Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2020shares | |
Cover [Abstract] | |
Document Type | 40-F |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Dec. 31, 2020 |
Entity Registrant Name | CANADIAN NATURAL RESOURCES LIMITED |
Entity Common Stock, Shares Outstanding (in shares) | 1,183,866,290 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Central Index Key | 0001017413 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Emerging Growth Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 184 | $ 139 |
Accounts receivable | 2,190 | 2,465 |
Current income taxes receivable | 309 | 13 |
Inventory | 1,060 | 1,152 |
Prepaids and other | 231 | 174 |
Investments | 305 | 490 |
Current portion of other long-term assets | 82 | 54 |
Current assets | 4,361 | 4,487 |
Non-current assets | ||
Exploration and evaluation assets | 2,436 | 2,579 |
Property, plant and equipment | 65,752 | 68,043 |
Lease assets | 1,645 | 1,789 |
Other long-term assets | 1,082 | 1,223 |
Assets | 75,276 | 78,121 |
Current liabilities | ||
Accounts payable | 667 | 816 |
Accrued liabilities | 2,346 | 2,611 |
Current portion of long-term debt | 1,343 | 2,391 |
Current portion of other long-term liabilities | 722 | 819 |
Current liabilities | 5,078 | 6,637 |
Non-current liabilities | ||
Long-term debt | 20,110 | 18,591 |
Other long-term liabilities | 7,564 | 7,363 |
Deferred income taxes | 10,144 | 10,539 |
Liabilities | 42,896 | 43,130 |
SHAREHOLDERS’ EQUITY | ||
Share capital | 9,606 | 9,533 |
Retained earnings | 22,766 | 25,424 |
Accumulated other comprehensive income | 8 | 34 |
Shareholders' equity | 32,380 | 34,991 |
Liabilities and shareholders' equity | $ 75,276 | $ 78,121 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Loss) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Profit or loss [abstract] | |||
Product sales | $ 17,491 | $ 24,394 | $ 22,282 |
Less: royalties | (598) | (1,523) | (1,255) |
Revenue | 16,893 | 22,871 | 21,027 |
Expenses | |||
Production | 6,280 | 6,277 | 6,464 |
Transportation, blending and feedstock | 4,498 | 4,699 | 4,189 |
Depletion, depreciation and amortization | 6,046 | 5,546 | 5,161 |
Administration | 391 | 344 | 325 |
Share-based compensation | (82) | 223 | (146) |
Asset retirement obligation accretion | 205 | 190 | 186 |
Interest and other financing expense | 756 | 836 | 739 |
Risk management activities | (7) | 77 | (134) |
Foreign exchange (gain) loss | (275) | (570) | 827 |
Gain on acquisition, disposition and revaluation | (217) | 0 | (452) |
Loss from investments | 171 | 293 | 346 |
Total expenses | 17,766 | 17,915 | 17,505 |
Earnings (loss) before taxes | (873) | 4,956 | 3,522 |
Current income tax (recovery) expense | (257) | 434 | 374 |
Deferred income tax (recovery) expense | (181) | (894) | 557 |
Net earnings (loss) | $ (435) | $ 5,416 | $ 2,591 |
Net earnings (loss) per common share | |||
Basic earnings per share (in CAD per share) | $ (0.37) | $ 4.55 | $ 2.13 |
Diluted earnings per share (in CAD per share) | $ (0.37) | $ 4.54 | $ 2.12 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of comprehensive income [abstract] | |||
Net earnings (loss) | $ (435) | $ 5,416 | $ 2,591 |
Net change in derivative financial instruments designated as cash flow hedges | |||
Unrealized income, net of taxes of $2 million (2019 – $13 million, 2018 – $nil) | 13 | 99 | 5 |
Reclassification to net earnings (loss), net of taxes of $2 million (2019 – $5 million, 2018 – $6 million) | (15) | (41) | (39) |
Net change in derivative financial instruments designated as cash flow hedges | (2) | 58 | (34) |
Foreign currency translation adjustment | |||
Translation of net investment | (24) | (146) | 224 |
Other comprehensive income (loss), net of taxes | (26) | (88) | 190 |
Comprehensive income (loss) | $ (461) | $ 5,328 | $ 2,781 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of comprehensive income [abstract] | |||
Unrealized income (loss), tax | $ (2,000,000) | $ (13,000,000) | $ 0 |
Reclassification to net earnings (loss), tax | $ 2,000,000 | $ 5,000,000 | $ 6,000,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - CAD ($) $ in Millions | Total | Share capital | Retained earnings | Accumulated other comprehensive income (loss) |
Balance – beginning of year at Dec. 31, 2017 | $ 9,109 | $ 22,612 | $ (68) | |
Issued upon exercise of stock options | 332 | |||
Previously recognized liability on stock options exercised for common shares | 120 | |||
Purchase of common shares under Normal Course Issuer Bid | (238) | (1,044) | ||
Net earnings (loss) | $ 2,591 | 2,591 | ||
Dividends on common shares | (1,630) | |||
Other comprehensive income (loss), net of taxes | 190 | 190 | ||
Balance – end of year at Dec. 31, 2018 | 31,974 | 9,323 | 22,529 | 122 |
Issued upon exercise of stock options | 360 | |||
Previously recognized liability on stock options exercised for common shares | 53 | |||
Purchase of common shares under Normal Course Issuer Bid | (203) | (738) | ||
Net earnings (loss) | 5,416 | 5,416 | ||
Dividends on common shares | (1,783) | |||
Other comprehensive income (loss), net of taxes | (88) | (88) | ||
Balance – end of year at Dec. 31, 2019 | 34,991 | 9,533 | 25,424 | 34 |
Issued upon exercise of stock options | 108 | |||
Previously recognized liability on stock options exercised for common shares | 21 | |||
Purchase of common shares under Normal Course Issuer Bid | (271) | (56) | (215) | |
Net earnings (loss) | (435) | (435) | ||
Dividends on common shares | (2,008) | |||
Other comprehensive income (loss), net of taxes | (26) | (26) | ||
Balance – end of year at Dec. 31, 2020 | $ 32,380 | $ 9,606 | $ 22,766 | $ 8 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Operating activities | ||||
Net earnings (loss) | $ (435) | $ 5,416 | $ 2,591 | |
Non-cash items | ||||
Depletion, depreciation and amortization | 6,046 | 5,546 | 5,161 | |
Share-based compensation | (82) | 223 | (146) | |
Asset retirement obligation accretion | 205 | 190 | 186 | |
Unrealized risk management (gain) loss | (39) | 13 | (35) | |
Unrealized foreign exchange (gain) loss | (116) | (548) | 706 | |
Realized foreign exchange gain on settlement of cross currency swaps | (166) | 0 | 0 | |
Realized foreign exchange loss on repayment of US dollar debt securities | 0 | 0 | 146 | |
Gain on acquisition, disposition and revaluation | (217) | 0 | (452) | |
Loss from investments | 185 | 321 | 374 | |
Deferred income tax (recovery) expense | (181) | (894) | 557 | |
Other | (71) | (109) | (23) | |
Abandonment expenditures | (249) | (296) | (290) | |
Net change in non-cash working capital | (166) | (1,033) | 1,346 | |
Cash flows from operating activities | 4,714 | 8,829 | 10,121 | |
Financing activities | ||||
Issue (repayment) of bank credit facilities and commercial paper, net | 338 | 2,025 | (1,595) | |
Repayment of medium-term notes | (1,100) | (1,000) | 0 | |
Issue (repayment) of US dollar debt securities | 1,481 | 0 | (1,236) | |
Settlement of Painted Pony long-term debt | (397) | 0 | 0 | |
Proceeds on settlement of cross currency swaps | 166 | 0 | 0 | |
Payment of lease liabilities | (225) | (237) | ||
Issue of common shares on exercise of stock options | 108 | 360 | 332 | |
Dividends on common shares | (1,950) | (1,743) | (1,562) | |
Purchase of common shares under Normal Course Issuer Bid | (271) | (941) | (1,282) | |
Cash flows used in financing activities | (1,850) | (1,536) | (5,343) | |
Investing activities | ||||
Net expenditures on exploration and evaluation assets | (5) | (73) | (266) | |
Net expenditures on property, plant and equipment | (2,555) | (3,535) | (4,175) | |
Repayment of NWRP subordinated debt advances | 124 | 0 | 0 | |
Investment in other long-term assets | 0 | 0 | (28) | |
Net change in non-cash working capital | (383) | (235) | (345) | |
Cash flows used in investing activities | (2,819) | (7,255) | (4,814) | |
Increase (decrease) in cash and cash equivalents | 45 | 38 | (36) | |
Cash and cash equivalents – beginning of year | 139 | 101 | 137 | |
Cash and cash equivalents – end of year | 184 | 139 | 101 | |
Supplemental Cash Flow Information [Abstract] | ||||
Interest paid on long-term debt, net | 745 | 865 | 911 | |
Income taxes (received) paid | (29) | 445 | (225) | |
Devon | ||||
Investing activities | ||||
Acquisition of Devon assets | [1] | $ 0 | (3,412) | $ 0 |
Supplemental Cash Flow Information [Abstract] | ||||
Other working capital | $ 195 | |||
[1] | The acquisition of assets from Devon Canada Corporation ("Devon") in 2019 includes net working capital and other long-term assets of $195 million (note 7). |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Accounting Policies | Accounting Policies Canadian Natural Resources Limited (the "Company") is a senior independent crude oil and natural gas exploration, development and production company. The Company’s exploration and production operations are focused in North America, largely in Western Canada; the United Kingdom ("UK") portion of the North Sea; and Côte d’Ivoire and South Africa in Offshore Africa. The "Oil Sands Mining and Upgrading" segment produces synthetic crude oil through bitumen mining and upgrading operations at Horizon Oil Sands ("Horizon") and through the Company's direct and indirect interest in Athabasca Oil Sands Project ("AOSP"). Within Western Canada, in the "Midstream and Refining" segment, the Company maintains certain activities that include pipeline operations, an electricity co-generation system and an investment in the North West Redwater Partnership ("NWRP"), a general partnership formed to upgrade and refine bitumen in the Province of Alberta. The Company was incorporated in Alberta, Canada. The address of its registered office is 2100, 855 - 2 Street S.W., Calgary, Alberta, Canada. The Company’s consolidated financial statements and the related notes have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The accounting policies adopted by the Company under IFRS are set out below. The Company has consistently applied the same accounting policies throughout all periods presented, except where IFRS permits new accounting standards to be adopted prospectively. Changes in the Company's accounting policies are discussed in note 2. (A) PRINCIPLES OF CONSOLIDATION The consolidated financial statements have been prepared under the historical cost basis, unless otherwise required. The consolidated financial statements include the accounts of the Company and all of its subsidiary companies and wholly owned partnerships. Subsidiaries include all entities over which the Company has control. Subsidiaries are consolidated from the date on which the Company obtains control. They are deconsolidated from the date that control ceases. Certain of the Company’s activities are conducted through joint arrangements in which two or more parties have joint control. Where the Company has determined that it has a direct ownership interest in jointly controlled assets and obligations for the liabilities (a "joint operation"), the assets, liabilities, revenue and expenses related to the joint operation are included in the consolidated financial statements in proportion to the Company’s interest. Where the Company has determined that it has an interest in jointly controlled entities (a "joint venture"), it uses the equity method of accounting. Under the equity method, the Company’s initial and subsequent investments are recognized at cost and subsequently adjusted for the Company’s share of the joint venture’s income or loss, less distributions received. If the Company’s share of the joint venture’s loss equals or exceeds its interest in the joint venture, the Company discontinues recognizing its share of further losses. The Company resumes recognizing profits when its share of profits exceeds the accumulated share of losses not recognized. Joint ventures accounted for using the equity method of accounting are tested for impairment whenever objective evidence indicates that the carrying amount of the investment may not be recoverable. Indications of impairment include a history of losses, significant capital expenditure overruns, liquidity concerns, financial restructuring of the investee or significant adverse changes in the technological, economic or legal environment. The amount of the impairment is measured as the difference between the carrying amount of the investment and the higher of its fair value less costs of disposal and its value in use. Impairment losses are reversed in subsequent periods if the amount of the loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized. (B) SEGMENTED INFORMATION Operating segments have been determined based on the nature of the Company’s activities and the geographic locations in which the Company operates, and are consistent with the level of information regularly provided to and reviewed by the Company’s chief operating decision makers. (C) CASH AND CASH EQUIVALENTS Cash comprises cash on hand and demand deposits. Other investments (term deposits and certificates of deposit) with an original term to maturity at purchase of three months or less are reported as cash equivalents in the consolidated balance sheets. (D) INVENTORY Inventory is primarily comprised of product inventory and materials and supplies and is carried at the lower of cost and net realizable value. Product inventory is comprised of crude oil held for sale, including pipeline linefill and crude oil stored in floating production, storage and offloading vessels ("FPSO"). Cost of product inventory consists of purchase costs, direct production costs, directly attributable overhead and depletion, depreciation and amortization and is determined on a first-in, first-out basis. Net realizable value for product inventory is determined by reference to forward prices. Cost for materials and supplies consists of purchase costs and is based on a first-in, first-out or an average cost basis. Net realizable value for materials and supplies is determined by reference to current market prices. (E) EXPLORATION AND EVALUATION ASSETS Exploration and evaluation ("E&E") assets consist of the Company’s crude oil and natural gas exploration projects that are pending the determination of proved reserves. E&E costs are initially capitalized and include costs directly associated with the acquisition of licenses, technical services and studies, seismic acquisition, exploration drilling and evaluation, overhead and administration expenses, and the estimate of any asset retirement costs. E&E costs do not include general prospecting or evaluation costs incurred prior to having obtained the legal rights to explore an area. These costs are recognized in net earnings. Once the technical feasibility and commercial viability of E&E assets are determined and a development decision is made by management, the E&E assets are tested for impairment upon reclassification to property, plant and equipment. The technical feasibility and commercial viability of extracting a mineral resource is considered to be determined when an assessment of proved reserves is made. An E&E asset is derecognized upon disposal or when no future economic benefits are expected to arise from its use. Any gain or loss arising on derecognition of the asset is recognized in net earnings within depletion, depreciation and amortization. E&E assets are also tested for impairment when facts and circumstances suggest that the carrying amount of E&E assets may exceed their recoverable amount, by comparing the relevant costs to the fair value of the related Cash Generating Units ("CGUs"), aggregated at a segment level. Indications of impairment include leases approaching expiry, the existence of low benchmark commodity prices for an extended period of time, significant downward revisions in estimated probable reserves volumes, significant increases in estimated future exploration or development expenditures, or significant adverse changes in the applicable legislative or regulatory frameworks. (F) PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment is measured at cost less accumulated depletion and depreciation and impairment provisions. Assets under construction are not depleted or depreciated until available for their intended use. Exploration and Production The cost of an asset comprises its acquisition costs, construction and development costs, costs directly attributable to bringing the asset into operation, the estimate of any asset retirement costs, and applicable borrowing costs. Property acquisition costs are comprised of the aggregate amount paid and the fair value of any other consideration given to acquire the asset. When significant components of an item of property, plant and equipment, including crude oil and natural gas interests, have different useful lives, they are accounted for separately. Crude oil and natural gas properties are depleted using the unit-of-production method over proved reserves, except for certain major components, which are depreciated using a straight-line method over their estimated useful lives. The unit-of-production depletion rate takes into account expenditures incurred to date, together with future development expenditures required to develop proved reserves. Oil Sands Mining and Upgrading Capitalized costs for the Oil Sands Mining and Upgrading segment are reported separately from the Company’s North America Exploration and Production segment. Capitalized costs include acquisition costs, construction and development costs, costs directly attributable to bringing the asset into operation, the estimate of any asset retirement costs, and applicable borrowing costs. Mine-related costs are depleted using the unit-of-production method based on proved reserves. Costs of the upgraders and related infrastructure located on the Horizon and AOSP sites are depreciated on the unit-of-production method based on the estimated productive capacity of the respective upgraders and related infrastructure. Other equipment is depreciated on a straight-line basis over its estimated useful life ranging from 2 to 18 years. Midstream, Refining and Head Office The Company capitalizes all costs that expand the capacity or extend the useful life of the midstream, refining and head office assets. Midstream and Refining assets are depreciated on a straight-line basis over their estimated useful lives ranging from 5 to 30 years. Head office assets are depreciated on a declining balance basis. Useful lives The depletion rates and expected useful lives of property, plant and equipment are reviewed on an annual basis, with changes in depletion rates and useful lives accounted for prospectively. Derecognition A property, plant and equipment asset is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognized in net earnings within depletion, depreciation and amortization. Major maintenance expenditures Inspection costs associated with major maintenance turnarounds are capitalized and depreciated over the period to the next major maintenance turnaround. Maintenance costs are expensed as incurred. Impairment The Company assesses property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be recoverable. Indications of impairment include the existence of low benchmark commodity prices for an extended period of time, significant downward revisions of estimated reserves volumes, significant increases in estimated future development expenditures, or significant adverse changes in the applicable legislative or regulatory frameworks. If an indication of impairment exists, the Company performs an impairment test related to the assets. Individual assets are grouped for impairment assessment purposes into CGUs, which are the lowest level at which there are identifiable cash inflows that are largely independent of the cash inflows of other groups of assets. A CGU's recoverable amount is the higher of its fair value less costs of disposal and its value in use. Where the carrying amount of a CGU exceeds its recoverable amount, the CGU is considered impaired and is written down to its recoverable amount through depletion, depreciation and amortization expense. In subsequent periods, an assessment is made at each reporting date to determine whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is re-estimated and the net carrying amount of the asset is increased to its revised recoverable amount. The revised recoverable amount cannot exceed the carrying amount that would have been determined, net of depletion, depreciation and amortization, had no impairment loss been recognized for the asset in prior periods. A reversal of impairment is recognized in net earnings. After a reversal, the depletion, depreciation and amortization charge is adjusted in future periods to allocate the asset’s revised carrying amount over its remaining useful life. (G) BUSINESS COMBINATIONS Business combinations are accounted for using the acquisition method. Assets acquired and liabilities assumed in a business combination are recognized at their fair value at the date of the acquisition. Any excess of the consideration paid over the fair value of the net assets acquired is recognized as an asset. Any excess of the fair value of the net assets acquired over the consideration paid is recognized in net earnings. (H) OVERBURDEN REMOVAL COSTS Overburden removal costs incurred during the initial development of a mine at Horizon and AOSP are capitalized to property, plant and equipment. Overburden removal costs incurred during the production of a mine are included in the cost of inventory, unless the overburden removal activity has resulted in a probable inflow of future economic benefits to the Company, in which case the costs are capitalized to property, plant and equipment. Capitalized overburden removal costs are depleted over the life of the mining reserves that directly benefit from the overburden removal activity. (I) CAPITALIZED BORROWING COSTS Borrowing costs attributable to the acquisition, construction or production of qualifying assets are capitalized to the cost of those assets until such time as the assets are substantially available for their intended use. Qualifying assets are comprised of those significant assets that require a period greater than one year to be available for their intended use. All other borrowing costs are recognized in net earnings. (J) LEASES At inception of a contract, the Company assesses whether a contract is, or contains a lease. A contract is, or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: the contract involves the use of an identified asset; the Company has the right to obtain substantially all of the economic benefits from the use of the asset throughout the period of use; and, the Company has the right to direct the use of the asset. The Company recognizes a lease asset and a lease liability at the commencement date of the lease contract, which is the date that the lease asset is available to the Company. The lease asset is initially measured at cost. The cost of a lease asset includes the amount of the initial measurement of the lease liability, lease payments made prior to the commencement date, initial direct costs and estimates of the asset retirement obligation, if any. Subsequent to initial recognition, the lease asset is depreciated using the straight-line method over the earlier of the end of the useful life of the lease asset or the lease term. Lease liabilities are initially measured at the present value of lease payments discounted at the rate implicit in the lease, or if not readily determinable, the Company's incremental borrowing rate. Lease payments include fixed lease payments, variable lease payments based on indices or rates, residual value guarantees, and purchase options expected to be exercised. Subsequent to initial recognition, the lease liability is measured at amortized cost using the effective interest method. Lease liabilities are remeasured if there are changes in the lease term or if the Company changes its assessment of whether it is reasonably certain it will exercise a purchase, extension or termination option. Lease liabilities are also remeasured if there are changes in the estimate of the amounts payable under the lease due to changes in indices or rates, or residual value guarantees. Lease assets are reported in a separate caption in the consolidated balance sheet. Lease liabilities are reported within other long-term liabilities in the consolidated balance sheet. Depreciation on lease assets used in the construction of property, plant and equipment is capitalized to the cost of those assets over their period of use until such time as the property, plant and equipment is substantially available for its intended use. Where the Company acts as the operator of a joint operation, the Company recognizes 100% of the related lease asset and lease liability. As the Company recovers its joint operation partners' share of the costs of the lease contract, these recoveries are recognized as other income in the consolidated statements of earnings. On January 1, 2019 the Company adopted IFRS 16 "Leases" and as permitted in the transition requirements of the standard, the Company continues to account for leases for the year ended December 31, 2018 in accordance with the Company's previous accounting policy for leases as follows: Finance leases, which transfer substantially all of the risks and rewards incidental to ownership of the leased item to the Company, are capitalized at the commencement of the lease term at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Capitalized leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term. Operating lease payments are recognized in net earnings over the lease term. (K) ASSET RETIREMENT OBLIGATIONS The Company provides for asset retirement obligations on all of its property, plant and equipment and certain exploration and evaluation assets based on current legislation and industry operating practices. Provisions for asset retirement obligations related to property, plant and equipment are recognized as a liability in the period in which they are incurred. Provisions are measured at the present value of management’s best estimate of expenditures required to settle the obligation as at the date of the balance sheets. Subsequent to the initial measurement, the obligation is adjusted to reflect the passage of time, changes in credit adjusted interest rates, and changes in the estimated future cash flows underlying the obligation. The increase in the provision due to the passage of time is recognized as asset retirement obligation accretion expense whereas changes due to discount rates or estimated future cash flows are capitalized to or derecognized from property, plant and equipment. Actual costs incurred upon settlement of the asset retirement obligation are charged against the provision. (L) FOREIGN CURRENCY TRANSLATION Functional and presentation currency Items included in the financial statements of the Company’s subsidiary companies and partnerships are measured using the currency of the primary economic environment in which the subsidiary operates (the "functional currency"). The consolidated financial statements are presented in Canadian dollars, which is the Company’s functional currency. The assets and liabilities of subsidiaries that have a functional currency different from that of the Company are translated into Canadian dollars at the closing rate at the date of the balance sheets, and revenue and expenses are translated at the average rate for the period. Cumulative foreign currency translation adjustments are recognized in other comprehensive income. When the Company disposes of its entire interest in a foreign operation, or loses control, joint control, or significant influence over a foreign operation, the foreign currency gains or losses accumulated in other comprehensive income related to the foreign operation are recognized in net earnings. Transactions and balances Foreign currency transactions are translated into the functional currency of the Company and its subsidiaries and partnerships using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at balance sheet date exchange rates of monetary assets and liabilities denominated in currencies other than the functional currency are recognized in net earnings. (M) REVENUE RECOGNITION AND COSTS OF GOODS SOLD Revenue from the sale of crude oil and NGLs and natural gas products is recognized when performance obligations in the sales contract are satisfied and it is probable that the Company will collect the consideration to which it is entitled. Performance obligations are generally satisfied at the point in time when the product is delivered to a location specified in a contract and control passes to the customer. The Company assesses customer creditworthiness, both before entering into contracts and throughout the revenue recognition process. Contracts for sale of the Company’s products generally have terms of less than a year, with certain contracts extending beyond one year. Contracts in North America generally specify delivery of crude oil and NGLs and natural gas throughout the term of the contract. Contracts in the North Sea and Offshore Africa generally specify delivery of crude oil at a point in time. Sales of the Company’s crude oil and NGLs and natural gas products to customers are made pursuant to contracts based on prevailing commodity pricing at or near the time of delivery and volumes of product delivered. Revenues are typically collected in the month following delivery and accordingly, the Company has elected to apply the practical expedient to not adjust consideration for the effects of a financing component. Purchases and sales of crude oil and NGLs and natural gas with the same counterparty, made to facilitate sales to customers or potential customers, that are entered into in contemplation of one another, are combined and recorded as non-monetary exchanges and measured at the net settlement amount. Revenue in the consolidated statement of earnings represents the Company’s share of product sales net of royalty payments to governments and other mineral interest owners. The Company discloses the disaggregation of revenues from sales of crude oil and NGLs and natural gas in the segmented information in note 22. Related costs of goods sold are comprised of production, transportation, blending and feedstock, and depletion, depreciation and amortization expenses. These amounts have been separately presented in the consolidated statements of earnings. (N) PRODUCTION SHARING CONTRACTS Production generated from Côte d’Ivoire and Gabon in Offshore Africa is shared under the terms of various Production Sharing Contracts ("PSCs"). Product sales are divided into cost recovery oil and profit oil. Cost recovery oil allows the Company to recover its capital and production costs and the costs carried by the Company on behalf of the respective government state oil companies (the "Governments"). Profit oil is allocated to the joint venture partners in accordance with their respective equity interests, after a portion has been allocated to the Governments. The Governments’ share of profit oil attributable to the Company’s equity interest is allocated to royalty expense and current income tax expense in accordance with the terms of the respective PSCs. (O) INCOME TAX The Company follows the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized based on the estimated income tax effects of temporary differences in the carrying amount of assets and liabilities in the consolidated financial statements and their respective tax bases. Deferred income tax assets and liabilities are calculated using the substantively enacted income tax rates that are expected to apply when the asset or liability is recovered. Deferred income tax assets or liabilities are not recognized when they arise on the initial recognition of an asset or liability in a transaction (other than in a business combination) that, at the time of the transaction, affects neither accounting nor taxable profit. Deferred income tax assets or liabilities are also not recognized on possible future distributions of retained earnings of subsidiaries where the timing of the distribution can be controlled by the Company and it is probable that a distribution will not be made in the foreseeable future, or when distributions can be made without incurring income taxes. Deferred income tax assets for deductible temporary differences and tax loss carryforwards are recognized to the extent that it is probable that future taxable profits will be available against which the temporary differences or tax loss carryforwards can be utilized. The carrying amount of deferred income tax assets is reviewed at each reporting date, and is reduced if it is no longer probable that sufficient future taxable profits will be available against which the temporary differences or tax loss carryforwards can be utilized. Current income tax is calculated based on net earnings for the period, adjusted for items that are non-taxable or taxed in different periods, using income tax rates that are substantively enacted at each reporting date. Income taxes are recognized in net earnings or other comprehensive income, consistent with the items to which they relate. (P) SHARE-BASED COMPENSATION The Company’s Stock Option Plan (the "Option Plan") provides current employees with the right to elect to receive common shares or a cash payment in exchange for stock options surrendered. The liability for awards granted to employees is initially measured based on the grant date fair value of the awards and the number of awards expected to vest. The awards are remeasured each reporting period for subsequent changes in the fair value of the liability. Fair value is determined using the Black-Scholes valuation model under a graded vesting method. Expected volatility is estimated based on historic results. When stock options are surrendered for cash, the cash settlement paid reduces the outstanding liability. When stock options are exercised for common shares under the Option Plan, consideration paid by the employee and any previously recognized liability associated with the stock options are recorded as share capital. The Performance Share Unit ("PSU") plan provides certain executive employees of the Company with the right to receive a cash payment, the amount of which is determined by individual employee performance and the extent to which certain other performance measures are met. PSUs vest three years from original grant date. The liability for PSUs is initially measured in reference to the Company's stock price and the number of awards expected to vest and is remeasured at each reporting period for changes in the fair value of the liability. The unamortized costs of employer contributions to the Company’s share bonus program are included in other long-term assets . (Q) FINANCIAL INSTRUMENTS The Company classifies its financial instruments into one of the following categories: financial assets at amortized cost; financial liabilities at amortized cost; and fair value through profit or loss. All financial instruments are measured at fair value on initial recognition. Measurement in subsequent periods is dependent on the classification of the respective financial instrument. Fair value through profit or loss financial instruments are subsequently measured at fair value with changes in fair value recognized in net earnings. All other categories of financial instruments are measured at amortized cost using the effective interest method. Cash and cash equivalents, accounts receivable and certain other long-term assets are classified as financial assets at amortized cost since it is the Company’s intention to hold these assets to maturity and the related cash flows are solely comprised of payments of principal and interest. Investments in publicly traded shares are classified as fair value through profit or loss. Accounts payable, accrued liabilities, certain other long-term liabilities, and long-term debt are classified as financial liabilities at amortized cost. Risk management assets and liabilities are classified as fair value through profit or loss. Financial assets and liabilities are also categorized using a three-level hierarchy that reflects the significance of the inputs used in making fair value measurements for these assets and liabilities. The fair values of financial assets and liabilities included in Level 1 are determined by reference to quoted prices in active markets for identical assets and liabilities. Fair values of financial assets and liabilities in Level 2 are based on inputs other than Level 1 quoted prices that are observable for the asset or liability either directly (as prices) or indirectly (derived from prices). The fair values of Level 3 financial assets and liabilities are not based on observable market data. The disclosure of the fair value hierarchy excludes financial assets and liabilities where book value approximates fair value due to the liquid nature of the asset or liability. Transaction costs in respect of financial instruments at fair value through profit or loss are recognized in net earnings. Transaction costs in respect of other financial instruments are included in the initial measurement of the financial instrument. Impairment of financial assets At each reporting date, on a forward looking basis, the Company assesses the expected credit losses associated with its financial assets carried at amortized cost. Expected credit losses are measured as the difference between the cash flows that are due to the Company and the cash flows that the Company expects to receive, discounted at the effective interest rate determined at initial recognition. For trade accounts receivable, the Company applies the simplified approach permitted by IFRS 9, which requires expected lifetime credit losses to be recognized from initial recognition of the receivables. To measure expected credit losses, accounts receivable are grouped based on the number of days the receivables have been outstanding and internal credit assessments of the customers. Credit risk for longer-term receivables is assessed based on an external credit rating of the counterparty. For longer-term receivables with credit risk that has not increased significantly since the date of recognition, the Company measures the expected credit loss as the 12-month expected credit loss. Changes in the provision for expected credit loss are recognized in net earnings. (R) RISK MANAGEMENT ACTIVITIES The Company periodically uses derivative financial instruments to manage its commodity price, foreign currency and interest rate exposures. These financial instruments are entered into solely for hedging purposes and are not used for speculative purposes. All derivative financial instruments are recognized in the consolidated balance sheets at their estimated fair value. The estimated fair value of derivative financial instruments has been determined based on appropriate internal valuation methodologies and/or third party indications. Fair values determined using valuation models require the use of assumptions concerning the amount and timing of future cash flows, discount rates and credit risk. In determining these assumptions, the Company primarily relied on external, readily-observable market inputs including quoted commodity prices and volatility, interest rate yield curves, and foreign exchange rates. The carrying amount of a risk management liability is adjusted for the Company’s own credit risk. The Company documents all derivative financial instruments that are formally designated as hedging transactions at the inception of the hedging relationship, in accordance with the Company’s risk management policies. The effectiveness of the hedging relationship is evaluated, both at inception of the hedge and on an ongoing basis. The Company periodically enters into commodity price contracts to manage anticipated sales and purchases of crude oil and natural gas in order to protect its cash flow for its capital expenditure programs. The effective portion of changes in the fair valu |
