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What changed in IMPERIAL OIL LTD's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of IMPERIAL OIL LTD's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+154 added−146 removedSource: 10-K (2026-02-18) vs 10-K (2025-02-19)

Top changes in IMPERIAL OIL LTD's 2025 10-K

154 paragraphs added · 146 removed · 130 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

56 edited+6 added−7 removed82 unchanged
Biggest changeAs at December 31, 2024 there were no proved undeveloped reserves that have remained undeveloped for five years or more. One of the company’s requirements to report resources as proved reserves is that management has made significant funding commitments towards the development of the reserves.
Biggest changeThe decrease of 127 million oil-equivalent barrels of proved undeveloped reserves is attributed to first ore extraction from Syncrude's Mildred Lake Extension - West (MLX-W) and to Cold Lake drilling start-ups, partially offset by full funding of Cold Lake drilling. As at December 31, 2025 there were no proved undeveloped reserves that have remained undeveloped for five years or more.
(b) Gross production is the company’s share of production (excluding purchases) before deduction of the mineral owners’ or governments’ share or both. (c) Net production is gross production less the mineral owners’ or governments’ share or both.
(b) Gross production is the company’s share of production (excluding purchases) before deduction of the mineral owners’ or governments’ share or both. (c) Net production is gross production less the mineral owners’ or governments’ share or both.
Certain industry participants, including Imperial, are expanding investments in lower-emission energy and emission-reduction services and technologies. 18 Government regulations Petroleum, natural gas and oil sands rights Most of the company’s petroleum, natural gas and oil sands rights were acquired from governments, either federal or provincial.
Certain industry participants, including Imperial, are expanding the scope of investments in lower-emission energy and emission-reduction services and technologies. 18 Government regulations Petroleum, natural gas and oil sands rights Most of the company’s petroleum, natural gas and oil sands rights were acquired from governments, either federal or provincial.
(d) The company’s synthetic crude oil production volumes were from the company’s share of production volumes in the Syncrude joint venture and include immaterial amounts of bitumen and other products exported to the operator's facilities using an existing interconnect pipeline. (e) Liquids include crude oil, condensate and NGLs.
(d) The company’s synthetic crude oil production volumes were from the company’s share of production volumes in the Syncrude joint venture and include immaterial amounts of bitumen and other products exported to the operator's facilities using an existing interconnect pipeline. (e) Liquids include crude oil and NGLs.
Operating data and financial information about the company’s business segments are contained in this report under the following: "Management’s discussion and analysis of financial condition and results of operations" and the "Financial section" under note 2 to the consolidated financial statements: "Business segments". 6 Upstream Disclosure of reserves Summary of oil and gas reserves at year-end The table below summarizes the net proved reserves for the company, as at December 31, 2024, as detailed in the "Supplemental information on oil and gas exploration and production activities" in the "Financial section" of this report.
Operating data and financial information about the company’s business segments are contained in this report under the following: "Management’s discussion and analysis of financial condition and results of operations" and the "Financial section" under note 2 to the consolidated financial statements: "Business segments". 6 Upstream Disclosure of reserves Summary of oil and gas reserves at year-end The table below summarizes the net proved reserves for the company, as at December 31, 2025, as detailed in the "Supplemental information on oil and gas exploration and production activities" in the "Financial section" of this report.
(b) Refining capacity data is based on 100 percent of rated refinery process unit stream-day capacities to process inputs to atmospheric distillation units under normal operating conditions, less the impact of shutdowns for regular repair and maintenance activities, averaged over an extended period of time. 2024 Lower refinery throughput in 2024 reflected the impact of planned turnaround activities at Nanticoke, Sarnia and Strathcona refineries. 2023 Lower refinery throughput in 2023 primarily reflected the impact of planned turnaround activities at Strathcona and Sarnia refineries.
(b) Refining capacity data is based on 100 percent of rated refinery process unit stream-day capacities to process inputs to atmospheric distillation units under normal operating conditions, less the impact of shutdowns for regular repair and maintenance activities, averaged over an extended period of time. 2024 Lower refinery throughput in 2024 reflected the impact of planned turnaround activities at Nanticoke, Sarnia and Strathcona refineries.
The company also maintains extensive operating procedures, processes and emergency response plans to address environmental risks at its operations. As discussed in "Item 1A. Risk factors” in this report, compliance with existing and potential future government regulations, including environmental regulations, may have material effects on the capital expenditures, earnings, and competitive position of the company.
The company also maintains extensive operating procedures, processes and emergency response plans to address environmental risks at its operations. As discussed in "Item 1A. Risk factors" in this report, compliance with existing and potential future government regulations, including environmental regulations, may have material effects on the capital expenditures, earnings, and competitive position of the company.
These limitations are to ensure oil recovery is not adversely impacted by accelerated gas production practices. These limitations do not impact gas reserves, only the timing of production of the reserves and did not have a significant impact on Imperial’s 2024 gas production rates. Exports The Government of Canada has the authority to regulate the export price for natural gas.
These limitations are to ensure oil recovery is not adversely impacted by accelerated gas production practices. These limitations do not impact gas reserves, only the timing of production of the reserves and did not have a significant impact on Imperial’s 2025 gas production rates. Exports The Government of Canada has the authority to regulate the export price for natural gas.
Aspen’s project pace will continue to be evaluated and remains an important opportunity for Imperial. The Enhanced Bitumen Recovery Technology (EBRT) field pilot on the Aspen lease received funding approval in 2023, with development work underway for pilot start-up anticipated by 2027.
Aspen’s pace will continue to be evaluated as the project remains an important opportunity for Imperial. The Enhanced Bitumen Recovery Technology (EBRT) field pilot on the Aspen lease received funding approval in 2023, with development work underway for pilot start-up anticipated by 2027.
Technologies used in establishing proved reserves estimates Imperial’s proved reserves in 2024 were based on estimates generated through the integration of available and appropriate geological, engineering and production data, utilizing well established technologies that have been demonstrated in the field to yield repeatable and consistent results.
Technologies used in establishing proved reserves estimates Imperial’s proved reserves in 2025 were based on estimates generated through the integration of available and appropriate geological, engineering and production data, utilizing well established technologies that have been demonstrated in the field to yield repeatable and consistent results.
The company supplies petroleum products through Esso and Mobil-branded sites and independent marketers. At the end of 2024, there were about 2,600 sites operating under a branded wholesaler model, in alignment with Esso and Mobil brand standards, whereby the company supplies fuel to independent third parties.
The company supplies petroleum products through Esso and Mobil-branded sites and independent marketers. At the end of 2025, there were about 2,600 sites operating under a branded wholesaler model, in alignment with Esso and Mobil brand standards, whereby the company supplies fuel to independent third parties.
The majority of the acreage in Cold Lake, Kearl and Syncrude is continued by production. The company holds interests in an additional 386,000 net acres of developed and undeveloped land in the western provinces related to crude oil and natural gas.
The majority of the acreage in Cold Lake, Kearl and Syncrude is continued by production. The company holds interests in an additional 385,000 net acres of developed and undeveloped land in the western provinces related to crude oil and natural gas.
The pilot will test technology that has the potential to deliver higher bitumen production rates compared to industry average SAGD operations. Work progresses on technical and technology evaluations to support potential future Clarke Creek, Corner, Clyden and Chard in-situ development regulatory applications. The company also has interests in other oil sands leases in the Athabasca region of northern Alberta.
The pilot will test technology that has the potential to deliver higher bitumen production rates compared to industry average SAGD operations. 11 Work progresses on technical and technology evaluations to support potential future Clarke Creek and Corner in-situ development regulatory applications. The company also has interests in other oil sands leases in the Athabasca region of northern Alberta.
Land holdings At December 31, 2024 and December 31, 2023, the company held the following oil and gas rights, and bitumen and synthetic crude oil leases, all of which are located in Canada, specifically in the western provinces, in the Canada lands and in the Atlantic offshore.
Land holdings At December 31, 2025 and December 31, 2024, the company held the following oil and gas rights, and bitumen and synthetic crude oil leases, all of which are located in Canada, specifically in the western provinces, in the Canada lands and in the Atlantic offshore.
The company purchases finished products to supplement its refinery production. The approximate average daily volumes of refinery throughput and utilization during the three years ended December 31, 2024, and the daily rated capacities of the refineries as at December 31, 2024, were as follows.
The company purchases finished products to supplement its refinery production. The approximate average daily volumes of refinery throughput and utilization during the three years ended December 31, 2025, and the daily rated capacities of the refineries as at December 31, 2025, were as follows.
In 2024, bitumen unit production costs decreased, primarily driven by lower energy costs, higher Cold Lake production due to Grand Rapids, and higher Kearl production due to improved mine fleet productivity and optimized turnaround. In 2024, synthetic crude oil unit production costs decreased, primarily driven by lower upgrading costs and lower energy costs.
In 2025, synthetic crude oil unit production costs decreased, primarily driven by higher production. In 2024, bitumen unit production costs decreased, primarily driven by lower energy costs, higher Cold Lake production due to Grand Rapids, and higher Kearl production due to improved mine fleet productivity and optimized turnaround.
No major discovery or other favourable or adverse event has occurred since December 31, 2024 that would cause a significant change in the estimated proved reserves as of that date.
No major discovery or other favourable or adverse event has occurred since December 31, 2025 that would cause a significant change in the estimated proved reserves as of that date.
The number of regular employees was about 5,100 at the end of 2024 (2023 - 5,300, 2022 - 5,300). Regular employees are defined as active executive, management, professional, technical, administrative, and wage employees who work full-time or part-time for the company and are covered by the company’s benefit plans and programs.
The number of regular employees was about 5,000 at the end of 2025 (2024 - 5,100, 2023 - 5,300). Regular employees are defined as active executive, management, professional, technical, administrative, and wage employees who work full-time or part-time for the company and are covered by the company’s benefit plans and programs.
Average daily production and production available for sale of natural gas The company’s average daily production and production available for sale of natural gas during the three years ended December 31, 2024 are set forth below.
