
31,931 |
|
|
|
|
|
|
|
5,352 |
|
|
|
|
|
|
|
481 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and other
|
|
|
|
Eliminations
|
|
|
|
Consolidated
|
|
millions of Canadian dollars
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
2021
|
|
Revenues and other income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
14,999 |
|
|
Intersegment sales
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
(4,356 |
) |
|
|
|
|
|
|
- |
|
Investment and other income
(note 3)
|
|
|
|
|
|
|
6 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
46 |
|
|
|
|
|
|
|
|
|
6 |
|
|
|
|
|
|
|
(4,356 |
) |
|
|
|
|
|
|
15,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
4 |
|
|
Purchases of crude oil and products
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
(4,353 |
) |
|
|
|
|
|
|
8,754 |
|
|
Production and manufacturing
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
3,054 |
|
|
Selling and general
|
|
|
|
|
|
|
70 |
|
|
|
|
|
|
|
(3 |
) |
|
|
|
|
|
|
389 |
|
|
Federal excise tax and fuel charge
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
869 |
|
|
Depreciation and depletion
|
|
|
|
|
|
|
13 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
944 |
|
|
Non-service pension and postretirement benefit
|
|
|
|
|
|
|
21 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
21 |
|
|
|
|
|
|
|
|
|
26 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
27 |
|
|
|
|
|
|
|
|
|
130 |
|
|
|
|
|
|
|
(4,356 |
) |
|
|
|
|
|
|
14,062 |
|
Income (loss) before
income taxes
|
|
|
|
|
|
|
(124 |
) |
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
983 |
|
Income tax expense
(benefit)
|
|
|
|
|
|
|
(28 |
) |
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
225 |
|
|
|
|
|
|
|
|
|
(96 |
) |
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
758 |
|
Cash flows from (used
in) operating activities
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
1,897 |
|
Capital and
exploration expenditures
(c)
|
|
|
|
|
|
|
15 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
422 |
|
Total
assets as at June 30
(note 11)
|
|
|
|
|
|
|
1,606 |
|
|
|
|
|
|
|
(431 |
) |
|
|
|
|
|
|
38,939 |
|
| (a) |
Included export sales to the United States of $6,375 million
(2021 - $3,113 million).
|
| (b) |
Includes approximately 11% related to revenue outside the scope of
ASC 606 “Revenue from Contracts with Customers” for the six months
ended June 30, 2022. Trade receivables in Accounts receivable
– net reported on the 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
. Credit
quality and type of customer are generally similar
between
those revenues and receivables within the scope of ASC 606
and those outside it
. |
| (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.
|
12
|
|
Investment and other
income
|
Investment and other income included gains and losses on asset
sales as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
|
|
|
|
|
millions of Canadian dollars
|
|
|
|
|
2021
|
|
|
|
|
|
2021
|
|
|
Proceeds from asset sales
|
|
|
|
|
|
|
35 |
|
|
|
|
|
|
|
42 |
|
|
Book value of asset sales
|
|
|
|
|
|
|
11 |
|
|
|
|
|
|
|
15 |
|
|
Gain (loss) on asset sales, before tax
|
|
|
|
|
|
|
24 |
|
|
|
|
|
|
|
27 |
|
|
Gain (loss) on asset sales, after tax
|
|
|
|
|
|
|
22 |
|
|
|
|
|
|
|
24 |
|
|
|
Employee retirement benefits
|
The components of net benefit cost were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
|
|
|
|
|
millions of Canadian dollars
|
|
|
|
|
2021
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost
|
|
|
|
|
|
|
81 |
|
|
|
|
|
|
|
162 |
|
|
Interest cost
|
|
|
|
|
|
|
68 |
|
|
|
|
|
|
|
136 |
|
|
Expected return on plan assets
|
|
|
|
|
|
|
(107) |
|
|
|
|
|
|
|
(214) |
|
|
Amortization of prior service cost
|
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
8 |
|
|
Amortization of actuarial loss (gain)
|
|
|
|
|
|
|
36 |
|
|
|
|
|
|
|
72 |
|
|
Net benefit cost
|
|
|
|
|
|
|
82 |
|
|
|
|
|
|
|
164 |
|
| |
|
|
|
|
|
Other postretirement benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost
|
|
|
|
|
|
|
7 |
|
|
|
|
|
|
|
14 |
|
|
Interest cost
|
|
|
|
|
|
|
5 |
|
|
|
|
|
|
|
11 |
|
|
Amortization of actuarial loss (gain)
|
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
8 |
|
|
Net benefit cost
|
|
|
|
|
|
|
16 |
|
|
|
|
|
|
|
33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
|
|
|
|
|
|
millions of Canadian dollars
|
|
|
|
|
2021
|
|
|
|
|
|
2021
|
|
|
Debt-related interest
|
|
|
|
|
|
|
20 |
|
|
|
|
|
|
|
41 |
|
|
Capitalized interest
|
|
|
|
|
|
|
(7) |
|
|
|
|
|
|
|
(15) |
|
|
Net interest expense
|
|
|
|
|
|
|
13 |
|
|
|
|
|
|
|
26 |
|
|
Other interest
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
1 |
|
|
Total financing
|
|
|
|
|
|
|
13 |
|
|
|
|
|
|
|
27 |
|
In June 2022, the company reduced its existing $500 million
committed long-term line of credit to $250 million and
extended the maturity date to June 30, 2023. The company also
extended one of its $250 million committed long-term lines of
credit to June 30, 2024. The company has not drawn on any of its
outstanding $750 million of available credit facilities.