Changes in Accounting Policies
Changes in Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Changes in Accounting Policies | Changes in Accounting Policies In October 2018, the IASB issued amendments to IFRS 3 "Definition of a Business" that narrowed and clarified the definition of a business. The amendments permit a simplified assessment of whether an acquired set of activities and assets is a group of assets rather than a business. The amendments apply to business combinations after the date of adoption. The Company prospectively adopted the amendments on January 1, 2020. In October 2018, the IASB issued amendments to IAS 1 "Presentation of Financial Statements" and IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors". The amendments make minor changes to the definition of the term "material" and align the definition across all IFRS Standards. Materiality is used in making judgements related to the preparation of financial statements. The Company prospectively adopted the amendments on January 1, 2020. In January 2020, the IASB issued amendments to IAS 1 "Presentation of Financial Statements" to clarify that liabilities are classified as either current or non-current, depending on the existence of the substantive right at the end of the reporting period for an entity to defer settlement of the liability for at least twelve months after the reporting period. The amendments are effective January 1, 2023 with early adoption permitted. The amendments are required to be adopted retrospectively. The Company is assessing the impact of these amendments on its consolidated financial statements. In May 2020, the IASB issued amendments to IAS 16 “Property, Plant and Equipment” to require proceeds received from selling items produced while the entity is preparing the asset for its intended use to be recognized in net earnings, rather than as a reduction in the cost of the asset. The amendments are effective January 1, 2022 with early adoption permitted. The Company is assessing the impact of these amendments on its consolidated financial statements. In August 2020, the IASB issued Interest Rate Benchmark Reform (Phase 2) in response to the Financial Stability Board’s mandated reforms to InterBank Offered Rates (“IBORs”), with financial regulators proposing that they be replaced by a number of new local currency denominated alternative benchmark rates. The amendments are effective for annual periods beginning on or after January 1, 2021 and are to be applied retrospectively, with early adoption permitted. The Company is assessing the impact of IBOR reform and the IASB amendments and does not expect that these amendments will have a significant impact on the Company's consolidated financial statements. |
Accounting Standards Issued But
Accounting Standards Issued But Not Yet Applied | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Accounting Standards Issued But Not Yet Applied | Changes in Accounting Policies In October 2018, the IASB issued amendments to IFRS 3 "Definition of a Business" that narrowed and clarified the definition of a business. The amendments permit a simplified assessment of whether an acquired set of activities and assets is a group of assets rather than a business. The amendments apply to business combinations after the date of adoption. The Company prospectively adopted the amendments on January 1, 2020. In October 2018, the IASB issued amendments to IAS 1 "Presentation of Financial Statements" and IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors". The amendments make minor changes to the definition of the term "material" and align the definition across all IFRS Standards. Materiality is used in making judgements related to the preparation of financial statements. The Company prospectively adopted the amendments on January 1, 2020. In January 2020, the IASB issued amendments to IAS 1 "Presentation of Financial Statements" to clarify that liabilities are classified as either current or non-current, depending on the existence of the substantive right at the end of the reporting period for an entity to defer settlement of the liability for at least twelve months after the reporting period. The amendments are effective January 1, 2023 with early adoption permitted. The amendments are required to be adopted retrospectively. The Company is assessing the impact of these amendments on its consolidated financial statements. In May 2020, the IASB issued amendments to IAS 16 “Property, Plant and Equipment” to require proceeds received from selling items produced while the entity is preparing the asset for its intended use to be recognized in net earnings, rather than as a reduction in the cost of the asset. The amendments are effective January 1, 2022 with early adoption permitted. The Company is assessing the impact of these amendments on its consolidated financial statements. In August 2020, the IASB issued Interest Rate Benchmark Reform (Phase 2) in response to the Financial Stability Board’s mandated reforms to InterBank Offered Rates (“IBORs”), with financial regulators proposing that they be replaced by a number of new local currency denominated alternative benchmark rates. The amendments are effective for annual periods beginning on or after January 1, 2021 and are to be applied retrospectively, with early adoption permitted. The Company is assessing the impact of IBOR reform and the IASB amendments and does not expect that these amendments will have a significant impact on the Company's consolidated financial statements. |
Critical Accounting Estimates a
Critical Accounting Estimates and Judgements | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Critical Accounting Estimates and Judgements | Critical Accounting Estimates and Judgements The Company has made estimates, assumptions and judgements regarding certain assets, liabilities, revenues and expenses in the preparation of the consolidated financial statements, primarily related to unsettled transactions and events as of the date of the consolidated financial statements. Accordingly, actual results may differ from estimated amounts. The estimates, assumptions and judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. (A) CRUDE OIL AND NATURAL GAS RESERVES Purchase price allocations, depletion, depreciation and amortization, asset retirement obligations, and amounts used in impairment calculations are based on estimates of crude oil and natural gas reserves. Reserves estimates are based on engineering data, estimated future prices and production costs, expected future rates of production, and the timing and amount of future development expenditures, all of which are subject to many uncertainties, interpretations and judgements. The Company expects that, over time, its reserves estimates will be revised upward or downward based on updated information. (B) ASSET RETIREMENT OBLIGATIONS The Company provides for asset retirement obligations on its property, plant and equipment based on current legislation and operating practices. Estimated future costs include assumptions of dates of future abandonment and technological advances and estimates of future inflation rates and discount rates. Actual costs may vary from the estimated provision due to changes in environmental legislation, the impact of inflation, changes in technology, changes in operating practices, and changes in the date of abandonment due to changes in reserves life. These differences may have a material impact on the estimated provision. (C) INCOME TAXES The Company is subject to income taxes in numerous legal jurisdictions. Accounting for income taxes requires the Company to interpret frequently changing laws and regulations, including changing income tax rates, and make certain judgements with respect to the application of tax law, estimating the timing of temporary difference reversals, and estimating the realizability of tax assets. There are many transactions and calculations for which the ultimate tax determination is uncertain. The Company recognizes a liability for a tax filing position based on its assessment of the probability that additional taxes may ultimately be due. (D) FAIR VALUE OF DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses its judgement to select a variety of methods and make assumptions that are primarily based on market conditions existing at the end of each reporting period. The Company uses directly and indirectly observable inputs in measuring the value of financial instruments that are not traded in active markets, including quoted commodity prices and volatility, interest rate yield curves and foreign exchange rates. (E) PURCHASE PRICE ALLOCATIONS Purchase prices related to business combinations are allocated to the underlying acquired assets and liabilities based on their estimated fair value at the time of acquisition. The determination of fair value requires the Company to make estimates, assumptions and judgements regarding future events. The allocation process is inherently subjective and impacts the amounts assigned to individually identifiable assets and liabilities, including the fair value of crude oil and natural gas properties together with deferred income tax effects. As a result, the purchase price allocation impacts the Company’s reported assets and liabilities and future net earnings due to the impact on future depletion, depreciation, and amortization expense and impairment tests. (F) SHARE-BASED COMPENSATION The Company has made various assumptions in estimating the fair values of stock options granted under its Option Plan, including expected volatility, expected exercise timing and future forfeiture rates. At each period end, stock options outstanding are remeasured for changes in the estimated fair value of the liability. (G) IDENTIFICATION OF CGUs CGUs are defined as the lowest grouping of integrated assets that generate identifiable cash inflows that are largely independent of the cash inflows of other assets or groups of assets. The classification of assets into CGUs requires significant judgement and interpretations with respect to the integration between assets, the existence of active markets, shared infrastructures, and the way in which management monitors the Company’s operations. (H) IMPAIRMENT OF ASSETS The recoverable amount of a CGU or an individual asset has been determined as the higher of the CGUs' or the assets' fair value less costs of disposal and its value in use. These calculations require the use of estimates and assumptions and are subject to change as new information becomes available, including information on future commodity prices, expected production volumes, quantity of reserves, asset retirement obligations, future development and operating costs, after-tax discount rates (currently ranging from 10% to 12%), and income taxes. Changes in assumptions used in determining the recoverable amount could affect the carrying value of the related assets and CGUs. (I) LEASES Purchase, extension and termination options are included in certain of the Company's leases to provide operational flexibility. To measure the lease liability, the Company uses judgement to assess the likelihood of exercising these options. These assessments are reviewed when significant events or circumstances indicate that the likelihood of exercising these options may have changed. The Company also uses estimates to determine its incremental borrowing costs if the interest rate implicit in the lease is not readily determinable. (J) CONTINGENCIES Contingencies are subject to measurement uncertainty as the related financial impact will only be confirmed by the outcome of a future event. The assessment of contingencies requires the application of judgements and estimates including the determination of whether a present obligation exists and the reliable estimation of the timing and amount of cash flows required to settle the contingency. (K) IMPACT OF COVID-19 For the year ended December 31, 2020, COVID-19 had an impact on the global economy, including the oil and gas industry. Business conditions in 2020 reflected the market uncertainty associated with COVID-19. The Company has taken into account the impacts of COVID-19 and the unique circumstances it has created in making estimates, assumptions and judgements in the preparation of the consolidated financial statements, and continues to monitor the developments in the business environment and commodity market. Actual results may differ from estimated amounts, and those differences may be material. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2020 | |
Inventories [Abstract] | |
Inventory | Inventory 2020 2019 Product inventory $ 390 $ 468 Materials and supplies 670 684 $ 1,060 $ 1,152 The Company recorded a write-down of its product inventory of $nil from cost to net realizable value as at December 31, 2020 (2019 – $4 million). |
Exploration and Evaluation Asse
Exploration and Evaluation Assets | 12 Months Ended |
Dec. 31, 2020 | |
Exploration For And Evaluation Of Mineral Resources [Abstract] | |
Exploration and Evaluation Assets | Exploration and Evaluation Assets Exploration and Production Oil Sands Mining and Upgrading Total North America North Sea Offshore Africa Cost At December 31, 2018 $ 2,348 $ — $ 37 $ 252 $ 2,637 Additions 38 — 33 — 71 Acquisition of Devon assets (note 7) 91 — — — 91 Transfers to property, plant and equipment (219) — — — (219) Foreign exchange adjustments — — (1) — (1) At December 31, 2019 2,258 — 69 252 2,579 Additions/Acquisitions 40 — 15 — 55 Transfers to property, plant and equipment (194) — — — (194) Derecognitions and other (3) — — — (3) Foreign exchange adjustments — — (1) — (1) At December 31, 2020 $ 2,101 $ — $ 83 $ 252 $ 2,436 On October 6, 2020, the Company completed the acquisition of all of the issued and outstanding shares of Painted Pony Energy Ltd. for cash consideration of $111 million, including $15 million of exploration and evaluation assets (note 7). During 2019, the Company completed the acquisition of substantially all of the assets of Devon including thermal in situ and heavy crude oil assets, for total cash purchase consideration of $3,412 million, including $91 million of exploration and evaluation assets (note 7). During 2018, in the North America Exploration and Production segment, the Company acquired Laricina Energy Ltd., including exploration and evaluation assets of $118 million and property, plant and equipment of $44 million. In addition, the Company acquired cash of $24 million and deferred income tax assets of $168 million and assumed net working capital liabilities of $18 million, asset retirement obligations of $17 million, and notes payable of $48 million. Total purchase consideration was $46 million, resulting in a pre-tax gain of $225 million on the acquisition, representing the excess of the fair value of the net assets acquired compared to total purchase consideration. The Company settled the notes payable immediately following the completion of the acquisition. The transaction was accounted for using the acquisition method of accounting. During 2018, the Company also completed two additional farm-out agreements in the Offshore Africa segment to dispose of a combined 30% interest in its exploration right in South Africa, comprised of exploration and evaluation assets of $89 million, including a recovery of $14 million of past incurred costs for net proceeds of $105 million (US$79 million), resulting in a pre-tax gain of $16 million ($12 million after tax). The Company retains a 20% working interest in the exploration right following the completion of these farm-out agreements. Under the terms of the various agreements, in the event of a commercial crude oil or natural gas discovery on the exploration right and conversion to a production right, additional cash payments would be made to the Company. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Exploration and Production Oil Sands Mining and Upgrading Midstream and Refining Head Office Total North America North Sea Offshore Africa Cost At December 31, 2018 $ 67,007 $ 7,321 $ 5,471 $ 43,147 $ 441 $ 435 $ 123,822 Additions 2,613 349 233 2,154 10 34 5,393 Acquisition of Devon assets 3,325 — — — — — 3,325 Transfers from E&E assets 219 — — — — — 219 Derecognitions (1) (537) — (1,515) (285) — (3) (2,340) Foreign exchange adjustments and other — (374) (256) — — — (630) At December 31, 2019 72,627 7,296 3,933 45,016 451 466 129,789 Additions/Acquisitions 1,789 104 94 1,328 6 19 3,340 Transfers from E&E assets 194 — — — — — 194 Derecognitions (521) (3) — (634) — — (1,158) Disposals (92) — — — — — (92) Foreign exchange adjustments and other — (114) (64) — — — (178) At December 31, 2020 $ 73,997 $ 7,283 $ 3,963 $ 45,710 $ 457 $ 485 $ 131,895 Accumulated depletion and depreciation At December 31, 2018 $ 43,881 $ 5,735 $ 4,203 $ 4,981 $ 138 $ 325 $ 59,263 Expense 3,215 256 214 1,564 15 23 5,287 Derecognitions (1) (537) — (1,515) (285) — (3) (2,340) Foreign exchange adjustments and other 18 (279) (190) (13) — — (464) At December 31, 2019 46,577 5,712 2,712 6,247 153 345 61,746 Expense 3,676 247 161 1,668 15 25 5,792 Derecognitions (521) (3) — (634) — — (1,158) Disposals (63) — — — — — (63) Foreign exchange adjustments and other (28) (103) (51) 8 — — (174) At December 31, 2020 $ 49,641 $ 5,853 $ 2,822 $ 7,289 $ 168 $ 370 $ 66,143 Net book value - at December 31, 2020 $ 24,356 $ 1,430 $ 1,141 $ 38,421 $ 289 $ 115 $ 65,752 - at December 31, 2019 $ 26,050 $ 1,584 $ 1,221 $ 38,769 $ 298 $ 121 $ 68,043 (1) Following demobilization of the FPSO at the Olowi field, Gabon in 2019, the Company derecognized property, plant and equipment and associated accumulated depletion and depreciation of $1,515 million. As at December 31, 2020, the Company assessed the recoverability of its property, plant and equipment and its exploration and evaluation assets, and determined the carrying amounts of all of its cash generating units to be recoverable. The Company capitalizes construction period interest for qualifying assets based on costs incurred and the Company’s cost of borrowing. Interest capitalization to a qualifying asset ceases once the asset is substantially available for its intended use. During 2020, pre-tax interest of $24 million (2019 – $53 million; 2018 – $69 million) was capitalized to property, plant and equipment using a weighted average capitalization rate of 3.5% (2019 – 4.0%; 2018 – 3.9%). As at December 31, 2020, the Company recognized certain project costs, not subject to depletion and depreciation, of $117 million in the Oil Sands Mining and Upgrading segment (2019 – $115 million in the Oil Sands Mining and Upgrading segment). Acquisitions in the current and comparative years have been accounted for as business combinations using the acquisition method of accounting. Gains reported on the acquisitions represent the excess of the fair value of the net assets acquired compared to total purchase consideration. ACQUISITION OF PAINTED PONY ENERGY LTD. ("PAINTED PONY") On October 6, 2020, the Company completed the acquisition of all the issued and outstanding shares of Painted Pony for total cash consideration of $111 million. Painted Pony is involved in the exploration for and development of natural gas and natural gas liquids in Northeast British Columbia. The allocation of the purchase price was based on management's best estimates of the fair value of the assets acquired and liabilities assumed as of the acquisition date. The below amounts are estimates, and may be subject to change based on the receipt of new information. The following provides a summary of the net assets acquired relating to the acquisition: Property, plant and equipment $ 750 Exploration and evaluation assets 15 Other long-term assets 204 Long-term debt (397) Asset retirement obligations (13) Other long-term liabilities (442) Deferred tax asset 211 Net assets acquired 328 Less: cash consideration 111 Gain on acquisition (1) $ 217 (1) Gain on acquisition of $217 million represents the excess of the fair value of the net assets acquired compared with the total purchase consideration. In connection with the acquisition the Company assumed certain product transportation and processing commitments (note 20). ACQUISITION OF THERMAL IN SITU AND PRIMARY HEAVY CRUDE OIL ASSETS On June 27, 2019, the Company completed the acquisition of substantially all of the assets of Devon including thermal in situ and heavy crude oil assets, for total cash purchase consideration of $3,412 million. In connection with the acquisition, the Company arranged a $3,250 million committed term facility (note 11) and assumed certain product transportation commitments (note 20). The following provides a summary of the net assets acquired relating to the acquisition: Property, plant and equipment $ 3,325 Exploration and evaluation assets 91 Inventory, prepaids and other long-term assets 195 Accrued liabilities (21) Asset retirement obligations (178) Net assets acquired $ 3,412 As a result of the acquisition, during the year ended December 31, 2019, revenue increased by approximately $1,540 million to $22,871 million and revenue, less production and transportation, blending and feedstock expenses increased by approximately $590 million to $11,895 million. OTHER ACQUISITIONS AND DERECOGNITIONS During 2019, the Company acquired a number of producing crude oil and natural gas properties in the North America Exploration and Production segment for net cash consideration of $80 million (2018 – $170 million) and assumed associated asset retirement obligations of $20 million (2018 – $13 million). No net deferred income tax liabilities were recognized (2018 – $nil) and no pre-tax gains were recognized on these net transactions (2018 – pre-tax gain of $47 million). During 2018, in connection with the acquisition of the remaining interest in certain operations in the North Sea Exploration and Production segment, the Company acquired $108 million of property, plant and equipment, for net proceeds received of $73 million. The Company also acquired net working capital of $7 million, assumed associated asset retirement obligations of $41 million and recognized net deferred income tax liabilities of $27 million. The Company recognized a pre-tax gain of $120 million on the acquisition and a pre-tax revaluation gain of $19 million relating to its previously held interest. During 2018, the Gabonese Republic agreed to cessation of production from the Company’s Olowi field, as well as the terms of termination of the Olowi Production Sharing Contract and the return of the permit area back to the Gabonese Republic, including the associated asset retirement obligations of $69 million. The transaction resulted in a pre-tax gain on disposition of property of $20 million ($14 million after-tax). |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of leases [Abstract] | |
Leases | Leases LEASE ASSETS Product transportation and storage Field equipment and power Offshore vessels and equipment Office leases and other Total At January 1, 2019 (1) $ 823 $ 332 $ 252 $ 132 $ 1,539 Additions 452 43 12 20 527 Depreciation (106) (54) (72) (27) (259) Derecognitions — (6) — — (6) Foreign exchange adjustments and other (3) 2 (10) (1) (12) At December 31, 2019 $ 1,166 $ 317 $ 182 $ 124 $ 1,789 Additions (2) 17 121 7 3 148 Depreciation (124) (53) (51) (26) (254) Derecognitions (20) (5) (10) — (35) Foreign exchange adjustments and other (1) (1) — (1) (3) At December 31, 2020 $ 1,038 $ 379 $ 128 $ 100 $ 1,645 (1) The Company adopted IFRS 16 "Leases" on January 1, 2019 using the modified retrospective approach. (2) The acquisition of Painted Pony in 2020 included lease assets of $93 million (note 7). LEASE ASSETS, BY SEGMENT As at December 31, 2020 and 2019, the Company had the following lease assets by segment: 2020 2019 Exploration and Production North America $ 345 $ 300 North Sea 7 38 Offshore Africa 126 154 Oil Sands Mining and Upgrading 1,080 1,191 Head office 87 106 $ 1,645 $ 1,789 LEASE LIABILITIES The Company measures its lease liabilities at the discounted value of its lease payments during the lease term. Lease liabilities at December 31, 2020 and 2019 were as follows: 2020 2019 Lease liabilities $ 1,690 $ 1,809 Less: current portion 189 233 $ 1,501 $ 1,576 In addition to the lease assets disclosed above, on an ongoing basis the Company enters into short-term leases related to its Exploration and Production and Oil Sands Mining and Upgrading activities. Other amounts included in net earnings and cash flows during 2020 and 2019 are provided below: 2020 2019 Expenses relating to short-term leases (1) $ 409 $ 448 Interest expense on lease liabilities $ 67 $ 70 Variable lease payments not included in the measurement of lease liabilities $ 85 $ 118 Total cash outflows for leases (2) $ 983 $ 1,178 (1) During 2020, the Company capitalized $197 million (2019 - $305 million) of short-term leases as additions to property, plant and equipment. (2) Comprised of cash outflows relating to lease liabilities, short-term leases, and variable lease payments. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments [Abstract] | |
Investments | Investments As at December 31, 2020 and 2019, the Company had the following investments: 2020 2019 Investment in PrairieSky Royalty Ltd. $ 228 $ 345 Investment in Inter Pipeline Ltd. 77 145 $ 305 $ 490 INVESTMENT IN PRAIRIESKY ROYALTY LTD. The Company’s investment of 22.6 million common shares of PrairieSky Royalty Ltd. ("PrairieSky") does not constitute significant influence, and is accounted for at fair value through profit or loss, measured at each reporting date. As at December 31, 2020 the market price per common share was $10.09 (December 31, 2019 – $15.23). As at December 31, 2020, the Company’s investment in PrairieSky was classified as a current asset. PrairieSky is in the business of acquiring and managing oil and gas royalty income assets through indirect third-party oil and gas development. The loss from the investment in PrairieSky was comprised as follows: 2020 2019 2018 Fair value loss from PrairieSky $ 117 $ 55 $ 326 Dividend income from PrairieSky (9) (17) (17) $ 108 $ 38 $ 309 INVESTMENT IN INTER PIPELINE LTD. The Company's investment of 6.4 million common shares of Inter Pipeline Ltd. ("Inter Pipeline") does not constitute significant influence, and is accounted for at fair value through profit or loss, measured at each reporting date. As at December 31, 2020 the market price per common share was $11.87 (December 31, 2019 – $22.54). As at December 31, 2020, the Company's investment in Inter Pipeline was classified as a current asset. Inter Pipeline is in the business of oil sands transportation, natural gas liquids processing and conventional oil pipelines in Canada and bulk liquid storage in Europe. The loss (gain) from the investment in Inter Pipeline was comprised as follows: 2020 2019 2018 Fair value loss (gain) from Inter Pipeline $ 68 $ (21) $ 43 Dividend income from Inter Pipeline (5) (11) (11) $ 63 $ (32) $ 32 On February 22, 2021, Brookfield Infrastructure Partners L.P. commenced a formal offer to purchase all issued and outstanding Inter Pipeline common shares for $16.50 per common share. The offer is open for acceptance until Monday, June 7, 2021. |
Other Long-Term Assets
Other Long-Term Assets | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other Long-Term Assets | Other Long-Term Assets 2020 2019 North West Redwater Partnership $ 555 $ 652 Prepaid cost of service toll 162 130 Risk management (note 19) 136 290 Long-term inventory 121 121 Other (1) 190 84 1,164 1,277 Less: current portion 82 54 $ 1,082 $ 1,223 (1) The acquisition of Painted Pony in 2020 included physical sales contracts valued at $111 million (note 7). INVESTMENT IN NORTH WEST REDWATER PARTNERSHIP The Company has a 50% equity investment in and has made subordinated debt advances of $555 million to NWRP (2019 - $652 million), including accrued interest. The subordinated debt is repayable over 10 years commencing July 2021, and bears interest at prime plus 6%. During the year ended December 31, 2020, $124 million of the subordinated debt was repaid to the Company. NWRP operates a 50,000 barrels per day bitumen upgrader and refinery that targets to process 12,500 barrels per day of bitumen feedstock for the Company and 37,500 barrels per day of bitumen feedstock for the Alberta Petroleum Marketing Commission, an agent of the Government of Alberta, under a 30-year fee-for-service tolling agreement. On June 1, 2020, the refinery achieved the Commercial Operation Date ("COD"), pursuant to the terms of the tolling agreement. The Company is unconditionally obligated to pay its 25% pro rata share of the debt tolls over the 30-year tolling period (note 20). Subsequent to COD, sales of diesel and refined products and associated refining tolls are recognized in the Midstream and Refining segment. NWRP has a secured $3,500 million syndicated credit facility, of which $2,000 million is revolving and matures in June 2021 and the remaining $1,500 million is fully drawn on a non-revolving basis. In 2019, NWRP extended the $1,500 million non-revolving facility, previously scheduled to mature in February 2020, to February 2021. Subsequent to December 31, 2020, NWRP extended the $1,500 million non-revolving facility to June 2021. As at December 31, 2020, NWRP had borrowings of $2,866 million under the syndicated credit facility, which was classified as current (December 31, 2019 - $2,715 million classified as long-term). The unrecognized share of the equity loss from NWRP for 2020 was $94 million (December 31, 2019 - recognized equity loss of $287 million and unrecognized equity loss of $59 million; December 31, 2018 - recognized equity loss of $5 million). As at December 31, 2020, the cumulative unrecognized share of equity losses from NWRP was $153 million (December 31, 2019 – $59 million). The assets, liabilities, partners’ equity, product sales and equity loss related to NWRP and the Company’s 50% interest at December 31, 2020 and 2019 were comprised as follows: 2020 (1) 2019 (2) NWRP Company NWRP Company Current assets $ 230 $ 115 $ 248 $ 124 Non-current assets $ 11,098 $ 5,549 $ 11,328 $ 5,664 Current liabilities $ 3,146 $ 1,573 $ 384 $ 192 Non-current liabilities $ 8,488 $ 4,244 $ 11,310 $ 5,655 Partners’ equity $ (306) $ (153) $ (118) $ (59) Revenue (3) $ 1,348 $ 674 $ 1,736 $ 868 Net loss $ 188 $ 94 $ 692 $ 346 (1) In 2020, included in the net loss is the impact of depreciation and amortization expense at 100% interest of $214 million (50% interest - $107 million) and interest and other financing expense at 100% interest of $420 million (50% interest - $210 million). (2) In 2019, included in the net loss is the impact of depreciation and amortization expense at 100% interest of $152 million (50% interest - $76 million) and interest and other financing expense at 100% interest of $398 million (50% interest - $199 million). (3) Included in NWRP's revenue for the period subsequent to COD in 2020, is $174 million paid by the Company for its 25% share of the refining toll. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments [Abstract] | |
Long-Term Debt | Long-Term Debt 2020 2019 Canadian dollar denominated debt, unsecured Bank credit facilities $ 1,614 $ 1,688 Medium-term notes 2.05% debentures due June 1, 2020 — 900 2.89% debentures due August 14, 2020 — 1,000 3.31% debentures due February 11, 2022 1,000 1,000 1.45% debentures due November 16, 2023 500 — 3.55% debentures due June 3, 2024 500 500 3.42% debentures due December 1, 2026 600 600 2.50% debentures due January 17, 2028 300 — 4.85% debentures due May 30, 2047 300 300 4,814 5,988 US dollar denominated debt, unsecured Bank credit facilities (December 31, 2020 – US$3,953 million; 5,041 4,855 Commercial paper (December 31, 2020 – US$426 million; 544 329 US dollar debt securities 3.45% due November 15, 2021 (US$500 million) 638 648 2.95% due January 15, 2023 (US$1,000 million) 1,276 1,296 3.80% due April 15, 2024 (US$500 million) 638 648 3.90% due February 1, 2025 (US$600 million) 765 778 2.05% due July 15, 2025 (US$600 million) 765 — 3.85% due June 1, 2027 (US$1,250 million) 1,595 1,621 2.95% due July 15, 2030 (US$500 million) 638 — 7.20% due January 15, 2032 (US$400 million) 510 519 6.45% due June 30, 2033 (US$350 million) 446 454 5.85% due February 1, 2035 (US$350 million) 446 454 6.50% due February 15, 2037 (US$450 million) 574 583 6.25% due March 15, 2038 (US$1,100 million) 1,403 1,426 6.75% due February 1, 2039 (US$400 million) 510 519 4.95% due June 1, 2047 (US$750 million) 957 972 16,746 15,102 Long-term debt before transaction costs and original issue discounts, net 21,560 21,090 Less: original issue discounts, net (1) 18 17 transaction costs (1) (2) 89 91 21,453 20,982 Less: current portion of commercial paper 544 329 current portion of other long-term debt (1) (2) 799 2,062 $ 20,110 $ 18,591 (1) The Company has included unamortized original issue discounts and premiums, and directly attributable transaction costs in the carrying amount of the outstanding debt. (2) Transaction costs primarily represent underwriting commissions charged as a percentage of the related debt offerings, as well as legal, rating agency and other professional fees. BANK CREDIT FACILITIES AND COMMERCIAL PAPER As at December 31, 2020, the Company had undrawn revolving bank credit facilities of $4,958 million. Additionally, the Company had in place fully drawn term credit facilities of $6,738 million. Details of these facilities are described below. The Company also has certain other dedicated credit facilities supporting letters of credit. At December 31, 2020, the Company had $544 million drawn under its commercial paper program, and reserves capacity under its revolving bank credit facilities for amounts outstanding under this program. • a $100 million demand credit facility; • a $1,000 million non-revolving term credit facility maturing February 2022; • a $2,425 million revolving syndicated credit facility maturing June 2022; • a $3,088 million non-revolving term credit facility maturing June 2022; • a $2,650 million non-revolving term credit facility maturing February 2023; • a $2,425 million revolving syndicated credit facility maturing June 2023; and • a £5 million demand credit facility related to the Company’s North Sea operations. Borrowings under the Company's non-revolving term credit facilities may be made by way of pricing referenced to Canadian dollar bankers' acceptances, US dollar bankers’ acceptances, LIBOR, US base rate or Canadian prime rate. As at December 31, 2020, the non-revolving term credit facilities were fully drawn. During 2020, the $750 million non-revolving term credit facility, originally due February 2021, was extended to February 2022 and increased to $1,000 million. Subsequent to December 31, 2020, the facility was extended to February 2023. During 2019, the Company fully repaid and cancelled the $1,800 million non-revolving term credit facility scheduled to mature in May 2020. In addition, the $2,200 million non-revolving term credit facility, originally due October 2020, was extended to February 2023 and increased to $2,650 million. During 2019, the Company entered into a $3,250 million non-revolving term credit facility to finance the acquisition of assets from Devon (note 7). During 2020, the Company repaid $162.5 million related to the required annual amortization, reducing the facility balance to $3,088 million. Subsequent to December 31, 2020, the Company repaid a further $362.5 million on the facility, reducing the outstanding balance to $2,725 million, and satisfying the required annual amortization of $162.5 million originally due in June 2021. The facility matures in June 2022. During 2019, the Company extended the $2,425 million revolving syndicated credit facility, of which $330 million was originally due June 2019 and $2,095 million was originally due June 2021, to 2023. The revolving credit facilities are extendible annually at the mutual agreement of the Company and the lenders. If the facilities are not extended, the full amount of the outstanding principal would be repayable on the maturity date. Borrowings under the Company's revolving term credit facilities may be made by way of pricing referenced to Canadian dollar bankers' acceptances, US dollar bankers' acceptances, LIBOR, US base rate or Canadian prime rate. During 2019, the Company reduced the £15 million demand credit facility related to the Company's North Sea operations, to £5 million. The Company’s borrowings under its US commercial paper program are authorized up to a maximum US$2,500 million. The Company reserves capacity under its revolving bank credit facilities for amounts outstanding under this program. The Company’s weighted average interest rate on bank credit facilities and commercial paper outstanding as at December 31, 2020 was 1.1% (December 31, 2019 – 2.5%), and on total long-term debt outstanding for the year ended December 31, 2020 was 3.5% (December 31, 2019 – 4.0%). As at December 31, 2020, letters of credit and guarantees aggregating to $489 million were outstanding (December 31, 2019 - $468 million). MEDIUM-TERM NOTES During 2020, the Company issued $500 million of 1.45% medium-term notes due November 2023 and $300 million of 2.50% medium-term notes due January 2028. After issuing these securities, the Company had $2,200 million remaining on its base shelf prospectus that allows for the offer for sale from time to time of up to $3,000 million of medium-term notes in Canada, which expires August 2021. If issued, these securities may be offered in amounts and at prices, including interest rates, to be determined based on market conditions at the time of issuance. During 2020, the Company repaid $1,000 million of 2.89% medium term notes and $900 million of 2.05% medium term notes. During 2019, the Company repaid $500 million of 