Average daily production and production available for sale of natural gas The company’s average daily production and production available for sale of natural gas during the three years ended December 31, 2025 are set forth below.
(f) Includes sales of the company’s share of net production and excludes amounts used for internal consumption. 9 Total average daily oil-equivalent basis production The company’s total average daily production expressed in an oil-equivalent basis is set forth below, with natural gas converted to an oil-equivalent basis at six million cubic feet per one thousand barrels. thousands of barrels per day (a) 2024 2023 2022 Total production oil-equivalent basis: – gross (b) 433 413 416 – net (c) 371 360 349 (a) Volume per day metrics are calculated by dividing the volume for the period by the number of calendar days in the period.
(f) Includes sales of the company’s share of net production and excludes amounts used for internal consumption. 9 Total average daily oil-equivalent basis production The company’s total average daily production expressed in an oil-equivalent basis is set forth below, with natural gas converted to an oil-equivalent basis at six million cubic feet per one thousand barrels. thousands of barrels per day (a) 2025 2024 2023 Total production oil-equivalent basis: – gross (b) 438 433 413 – net (c) 387 371 360 (a) Volume per day metrics are calculated by dividing the volume for the period by the number of calendar days in the period.
Average unit sales price The company’s average unit sales price and average unit production costs by product type for the three years ended December 31, 2024 were as follows.
Average unit sales price The company’s average unit sales price and average unit production costs by product type for the three years ended December 31, 2025 were as follows.
Average daily production of oil The company’s average daily oil production by final products sold during the three years ended December 31, 2024 was as follows.
Average daily production of oil The company’s average daily oil production by final products sold during the three years ended December 31, 2025 was as follows.
The company’s total petrochemical sales volumes during the three years ended December 31, 2024, were as follows. thousands of tonnes 2024 2023 2022 Total petrochemical sales (a) 684 820 842 (a) In 2024, benzene and aromatic solvent sales are reported under Petroleum product sales - Lube oils and other products, whereas in 2023, they were reported under Petrochemical sales.
The company’s total petrochemical sales volumes during the three years ended December 31, 2025, were as follows. thousands of tonnes 2025 2024 2023 Total petrochemical sales (a) 683 684 820 (a) In 2025 and 2024, benzene and aromatic solvent sales are reported under Petroleum product sales - Lube oils and other products, whereas in 2023, they were reported under Petrochemical sales.
Wells drilled The following table sets forth the net exploratory and development wells that were drilled or participated in by the company during the three years ended December 31, 2024. wells 2024 2023 2022 Net productive exploratory — — — Net dry exploratory — — — Net productive development 14 32 24 Net dry development — — — Total 14 32 24 In 2024, wells drilled to add productive capacity include 14 development wells at Cold Lake.
Wells drilled The following table sets forth the net exploratory and development wells that were drilled or participated in by the company during the three years ended December 31, 2025. wells 2025 2024 2023 Net productive exploratory — — — Net dry exploratory — — — Net productive development 4 14 32 Net dry development — — — Total 4 14 32 In 2025, wells drilled to add productive capacity include 4 development wells at Cold Lake.
All wells were located in Canada. 2024 wells Gross Net Total 2 2 Exploratory and development activities regarding oil and gas resources Cold Lake To maintain production at Cold Lake, capital expenditures for additional production wells and associated facilities are required periodically. In 2024, additional development wells were drilled to add productive capacity.
All wells were located in Canada. 2025 wells Gross Net Total 9 9 Exploratory and development activities regarding oil and gas resources Cold Lake To maintain production at Cold Lake, capital expenditures for additional production wells and associated facilities are required periodically. In 2025, additional development wells were drilled to add productive capacity.
All reported production volumes were from Canada and are calculated at a pressure base of 14.73 pounds per square inch absolute at 60 degrees Fahrenheit. millions of cubic feet per day (a) 2024 2023 2022 Gross production (b) (c) 30 33 85 Net production (c) (d) (e) 30 32 83 Net production available for sale (f) 9 11 50 (a) Volume per day metrics are calculated by dividing the volume for the period by the number of calendar days in the period.
All reported production volumes were from Canada and are calculated at a pressure base of 14.73 pounds per square inch absolute at 60 degrees Fahrenheit. millions of cubic feet per day (a) 2025 2024 2023 Gross production (b) (c) 29 30 33 Net production (c) (d) (e) 29 30 32 Net production available for sale (f) 8 9 11 (a) Volume per day metrics are calculated by dividing the volume for the period by the number of calendar days in the period.
Refinery throughput (a) Rated capacities (b) Year ended December 31 at December 31 thousands of barrels per day 2024 2023 2022 2024 Strathcona, Alberta 187 186 195 197 Sarnia, Ontario 110 110 113 124 Nanticoke, Ontario 102 111 110 113 Total 399 407 418 434 Utilization of refinery capacity (percent) 92 94 98 (a) Refinery throughput is the volume of crude oil and feedstocks that is processed in the refinery atmospheric distillation units.
Refinery throughput (a) Rated capacities (b) Year ended December 31 at December 31 thousands of barrels per day 2025 2024 2023 2025 Strathcona, Alberta 186 187 186 197 Sarnia, Ontario 113 110 110 124 Nanticoke, Ontario 103 102 111 113 Total 402 399 407 434 Utilization of refinery capacity (percent) 93 92 94 (a) Refinery throughput is the volume of crude oil and feedstocks that is processed in the refinery atmospheric distillation units.
The company also conducts experimental pilot operations to improve recovery of bitumen from wells by means of new drilling, production or recovery techniques. 11 Aspen and other in-situ oil sands activities In October 2018, the company received regulatory approval for the Aspen SA-SAGD project from the AER.
The company also conducts experimental pilot operations to improve recovery of bitumen from wells by means of new drilling, production or recovery techniques. Aspen and other in-situ oil sands activities In October 2018, the company received regulatory approval for the Aspen Solvent Assisted - Steam Assisted Gravity Drainage (SA-SAGD) project from the AER.
The approximate daily volumes of net petroleum products (excluding purchases/sales contracts with the same counterparty) sold during the three years ended December 31, 2024, are set out in the following table. thousands of barrels per day 2024 2023 2022 Gasolines 223 228 229 Heating, diesel and jet fuels 175 176 176 Lube oils and other products (a) 46 43 47 Heavy fuel oils 22 24 23 Net petroleum product sales 466 471 475 (a) In 2024, benzene and aromatic solvent sales are reported under Petroleum product sales - Lube oils and other products, whereas in 2023, they were reported under Petrochemical sales.
The approximate daily volumes of net petroleum products (excluding purchases/sales contracts with the same counterparty) sold during the three years ended December 31, 2025, are set out in the following table. thousands of barrels per day 2025 2024 2023 Gasolines 224 223 228 Heating, diesel and jet fuels 177 175 176 Lube oils and other products (a) 48 46 43 Heavy fuel oils 21 22 24 Net petroleum product sales 470 466 471 (a) In 2025 and 2024, benzene and aromatic solvent sales are reported under Petroleum product sales - Lube oils and other products, whereas in 2023, they were reported under Petrochemical sales.
At year-end 2024, the company had an interest in 12 gross wells with multiple completions (2023 - 12 gross wells).
At year-end 2025, the company had an interest in 15 gross wells with multiple completions (2024 - 12 gross wells).
Diluent is natural gas condensate or other light hydrocarbons added to the crude bitumen to facilitate transportation. During 2024, the company’s share of Kearl’s net bitumen production was about 186,000 barrels per day and gross production was about 200,000 barrels per day.
Diluent is natural gas condensate or other light hydrocarbons added to the crude bitumen to facilitate transportation. During 2025, the company’s share of Kearl’s net bitumen production was about 188,000 barrels per day and gross production was about 199,000 barrels per day.
In 2023, wells drilled to add productive capacity include 32 development wells at Cold Lake. Wells drilling At December 31, 2024, the company was drilling the following development wells to add productive capacity at Cold Lake.
In 2024, wells drilled to add productive capacity include 14 development wells at Cold Lake. Wells drilling At December 31, 2025, the company was drilling the following development wells to add productive capacity at Cold Lake.
In the past five years, the company has made capital and operating expenditures of about $6.9 billion on environmental protection and facilities. In 2024, the company’s environmental capital and operating expenditures totalled approximately $2.1 billion, which was spent primarily on activities to protect the water, air and land, including remediation projects.
In the past five years, the company has made capital and operating expenditures of about $8.0 billion on environmental protection and facilities. In 2025, the company’s environmental capital and operating expenditures totalled approximately $1.7 billion, which was spent primarily on activities to protect the land, air, and water including remediation projects.
In 2023, synthetic crude oil unit production costs decreased, primarily driven by higher net production. 10 Drilling and other exploratory and development activities The company has been involved in the exploration for and development of crude oil and natural gas in Canada only.
In 2024, synthetic crude oil unit production costs decreased, primarily driven by lower upgrading costs and lower energy costs. 10 Drilling and other exploratory and development activities The company has been involved in the exploration for and development of crude oil and natural gas in Canada only.
Competition The Canadian energy and petrochemical industries are highly competitive. Competition exists in the search for and development of new sources of supply, the construction and operation of crude oil, natural gas and refined products pipelines and facilities, and the refining, distribution and marketing of petroleum products and chemicals.
Competition exists in the search for and development of new sources of supply, the construction and operation of crude oil, natural gas and refined products pipelines and facilities, and the refining, distribution and marketing of petroleum products and chemicals.
The product, a blend of bitumen and diluent, is typically shipped to the company’s refineries, Exxon Mobil Corporation refineries and to other third parties. In 2024, net bitumen production at Cold Lake was about 113,000 barrels per day.
The product, a blend of bitumen and diluent, is typically shipped to the company’s refineries, Exxon Mobil Corporation refineries and to other third parties. In 2025, net bitumen production at Cold Lake was about 122,000 barrels per day. The gross production was about 151,000 barrels per day, which is an increase of about 3,000 barrels per day compared to 2024.
In 2023, sales volumes decreased primarily due to planned maintenance activities. 17 Delivery commitments The company has no material commitments to provide a fixed and determinable quantity of oil or gas under existing contracts and agreements.