13
|
|
|
|
|
|
|
|
|
|
| |
|
As
at
June 30 |
|
|
As
at
Dec 31 |
|
|
millions of Canadian dollars
|
|
|
|
|
2021 |
|
|
Long-term debt
|
|
|
|
|
|
|
4,447 |
|
|
|
|
|
|
|
|
|
|
|
|
Total long-term debt
|
|
|
|
|
|
|
5,054 |
|
|
|
Other long-term
obligations
|
|
|
|
|
|
|
|
|
|
|
| |
|
As
at
June 30 |
|
|
As
at
Dec 31 |
|
|
millions of Canadian dollars
|
|
|
|
|
2021 |
|
Employee retirement benefits
(a)
|
|
|
|
|
|
|
1,362 |
|
Asset retirement obligations and other environmental
liabilities
(b)
|
|
|
|
|
|
|
1,713 |
|
|
Share-based incentive compensation liabilities
|
|
|
|
|
|
|
79 |
|
Operating lease liability
(c)
|
|
|
|
|
|
|
147 |
|
|
Other obligations
|
|
|
|
|
|
|
596 |
|
|
Total other long-term obligations
|
|
|
|
|
|
|
3,897 |
|
| (a) |
Total recorded employee retirement benefits obligations also
included $56 million in current liabilities (2021 - $56
million).
|
| (b) |
Total asset retirement obligations and other environmental
liabilities also included $102 million in current liabilities
(2021 - $102 million).
|
| (c) |
Total operating lease liability also included $86 million in
current liabilities (2021 - $102 million). In addition to the total
operating lease liability, additional undiscounted commitments for
leases not yet commenced totalled $11 million (2021 - $5
million).
|
14
|
|
Financial and
derivative 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, 2022 and December 31, 2021,
the fair value of long-term debt ($4,447 million, excluding
finance lease obligations) was primarily a level 2
measurement.
The company’s size, strong capital structure and the complementary
nature of the Upstream, Downstream and Chemical businesses 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 derivative instruments 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
|
|
|
|
|
2021 |
|
|
Crude
|
|
|
|
|
|
|
7,390 |
|
|
Products
|
|
|
|
|
|
|
(560 |
) |
Realized and unrealized gain or (loss)
on derivative instruments recognized in the Consolidated statement
of income is included in the following lines on a
before-tax
basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
|
|
|
|
|
|
Six Months
to June 30
|
|
millions of Canadian dollars
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
|
2021
|
|
|
Revenues
|
|
|
|
|
|
|
(9 |
) |
|
|
|
|
|
|
|
|
|
|
(9 |
) |
|
Purchases of crude oil and products
|
|
|
|
|
|
|
(19 |
) |
|
|
|
|
|
|
|
|
|
|
(33 |
) |
|
Total
|
|
|
|
|
|
|
(28 |
) |
|
|
|
|
|
|
|
|
|
|
(42 |
) |
15
The estimated fair value of derivative instruments, and the related
hierarchy level for the fair value measurement is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At June 30, 2022
|
|
millions of Canadian dollars
|
|
|
|
Fair value |
|
|
Effect of |
|
|
Effect of |
|
|
Net |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
counterparty |
|
|
collateral |
|
|
carrying |
|
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|
netting |
|
|
netting |
|
|
value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) |
Included in the Consolidated balance sheet line: “Materials,
supplies and prepaid expenses”, “Accounts receivable - net” and
“Other assets, including intangibles - net”.
|
| (b) |
Included in the Consolidated balance sheet line: “Accounts payable
and accrued liabilities” and “Other long-term obligations”.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2021
|
|
|
millions of Canadian dollars
|
|
|
|
|
Fair value |
|
|
Effect of |
|
|
Effect of |
|
|
Net |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
counterparty |
|
|
collateral |
|
|
carrying |
|
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|
netting |
|
|
netting |
|
|
value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24 |
|
|
|
17 |
|
|
|
- |
|
|
|
41 |
|
|
|
(31 |
) |
|
|
- |
|
|
|
10 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities
(b)
|
|
|
31 |
|
|
|
12 |
|
|
|
- |
|
|
|
43 |
|
|
|
(31 |
) |
|
|
(7 |
) |
|
|
5 |
|
|
(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, 2022 and December 31, 2021, the company had
$16 million and $6 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.