2.60% medium-term notes and $500 million of 3.05% medium-term notes. US DOLLAR DEBT SECURITIES During 2020, the Company issued US$600 million of 2.05% notes due July 2025 and US$500 million of 2.95% notes due July 2030. After issuing these securities, the Company had US$1,900 million remaining on its base shelf prospectus that allows for the offer for sale from time to time of up to US$3,000 million of debt securities in the United States, which expires in August 2021. If issued, these securities may be offered in amounts and at prices, including interest rates, to be determined based on market conditions at the time of issuance. SCHEDULED DEBT REPAYMENTS Scheduled debt repayments are as follows: Year Repayment 2021 $ 1,343 2022 $ 4,887 2023 $ 4,383 2024 $ 1,138 2025 $ 1,530 Thereafter $ 8,279 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other Long-Term Liabilities | Other Long-Term Liabilities 2020 2019 Asset retirement obligations $ 5,861 $ 5,771 Lease liabilities (note 8) (1) 1,690 1,809 Share-based compensation 160 297 Risk management (note 19) 160 112 Deferred purchase consideration (2) 72 95 Other (3) 343 98 8,286 8,182 Less: current portion 722 819 $ 7,564 $ 7,363 (1) The acquisition of Painted Pony in 2020 included lease liabilities of $93 million (note 7). (2) Relates to the acquisition of the Joslyn oil sands project in 2018, payable in annual installments of $25 million over the next three years. (3) The acquisition of Painted Pony in 2020 included product transportation and processing obligations valued at $268 million (note 7). ASSET RETIREMENT OBLIGATIONS The Company’s asset retirement obligations are expected to be settled on an ongoing basis over a period of approximately 60 years and discounted using a weighted average discount rate of 3.7% (2019 – 3.8%; 2018 – 5.0%) and inflation rates of up to 2% (December 31, 2019 – up to 2%). Reconciliations of the discounted asset retirement obligations were as follows: 2020 2019 2018 Balance – beginning of year $ 5,771 $ 3,886 $ 4,327 Liabilities incurred 5 15 19 Liabilities acquired, net 13 198 6 Liabilities settled (249) (296) (290) Asset retirement obligation accretion 205 190 186 Revision of cost and timing estimates (134) 412 (111) Change in discount rates 253 1,412 (334) Foreign exchange adjustments (3) (46) 83 Balance – end of year 5,861 5,771 3,886 Less: current portion 184 208 186 $ 5,677 $ 5,563 $ 3,700 Segmented Asset Retirement Obligations 2020 2019 Exploration and Production North America $ 2,899 $ 2,792 North Sea 787 816 Offshore Africa 174 161 Oil Sands Mining and Upgrading 1,999 2,000 Midstream and Refining 2 2 $ 5,861 $ 5,771 SHARE-BASED COMPENSATION The liability for share-based compensation includes costs incurred under the Company’s Stock Option Plan and PSU plans. The Company’s Stock Option Plan provides current employees with the right to elect to receive common shares or a cash payment in exchange for stock options surrendered. The PSU plan provides certain executive employees of the Company with the right to receive a cash payment, the amount of which is determined by individual employee performance and the extent to which certain other performance measures are met. The Company recognizes a liability for potential cash settlements under these plans. The current portion of the liability represents the maximum amount of the liability payable within the next twelve month period if all vested stock options and PSUs are settled in cash. 2020 2019 2018 Balance – beginning of year $ 297 $ 124 $ 414 Share-based compensation (recovery) expense (82) 223 (146) Cash payment for stock options surrendered and PSUs vested (39) (2) (5) Transferred to common shares (21) (53) (120) Charged to (recovered from) Oil Sands Mining and Upgrading, net 5 5 (19) Balance – end of year 160 297 124 Less: current portion 119 227 92 $ 41 $ 70 $ 32 Included within share-based compensation liability as at December 31, 2020 was $49 million (2019 – $62 million; 2018 – $13 million) related to PSUs granted to certain executive employees. The fair value of stock options outstanding was estimated using the Black-Scholes valuation model with the following weighted average assumptions: 2020 2019 2018 Fair value $ 3.47 $ 7.88 $ 3.33 Share price $ 30.59 $ 42.00 $ 32.94 Expected volatility 39.8% 26.7% 27.4% Expected dividend yield 5.6% 3.6% 4.1% Risk free interest rate 0.3% 1.7% 1.9% Expected forfeiture rate 4.3% 4.3% 4.2% Expected stock option life (1) 4.3 years 4.4 years 4.4 years (1) At original time of grant. The intrinsic value of vested stock options at December 31, 2020 was $11 million (2019 – $75 million; 2018 – $27 million). |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | Income Taxes The provision for income tax was as follows: (Recovery) expense 2020 2019 2018 Current corporate income tax – North America $ (245) $ 354 $ 312 Current corporate income tax – North Sea (4) 112 28 Current corporate income tax – Offshore Africa 17 44 54 Current PRT (1) – North Sea (31) (89) (29) Other taxes 6 13 9 Current income tax (257) 434 374 Deferred corporate income tax (181) (895) 540 Deferred PRT (1) – North Sea — 1 17 Deferred income tax (181) (894) 557 Income tax $ (438) $ (460) $ 931 (1) Petroleum Revenue Tax. The provision for income tax is different from the amount computed by applying the combined statutory Canadian federal and provincial income tax rates to earnings before taxes. The reasons for the difference are as follows: 2020 2019 2018 Canadian statutory income tax rate 24.1% 26.5% 27.0% Income tax provision at statutory rate $ (211) $ 1,313 $ 951 Effect on income taxes of: UK PRT and other taxes (25) (76) (3) Impact of deductible UK PRT and other taxes on corporate income tax 11 32 3 Foreign and domestic tax rate differentials (52) (48) 6 Non-taxable portion of capital (gains) losses (10) (65) 142 Stock options exercised for common shares (25) 47 (41) Income tax rate and other legislative changes — (1,618) — Non-taxable gain on corporate acquisitions (52) — (119) Revisions arising from prior year tax filings (62) (41) (136) Change in unrecognized capital loss carryforward asset (10) (65) 142 Other (2) 61 (14) Income tax $ (438) $ (460) $ 931 The following table summarizes the temporary differences that give rise to the net deferred income tax liability: 2020 2019 Deferred income tax liabilities Property, plant and equipment and exploration and evaluation assets $ 11,922 $ 12,074 Lease assets 380 412 Unrealized risk management activities — 27 Investments 14 36 Investment in North West Redwater Partnership 767 593 Other 8 52 13,091 13,194 Deferred income tax assets Asset retirement obligations (1,495) (1,488) Lease liabilities (388) (416) Share-based compensation (12) (16) Loss carryforwards (1,032) (685) Unrealized foreign exchange loss on long-term debt (20) (49) Deferred PRT — (1) (2,947) (2,655) Net deferred income tax liability $ 10,144 $ 10,539 Movements in deferred tax assets and liabilities recognized in net earnings during the year were as follows: 2020 2019 2018 Property, plant and equipment and exploration and evaluation assets $ (158) $ (775) $ 281 Lease assets (11) 414 — Unrealized foreign exchange loss (gain) on long-term debt 29 55 (75) Unrealized risk management activities (8) (14) 18 Asset retirement obligations (13) (317) 175 Lease liabilities 6 (418) — Share-based compensation 4 (11) (5) Loss carryforwards (182) 170 (61) Investments (22) (10) (50) Investment in North West Redwater Partnership 174 179 162 Deferred PRT — 1 17 PRT deduction for corporate income tax — — (7) Other — (168) 102 $ (181) $ (894) $ 557 The following table summarizes the movements of the net deferred income tax liability during the year: 2020 2019 2018 Balance – beginning of year $ 10,539 $ 11,451 $ 10,975 Deferred income tax (recovery) expense (181) (894) 557 Deferred income tax expense (recovery) included in other comprehensive income — 8 (6) Foreign exchange adjustments (3) (26) 41 Business combinations (note 6,7) (211) — (116) Balance – end of year $ 10,144 $ 10,539 $ 11,451 Current income taxes recognized in each operating segment will vary depending upon available income tax deductions related to the nature, timing and amount of capital expenditures incurred in any particular year. During 2019, the Government of Alberta enacted legislation that decreased the provincial corporate income tax rate from 12% to 11% effective July 2019, with a further 1% rate reduction every year on January 1 until the provincial corporate income tax rate is 8% on January 1, 2022. As a result of this corporate income tax rate reduction, the Company's deferred corporate income tax liability decreased by $1,618 million for the years ended December 31, 2019. During 2020, the Government of Alberta substantively enacted legislation to accelerate this reduction, lowering the corporate tax rate from 10% to 8%, effective July 1, 2020. This acceleration did not have a significant impact on the Company's deferred corporate income tax liability at December 31, 2020. The Company files income tax returns in the various jurisdictions in which it operates. These tax returns are subject to periodic examinations in the normal course by the applicable tax authorities. The tax returns as prepared may include filing positions that could be subject to differing interpretations of applicable tax laws and regulations, which may take several years to resolve. The Company does not believe the ultimate resolution of these matters will have a material impact upon the Company’s reported results of operations, financial position or liquidity. Deferred income tax assets are recognized for temporary differences to the extent that the realization of the related tax benefit through future taxable profits is probable. The Company has not recognized deferred income tax assets with respect to taxable capital loss carryforwards in excess of $1,000 million in North America, which can be carried forward indefinitely and only applied against future taxable capital gains. In addition, the Company has not recognized deferred income tax assets related to North American tax pools of approximately $750 million, which can only be claimed against income from certain oil and gas properties. Deferred income tax liabilities have not been recognized on the unremitted net earnings of wholly controlled subsidiaries. The Company is able to control the timing and amount of distributions and no taxes are payable on distributions from these subsidiaries provided that the distributions remain within certain limits. |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2020 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Share Capital | Share Capital AUTHORIZED Preferred shares issuable in a series. Unlimited number of common shares without par value. 2020 2019 Issued Common shares Number of shares (thousands) Amount Number of shares (thousands) Amount Balance – beginning of year 1,186,857 $ 9,533 1,201,886 $ 9,323 Issued upon exercise of stock options 3,979 108 10,871 360 Previously recognized liability on stock options exercised for common shares — 21 — 53 Purchase of common shares under Normal Course Issuer Bid (6,970) (56) (25,900) (203) Balance – end of year 1,183,866 $ 9,606 1,186,857 $ 9,533 PREFERRED SHARES Preferred shares are issuable in a series. If issued, the number of shares in each series, and the designation, rights, privileges, restrictions and conditions attached to the shares will be determined by the Board of Directors of the Company. DIVIDEND POLICY The Company has paid regular quarterly dividends in each year since 2001. The dividend policy undergoes periodic review by the Board of Directors and is subject to change. On March 3, 2021, the Board of Directors declared a quarterly dividend of $0.47 per common share, an increase from the previous quarterly dividend of $0.425 per common share, beginning with the dividend payable on April 5, 2021. On March 4, 2020, the Board of Directors declared a quarterly dividend of $0.425 per common share, an increase from the previous quarterly dividend of $0.375 per common share. On March 6, 2019, the Board of Directors declared a quarterly dividend of $0.375 per common share, an increase from the previous quarterly dividend of $0.335 per common share. On February 28, 2018, the Board of Directors declared a quarterly dividend of $0.335 per common share. NORMAL COURSE ISSUER BID On May 21, 2019, the Company's application was approved for a Normal Course Issuer Bid to purchase through the facilities of the Toronto Stock Exchange ("TSX"), alternative Canadian trading platforms, and the New York Stock Exchange ("NYSE"), up to 59,729,706 common shares, over a 12-month period commencing May 23, 2019 and ending May 22, 2020. The Company did not renew its Normal Course Issuer bid after its expiry in May 2020. For the year ended December 31, 2020, the Company purchased 6,970,000 common shares at a weighted average price of $38.84 per common share for a total cost of $271 million. Retained earnings were reduced by $215 million, representing the excess of the purchase price of common shares over their average carrying value. On March 3, 2021, the Board of Directors approved a resolution authorizing the Company to file a Notice of Intention with the TSX to purchase, by way of a Normal Course Issuer Bid, up to 5.0% of its issued and outstanding common shares for the purpose of repurchasing a number of common shares approximately equal to the number of options exercised throughout the year in order to eliminate dilution for shareholders. Subject to acceptance of the Notice of Intention by the TSX, the purchases would be made through facilities of the TSX, alternative Canadian trading platforms, and the NYSE. SHARE-BASED COMPENSATION – STOCK OPTIONS The Company’s Option Plan provides for the granting of stock options to employees. Stock options granted under the Option Plan have terms ranging from five The Option Plan is a "rolling 7%" plan, whereby the aggregate number of common shares that may be reserved for issuance under the plan shall not exceed 7% of the common shares outstanding from time to time. The following table summarizes information relating to stock options outstanding at December 31, 2020 and 2019: 2020 2019 Stock options ( thousands) Weighted average exercise price Stock options (thousands) Weighted Outstanding – beginning of year 47,646 $ 38.04 46,685 $ 37.92 Granted 12,032 $ 32.89 16,314 $ 34.84 Exercised for common shares (3,979) $ 27.24 (10,871) $ 33.16 Surrendered for cash settlement (757) $ 29.34 (1,003) $ 34.52 Forfeited (6,286) $ 39.65 (3,479) $ 37.65 Outstanding – end of year 48,656 $ 37.53 47,646 $ 38.04 Exercisable – end of year 17,970 $ 39.59 17,057 $ 38.74 The range of exercise prices of stock options outstanding and exercisable at December 31, 2020 was as follows: Stock options outstanding Stock options exercisable Range of exercise prices Stock options outstanding (thousands) Weighted average remaining term (years) Weighted average exercise price Stock options exercisable (thousands) Weighted average exercise price $20.76 - $24.99 3,829 3.86 $ 21.12 944 $ 21.64 $25.00 - $29.99 1,975 1.81 $ 28.48 1,362 $ 28.85 $30.00 - $34.99 4,177 4.23 $ 32.37 378 $ 32.40 $35.00 - $39.99 22,495 3.44 $ 37.49 4,721 $ 37.42 $40.00 - $44.99 12,935 1.53 $ 43.57 8,884 $ 43.54 $45.00 - $46.74 3,245 2.40 $ 45.21 1,681 $ 45.18 48,656 2.90 $ 37.53 17,970 $ 39.59 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2020 | |
Analysis Of Other Comprehensive Income By Item [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The components of accumulated other comprehensive income, net of taxes, were as follows: 2020 2019 Derivative financial instruments designated as cash flow hedges $ 69 $ 71 Foreign currency translation adjustment (61) (37) $ 8 $ 34 |
Capital Disclosures
Capital Disclosures | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Capital Disclosures | Capital Disclosures The Company has defined its capital to mean its long-term debt and consolidated shareholders’ equity, as determined at each reporting date. The Company’s objectives when managing its capital structure are to maintain financial flexibility and balance to enable the Company to access capital markets to sustain its on-going operations and to support its growth strategies. The Company primarily monitors capital on the basis of an internally derived financial measure referred to as its "debt to book capitalization ratio", which is the arithmetic ratio of net current and long-term debt divided by the sum of the carrying value of shareholders’ equity plus net current and long-term debt. The Company’s internal targeted range for its debt to book capitalization ratio is 25% to 45%. This range may be exceeded in periods when a combination of capital projects, acquisitions, or lower commodity prices occurs. The Company may be below the low end of the targeted range when cash flow from operating activities is greater than current investment activities. At December 31, 2020, the ratio was within the target range at 40%. Readers are cautioned that the debt to book capitalization ratio is not defined by IFRS and this financial measure may not be comparable to similar measures presented by other companies. Further, there are no assurances that the Company will continue to use this measure to monitor capital or will not alter the method of calculation of this measure in the future. 2020 2019 Long-term debt, net (1) $ 21,269 $ 20,843 Total shareholders’ equity $ 32,380 $ 34,991 Debt to book capitalization 40% 37% (1) Includes the current portion of long-term debt, net of cash and cash equivalents. The Company is subject to a financial covenant that requires debt to book capitalization as defined in its credit facility agreements to not exceed 65%. At December 31, 2020, the Company was in compliance with this covenant. |
Net Earnings Per Common Share
Net Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
Net Earnings Per Common Share | Net Earnings Per Common Share 2020 2019 2018 Weighted average common shares outstanding – basic (thousands of shares) 1,181,768 1,190,977 1,218,798 Effect of dilutive stock options (thousands of shares) — 2,129 4,960 Weighted average common shares outstanding – diluted (thousands of shares) 1,181,768 1,193,106 1,223,758 Net earnings (loss) $ (435) $ 5,416 $ 2,591 Net earnings (loss) per common share – basic $ (0.37) $ 4.55 $ 2.13 – diluted $ (0.37) $ 4.54 $ 2.12 In 2020, the Company excluded 44,117,000 potentially anti-dilutive stock options from the calculation of diluted earnings per common share (year ended December 31, 2019 – 36,834,000; 2018 – 23,458,000). |
Interest and Other Financing Ex
Interest and Other Financing Expense | 12 Months Ended |
Dec. 31, 2020 | |
Borrowing costs [abstract] | |
Interest and Other Financing Expense | Interest and Other Financing Expense 2020 2019 2018 Interest and other financing expense: Long-term debt $ 785 $ 895 $ 867 Lease liabilities (1) 67 70 — Less: amounts capitalized on qualifying assets (24) (53) (69) Total interest and other financing expense 828 912 798 Total interest income (72) (76) (59) Net interest and other financing expense $ 756 $ 836 $ 739 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments [Abstract] | |
Financial Instruments | Financial Instruments The carrying amounts of the Company’s financial instruments by category were as follows: 2020 Asset (liability) Financial assets at amortized cost Fair value through profit or loss Derivatives used for hedging Financial liabilities at amortized cost Total Accounts receivable $ 2,190 $ — $ — $ — $ 2,190 Investments — 305 — — 305 Other long-term assets 555 — 136 — 691 Accounts payable — — — (667) (667) Accrued liabilities — — — (2,346) (2,346) Other long-term liabilities (1) — (52) (108) (1,762) (1,922) Long-term debt (2) — — — (21,453) (21,453) $ 2,745 $ 253 $ 28 $ (26,228) $ (23,202) 2019 Asset (liability) Financial assets at amortized cost Fair value through profit or loss Derivatives used for hedging Financial liabilities at amortized cost Total Accounts receivable $ 2,465 $ — $ — $ — $ 2,465 Investments — 490 — — 490 Other long-term assets 652 — 290 — 942 Accounts payable — — — (816) (816) Accrued liabilities — — — (2,611) (2,611) Other long-term liabilities (1) — (21) (91) (1,904) (2,016) Long-term debt (2) — — — (20,982) (20,982) $ 3,117 $ 469 $ 199 $ (26,313) $ (22,528) (1) Includes $1,690 million of lease liabilities (December 31, 2019 – $1,809 million) and $72 million of deferred purchase consideration payable over the next three (2) Includes the current portion of long-term debt. The carrying amounts of the Company’s financial instruments approximated their fair value, except for fixed rate long-term debt. The fair values of the Company’s investments, recurring other long-term assets (liabilities) and fixed rate long-term debt are outlined below: 2020 Carrying amount Fair value Asset (liability) (1) (2) Level 1 Level 2 Level 3 (4) (5) Investments (3) $ 305 $ 305 $ — $ — Other long-term assets $ 691 $ — $ 136 $ 555 Other long-term liabilities $ (232) $ — $ (160) $ (72) Fixed rate long-term debt (6) (7) $ (14,254) $ (16,598) $ — $ — 2019 Carrying amount Fair value Asset (liability) (1) (2) Level 1 Level 2 Level 3 (4) (5) Investments (3) $ 490 $ 490 $ — $ — Other long-term assets $ 942 $ — $ 290 $ 652 Other long-term liabilities $ (207) $ — $ (112) $ (95) Fixed rate long-term debt (6) (7) $ (14,110) $ (15,938) $ — $ — (1) Excludes financial assets and liabilities where the carrying amount approximates fair value due to the short-term nature of the asset or liability (cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and purchase consideration payable). (2) There were no transfers between Level 1, 2 and 3 financial instruments. (3) The fair values of the investments are based on quoted market prices. (4) The fair value of the deferred purchase consideration included in other long-term liabilities is based on the present value of future cash payments. (5) The fair value of NWRP subordinated debt is based on the present value of future cash receipts. (6) The fair value of fixed rate long-term debt has been determined based on quoted market prices. (7) Includes the current portion of fixed rate long-term debt. RISK MANAGEMENT The Company periodically uses derivative financial instruments to manage its commodity price, interest rate and foreign currency exposures. These financial instruments are entered into solely for hedging purposes and are not used for speculative purposes. The following provides a summary of the carrying amounts of derivative financial instruments held and a reconciliation to the Company’s consolidated balance sheets. Asset (liability) 2020 2019 Derivatives held for trading Natural gas fixed price swaps $ (5) $ (3) Natural gas basis swaps (40) (8) Foreign currency forward contracts (7) (10) Cash flow hedges Foreign currency forward contracts (108) (91) Cross currency swaps 136 290 $ (24) $ 178 Included within: Current portion of other long-term assets $ 5 $ 8 Current portion of other long-term liabilities (131) (112) Other long-term assets 131 282 Other long-term liabilities (29) — $ (24) $ 178 During 2020, the Company recognized a loss of $1 million (2019 – gain of $3 million, 2018 – gain of $2 million) related to ineffectiveness arising from cash flow hedges. The estimated fair values of derivative financial instruments in Level 2 at each measurement date have been determined based on appropriate internal valuation methodologies and/or third party indications. Level 2 fair values determined using valuation models require the use of assumptions concerning the amount and timing of future cash flows and discount rates. In determining these assumptions, the Company primarily relied on external, readily-observable quoted market inputs as applicable, including crude oil and natural gas forward benchmark commodity prices and volatility, Canadian and United States interest rate yield curves, and Canadian and United States forward foreign exchange rates, discounted to present value as appropriate. The resulting fair value estimates may not necessarily be indicative of the amounts that could be realized or settled in a current market transaction and these differences may be material. The changes in estimated fair values of derivative financial instruments included in the risk management asset (liability) were recognized in the financial statements as follows: Asset (liability) 2020 2019 Balance – beginning of year $ 178 $ 356 Net change in fair value of outstanding derivative financial instruments recognized in: Risk management activities (1) (32) (13) Foreign exchange (168) (231) Other comprehensive income (loss) (2) 66 Balance – end of year (24) 178 Less: current portion (126) (104) $ 102 $ 282 (1) Includes the fair value movement of commodity financial instruments included in the acquisition of Painted Pony in 2020 (note 7). Net (gain) loss from risk management activities for the years ended December 31 were as follows: 2020 2019 2018 Net realized risk management loss (gain) $ 32 $ 64 $ (99) Net unrealized risk management (gain) loss (39) 13 (35) $ (7) $ 77 $ (134) FINANCIAL RISK FACTORS a) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company’s market risk is comprised of commodity price risk, interest rate risk, and foreign currency exchange risk. COMMODITY PRICE RISK MANAGEMENT The Company periodically uses commodity derivative financial instruments to manage its exposure to commodity price risk associated with the sale of its future crude oil and natural gas production and with natural gas purchases. At December 31, 2020, the Company had the following derivative financial instruments outstanding. All of these instruments were assumed in the acquisition of Painted Pony in 2020: Remaining term Weighted average volume Weighted average price Index Natural Gas Fixed price swap Jan 2021 - Dec 2021 37,337 GJ/d $2.03/GJ AECO Jan 2021 - Dec 2021 31,178 MMBtu/d US$2.46/MMBtu DAWN Jan 2021 - Dec 2021 20,808 MMBtu/d US$2.54/MMBtu NYMEX Jan 2021 - Dec 2021 17,466 MMBtu/d US$2.70/MMBtu SUMAS Differential swap Jan 2021 - Aug 2021 20,000 GJ/d $0.29/GJ AECO-STN 2 Basis swap Jan 2021 - Dec 2023 53,333 MMBtu/d US$1.23/MMBtu AECO Jan 2024 - Dec 2025 20,000 MMBtu/d US$0.97/MMBtu AECO Jan 2021 - Dec 2021 20,000 MMBtu/d US$0.09/MMBtu DAWN The Company's outstanding commodity derivative financial instruments are expected to be settled monthly based on the applicable index pricing for the respective contract month. INTEREST RATE RISK MANAGEMENT The Company is exposed to interest rate price risk on its fixed rate long-term debt and to interest rate cash flow risk on its floating rate long-term debt. The Company periodically enters into interest rate swap contracts to manage its fixed to floating interest rate mix on long-term debt. Interest rate swap contracts require the periodic exchange of payments without the exchange of the notional principal amounts on which the payments are based. At December 31, 2020, the Company had no interest rate swap contracts outstanding. FOREIGN CURRENCY EXCHANGE RATE RISK MANAGEMENT The Company is exposed to foreign currency exchange rate risk in Canada primarily related to its US dollar denominated long-term debt, commercial paper and working capital. The Company is also exposed to foreign currency exchange rate risk on transactions conducted in other currencies and in the carrying value of its foreign subsidiaries. The Company periodically enters into cross currency swap contracts and foreign currency forward contracts to manage known currency exposure on US dollar denominated long-term debt, commercial paper and working capital. The cross currency swap contracts require the periodic exchange of payments with the exchange at maturity of notional principal amounts on which the payments are based. At December 31, 2020 the Company had the following cross currency swap contracts outstanding: Remaining term Amount Exchange rate (US$/C$) Interest rate (US$) Interest rate (C$) Cross currency Swaps Jan 2021 – Mar 2038 US$550 1.170 6.25 % 5.76 % All cross currency swap derivative financial instruments were designated as hedges at December 31, 2020 and were classified as cash flow hedges. In addition to the cross currency swap contracts noted above, at December 31, 2020, the Company had US$4,951 million of foreign currency forward contracts outstanding, with original terms of up to 90 days, including US$4,379 million designated as cash flow hedges. During 2020, the Company settled the US$500 million cross currency swaps designated as cash flow hedges of the US$500 million 3.45% US dollar debt securities due November 2021. The Company realized cash proceeds of $166 million on settlement. FINANCIAL INSTRUMENT SENSITIVITIES The following table summarizes the annualized sensitivities of the Company’s 2020 net earnings (loss) and other comprehensive loss to changes in the fair value of financial instruments outstanding as at December 31, 2020, resulting from changes in the specified variable, with all other variables held constant. These sensitivities are prepared on a different basis than those sensitivities disclosed in the Company’s other continuous disclosure documents, are limited to the impact of changes in a specified variable applied to financial instruments only and do not represent the impact of a change in the variable on the operating results of the Company taken as a whole. Further, these sensitivities are theoretical, as changes in one variable may contribute to changes in another variable, which may magnify or counteract the sensitivities. In addition, changes in fair value generally cannot be extrapolated because the relationship of a change in an assumption to the change in fair value may not be linear. 2020 2019 Increase (decrease) to Increase (decrease) to other comprehensive income Increase (decrease) to net earnings Increase (decrease) to other comprehensive income Commodity price risk Increase AECO fixed price swap $0.10/Mcf $ (1) $ — $ (1) $ — Decrease AECO fixed price swap $0.10/Mcf $ 1 $ — $ 1 $ — Increase natural gas fixed price swap US$0.10 MMBtu $ (2) $ — $ — $ — Decrease natural gas fixed price swap US$0.10 MMBtu $ 2 $ — $ — $ — Increase natural gas basis swap US$0.10 MMBtu $ (8) $ — $ (1) $ — Decrease natural gas basis swap US$0.10 MMBtu $ 8 $ — $ 1 $ — Interest rate risk Increase interest rate 1% $ (53) $ (17) $ (48) $ (21) Decrease interest rate 1% $ 53 $ 20 $ 48 $ 24 Foreign currency exchange rate risk Weakening of the Canadian dollar by US$0.01 $ (126) $ — $ (103) $ — Strengthening of the Canadian dollar by US$0.01 $ 123 $ — $ 100 $ — b) Credit Risk Credit risk is the risk that a party to a financial instrument will cause a financial loss to the Company by failing to discharge an obligation. COUNTERPARTY CREDIT RISK MANAGEMENT The Company’s accounts receivable are mainly with customers in the crude oil and natural gas industry and are subject to normal industry credit risks. The Company manages these risks by reviewing its exposure to individual companies on a regular basis and where appropriate, ensures that parental guarantees or letters of credit are in place to minimize the impact in the event of default. At December 31, 2020, substantially all of the Company’s accounts receivable were due within normal trade terms and the average expected credit loss was approximately 1% of the Company's accounts receivable balance (December 31, 2019 – 1%). The Company is also exposed to possible losses in the event of nonperformance by counterparties to derivative financial instruments; however, the Company manages this credit risk by entering into agreements with counterparties that are substantially all investment grade financial institutions. At December 31, 2020, the Company had net risk management assets of $129 million with specific counterparties related to derivative financial instruments (December 31, 2019 – $265 million). The carrying amount of financial assets approximates the maximum credit exposure. c) Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. Management of liquidity risk requires the Company to maintain sufficient cash and cash equivalents, along with other sources of capital, consisting primarily of cash flow from operating activities, available credit facilities, commercial paper and access to debt capital markets, to meet obligations as they become due. The Company believes it has adequate bank credit facilities to provide liquidity to manage fluctuations in the timing of the receipt and/or disbursement of operating cash flows. The maturity dates of the Company’s financial liabilities were as follows: Less than 1 year 1 to less than 2 years 2 to less than 5 years Thereafter Accounts payable $ 667 $ — $ — $ — Accrued liabilities $ 2,346 $ — $ — $ — Long-term debt (1) $ 1,343 $ 4,887 $ 7,051 $ 8,279 Other long-term liabilities (2) $ 345 $ 200 $ 435 $ 942 Interest and other financing expense (3) $ 776 $ 693 $ 1,619 $ 4,452 (1) Long-term debt represents principal repayments only and does not reflect interest, original issue discounts and premiums or transaction costs. (2) Lease payments included within other long-term liabilities reflect principal payments only and are as follows; less than one year, $189 million; one to less than two years, $162 million; two to less than five years, $397 million; and thereafter $942 million. (3) Includes interest and other financing expense on long-term debt and other long-term liabilities. Payments were estimated based upon applicable interest and foreign exchange rates at December 31, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, the Company has committed to certain payments. The following table summarizes the Company’s commitments as at December 31, 2020: 2021 2022 2023 2024 2025 Thereafter Product transportation and processing (1)(2) $ 870 $ 817 $ 858 $ 841 $ 809 $ 10,370 North West Redwater Partnership service toll (3) $ 163 $ 160 $ 160 $ 156 $ 150 $ 2,694 Offshore vessels and equipment $ 64 $ 9 $ — $ — $ — $ — Field equipment and power $ 28 $ 21 $ 21 $ 21 $ 21 $ 246 Other $ 25 $ 21 $ 21 $ 22 $ 22 $ 16 (1) Includes commitments pertaining to a 20-year product transportation agreement on the Trans Mountain Pipeline Expansion. In addition, the Company has entered into certain product transportation agreements on pipelines that have not yet received regulatory and other approvals. (2) The acquisition of Painted Pony in 2020 included approximately $2,400 million of product transportation and processing commitments (note 7). (3) Pursuant to the processing agreements, on June 1, 2018 the Company began paying its 25% pro rata share of the debt component of the monthly cost of service tolls. Included in the cost of service tolls is $1,169 million of interest payable over the 30-year tolling period (note 10). In addition to the commitments disclosed above, the Company has entered into various agreements related to the engineering, procurement and construction of its various development projects. These contracts can be cancelled by the Company upon notice without penalty, subject to the costs incurred up to and in respect of the cancellation. The Company is defendant and plaintiff in a number of legal actions arising in the normal course of business. In addition, the Company is subject to certain contractor construction claims. The Company believes that any liabilities that might arise pertaining to any such matters would not have a material effect on its consolidated financial position. |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 12 Months Ended |
Dec. 31, 2020 | |
Statement Of Cash Flows, Additional Disclosures [Abstract] | |
Supplemental Disclosure of Cash Flow Information | Supplemental Disclosure of Cash Flow Information 2020 2019 2018 Changes in non-cash working capital: Accounts receivable $ 284 $ (1,310) $ 1,233 Current income tax assets (liabilities) (295) (164) 471 Inventory 98 (194) (74) Prepaids and other (56) 2 (3) Other long-term assets (117) 117 — Accounts payable (147) 39 (7) Accrued liabilities (254) 265 (268) Other long-term liabilities (1) (62) (23) (351) Net changes in non-cash working capital $ (549) $ (1,268) $ 1,001 Relating to: Operating activities $ (166) $ (1,033) $ 1,346 Investing activities (383) (235) (345) $ (549) $ (1,268) $ 1,001 2020 2019 2018 Expenditures on exploration and evaluation assets $ 36 $ 73 $ 282 Net proceeds on sale of exploration and evaluation assets (31) — (16) Net expenditures on exploration and evaluation assets $ 5 $ 73 $ 266 (1) Included in Other long-term liabilities at December 31, 2020 is $72 million of deferred purchase consideration payable over the next three years (December 31, 2019 – $95 million; 2018 - $118 million). The following table summarizes movements in the Company's liabilities arising from financing activities for the years' ended December 31, 2020 and 2019: Long-term debt Cash flow hedges on US dollar debt securities Lease liabilities Liabilities from financing activities At January 1, 2019 (1) $ 20,623 $ (361) $ 1,539 $ 21,801 Changes from financing cash flows: Issue of long-term debt, net (2) 1,025 — — 1,025 Payment of lease liabilities — — (237) (237) Non-cash changes: Lease additions — — 527 527 Changes in foreign exchange and fair value (3) (666) 162 (20) (524) At December 31, 2019 20,982 (199) 1,809 22,592 Changes from financing cash flows: Issue of long-term debt, net (2) 719 — — 719 Repayment of Painted Pony long-term debt (397) — — (397) Proceeds on settlement of cross currency swaps — 166 — 166 Payment of lease liabilities — — (225) (225) Non-cash changes: Assumption of Painted Pony long-term debt 397 — — 397 Lease additions — — 148 148 Changes in foreign exchange and fair value (3) (248) 5 (42) (285) At December 31, 2020 $ 21,453 $ (28) $ 1,690 $ 23,115 (1) The Company adopted IFRS 16 "Leases" on January 1, 2019 using the modified retrospective approach. (2) Includes original issue discounts and premiums, and directly attributable transaction costs. (3) Includes foreign exchange (gain) loss, changes in the fair value of cash flow hedges on US dollar debt securities, the amortization of original issue discounts and premiums and directly attributable transaction costs, and derecognition of lease liabilities. |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2020 | |
Operating Segments [Abstract] | |