In 2024, sales volumes decreased primarily due to the reclassification of benzene and aromatic solvent sales. 17 Delivery commitments The company has no material commitments to provide a fixed and determinable quantity of oil or gas under existing contracts and agreements.
Year ended December 31, 2024 Year ended December 31, 2023 Crude oil Natural gas Crude oil Natural gas wells Gross (a) Net (b) Gross (a) Net (b) Gross (a) Net (b) Gross (a) Net (b) Total (c) 3,991 3,987 2,387 763 4,084 4,080 2,411 770 (a) Gross wells are wells in which the company owns a working interest.
Year ended December 31, 2025 Year ended December 31, 2024 Crude oil Natural gas Crude oil Natural gas wells Gross (a) Net (b) Gross (a) Net (b) Gross (a) Net (b) Gross (a) Net (b) Total (c) 4,025 4,021 2,421 773 3,991 3,987 2,387 763 (a) Gross wells are wells in which the company owns a working interest.
The produced synthetic crude oil is typically shipped to the company’s refineries, Exxon Mobil Corporation refineries and to other third parties. In 2024, the company’s share of Syncrude’s net productio n was about 62,000 barrels per day. The gross production was about 75,000 barrels per day, which is a decrease of about 1,000 barrels per day compared to 2023.
The produced synthetic crude oil is typically shipped to the company’s refineries, Exxon Mobil Corporation refineries and to other third parties. In 2025, the company’s share of Syncrude’s net productio n was about 68,000 barrels per day. The gross production was about 79,000 barrels per day, which is an increase of about 4,000 barrels per day compared to 2024.
The total number of wells capable of production, in which the company had interests at December 31, 2024 and December 31, 2023, is disclosed in the following table. The statistics in the table are determined in part from information received from other operators. The total number of wells decreased in 2024 primarily due to the shut-in of multiple non-economical wells.
The total number of wells capable of production, in which the company had interests at December 31, 2025 and December 31, 2024, is disclosed in the following table. The statistics in the table are determined in part from information received from other operators.
All reported production volumes were from Canada. thousands of barrels per day (a) 2024 2023 2022 Bitumen: Kearl: - gross (b) 200 191 172 - net (c) 186 177 157 Cold Lake: - gross (b) 148 135 144 - net (c) 113 106 106 Total bitumen: - gross (b) 348 326 316 - net (c) 299 283 263 Synthetic crude oil (d) : - gross (b) 75 76 77 - net (c) 62 67 63 Liquids (e) : - gross (b) 5 5 9 - net (c) 5 5 9 Total: - gross (b) 428 407 402 - net (c) 366 355 335 (a) Volume per day metrics are calculated by dividing the volume for the period by the number of calendar days in the period.
All reported production volumes were from Canada. thousands of barrels per day (a) 2025 2024 2023 Bitumen: Kearl: - gross (b) 199 200 191 - net (c) 188 186 177 Cold Lake: - gross (b) 151 148 135 - net (c) 122 113 106 Total bitumen: - gross (b) 350 348 326 - net (c) 310 299 283 Synthetic crude oil (d) : - gross (b) 79 75 76 - net (c) 68 62 67 Liquids (e) : - gross (b) 4 5 5 - net (c) 4 5 5 Total: - gross (b) 433 428 407 - net (c) 382 366 355 (a) Volume per day metrics are calculated by dividing the volume for the period by the number of calendar days in the period.
Developed Undeveloped Total thousands of acres 2024 2023 2024 2023 2024 2023 Western provinces (a): Liquids and gas - gross (b) 413 422 185 185 598 607 - net (c) 251 253 135 135 386 388 Bitumen - gross (b) 196 196 578 584 774 780 - net (c) 182 182 253 255 435 437 Synthetic crude oil - gross (b) 119 119 100 100 219 219 - net (c) 30 30 25 25 55 55 Canada lands (d) : Liquids and gas - gross (b) 2 2 1,803 1,803 1,805 1,805 - net (c) 2 2 495 496 497 498 Atlantic offshore: Liquids and gas - gross (b) 23 65 146 146 169 211 - net (c) 2 6 22 22 24 28 Total (e) : - gross (b) 753 804 2,812 2,818 3,565 3,622 - net (c) 467 473 930 933 1,397 1,406 (a) Western provinces include British Columbia and Alberta.
Developed Undeveloped Total thousands of acres 2025 2024 2025 2024 2025 2024 Western provinces (a): Liquids and gas - gross (b) 394 413 185 185 579 598 - net (c) 250 251 135 135 385 386 Bitumen - gross (b) 196 196 578 578 774 774 - net (c) 182 182 253 253 435 435 Synthetic crude oil - gross (b) 119 119 100 100 219 219 - net (c) 30 30 25 25 55 55 Canada lands (d) : Liquids and gas - gross (b) 2 2 1,803 1,803 1,805 1,805 - net (c) 2 2 495 495 497 497 Atlantic offshore: Liquids and gas - gross (b) 23 23 146 146 169 169 - net (c) 2 2 22 22 24 24 Total (e) : - gross (b) 734 753 2,812 2,812 3,546 3,565 - net (c) 466 467 930 930 1,396 1,397 (a) Western provinces include British Columbia and Alberta.
Environmental expenditures are expected to increase to approximately $2.6 billion in 2025, with capital expenditures expected 19 to account for approximately 54 percent of the total. Costs for 2026 are anticipated to be approximately $2.6 billion, with capital expenditures expected to account for approximately 53 percent of the total.
Environmental expenditures are expected to increase to approximately $2.0 billion in 2026, with capital expenditures expected 19 to account for approximately 48 percent of the total. Costs for 2027 are anticipated to be approximately $1.7 billion, with capital expenditures expected to account for approximately 41 percent of the total.
Canadian dollars per barrel 2024 2023 2022 Bitumen 74.53 67.42 84.67 Synthetic crude oil 101.91 105.57 125.46 Liquids (a) 55.63 59.30 93.77 Canadian dollars per thousand cubic feet Natural gas 0.69 2.58 5.69 (a) Liquids include crude oil, condensate and NGLs.
Canadian dollars per barrel 2025 2024 2023 Bitumen 67.01 74.53 67.42 Synthetic crude oil 88.99 101.91 105.57 Liquids (a) 33.10 55.63 59.30 Canadian dollars per thousand cubic feet Natural gas 1.76 0.69 2.58 (a) Liquids include crude oil and NGLs.
The company’s internal reserves evaluation management team is made up of 15 persons with an average of 10 years of relevant experience in evaluating and managing the evaluation of reserves. Proved undeveloped reserves As at December 31, 2024, approximately 11 percent of the company’s proved reserves were proved undeveloped reflecting volumes of 227 million oil-equivalent barrels.
The company’s internal reserves evaluation management team is made up of 12 persons with an average of 10 years engaged with the company's resource evaluation. Proved undeveloped reserves As at December 31, 2025, approximately 4.9 percent of the company’s proved reserves were proved undeveloped reflecting volumes of 100 million oil-equivalent barrels.
Average unit production costs Canadian dollars per barrel 2024 2023 2022 Bitumen 29.42 32.41 39.05 Synthetic crude oil 61.84 62.57 68.00 Total oil-equivalent basis (a) 35.48 38.51 44.02 (a) Includes liquids, bitumen, synthetic crude oil and natural gas.
Average unit production costs Canadian dollars per barrel 2025 2024 2023 Bitumen 28.85 29.42 32.41 Synthetic crude oil 57.25 61.84 62.57 Total oil-equivalent basis (a) 34.54 35.48 38.51 (a) Includes liquids, bitumen, synthetic crude oil and natural gas. In 2025, bitumen unit production costs decreased, primarily driven by higher Cold Lake production.
Additionally, in 2022, the company approved the budget for the Leming Steam-Assisted Gravity Drainage (SAGD) project that will re-develop the original pilot area of the Cold Lake field, with development activities having commenced in 2023 and start-up planned in 2025.
In 2026, a development drilling program is planned within the approved development area to add productive capacity. Additionally, in 2022, the company approved the budget for the Leming Steam-Assisted Gravity Drainage (SAGD) project that will re-develop the original pilot area of the Cold Lake field. Development activities commenced in 2023 and first oil production was achieved in November 2025.
Although the company is reasonably certain that proved reserves will be produced, the timing and amount recovered can be affected by a number of factors, including completion and optimization of development projects, reservoir performance, regulatory approvals, government policies, consumer preferences, changes in the amount and timing of capital investments, royalty frameworks and significant changes in oil and gas price levels.
Although the company is reasonably certain that proved reserves will be produced, the timing and amount recovered can be affected by a number of factors, including completion and optimization of development projects, reservoir performance, and facility processing capacity.
Total gross production for Kearl was about 281,000 barrels per day (200,000 barrels Imperial’s share), which is an increase of about 11,000 barrels per day (9,000 barrels Imperial's share) compared to 2023 , as a result of improved mine fleet productivity and optimized turnaround. Cold Lake Cold Lake is an in-situ heavy oil bitumen operation.
Total gross production for Kearl was about 280,000 barrels per day (199,000 barrels Imperial’s share), which is a decrease of about 1,000 barrels per day (1,000 barrels Imperial's share) compared to 2024 . Cold Lake Cold Lake is an in-situ heavy oil bitumen operation.
The company has determined that the impact of this change is not material; therefore, the comparative periods have not been recast. In 2024, sales volumes decreased primarily due to the reclassification of benzene and aromatic solvent sales.
The company has determined that the impact of this change is not material; therefore, the comparative periods have not been recast.
Liquids (a) Natural gas Synthetic crude oil Bitumen Total oil-equivalent basis millions of barrels billions of cubic feet millions of barrels millions of barrels millions of barrels Net proved reserves: Developed — 41 190 1,697 1,894 Undeveloped — 12 106 119 227 Total net proved — 53 296 1,816 2,121 (a) Liquids include crude oil, condensate and natural gas liquids (NGLs).