16
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
As of
|
|
|
|
|
June 30
|
|
|
Dec
31
|
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
Authorized
|
|
|
|
|
|
|
1,100,000 |
|
|
Common shares outstanding
|
|
|
|
|
|
|
678,080 |
|
The
12-month
normal course issuer bid program that was in place during the first
quarter of 2022 came into effect June 29, 2021. The program
enabled the company to purchase up to a maximum of 35,583,671
common shares (5 percent of the total shares on June 15,
2021), which included shares purchased under the normal course
issuer bid and from Exxon Mobil Corporation concurrent with, but
outside of the normal course issuer bid. As in the past, Exxon
Mobil Corporation participated to maintain its ownership percentage
at approximately 69.6 percent. The program completed on
January 31, 2022 as a result of the company purchasing the
maximum allowable number of shares under the program.
The current
12-month
normal course issuer bid program came into effect June 29,
2022 under which Imperial will continue its existing share purchase
program. The program enables the company to purchase up to a
maximum of 31,833,809 common shares (5 percent of the total shares
on June 15, 2022) which 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 by the end
of October 2022. Purchase plans may be modified at any time without
prior notice.
On May 6, 2022, the company commenced a substantial issuer bid
pursuant to which it offered to purchase for cancellation up to
$2.5 billion of its common shares through a modified Dutch
auction and proportionate tender offer. The substantial issuer bid
was completed on June 15, 2022, with the company taking up and
paying for 32,467,532 common shares at a price of $77.00 per share,
for an aggregate purchase of $2.5 billion and 4.9 percent
of Imperial’s issued and outstanding shares as the close of
business on May 2, 2022. This included 22,597,379 shares
purchased from Exxon Mobil Corporation by way of a proportionate
tender to maintain its ownership percentage at approximately
69.6 percent.
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
shares
|
|
|
Millions of
dollars
|
|
|
Balance as at December 31, 2020
|
|
|
734,077 |
|
|
|
1,357 |
|
|
Issued under employee share-based awards
|
|
|
7 |
|
|
|
- |
|
|
Purchases at stated value
|
|
|
(56,004 |
) |
|
|
(105 |
) |
|
Balance as at December 31, 2021
|
|
|
678,080 |
|
|
|
1,252 |
|
|
Issued under employee share-based awards
|
|
|
- |
|
|
|
- |
|
|
Purchases at stated value
|
|
|
(41,404 |
) |
|
|
(75 |
) |
Balance as at
June 30, 2022
|
|
|
|
|
|
|
|
|
17
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
Six
Months
|
|
| |
|
|
Second Quarter
|
|
|
|
to
June 30
|
|
|
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
2021
|
|
Net income (loss) per common share - basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
(millions of Canadian dollars)
|
|
|
|
|
|
|
366 |
|
|
|
|
|
|
|
758 |
|
Weighted average number of common shares outstanding
(millions of shares)
|
|
|
|
|
|
|
724.1 |
|
|
|
|
|
|
|
729.1 |
|
Net income (loss) per common share
(dollars)
|
|
|
|
|
|
|
0.51 |
|
|
|
|
|
|
|
1.04 |
|
Net income (loss) per
common share - diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
(millions of Canadian dollars)
|
|
|
|
|
|
|
366 |
|
|
|
|
|
|
|
758 |
|
Weighted average number of common shares outstanding
(millions of shares)
|
|
|
|
|
|
|
724.1 |
|
|
|
|
|
|
|
729.1 |
|
Effect of employee share-based awards
(millions of shares)
|
|
|
|
|
|
|
1.7 |
|
|
|
|
|
|
|
1.7 |
|
Weighted average number of common shares outstanding, assuming
dilution
(millions of shares)
|
|
|
|
|
|
|
725.8 |
|
|
|
|
|
|
|
730.8 |
|
Net income (loss) per common share
(dollars)
|
|
|
|
|
|
|
0.50 |
|
|
|
|
|
|
|
1.04 |
|
Dividends per common
share - declared
(dollars)
|
|
|
|
|
|
|
0.27 |
|
|
|
|
|
|
|
0.49 |
|
18
10. Other
comprehensive income (loss) information
Changes in accumulated other comprehensive income
(loss):
|
|
|
|
|
|
|
|
|
millions of Canadian dollars
|
|
|
|
|
|
|
2021
|
|
|
Balance at January 1
|
|
|
|
|
|
|
(1,989 |
) |
|
Postretirement benefits liability adjustment:
|
|
|
|
|
|
|
|
|
|
Current period change excluding amounts reclassified from
accumulated other comprehensive income
|
|
|
|
|
|
|
54 |
|
|
Amounts reclassified from accumulated other comprehensive
income
|
|
|
|
|
|
|
66 |
|
|
Balance at June 30
|
|
|
|
|
|
|
(1,869 |
) |
Amounts
reclassified out of accumulated other comprehensive income (loss) -
before-tax