Segmented Information | Segmented Information The Company’s exploration and production activities are conducted in three geographic segments: North America, North Sea and Offshore Africa. These activities include the exploration, development, production and marketing of crude oil, natural gas liquids and natural gas. The Company’s Oil Sands Mining and Upgrading activities are reported in a separate segment from exploration and production activities. Midstream and Refining activities include the Company’s pipeline operations, an electricity co-generation system and NWRP. Segmented revenue and segmented results include transactions between business segments. Sales between segments are made at prices that approximate market prices, taking into account the volumes involved. These transactions and any unrealized profits and losses are eliminated on consolidation, unless unrealized losses provide evidence of an impairment of the asset transferred. Sales to external customers are based on the location of the seller. North America North Sea Offshore Africa (millions of Canadian dollars) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Segmented product sales Crude oil and NGLs (1) $ 7,480 $ 9,679 $ 7,254 $ 417 $ 860 $ 753 $ 318 $ 632 $ 628 Natural gas 1,242 1,150 1,256 12 57 140 42 67 70 Other income and revenue (2) 41 6 — 3 5 — 18 8 — Total segmented product sales 8,763 10,835 8,510 432 922 893 378 707 698 Less: royalties (503) (998) (723) (1) (2) (2) (16) (42) (51) Segmented revenue 8,260 9,837 7,787 431 920 891 362 665 647 Segmented expenses Production 2,510 2,425 2,405 321 391 405 103 109 208 Transportation, blending and feedstock (1) (3) 3,393 2,935 2,587 15 19 22 1 2 2 Depletion, depreciation and amortization 3,780 3,326 3,132 277 308 257 190 242 201 Asset retirement obligation accretion 97 95 87 30 28 29 6 6 9 Realized risk management (commodity derivatives) (20) 49 (10) — — — — — — Gain on acquisition, disposition and revaluation (217) — (277) — — (139) — — (36) Equity loss from investments — — — — — — — — — Total segmented expenses 9,543 8,830 7,924 643 746 574 300 359 384 Segmented earnings (loss) before the following $ (1,283) $ 1,007 $ (137) $ (212) $ 174 $ 317 $ 62 $ 306 $ 263 Non–segmented expenses Administration Share-based compensation Interest and other financing expense Risk management activities (other) Foreign exchange (gain) loss Loss from investments Total non–segmented expenses Earnings (loss) before taxes Current income tax (recovery) expense Deferred income tax (recovery) expense Net earnings (loss) (1) Includes blending and feedstock costs associated with the processing of third party bitumen and other purchased feedstock in the Oil Sands Mining and Upgrading segment. (2) Includes the sale of diesel and other refined products and other income, including government grants and recoveries associated with the joint operations partners' share of the costs of lease contracts. (3) Includes a provision of $143 million relating to the Keystone XL pipeline project in the North America segment in 2020. Inter-segment elimination and Other includes internal and corporate transportation and electricity charges. Production, processing and other purchasing and selling activities, that are not included in the preceding segments are also reported in the segmented information as Inter-segment eliminations and Other. Operating segments are reported in a manner consistent with the internal reporting provided to the Company’s chief operating decision makers. Oil Sands Mining and Upgrading Midstream and Refining Inter–segment elimination and Other Total 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 $ 7,389 $ 11,340 $ 11,521 $ 83 $ 88 $ 102 $ (108) $ 351 $ 410 $ 15,579 $ 22,950 $ 20,668 — — — — — — 182 145 148 1,478 1,419 1,614 139 6 — 202 — — 31 — — 434 25 — 7,528 11,346 11,521 285 88 102 105 496 558 17,491 24,394 22,282 (78) (481) (479) — — — — — — (598) (1,523) (1,255) 7,450 10,865 11,042 285 88 102 105 496 558 16,893 22,871 21,027 3,114 3,276 3,367 184 20 21 48 56 58 6,280 6,277 6,464 881 1,306 1,087 181 — — 27 437 491 4,498 4,699 4,189 1,784 1,656 1,557 15 14 14 — — — 6,046 5,546 5,161 72 61 61 — — — — — — 205 190 186 — — — — — — — — — (20) 49 (10) — — — — — — — — — (217) — (452) — — — — 287 5 — — — — 287 5 5,851 6,299 6,072 380 321 40 75 493 549 16,792 17,048 15,543 $ 1,599 $ 4,566 $ 4,970 $ (95) $ (233) $ 62 $ 30 $ 3 $ 9 $ 101 $ 5,823 $ 5,484 391 344 325 (82) 223 (146) 756 836 739 13 28 (124) (275) (570) 827 171 6 341 974 867 1,962 (873) 4,956 3,522 (257) 434 374 (181) (894) 557 $ (435) $ 5,416 $ 2,591 (1) Includes blending and feedstock costs associated with the processing of third party bitumen and other purchased feedstock in the Oil Sands Mining and Upgrading segment. (2) Includes the sale of diesel and other refined products and other income, including government grants and recoveries associated with the joint operations partners' share of the costs of lease contracts. (3) Includes a provision of $143 million relating to the Keystone XL pipeline project in the North America segment in 2020. CAPITAL EXPENDITURES (1) 2020 2019 Net expenditures Non-cash and fair value changes (2) Capitalized costs Net expenditures Non-cash and fair value changes (2) Capitalized costs Exploration and evaluation assets Exploration and Production North America (3) $ (7) $ (150) $ (157) $ 129 $ (219) $ (90) Offshore Africa 12 3 15 35 (2) 33 5 (147) (142) 164 (221) (57) Property, plant and equipment Exploration and Production North America (3)(4) $ 999 $ 371 $ 1,370 $ 4,702 $ 918 $ 5,620 North Sea 122 (21) 101 196 153 349 Offshore Africa (5) 87 7 94 194 (1,476) (1,282) 1,208 357 1,565 5,092 (405) 4,687 Oil Sands Mining and Upgrading (6) 1,323 (629) 694 1,525 344 1,869 Midstream and Refining 5 1 6 10 — 10 Head office 19 — 19 34 (3) 31 $ 2,555 $ (271) $ 2,284 $ 6,661 $ (64) $ 6,597 (1) This table provides a reconciliation of capitalized costs, reported in note 6 and note 7, to net expenditures reported in the investing activities section of the statements of cash flows. The reconciliation excludes the impact of foreign exchange adjustments. (2) Derecognitions, asset retirement obligations, transfer of exploration and evaluation assets, and other fair value adjustments. (3) Includes cash consideration paid of $91 million for exploration and evaluation assets and $3,126 million for property, plant and equipment acquired from Devon in 2019. (4) Includes cash consideration paid of $111 million for the acquisition of Painted Pony in 2020. (5) Includes a derecognition of property, plant and equipment of $1,515 million following the FPSO demobilization at the Olowi field, Gabon in 2019. (6) Net expenditures include capitalized interest and share-based compensation. SEGMENTED ASSETS 2020 2019 Exploration and Production North America $ 29,094 $ 30,963 North Sea 1,624 1,948 Offshore Africa 1,407 1,529 Other 81 30 Oil Sands Mining and Upgrading 41,567 42,006 Midstream and Refining 1,301 1,418 Head office 202 227 $ 75,276 $ 78,121 |
Remuneration of Directors and S
Remuneration of Directors and Senior Management | 12 Months Ended |
Dec. 31, 2020 | |
Related Party [Abstract] | |
Remuneration of Directors and Senior Management | Remuneration of Directors and Senior Management Remuneration of Non-Management Directors 2020 2019 2018 Fees earned $ 2 $ 2 $ 2 Remuneration of Senior Management (1) 2020 2019 2018 Salary $ 2 $ 2 $ 2 Common stock option based awards 9 8 8 Annual incentive plans 4 6 4 Long-term incentive plans 14 20 15 $ 29 $ 36 $ 29 (1) Senior management identified above are consistent with the disclosure on Named Executive Officers provided in the Company’s Information Circular to shareholders for the respective years. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
IFRS compliance | The Company’s consolidated financial statements and the related notes have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The accounting policies adopted by the Company under IFRS are set out below. The Company has consistently applied the same accounting policies throughout all periods presented, except where IFRS permits new accounting standards to be adopted prospectively. Changes in the Company's accounting policies are discussed in note 2. |
Principles of consolidation | PRINCIPLES OF CONSOLIDATION The consolidated financial statements have been prepared under the historical cost basis, unless otherwise required. The consolidated financial statements include the accounts of the Company and all of its subsidiary companies and wholly owned partnerships. Subsidiaries include all entities over which the Company has control. Subsidiaries are consolidated from the date on which the Company obtains control. They are deconsolidated from the date that control ceases. Certain of the Company’s activities are conducted through joint arrangements in which two or more parties have joint control. Where the Company has determined that it has a direct ownership interest in jointly controlled assets and obligations for the liabilities (a "joint operation"), the assets, liabilities, revenue and expenses related to the joint operation are included in the consolidated financial statements in proportion to the Company’s interest. Where the Company has determined that it has an interest in jointly controlled entities (a "joint venture"), it uses the equity method of accounting. Under the equity method, the Company’s initial and subsequent investments are recognized at cost and subsequently adjusted for the Company’s share of the joint venture’s income or loss, less distributions received. If the Company’s share of the joint venture’s loss equals or exceeds its interest in the joint venture, the Company discontinues recognizing its share of further losses. The Company resumes recognizing profits when its share of profits exceeds the accumulated share of losses not recognized. Joint ventures accounted for using the equity method of accounting are tested for impairment whenever objective evidence indicates that the carrying amount of the investment may not be recoverable. Indications of impairment include a history of losses, significant capital expenditure overruns, liquidity concerns, financial restructuring of the investee or significant adverse changes in the technological, economic or legal environment. The amount of the impairment is measured as the difference between the carrying amount of the investment and the higher of its fair value less costs of disposal and its value in use. Impairment losses are reversed in subsequent periods if the amount of the loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized. |
Segmented information | SEGMENTED INFORMATIONOperating segments have been determined based on the nature of the Company’s activities and the geographic locations in which the Company operates, and are consistent with the level of information regularly provided to and reviewed by the Company’s chief operating decision makers. |
Cash and cash equivalents | CASH AND CASH EQUIVALENTSCash comprises cash on hand and demand deposits. Other investments (term deposits and certificates of deposit) with an original term to maturity at purchase of three months or less are reported as cash equivalents in the consolidated balance sheets. |
Inventory | INVENTORYInventory is primarily comprised of product inventory and materials and supplies and is carried at the lower of cost and net realizable value. Product inventory is comprised of crude oil held for sale, including pipeline linefill and crude oil stored in floating production, storage and offloading vessels ("FPSO"). Cost of product inventory consists of purchase costs, direct production costs, directly attributable overhead and depletion, depreciation and amortization and is determined on a first-in, first-out basis. Net realizable value for product inventory is determined by reference to forward prices. Cost for materials and supplies consists of purchase costs and is based on a first-in, first-out or an average cost basis. Net realizable value for materials and supplies is determined by reference to current market prices. |
Exploration and evaluation assets | EXPLORATION AND EVALUATION ASSETS Exploration and evaluation ("E&E") assets consist of the Company’s crude oil and natural gas exploration projects that are pending the determination of proved reserves. E&E costs are initially capitalized and include costs directly associated with the acquisition of licenses, technical services and studies, seismic acquisition, exploration drilling and evaluation, overhead and administration expenses, and the estimate of any asset retirement costs. E&E costs do not include general prospecting or evaluation costs incurred prior to having obtained the legal rights to explore an area. These costs are recognized in net earnings. Once the technical feasibility and commercial viability of E&E assets are determined and a development decision is made by management, the E&E assets are tested for impairment upon reclassification to property, plant and equipment. The technical feasibility and commercial viability of extracting a mineral resource is considered to be determined when an assessment of proved reserves is made. An E&E asset is derecognized upon disposal or when no future economic benefits are expected to arise from its use. Any gain or loss arising on derecognition of the asset is recognized in net earnings within depletion, depreciation and amortization. E&E assets are also tested for impairment when facts and circumstances suggest that the carrying amount of E&E assets may exceed their recoverable amount, by comparing the relevant costs to the fair value of the related Cash Generating Units ("CGUs"), aggregated at a segment level. Indications of impairment include leases approaching expiry, the existence of low benchmark commodity prices for an extended period of time, significant downward revisions in estimated probable reserves volumes, significant increases in estimated future exploration or development expenditures, or significant adverse changes in the applicable legislative or regulatory frameworks. |
Property, plant and equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment is measured at cost less accumulated depletion and depreciation and impairment provisions. Assets under construction are not depleted or depreciated until available for their intended use. Exploration and Production The cost of an asset comprises its acquisition costs, construction and development costs, costs directly attributable to bringing the asset into operation, the estimate of any asset retirement costs, and applicable borrowing costs. Property acquisition costs are comprised of the aggregate amount paid and the fair value of any other consideration given to acquire the asset. When significant components of an item of property, plant and equipment, including crude oil and natural gas interests, have different useful lives, they are accounted for separately. Crude oil and natural gas properties are depleted using the unit-of-production method over proved reserves, except for certain major components, which are depreciated using a straight-line method over their estimated useful lives. The unit-of-production depletion rate takes into account expenditures incurred to date, together with future development expenditures required to develop proved reserves. Oil Sands Mining and Upgrading Capitalized costs for the Oil Sands Mining and Upgrading segment are reported separately from the Company’s North America Exploration and Production segment. Capitalized costs include acquisition costs, construction and development costs, costs directly attributable to bringing the asset into operation, the estimate of any asset retirement costs, and applicable borrowing costs. Mine-related costs are depleted using the unit-of-production method based on proved reserves. Costs of the upgraders and related infrastructure located on the Horizon and AOSP sites are depreciated on the unit-of-production method based on the estimated productive capacity of the respective upgraders and related infrastructure. Other equipment is depreciated on a straight-line basis over its estimated useful life ranging from 2 to 18 years. Midstream, Refining and Head Office The Company capitalizes all costs that expand the capacity or extend the useful life of the midstream, refining and head office assets. Midstream and Refining assets are depreciated on a straight-line basis over their estimated useful lives ranging from 5 to 30 years. Head office assets are depreciated on a declining balance basis. Useful lives The depletion rates and expected useful lives of property, plant and equipment are reviewed on an annual basis, with changes in depletion rates and useful lives accounted for prospectively. Derecognition A property, plant and equipment asset is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognized in net earnings within depletion, depreciation and amortization. Major maintenance expenditures Inspection costs associated with major maintenance turnarounds are capitalized and depreciated over the period to the next major maintenance turnaround. Maintenance costs are expensed as incurred. Impairment The Company assesses property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be recoverable. Indications of impairment include the existence of low benchmark commodity prices for an extended period of time, significant downward revisions of estimated reserves volumes, significant increases in estimated future development expenditures, or significant adverse changes in the applicable legislative or regulatory frameworks. If an indication of impairment exists, the Company performs an impairment test related to the assets. Individual assets are grouped for impairment assessment purposes into CGUs, which are the lowest level at which there are identifiable cash inflows that are largely independent of the cash inflows of other groups of assets. A CGU's recoverable amount is the higher of its fair value less costs of disposal and its value in use. Where the carrying amount of a CGU exceeds its recoverable amount, the CGU is considered impaired and is written down to its recoverable amount through depletion, depreciation and amortization expense. |
Business combinations | BUSINESS COMBINATIONSBusiness combinations are accounted for using the acquisition method. Assets acquired and liabilities assumed in a business combination are recognized at their fair value at the date of the acquisition. Any excess of the consideration paid over the fair value of the net assets acquired is recognized as an asset. Any excess of the fair value of the net assets acquired over the consideration paid is recognized in net earnings. |
Overburden removal costs | OVERBURDEN REMOVAL COSTS Overburden removal costs incurred during the initial development of a mine at Horizon and AOSP are capitalized to property, plant and equipment. Overburden removal costs incurred during the production of a mine are included in the cost of inventory, unless the overburden removal activity has resulted in a probable inflow of future economic benefits to the Company, in which case the costs are capitalized to property, plant and equipment. Capitalized overburden removal costs are depleted over the life of the mining reserves that directly benefit from the overburden removal activity. |
Capitalized borrowing costs | CAPITALIZED BORROWING COSTSBorrowing costs attributable to the acquisition, construction or production of qualifying assets are capitalized to the cost of those assets until such time as the assets are substantially available for their intended use. Qualifying assets are comprised of those significant assets that require a period greater than one year to be available for their intended use. All other borrowing costs are recognized in net earnings. |
Leases | LEASES At inception of a contract, the Company assesses whether a contract is, or contains a lease. A contract is, or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: the contract involves the use of an identified asset; the Company has the right to obtain substantially all of the economic benefits from the use of the asset throughout the period of use; and, the Company has the right to direct the use of the asset. The Company recognizes a lease asset and a lease liability at the commencement date of the lease contract, which is the date that the lease asset is available to the Company. The lease asset is initially measured at cost. The cost of a lease asset includes the amount of the initial measurement of the lease liability, lease payments made prior to the commencement date, initial direct costs and estimates of the asset retirement obligation, if any. Subsequent to initial recognition, the lease asset is depreciated using the straight-line method over the earlier of the end of the useful life of the lease asset or the lease term. Lease liabilities are initially measured at the present value of lease payments discounted at the rate implicit in the lease, or if not readily determinable, the Company's incremental borrowing rate. Lease payments include fixed lease payments, variable lease payments based on indices or rates, residual value guarantees, and purchase options expected to be exercised. Subsequent to initial recognition, the lease liability is measured at amortized cost using the effective interest method. Lease liabilities are remeasured if there are changes in the lease term or if the Company changes its assessment of whether it is reasonably certain it will exercise a purchase, extension or termination option. Lease liabilities are also remeasured if there are changes in the estimate of the amounts payable under the lease due to changes in indices or rates, or residual value guarantees. Lease assets are reported in a separate caption in the consolidated balance sheet. Lease liabilities are reported within other long-term liabilities in the consolidated balance sheet. Depreciation on lease assets used in the construction of property, plant and equipment is capitalized to the cost of those assets over their period of use until such time as the property, plant and equipment is substantially available for its intended use. Where the Company acts as the operator of a joint operation, the Company recognizes 100% of the related lease asset and lease liability. As the Company recovers its joint operation partners' share of the costs of the lease contract, these recoveries are recognized as other income in the consolidated statements of earnings. On January 1, 2019 the Company adopted IFRS 16 "Leases" and as permitted in the transition requirements of the standard, the Company continues to account for leases for the year ended December 31, 2018 in accordance with the Company's previous accounting policy for leases as follows: |
Asset retirement obligations | ASSET RETIREMENT OBLIGATIONSThe Company provides for asset retirement obligations on all of its property, plant and equipment and certain exploration and evaluation assets based on current legislation and industry operating practices. Provisions for asset retirement obligations related to property, plant and equipment are recognized as a liability in the period in which they are incurred. Provisions are measured at the present value of management’s best estimate of expenditures required to settle the obligation as at the date of the balance sheets. Subsequent to the initial measurement, the obligation is adjusted to reflect the passage of time, changes in credit adjusted interest rates, and changes in the estimated future cash flows underlying the obligation. The increase in the provision due to the passage of time is recognized as asset retirement obligation accretion expense whereas changes due to discount rates or estimated future cash flows are capitalized to or derecognized from property, plant and equipment. Actual costs incurred upon settlement of the asset retirement obligation are charged against the provision. |
Foreign currency translation | FOREIGN CURRENCY TRANSLATION Functional and presentation currency Items included in the financial statements of the Company’s subsidiary companies and partnerships are measured using the currency of the primary economic environment in which the subsidiary operates (the "functional currency"). The consolidated financial statements are presented in Canadian dollars, which is the Company’s functional currency. The assets and liabilities of subsidiaries that have a functional currency different from that of the Company are translated into Canadian dollars at the closing rate at the date of the balance sheets, and revenue and expenses are translated at the average rate for the period. Cumulative foreign currency translation adjustments are recognized in other comprehensive income. When the Company disposes of its entire interest in a foreign operation, or loses control, joint control, or significant influence over a foreign operation, the foreign currency gains or losses accumulated in other comprehensive income related to the foreign operation are recognized in net earnings. Transactions and balances Foreign currency transactions are translated into the functional currency of the Company and its subsidiaries and partnerships using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at balance sheet date exchange rates of monetary assets and liabilities denominated in currencies other than the functional currency are recognized in net earnings. |
Revenue recognition | Revenue from the sale of crude oil and NGLs and natural gas products is recognized when performance obligations in the sales contract are satisfied and it is probable that the Company will collect the consideration to which it is entitled. Performance obligations are generally satisfied at the point in time when the product is delivered to a location specified in a contract and control passes to the customer. The Company assesses customer creditworthiness, both before entering into contracts and throughout the revenue recognition process. Contracts for sale of the Company’s products generally have terms of less than a year, with certain contracts extending beyond one year. Contracts in North America generally specify delivery of crude oil and NGLs and natural gas throughout the term of the contract. Contracts in the North Sea and Offshore Africa generally specify delivery of crude oil at a point in time. Sales of the Company’s crude oil and NGLs and natural gas products to customers are made pursuant to contracts based on prevailing commodity pricing at or near the time of delivery and volumes of product delivered. Revenues are typically collected in the month following delivery and accordingly, the Company has elected to apply the practical expedient to not adjust consideration for the effects of a financing component. Purchases and sales of crude oil and NGLs and natural gas with the same counterparty, made to facilitate sales to customers or potential customers, that are entered into in contemplation of one another, are combined and recorded as non-monetary exchanges and measured at the net settlement amount. |
Cost of goods sold | Related costs of goods sold are comprised of production, transportation, blending and feedstock, and depletion, depreciation and amortization expenses. These amounts have been separately presented in the consolidated statements of earnings. |
Production sharing contracts | PRODUCTION SHARING CONTRACTS Production generated from Côte d’Ivoire and Gabon in Offshore Africa is shared under the terms of various Production Sharing Contracts ("PSCs"). Product sales are divided into cost recovery oil and profit oil. Cost recovery oil allows the Company to recover its capital and production costs and the costs carried by the Company on behalf of the respective government state oil companies (the "Governments"). Profit oil is allocated to the joint venture partners in accordance with their respective equity interests, after a portion has been allocated to the Governments. The Governments’ share of profit oil attributable to the Company’s equity interest is allocated to royalty expense and current income tax expense in accordance with the terms of the respective PSCs. |
Income tax | INCOME TAX The Company follows the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized based on the estimated income tax effects of temporary differences in the carrying amount of assets and liabilities in the consolidated financial statements and their respective tax bases. Deferred income tax assets and liabilities are calculated using the substantively enacted income tax rates that are expected to apply when the asset or liability is recovered. Deferred income tax assets or liabilities are not recognized when they arise on the initial recognition of an asset or liability in a transaction (other than in a business combination) that, at the time of the transaction, affects neither accounting nor taxable profit. Deferred income tax assets or liabilities are also not recognized on possible future distributions of retained earnings of subsidiaries where the timing of the distribution can be controlled by the Company and it is probable that a distribution will not be made in the foreseeable future, or when distributions can be made without incurring income taxes. Deferred income tax assets for deductible temporary differences and tax loss carryforwards are recognized to the extent that it is probable that future taxable profits will be available against which the temporary differences or tax loss carryforwards can be utilized. The carrying amount of deferred income tax assets is reviewed at each reporting date, and is reduced if it is no longer probable that sufficient future taxable profits will be available against which the temporary differences or tax loss carryforwards can be utilized. Current income tax is calculated based on net earnings for the period, adjusted for items that are non-taxable or taxed in different periods, using income tax rates that are substantively enacted at each reporting date. Income taxes are recognized in net earnings or other comprehensive income, consistent with the items to which they relate. |
Share-based compensation | SHARE-BASED COMPENSATION The Company’s Stock Option Plan (the "Option Plan") provides current employees with the right to elect to receive common shares or a cash payment in exchange for stock options surrendered. The liability for awards granted to employees is initially measured based on the grant date fair value of the awards and the number of awards expected to vest. The awards are remeasured each reporting period for subsequent changes in the fair value of the liability. Fair value is determined using the Black-Scholes valuation model under a graded vesting method. Expected volatility is estimated based on historic results. When stock options are surrendered for cash, the cash settlement paid reduces the outstanding liability. When stock options are exercised for common shares under the Option Plan, consideration paid by the employee and any previously recognized liability associated with the stock options are recorded as share capital. The Performance Share Unit ("PSU") plan provides certain executive employees of the Company with the right to receive a cash payment, the amount of which is determined by individual employee performance and the extent to which certain other performance measures are met. PSUs vest three years from original grant date. The liability for PSUs is initially measured in reference to the Company's stock price and the number of awards expected to vest and is remeasured at each reporting period for changes in the fair value of the liability. The unamortized costs of employer contributions to the Company’s share bonus program are included in other long-term assets . |
Financial instruments | FINANCIAL INSTRUMENTS The Company classifies its financial instruments into one of the following categories: financial assets at amortized cost; financial liabilities at amortized cost; and fair value through profit or loss. All financial instruments are measured at fair value on initial recognition. Measurement in subsequent periods is dependent on the classification of the respective financial instrument. Fair value through profit or loss financial instruments are subsequently measured at fair value with changes in fair value recognized in net earnings. All other categories of financial instruments are measured at amortized cost using the effective interest method. Cash and cash equivalents, accounts receivable and certain other long-term assets are classified as financial assets at amortized cost since it is the Company’s intention to hold these assets to maturity and the related cash flows are solely comprised of payments of principal and interest. Investments in publicly traded shares are classified as fair value through profit or loss. Accounts payable, accrued liabilities, certain other long-term liabilities, and long-term debt are classified as financial liabilities at amortized cost. Risk management assets and liabilities are classified as fair value through profit or loss. Financial assets and liabilities are also categorized using a three-level hierarchy that reflects the significance of the inputs used in making fair value measurements for these assets and liabilities. The fair values of financial assets and liabilities included in Level 1 are determined by reference to quoted prices in active markets for identical assets and liabilities. Fair values of financial assets and liabilities in Level 2 are based on inputs other than Level 1 quoted prices that are observable for the asset or liability either directly (as prices) or indirectly (derived from prices). The fair values of Level 3 financial assets and liabilities are not based on observable market data. The disclosure of the fair value hierarchy excludes financial assets and liabilities where book value approximates fair value due to the liquid nature of the asset or liability. Transaction costs in respect of financial instruments at fair value through profit or loss are recognized in net earnings. Transaction costs in respect of other financial instruments are included in the initial measurement of the financial instrument. Impairment of financial assets At each reporting date, on a forward looking basis, the Company assesses the expected credit losses associated with its financial assets carried at amortized cost. Expected credit losses are measured as the difference between the cash flows that are due to the Company and the cash flows that the Company expects to receive, discounted at the effective interest rate determined at initial recognition. For trade accounts receivable, the Company applies the simplified approach permitted by IFRS 9, which requires expected lifetime credit losses to be recognized from initial recognition of the receivables. To measure expected credit losses, accounts receivable are grouped based on the number of days the receivables have been outstanding and internal credit assessments of the customers. Credit risk for longer-term receivables is assessed based on an external credit rating of the counterparty. For longer-term receivables with credit risk that has not increased significantly since the date of recognition, the Company measures the expected credit loss as the 12-month expected credit loss. Changes in the provision for expected credit loss are recognized in net earnings. |
Risk management activities | RISK MANAGEMENT ACTIVITIES The Company periodically uses derivative financial instruments to manage its commodity price, foreign currency and interest rate exposures. These financial instruments are entered into solely for hedging purposes and are not used for speculative purposes. All derivative financial instruments are recognized in the consolidated balance sheets at their estimated fair value. The estimated fair value of derivative financial instruments has been determined based on appropriate internal valuation methodologies and/or third party indications. Fair values determined using valuation models require the use of assumptions concerning the amount and timing of future cash flows, discount rates and credit risk. In determining these assumptions, the Company primarily relied on external, readily-observable market inputs including quoted commodity prices and volatility, interest rate yield curves, and foreign exchange rates. The carrying amount of a risk management liability is adjusted for the Company’s own credit risk. The Company documents all derivative financial instruments that are formally designated as hedging transactions at the inception of the hedging relationship, in accordance with the Company’s risk management policies. The effectiveness of the hedging relationship is evaluated, both at inception of the hedge and on an ongoing basis. The Company periodically enters into commodity price contracts to manage anticipated sales and purchases of crude oil and natural gas in order to protect its cash flow for its capital expenditure programs. The effective portion of changes in the fair value of derivative commodity price contracts formally designated as cash flow hedges is initially recognized in other comprehensive income and is reclassified to risk management activities in net earnings in the same period or periods in which the commodity is sold or purchased. The ineffective portion of changes in the fair value of these designated contracts is recognized in risk management activities in net earnings. All changes in the fair value of non-designated crude oil and natural gas commodity price contracts are recognized in risk management activities in net earnings. The Company periodically enters into interest rate swap contracts to manage its fixed to floating interest rate mix on certain long-term debt instruments. The interest rate swap contracts require the periodic exchange of payments without the exchange of the notional principal amounts on which the payments are based. Changes in the fair value of interest rate swap contracts designated as fair value hedges and corresponding changes in the fair value of the hedged long-term debt are recognized in interest expense in net earnings. Changes in the fair value of non-designated interest rate swap contracts are recognized in risk management activities in net earnings. Upon termination of an interest rate swap designated as a fair value hedge, the interest rate swap is derecognized in the consolidated balance sheets and the related long-term debt hedged is no longer revalued for subsequent changes in fair value due to interest rates changes. The fair value adjustment due to interest rates on the long-term debt at the date of termination of the interest rate swap is amortized to interest expense over the remaining term of the long-term debt. Cross currency swap contracts are periodically used to manage currency exposure on US dollar denominated long-term debt. The cross currency swap contracts require the periodic exchange of payments with the exchange at maturity of notional principal amounts on which the payments are based. Changes in the fair value of the foreign exchange component of cross currency swap contracts designated as cash flow hedges related to the notional principal amounts are recognized in foreign exchange gains and losses in net earnings. The effective portion of changes in the fair value of the interest rate component of cross currency swap contracts designated as cash flow hedges is initially recognized in other comprehensive income and is reclassified to interest expense when the hedged item is recognized in net earnings, with the ineffective portion recognized in risk management activities in net earnings. Changes in the fair value of non-designated cross currency swap contracts are recognized in risk management activities in net earnings. Realized gains or losses on the termination of financial instruments that have been designated as cash flow hedges are deferred under accumulated other comprehensive income and amortized into net earnings in the periods in which the underlying hedged items are recognized. In the event a designated hedged item is sold, extinguished or matures prior to the termination of the related derivative instrument, any unrealized derivative gain or loss is recognized in net earnings. Realized gains or losses on the termination of financial instruments that have not been designated as hedges are recognized in net earnings. Foreign currency forward contracts are periodically used to manage foreign currency cash requirements. The foreign currency forward contracts involve the purchase or sale of an agreed upon amount of US dollars at a specified future date at forward exchange rates. Changes in the fair value of foreign currency forward contracts designated as cash flow hedges are initially recorded in other comprehensive income and are reclassified to foreign exchange gains and losses when the hedged item is recognized in net earnings. Changes in the fair value of non-designated foreign currency forward contracts are recognized in risk management activities in net earnings. Embedded derivatives are derivatives that are included in a non-derivative host contract. Embedded derivatives are recorded at fair value separately from the host contract when their economic characteristics and risks are not clearly and closely related to the host contract, except when the host contract is an asset. |