Liquids (a) Natural gas Synthetic crude oil Bitumen Total oil-equivalent basis millions of barrels billions of cubic feet millions of barrels millions of barrels millions of barrels Net proved reserves: Developed — 41 288 1,641 1,936 Undeveloped — 8 — 99 100 Total net proved — 49 288 1,740 2,036 (a) Liquids include crude oil and natural gas liquids (NGLs).
These investments represented about 24 percent of the $1,078 million in total reported Upstream capital and exploration expenditures. 8 Oil and gas production, production prices and production costs Reference is made to the portion of the "Financial section" entitled "Management’s discussion and analysis of financial condition and results of operations" of this report for a narrative discussion on the material changes.
The company made investments of about $291 million during the year to progress the development of proved undeveloped reserves at Cold Lake, Syncrude, and Kearl. 8 Oil and gas production, production prices and production costs Reference is made to the portion of the "Financial section" entitled "Management’s discussion and analysis of financial condition and results of operations" of this report for a narrative discussion on the material changes.
Proved undeveloped reserves are associated with Syncrude, Kearl and Cold Lake. This compared to 218 million oil-equivalent barrels of proved undeveloped reserves reported at the end of 2023. The increase of 9 million oil-equivalent barrels of proved undeveloped reserves is mainly attributed to full funding of Cold Lake infill drilling, partially offset by Cold Lake infill start-ups.
Proved undeveloped reserves are associated with Cold Lake and Kearl. This compared to 227 million oil-equivalent barrels of proved undeveloped reserves reported at the end of 2024.
The internal qualified reserves evaluator is a professional geoscientist registered in Alberta, Canada and has 22 years of petroleum industry experience, including 13 years of reserves related experience. The position provides leadership to the internal reserves management group and is responsible for filing a reserves report with the Canadian securities regulatory authorities.
The position provides leadership to the internal reserves management group and is responsible for filing a reserves report with the Canadian securities regulatory authorities. The company’s internal reserves evaluation staff consists of 20 persons with professional designations, with an average of 13 years engaged with the company's resource evaluation.
The company has a disciplined investment strategy and many major fields require a long lead-time in order to be developed. The company made investments of about $260 million during the year to progress the development of proved undeveloped reserves at Cold Lake, Kearl and Syncrude.
One of the company’s requirements to report resources as proved reserves is that management has made significant funding commitments towards the development of the reserves. The company has a disciplined investment strategy and many major fields require a long lead-time in order to be developed.
In 2023, Imperial’s average Canadian dollar realization for bitumen decreased generally in line with Western Canada Select (WCS). The company's average Canadian dollar realizations for synthetic crude oil decreased generally in line with West Texas Intermediate (WTI), adjusted for changes in exchange rates and transportation costs and reflect a premium over WTI driven by supply and demand.
In 2025, Imperial's average Canadian dollar realization for bitumen decreased, primarily driven by lower marker prices, partially offset by the narrowing of the Western Texas Intermediate (WTI)/Western Canada Select (WCS) spread and favourable diluent. The company's average Canadian dollar realizations for synthetic crude oil decreased, primarily driven by lower WTI.
Removed
The company’s internal reserves evaluation staff consists of 22 persons with an average of 12 years of relevant technical experience in evaluating reserves, of whom 21 persons are qualified reserves evaluators for purposes of Canadian securities regulatory requirements.
Added
The internal qualified reserves evaluator is a professional geoscientist registered in Alberta, Canada and has 23 years of petroleum industry experience, including 14 years of reserves related experience. During the last 5 years, the majority of such evaluator's time was spent evaluating resources.
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In 2023, bitumen unit production costs decreased, primarily driven by lower energy costs and higher Kearl production due to improved reliability, plant capacity utilization, and mine equipment productivity.
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On September 29, 2025, the company announced restructuring plans to improve its performance by centralizing additional corporate and technical activities in global business and technology centres. The restructuring plans include a program of targeted workforce reductions and involves involuntary employee separations.
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In 2025, a development drilling program is planned within the approved development area to add productive capacity.
Added
The program is expected to reduce employee roles by approximately 20% and to be substantially completed by the end of 2027. Competition The Canadian energy and petrochemical industries are highly competitive.
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In August 2018, Imperial received regulatory approval from the Alberta Energy Regulator (AER) for an expansion project at Cold Lake to develop the Grand Rapids interval using Solvent Assisted - Steam Assisted Gravity Drainage (SA-SAGD) technology, capable of producing 50,000 barrels per day before royalties.
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Similarly, an agreement between competitors that substantially prevents or lessens competition may be prohibited in whole or in part. Orders may be directed against any party to the agreement or any other person, and may require additional or alternative actions to restore competition, including the divestiture of assets or shares.
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The company is developing the Grand Rapids reservoir through capital-efficient investments that make use of available steam capacity from existing plants, with the initial phase of Grand Rapids development planned as an extension from the Nabiye plant.
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Agreements between non-competitors, a significant purpose of which is anti-competitive, are subject to the same framework. Administrative monetary penalties may also be imposed.
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In April 2022, the Grand Rapids Phase 1 (GRP1) project was approved by the company's board with a forecasted average production of 15,000 barrels per day before royalties. The initial steam injection phase at Grand Rapids started in December 2023 and first oil production was achieved in May 2024.
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References in this annual report on Form 10-K to the company’s website are provided only as a convenience and do not constitute, and should not be viewed as, an incorporation by reference of the information contained on, or available through, the website. Therefore, such information should not be considered part of this annual report on Form 10-K.
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The gross production was about 148,000 barrels per day, which is an increase of about 13,000 barrels per day compared to 2023, primarily driven by Grand Rapids. Cold Lake continues to utilize its commercial application of Liquid Addition to Steam f or Enhanced Recovery (LASER), with the technology being applied to approximately 15 percent of production.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

63 edited+18 added−9 removed87 unchanged
Biggest changeAlthough the regulatory authority to impose curtailments was repealed at the end of 2021, the use of similar curtailment regulations in the future could have an adverse effect on the company’s business. A significant portion of the company’s production is bitumen, which is blended with diluent for transportation and marketability of heavy crude oil.
Biggest changeA significant portion of the company’s production is bitumen, which is blended with diluent for transportation and marketability of heavy crude oil. Increases to diluent prices, relative to heavy crude oil prices, could also have an adverse effect on the company’s business.
Failure or delay of these policies or markets to materialize or be maintained, or the development of these policies or markets in a manner that differs from the company’s expectations, could adversely impact these investments.
Failure or delay of these policies or markets to materialize or be maintained, or the development of these policies or markets in a manner that differs from the company’s expectations, could adversely impact or delay these investments.
Additionally, changes in environmental regulations, assessment processes or other laws (including but not limited to in respect of climate change and greenhouse gas emissions and company communications relating thereto), regulatory interpretations that exclude or disfavour the company's products under government policies or programs intended to support new or developing markets or technologies or that are otherwise not technology-neutral, and increasing and expanding consultation with stakeholders and Indigenous communities, 23 may increase the cost of compliance or reduce or delay available business opportunities and adversely impact the company’s results.
Additionally, changes in environmental regulations, assessment processes or other laws (including but not limited to in respect of climate change and greenhouse gas emissions and company communications relating thereto), regulatory interpretations that exclude or disfavour the company's products under government policies or programs intended to support new or developing markets or technologies or that are otherwise not technology-neutral, and increasing and expanding consultation with stakeholders and Indigenous communities, may increase the cost of compliance or reduce or delay available business opportunities and adversely impact the company’s results.
Additionally, a number of air quality regulations and frameworks are being developed or have been implemented at the federal and provincial levels, including sulphur dioxide limits for refineries in Ontario, and volatile organic compounds (VOC) and benzene controls required for petroleum liquid storage tanks and loading operations at refining and terminal locations, and could impact existing and planned operations and projects through increased capital and operating expenses including retrofits to existing equipment, and could adversely impact the company’s operations and financial results.
Additionally, a number of air quality regulations and frameworks are being developed or have been implemented at the federal and provincial levels, including sulphur dioxide limits for refineries in Ontario, and volatile organic compounds and benzene controls required for petroleum liquid storage tanks and loading operations at refining and terminal locations, and could impact existing and planned operations and projects through increased capital and operating expenses including retrofits to existing equipment, and could adversely impact the company’s operations and financial results.
Of note, there are currently a number of court actions against the government by Indigenous groups regarding the assessment of cumulative impacts and infringement on exercise of treaty rights. These cases may inform future government decisions and policies regarding land use planning and resource development, and could impact the requirements or willingness to grant regulatory licenses or approvals.
Of note, there are currently a number of court actions against the government by Indigenous groups regarding the assessment of cumulative impacts and infringement on exercise of treaty rights. These cases may inform future government decisions and policies 24 regarding land use planning and resource development, and could impact the requirements or willingness to grant regulatory licenses or approvals.
Current and pending greenhouse gas regulations or policies may also increase compliance costs (such as complying with increased or mandatory disclosure or due diligence requirements and government mandated energy transition plans), increase abatement costs including taxes and levies, increase abandonment and reclamation obligations and impact decommissioning timelines, lengthen project evaluation and implementation times, impact reserves evaluations and affect operations.
Current, pending and potential greenhouse gas regulations or policies may also increase compliance costs (such as complying with increased or mandatory disclosure or due diligence requirements and government mandated energy transition plans), increase abatement costs including taxes and levies, increase abandonment and reclamation obligations and impact decommissioning timelines, lengthen project evaluation and implementation times, impact reserves evaluations and affect operations.
The company has limited ability to influence third parties, including the company's partners, suppliers, service providers (including providers of cloud-based services for the company's data or applications) and customers, to implement strong cybersecurity controls, and the company is exposed to potential harm from cybersecurity 30 events that may affect their operations.
The company has limited ability to influence third parties, including the company's partners, suppliers, service providers (including providers of cloud-based services for the company's data or applications) and customers, to implement strong cybersecurity controls, and the company is exposed to potential harm from cybersecurity events that may affect their operations.
Any material decline in crude oil prices could have a material adverse effect on the company’s Upstream operations, financial position, proved reserves and the amount spent to develop reserves. On the other hand, a material increase in crude oil prices could have a material adverse effect on the company's Downstream margins, depending on the market conditions for refined products.