income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Six
Months
|
|
| |
|
|
Second Quarter
|
|
|
|
to June 30
|
|
millions of Canadian dollars
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
2021
|
|
Amortization of postretirement benefits liability adjustment
included in net benefit cost
(a)
|
|
|
|
|
|
|
(44) |
|
|
|
|
|
|
|
(88) |
|
(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):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Six
Months
|
|
| |
|
|
Second Quarter
|
|
|
|
to June 30
|
|
millions of Canadian dollars
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
2021
|
|
Postretirement benefits liability adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postretirement benefits liability adjustment (excluding
amortization)
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
17 |
|
|
Amortization of postretirement benefits liability adjustment
included in net benefit cost
|
|
|
|
|
|
|
11 |
|
|
|
|
|
|
|
22 |
|
| |
|
|
|
|
|
Total
|
|
|
|
|
|
|
11 |
|
|
|
|
|
|
|
39 |
|
11. Divestment
activities
Jointly with ExxonMobil Canada, Imperial signed an agreement in the
second quarter with Whitecap Resources Inc. for the sale of its
interests in XTO Energy Canada which include assets in the Montney
and Duvernay areas of central Alberta, for approximately
$1.9 billion ($0.9 billion Imperial’s share), subject to
working capital and other adjustments. The transaction is expected
to close prior to the end of the third quarter of 2022, subject to
regulatory approvals. Imperial’s net assets held for sale
associated with this transaction include about $0.9 billion of
total assets (about $0.8 billion of property, plant and
equipment) and about $0.1 billion total liabilities in the
Upstream segment. The company estimates that total cash flow from
the divestment will be approximately $0.9 billion, and expects to
recognize a gain at closing of approximately $0.2 billion.
Estimated gain and net cash flow could change due to market
factors, working capital adjustments, tax impacts and closing
dates.
19
|
|
Management’s discussion and analysis of financial condition and
results of operations
|
Non-GAAP
financial measures and other specified financial measures
Certain measures included in this document are not prescribed by
U.S. Generally Accepted Accounting Principles (GAAP). These
measures constitute
“non-GAAP
financial measures” under Securities and Exchange Commission
Regulation G, and “specified financial measures” under National
Instrument
52-112
Non-GAAP
and Other Financial Measures Disclosure
of the Canadian Securities Administrators.
Reconciliation of these
non-GAAP
financial measures to the most comparable GAAP measure, and other
information required by these regulations, have been provided.
Non-GAAP
financial measures and specified financial measures are not
standardized financial measures under GAAP and do not have a
standardized definition. As such, these measures may not be
directly comparable to measures presented by other companies, and
should not be considered a substitute for GAAP financial
measures.
Net income (loss) excluding identified items
Net income (loss) excluding identified items is a
non-GAAP
financial measure that is total net income (loss) excluding
individually significant
non-operational
events with an absolute corporate total earnings impact of at least
$100 million in a given quarter. The net income (loss) impact
of an identified item for an individual segment in a given quarter
may be less than $100 million when the item impacts several
segments or several periods. The most directly comparable financial
measure that is disclosed in the financial statements is net income
(loss) within the company’s Consolidated statement of income.
Management uses these figures to improve comparability of the
underlying business across multiple periods by isolating and
removing significant
non-operational
events from business results. The company believes this view
provides investors increased transparency into business results and
trends, and provides investors with a view of the business as seen
through the eyes of management. Net income (loss) excluding
identified items is not meant to be viewed in isolation or as a
substitute for net income (loss) as prepared in accordance with
U.S. GAAP. All identified items are presented on an
after-tax
basis.
Reconciliation of net income (loss) excluding identified
items
There were no identified items in the second quarter or
2022 and 2021.