Government grants | GOVERNMENT GRANTSThe Company receives or is eligible for government grants, including those introduced in response to the impact of the novel coronavirus ("COVID-19"). Government grants are recognized when there is reasonable assurance that the Company will comply with the conditions attached to the grant and the grant will be received. Grants that are intended to compensate for expenses incurred are classified as other income. |
Comprehensive income (loss) | COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) is comprised of the Company’s net earnings and other comprehensive income (loss). Other comprehensive income (loss) includes the effective portion of changes in the fair value of derivative financial instruments designated as cash flow hedges and foreign currency translation gains and losses arising from the net investment in foreign operations that do not have a Canadian dollar functional currency. Other comprehensive income is shown net of related income taxes . |
Per common share amounts | PER COMMON SHARE AMOUNTSThe Company calculates basic earnings per common share by dividing net earnings by the weighted average number of common shares outstanding during the period. As the Company’s Option Plan allows for the settlement of stock options in either cash or shares at the option of the holder, diluted earnings per common share is calculated using the more dilutive of cash settlement or share settlement under the treasury stock method. |
Share capital | SHARE CAPITALCommon shares are classified as equity. Costs directly attributable to the issue of new shares or options are included in equity as a deduction from proceeds, net of tax. When the Company acquires its own common shares, share capital is reduced by the average carrying value of the shares purchased. The excess of the purchase price over the average carrying value is recognized as a reduction of retained earnings. Shares are cancelled upon purchase. |
Dividends | DIVIDENDSDividends on common shares are recognized in the Company’s financial statements in the period in which the dividends are declared by the Board of Directors. |
Changes in other accounting policies | In October 2018, the IASB issued amendments to IFRS 3 "Definition of a Business" that narrowed and clarified the definition of a business. The amendments permit a simplified assessment of whether an acquired set of activities and assets is a group of assets rather than a business. The amendments apply to business combinations after the date of adoption. The Company prospectively adopted the amendments on January 1, 2020. In October 2018, the IASB issued amendments to IAS 1 "Presentation of Financial Statements" and IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors". The amendments make minor changes to the definition of the term "material" and align the definition across all IFRS Standards. Materiality is used in making judgements related to the preparation of financial statements. The Company prospectively adopted the amendments on January 1, 2020. |
Accounting standards issued but not yet applied | Accounting Standards Issued But Not Yet Applied In January 2020, the IASB issued amendments to IAS 1 "Presentation of Financial Statements" to clarify that liabilities are classified as either current or non-current, depending on the existence of the substantive right at the end of the reporting period for an entity to defer settlement of the liability for at least twelve months after the reporting period. The amendments are effective January 1, 2023 with early adoption permitted. The amendments are required to be adopted retrospectively. The Company is assessing the impact of these amendments on its consolidated financial statements. In May 2020, the IASB issued amendments to IAS 16 “Property, Plant and Equipment” to require proceeds received from selling items produced while the entity is preparing the asset for its intended use to be recognized in net earnings, rather than as a reduction in the cost of the asset. The amendments are effective January 1, 2022 with early adoption permitted. The Company is assessing the impact of these amendments on its consolidated financial statements. In August 2020, the IASB issued Interest Rate Benchmark Reform (Phase 2) in response to the Financial Stability Board’s mandated reforms to InterBank Offered Rates (“IBORs”), with financial regulators proposing that they be replaced by a number of new local currency denominated alternative benchmark rates. The amendments are effective for annual periods beginning on or after January 1, 2021 and are to be applied retrospectively, with early adoption permitted. The Company is assessing the impact of IBOR reform and the IASB amendments and does not expect that these amendments will have a significant impact on the Company's consolidated financial statements. |
Critical accounting estimates and judgements | Critical Accounting Estimates and Judgements The Company has made estimates, assumptions and judgements regarding certain assets, liabilities, revenues and expenses in the preparation of the consolidated financial statements, primarily related to unsettled transactions and events as of the date of the consolidated financial statements. Accordingly, actual results may differ from estimated amounts. The estimates, assumptions and judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. (A) CRUDE OIL AND NATURAL GAS RESERVES Purchase price allocations, depletion, depreciation and amortization, asset retirement obligations, and amounts used in impairment calculations are based on estimates of crude oil and natural gas reserves. Reserves estimates are based on engineering data, estimated future prices and production costs, expected future rates of production, and the timing and amount of future development expenditures, all of which are subject to many uncertainties, interpretations and judgements. The Company expects that, over time, its reserves estimates will be revised upward or downward based on updated information. (B) ASSET RETIREMENT OBLIGATIONS The Company provides for asset retirement obligations on its property, plant and equipment based on current legislation and operating practices. Estimated future costs include assumptions of dates of future abandonment and technological advances and estimates of future inflation rates and discount rates. Actual costs may vary from the estimated provision due to changes in environmental legislation, the impact of inflation, changes in technology, changes in operating practices, and changes in the date of abandonment due to changes in reserves life. These differences may have a material impact on the estimated provision. (C) INCOME TAXES The Company is subject to income taxes in numerous legal jurisdictions. Accounting for income taxes requires the Company to interpret frequently changing laws and regulations, including changing income tax rates, and make certain judgements with respect to the application of tax law, estimating the timing of temporary difference reversals, and estimating the realizability of tax assets. There are many transactions and calculations for which the ultimate tax determination is uncertain. The Company recognizes a liability for a tax filing position based on its assessment of the probability that additional taxes may ultimately be due. (D) FAIR VALUE OF DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses its judgement to select a variety of methods and make assumptions that are primarily based on market conditions existing at the end of each reporting period. The Company uses directly and indirectly observable inputs in measuring the value of financial instruments that are not traded in active markets, including quoted commodity prices and volatility, interest rate yield curves and foreign exchange rates. (E) PURCHASE PRICE ALLOCATIONS Purchase prices related to business combinations are allocated to the underlying acquired assets and liabilities based on their estimated fair value at the time of acquisition. The determination of fair value requires the Company to make estimates, assumptions and judgements regarding future events. The allocation process is inherently subjective and impacts the amounts assigned to individually identifiable assets and liabilities, including the fair value of crude oil and natural gas properties together with deferred income tax effects. As a result, the purchase price allocation impacts the Company’s reported assets and liabilities and future net earnings due to the impact on future depletion, depreciation, and amortization expense and impairment tests. (F) SHARE-BASED COMPENSATION The Company has made various assumptions in estimating the fair values of stock options granted under its Option Plan, including expected volatility, expected exercise timing and future forfeiture rates. At each period end, stock options outstanding are remeasured for changes in the estimated fair value of the liability. (G) IDENTIFICATION OF CGUs CGUs are defined as the lowest grouping of integrated assets that generate identifiable cash inflows that are largely independent of the cash inflows of other assets or groups of assets. The classification of assets into CGUs requires significant judgement and interpretations with respect to the integration between assets, the existence of active markets, shared infrastructures, and the way in which management monitors the Company’s operations. (H) IMPAIRMENT OF ASSETS The recoverable amount of a CGU or an individual asset has been determined as the higher of the CGUs' or the assets' fair value less costs of disposal and its value in use. These calculations require the use of estimates and assumptions and are subject to change as new information becomes available, including information on future commodity prices, expected production volumes, quantity of reserves, asset retirement obligations, future development and operating costs, after-tax discount rates (currently ranging from 10% to 12%), and income taxes. Changes in assumptions used in determining the recoverable amount could affect the carrying value of the related assets and CGUs. (I) LEASES Purchase, extension and termination options are included in certain of the Company's leases to provide operational flexibility. To measure the lease liability, the Company uses judgement to assess the likelihood of exercising these options. These assessments are reviewed when significant events or circumstances indicate that the likelihood of exercising these options may have changed. The Company also uses estimates to determine its incremental borrowing costs if the interest rate implicit in the lease is not readily determinable. (J) CONTINGENCIES Contingencies are subject to measurement uncertainty as the related financial impact will only be confirmed by the outcome of a future event. The assessment of contingencies requires the application of judgements and estimates including the determination of whether a present obligation exists and the reliable estimation of the timing and amount of cash flows required to settle the contingency. (K) IMPACT OF COVID-19 For the year ended December 31, 2020, COVID-19 had an impact on the global economy, including the oil and gas industry. Business conditions in 2020 reflected the market uncertainty associated with COVID-19. The Company has taken into account the impacts of COVID-19 and the unique circumstances it has created in making estimates, assumptions and judgements in the preparation of the consolidated financial statements, and continues to monitor the developments in the business environment and commodity market. Actual results may differ from estimated amounts, and those differences may be material. |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventories [Abstract] | |
Schedule of Inventory | 2020 2019 Product inventory $ 390 $ 468 Materials and supplies 670 684 $ 1,060 $ 1,152 |
Exploration and Evaluation As_2
Exploration and Evaluation Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Exploration For And Evaluation Of Mineral Resources [Abstract] | |
Detailed information about exploration and evaluation assets | Exploration and Production Oil Sands Mining and Upgrading Total North America North Sea Offshore Africa Cost At December 31, 2018 $ 2,348 $ — $ 37 $ 252 $ 2,637 Additions 38 — 33 — 71 Acquisition of Devon assets (note 7) 91 — — — 91 Transfers to property, plant and equipment (219) — — — (219) Foreign exchange adjustments — — (1) — (1) At December 31, 2019 2,258 — 69 252 2,579 Additions/Acquisitions 40 — 15 — 55 Transfers to property, plant and equipment (194) — — — (194) Derecognitions and other (3) — — — (3) Foreign exchange adjustments — — (1) — (1) At December 31, 2020 $ 2,101 $ — $ 83 $ 252 $ 2,436 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
Detailed information about property, plant and equipment | Exploration and Production Oil Sands Mining and Upgrading Midstream and Refining Head Office Total North America North Sea Offshore Africa Cost At December 31, 2018 $ 67,007 $ 7,321 $ 5,471 $ 43,147 $ 441 $ 435 $ 123,822 Additions 2,613 349 233 2,154 10 34 5,393 Acquisition of Devon assets 3,325 — — — — — 3,325 Transfers from E&E assets 219 — — — — — 219 Derecognitions (1) (537) — (1,515) (285) — (3) (2,340) Foreign exchange adjustments and other — (374) (256) — — — (630) At December 31, 2019 72,627 7,296 3,933 45,016 451 466 129,789 Additions/Acquisitions 1,789 104 94 1,328 6 19 3,340 Transfers from E&E assets 194 — — — — — 194 Derecognitions (521) (3) — (634) — — (1,158) Disposals (92) — — — — — (92) Foreign exchange adjustments and other — (114) (64) — — — (178) At December 31, 2020 $ 73,997 $ 7,283 $ 3,963 $ 45,710 $ 457 $ 485 $ 131,895 Accumulated depletion and depreciation At December 31, 2018 $ 43,881 $ 5,735 $ 4,203 $ 4,981 $ 138 $ 325 $ 59,263 Expense 3,215 256 214 1,564 15 23 5,287 Derecognitions (1) (537) — (1,515) (285) — (3) (2,340) Foreign exchange adjustments and other 18 (279) (190) (13) — — (464) At December 31, 2019 46,577 5,712 2,712 6,247 153 345 61,746 Expense 3,676 247 161 1,668 15 25 5,792 Derecognitions (521) (3) — (634) — — (1,158) Disposals (63) — — — — — (63) Foreign exchange adjustments and other (28) (103) (51) 8 — — (174) At December 31, 2020 $ 49,641 $ 5,853 $ 2,822 $ 7,289 $ 168 $ 370 $ 66,143 Net book value - at December 31, 2020 $ 24,356 $ 1,430 $ 1,141 $ 38,421 $ 289 $ 115 $ 65,752 - at December 31, 2019 $ 26,050 $ 1,584 $ 1,221 $ 38,769 $ 298 $ 121 $ 68,043 (1) Following demobilization of the FPSO at the Olowi field, Gabon in 2019, the Company derecognized property, plant and equipment and associated accumulated depletion and depreciation of $1,515 million. |
Summary of net assets acquired and liabilities assumed | The following provides a summary of the net assets acquired relating to the acquisition: Property, plant and equipment $ 750 Exploration and evaluation assets 15 Other long-term assets 204 Long-term debt (397) Asset retirement obligations (13) Other long-term liabilities (442) Deferred tax asset 211 Net assets acquired 328 Less: cash consideration 111 Gain on acquisition (1) $ 217 (1) Gain on acquisition of $217 million represents the excess of the fair value of the net assets acquired compared with the total purchase consideration. The following provides a summary of the net assets acquired relating to the acquisition: Property, plant and equipment $ 3,325 Exploration and evaluation assets 91 Inventory, prepaids and other long-term assets 195 Accrued liabilities (21) Asset retirement obligations (178) Net assets acquired $ 3,412 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of leases [Abstract] | |
Schedule of Lease Assets | Product transportation and storage Field equipment and power Offshore vessels and equipment Office leases and other Total At January 1, 2019 (1) $ 823 $ 332 $ 252 $ 132 $ 1,539 Additions 452 43 12 20 527 Depreciation (106) (54) (72) (27) (259) Derecognitions — (6) — — (6) Foreign exchange adjustments and other (3) 2 (10) (1) (12) At December 31, 2019 $ 1,166 $ 317 $ 182 $ 124 $ 1,789 Additions (2) 17 121 7 3 148 Depreciation (124) (53) (51) (26) (254) Derecognitions (20) (5) (10) — (35) Foreign exchange adjustments and other (1) (1) — (1) (3) At December 31, 2020 $ 1,038 $ 379 $ 128 $ 100 $ 1,645 (1) The Company adopted IFRS 16 "Leases" on January 1, 2019 using the modified retrospective approach. (2) The acquisition of Painted Pony in 2020 included lease assets of $93 million (note 7). LEASE ASSETS, BY SEGMENT As at December 31, 2020 and 2019, the Company had the following lease assets by segment: 2020 2019 Exploration and Production North America $ 345 $ 300 North Sea 7 38 Offshore Africa 126 154 Oil Sands Mining and Upgrading 1,080 1,191 Head office 87 106 $ 1,645 $ 1,789 |
Schedule of Lease Liabilities | Lease liabilities at December 31, 2020 and 2019 were as follows: 2020 2019 Lease liabilities $ 1,690 $ 1,809 Less: current portion 189 233 $ 1,501 $ 1,576 |
Schedule of Leases Impact on Net Earnings and Cash Flow | Other amounts included in net earnings and cash flows during 2020 and 2019 are provided below: 2020 2019 Expenses relating to short-term leases (1) $ 409 $ 448 Interest expense on lease liabilities $ 67 $ 70 Variable lease payments not included in the measurement of lease liabilities $ 85 $ 118 Total cash outflows for leases (2) $ 983 $ 1,178 (1) During 2020, the Company capitalized $197 million (2019 - $305 million) of short-term leases as additions to property, plant and equipment. (2) Comprised of cash outflows relating to lease liabilities, short-term leases, and variable lease payments. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments [Abstract] | |
Summary of investments | As at December 31, 2020 and 2019, the Company had the following investments: 2020 2019 Investment in PrairieSky Royalty Ltd. $ 228 $ 345 Investment in Inter Pipeline Ltd. 77 145 $ 305 $ 490 The loss from the investment in PrairieSky was comprised as follows: 2020 2019 2018 Fair value loss from PrairieSky $ 117 $ 55 $ 326 Dividend income from PrairieSky (9) (17) (17) $ 108 $ 38 $ 309 The loss (gain) from the investment in Inter Pipeline was comprised as follows: 2020 2019 2018 Fair value loss (gain) from Inter Pipeline $ 68 $ (21) $ 43 Dividend income from Inter Pipeline (5) (11) (11) $ 63 $ (32) $ 32 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of other long-term assets | 2020 2019 North West Redwater Partnership $ 555 $ 652 Prepaid cost of service toll 162 130 Risk management (note 19) 136 290 Long-term inventory 121 121 Other (1) 190 84 1,164 1,277 Less: current portion 82 54 $ 1,082 $ 1,223 |
Summary of assets, liabilities, partners' equity and equity (income) loss related to joint venture | The assets, liabilities, partners’ equity, product sales and equity loss related to NWRP and the Company’s 50% interest at December 31, 2020 and 2019 were comprised as follows: 2020 (1) 2019 (2) NWRP Company NWRP Company Current assets $ 230 $ 115 $ 248 $ 124 Non-current assets $ 11,098 $ 5,549 $ 11,328 $ 5,664 Current liabilities $ 3,146 $ 1,573 $ 384 $ 192 Non-current liabilities $ 8,488 $ 4,244 $ 11,310 $ 5,655 Partners’ equity $ (306) $ (153) $ (118) $ (59) Revenue (3) $ 1,348 $ 674 $ 1,736 $ 868 Net loss $ 188 $ 94 $ 692 $ 346 (1) In 2020, included in the net loss is the impact of depreciation and amortization expense at 100% interest of $214 million (50% interest - $107 million) and interest and other financing expense at 100% interest of $420 million (50% interest - $210 million). (2) In 2019, included in the net loss is the impact of depreciation and amortization expense at 100% interest of $152 million (50% interest - $76 million) and interest and other financing expense at 100% interest of $398 million (50% interest - $199 million). (3) Included in NWRP's revenue for the period subsequent to COD in 2020, is $174 million paid by the Company for its 25% share of the refining toll. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments [Abstract] | |
Summary of long-term debt | 2020 2019 Canadian dollar denominated debt, unsecured Bank credit facilities $ 1,614 $ 1,688 Medium-term notes 2.05% debentures due June 1, 2020 — 900 2.89% debentures due August 14, 2020 — 1,000 3.31% debentures due February 11, 2022 1,000 1,000 1.45% debentures due November 16, 2023 500 — 3.55% debentures due June 3, 2024 500 500 3.42% debentures due December 1, 2026 600 600 2.50% debentures due January 17, 2028 300 — 4.85% debentures due May 30, 2047 300 300 4,814 5,988 US dollar denominated debt, unsecured Bank credit facilities (December 31, 2020 – US$3,953 million; 5,041 4,855 Commercial paper (December 31, 2020 – US$426 million; 544 329 US dollar debt securities 3.45% due November 15, 2021 (US$500 million) 638 648 2.95% due January 15, 2023 (US$1,000 million) 1,276 1,296 3.80% due April 15, 2024 (US$500 million) 638 648 3.90% due February 1, 2025 (US$600 million) 765 778 2.05% due July 15, 2025 (US$600 million) 765 — 3.85% due June 1, 2027 (US$1,250 million) 1,595 1,621 2.95% due July 15, 2030 (US$500 million) 638 — 7.20% due January 15, 2032 (US$400 million) 510 519 6.45% due June 30, 2033 (US$350 million) 446 454 5.85% due February 1, 2035 (US$350 million) 446 454 6.50% due February 15, 2037 (US$450 million) 574 583 6.25% due March 15, 2038 (US$1,100 million) 1,403 1,426 6.75% due February 1, 2039 (US$400 million) 510 519 4.95% due June 1, 2047 (US$750 million) 957 972 16,746 15,102 Long-term debt before transaction costs and original issue discounts, net 21,560 21,090 Less: original issue discounts, net (1) 18 17 transaction costs (1) (2) 89 91 21,453 20,982 Less: current portion of commercial paper 544 329 current portion of other long-term debt (1) (2) 799 2,062 $ 20,110 $ 18,591 (1) The Company has included unamortized original issue discounts and premiums, and directly attributable transaction costs in the carrying amount of the outstanding debt. (2) Transaction costs primarily represent underwriting commissions charged as a percentage of the related debt offerings, as well as legal, rating agency and other professional fees. |
Schedule of debt repayments | Scheduled debt repayments are as follows: Year Repayment 2021 $ 1,343 2022 $ 4,887 2023 $ 4,383 2024 $ 1,138 2025 $ 1,530 Thereafter $ 8,279 The maturity dates of the Company’s financial liabilities were as follows: Less than 1 year 1 to less than 2 years 2 to less than 5 years Thereafter Accounts payable $ 667 $ — $ — $ — Accrued liabilities $ 2,346 $ — $ — $ — Long-term debt (1) $ 1,343 $ 4,887 $ 7,051 $ 8,279 Other long-term liabilities (2) $ 345 $ 200 $ 435 $ 942 Interest and other financing expense (3) $ 776 $ 693 $ 1,619 $ 4,452 (1) Long-term debt represents principal repayments only and does not reflect interest, original issue discounts and premiums or transaction costs. (2) Lease payments included within other long-term liabilities reflect principal payments only and are as follows; less than one year, $189 million; one to less than two years, $162 million; two to less than five years, $397 million; and thereafter $942 million. (3) Includes interest and other financing expense on long-term debt and other long-term liabilities. Payments were estimated based upon applicable interest and foreign exchange rates at December 31, 2020. |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of other long-term liabilities | 2020 2019 Asset retirement obligations $ 5,861 $ 5,771 Lease liabilities (note 8) (1) 1,690 1,809 Share-based compensation 160 297 Risk management (note 19) 160 112 Deferred purchase consideration (2) 72 95 Other (3) 343 98 8,286 8,182 Less: current portion 722 819 $ 7,564 $ 7,363 (1) The acquisition of Painted Pony in 2020 included lease liabilities of $93 million (note 7). (2) Relates to the acquisition of the Joslyn oil sands project in 2018, payable in annual installments of $25 million over the next three years. |
Summary of asset retirement obligations | Reconciliations of the discounted asset retirement obligations were as follows: 2020 2019 2018 Balance – beginning of year $ 5,771 $ 3,886 $ 4,327 Liabilities incurred 5 15 19 Liabilities acquired, net 13 198 6 Liabilities settled (249) (296) (290) Asset retirement obligation accretion 205 190 186 Revision of cost and timing estimates (134) 412 (111) Change in discount rates 253 1,412 (334) Foreign exchange adjustments (3) (46) 83 Balance – end of year 5,861 5,771 3,886 Less: current portion 184 208 186 $ 5,677 $ 5,563 $ 3,700 Segmented Asset Retirement Obligations 2020 2019 Exploration and Production North America $ 2,899 $ 2,792 North Sea 787 816 Offshore Africa 174 161 Oil Sands Mining and Upgrading 1,999 2,000 Midstream and Refining 2 2 $ 5,861 $ 5,771 |
Summary of share-based compensation liability | The current portion of the liability represents the maximum amount of the liability payable within the next twelve month period if all vested stock options and PSUs are settled in cash. 2020 2019 2018 Balance – beginning of year $ 297 $ 124 $ 414 Share-based compensation (recovery) expense (82) 223 (146) Cash payment for stock options surrendered and PSUs vested (39) (2) (5) Transferred to common shares (21) (53) (120) Charged to (recovered from) Oil Sands Mining and Upgrading, net 5 5 (19) Balance – end of year 160 297 124 Less: current portion 119 227 92 $ 41 $ 70 $ 32 |
Disclosure of weighted average assumptions used | The fair value of stock options outstanding was estimated using the Black-Scholes valuation model with the following weighted average assumptions: 2020 2019 2018 Fair value $ 3.47 $ 7.88 $ 3.33 Share price $ 30.59 $ 42.00 $ 32.94 Expected volatility 39.8% 26.7% 27.4% Expected dividend yield 5.6% 3.6% 4.1% Risk free interest rate 0.3% 1.7% 1.9% Expected forfeiture rate 4.3% 4.3% 4.2% Expected stock option life (1) 4.3 years 4.4 years 4.4 years (1) At original time of grant. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Schedule of provision for income tax | The provision for income tax was as follows: (Recovery) expense 2020 2019 2018 Current corporate income tax – North America $ (245) $ 354 $ 312 Current corporate income tax – North Sea (4) 112 28 Current corporate income tax – Offshore Africa 17 44 54 Current PRT (1) – North Sea (31) (89) (29) Other taxes 6 13 9 Current income tax (257) 434 374 Deferred corporate income tax (181) (895) 540 Deferred PRT (1) – North Sea — 1 17 Deferred income tax (181) (894) 557 Income tax $ (438) $ (460) $ 931 (1) Petroleum Revenue Tax. |
Schedule of provision for income tax reconciliation | The provision for income tax is different from the amount computed by applying the combined statutory Canadian federal and provincial income tax rates to earnings before taxes. The reasons for the difference are as follows: 2020 2019 2018 Canadian statutory income tax rate 24.1% 26.5% 27.0% Income tax provision at statutory rate $ (211) $ 1,313 $ 951 Effect on income taxes of: UK PRT and other taxes (25) (76) (3) Impact of deductible UK PRT and other taxes on corporate income tax 11 32 3 Foreign and domestic tax rate differentials (52) (48) 6 Non-taxable portion of capital (gains) losses (10) (65) 142 Stock options exercised for common shares (25) 47 (41) Income tax rate and other legislative changes — (1,618) — Non-taxable gain on corporate acquisitions (52) — (119) Revisions arising from prior year tax filings (62) (41) (136) Change in unrecognized capital loss carryforward asset (10) (65) 142 Other (2) 61 (14) Income tax $ (438) $ (460) $ 931 |
Summary of major temporary differences, movements in deferred tax assets and liabilities, and net deferred income tax liability | The following table summarizes the temporary differences that give rise to the net deferred income tax liability: 2020 2019 Deferred income tax liabilities Property, plant and equipment and exploration and evaluation assets $ 11,922 $ 12,074 Lease assets 380 412 Unrealized risk management activities — 27 Investments 14 36 Investment in North West Redwater Partnership 767 593 Other 8 52 13,091 13,194 Deferred income tax assets Asset retirement obligations (1,495) (1,488) Lease liabilities (388) (416) Share-based compensation (12) (16) Loss carryforwards (1,032) (685) Unrealized foreign exchange loss on long-term debt (20) (49) Deferred PRT — (1) (2,947) (2,655) Net deferred income tax liability $ 10,144 $ 10,539 Movements in deferred tax assets and liabilities recognized in net earnings during the year were as follows: 2020 2019 2018 Property, plant and equipment and exploration and evaluation assets $ (158) $ (775) $ 281 Lease assets (11) 414 — Unrealized foreign exchange loss (gain) on long-term debt 29 55 (75) Unrealized risk management activities (8) (14) 18 Asset retirement obligations (13) (317) 175 Lease liabilities 6 (418) — Share-based compensation 4 (11) (5) Loss carryforwards (182) 170 (61) Investments (22) (10) (50) Investment in North West Redwater Partnership 174 179 162 Deferred PRT — 1 17 PRT deduction for corporate income tax — — (7) Other — (168) 102 $ (181) $ (894) $ 557 The following table summarizes the movements of the net deferred income tax liability during the year: 2020 2019 2018 Balance – beginning of year $ 10,539 $ 11,451 $ 10,975 Deferred income tax (recovery) expense (181) (894) 557 Deferred income tax expense (recovery) included in other comprehensive income — 8 (6) Foreign exchange adjustments (3) (26) 41 Business combinations (note 6,7) (211) — (116) Balance – end of year $ 10,144 $ 10,539 $ 11,451 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Summary of outstanding common stock | 2020 2019 Issued Common shares Number of shares (thousands) Amount Number of shares (thousands) Amount Balance – beginning of year 1,186,857 $ 9,533 1,201,886 $ 9,323 Issued upon exercise of stock options 3,979 108 10,871 360 Previously recognized liability on stock options exercised for common shares — 21 — 53 Purchase of common shares under Normal Course Issuer Bid (6,970) (56) (25,900) (203) Balance – end of year 1,183,866 $ 9,606 1,186,857 $ 9,533 |
Summary of stock option activity | The following table summarizes information relating to stock options outstanding at December 31, 2020 and 2019: 2020 2019 Stock options ( thousands) Weighted average exercise price Stock options (thousands) Weighted Outstanding – beginning of year 47,646 $ 38.04 46,685 $ 37.92 Granted 12,032 $ 32.89 16,314 $ 34.84 Exercised for common shares (3,979) $ 27.24 (10,871) $ 33.16 Surrendered for cash settlement (757) $ 29.34 (1,003) $ 34.52 Forfeited (6,286) $ 39.65 (3,479) $ 37.65 Outstanding – end of year 48,656 $ 37.53 47,646 $ 38.04 Exercisable – end of year 17,970 $ 39.59 17,057 $ 38.74 |
Summary of range of exercise prices of stock options outstanding | The range of exercise prices of stock options outstanding and exercisable at December 31, 2020 was as follows: Stock options outstanding Stock options exercisable Range of exercise prices Stock options outstanding (thousands) Weighted average remaining term (years) Weighted average exercise price Stock options exercisable (thousands) Weighted average exercise price $20.76 - $24.99 3,829 3.86 $ 21.12 944 $ 21.64 $25.00 - $29.99 1,975 1.81 $ 28.48 1,362 $ 28.85 $30.00 - $34.99 4,177 4.23 $ 32.37 378 $ 32.40 $35.00 - $39.99 22,495 3.44 $ 37.49 4,721 $ 37.42 $40.00 - $44.99 12,935 1.53 $ 43.57 8,884 $ 43.54 $45.00 - $46.74 3,245 2.40 $ 45.21 1,681 $ 45.18 48,656 2.90 $ 37.53 17,970 $ 39.59 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Analysis Of Other Comprehensive Income By Item [Abstract] | |
Components of Accumulated Other Comprehensive Income, Net of Taxes | The components of accumulated other comprehensive income, net of taxes, were as follows: 2020 2019 Derivative financial instruments designated as cash flow hedges $ 69 $ 71 Foreign currency translation adjustment (61) (37) $ 8 $ 34 |
Capital Disclosures (Tables)
Capital Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Disclosure of detailed information about capital | 2020 2019 Long-term debt, net (1) $ 21,269 $ 20,843 Total shareholders’ equity $ 32,380 $ 34,991 Debt to book capitalization 40% 37% (1) Includes the current portion of long-term debt, net of cash and cash equivalents. |
Net Earnings Per Common Share (
Net Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
Net earnings (loss) per common share | 2020 2019 2018 Weighted average common shares outstanding – basic (thousands of shares) 1,181,768 1,190,977 1,218,798 Effect of dilutive stock options (thousands of shares) — 2,129 4,960 Weighted average common shares outstanding – diluted (thousands of shares) 1,181,768 1,193,106 1,223,758 Net earnings (loss) $ (435) $ 5,416 $ 2,591 Net earnings (loss) per common share – basic $ (0.37) $ 4.55 $ 2.13 – diluted $ (0.37) $ 4.54 $ 2.12 |
Interest and Other Financing _2
Interest and Other Financing Expense (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Borrowing costs [abstract] | |
Disclosure of interest and other financing expense | 2020 2019 2018 Interest and other financing expense: Long-term debt $ 785 $ 895 $ 867 Lease liabilities (1) 67 70 — Less: amounts capitalized on qualifying assets (24) (53) (69) Total interest and other financing expense 828 912 798 Total interest income (72) (76) (59) Net interest and other financing expense $ 756 $ 836 $ 739 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments [Abstract] | |
Schedule of financial assets | The carrying amounts of the Company’s financial instruments by category were as follows: 2020 Asset (liability) Financial assets at amortized cost Fair value through profit or loss Derivatives used for hedging Financial liabilities at amortized cost Total Accounts receivable $ 2,190 $ — $ — $ — $ 2,190 Investments — 305 — — 305 Other long-term assets 555 — 136 — 691 Accounts payable — — — (667) (667) Accrued liabilities — — — (2,346) (2,346) Other long-term liabilities (1) — (52) (108) (1,762) (1,922) Long-term debt (2) — — — (21,453) (21,453) $ 2,745 $ 253 $ 28 $ (26,228) $ (23,202) 2019 Asset (liability) Financial assets at amortized cost Fair value through profit or loss Derivatives used for hedging Financial liabilities at amortized cost Total Accounts receivable $ 2,465 $ — $ — $ — $ 2,465 Investments — 490 — — 490 Other long-term assets 652 — 290 — 942 Accounts payable — — — (816) (816) Accrued liabilities — — — (2,611) (2,611) Other long-term liabilities (1) — (21) (91) (1,904) (2,016) Long-term debt (2) — — — (20,982) (20,982) $ 3,117 $ 469 $ 199 $ (26,313) $ (22,528) (1) Includes $1,690 million of lease liabilities (December 31, 2019 – $1,809 million) and $72 million of deferred purchase consideration payable over the next three (2) Includes the current portion of long-term debt. 2020 Carrying amount Fair value Asset (liability) (1) (2) Level 1 Level 2 Level 3 (4) (5) Investments (3) $ 305 $ 305 $ — $ — Other long-term assets $ 691 $ — $ 136 $ 555 Other long-term liabilities $ (232) $ — $ (160) $ (72) Fixed rate long-term debt (6) (7) $ (14,254) $ (16,598) $ — $ — 2019 Carrying amount Fair value Asset (liability) (1) (2) Level 1 Level 2 Level 3 (4) (5) Investments (3) $ 490 $ 490 $ — $ — Other long-term assets $ 942 $ — $ 290 $ 652 Other long-term liabilities $ (207) $ — $ (112) $ (95) Fixed rate long-term debt (6) (7) $ (14,110) $ (15,938) $ — $ — (1) Excludes financial assets and liabilities where the carrying amount approximates fair value due to the short-term nature of the asset or liability (cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and purchase consideration payable). (2) There were no transfers between Level 1, 2 and 3 financial instruments. (3) The fair values of the investments are based on quoted market prices. (4) The fair value of the deferred purchase consideration included in other long-term liabilities is based on the present value of future cash payments. (5) The fair value of NWRP subordinated debt is based on the present value of future cash receipts. (6) The fair value of fixed rate long-term debt has been determined based on quoted market prices. (7) Includes the current portion of fixed rate long-term debt. |