Any material decline in crude oil prices could have a material adverse effect on the company’s Upstream operations, results, financial position, proved reserves and the amount spent to develop reserves. On the other hand, a material increase in crude oil prices could have a material adverse effect on the company's Downstream margins, depending on the market conditions for refined products.
Current and future increases in operating costs such as energy, transportation and materials, including through shipping, supply chain disruptions and inflationary cost pressures, could adversely affect the company’s financial results if it is unable to control or offset these costs.
Operating costs and inflation Current and future increases in operating costs such as energy, transportation and materials, including through shipping, supply chain disruptions and inflationary cost pressures, could adversely affect the company’s financial results if it is unable to control or offset these costs.
Negative impacts on Imperial’s reputation could, in turn, make it more difficult for the company to compete successfully for new opportunities, obtain necessary regulatory approvals, obtain financing, and attract talent, or they could reduce consumer demand for the company’s branded products.
Negative impacts on Imperial’s reputation could, in turn, make it more difficult for the company to compete successfully for new opportunities, obtain necessary regulatory approvals, obtain financing, and attract talent, or they could reduce customer or consumer demand for the company’s branded products.
Water use may be limited by regulatory requirements, seasonal fluctuations, regional drought, competing demands, environmental sensitivities, increasingly stringent water management standards, and changes to conditions or availability of licences, which may restrict and adversely affect the company’s 24 operations.
Water use may be limited by regulatory requirements, seasonal fluctuations, regional drought, competing demands, environmental sensitivities, increasingly stringent water management standards, and changes to conditions or availability of licences, which may restrict and adversely affect the company’s operations.
Changes in government policy or regulations, changes in law or interpretation of settled law, challenges to legislative jurisdiction between different levels of government, third-party opposition to company or infrastructure projects, and duration of regulatory reviews could impact the company’s existing operations and planned projects.
Changes in government policy or regulations, changes in law or interpretation of settled law, 23 challenges to legislative jurisdiction between different levels of government, third-party opposition to company or infrastructure projects, and duration of regulatory reviews could impact the company’s existing operations and planned projects.
This includes outages of key third-party infrastructure, such as pipelines servicing the company’s oil sands assets or pipelines supplying feedstock to its refineries, which could impact the company’s ability to operate its assets or limit the ability to deliver production and products to market.
This includes outages of key third-party infrastructure, such as pipelines servicing the company’s oil sands assets or pipelines supplying feedstock to its refineries, which could impact the company’s ability to operate its assets or 28 limit the ability to deliver production and products to market.
Imperial’s results may be impacted if the implementation pace and uncertainty of policy reduces the global competitiveness of the Canadian oil and gas industry and the company’s crude oil and refined products. Political government changes may create further policy uncertainty resulting in greater investment uncertainty and industry competitiveness concerns.
The company’s results may be impacted if the implementation pace and uncertainty of policy reduces the global competitiveness of the Canadian oil and gas industry and the company’s crude oil and refined products. Political government changes may create further policy uncertainty resulting in greater investment uncertainty and industry competitiveness concerns.
Changes in environmental legislation (including, but not limited to, application of regulations related to air, water, land, biodiversity and waste, such as mine tailings and the production or use of new or recycled plastics, as well as laws and regulations affecting production of the company's products, trading, carbon capture and storage, hydrogen, lower-emission fuels or lithium) or other laws that penalize the company for past or current production of legal and/or permitted products and operations may increase the cost of operation or compliance or reduce or delay available business opportunities.
Changes in environmental legislation (including, but not limited to, application of regulations related to air, water, land, biodiversity and waste, such as mine tailings and the production or use of new or recycled plastics, as well as laws and regulations affecting production of the company's products, trading, carbon capture and storage, hydrogen, lower-emission fuels or lithium) or changes in advertising, insurance or other laws that penalize the company for past or current production of legal and/or permitted products and operations may increase the cost of operation or compliance or reduce or delay available business opportunities.
The company applies risk management, internal controls and controls management systems in respect of these risks relating to autonomous haul trucks, as described in “Safety, business controls and environmental risk management” in this Item 1A below. See also “Cybersecurity” and “Reputation” in this Item 1A below.
The company applies risk management, internal controls and controls management systems in respect of these risks relating to autonomous haul trucks, as described in “Safety, business controls and risk management” in this Item 1A below. See also “Cybersecurity” and “Reputation” in this Item 1A below.
Actual production, revenues, taxes and royalties, development costs, abandonment and reclamation costs, and operating 31 expenditures, with respect to reserves, will likely vary from such estimates, and such variances could be material. Item 1B. Unresolved staff comments None.
Actual production, revenues, taxes and royalties, development costs, abandonment and reclamation costs, and operating expenditures, with respect to reserves, will likely vary from such estimates, and such variances could be material. Item 1B. Unresolved staff comments None.
See also "Climate change, energy transition and greenhouse gas restrictions" in this Item 1A below. 22 Other supply-related factors Commodity prices and margins also vary depending on a number of factors affecting supply.
See also "Climate change, energy transition and greenhouse gas restrictions" in this Item 1A below. Other supply-related factors Commodity prices and margins also vary depending on a number of factors affecting supply.
These actions are being taken both independently by national and regional governments and within the framework of United Nations Conference of the Parties’ summits under which Canada has endorsed objectives to reduce the atmospheric concentration of carbon dioxide (CO 2 ) over the coming decades, with an ambition ultimately to achieve "net zero".
These actions are being taken both independently by national and regional governments and within the framework of United Nations Conference of the Parties’ summits under which Canada has endorsed objectives to reduce the atmospheric concentration of carbon dioxide (CO2) over the coming decades, with an ambition ultimately to achieve "net zero".
To implement these goals, the Government of Canada uses a number of policy tools including the Greenhouse Gas Pollution Pricing Act (GGPPA), which sets a federal backstop carbon price Canada-wide through a carbon levy applied to fossil fuels ($50 per tonne CO 2 equivalent emissions starting in 2022 and increasing by $15 per tonne annually to $170 per tonne in 2030), and an output-based pricing system for large industrial emitters.
To implement these goals, the Government of Canada uses a number of policy tools including the Greenhouse Gas Pollution Pricing Act (GGPPA), which sets a federal backstop carbon price Canada-wide through a carbon levy applied to fossil fuels ($50 per tonne CO2 equivalent emissions starting in 2022 and increasing by $15 per tonne annually to 26 $170 per tonne in 2030), and an output-based pricing system for large industrial emitters.
Further, the Alberta Oil Sands Emissions Limit Act sets a limit of 100 megatonnes of CO 2 per year of emissions in the oil sands sector, but oil sands emissions remain below the limit and it is not yet possible to predict the impact of this act on the company’s future oil sands operations in Alberta.
Further, the Alberta Oil Sands Emissions Limit Act sets a limit of 100 megatonnes of CO2 per year of emissions in the oil sands sector, but oil sands emissions remain below the limit and it is not yet possible to predict the impact of this act on the company’s future oil sands operations in Alberta.
The company's consideration of changing weather conditions and inclusion of safety factors in design covers the engineering uncertainties that climate change and other events may potentially introduce. Imperial’s ability to mitigate the adverse impacts of these events depends in part upon the effectiveness of its robust facility engineering, rigorous disaster preparedness and response, and business continuity planning.
The company's consideration of changing weather conditions and inclusion of safety factors in design cover the engineering uncertainties that climate change and other events may potentially introduce. Imperial’s ability to mitigate the adverse impacts of these events depends in part upon the effectiveness of its robust facility engineering, rigorous emergency preparedness and response, and business continuity planning.
Such laws and policies could make Imperial’s products more expensive and less competitive, reduce or delay available business opportunities, reduce demand for hydrocarbons, and shift hydrocarbon demand toward lower greenhouse gas emission energy sources.
Such laws and policies could make the company's products more expensive or less competitive, reduce or delay available business opportunities, reduce demand for hydrocarbons, and shift hydrocarbon demand toward lower greenhouse gas emission energy sources.
Factors that could have an impact on the company’s reputation include an operating incident or significant cybersecurity disruption; changes in consumer views concerning the company’s products; changes in consumer media preferences from traditional mainstream media to decentralized and personalized media; a perception by the public that the company is not being fully transparent in the sharing of information regarding its operations that is or may be relevant to community decision-making; actions taken by the company's business partners; a perception by investors or others that insufficient progress is being made with respect to the company’s ambition in the energy transition, or that pursuit of this ambition may result in allocation of capital to investments with reduced returns; and other adverse events such as those described in this Item 1A.
Factors that could have an impact on the company’s reputation include an operating incident or significant cybersecurity disruption; changes in consumer views concerning the company’s products; changes in consumer media preferences from traditional mainstream media to decentralized and personalized media; a perception by the public that the company is not being fully transparent in the sharing of information regarding its operations that is or may be relevant to community decision-making; actions taken by the company's business partners; a perception by investors or others that insufficient progress is being made with respect to the company’s ambition in the energy transition, or that pursuit of this ambition may result in allocation of capital to investments with reduced returns; divergent and evolving policy, legal and regulatory developments, societal views and investor pressures regarding the energy transition; and other adverse events such as those described in this Item 1A.
Increased costs may not be recoverable in the market place, could negatively affect the company's returns and could reduce the global competitiveness of the company’s crude oil, natural gas and refined products.
Increased costs may not be recoverable in the marketplace, could negatively affect the company's returns and could reduce the global competitiveness of the company’s crude oil, natural gas and refined products.
The Government of Canada has updated its nationally determined contribution (NDC) under the Paris Agreement on climate change, to reduce greenhouse gas emissions economy-wide by 45 to 50 percent below 2005 levels by 2035, a substantial increase in ambition beyond its original and most recent NDC.
In 2024, the Government of Canada updated its nationally determined contribution (NDC) under the Paris Agreement on climate change, to reduce greenhouse gas emissions economy-wide by 45 to 50 percent below 2005 levels by 2035, a substantial increase in ambition beyond its original and prior NDC.