Current business environment
During the
COVID-19
pandemic, industry investment to maintain and increase production
capacity was restrained to preserve capital, resulting in
underinvestment and supply tightness as demand for petroleum and
petrochemical products recovered. Across late 2021 and the first
half of 2022, this dynamic, along with supply chain constraints and
a continuation of demand recovery, led to a steady increase in oil
and natural gas prices and refining margins. In the first half of
2022, tightness in the oil and natural gas markets was further
exacerbated by Russia’s invasion of Ukraine and subsequent
sanctions imposed upon business and other activities in Russia. The
price of crude oil and certain regional natural gas indicators
increased to levels not seen for several years. By the end of the
second quarter, high prices had led to a tempering of demand for
some products. Commodity and product prices are expected to remain
volatile given the current global economic and geopolitical
uncertainty affecting supply and demand.
Second quarter 2022 vs. second quarter 2021
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
millions of Canadian dollars, unless noted
|
|
|
|
|
|
|
2021 |
|
Net income (loss) (U.S. GAAP)
|
|
|
|
|
|
|
366 |
|
Net income (loss) per common share, assuming dilution
(dollars)
|
|
|
|
|
|
|
0.50 |
|
Net income (loss) factor analysis
millions of Canadian dollars
Price – Higher realizations were generally in line with increases
in marker prices, driven primarily by increased demand and supply
chain constraints. Average bitumen realizations increased by $55.01
per barrel generally in line with WCS, and synthetic crude oil
realizations increased by $63.87 per barrel generally in line with
WTI.
Volumes – Higher volumes primarily driven by the timing of
turnaround activities at Syncrude, partially offset by downtime at
Kearl.
Royalty – Higher royalties primarily driven by improved commodity
prices.
Other – Includes higher operating expenses of about $180 million,
primarily higher energy prices, partially offset by favourable
foreign exchange impacts of about $60 million.
Marker prices and average realizations
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
Canadian dollars, unless noted
|
|
|
|
|
|
|
2021 |
|
West Texas Intermediate (US$ per barrel)
|
|
|
|
|
|
|
66.17 |
|
Western Canada Select (US$ per barrel)
|
|
|
|
|
|
|
54.64 |
|
WTI/WCS Spread (US$ per barrel)
|
|
|
|
|
|
|
11.53 |
|
|
|
|
|
|
|
|
|
57.26 |
|
Synthetic crude oil
(per barrel)
|
|
|
|
|
|
|
80.80 |
|
Average foreign exchange rate (US$)
|
|
|
|
|
|
|
0.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
thousands of barrels per day
|
|
|
|
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
181 |
|
|
|
|
|
|
|
|
|
142 |
|
|
|
|
|
|
|
|
|
47 |
|
|
|
|
|
|
|
|
|
|
|
Kearl total gross production
(thousands of barrels per day)
|
|
|
|
|
|
|
255 |
|
(a) In the second quarter of 2022, Syncrude gross production
included about 2 thousand barrels per day of bitumen (2021 -
rounded to 0 thousand barrels per day) that was exported to the
operator’s facilities using an existing interconnect
pipeline.
Lower production at Kearl was primarily a result of downtime.
Higher production at Syncrude was primarily a result of the timing
of turnaround activities.
Net income (loss) factor analysis
millions of Canadian dollars
Margins – Higher margins primarily reflect improved market
conditions.
Other – Includes lower turnaround impacts of about $130 million,
reflecting the absence of turnaround activities at Strathcona
refinery, partially offset by higher operating expenses of about
$70 million, primarily higher energy costs.
|
|
|
|
|
|
|
|
|
Refinery utilization
and petroleum product sales
|
|
| |
|
|
Second Quarter |
|
thousands of barrels per day, unless noted
|
|
|
|
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
332 |
|
Refinery capacity utilization
(percent)
|
|
|
|
|
|
|
78 |
|
|
|
|
|
|
|
|
|
429 |
|
Improved refinery throughput in the second quarter of 2022 was
primarily driven by reduced turnaround activity and increased
demand.
Improved petroleum product sales in the second quarter of 2022 were
mainly due to increased demand.
Net income (loss) factor analysis
millions of Canadian dollars
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
millions of Canadian dollars
|
|
|
|
|
|
|
2021 |
|
Net income (loss) (U.S. GAAP)
|
|
|
|
|
|
|
(50) |
|
Liquidity and capital resources
| |
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
millions of Canadian dollars
|
|
|
|
|
|
|
2021 |
|
Cash flow generated from (used in):
|
|
|
|
|
|
|
|
|
|
|
|
|
|