Schedule of financial liabilities | The carrying amounts of the Company’s financial instruments by category were as follows: 2020 Asset (liability) Financial assets at amortized cost Fair value through profit or loss Derivatives used for hedging Financial liabilities at amortized cost Total Accounts receivable $ 2,190 $ — $ — $ — $ 2,190 Investments — 305 — — 305 Other long-term assets 555 — 136 — 691 Accounts payable — — — (667) (667) Accrued liabilities — — — (2,346) (2,346) Other long-term liabilities (1) — (52) (108) (1,762) (1,922) Long-term debt (2) — — — (21,453) (21,453) $ 2,745 $ 253 $ 28 $ (26,228) $ (23,202) 2019 Asset (liability) Financial assets at amortized cost Fair value through profit or loss Derivatives used for hedging Financial liabilities at amortized cost Total Accounts receivable $ 2,465 $ — $ — $ — $ 2,465 Investments — 490 — — 490 Other long-term assets 652 — 290 — 942 Accounts payable — — — (816) (816) Accrued liabilities — — — (2,611) (2,611) Other long-term liabilities (1) — (21) (91) (1,904) (2,016) Long-term debt (2) — — — (20,982) (20,982) $ 3,117 $ 469 $ 199 $ (26,313) $ (22,528) (1) Includes $1,690 million of lease liabilities (December 31, 2019 – $1,809 million) and $72 million of deferred purchase consideration payable over the next three (2) Includes the current portion of long-term debt. 2020 Carrying amount Fair value Asset (liability) (1) (2) Level 1 Level 2 Level 3 (4) (5) Investments (3) $ 305 $ 305 $ — $ — Other long-term assets $ 691 $ — $ 136 $ 555 Other long-term liabilities $ (232) $ — $ (160) $ (72) Fixed rate long-term debt (6) (7) $ (14,254) $ (16,598) $ — $ — 2019 Carrying amount Fair value Asset (liability) (1) (2) Level 1 Level 2 Level 3 (4) (5) Investments (3) $ 490 $ 490 $ — $ — Other long-term assets $ 942 $ — $ 290 $ 652 Other long-term liabilities $ (207) $ — $ (112) $ (95) Fixed rate long-term debt (6) (7) $ (14,110) $ (15,938) $ — $ — (1) Excludes financial assets and liabilities where the carrying amount approximates fair value due to the short-term nature of the asset or liability (cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and purchase consideration payable). (2) There were no transfers between Level 1, 2 and 3 financial instruments. (3) The fair values of the investments are based on quoted market prices. (4) The fair value of the deferred purchase consideration included in other long-term liabilities is based on the present value of future cash payments. (5) The fair value of NWRP subordinated debt is based on the present value of future cash receipts. (6) The fair value of fixed rate long-term debt has been determined based on quoted market prices. (7) Includes the current portion of fixed rate long-term debt. |
Schedule of information about financial instruments | The following provides a summary of the carrying amounts of derivative financial instruments held and a reconciliation to the Company’s consolidated balance sheets. Asset (liability) 2020 2019 Derivatives held for trading Natural gas fixed price swaps $ (5) $ (3) Natural gas basis swaps (40) (8) Foreign currency forward contracts (7) (10) Cash flow hedges Foreign currency forward contracts (108) (91) Cross currency swaps 136 290 $ (24) $ 178 Included within: Current portion of other long-term assets $ 5 $ 8 Current portion of other long-term liabilities (131) (112) Other long-term assets 131 282 Other long-term liabilities (29) — $ (24) $ 178 The changes in estimated fair values of derivative financial instruments included in the risk management asset (liability) were recognized in the financial statements as follows: Asset (liability) 2020 2019 Balance – beginning of year $ 178 $ 356 Net change in fair value of outstanding derivative financial instruments recognized in: Risk management activities (1) (32) (13) Foreign exchange (168) (231) Other comprehensive income (loss) (2) 66 Balance – end of year (24) 178 Less: current portion (126) (104) $ 102 $ 282 Net (gain) loss from risk management activities for the years ended December 31 were as follows: 2020 2019 2018 Net realized risk management loss (gain) $ 32 $ 64 $ (99) Net unrealized risk management (gain) loss (39) 13 (35) $ (7) $ 77 $ (134) |
Schedule of derivative financial instruments outstanding to manage commodity price risk | At December 31, 2020, the Company had the following derivative financial instruments outstanding. All of these instruments were assumed in the acquisition of Painted Pony in 2020: Remaining term Weighted average volume Weighted average price Index Natural Gas Fixed price swap Jan 2021 - Dec 2021 37,337 GJ/d $2.03/GJ AECO Jan 2021 - Dec 2021 31,178 MMBtu/d US$2.46/MMBtu DAWN Jan 2021 - Dec 2021 20,808 MMBtu/d US$2.54/MMBtu NYMEX Jan 2021 - Dec 2021 17,466 MMBtu/d US$2.70/MMBtu SUMAS Differential swap Jan 2021 - Aug 2021 20,000 GJ/d $0.29/GJ AECO-STN 2 Basis swap Jan 2021 - Dec 2023 53,333 MMBtu/d US$1.23/MMBtu AECO Jan 2024 - Dec 2025 20,000 MMBtu/d US$0.97/MMBtu AECO Jan 2021 - Dec 2021 20,000 MMBtu/d US$0.09/MMBtu DAWN |
Schedule of derivative financial instruments | At December 31, 2020 the Company had the following cross currency swap contracts outstanding: Remaining term Amount Exchange rate (US$/C$) Interest rate (US$) Interest rate (C$) Cross currency Swaps Jan 2021 – Mar 2038 US$550 1.170 6.25 % 5.76 % |
Disclosure of financial instrument sensitivities | The following table summarizes the annualized sensitivities of the Company’s 2020 net earnings (loss) and other comprehensive loss to changes in the fair value of financial instruments outstanding as at December 31, 2020, resulting from changes in the specified variable, with all other variables held constant. These sensitivities are prepared on a different basis than those sensitivities disclosed in the Company’s other continuous disclosure documents, are limited to the impact of changes in a specified variable applied to financial instruments only and do not represent the impact of a change in the variable on the operating results of the Company taken as a whole. Further, these sensitivities are theoretical, as changes in one variable may contribute to changes in another variable, which may magnify or counteract the sensitivities. In addition, changes in fair value generally cannot be extrapolated because the relationship of a change in an assumption to the change in fair value may not be linear. 2020 2019 Increase (decrease) to Increase (decrease) to other comprehensive income Increase (decrease) to net earnings Increase (decrease) to other comprehensive income Commodity price risk Increase AECO fixed price swap $0.10/Mcf $ (1) $ — $ (1) $ — Decrease AECO fixed price swap $0.10/Mcf $ 1 $ — $ 1 $ — Increase natural gas fixed price swap US$0.10 MMBtu $ (2) $ — $ — $ — Decrease natural gas fixed price swap US$0.10 MMBtu $ 2 $ — $ — $ — Increase natural gas basis swap US$0.10 MMBtu $ (8) $ — $ (1) $ — Decrease natural gas basis swap US$0.10 MMBtu $ 8 $ — $ 1 $ — Interest rate risk Increase interest rate 1% $ (53) $ (17) $ (48) $ (21) Decrease interest rate 1% $ 53 $ 20 $ 48 $ 24 Foreign currency exchange rate risk Weakening of the Canadian dollar by US$0.01 $ (126) $ — $ (103) $ — Strengthening of the Canadian dollar by US$0.01 $ 123 $ — $ 100 $ — |
Schedule of maturity dates for financial liabilities | Scheduled debt repayments are as follows: Year Repayment 2021 $ 1,343 2022 $ 4,887 2023 $ 4,383 2024 $ 1,138 2025 $ 1,530 Thereafter $ 8,279 The maturity dates of the Company’s financial liabilities were as follows: Less than 1 year 1 to less than 2 years 2 to less than 5 years Thereafter Accounts payable $ 667 $ — $ — $ — Accrued liabilities $ 2,346 $ — $ — $ — Long-term debt (1) $ 1,343 $ 4,887 $ 7,051 $ 8,279 Other long-term liabilities (2) $ 345 $ 200 $ 435 $ 942 Interest and other financing expense (3) $ 776 $ 693 $ 1,619 $ 4,452 (1) Long-term debt represents principal repayments only and does not reflect interest, original issue discounts and premiums or transaction costs. (2) Lease payments included within other long-term liabilities reflect principal payments only and are as follows; less than one year, $189 million; one to less than two years, $162 million; two to less than five years, $397 million; and thereafter $942 million. (3) Includes interest and other financing expense on long-term debt and other long-term liabilities. Payments were estimated based upon applicable interest and foreign exchange rates at December 31, 2020. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of future payments | The following table summarizes the Company’s commitments as at December 31, 2020: 2021 2022 2023 2024 2025 Thereafter Product transportation and processing (1)(2) $ 870 $ 817 $ 858 $ 841 $ 809 $ 10,370 North West Redwater Partnership service toll (3) $ 163 $ 160 $ 160 $ 156 $ 150 $ 2,694 Offshore vessels and equipment $ 64 $ 9 $ — $ — $ — $ — Field equipment and power $ 28 $ 21 $ 21 $ 21 $ 21 $ 246 Other $ 25 $ 21 $ 21 $ 22 $ 22 $ 16 (1) Includes commitments pertaining to a 20-year product transportation agreement on the Trans Mountain Pipeline Expansion. In addition, the Company has entered into certain product transportation agreements on pipelines that have not yet received regulatory and other approvals. (2) The acquisition of Painted Pony in 2020 included approximately $2,400 million of product transportation and processing commitments (note 7). (3) Pursuant to the processing agreements, on June 1, 2018 the Company began paying its 25% pro rata share of the debt component of the monthly cost of service tolls. Included in the cost of service tolls is $1,169 million of interest payable over the 30-year tolling period (note 10). |
Supplemental Disclosure of Ca_2
Supplemental Disclosure of Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement Of Cash Flows, Additional Disclosures [Abstract] | |
Schedule of cash flow supplemental disclosures | 2020 2019 2018 Changes in non-cash working capital: Accounts receivable $ 284 $ (1,310) $ 1,233 Current income tax assets (liabilities) (295) (164) 471 Inventory 98 (194) (74) Prepaids and other (56) 2 (3) Other long-term assets (117) 117 — Accounts payable (147) 39 (7) Accrued liabilities (254) 265 (268) Other long-term liabilities (1) (62) (23) (351) Net changes in non-cash working capital $ (549) $ (1,268) $ 1,001 Relating to: Operating activities $ (166) $ (1,033) $ 1,346 Investing activities (383) (235) (345) $ (549) $ (1,268) $ 1,001 2020 2019 2018 Expenditures on exploration and evaluation assets $ 36 $ 73 $ 282 Net proceeds on sale of exploration and evaluation assets (31) — (16) Net expenditures on exploration and evaluation assets $ 5 $ 73 $ 266 (1) Included in Other long-term liabilities at December 31, 2020 is $72 million of deferred purchase consideration payable over the next three years (December 31, 2019 – $95 million; 2018 - $118 million). |
Reconciliation of liabilities arising from financing activities | The following table summarizes movements in the Company's liabilities arising from financing activities for the years' ended December 31, 2020 and 2019: Long-term debt Cash flow hedges on US dollar debt securities Lease liabilities Liabilities from financing activities At January 1, 2019 (1) $ 20,623 $ (361) $ 1,539 $ 21,801 Changes from financing cash flows: Issue of long-term debt, net (2) 1,025 — — 1,025 Payment of lease liabilities — — (237) (237) Non-cash changes: Lease additions — — 527 527 Changes in foreign exchange and fair value (3) (666) 162 (20) (524) At December 31, 2019 20,982 (199) 1,809 22,592 Changes from financing cash flows: Issue of long-term debt, net (2) 719 — — 719 Repayment of Painted Pony long-term debt (397) — — (397) Proceeds on settlement of cross currency swaps — 166 — 166 Payment of lease liabilities — — (225) (225) Non-cash changes: Assumption of Painted Pony long-term debt 397 — — 397 Lease additions — — 148 148 Changes in foreign exchange and fair value (3) (248) 5 (42) (285) At December 31, 2020 $ 21,453 $ (28) $ 1,690 $ 23,115 (1) The Company adopted IFRS 16 "Leases" on January 1, 2019 using the modified retrospective approach. (2) Includes original issue discounts and premiums, and directly attributable transaction costs. (3) Includes foreign exchange (gain) loss, changes in the fair value of cash flow hedges on US dollar debt securities, the amortization of original issue discounts and premiums and directly attributable transaction costs, and derecognition of lease liabilities. |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operating Segments [Abstract] | |
Disclosure of operating segments | North America North Sea Offshore Africa (millions of Canadian dollars) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Segmented product sales Crude oil and NGLs (1) $ 7,480 $ 9,679 $ 7,254 $ 417 $ 860 $ 753 $ 318 $ 632 $ 628 Natural gas 1,242 1,150 1,256 12 57 140 42 67 70 Other income and revenue (2) 41 6 — 3 5 — 18 8 — Total segmented product sales 8,763 10,835 8,510 432 922 893 378 707 698 Less: royalties (503) (998) (723) (1) (2) (2) (16) (42) (51) Segmented revenue 8,260 9,837 7,787 431 920 891 362 665 647 Segmented expenses Production 2,510 2,425 2,405 321 391 405 103 109 208 Transportation, blending and feedstock (1) (3) 3,393 2,935 2,587 15 19 22 1 2 2 Depletion, depreciation and amortization 3,780 3,326 3,132 277 308 257 190 242 201 Asset retirement obligation accretion 97 95 87 30 28 29 6 6 9 Realized risk management (commodity derivatives) (20) 49 (10) — — — — — — Gain on acquisition, disposition and revaluation (217) — (277) — — (139) — — (36) Equity loss from investments — — — — — — — — — Total segmented expenses 9,543 8,830 7,924 643 746 574 300 359 384 Segmented earnings (loss) before the following $ (1,283) $ 1,007 $ (137) $ (212) $ 174 $ 317 $ 62 $ 306 $ 263 Non–segmented expenses Administration Share-based compensation Interest and other financing expense Risk management activities (other) Foreign exchange (gain) loss Loss from investments Total non–segmented expenses Earnings (loss) before taxes Current income tax (recovery) expense Deferred income tax (recovery) expense Net earnings (loss) (1) Includes blending and feedstock costs associated with the processing of third party bitumen and other purchased feedstock in the Oil Sands Mining and Upgrading segment. (2) Includes the sale of diesel and other refined products and other income, including government grants and recoveries associated with the joint operations partners' share of the costs of lease contracts. (3) Includes a provision of $143 million relating to the Keystone XL pipeline project in the North America segment in 2020. Oil Sands Mining and Upgrading Midstream and Refining Inter–segment elimination and Other Total 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 $ 7,389 $ 11,340 $ 11,521 $ 83 $ 88 $ 102 $ (108) $ 351 $ 410 $ 15,579 $ 22,950 $ 20,668 — — — — — — 182 145 148 1,478 1,419 1,614 139 6 — 202 — — 31 — — 434 25 — 7,528 11,346 11,521 285 88 102 105 496 558 17,491 24,394 22,282 (78) (481) (479) — — — — — — (598) (1,523) (1,255) 7,450 10,865 11,042 285 88 102 105 496 558 16,893 22,871 21,027 3,114 3,276 3,367 184 20 21 48 56 58 6,280 6,277 6,464 881 1,306 1,087 181 — — 27 437 491 4,498 4,699 4,189 1,784 1,656 1,557 15 14 14 — — — 6,046 5,546 5,161 72 61 61 — — — — — — 205 190 186 — — — — — — — — — (20) 49 (10) — — — — — — — — — (217) — (452) — — — — 287 5 — — — — 287 5 5,851 6,299 6,072 380 321 40 75 493 549 16,792 17,048 15,543 $ 1,599 $ 4,566 $ 4,970 $ (95) $ (233) $ 62 $ 30 $ 3 $ 9 $ 101 $ 5,823 $ 5,484 391 344 325 (82) 223 (146) 756 836 739 13 28 (124) (275) (570) 827 171 6 341 974 867 1,962 (873) 4,956 3,522 (257) 434 374 (181) (894) 557 $ (435) $ 5,416 $ 2,591 (1) Includes blending and feedstock costs associated with the processing of third party bitumen and other purchased feedstock in the Oil Sands Mining and Upgrading segment. (2) Includes the sale of diesel and other refined products and other income, including government grants and recoveries associated with the joint operations partners' share of the costs of lease contracts. (3) Includes a provision of $143 million relating to the Keystone XL pipeline project in the North America segment in 2020. 2020 2019 Net expenditures Non-cash and fair value changes (2) Capitalized costs Net expenditures Non-cash and fair value changes (2) Capitalized costs Exploration and evaluation assets Exploration and Production North America (3) $ (7) $ (150) $ (157) $ 129 $ (219) $ (90) Offshore Africa 12 3 15 35 (2) 33 5 (147) (142) 164 (221) (57) Property, plant and equipment Exploration and Production North America (3)(4) $ 999 $ 371 $ 1,370 $ 4,702 $ 918 $ 5,620 North Sea 122 (21) 101 196 153 349 Offshore Africa (5) 87 7 94 194 (1,476) (1,282) 1,208 357 1,565 5,092 (405) 4,687 Oil Sands Mining and Upgrading (6) 1,323 (629) 694 1,525 344 1,869 Midstream and Refining 5 1 6 10 — 10 Head office 19 — 19 34 (3) 31 $ 2,555 $ (271) $ 2,284 $ 6,661 $ (64) $ 6,597 (1) This table provides a reconciliation of capitalized costs, reported in note 6 and note 7, to net expenditures reported in the investing activities section of the statements of cash flows. The reconciliation excludes the impact of foreign exchange adjustments. (2) Derecognitions, asset retirement obligations, transfer of exploration and evaluation assets, and other fair value adjustments. (3) Includes cash consideration paid of $91 million for exploration and evaluation assets and $3,126 million for property, plant and equipment acquired from Devon in 2019. (4) Includes cash consideration paid of $111 million for the acquisition of Painted Pony in 2020. (5) Includes a derecognition of property, plant and equipment of $1,515 million following the FPSO demobilization at the Olowi field, Gabon in 2019. (6) Net expenditures include capitalized interest and share-based compensation. 2020 2019 Exploration and Production North America $ 29,094 $ 30,963 North Sea 1,624 1,948 Offshore Africa 1,407 1,529 Other 81 30 Oil Sands Mining and Upgrading 41,567 42,006 Midstream and Refining 1,301 1,418 Head office 202 227 $ 75,276 $ 78,121 |
Remuneration of Directors and_2
Remuneration of Directors and Senior Management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party [Abstract] | |
Remuneration of non-management directors and senior management | Remuneration of Non-Management Directors 2020 2019 2018 Fees earned $ 2 $ 2 $ 2 Remuneration of Senior Management (1) 2020 2019 2018 Salary $ 2 $ 2 $ 2 Common stock option based awards 9 8 8 Annual incentive plans 4 6 4 Long-term incentive plans 14 20 15 $ 29 $ 36 $ 29 (1) Senior management identified above are consistent with the disclosure on Named Executive Officers provided in the Company’s Information Circular to shareholders for the respective years. |
Supplementary Oil And Gas Infor
Supplementary Oil And Gas Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Extractive Industries [Abstract] | |
Schedule of Twelve Month Average Benchmark Prices | The Company has used the following 12-month average benchmark prices to determine its 2020 and 2019 reserves for SEC requirements. Crude Oil and NGLs Natural Gas WTI Cushing Oklahoma WCS Canadian Light Sweet Cromer LSB North Sea Brent Edmonton C5+ Henry Hub Louisiana AECO BC Westcoast Station 2 (US$/bbl) (C$/bbl) (C$/bbl) (C$/bbl) (US$/bbl) (C$/bbl) (US$/MMBtu) (C$/MMBtu) (C$/MMBtu) 2020: 39.77 34.84 45.02 45.55 43.43 50.41 2.16 2.17 2.10 2019: 55.73 57.29 66.77 66.85 62.54 68.71 2.54 2.02 1.13 |
Schedule of Crude Oil, NGL's and Natural Gas Net Proved Reserve Quantities | The following tables summarize the Company's proved and proved developed crude oil and natural gas reserves, net of royalties, as at December 31, 2020, 2019, 2018 and 2017: North America Crude Oil and NGLs (MMbbl) (1) Synthetic Crude Oil Bitumen (2) Crude Oil & NGLs North America Total North Sea Offshore Africa Total Net Proved Reserves Reserves, December 31, 2017 4,956 1,365 594 6,915 107 69 7,091 Extensions and discoveries 744 151 17 912 — — 912 Improved recovery — 10 50 60 1 3 64 Purchases of reserves in place — 2 7 9 7 — 16 Sales of reserves in place — (4) — (4) — — (4) Production (148) (64) (47) (259) (9) (6) (274) Economic revisions due to prices — (45) (18) (63) 11 1 (51) Revisions of prior estimates 109 54 1 164 (3) 4 165 Reserves, December 31, 2018 5,661 1,469 604 7,734 114 71 7,919 Extensions and discoveries 334 18 12 364 — — 364 Improved recovery — 169 12 181 — — 181 Purchases of reserves in place — 666 2 668 — — 668 Sales of reserves in place — — — — — — — Production (137) (81) (49) (267) (10) (7) (285) Economic revisions due to prices (3) (288) 3 — (285) (1) 1 (285) Revisions of prior estimates (17) (27) 17 (28) 3 6 (19) Reserves, December 31, 2019 5,554 2,216 598 8,368 105 70 8,544 Extensions and discoveries 708 8 10 726 — — 726 Improved recovery — 49 9 58 — — 58 Purchases of reserves in place — — 28 28 — — 28 Sales of reserves in place — — — — — — — Production (151) (109) (45) (305) (8) (6) (320) Economic revisions due to prices (4) 701 207 (94) 814 (12) 3 805 Revisions of prior estimates 36 41 20 97 3 4 103 Reserves, December 31, 2020 6,847 2,413 525 9,785 87 71 9,943 Net proved developed reserves December 31, 2017 4,967 410 399 5,776 28 21 5,825 December 31, 2018 5,661 461 378 6,500 37 34 6,571 December 31, 2019 5,452 661 354 6,466 38 39 6,543 December 31, 2020 6,770 628 285 7,682 32 37 7,751 (1) Information in the reserves data tables may not add due to rounding. (2) Bitumen as defined by the SEC, "is petroleum in a solid or semi-solid state in natural deposits with a viscosity greater than 10,000 centipoise measured at original temperature in the deposit and atmospheric pressure, on a gas free basis." Under this definition, all the Company's thermal and primary heavy crude oil reserves have been classified as bitumen. (3) Reflects the impact of increased royalties at Oil Sands Mining and Upgrading (SCO) due to higher bitumen pricing resulting in higher royalties and lower net reserves. (4) Reflects the impact of decreased royalties at Oil Sands Mining and Upgrading (SCO) and thermal Bitumen due to lower bitumen pricing resulting in lower royalties and higher net reserves. Natural Gas (Bcf) (1) North America North Sea Offshore Africa Total Net Proved Reserves Reserves, December 31, 2017 5,199 25 16 5,240 Extensions and discoveries 90 — — 90 Improved recovery 414 — — 414 Purchases of reserves in place 67 — — 67 Sales of reserves in place (3) — — (3) Production (523) (11) (8) (542) Economic revisions due to prices (746) — (2) (748) Revisions of prior estimates (192) 13 15 (164) Reserves, December 31, 2018 4,306 27 21 4,354 Extensions and discoveries 106 — — 106 Improved recovery 202 — — 202 Purchases of reserves in place 34 — — 34 Sales of reserves in place — — — — Production (511) (9) (8) (528) Economic revisions due to prices 246 — 2 248 Revisions of prior estimates 346 (2) 23 367 Reserves, December 31, 2019 4,728 16 38 4,782 Extensions and discoveries 173 — — 173 Improved recovery 159 — — 159 Purchases of reserves in place 2,614 — — 2,615 Sales of reserves in place (4) — — (4) Production (515) (4) (5) (524) Economic revisions due to prices 97 — 4 100 Revisions of prior estimates 402 — (3) 399 Reserves, December 31, 2020 7,655 12 34 7,701 Net proved developed reserves December 31, 2017 3,081 22 9 3,112 December 31, 2018 2,382 23 12 2,417 December 31, 2019 2,342 11 28 2,381 December 31, 2020 3,116 6 22 3,144 (1) Information in the reserves data tables may not add due to rounding. |
Schedule of Capitalized Costs Relating To Oil And Gas Producing Activities Disclosure | Capitalized Costs Related to Crude Oil and Natural Gas Activities 2020 (millions of Canadian dollars) North America North Sea Offshore Africa Total Proved properties $ 119,707 $ 7,283 $ 3,963 $ 130,953 Unproved properties 2,353 — 83 2,436 122,060 7,283 4,046 133,389 Less: accumulated depletion and depreciation (56,930) (5,853) (2,822) (65,605) Net capitalized costs $ 65,130 $ 1,430 $ 1,224 $ 67,784 2019 (millions of Canadian dollars) North America North Sea Offshore Africa Total Proved properties $ 117,643 $ 7,296 $ 3,933 $ 128,872 Unproved properties 2,510 — 69 2,579 120,153 7,296 4,002 131,451 Less: accumulated depletion and depreciation (52,824) (5,712) (2,712) (61,248) Net capitalized costs $ 67,329 $ 1,584 $ 1,290 $ 70,203 2018 (millions of Canadian dollars) North America North Sea Offshore Africa Total Proved properties $ 110,154 $ 7,321 $ 5,471 $ 122,946 Unproved properties 2,600 — 37 2,637 112,754 7,321 5,508 125,583 Less: accumulated depletion and depreciation (48,862) (5,735) (4,203) (58,800) Net capitalized costs $ 63,892 $ 1,586 $ 1,305 $ 66,783 |
Disclosure of Detailed Information About Costs Incurred In Crude Oil And Natural Gas Activities | Costs Incurred in Crude Oil and Natural Gas Activities 2020 (millions of Canadian dollars) North America North Sea Offshore Africa Total Property acquisitions Proved $ 750 $ — $ — $ 750 Unproved 15 — — 15 Exploration 22 — 15 37 Development 2,338 104 94 2,536 Costs incurred $ 3,125 $ 104 $ 109 $ 3,338 2019 (millions of Canadian dollars) North America North Sea Offshore Africa Total Property acquisitions Proved $ 3,405 $ — $ — $ 3,405 Unproved 91 — — 91 Exploration 38 — 33 71 Development 4,687 349 233 5,269 Costs incurred $ 8,221 $ 349 $ 266 $ 8,836 2018 (millions of Canadian dollars) North America North Sea Offshore Africa Total Property acquisitions Proved $ 214 $ 127 $ — $ 341 Unproved 340 — (89) 251 Exploration 116 — 35 151 Development 3,245 110 212 3,567 Costs incurred $ 3,915 $ 237 $ 158 $ 4,310 |
Disclosure Of Detailed Information About Results Of Operations From Crude Oil And Natural Gas Activities | Results of Operations from Crude Oil and Natural Gas Producing Activities The Company's results of operations from crude oil and natural gas producing activities for the years ended December 31, 2020, 2019 and 2018 are summarized in the following tables: 2020 (millions of Canadian dollars) North America North Sea Offshore Africa Total Crude oil and natural gas revenue, net of royalties, blending and feedstock costs $ 12,520 $ 432 $ 354 $ 13,306 Production (5,624) (321) (103) (6,048) Transportation (1,258) (15) (1) (1,274) Depletion, depreciation and amortization (5,564) (277) (190) (6,031) Asset retirement obligation accretion (169) (30) (6) (205) Petroleum revenue tax — 31 — 31 Income tax 23 72 (13) 82 Results of operations $ (72) $ (108) $ 41 $ (139) 2019 (millions of Canadian dollars) North America North Sea Offshore Africa Total Crude oil and natural gas revenue, net of royalties, blending and feedstock costs $ 17,348 $ 920 $ 676 $ 18,944 Production (5,701) (391) (109) (6,201) Transportation (968) (19) (2) (989) Depletion, depreciation and amortization (4,982) (308) (242) (5,532) Asset retirement obligation accretion (156) (28) (6) (190) Petroleum revenue tax — 88 — 88 Income tax (1,468) (105) (79) (1,652) Results of operations $ 4,073 $ 157 $ 238 $ 4,468 2018 (millions of Canadian dollars) North America North Sea Offshore Africa Total Crude oil and natural gas revenue, net of royalties, blending and feedstock costs $ 16,065 $ 891 $ 647 $ 17,603 Production (5,772) (405) (208) (6,385) Transportation (929) (22) (2) (953) Depletion, depreciation and amortization (4,689) (257) (201) (5,147) Asset retirement obligation accretion (148) (29) (9) (186) Petroleum revenue tax — 12 — 12 Income tax (1,223) (76) (51) (1,350) Results of operations $ 3,304 $ 114 $ 176 $ 3,594 |
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure | The following tables summarize the Company's future net cash flows relating to proved crude oil and natural gas reserves based on the standardized measure as prescribed in FASB Topic 932 - "Extractive Activities - Oil and Gas": 2020 (millions of Canadian dollars) North America North Sea Offshore Africa Total Future cash inflows $ 404,193 $ 5,873 $ 4,172 $ 414,238 Future production costs (203,599) (3,259) (1,746) (208,604) Future development costs and asset retirement obligations (72,935) (2,130) (1,032) (76,097) Future income taxes (27,178) (141) (217) (27,536) Future net cash flows 100,481 343 1,177 102,001 10% annual discount for timing of future cash flows (1) (74,395) 278 (373) (74,490) Standardized measure of future net cash flows $ 26,086 $ 621 $ 804 $ 27,511 (1) Includes the impact of abandonment expenditures timing. 2019 (millions of Canadian dollars) North America North Sea Offshore Africa Total Future cash inflows $ 515,864 $ 10,030 $ 5,858 $ 531,752 Future production costs (194,076) (4,893) (2,081) (201,050) Future development costs and asset retirement obligations (70,879) (2,648) (1,076) (74,603) Future income taxes (53,759) (936) (547) (55,242) Future net cash flows 197,150 1,553 2,154 200,857 10% annual discount for timing of future cash flows (136,616) (1) (715) (137,332) Standardized measure of future net cash flows $ 60,534 $ 1,552 $ 1,439 $ 63,525 2018 (millions of Canadian dollars) North America North Sea Offshore Africa Total Future cash inflows $ 500,557 $ 12,002 $ 6,447 $ 519,006 Future production costs (193,387) (5,148) (2,284) (200,819) Future development costs and asset retirement obligations (63,202) (2,909) (1,099) (67,210) Future income taxes (60,526) (1,484) (626) (62,636) Future net cash flows 183,442 2,461 2,438 188,341 10% annual discount for timing of future cash flows (126,699) (545) (771) (128,015) Standardized measure of future net cash flows $ 56,743 $ 1,916 $ 1,667 $ 60,326 |
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows | The principal sources of change in the standardized measure of discounted future net cash flows are summarized in the following table: (millions of Canadian dollars) 2020 2019 2018 Sales of crude oil and natural gas produced, net of production costs $ (6,127) $ (11,807) $ (10,229) Net changes in sales prices and production costs (46,055) (3,515) 20,386 Extensions, discoveries and improved recovery 626 5,883 2,807 Changes in estimated future development costs (153) (1,889) (698) Purchases of proved reserves in place 947 7,418 396 Sales of proved reserves in place (1) — (55) Revisions of previous reserve estimates 5,295 (3,384) 2,711 Accretion of discount 7,718 8,062 6,119 Changes in production timing and other (4,830) 447 (955) Net change in income taxes 6,566 1,984 (7,061) Net change (36,014) 3,199 13,421 Balance - beginning of year 63,525 60,326 46,905 Balance - end of year $ 27,511 $ 63,525 $ 60,326 |
Accounting Policies - Narrative
Accounting Policies - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Bottom of range | Midstream and Refining | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 5 years |
Bottom of range | Other equipment | Oil Sands Mining and Upgrading | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 2 years |
Top of range | Midstream and Refining | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 30 years |
Top of range | Other equipment | Oil Sands Mining and Upgrading | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 18 years |
Performance Share Units | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Vesting term | 3 years |
Critical Accounting Estimates_2
Critical Accounting Estimates and Judgements - Narrative (Details) | Dec. 31, 2020 |
Bottom of range | |
Disclosure of fair value measurement of assets [line items] | |
Discount rate used in current measurement of higher of fair value less costs of disposal or previous estimate of value in use | 10.00% |
Top of range | |
Disclosure of fair value measurement of assets [line items] | |
Discount rate used in current measurement of higher of fair value less costs of disposal or previous estimate of value in use | 12.00% |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventories [Abstract] | ||
Product inventory | $ 390 | $ 468 |
Materials and supplies | 670 | 684 |
Total inventory | $ 1,060 | $ 1,152 |
Inventory - Narrative (Details)
Inventory - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Inventories [Abstract] | ||
Write-down of product inventory | $ 0 | $ 4 |
Exploration and Evaluation As_3
Exploration and Evaluation Assets - Detailed information about exploration and evaluation assets (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Detailed Information About Exploration For And Evaluation Of Mineral Resources [Line Items] | ||
Beginning balance | $ 2,579 | $ 2,637 |
Additions | 55 | 71 |
Acquisition of Devon assets | 91 | |
Transfers to property, plant and equipment | (194) | (219) |
Derecognitions and other | (3) | |
Foreign exchange adjustments | (1) | (1) |
Ending balance | 2,436 | 2,579 |
North America | ||
Disclosure Of Detailed Information About Exploration For And Evaluation Of Mineral Resources [Line Items] | ||
Beginning balance | 2,258 | 2,348 |
Additions | 40 | 38 |
Acquisition of Devon assets | 91 | |
Transfers to property, plant and equipment | (194) | (219) |
Derecognitions and other | (3) | |
Foreign exchange adjustments | 0 | 0 |
Ending balance | 2,101 | 2,258 |
North Sea | ||
Disclosure Of Detailed Information About Exploration For And Evaluation Of Mineral Resources [Line Items] | ||
Beginning balance | 0 | 0 |
Additions | 0 | 0 |
Acquisition of Devon assets | 0 | |
Transfers to property, plant and equipment | 0 | 0 |
Derecognitions and other | 0 | |
Foreign exchange adjustments | 0 | 0 |
Ending balance | 0 | 0 |
Offshore Africa | ||
Disclosure Of Detailed Information About Exploration For And Evaluation Of Mineral Resources [Line Items] | ||
Beginning balance | 69 | 37 |
Additions | 15 | 33 |
Acquisition of Devon assets | 0 | |
Transfers to property, plant and equipment | 0 | 0 |
Derecognitions and other | 0 | |
Foreign exchange adjustments | (1) | (1) |
Ending balance | 83 | 69 |
Oil Sands Mining and Upgrading | ||
Disclosure Of Detailed Information About Exploration For And Evaluation Of Mineral Resources [Line Items] | ||
Beginning balance | 252 | 252 |
Additions | 0 | 0 |
Acquisition of Devon assets | 0 | |
Transfers to property, plant and equipment | 0 | 0 |
Derecognitions and other | 0 | |
Foreign exchange adjustments | 0 | 0 |
Ending balance | $ 252 | $ 252 |
Exploration and Evaluation As_4
Exploration and Evaluation Assets - Narrative (Details) $ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2018CAD ($)agreement | Dec. 31, 2018USD ($)agreement | Oct. 06, 2020CAD ($) | Jun. 27, 2019CAD ($) | |
Disclosure Of Detailed Information About Exploration For And Evaluation Of Mineral Resources [Line Items] | ||||||
Disposals of exploration and evaluation assets | $ 3 | |||||
Proceeds from disposal of exploration and evaluation assets | 31 | $ 0 | $ 16 | |||
Farm-out agreements, working interest retained | 20.00% | 20.00% | ||||
North America | ||||||
Disclosure Of Detailed Information About Exploration For And Evaluation Of Mineral Resources [Line Items] | ||||||
Asset retirement obligations | 20 | $ 13 | ||||
Disposals of exploration and evaluation assets | 3 | |||||
Offshore Africa | ||||||
Disclosure Of Detailed Information About Exploration For And Evaluation Of Mineral Resources [Line Items] | ||||||
Number of farm-out agreements | agreement | 2 | 2 | ||||
Disposals of exploration and evaluation assets | $ 0 | |||||
Painted Pony Energy Ltd | ||||||
Disclosure Of Detailed Information About Exploration For And Evaluation Of Mineral Resources [Line Items] | ||||||
Total purchase consideration | $ 111 | |||||
Exploration and evaluation assets | 15 | |||||
Property, plant and equipment | 750 | |||||
Deferred tax asset | 211 | |||||
Asset retirement obligations | $ 13 | |||||
Devon | ||||||
Disclosure Of Detailed Information About Exploration For And Evaluation Of Mineral Resources [Line Items] | ||||||
Total purchase consideration | 3,412 | $ 3,412 | ||||
Exploration and evaluation assets | $ 91 | 91 | ||||
Property, plant and equipment | 3,325 | |||||
Asset retirement obligations | $ 178 | |||||
Laricina Energy Ltd | North America | ||||||
Disclosure Of Detailed Information About Exploration For And Evaluation Of Mineral Resources [Line Items] | ||||||
Total purchase consideration | $ 46 | |||||
Exploration and evaluation assets | 118 | |||||
Property, plant and equipment | 44 | |||||
Cash | 24 | |||||
Deferred tax asset | 168 | |||||
Net working capital liabilities recognised as of acquisition date | 18 | |||||
Asset retirement obligations | 17 | |||||
Notes payable recognised as of acquisition date | 48 | |||||
Gain recognised on acquisition, pre-tax | $ 225 | |||||
Farm-Out Agreements, Offshore Africa | Offshore Africa | ||||||
Disclosure Of Detailed Information About Exploration For And Evaluation Of Mineral Resources [Line Items] | ||||||
Farm-out agreements, working interest disposed | 30.00% | 30.00% | ||||
Disposals of exploration and evaluation assets | $ 89 | |||||
Disposals of exploration and evaluation assets, costs incurred in past fiscal year recovered | 14 | |||||
Proceeds from disposal of exploration and evaluation assets | 105 | $ 79 | ||||
Gain recognised on farm-out, pre-tax | 16 | |||||
Gain recognised on farm-out, after-tax | $ 12 |
Property, Plant and Equipment -
Property, Plant and Equipment - Detailed information about property, plant and equipment (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | $ (68,043) | ||
Ending balance | (65,752) | $ (68,043) | |
Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (129,789) | (123,822) | |
Additions | 3,340 | 5,393 | |
Acquisition of Devon assets | 3,325 | ||
Transfers from E&E assets | 194 | 219 | |
Derecognitions | 1,158 | 2,340 | |
Disposals | (92) | ||
Foreign exchange adjustments and other | 178 | 630 | |
Ending balance | (131,895) | (129,789) | $ (123,822) |
Accumulated depletion and depreciation | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 61,746 | 59,263 | |
Derecognitions | (1,158) | (2,340) | |
Disposals | 63 | ||
Foreign exchange adjustments and other | (174) | (464) | |
Expense | 5,792 | 5,287 | |
Ending balance | 66,143 | 61,746 | 59,263 |
North Sea | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Additions | 108 | ||
Operating segments | North America | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (26,050) | ||
Ending balance | (24,356) | (26,050) | |
Operating segments | North America | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (72,627) | (67,007) | |
Additions | 1,789 | 2,613 | |
Acquisition of Devon assets | 3,325 | ||
Transfers from E&E assets | 194 | 219 | |
Derecognitions | 521 | 537 | |
Disposals | (92) | ||
Foreign exchange adjustments and other | 0 | 0 | |
Ending balance | (73,997) | (72,627) | (67,007) |
Operating segments | North America | Accumulated depletion and depreciation | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 46,577 | 43,881 | |
Derecognitions | (521) | (537) | |
Disposals | 63 | ||
Foreign exchange adjustments and other | (28) | 18 | |
Expense | 3,676 | 3,215 | |
Ending balance | 49,641 | 46,577 | 43,881 |
Operating segments | North Sea | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (1,584) | ||
Ending balance | (1,430) | (1,584) | |
Operating segments | North Sea | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (7,296) | (7,321) | |
Additions | 104 | 349 | |
Acquisition of Devon assets | 0 | ||
Transfers from E&E assets | 0 | 0 | |
Derecognitions | 3 | 0 | |
Disposals | 0 | ||
Foreign exchange adjustments and other | 114 | 374 | |
Ending balance | (7,283) | (7,296) | (7,321) |
Operating segments | North Sea | Accumulated depletion and depreciation | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 5,712 | 5,735 | |
Derecognitions | (3) | 0 | |
Disposals | 0 | ||
Foreign exchange adjustments and other | (103) | (279) | |
Expense | 247 | 256 | |
Ending balance | 5,853 | 5,712 | 5,735 |
Operating segments | Offshore Africa | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (1,221) | ||
Ending balance | (1,141) | (1,221) | |
Operating segments | Offshore Africa | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (3,933) | (5,471) | |
Additions | 94 | 233 | |
Acquisition of Devon assets | 0 | ||
Transfers from E&E assets | 0 | 0 | |
Derecognitions | 0 | 1,515 | |
Disposals | 0 | ||
Foreign exchange adjustments and other | 64 | 256 | |
Ending balance | (3,963) | (3,933) | (5,471) |