Other government and political factors that could adversely affect the company’s financial results include increases or changes in taxes or government royalty rates (including retroactive claims or punitive taxes on oil, gas and petrochemical operations) and changes in trade policies and agreements (including those potential tariffs and retaliatory actions discussed above in this Item 1A under “Other supply-related factors”).
Other government and political factors that could adversely affect the company’s financial results include increases or changes in taxes or government royalty rates (including retroactive claims or punitive taxes on oil, gas and petrochemical operations) and changes in trade policies and agreements (including those potential tariffs and retaliatory actions discussed above in this Item 1A under “Economic conditions”).
Technology and lower-emission solutions Achieving societal ambitions to reduce greenhouse gas emissions and ultimately achieve net-zero emissions will require new technologies and added infrastructure to reduce the cost and increase the scalability of 27 alternative energy sources.
Technology and lower-emission solutions Achieving societal ambitions to reduce greenhouse gas emissions and ultimately achieve net-zero emissions will require new technologies and added infrastructure to reduce the cost and increase the scalability of solutions to reduce emissions.
Greenhouse gas restrictions Government actions intended to reduce greenhouse gas emissions include adoption of carbon emissions pricing, cap and trade regimes, carbon taxes, emissions limits, increased mileage and other efficiency standards, low carbon fuels standards, mandates for sales of electrical vehicles, restrictions on sales of gasoline-only vehicles, and other incentives or mandates designed to support certain technologies for transitioning to lower-emission energy sources.
Greenhouse gas restrictions Government actions intended to reduce greenhouse gas emissions include adoption of carbon emissions pricing, cap and trade regimes, carbon taxes, emissions limits, increased mileage and other efficiency standards, low carbon fuels standards, mandates for sales of electrical vehicles, restrictions on sales of gasoline-only vehicles, mandates for disclosure of plans to reduce emissions or reduce the use or production of certain products, mandates for use of specific fuels or technologies, and other incentives or mandates designed to support certain technologies for transitioning to lower-emission energy sources.
Safety, business controls and environmental risk management The scope and nature of the company’s operations present a variety of significant hazards and risks, including operational hazards and risks such as explosions, fires, pipeline ruptures and crude oil spills.
Safety, business controls and risk management The scope and nature of the company’s operations present a variety of significant hazards and risks, including operational hazards and risks such as explosions, fires, pipeline ruptures and crude oil, chemical or produced water spills.
Other business risks Imperial is reliant on a number of key chemicals, catalysts and third-party service providers, including input and output commodity transportation (pipelines, rail, trucking, marine) and utilities providing services, including electricity and water, to various company operations.
Other business risks Reliance upon third-party suppliers, service providers and ExxonMobil global capability centres Imperial is reliant on a number of key chemicals, catalysts and third-party service providers, including input and output commodity transportation (pipelines, rail, trucking, marine) and utilities providing services, including electricity and water, to various company operations.
Imperial’s operations are also subject to the additional hazards of pollution, releases of toxic gas and environmental hazards and risks, including severe weather (such as extreme cold weather events that impacted the company's oil sands operations in early 2022), drought, forest fires and geological events.
Imperial’s operations are also subject to the additional hazards of pollution, releases of toxic gas and environmental hazards and risks, including severe weather (such as extreme cold or wet weather events that have previously impacted the company's oil sands operations), drought, forest fires and geological events.
Governments may also impose restrictions on production of, or emissions from, oil and gas and electricity to the extent they view such measures as a viable approach for pursuing national and global energy and climate policies.
The impact of this legislation is not fully apparent. Governments may also impose restrictions on production of, or emissions from, oil and gas and electricity to the extent they view such measures as a viable approach for pursuing national and global energy and climate policies.
Other demand-related factors Factors that may affect the demand for crude oil, gas, fuels and petrochemicals, and therefore could impact the company’s results, include technological improvements in energy efficiency; seasonal weather patterns, which affect the demand for the company's products, including lower demand for gasoline, impacting Downstream results in the winter; increased competitiveness of, or government policy support for, alternative energy sources or potential substitutes for the company's products; new product quality regulations; technological changes or consumer preferences that alter fuel choices, such as technological advances in energy storage or other critical areas that make wind, solar, nuclear or other alternatives more competitive for power generation; changes in consumer preferences for the company’s products, including consumer demand for alternative fuel or electric transportation or alternatives to plastic products; broad-based changes in personal income levels, interest rates and inflation; and security or public health issues and responses such as epidemics and pandemics.
Other demand-related factors Factors that may affect the demand for crude oil, gas, fuels and petrochemicals, and therefore could impact the company’s results, include technological improvements in energy efficiency; seasonal weather patterns; increased competitiveness of, or government policy support for, alternative energy sources or potential substitutes for the company's products; new product quality regulations; technological changes or consumer preferences that alter fuel choices, such as technological advances in energy storage or other critical areas that make wind, solar, nuclear or other alternatives more competitive for power generation; government actions to increase strategic reserves to enhance energy security; increased demand for artificial intelligence, including the construction and expansion of artificial intelligence data centers; changes in customer or consumer 22 preferences for the company’s products, including consumer demand for alternative fuel or electric transportation or alternatives to plastic products; broad-based changes in personal income levels, interest rates and inflation; and security or public health issues and responses such as epidemics and pandemics.
Political and other actors (and their agents) are also increasingly seeking to collectively advance climate change objectives indirectly, such as by seeking to reduce the availability or increase the cost of financing and investment in the oil and gas sector.
Political actors, non-governmental organizations, and their agents also seek to collectively advance climate change objectives indirectly, such as by seeking to reduce the availability or increase the cost of financing and investment in the oil and gas sector.
The failure to develop and adopt new technology may have an adverse impact on the company’s operations, ability to meet regulatory requirements and operational commitments and targets (including those relating to environmental sustainability and reduction of greenhouse gas emissions), and financial results.
The failure to develop and adopt new technology may have an adverse impact on the company’s operations, ability to meet regulatory requirements and operational commitments and targets (including those relating to environmental sustainability and reduction of greenhouse gas emissions), and financial results. The company’s Kearl site has converted all of its haul trucks to autonomous operation.
These risks include the company’s ability to obtain the necessary environmental and other regulatory approvals; changes in regulations; the ability to negotiate successfully with joint venturers, partners, governments, suppliers, customers and others; the ability to protect and enforce the company’s contractual and legal rights (including with joint venture partners); the ability to model and optimize reservoir performance; changes in resources and operating costs including the availability and cost of materials, equipment and qualified personnel; the ability to qualify for certain incentives available under supportive government policies for emerging markets and technologies; the impact of general economic, business and market conditions; and the company’s ability to prevent, to the extent possible, and respond effectively to unforeseen technical difficulties that could delay project start-up or cause unscheduled downtime.
These risks include the company’s ability to obtain the necessary environmental and other regulatory approvals; changes in regulations; the ability to negotiate successfully with joint venturers, partners, governments, suppliers, customers and others; the ability to protect and enforce the company’s contractual and legal rights (including with joint venture partners); the ability to model and optimize reservoir performance and production reliability; changes in resources and operating costs including the availability and cost of materials, equipment and qualified personnel; the ability to qualify for certain incentives available under supportive government policies for emerging markets and technologies; the impact of general economic, business and market conditions; and the company’s ability to prevent, to the extent possible, and respond effectively to unforeseen technical difficulties that could delay project start-up or cause unscheduled downtime. 29 Operational efficiency An important component of Imperial’s competitive performance, especially given the commodity-based nature of the company’s business, is the ability to operate efficiently, including the company’s ability to manage expenses and improve production yields on an ongoing basis.
This includes actions by policy makers, regulators or other actors to delay or deny necessary licences and permits, reduce or retract government incentives for emissions reductions, or restrict the availability of oil and gas leases or the operation of third-party infrastructure that the company relies on, such as pipelines to transport the company’s upstream production to market or that supply feedstock to the company’s refineries.
This includes actions by governments, policy makers, regulators or other actors to delay or deny necessary licences and permits; pause, reduce or retract government incentives for emissions reductions; disrupt or impact reliability as a result of policy decisions on types and pricing of energy available; or restrict the availability of oil and gas leases, investment opportunities or the operation of third-party infrastructure on which the company relies, such as pipelines to transport the company’s Upstream production to market or that supply feedstock to the company’s refineries.
Other factors that affect general economic conditions, such as changes in population growth rates, government regulation or austerity programs, national or regional trade tariffs, trade sanctions or trade controls, international monetary and currency exchange rate fluctuations, decoupling of economies, disruptions in trade alliances or military alliances, or a broader breakdown in global trade, security or public health issues and responses, extended government shutdowns, the inability to access debt markets due to rating, banking, or legal constraints, liquidity crises, de-dollarization in global trade or the growth or use of alternative common currencies, and other events or conditions that impair the functioning of financial markets and institutions, also pose risks to the company.
Other factors that affect general economic conditions, such as changes in population growth rates or living standards, government regulation or austerity programs, national or regional trade tariffs, trade sanctions or trade controls, international monetary and currency exchange rate fluctuations, decoupling of economies, disruptions to or realignment or breaking of current or historical military alliances, security or public health issues and responses, extended government shutdowns, the inability to access debt markets due to rating, banking, or legal constraints, liquidity crises, market bubbles and corrections, de-dollarization in global trade or the growth or use of alternative common currencies, and other events or conditions that impair the functioning of financial markets and institutions, also pose risks to the company, including risks to the safety of the company’s financial assets and to the ability of the company’s partners, suppliers and customers to fulfill their commitments to the company.
For example, increased supply from the development of new oil and gas supply sources and technologies to enhance recovery from existing sources tends to reduce commodity prices to the extent such supply increases are not offset by commensurate growth in demand. Similarly, increases in industry refining or petrochemical manufacturing capacity relative to demand tend to reduce margins on affected products.
For example, increased supply from the development of new or previously inaccessible oil and gas supply sources and technologies to enhance recovery from existing sources tends to reduce commodity prices to the extent such supply increases are not offset by commensurate growth in demand.
The Government of Alberta obtained federal equivalency for its Technology Innovation and Emissions Reduction Regulation (TIER) that came into effect in 2020 and applies to facilities with CO 2 emissions in excess of 100,000 tonnes per year. TIER is designed to reduce emissions by putting a price on nominally 10 percent of a facility’s emissions in 2020.
The Government of Alberta obtained federal equivalency for its Technology Innovation and Emissions Reduction Regulation (TIER) that came into effect in 2020 and applies to facilities with CO2 emissions in excess of 100,000 tonnes per year.
The company’s upstream and downstream operations may experience loss of production, slowdowns or shutdowns and increased costs due to the failure of interdependent systems, and substantial liabilities and other adverse impacts could result if the company’s management systems and controls do not function as intended.
The company’s Upstream and Downstream operations may experience loss of production, slowdowns or shutdowns and increased costs due to the failure of interdependent systems, and substantial liabilities and other adverse impacts could result if the company’s management systems and controls do not function as intended. 30 Preparedness The company’s operations have been and in the future may be disrupted by severe weather events, natural disasters, human error, cyberattacks, and similar events.
In addition, potential tariffs and retaliatory actions discussed above in this Item 1A under “Other supply-related factors” could have further inflationary impacts. Additional information regarding the potential future impact of market factors on the company's businesses is included or incorporated by reference under "Item 7A Quantitative and qualitative disclosures about market risk" in this report.
Additional information regarding the potential future impact of market factors on the company's businesses is included or incorporated by reference under "Item 7A Quantitative and qualitative disclosures about market risk" in this report.
The company’s ability to develop and deploy carbon capture and storage, hydrogen, lower-emission fuels, lithium, and other new energy technologies at commercial scale will depend in part on the continued development of stable and supportive government policies and markets.
Ultimately, market solutions with sound business fundamentals are necessary to incentivize and sustain wide-spread solutions that drive emissions reductions. The company’s ability to develop and deploy carbon capture and storage, hydrogen, lower-emission fuels, lithium, and other new energy technologies at commercial scale will depend in part on the development of stable and supportive government policies and markets.
The company may also be adversely affected by the outcome of litigation or arbitration resulting from its operations, including but not limited to proceedings in respect of greenhouse gas emissions and the promotion of the company’s products, or by government enforcement proceedings alleging non-compliance with applicable 28 laws or regulations.
Litigation The company may also be adversely affected by the outcome of litigation, including class actions or arbitrations, and by government investigations or enforcement, in respect of greenhouse gas emissions, the promotion of the company’s products, or alleged non-compliance with applicable laws or regulations.
Imperial’s reputation may also be harmed by events which negatively affect the image of the industry as a whole, including public and investor perception of Alberta oil sands in relation to greenhouse gas emissions, Indigenous rights and environmental impact.
Imperial’s reputation may also be harmed by events which negatively affect the image of the industry as a whole, including public and investor perception of Alberta oil sands in relation to greenhouse gas emissions, Indigenous rights and environmental impact. 31 Reserves The company’s future production and cash flows from bitumen, synthetic crude oil, liquids and natural gas reserves are highly dependent upon the company’s success in exploiting its current reserves.
Further, the adoption of regulations mandating efficiency standards, emission standards or the use of alternative fuels or uncompetitive fuel components, could affect the company’s operations. Many governments are providing tax advantages and other subsidies to support alternative energy sources or are mandating the use of specific fuels or technologies.
Many governments are providing tax advantages and other subsidies to support alternative energy sources or are mandating the use of specific fuels or technologies.
Changes and policies related to this act could adversely impact the company’s ability to progress new oil sands projects. Uncertainty exists regarding federal overreach into provincial jurisdiction to implement such changes and policies. In October 2023, the Supreme Court of Canada ruled that the Impact Assessment Act was unconstitutional in part.
Uncertainty exists regarding federal overreach into provincial jurisdiction to implement such changes and policies. In October 2023, the Supreme Court of Canada ruled that the Impact Assessment Act was unconstitutional in part. In November 2024, Alberta referred the constitutionality of the amended Impact Assessment Act to the Court of Appeal of Alberta.
Future changes in environmental legislation and the enforcement of regulations could occur and result in stricter standards and enforcement, larger fines, penalties and liability, and increased capital expenditures and operating costs, which could have a material adverse effect on the company’s financial condition or results of operations. 25 Risk management There are operational risks inherent in oil and gas exploration and production activities, as well as the potential to incur substantial financial liabilities, if the company does not manage those risks effectively.
Future changes in environmental legislation and the enforcement of regulations could occur and result in stricter standards and enforcement, larger fines, penalties and liability, and 25 increased capital expenditures and operating costs, which could have a material adverse effect on the company’s financial condition or results of operations.
In November 2024, Alberta referred the constitutionality of the amended Impact Assessment Act to the Court of Appeal of Alberta. The impact of this legislation is not fully apparent. International accords and underlying regional and national regulations covering climate change and greenhouse gas emissions continue to evolve with uncertain timing and outcome, making it difficult to predict their business impact.
International accords and underlying regional and national regulations covering climate change and greenhouse gas emissions continue to evolve with uncertain timing and outcome, making it difficult to predict their business impact.
Policy and market development The scale of the world’s energy system means that, in addition to developments in technology discussed above, any successful energy transition will require appropriate support from governments and private participants throughout the global economy. Ultimately, market solutions with sound business fundamentals are necessary to incentivize and sustain wide-spread solutions that drive emissions reductions.
Policy and market development The scale of the world’s energy system means that, in addition to developments in technology discussed above, meeting society’s needs for energy and reducing emissions will require appropriate support from governments and private participants throughout the global economy.
In the past, increased differentials have led the Government of Alberta to enact temporary mandatory production curtailment regulations that imposed production limits on large producers in Alberta, such as Imperial.
Additionally, in the past, increased differentials have led the Government of Alberta to enact temporary mandatory production curtailment regulations that imposed production limits on large producers in Alberta, such as Imperial; although the regulatory authority to impose curtailments was repealed at the end of 2021, the use of similar curtailment regulations in the future could have an adverse effect on the company’s business.
Compliance can be achieved by either blending renewable fuels with low carbon intensity or by purchasing credits. The Government of Canada's Impact Assessment Act links environmental assessment approvals to climate change-related goals, and has also discussed a goal of establishing legally-binding policies for being carbon-neutral by 2050.
The Government of Canada's Impact Assessment Ac t links environmental assessment approvals to climate change-related goals, and has also discussed a goal of establishing legally-binding policies for being carbon-neutral by 2050. Changes and policies related to this act could adversely impact the company’s ability to progress new oil sands projects.
Increases to diluent prices, relative to heavy crude oil prices, could also have an adverse effect on the company’s business. Other market factors Market factors may also result in losses from commodity derivatives and other instruments used to hedge price exposures or for trading purposes.
Other market factors Market factors may also result in losses from commodity derivatives and other instruments used to hedge price exposures or for commodity and treasury trading activities.
These onboard computer systems send real time information over a wireless network to a central server and database that displays real time information to central control room operators who manage the overall fleet’s operation. Computer automation systems are used to both maneuver the individual trucks and in an overarching truck assignment application which manages truck routing patterns.
The autonomous system is composed of perception systems, sensors and mechanical components on each truck, which feed information to a number of onboard computer systems. These onboard computer systems send real time information over a wireless network to a central server and database that displays real time information to central control room operators who manage the overall fleet’s operation.
The use of the autonomous system helps the company to capture productivity improvements while also reducing costs and further enhancing operational safety.
Computer automation systems are used to both maneuver the individual trucks and in an overarching truck assignment application which manages truck routing patterns. The use of the autonomous system helps the company to capture productivity improvements while also reducing costs and further enhancing operational safety.
To remain competitive, the company must also continuously adapt and capture the benefits of new technologies including growing the company’s capabilities to utilize digital data technologies (including but not limited to artificial intelligence technologies) to gain new business insights and support business operations. 29 There are risks associated with existing and new operations and projects that rely on new technology, including that the results of implementing the new technology may differ from simulated, piloted or expected results.
To remain competitive, the company must also continuously adapt and capture the benefits of new and emerging technologies, such as artificial intelligence, including growing the company’s capabilities to utilize digital data technologies to gain new business insights and support business decisions and operations.
For example, Russia's military action in Ukraine impacted global crude oil and gas supply levels and prices, and contributed to a volatile commodity environment ; and the potential for trade tariffs by the United States on Canadian goods and potential retaliatory actions by Canadian or provincial governments could impact market prices and demand for, and export volumes of, Canadian goods.
For example, Russia's military action in Ukraine impacted global crude oil and gas supply levels and prices, and contributed to a volatile commodity environment.
The company also maintains a disciplined framework of internal controls and applies a controls management system for monitoring compliance with this framework.
To manage these risks, the company applies rigorous management systems, including an integrated operations integrity management system framework, structured processes for equipment inspection, surveillance, maintenance and replacement, and ongoing enhancements to critical safeguards. The company also maintains a disciplined framework of internal controls and applies a controls management system for monitoring compliance with this framework.
The ability to insure risks is limited by the capacity of the applicable insurance markets, which may not be sufficient to cover the likely cost of a major adverse operating event. Accordingly, the company’s primary focus is on prevention, including through its rigorous operations integrity management system. The company’s future results will depend on the continued effectiveness of these efforts.
For example, the company's oil sands operations have in the past been particularly affected by extreme cold or wet weather and wildfires. The ability to insure risks is limited by the capacity of the applicable insurance markets, which may not be sufficient to cover the likely cost of a major adverse operating event.
Further, although inflationary pressures declined in Canada and other countries during 2024, moderate inflation levels have persisted and governments generally maintained elevated interest rates which may further impact the company through the availability of financing, cost of debt, and exchange rate fluctuations.
As inflationary pressures generally stabilized in Canada and other countries during 2025, many governments were able to lower interest rates over the period. Potential tariffs and retaliatory actions discussed above in this Item 1A under "Economic conditions" could reintroduce inflationary effects and may adversely impact the company through availability of financing, cost of debt, and exchange rate fluctuations.