Operating segments | Offshore Africa | Accumulated depletion and depreciation | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 2,712 | 4,203 | |
Derecognitions | 0 | (1,515) | |
Disposals | 0 | ||
Foreign exchange adjustments and other | (51) | (190) | |
Expense | 161 | 214 | |
Ending balance | 2,822 | 2,712 | 4,203 |
Operating segments | Oil Sands Mining and Upgrading | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (38,769) | ||
Ending balance | (38,421) | (38,769) | |
Operating segments | Oil Sands Mining and Upgrading | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (45,016) | (43,147) | |
Additions | 1,328 | 2,154 | |
Acquisition of Devon assets | 0 | ||
Transfers from E&E assets | 0 | 0 | |
Derecognitions | 634 | 285 | |
Disposals | 0 | ||
Foreign exchange adjustments and other | 0 | 0 | |
Ending balance | (45,710) | (45,016) | (43,147) |
Operating segments | Oil Sands Mining and Upgrading | Accumulated depletion and depreciation | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 6,247 | 4,981 | |
Derecognitions | (634) | (285) | |
Disposals | 0 | ||
Foreign exchange adjustments and other | 8 | (13) | |
Expense | 1,668 | 1,564 | |
Ending balance | 7,289 | 6,247 | 4,981 |
Operating segments | Midstream and Refining | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (298) | ||
Ending balance | (289) | (298) | |
Operating segments | Midstream and Refining | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (451) | (441) | |
Additions | 6 | 10 | |
Acquisition of Devon assets | 0 | ||
Transfers from E&E assets | 0 | 0 | |
Derecognitions | 0 | 0 | |
Disposals | 0 | ||
Foreign exchange adjustments and other | 0 | 0 | |
Ending balance | (457) | (451) | (441) |
Operating segments | Midstream and Refining | Accumulated depletion and depreciation | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 153 | 138 | |
Derecognitions | 0 | 0 | |
Disposals | 0 | ||
Foreign exchange adjustments and other | 0 | 0 | |
Expense | 15 | 15 | |
Ending balance | 168 | 153 | 138 |
Head office | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (121) | ||
Ending balance | (115) | (121) | |
Head office | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | (466) | (435) | |
Additions | 19 | 34 | |
Acquisition of Devon assets | 0 | ||
Transfers from E&E assets | 0 | 0 | |
Derecognitions | 0 | 3 | |
Disposals | 0 | ||
Foreign exchange adjustments and other | 0 | 0 | |
Ending balance | (485) | (466) | (435) |
Head office | Accumulated depletion and depreciation | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Beginning balance | 345 | 325 | |
Derecognitions | 0 | (3) | |
Disposals | 0 | ||
Foreign exchange adjustments and other | 0 | 0 | |
Expense | 25 | 23 | |
Ending balance | $ 370 | 345 | $ 325 |
GABON | Operating segments | Offshore Africa | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Disposals | $ (1,515) |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - CAD ($) | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 24, 2021 | Oct. 06, 2020 | Jun. 27, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Interest costs capitalized | $ 24,000,000 | $ 53,000,000 | $ 69,000,000 | |||
Weighted average capitalization rate | 3.50% | 4.00% | 3.90% | |||
Revenue | $ 16,893,000,000 | $ 22,871,000,000 | $ 21,027,000,000 | |||
Revenue net of blending, production, transportation, and feedstock expense | 11,895,000,000 | |||||
Return of asset retirement obligations upon disposal of property | 69,000,000 | |||||
Disposals of property, plant and equipment pre-tax gain | 20,000,000 | |||||
Disposals of property, plant and equipment after-tax gain | 14,000,000 | |||||
North America | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Net cash paid for consideration for acquisition of exploration and evaluation assets | 80,000,000 | 170,000,000 | ||||
Asset retirement obligations | 20,000,000 | 13,000,000 | ||||
Deferred tax liabilities | 0 | 0 | ||||
Gains on acquisitions of property, plant and equipment, pre-tax | 0 | 47,000,000 | ||||
North Sea | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Asset retirement obligations | 41,000,000 | |||||
Deferred tax liabilities | 27,000,000 | |||||
Gains on acquisitions of property, plant and equipment, pre-tax | 120,000,000 | |||||
Property, plant and equipment acquisition | 108,000,000 | |||||
Net proceeds received for acquisition of property, plant and equipment | 73,000,000 | |||||
Net working capital assets recognised, property, plant and equipment acquisition | 7,000,000 | |||||
Revaluation pre-tax gain | $ 19,000,000 | |||||
Oil Sands Mining and Upgrading | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Project costs not subject to depletion and depreciation | 117,000,000 | 115,000,000 | ||||
Devon | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Total purchase consideration | 3,412,000,000 | $ 3,412,000,000 | ||||
Revenue of acquiree since acquisition date | 1,540,000,000 | |||||
Revenue net of blending, production, transportation, and feedstock expense | 590,000,000 | |||||
Asset retirement obligations | 178,000,000 | |||||
Painted Pony Energy Ltd | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Less: cash consideration | $ 111,000,000 | |||||
Total purchase consideration | 111,000,000 | |||||
Asset retirement obligations | $ 13,000,000 | |||||
Non-revolving term credit facility maturing June 2022 | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Maximum credit facility | $ 3,088,000,000 | $ 3,250,000,000 | $ 2,725,000,000 | $ 3,250,000,000 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Summary of Net Assets Acquired and Liablities Assumed (Details) - CAD ($) $ in Millions | Oct. 06, 2020 | Dec. 31, 2019 | Jun. 27, 2019 |
Devon | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | $ 3,325 | ||
Exploration and evaluation assets | $ 91 | 91 | |
Inventory, prepaids and other long-term assets | 195 | ||
Accrued liabilities | (21) | ||
Asset retirement obligations | (178) | ||
Net assets acquired | 3,412 | ||
Net assets acquired | $ 3,412 | ||
Painted Pony Energy Ltd | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | $ 750 | ||
Exploration and evaluation assets | 15 | ||
Other long-term assets | 204 | ||
Long-term debt | (397) | ||
Asset retirement obligations | (13) | ||
Other long-term liabilities | (442) | ||
Deferred tax asset | 211 | ||
Net assets acquired | 328 | ||
Net assets acquired | 328 | ||
Less: cash consideration | 111 | ||
Gain on acquisition | $ 217 |
Leases - Lease Assets (Details)
Leases - Lease Assets (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Information About Lease Assets Explanatory [Line Items] | ||
Lease assets, beginning balance | $ 1,789 | |
Additions | 148 | $ 527 |
Depreciation | (254) | (259) |
Derecognitions | (35) | (6) |
Foreign exchange adjustments and other | (3) | (12) |
Lease assets, ending balance | 1,645 | 1,789 |
Product transportation and storage | ||
Disclosure Of Information About Lease Assets Explanatory [Line Items] | ||
Lease assets, beginning balance | 1,166 | |
Additions | 17 | 452 |
Depreciation | (124) | (106) |
Derecognitions | (20) | 0 |
Foreign exchange adjustments and other | (1) | (3) |
Lease assets, ending balance | 1,038 | 1,166 |
Field equipment and power | ||
Disclosure Of Information About Lease Assets Explanatory [Line Items] | ||
Lease assets, beginning balance | 317 | |
Additions | 121 | 43 |
Depreciation | (53) | (54) |
Derecognitions | (5) | (6) |
Foreign exchange adjustments and other | (1) | 2 |
Lease assets, ending balance | 379 | 317 |
Offshore vessels and equipment | ||
Disclosure Of Information About Lease Assets Explanatory [Line Items] | ||
Lease assets, beginning balance | 182 | |
Additions | 7 | 12 |
Depreciation | (51) | (72) |
Derecognitions | (10) | 0 |
Foreign exchange adjustments and other | 0 | (10) |
Lease assets, ending balance | 128 | 182 |
Office leases and other | ||
Disclosure Of Information About Lease Assets Explanatory [Line Items] | ||
Lease assets, beginning balance | 124 | |
Additions | 3 | 20 |
Depreciation | (26) | (27) |
Derecognitions | 0 | 0 |
Foreign exchange adjustments and other | (1) | (1) |
Lease assets, ending balance | $ 100 | $ 124 |
Leases - Lease Assets by Segmen
Leases - Lease Assets by Segment (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Disclosure of operating segments [line items] | |||
Lease assets | $ 1,645 | $ 1,789 | $ 1,539 |
Operating segments | North America | |||
Disclosure of operating segments [line items] | |||
Lease assets | 345 | 300 | |
Operating segments | North Sea | |||
Disclosure of operating segments [line items] | |||
Lease assets | 7 | 38 | |
Operating segments | Offshore Africa | |||
Disclosure of operating segments [line items] | |||
Lease assets | 126 | 154 | |
Operating segments | Oil Sands Mining and Upgrading | |||
Disclosure of operating segments [line items] | |||
Lease assets | 1,080 | 1,191 | |
Head office | |||
Disclosure of operating segments [line items] | |||
Lease assets | $ 87 | $ 106 |
Leases - Lease Liabilities and
Leases - Lease Liabilities and Expense (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease liabilities [abstract] | ||
Lease liabilities | $ 1,690 | $ 1,809 |
Less: current portion | 189 | 233 |
Non-current lease liabilities | 1,501 | 1,576 |
Expenses relating to short-term leases | 409 | 448 |
Interest expense on lease liabilities | 67 | 70 |
Variable lease payments not included in the measurement of lease liabilities | 85 | 118 |
Total cash outflows for leases | 983 | 1,178 |
Increase through capitalization of short-term leases, property, plant and equipment | $ 197 | $ 305 |
Investments - Summary of Invest
Investments - Summary of Investments (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [line items] | ||
Investments | $ 305 | $ 490 |
Investment in PrairieSky Royalty Ltd. | ||
Disclosure of detailed information about financial instruments [line items] | ||
Investments | 228 | 345 |
Investment in Inter Pipeline Ltd. | ||
Disclosure of detailed information about financial instruments [line items] | ||
Investments | $ 77 | $ 145 |
Investments - Narrative (Detail
Investments - Narrative (Details) - $ / shares shares in Millions | Feb. 22, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Brookfield Infrastructure Partners L.P. | |||
Disclosure of detailed information about financial instruments [line items] | |||
Business acquisition, share price offered (CAD per share) | $ 16.50 | ||
Investment in PrairieSky Royalty Ltd. | |||
Disclosure of detailed information about financial instruments [line items] | |||
Number of shares held as investment (in shares) | 22.6 | ||
Market price per common share (CAD per share) | $ 10.09 | $ 15.23 | |
Investment in Inter Pipeline Ltd. | |||
Disclosure of detailed information about financial instruments [line items] | |||
Number of shares held as investment (in shares) | 6.4 | ||
Market price per common share (CAD per share) | $ 11.87 | $ 22.54 |
Investments - PrairieSky (Detai
Investments - PrairieSky (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | |||
(Gain) loss from investment | $ 171 | $ 293 | $ 346 |
Investment in PrairieSky Royalty Ltd. | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value loss from PrairieSky | 117 | 55 | 326 |
Dividend income from PrairieSky | (9) | (17) | (17) |
(Gain) loss from investment | $ 108 | $ 38 | $ 309 |
Investments - Inter Pipeline (D
Investments - Inter Pipeline (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | |||
(Gain) loss from investment | $ 171 | $ 293 | $ 346 |
Investment in Inter Pipeline Ltd. | |||
Disclosure of financial assets [line items] | |||
Fair value loss (gain) from Inter Pipeline | 68 | (21) | 43 |
Dividend income from Inter Pipeline | (5) | (11) | (11) |
(Gain) loss from investment | $ 63 | $ (32) | $ 32 |
Other Long-Term Assets - Schedu
Other Long-Term Assets - Schedule of other long-term assets (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Oct. 06, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about business combination [line items] | |||
North West Redwater Partnership subordinated debt | $ 555 | $ 652 | |
Prepaid cost of service toll | 162 | 130 | |
Risk management | 136 | 290 | |
Long-term inventory | 121 | 121 | |
Other | 190 | 84 | |
Other assets | 1,164 | 1,277 | |
Less: current portion | 82 | 54 | |
Other long-term assets | $ 1,082 | $ 1,223 | |
Painted Pony Energy Ltd | |||
Disclosure of detailed information about business combination [line items] | |||
Contract assets | $ 111 |
Other Long-Term Assets - Narrat
Other Long-Term Assets - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020CAD ($)bbl | Dec. 31, 2019CAD ($) | Dec. 31, 2018CAD ($) | Mar. 24, 2021CAD ($) | |
Disclosure of joint ventures [line items] | ||||
North West Redwater Partnership subordinated debt | $ 555 | $ 652 | ||
Borrowings | $ 21,453 | 20,982 | ||
North West Redwater Partnership | ||||
Disclosure of joint ventures [line items] | ||||
Company's voting percent interest in joint venture | 50.00% | |||
North West Redwater Partnership subordinated debt | $ 555 | 652 | ||
North West Redwater Partnership subordinated debt, term | 10 years | |||
North West Redwater Partnership subordinated debt, interest rate | 6.00% | |||
North West Redwater Partnership subordinated debt, proceeds received | $ 124 | |||
Processing agreement, barrels of bitumen feedstock per day | bbl | 50,000 | |||
Processing agreement, barrels of bitumen feedstock per date for the Company | bbl | 12,500 | |||
Processing agreement, barrels of bitumen feedstock per date for others | bbl | 37,500 | |||
Percent of pro rata share of debt company has committed paying to joint venture | 25.00% | |||
Term of commitment to joint venture | 30 years | |||
Unrecognised share of losses of joint ventures | $ 94 | 59 | ||
Recognized share of losses of joint ventures | 287 | $ 5 | ||
Cumulative unrecognised share of losses of joint ventures | $ 153 | 59 | ||
Company's ownership interest in joint venture | 50.00% | |||
Non-revolving term credit facility maturing February 2021 | ||||
Disclosure of joint ventures [line items] | ||||
Maximum credit facility | $ 750 | |||
North West Redwater Partnership | North West Redwater Partnership | ||||
Disclosure of joint ventures [line items] | ||||
Processing agreement, barrels of bitumen feedstock per day | bbl | 50,000 | |||
Processing agreement term | 30 years | |||
North West Redwater Partnership | Syndicated credit facility | North West Redwater Partnership | ||||
Disclosure of joint ventures [line items] | ||||
Maximum credit facility | $ 3,500 | |||
Borrowings | 2,866 | 2,715 | ||
North West Redwater Partnership | Non-revolving term credit facility maturing February 2021 | North West Redwater Partnership | ||||
Disclosure of joint ventures [line items] | ||||
Maximum credit facility | 1,500 | $ 1,500 | $ 1,500 | |
Major Borrowings Transactions | North West Redwater Partnership | Syndicated credit facility | North West Redwater Partnership | ||||
Disclosure of joint ventures [line items] | ||||
Maximum credit facility | $ 2,000 |
Other Long-Term Assets - Summar
Other Long-Term Assets - Summary of Assets, Liabilities, Partners' Equity and Equity (Income) Loss (Details) - CAD ($) $ in Millions | 7 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of joint ventures [line items] | ||||
Current assets | $ 4,361 | $ 4,361 | $ 4,487 | |
Current liabilities | 5,078 | 5,078 | 6,637 | |
Partners’ equity | 32,380 | 32,380 | 34,991 | $ 31,974 |
Product sales | 17,491 | 24,394 | 22,282 | |
Net loss | 435 | (5,416) | (2,591) | |
Depletion, depreciation and amortization | 6,046 | 5,546 | 5,161 | |
Interest and other financing expense | 756 | 836 | $ 739 | |
North West Redwater Partnership | ||||
Disclosure of joint ventures [line items] | ||||
Current assets | 115 | 115 | 124 | |
Non-current assets | 5,549 | 5,549 | 5,664 | |
Current liabilities | 1,573 | 1,573 | 192 | |
Non-current liabilities | 4,244 | 4,244 | 5,655 | |
Partners’ equity | (153) | (153) | (59) | |
Product sales | 674 | 868 | ||
Net loss | 94 | 346 | ||
Depletion, depreciation and amortization | 107 | 76 | ||
Interest and other financing expense | $ 210 | 199 | ||
Refining toll payment made to joint venture | $ 174 | |||
Percent of pro rata share of debt company has committed paying to joint venture | 25.00% | 25.00% | ||
North West Redwater Partnership | ||||
Disclosure of joint ventures [line items] | ||||
Current assets | $ 230 | $ 230 | 248 | |
Non-current assets | 11,098 | 11,098 | 11,328 | |
Current liabilities | 3,146 | 3,146 | 384 | |
Non-current liabilities | 8,488 | 8,488 | 11,310 | |
Partners’ equity | $ (306) | (306) | (118) | |
Product sales | 1,348 | 1,736 | ||
Net loss | 188 | 692 | ||
Depletion, depreciation and amortization | 214 | 152 | ||
Interest and other financing expense | $ 420 | $ 398 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-term Debt (Details) $ in Millions | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) |
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 21,453 | $ 20,982 | ||
Less: current portion of commercial paper | 544 | 329 | ||
Current portion of other long-term debt | 799 | 2,062 | ||
Long-term debt | $ 20,110 | 18,591 | ||
2.05% debentures due June 1, 2020 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 2.05% | 2.05% | ||
2.89% debentures due August 14, 2020 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 2.89% | 2.89% | ||
3.31% debentures due February 11, 2022 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 3.31% | 3.31% | ||
1.45% debentures due November 16, 2023 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 1.45% | 1.45% | ||
Borrowings | $ 500 | |||
3.55% debentures due June 3, 2024 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 3.55% | 3.55% | ||
3.42% debentures due December 1, 2026 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 3.42% | 3.42% | ||
2.50% debentures due January 17, 2028 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 2.50% | 2.50% | ||
Borrowings | $ 300 | |||
4.85% debentures due May 30, 2047 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 4.85% | 4.85% | ||
Bank credit facilities (December 31, 2020 – US$3,953 million; December 31, 2019 – US$3,745 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 3,953,000,000 | $ 3,745,000,000 | ||
Commercial paper (December 31, 2020 – US$426 million; December 31, 2019 – US$254 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 544 | $ 426,000,000 | $ 254,000,000 | |
3.45% due November 15, 2021 (US$500 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 3.45% | 3.45% | ||
Notional amount | $ 500,000,000 | |||
2.95% due January 15, 2023 (US$1,000 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 2.95% | 2.95% | ||
Notional amount | $ 1,000,000,000 | |||
3.80% due April 15, 2024 (US$500 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 3.80% | 3.80% | ||
Notional amount | $ 500,000,000 | |||
3.90% due February 1, 2025 (US$600 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 3.90% | 3.90% | ||
Notional amount | $ 600,000,000 | |||
2.05% due July 15, 2025 (US$600 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 2.05% | 2.05% | ||
Borrowings | $ 600,000,000 | |||
Notional amount | $ 600,000,000 | |||
3.85% due June 1, 2027 (US$1,250 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 3.85% | 3.85% | ||
Notional amount | $ 1,250,000,000 | |||
2.95% due July 15, 2030 (US$500 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 2.95% | 2.95% | ||
Borrowings | $ 500,000,000 | |||
Notional amount | $ 500,000,000 | |||
7.20% due January 15, 2032 (US$400 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 7.20% | 7.20% | ||
Notional amount | $ 400,000,000 | |||
6.45% due June 30, 2033 (US$350 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 6.45% | 6.45% | ||
Notional amount | $ 350,000,000 | |||
5.85% due February 1, 2035 (US$350 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 5.85% | 5.85% | ||
Notional amount | $ 350,000,000 | |||
6.50% due February 15, 2037 (US$450 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 6.50% | 6.50% | ||
Notional amount | $ 450,000,000 | |||
6.25% due March 15, 2038 (US$1,100 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 6.25% | 6.25% | ||
Notional amount | $ 1,100,000,000 | |||
6.75% due February 1, 2039 (US$400 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 6.75% | 6.75% | ||
Notional amount | $ 400,000,000 | |||
4.95% due June 1, 2047 (US$750 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 4.95% | 4.95% | ||
Notional amount | $ 750,000,000 | |||
Gross carrying amount | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 21,560 | 21,090 | ||
Gross carrying amount | Bank credit facilities | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 1,614 | 1,688 | ||
Gross carrying amount | 2.05% debentures due June 1, 2020 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 0 | 900 | ||
Gross carrying amount | 2.89% debentures due August 14, 2020 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 0 | 1,000 | ||
Gross carrying amount | 3.31% debentures due February 11, 2022 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 1,000 | 1,000 | ||
Gross carrying amount | 1.45% debentures due November 16, 2023 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 500 | 0 | ||
Gross carrying amount | 3.55% debentures due June 3, 2024 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 500 | 500 | ||
Gross carrying amount | 3.42% debentures due December 1, 2026 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 600 | 600 | ||
Gross carrying amount | 2.50% debentures due January 17, 2028 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 300 | 0 | ||
Gross carrying amount | 4.85% debentures due May 30, 2047 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 300 | 300 | ||
Gross carrying amount | Medium-term notes | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 4,814 | 5,988 | ||
Gross carrying amount | Bank credit facilities (December 31, 2020 – US$3,953 million; December 31, 2019 – US$3,745 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 5,041 | 4,855 | ||
Gross carrying amount | Commercial paper (December 31, 2020 – US$426 million; December 31, 2019 – US$254 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 544 | 329 | ||
Gross carrying amount | 3.45% due November 15, 2021 (US$500 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 638 | 648 | ||
Gross carrying amount | 2.95% due January 15, 2023 (US$1,000 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 1,276 | 1,296 | ||
Gross carrying amount | 3.80% due April 15, 2024 (US$500 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 638 | 648 | ||
Gross carrying amount | 3.90% due February 1, 2025 (US$600 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 765 | 778 | ||
Gross carrying amount | 2.05% due July 15, 2025 (US$600 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 765 | 0 | ||
Gross carrying amount | 3.85% due June 1, 2027 (US$1,250 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 1,595 | 1,621 | ||
Gross carrying amount | 2.95% due July 15, 2030 (US$500 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 638 | 0 | ||
Gross carrying amount | 7.20% due January 15, 2032 (US$400 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 510 | 519 | ||
Gross carrying amount | 6.45% due June 30, 2033 (US$350 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 446 | 454 | ||
Gross carrying amount | 5.85% due February 1, 2035 (US$350 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 446 | 454 | ||
Gross carrying amount | 6.50% due February 15, 2037 (US$450 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 574 | 583 | ||
Gross carrying amount | 6.25% due March 15, 2038 (US$1,100 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 1,403 | 1,426 | ||
Gross carrying amount | 6.75% due February 1, 2039 (US$400 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 510 | 519 | ||
Gross carrying amount | 4.95% due June 1, 2047 (US$750 million) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 957 | 972 | ||
Gross carrying amount | Long-term debt | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 16,746 | 15,102 | ||
Original issue discounts, net | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 18 | 17 | ||
Transaction costs | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 89 | $ 91 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 24, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2018CAD ($) | Jun. 30, 2021CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2019USD ($) | Dec. 31, 2019GBP (£) | Jun. 27, 2019CAD ($) | Dec. 31, 2018GBP (£) | |
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings | $ 21,453,000,000 | $ 20,982,000,000 | |||||||||
Repayments of borrowings | 397,000,000 | 0 | $ 0 | ||||||||
Letters of credit and guarantees outstanding | 489,000,000 | 468,000,000 | |||||||||
Gross carrying amount | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings | 21,560,000,000 | 21,090,000,000 | |||||||||
Bank credit facilities | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Maximum credit facility | 4,958,000,000 | ||||||||||
Term Credit Facility | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Maximum credit facility | 6,738,000,000 | ||||||||||
Demand credit facility | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Maximum credit facility | 100,000,000 | £ 5,000,000 | £ 5,000,000 | £ 15,000,000 | |||||||
Non-Revolving Term Credit Facility Maturing February 2022 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Maximum credit facility | 1,000,000,000 | ||||||||||
Revolving syndicated credit facility maturing June 2022 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Maximum credit facility | 2,425,000,000 | ||||||||||
Non-revolving term credit facility maturing June 2022 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Maximum credit facility | $ 2,725,000,000 | 3,088,000,000 | 3,250,000,000 | $ 3,250,000,000 | |||||||
Credit facility annual amortization due | $ 162,500,000 | ||||||||||
Repayments of borrowings | $ 362,500,000 | 162,500,000 | |||||||||
Non-revolving term credit facility maturing February 2023 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Maximum credit facility | 2,650,000,000 | 2,650,000,000 | |||||||||
Revolving syndicated credit facility maturing June 2023 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Maximum credit facility | 2,425,000,000 | 2,425,000,000 | |||||||||
Non-revolving term credit facility maturing February 2021 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Maximum credit facility | 750,000,000 | ||||||||||
Non-revolving term credit facility maturing May 2020 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Repayments of lines of credit | 1,800,000,000 | ||||||||||
Non-revolving term credit facility maturing October 2020 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Maximum credit facility | 2,200,000,000 | ||||||||||
Revolving syndicated credit facility maturing June 2019 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Maximum credit facility | 330,000,000 | ||||||||||
Revolving syndicated credit facility maturing June 2021 to June 2023 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Maximum credit facility | 2,095,000,000 | ||||||||||
Commercial Paper | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Maximum credit facility | 2,500,000,000 | ||||||||||
Borrowings | 544,000,000 | $ 426,000,000 | $ 254,000,000 | ||||||||
Commercial Paper | Gross carrying amount | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings | $ 544,000,000 | $ 329,000,000 | |||||||||
Credit facilities and commercial paper | Weighted average | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings, interest rate | 1.10% | 2.50% | 1.10% | 1.10% | 2.50% | 2.50% | |||||
Long-term debt | Gross carrying amount | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings | $ 16,746,000,000 | $ 15,102,000,000 | |||||||||
Long-term debt | Weighted average | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings, interest rate | 3.50% | 4.00% | 3.50% | 3.50% | 4.00% | 4.00% | |||||
1.45% debentures due November 16, 2023 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings | $ 500,000,000 | ||||||||||
Borrowings, interest rate | 1.45% | 1.45% | 1.45% | ||||||||
1.45% debentures due November 16, 2023 | Gross carrying amount | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings | $ 500,000,000 | $ 0 | |||||||||
2.50% debentures due January 17, 2028 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings | $ 300,000,000 | ||||||||||
Borrowings, interest rate | 2.50% | 2.50% | 2.50% | ||||||||
2.50% debentures due January 17, 2028 | Gross carrying amount | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings | $ 300,000,000 | 0 | |||||||||
Medium-Term Borrowings Expiring August 2021 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Base shelf prospectus borrowings, available | 2,200,000,000 | ||||||||||
Base shell prospectus borrowings, authorized | 3,000,000,000 | ||||||||||
2.89% debentures due August 14, 2020 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Repayments of borrowings | $ 1,000,000,000 | ||||||||||
Borrowings, interest rate | 2.89% | 2.89% | 2.89% | ||||||||
2.89% debentures due August 14, 2020 | Gross carrying amount | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings | $ 0 | 1,000,000,000 | |||||||||
2.05% debentures due June 1, 2020 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Repayments of borrowings | $ 900,000,000 | ||||||||||
Borrowings, interest rate | 2.05% | 2.05% | 2.05% | ||||||||
2.05% debentures due June 1, 2020 | Gross carrying amount | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings | $ 0 | 900,000,000 | |||||||||
2.60% debentures due December 3, 2019 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Repayments of borrowings | $ 500,000,000 | ||||||||||
Borrowings, interest rate | 2.60% | 2.60% | 2.60% | ||||||||
3.05% debentures due June 19, 2019 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Repayments of borrowings | $ 500,000,000 | ||||||||||
Borrowings, interest rate | 3.05% | 3.05% | 3.05% | ||||||||
2.05% due July 15, 2025 (US$600 million) | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings | $ 600,000,000 | ||||||||||
Borrowings, interest rate | 2.05% | 2.05% | 2.05% | ||||||||
2.05% due July 15, 2025 (US$600 million) | Gross carrying amount | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings | $ 765,000,000 | $ 0 | |||||||||
2.95% due July 15, 2030 (US$500 million) | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings | $ 500,000,000 | ||||||||||
Borrowings, interest rate | 2.95% | 2.95% | 2.95% | ||||||||
2.95% due July 15, 2030 (US$500 million) | Gross carrying amount | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings | $ 638,000,000 | $ 0 | |||||||||
US dollar denominated debt, unsecured | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Base shelf prospectus borrowings, available | $ 1,900,000,000 | ||||||||||
Base shell prospectus borrowings, authorized | $ 3,000,000,000 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt Repayments (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | $ 21,453 | $ 20,982 |
Gross carrying amount | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | 21,560 | $ 21,090 |
Gross carrying amount | 2021 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | 1,343 | |
Gross carrying amount | 2022 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | 4,887 | |
Gross carrying amount | 2023 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | 4,383 | |
Gross carrying amount | 2024 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | 1,138 | |
Gross carrying amount | 2025 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | 1,530 | |
Gross carrying amount | Thereafter | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | $ 8,279 |
Other Long-Term Liabilities - S
Other Long-Term Liabilities - Schedule of Other Long-Term Liabilities (Details) - CAD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Oct. 06, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about business combination [line items] | |||||
Asset retirement obligations | $ 5,861 | $ 5,771 | $ 3,886 | $ 4,327 | |
Lease liabilities | 1,690 | 1,809 | |||
Share-based compensation | 160 | 297 | 124 | $ 414 | |
Risk management | 160 | 112 | |||
Deferred purchase consideration | 72 | 95 | $ 118 | ||
Other | 343 | 98 | |||
Other liabilities | 8,286 | 8,182 | |||
Less: current portion | 722 | 819 | |||
Other long-term liabilities | 7,564 | $ 7,363 | |||
Annual installment amount | $ 25 | ||||
Installment period | 3 years | ||||
Painted Pony Energy Ltd | |||||
Disclosure of detailed information about business combination [line items] | |||||
Lease liabilities | $ 93 | ||||
Product transportation and processing obligation | $ 268 |
Other Long-Term Liabilities - A
Other Long-Term Liabilities - Asset Retirement Obligations (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of other provisions [line items] | |||
Asset retirement obligations settlement period | 60 years | ||
Inflation rate | 2.00% | 2.00% | |
Reconciliation Of Changes In Provision For Decommissioning Restoration And Rehabilitation Costs [Roll Forward] | |||
Balance – beginning of year | $ 5,771 | $ 3,886 | $ 4,327 |
Balance – end of year | 5,861 | 5,771 | 3,886 |
Less: current portion | 184 | 208 | 186 |
Non-current asset retirement obligation | $ 5,677 | $ 5,563 | $ 3,700 |
Provision for decommissioning, restoration and rehabilitation costs | |||
Disclosure of other provisions [line items] | |||
Weighted average discount rate | 3.70% | 3.80% | 5.00% |
Reconciliation Of Changes In Provision For Decommissioning Restoration And Rehabilitation Costs [Roll Forward] | |||
Liabilities incurred | $ 5 | $ 15 | $ 19 |
Liabilities acquired, net | 13 | 198 | 6 |
Liabilities settled | (249) | (296) | (290) |
Asset retirement obligation accretion | 205 | 190 | 186 |
Revision of cost and timing estimates | (134) | 412 | (111) |
Change in discount rates | 253 | 1,412 | (334) |
Foreign exchange adjustments | $ (3) | $ (46) | $ 83 |
Other Long-Term Liabilities -_2
Other Long-Term Liabilities - Segmented Asset Retirement Obligations (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of operating segments [line items] | ||||
Asset retirement obligations | $ 5,861 | $ 5,771 | $ 3,886 | $ 4,327 |
North America | ||||
Disclosure of operating segments [line items] | ||||
Asset retirement obligations | 2,899 | 2,792 | ||
North Sea | ||||
Disclosure of operating segments [line items] | ||||
Asset retirement obligations | 787 | 816 | ||
Offshore Africa | ||||
Disclosure of operating segments [line items] | ||||
Asset retirement obligations | 174 | 161 | ||
Oil Sands Mining and Upgrading | ||||
Disclosure of operating segments [line items] | ||||
Asset retirement obligations | 1,999 | 2,000 | ||
Midstream and Refining | ||||
Disclosure of operating segments [line items] | ||||
Asset retirement obligations | $ 2 | $ 2 |
Other Long-Term Liabilities -_3
Other Long-Term Liabilities - Share-Based Compensation (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation Of Changes In Liabilities From Share-Based Payment Transactions [Roll Forward] | |||
Balance – beginning of year | $ 297 | $ 124 | $ 414 |
Share-based compensation (recovery) expense | (82) | 223 | (146) |
Cash payment for stock options surrendered and PSUs vested | (39) | (2) | (5) |
Transferred to common shares | (21) | (53) | (120) |
Charged to (recovered from) Oil Sands Mining and Upgrading, net | 5 | 5 | (19) |
Balance – end of year | 160 | 297 | 124 |
Less: current portion | 119 | 227 | 92 |
Non-current liabilities from share-based payment arrangements | 41 | 70 | 32 |
Performance Share Units | |||
Reconciliation Of Changes In Liabilities From Share-Based Payment Transactions [Roll Forward] | |||
Share-based compensation (recovery) expense | $ 49 | $ 62 | $ 13 |
Other Long-Term Liabilities - W
Other Long-Term Liabilities - Weighted Average Assumptions Used to Calculate Share-Based Compensation Liability (Details) | 12 Months Ended | ||
Dec. 31, 2020CAD ($)year$ / shares | Dec. 31, 2019CAD ($)year$ / shares | Dec. 31, 2018CAD ($)year$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value | $ 3.47 | $ 7.88 | $ 3.33 |
Share price | $ / shares | $ 30.59 | $ 42 | $ 32.94 |
Expected volatility | 39.80% | 26.70% | 27.40% |
Expected dividend yield | 5.60% | 3.60% | 4.10% |
Risk free interest rate | 0.30% | 1.70% | 1.90% |
Expected forfeiture rate | 4.30% | 4.30% | 4.20% |
Stock options | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expected stock option life | year | 4.3 | 4.4 | 4.4 |
Intrinsic value of vested stock options | $ 11,000,000 | $ 75,000,000 | $ 27,000,000 |
Income Taxes - Schedule Of Prov
Income Taxes - Schedule Of Provision For Income Tax (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current | |||
Other taxes | $ 6 | $ 13 | $ 9 |
Current income tax | (257) | 434 | 374 |
Deferred | |||
Deferred corporate income tax | (181) | (895) | 540 |
Deferred income tax | (181) | (894) | 557 |
Income tax | (438) | (460) | 931 |
North America | |||
Current | |||
Current corporate income tax | (245) | 354 | 312 |
North Sea | |||
Current | |||
Current corporate income tax | (4) | 112 | 28 |
Current PRT - North Sea | (31) | (89) | (29) |
Deferred | |||
Deferred PRT - North Sea | 0 | 1 | 17 |
Offshore Africa | |||
Current | |||
Current corporate income tax | $ 17 | $ 44 | $ 54 |
Income Taxes - Schedule of Pr_2
Income Taxes - Schedule of Provision For Income Tax Rate Reconciliation (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||
Canadian statutory income tax rate | 24.10% | 26.50% | 27.00% |
Income tax provision at statutory rate | $ (211) | $ 1,313 | $ 951 |
UK PRT and other taxes | (25) | (76) | (3) |
Impact of deductible UK PRT and other taxes on corporate income tax | 11 | 32 | 3 |
Foreign and domestic tax rate differentials | (52) | (48) | 6 |
Non-taxable portion of capital (gains) losses | (10) | (65) | 142 |
Stock options exercised for common shares | (25) | 47 | (41) |
Income tax rate and other legislative changes | 0 | (1,618) | 0 |
Non-taxable gain on corporate acquisitions | (52) | 0 | (119) |
Revisions arising from prior year tax filings | (62) | (41) | (136) |
Change in unrecognized capital loss carryforward asset | (10) | (65) | 142 |
Other | (2) | 61 | (14) |
Income tax | $ (438) | $ (460) | $ 931 |
Income Taxes - Summary of Major
Income Taxes - Summary of Major Temporary Differences (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred income tax liabilities | $ 13,091 | $ 13,194 | ||
Deferred income tax assets | (2,947) | (2,655) | ||
Net deferred income tax liability | 10,144 | 10,539 | $ 11,451 | $ 10,975 |
Property, plant and equipment and exploration and evaluation assets | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred income tax liabilities | 11,922 | 12,074 | ||
Lease assets | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred income tax liabilities | 380 | 412 | ||