Changes in taxation policy, such as the Government of Canada's tax on repurchases of equity that became effective from January 1, 2024, could impact the company’s financial results and ability to return surplus cash to shareholders.
Changes in taxation policy could impact the company’s financial results and ability to return surplus cash to shareholders. Further, the adoption of regulations mandating efficiency standards, emission standards, procurement standards, or the use of alternative fuels or uncompetitive fuel components, could affect the company’s operations.
Environmental hazards and risks, including severe weather, drought, forest fires and geological events, may impact the company’s operational performance. For example, the company's oil sands operations were particularly affected by extreme cold weather in 2022 and wildfires in 2016.
Risk management There are operational risks inherent in oil and gas exploration and production activities, as well as the potential to incur substantial financial liabilities, if the company does not manage those risks effectively. Environmental hazards and risks, including severe weather, drought, forest fires and geological events, may impact the company’s operational performance.
Removed
See also “Safety, business controls and environmental risk management” under “Operational and other factors” in this Item 1A below.
Added
Disruptions to or realignment or breaking of current or historical trade alliances or agreements or global trade and supply chain networks, changes in international trade patterns or shipping routes, or a broader breakdown in global trade, pose risks.
Removed
This percentage of priced emissions increased nominally to 11 percent in 2021 and 12 percent in 2022, with the oil sands mining and upgrading facilities increasing to 17 percent in 2021, 18 percent 26 in 2022 and 20 percent in 2023.
Added
During 2025, the United States announced a variety of trade-related actions, including the imposition of tariffs on imports from Canada and other countries. In response, Canada announced its own retaliatory tariffs. The United States and Canada have continued to discuss a potential end to or reduction in such tariffs, but the full impact and duration of such tariffs is uncertain.
Removed
These percentages increase by 2 percent per year for 2024 to 2028 (inclusive), followed by an increase of 4 percent in 2029 and 2030 for the oil sands sector.
Added
Furthermore, there remains a possibility of further escalation in the trade dispute, and there is uncertainty regarding the future status of existing international trade agreements to which Canada is a party, including the Canada-U.S.-Mexico Agreement on trade.
Removed
Operational efficiency An important component of Imperial’s competitive performance, especially given the commodity-based nature of the company’s business, is the ability to operate efficiently, including the company’s ability to manage expenses and improve production yields on an ongoing basis.
Added
Although the impact of such actions on Imperial and its partners, suppliers and customers is uncertain, such actions could depress economic activity, reduce demand for the company’s products, limit or disrupt supply chains, increase costs, reduce market prices and export volumes of the company’s products, or otherwise have a material adverse effect on the company’s business, financial condition or results of operations.
Removed
In 2023, the company’s Kearl site completed its multiyear program to convert its 81 haul trucks to autonomous operation. The autonomous system is composed of perception systems, sensors and mechanical components on each truck, which feed information to a number of onboard computer systems.
Added
Similarly, increases in industry refining or petrochemical manufacturing capacity relative to demand tend to reduce margins on affected products.
Removed
The company’s results depend on management’s ability to minimize these inherent risks, to effectively control business activities and to minimize the potential for human error. The company applies rigorous management systems, including a combined program of effective operations integrity management, ongoing upgrades, key equipment replacements, and comprehensive inspection and surveillance.
Added
There also may be new or emerging factors that could increase global oil, gas, and petrochemical supply levels in the short or long term, such as government policies and actions intended to boost or expand development of domestic or foreign oil and gas reserves or accelerate the pace of production reaching the market, including access to previously unavailable, sanctioned, or protected oil and gas resources or the availability or opening of new shipping routes.
Removed
Preparedness The company’s operations have been and in the future may be disrupted by severe weather events, natural disasters, human error, and similar events.
Added
Dynamic and unpredictable world events may lead to new oil and gas opportunities becoming available or current opportunities becoming less available or unavailable, and such events may adversely affect the company’s business and results to the extent that the company is unable to compete effectively for, or is excluded from, such opportunities or any new or existing investments result in reduced returns.
Removed
During 2024, the company responded to several cyber-attacks on suppliers and joint venture partners, none of which caused a material impact to Imperial. The company’s response included giving technical assistance, loaning equipment, and taking additional defensive measures.
Added
For example, the United States government has indicated it may reduce trade sanctions on Venezuela and take certain steps intended to increase the volume of crude oil produced in Venezuela, and either of these actions could adversely impact western Canadian crude oil price differentials compared to the U.S. Gulf Coast and therefore the company’s business.
Removed
Reserves The company’s future production and cash flows from bitumen, synthetic crude oil, liquids and natural gas reserves are highly dependent upon the company’s success in exploiting its current reserves.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe company takes a risk-based approach with respect to its third-party service providers, tailoring processes according to the nature and sensitivity of the data or systems accessed by such third-party service providers and performing additional risk screenings and procedures, as appropriate.
Biggest changeThe company takes a risk-based approach with respect to its third-party 32 service providers, tailoring processes according to the nature and sensitivity of the data or systems accessed by such third-party service providers and performing additional risk screenings and procedures, as appropriate.
Risk factors: Operational and other factors - Cybersecurity" in this report. 32 Item 2. Properties Reference is made to Item 1 above.
Risk factors: Operational and other factors - Cybersecurity" in this report. Item 2. Properties Reference is made to Item 1 above.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeItem 4. Mine safety disclosures 33 PART II 34 Item 5. Market for registrant’s common equity, related stockholder matters and issuer purchases of equity securities 34 Item 7. Management’s discussion and analysis of financial condition and results of operations 35 Item 7A. Quantitative and qualitative disclosures about market risk 35 Item 8. Financial statements and supplementary data 36
Biggest changeItem 4. Mine safety disclosures 33 PART II 34 Item 5. Market for registrant’s common equity, related stockholder matters and issuer purchases of equity securities 34 Item 7. Management’s discussion and analysis of financial condition and results of operations 35 Item 7A. Quantitative and qualitative disclosures about market risk 35 Item 8. Financial statements and supplementary data 35

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeReference is made to the sections under the "Company executives and executive compensation": • Entitled "Performance graph" within the "Compensation discussion and analysis" section on page 166 of this report; and • Entitled "Equity compensation plan information", within the "Compensation discussion and analysis", on page 177 of this report. 34 Issuer purchases of equity securities Total number of shares purchased Average price paid per share (Canadian dollars) (a) Total number of shares purchased as part of publicly announced plans or programs Maximum number of shares that may yet be purchased under the plans or programs (b) October 2024 (October 1 - October 31) 5,541,599 104.65 5,541,599 8,815,978 November 2024 (November 1 - November 30) 5,289,708 103.34 5,289,708 3,526,270 December 2024 (December 1 - December 31) 3,526,270 98.88 3,526,270 — (a) Excludes 2 percent tax on repurchases of equity.
Biggest changeReference is made to the sections under the "Company executives and executive compensation": • Entitled "Performance graph" within the "Compensation discussion and analysis" section on page 168 of this report; and • Entitled "Equity compensation plan information", within the "Compensation discussion and analysis", on page 181 of this report. 34 Issuer purchases of equity securities Total number of shares purchased Average price paid per share (Canadian dollars) (a) Total number of shares purchased as part of publicly announced plans or programs Maximum number of shares that may yet be purchased under the plans or programs (b) October 2025 (October 1 - October 31) 5,307,343 124.40 5,307,343 7,960,969 November 2025 (November 1 - November 30) 4,824,857 134.95 4,824,857 3,136,112 December 2025 (December 1 - December 31) 3,136,112 127.32 3,136,112 — (a) Excludes 2 percent tax on repurchases of equity.
The company will continue to evaluate the renewal of its normal course issuer bid share purchase program in June 2025 in the context of its overall capital activities. Purchase plans may be modified at any time without prior notice.
The company will continue to evaluate the renewal of its normal course issuer bid share purchase program in June 2026 in the context of its overall capital activities. Purchase plans may be modified at any time without prior notice.
Securities authorized for issuance under equity compensation plans Sections of the company’s management proxy circular are contained in the "Proxy information section", starting on page 111 . The company’s management proxy circular is prepared in accordance with Canadian securities regulations.
Securities authorized for issuance under equity compensation plans Sections of the company’s management proxy circular are contained in the "Proxy information section", starting on page 113 . The company’s management proxy circular is prepared in accordance with Canadian securities regulations.
As in the past, Exxon Mobil Corporation advised the company that it intended to participate to maintain its ownership percentage at approximately 69.6 percent. Imperial accelerated share purchases under the normal course issuer bid program, and the program completed on December 19, 2024 as a result of the company purchasing the maximum allowable number of shares under the program.
As in the past, Exxon Mobil Corporation advised the company that it intended to participate to maintain its ownership percentage at approximately 69.6 percent. Imperial accelerated share purchases under the normal course issuer bid program, and the program completed on December 17, 2025 as a result of the company purchasing the maximum allowable number of shares under the program.
(b) On June 24, 2024, the company announced by news release that it had received final approval from the Toronto Stock Exchange for a new normal course issuer bid to continue its then-existing share purchase program.
(b) On June 23, 2025, the company announced by news release that it had received final approval from the Toronto Stock Exchange for a new normal course issuer bid to continue its then-existing share purchase program.
The program enabled the company to purchase up to a maximum of 26,791,840 common shares during the period June 29, 2024 to June 28, 2025. This maximum included shares purchased under the normal course issuer bid from Exxon Mobil Corporation.
The program enabled the company to purchase up to a maximum of 25,452,248 common shares during the period June 29, 2025 to June 28, 2026. This maximum included shares purchased under the normal course issuer bid from Exxon Mobil Corporation.
The symbol for the company’s common shares on these exchanges is IMO. As of February 14, 2025 there were 8,558 holders of record of common shares of the company.
The symbol for the company’s common shares on these exchanges is IMO. As of February 11, 2026 there were 8,219 holders of record of common shares of the company.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe actual impact of future market changes could differ materially due to, among other things, factors discussed in this report. 35
Biggest changeThe actual impact of future market changes could differ materially due to, among other things, factors discussed in this report.