Unrealized risk management activities | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred income tax liabilities | 0 | 27 | ||
Investments | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred income tax liabilities | 14 | 36 | ||
Investment in North West Redwater Partnership | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred income tax liabilities | 767 | 593 | ||
Other | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred income tax liabilities | 8 | 52 | ||
Asset retirement obligations | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred income tax assets | (1,495) | (1,488) | ||
Lease liabilities | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred income tax assets | (388) | (416) | ||
Share-based compensation | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred income tax assets | (12) | (16) | ||
Loss carryforwards | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred income tax assets | (1,032) | (685) | ||
Unrealized foreign exchange loss (gain) on long-term debt | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred income tax assets | (20) | (49) | ||
Deferred PRT | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred income tax assets | $ 0 | $ (1) |
Income Taxes - Summary of Movem
Income Taxes - Summary of Movements in Deferred Tax Assets and Liabilities (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax (recovery) expense | $ (181) | $ (894) | $ 557 |
Property, plant and equipment and exploration and evaluation assets | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax (recovery) expense | (158) | (775) | 281 |
Lease assets | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax (recovery) expense | (11) | 414 | 0 |
Unrealized foreign exchange loss (gain) on long-term debt | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax (recovery) expense | 29 | 55 | (75) |
Unrealized risk management activities | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax (recovery) expense | (8) | (14) | 18 |
Asset retirement obligations | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax (recovery) expense | (13) | (317) | 175 |
Lease liabilities | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax (recovery) expense | 6 | (418) | |
Share-based compensation | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax (recovery) expense | 4 | (11) | (5) |
Loss carryforwards | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax (recovery) expense | (182) | 170 | (61) |
Investments | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax (recovery) expense | (22) | (10) | (50) |
Investment in North West Redwater Partnership | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax (recovery) expense | 174 | 179 | 162 |
Deferred PRT | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax (recovery) expense | 0 | 1 | 17 |
PRT deduction for corporate income tax | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax (recovery) expense | 0 | 0 | (7) |
Other | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax (recovery) expense | $ 0 | $ (168) | $ 102 |
Income Taxes - Summary of Net D
Income Taxes - Summary of Net Deferred Income Tax Liability (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Balance – beginning of year | $ 10,539 | $ 11,451 | $ 10,975 |
Deferred income tax (recovery) expense | (181) | (894) | 557 |
Deferred income tax expense (recovery) included in other comprehensive income | 0 | 8 | (6) |
Foreign exchange adjustments | (3) | (26) | 41 |
Business combinations | (211) | 0 | (116) |
Balance – end of year | $ 10,144 | $ 10,539 | $ 11,451 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - CAD ($) $ in Millions | Jan. 01, 2022 | Dec. 31, 2019 | Dec. 31, 2019 | Jan. 01, 2022 | Dec. 31, 2020 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Provincial corporate income tax rate | 8.00% | 11.00% | 12.00% | ||
Provincial corporate income tax rate, annual rate reduction | 1.00% | ||||
Increase in deferred income tax liability due to change in provincial corporate income tax rate | $ 1,618 | ||||
Unused tax losses | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deductible temporary differences for which no deferred tax asset is recognised | $ 1,000 | ||||
Unused tax credits | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Deductible temporary differences for which no deferred tax asset is recognised | $ 750 |
Share Capital - Outstanding Com
Share Capital - Outstanding Common Shares (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020CAD ($)shares | Dec. 31, 2019CAD ($)shares | Dec. 31, 2018CAD ($)shares | |
Reconciliation of number of shares outstanding [abstract] | |||
Balance – beginning of year | $ 34,991 | $ 31,974 | |
Issued upon exercise of stock options (in shares) | shares | 757,000 | 1,003,000 | |
Purchase of common shares under Normal Course Issuer Bid (In shares) | shares | (6,970,000) | ||
Purchase of common shares under Normal Course Issuer Bid | $ (271) | ||
Balance – end of year | 32,380 | $ 34,991 | $ 31,974 |
Share capital | |||
Reconciliation of number of shares outstanding [abstract] | |||
Balance – beginning of year | 9,533 | 9,323 | 9,109 |
Issued upon exercise of stock options | 108 | 360 | 332 |
Previously recognized liability on stock options exercised for common shares | 21 | 53 | 120 |
Purchase of common shares under Normal Course Issuer Bid | (56) | (203) | (238) |
Balance – end of year | $ 9,606 | $ 9,533 | $ 9,323 |
Ordinary shares | Share capital | |||
Reconciliation of number of shares outstanding [abstract] | |||
Balance - beginning of year (in shares) | shares | 1,186,857,000 | 1,201,886,000 | |
Balance – beginning of year | $ 9,533 | ||
Issued upon exercise of stock options (in shares) | shares | 3,979,000 | 10,871,000 | |
Previously recognized liability on stock options exercised for common shares | $ 21 | ||
Purchase of common shares under Normal Course Issuer Bid (In shares) | shares | (6,970,000) | (25,900,000) | |
Balance - end of year (in shares) | shares | 1,183,866,000 | 1,186,857,000 | 1,201,886,000 |
Balance – end of year | $ 9,606 | $ 9,533 |
Share Capital - Narrative (Deta
Share Capital - Narrative (Details) - CAD ($) $ / shares in Units, $ in Millions | Mar. 03, 2021 | Mar. 04, 2020 | Mar. 06, 2019 | Feb. 28, 2018 | Dec. 31, 2020 | May 22, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 21, 2019 |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Quarterly dividend declared (in CAD per share) | $ 0.47 | $ 0.425 | $ 0.375 | $ 0.335 | |||||
Share repurchase term | 12 years | ||||||||
Shares repurchased and retired (in shares) | 6,970,000 | ||||||||
Weighted average price per share of shares repurchased and retired (in CAD per share) | $ 38.84 | ||||||||
Purchase of common shares under Normal Course Issuer Bid | $ 271 | ||||||||
Normal Course Issuer Bid, percent of issued and outstanding shares | 5.00% | ||||||||
Top of range | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Shares authorized to be repurchased through Normal Course Issuer Bid (in shares) | 59,729,706 | ||||||||
Stock options | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Vesting term | 5 years | ||||||||
Shares that may be reserved for issuance as a percentage of common shares outstanding | 7.00% | ||||||||
Stock options | Bottom of range | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Expiration term | 5 years | ||||||||
Stock options | Top of range | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Expiration term | 6 years | ||||||||
Retained earnings | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Purchase of common shares under Normal Course Issuer Bid | $ 215 | $ 738 | $ 1,044 |
Share Capital - Stock Option Ac
Share Capital - Stock Option Activity (Details) shares in Thousands | 12 Months Ended | |
Dec. 31, 2020shares$ / shares | Dec. 31, 2019shares$ / shares | |
Share Capital, Reserves And Other Equity Interest [Abstract] | ||
Stock options outstanding - beginning of year (in shares) | shares | 47,646 | 46,685 |
Stock options granted (in shares) | shares | 12,032 | 16,314 |
Stock options surrendered for cash settlement (in shares) | shares | (3,979) | (10,871) |
Stock options exercised for common shares (in shares) | shares | (757) | (1,003) |
Stock options forfeited (in shares) | shares | (6,286) | (3,479) |
Stock options outstanding - end of year (in shares) | shares | 48,656 | 47,646 |
Stock options exercisable (in shares) | shares | 17,970 | 17,057 |
Weighted average exercise price, options outstanding - beginning of year (in CAD per share) | $ / shares | $ 38.04 | $ 37.92 |
Weighted average exercise price, options granted (in CAD per share) | $ / shares | 32.89 | 34.84 |
Weighted average exercise price, options surrendered for cash settlement (in CAD per share) | $ / shares | 27.24 | 33.16 |
Weighted average exercise price, options exercised (in CAD per share) | $ / shares | 29.34 | 34.52 |
Weighted average exercise price, options forfeited (in CAD per share) | $ / shares | 39.65 | 37.65 |
Weighted average exercise price, options outstanding - beginning of year (in CAD per share) | $ / shares | 37.53 | 38.04 |
Weighted average exercise price, options exercisable (in CAD per share) | $ / shares | $ 39.59 | $ 38.74 |
Share Capital - Range of Exerci
Share Capital - Range of Exercise Prices of Stock Options (Details) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020shares$ / shares | Dec. 31, 2019shares$ / shares | Dec. 31, 2018shares$ / shares | |
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Stock options outstanding (in shares) | shares | 48,656 | 47,646 | 46,685 |
Weighted average remaining term (years) | 2 years 10 months 24 days | ||
Weighted average exercise price, options outstanding (in CAD per share) | $ 37.53 | $ 38.04 | $ 37.92 |
Stock options exercisable (in shares) | shares | 17,970 | 17,057 | |
Weighted average exercise price, options exercisable (in CAD per share) | $ 39.59 | $ 38.74 | |
$20.76 - $24.99 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Stock options outstanding (in shares) | shares | 3,829 | ||
Weighted average remaining term (years) | 3 years 10 months 9 days | ||
Weighted average exercise price, options outstanding (in CAD per share) | $ 21.12 | ||
Stock options exercisable (in shares) | shares | 944 | ||
Weighted average exercise price, options exercisable (in CAD per share) | $ 21.64 | ||
$20.76 - $24.99 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | 20.76 | ||
$20.76 - $24.99 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | $ 24.99 | ||
$25.00 - $29.99 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Stock options outstanding (in shares) | shares | 1,975 | ||
Weighted average remaining term (years) | 1 year 9 months 21 days | ||
Weighted average exercise price, options outstanding (in CAD per share) | $ 28.48 | ||
Stock options exercisable (in shares) | shares | 1,362 | ||
Weighted average exercise price, options exercisable (in CAD per share) | $ 28.85 | ||
$25.00 - $29.99 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | 25 | ||
$25.00 - $29.99 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | $ 29.99 | ||
$30.00 - $34.99 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Stock options outstanding (in shares) | shares | 4,177 | ||
Weighted average remaining term (years) | 4 years 2 months 23 days | ||
Weighted average exercise price, options outstanding (in CAD per share) | $ 32.37 | ||
Stock options exercisable (in shares) | shares | 378 | ||
Weighted average exercise price, options exercisable (in CAD per share) | $ 32.40 | ||
$30.00 - $34.99 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | 30 | ||
$30.00 - $34.99 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | $ 34.99 | ||
$35.00 - $39.99 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Stock options outstanding (in shares) | shares | 22,495 | ||
Weighted average remaining term (years) | 3 years 5 months 8 days | ||
Weighted average exercise price, options outstanding (in CAD per share) | $ 37.49 | ||
Stock options exercisable (in shares) | shares | 4,721 | ||
Weighted average exercise price, options exercisable (in CAD per share) | $ 37.42 | ||
$35.00 - $39.99 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | 35 | ||
$35.00 - $39.99 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | $ 39.99 | ||
$40.00 - $44.99 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Stock options outstanding (in shares) | shares | 12,935 | ||
Weighted average remaining term (years) | 1 year 6 months 10 days | ||
Weighted average exercise price, options outstanding (in CAD per share) | $ 43.57 | ||
Stock options exercisable (in shares) | shares | 8,884 | ||
Weighted average exercise price, options exercisable (in CAD per share) | $ 43.54 | ||
$40.00 - $44.99 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | 40 | ||
$40.00 - $44.99 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | $ 44.99 | ||
$45.00 - $46.74 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Stock options outstanding (in shares) | shares | 3,245 | ||
Weighted average remaining term (years) | 2 years 4 months 24 days | ||
Weighted average exercise price, options outstanding (in CAD per share) | $ 45.21 | ||
Stock options exercisable (in shares) | shares | 1,681 | ||
Weighted average exercise price, options exercisable (in CAD per share) | $ 45.18 | ||
$45.00 - $46.74 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | 45 | ||
$45.00 - $46.74 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | $ 46.74 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Analysis Of Other Comprehensive Income By Item [Abstract] | ||
Derivative financial instruments designated as cash flow hedges | $ 69 | $ 71 |
Foreign currency translation adjustment | (61) | (37) |
Accumulated other comprehensive income (loss) | $ 8 | $ 34 |
Capital Disclosures (Details)
Capital Disclosures (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of objectives, policies and processes for managing capital [line items] | |||
Debt to book capitalization | 40.00% | 37.00% | |
Long-term debt, net | $ 21,269 | $ 20,843 | |
Total shareholders’ equity | $ 32,380 | $ 34,991 | $ 31,974 |
Bottom of range | |||
Disclosure of objectives, policies and processes for managing capital [line items] | |||
Debt to book capitalization | 25.00% | ||
Top of range | |||
Disclosure of objectives, policies and processes for managing capital [line items] | |||
Debt to book capitalization | 45.00% | ||
Debt to book capitalization ratio | 65.00% |
Net Earnings Per Common Share -
Net Earnings Per Common Share - Schedule of Basic and Diluted Net Earnings (Loss) per Common Share (Details) - CAD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted average ordinary shares and adjusted weighted average ordinary shares [abstract] | |||
Weighted average common shares outstanding – basic (thousands of shares) | 1,181,768 | 1,190,977 | 1,218,798 |
Effect of dilutive stock options (thousands of shares) | 0 | 2,129 | 4,960 |
Weighted average common shares outstanding – diluted (thousands of shares) | 1,181,768 | 1,193,106 | 1,223,758 |
Net earnings (loss) | $ (435) | $ 5,416 | $ 2,591 |
Net earnings (loss) per common share - basic (in CAD per share) | $ (0.37) | $ 4.55 | $ 2.13 |
Net earnings (loss) per common share - diluted (in CAD per share) | $ (0.37) | $ 4.54 | $ 2.12 |
Net Earnings Per Common Share_2
Net Earnings Per Common Share - Narrative (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per share [abstract] | |||
Potentially anti-dilutive securities (in shares) | 44,117 | 36,834 | 23,458 |
Interest and Other Financing _3
Interest and Other Financing Expense (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Borrowing costs [abstract] | |||
Long-term debt | $ 785 | $ 895 | $ 867 |
Interest expense on lease liabilities | 67 | 70 | |
Less: amounts capitalized on qualifying assets | (24) | (53) | (69) |
Total interest and other financing expense | 828 | 912 | 798 |
Total interest income | (72) | (76) | (59) |
Net interest and other financing expense | $ 756 | $ 836 | $ 739 |
Financial Instruments - Carryin
Financial Instruments - Carrying Amounts of Financial Instruments by Category (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets at amortized cost | $ 2,745 | $ 3,117 | |
Fair value through profit or loss | 253 | 469 | |
Derivatives used for hedging | 28 | 199 | |
Financial liabilities at amortized cost | (26,228) | (26,313) | |
Total | (23,202) | (22,528) | |
Lease liabilities | 1,690 | 1,809 | |
Deferred purchase consideration payable | $ 72 | 95 | $ 118 |
Installment period | 3 years | ||
Accounts payable | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities at amortized cost | $ (667) | (816) | |
Financial liabilities | (667) | (816) | |
Accrued liabilities | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities at amortized cost | (2,346) | (2,611) | |
Financial liabilities | (2,346) | (2,611) | |
Other long-term liabilities | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities, fair value through profit or loss | (52) | (21) | |
Financial liabilities, derivatives used for hedging | (108) | (91) | |
Financial liabilities at amortized cost | (1,762) | (1,904) | |
Financial liabilities | (1,922) | (2,016) | |
Long-term debt | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities at amortized cost | (21,453) | (20,982) | |
Financial liabilities | (21,453) | (20,982) | |
Accounts receivable | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets at amortized cost | 2,190 | 2,465 | |
Financial assets | 2,190 | 2,465 | |
Investments | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets, fair value through profit or loss | 305 | 490 | |
Financial assets | 305 | 490 | |
Other long-term assets | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets at amortized cost | 555 | 652 | |
Financial assets, derivatives used for hedging | 136 | 290 | |
Financial assets | $ 691 | $ 942 |
Financial Instruments - Carry_2
Financial Instruments - Carrying Amounts and Fair Values of Financial Instruments (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other long-term liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, carrying amount | $ (232) | $ (207) |
Other long-term liabilities | Level 1 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 0 | 0 |
Other long-term liabilities | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | (160) | (112) |
Other long-term liabilities | Level 3 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | (72) | (95) |
Fixed rate long-term debt | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, carrying amount | (21,453) | (20,982) |
Fixed rate long-term debt | Fixed interest rate | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, carrying amount | (14,254) | (14,110) |
Fixed rate long-term debt | Fixed interest rate | Level 1 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | (16,598) | (15,938) |
Fixed rate long-term debt | Fixed interest rate | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 0 | 0 |
Fixed rate long-term debt | Fixed interest rate | Level 3 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 0 | 0 |
Investments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, carrying amount | 305 | 490 |
Investments | Level 1 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 305 | 490 |
Investments | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 0 | 0 |
Investments | Level 3 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 0 | 0 |
Other long-term assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, carrying amount | 691 | 942 |
Other long-term assets | Level 1 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 0 | 0 |
Other long-term assets | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 136 | 290 |
Other long-term assets | Level 3 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | $ 555 | $ 652 |
Financial Instruments - Carry_3
Financial Instruments - Carrying Amounts and Reconciliation of Derivative Financial Instruments (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about hedging instruments [line items] | |||
Derivative financial asset (liability), net | $ (24) | $ 178 | $ 356 |
Current portion of other long-term assets | 5 | 8 | |
Current portion of other long-term liabilities | (131) | (112) | |
Other long-term assets | 131 | 282 | |
Other long-term liabilities | (29) | 0 | |
Cash flow hedges | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Gain (loss) on hedge ineffectiveness | 1 | (3) | $ 2 |
Natural gas fixed price swaps | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Derivatives held for trading, asset (liability) | (5) | (3) | |
Natural gas basis swaps | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Derivatives held for trading, asset (liability) | (40) | (8) | |
Foreign currency forward contracts | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Derivatives held for trading, asset (liability) | (7) | (10) | |
Foreign currency forward contracts | Cash flow hedges | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Cash flow hedges, asset (liability) | (108) | (91) | |
Cross currency swaps | Cash flow hedges | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Cash flow hedges, asset (liability) | $ 136 | $ 290 |
Financial Instruments - Estimat
Financial Instruments - Estimated Fair Values of Derivative Financial Instruments Included in Risk Management Asset (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation Of Changes In Derivative Financial Assets (Liabilities), Net [Roll Forward] | ||
Derivative financial asset (liability), net | $ 178 | $ 356 |
Net change in fair value of outstanding derivatives financial instruments recognized in: Risk management activities | (32) | (13) |
Net change in fair value of outstanding derivatives financial instruments recognized in: Foreign exchange | (168) | (231) |
Net change in fair value of outstanding derivatives financial instruments recognized in: Other comprehensive income (loss) | (2) | 66 |
Derivative financial asset (liability), net | (24) | 178 |
Asset (liability), included in current portion of other long-term (liabilities) assets | (126) | (104) |
Asset (liability), included in other long-term assets | $ 102 | $ 282 |
Financial Instruments - Net (Ga
Financial Instruments - Net (Gains) Losses from Risk Management Activities (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Instruments [Abstract] | |||
Net realized risk management loss (gain) | $ 32 | $ 64 | $ (99) |
Net unrealized risk management (gain) loss | (39) | 13 | (35) |
Gains (losses) on change in fair value of derivatives | $ (7) | $ 77 | $ (134) |
Financial Instruments - Commodi
Financial Instruments - Commodity Price Risk Management (Details) - Hedging Instruments Transactions - Commodity price risk | 12 Months Ended |
Dec. 31, 2020$ / MMBTU$ / GJMMBTU / dGJ / d | |
Fixed Price Swap, AECO Index | |
Disclosure of detailed information about hedging instruments [line items] | |
Average price of hedging instrument | $ / GJ | 2.03 |
Fixed Price Swap, AECO Index | Weighted average | |
Disclosure of detailed information about hedging instruments [line items] | |
Weighted average volume of hedging instrument | GJ / d | 37,337 |
Fixed Price Swap, DAWN Index | |
Disclosure of detailed information about hedging instruments [line items] | |
Average price of hedging instrument | $ / MMBTU | 2.46 |
Fixed Price Swap, DAWN Index | Weighted average | |
Disclosure of detailed information about hedging instruments [line items] | |
Weighted average volume of hedging instrument | MMBTU / d | 31,178 |
Fixed Price Swap, NYMEX Index | |
Disclosure of detailed information about hedging instruments [line items] | |
Average price of hedging instrument | $ / MMBTU | 2.54 |
Fixed Price Swap, NYMEX Index | Weighted average | |
Disclosure of detailed information about hedging instruments [line items] | |
Weighted average volume of hedging instrument | MMBTU / d | 20,808 |
Fixed Price Swap, SUMAS Index | |
Disclosure of detailed information about hedging instruments [line items] | |
Average price of hedging instrument | $ / MMBTU | 2.70 |
Fixed Price Swap, SUMAS Index | Weighted average | |
Disclosure of detailed information about hedging instruments [line items] | |
Weighted average volume of hedging instrument | MMBTU / d | 17,466 |
Differential Swap, AECO-STN 2 Index | |
Disclosure of detailed information about hedging instruments [line items] | |
Average price of hedging instrument | $ / GJ | 0.29 |
Differential Swap, AECO-STN 2 Index | Weighted average | |
Disclosure of detailed information about hedging instruments [line items] | |
Weighted average volume of hedging instrument | GJ / d | 20,000 |
Basis Swap, AECO Index, Maturing December 2023 | |
Disclosure of detailed information about hedging instruments [line items] | |
Average price of hedging instrument | $ / MMBTU | 1.23 |
Basis Swap, AECO Index, Maturing December 2023 | Weighted average | |
Disclosure of detailed information about hedging instruments [line items] | |
Weighted average volume of hedging instrument | MMBTU / d | 53,333 |
Basis Swap, AECO Index, Maturing December 2025 | |
Disclosure of detailed information about hedging instruments [line items] | |
Average price of hedging instrument | $ / MMBTU | 0.97 |
Basis Swap, AECO Index, Maturing December 2025 | Weighted average | |
Disclosure of detailed information about hedging instruments [line items] | |
Weighted average volume of hedging instrument | MMBTU / d | 20,000 |
Basis Swap, DAWN Index | |
Disclosure of detailed information about hedging instruments [line items] | |
Average price of hedging instrument | $ / MMBTU | 0.09 |
Basis Swap, DAWN Index | Weighted average | |
Disclosure of detailed information about hedging instruments [line items] | |
Weighted average volume of hedging instrument | MMBTU / d | 20,000 |
Financial Instruments - Foreign
Financial Instruments - Foreign Currency Exchange Rate Risk Management (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020CAD ($)$ / $ | Dec. 31, 2019CAD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Disclosure of detailed information about hedging instruments [line items] | |||||
Cash proceeds from settlement of cash flow hedge | $ 13 | $ 99 | $ 5 | ||
3.45% due November 15, 2021 (US$500 million) | |||||
Disclosure of detailed information about hedging instruments [line items] | |||||
Notional amount | $ 500,000,000 | ||||
Borrowings, interest rate | 3.45% | ||||
Foreign currency exchange rate risk | Cash flow hedges | Foreign currency forward contracts | |||||
Disclosure of detailed information about hedging instruments [line items] | |||||
Notional amount | $ 4,379,000,000 | ||||
Foreign currency exchange rate risk | Cash flow hedges | Cross currency swaps | |||||
Disclosure of detailed information about hedging instruments [line items] | |||||
Notional amount | $ 500,000,000 | ||||
Cash proceeds from settlement of cash flow hedge | $ 166 | ||||
USD | |||||
Disclosure of detailed information about hedging instruments [line items] | |||||
Exchange rate (US$/C$) | 0.7462 | 0.7520 | |||
Cross currency swaps | Foreign currency exchange rate risk | Cash flow hedges | Currency swap contract, term through March 2038 | |||||
Disclosure of detailed information about hedging instruments [line items] | |||||
Amount | 550,000,000 | ||||
Exchange rate (US$/C$) | $ / $ | 1.170 | ||||
Cross currency swaps | USD | Foreign currency exchange rate risk | Cash flow hedges | Currency swap contract, term through March 2038 | |||||
Disclosure of detailed information about hedging instruments [line items] | |||||
Interest rate | 6.25% | ||||
Cross currency swaps | CAD | Foreign currency exchange rate risk | Cash flow hedges | Currency swap contract, term through March 2038 | |||||
Disclosure of detailed information about hedging instruments [line items] | |||||
Interest rate | 5.76% | ||||
Foreign currency forward contracts | Foreign currency exchange rate risk | |||||
Disclosure of detailed information about hedging instruments [line items] | |||||
Notional amount | $ 4,951,000,000 | ||||
Derivative, term of contract | 90 days |
Financial Instruments - Financi
Financial Instruments - Financial Instrument Sensitivities (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020CAD ($)$ / MMBTU$ / Mcf | Dec. 31, 2020USD ($)$ / MMBTU$ / Mcf | Dec. 31, 2019CAD ($) | |
Commodity price risk | |||
Disclosure of detailed information about financial instruments [line items] | |||
Increase AECO fixed price swap $0.10/Mcf | $ / Mcf | 0.10 | 0.10 | |
Decrease AECO fixed price swap $0.10/Mcf | $ / Mcf | 0.10 | 0.10 | |
Increase natural gas fixed price swap US$0.10 MMBtu | $ / MMBTU | 0.10 | 0.10 | |
Decrease natural gas fixed price swap US$0.10 MMBtu | $ / MMBTU | 0.10 | 0.10 | |
Increase natural gas basis swap US$0.10 MMBtu | $ / MMBTU | 0.10 | 0.10 | |
Decrease natural gas basis swap US$0.10 MMBtu | $ / MMBTU | 0.10 | 0.10 | |
Interest rate risk | |||
Disclosure of detailed information about financial instruments [line items] | |||
Increase (decrease) to net earnings | $ (53) | $ (48) | |
Increase (decrease) to net earnings | 53 | 48 | |
Increase (decrease) to other comprehensive income | (17) | (21) | |
Increase (decrease) to other comprehensive income | $ 20 | 24 | |
Increase interest rate 1% | 1.00% | 1.00% | |
Decrease interest rate 1% | 1.00% | 1.00% | |
Currency risk [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Increase (decrease) to net earnings | $ (126) | (103) | |
Increase (decrease) to net earnings | 123 | 100 | |
Increase (decrease) to other comprehensive income | 0 | 0 | |
Increase (decrease) to other comprehensive income | 0 | 0 | |
Weakening of the Canadian dollar by US$0.01 | $ 0.01 | ||
Strengthening of the Canadian dollar by US$0.01 | $ 0.01 | ||
AECO Swap | Commodity price risk | |||
Disclosure of detailed information about financial instruments [line items] | |||
Increase (decrease) to net earnings | (1) | (1) | |
Increase (decrease) to net earnings | 1 | 1 | |
Increase (decrease) to other comprehensive income | 0 | 0 | |
Increase (decrease) to other comprehensive income | 0 | 0 | |
Natural Gas Fixed Price Swap | Commodity price risk | |||
Disclosure of detailed information about financial instruments [line items] | |||
Increase (decrease) to net earnings | (2) | 0 | |
Increase (decrease) to net earnings | 2 | 0 | |
Increase (decrease) to other comprehensive income | 0 | 0 | |
Increase (decrease) to other comprehensive income | 0 | 0 | |
Natural Gas Basis Swap | Commodity price risk | |||
Disclosure of detailed information about financial instruments [line items] | |||
Increase (decrease) to net earnings | (8) | (1) | |
Increase (decrease) to net earnings | 8 | 1 | |
Increase (decrease) to other comprehensive income | 0 | 0 | |
Increase (decrease) to other comprehensive income | $ 0 | $ 0 |
Financial Instruments - Counter
Financial Instruments - Counterparty Credit Risk Management (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | |||
Expected credit loss rate | 1.00% | 1.00% | |
Derivative financial asset (liability), net | $ (24) | $ 178 | $ 356 |
Credit risk | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial asset (liability), net | $ 129 | $ 265 |
Financial Instruments - Maturit
Financial Instruments - Maturity Dates for Financial Liabilities (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | |||
Accounts payable | $ 667 | $ 816 | |
Accrued liabilities | 2,346 | 2,611 | |
Long-term debt | 21,453 | 20,982 | |
Other long-term liabilities | 7,564 | 7,363 | |
Interest and other financing expense | 828 | 912 | $ 798 |
Gross carrying amount | |||
Disclosure of detailed information about financial instruments [line items] | |||
Long-term debt | 21,560 | $ 21,090 | |
Less than 1 year | |||
Disclosure of detailed information about financial instruments [line items] | |||
Lease payments included In liablities | 189 | ||
Less than 1 year | Gross carrying amount | |||
Disclosure of detailed information about financial instruments [line items] | |||
Long-term debt | 1,343 | ||
1 to less than 2 years | |||
Disclosure of detailed information about financial instruments [line items] | |||
Lease payments included In liablities | 162 | ||
1 to less than 2 years | Gross carrying amount | |||
Disclosure of detailed information about financial instruments [line items] | |||
Long-term debt | 4,887 | ||
2 to less than 5 years | |||
Disclosure of detailed information about financial instruments [line items] | |||
Lease payments included In liablities | 397 | ||
Thereafter | |||
Disclosure of detailed information about financial instruments [line items] | |||
Lease payments included In liablities | 942 | ||
Thereafter | Gross carrying amount | |||
Disclosure of detailed information about financial instruments [line items] | |||
Long-term debt | 8,279 | ||
Liquidity risk | Less than 1 year | |||
Disclosure of detailed information about financial instruments [line items] | |||
Accounts payable | 667 | ||
Accrued liabilities | 2,346 | ||
Other long-term liabilities | 345 | ||
Liquidity risk | Less than 1 year | Gross carrying amount | |||
Disclosure of detailed information about financial instruments [line items] | |||
Long-term debt | 1,343 | ||
Interest and other financing expense | 776 | ||
Liquidity risk | 1 to less than 2 years | |||
Disclosure of detailed information about financial instruments [line items] | |||
Accounts payable | 0 | ||
Accrued liabilities | 0 | ||
Other long-term liabilities | 200 | ||
Liquidity risk | 1 to less than 2 years | Gross carrying amount | |||
Disclosure of detailed information about financial instruments [line items] | |||
Long-term debt | 4,887 | ||
Interest and other financing expense | 693 | ||
Liquidity risk | 2 to less than 5 years | |||
Disclosure of detailed information about financial instruments [line items] | |||
Accounts payable | 0 | ||
Accrued liabilities | 0 | ||
Other long-term liabilities | 435 | ||
Liquidity risk | 2 to less than 5 years | Gross carrying amount | |||
Disclosure of detailed information about financial instruments [line items] | |||
Long-term debt | 7,051 | ||
Interest and other financing expense | 1,619 | ||
Liquidity risk | Thereafter | |||
Disclosure of detailed information about financial instruments [line items] | |||
Accounts payable | 0 | ||
Accrued liabilities | 0 | ||
Other long-term liabilities | 942 | ||
Liquidity risk | Thereafter | Gross carrying amount | |||
Disclosure of detailed information about financial instruments [line items] | |||
Long-term debt | 8,279 | ||
Interest and other financing expense | $ 4,452 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020CAD ($) | |
2021 | |
Disclosure Of Commitments [Line Items] | |
Product transportation | $ 870 |
North West Redwater Partnership service toll | 163 |
Other | 25 |
2022 | |
Disclosure Of Commitments [Line Items] | |
Product transportation | 817 |
North West Redwater Partnership service toll | 160 |
Other | 21 |
2023 | |
Disclosure Of Commitments [Line Items] | |
Product transportation | 858 |
North West Redwater Partnership service toll | 160 |
Other | 21 |
2024 | |
Disclosure Of Commitments [Line Items] | |
Product transportation | 841 |
North West Redwater Partnership service toll | 156 |
Other | 22 |
2025 | |
Disclosure Of Commitments [Line Items] | |
Product transportation | 809 |
North West Redwater Partnership service toll | 150 |
Other | 22 |
Thereafter | |
Disclosure Of Commitments [Line Items] | |
Product transportation | 10,370 |
North West Redwater Partnership service toll | 2,694 |
Other | $ 16 |
Commitments for oil and gas transportation, period of agreement | 20 years |
North West Redwater Partnership | |
Disclosure Of Commitments [Line Items] | |
Percent of pro rata share of debt company has committed paying to joint venture | 25.00% |
Interest payable included in service toll | $ 1,169 |
Term of commitment to joint venture | 30 years |
Offshore vessels and equipment | 2021 | |
Disclosure Of Commitments [Line Items] | |
Offshore vessels and equipment, field equipment and power | $ 64 |
Offshore vessels and equipment | 2022 | |
Disclosure Of Commitments [Line Items] | |
Offshore vessels and equipment, field equipment and power | 9 |
Offshore vessels and equipment | 2023 | |
Disclosure Of Commitments [Line Items] | |
Offshore vessels and equipment, field equipment and power | 0 |
Offshore vessels and equipment | 2024 | |
Disclosure Of Commitments [Line Items] | |
Offshore vessels and equipment, field equipment and power | 0 |
Offshore vessels and equipment | 2025 | |
Disclosure Of Commitments [Line Items] | |
Offshore vessels and equipment, field equipment and power | 0 |
Offshore vessels and equipment | Thereafter | |
Disclosure Of Commitments [Line Items] | |
Offshore vessels and equipment, field equipment and power | 0 |
Field equipment and power | 2021 | |
Disclosure Of Commitments [Line Items] | |
Offshore vessels and equipment, field equipment and power | 28 |
Field equipment and power | 2022 | |
Disclosure Of Commitments [Line Items] | |
Offshore vessels and equipment, field equipment and power | 21 |
Field equipment and power | 2023 | |
Disclosure Of Commitments [Line Items] | |
Offshore vessels and equipment, field equipment and power | 21 |
Field equipment and power | 2024 | |
Disclosure Of Commitments [Line Items] | |
Offshore vessels and equipment, field equipment and power | 21 |
Field equipment and power | 2025 | |
Disclosure Of Commitments [Line Items] | |
Offshore vessels and equipment, field equipment and power | 21 |
Field equipment and power | Thereafter | |
Disclosure Of Commitments [Line Items] | |
Offshore vessels and equipment, field equipment and power | 246 |
Painted Pony Energy Ltd | |
Disclosure Of Commitments [Line Items] | |
Product transportation and processing obligation, unrecorded | $ 2,400 |
Supplemental Disclosure of Ca_3
Supplemental Disclosure of Cash Flow Information - Supplemental Schedule Of Cash Flow Information (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Cash Flows, Additional Disclosures [Abstract] | |||
Accounts receivable | $ 284 | $ (1,310) | $ 1,233 |
Current income tax assets (liabilities) | (295) | (164) | 471 |
Inventory | 98 | (194) | (74) |
Prepaids and other | (56) | 2 | (3) |
Other long-term assets | (117) | 117 | 0 |
Accounts payable | (147) | 39 | (7) |
Accrued liabilities | (254) | 265 | (268) |
Other long-term liabilities | (62) | (23) | (351) |
Net changes in non-cash working capital | (549) | (1,268) | 1,001 |
Net change in non-cash working capital, operating activities | (166) | (1,033) | 1,346 |
Net change in non-cash working capital, investing activities | (383) | (235) | (345) |
Exploration and evaluation assets | |||
Expenditures on exploration and evaluation assets | 36 | 73 | 282 |
Net proceeds on sale of exploration and evaluation assets | (31) | 0 | (16) |
Net expenditures on exploration and evaluation assets | 5 | 73 | 266 |
Deferred purchase consideration payable | $ 72 | $ 95 | $ 118 |
Deferred purchase consideration payable, payable period | 3 years |
Supplemental Disclosure of Ca_4
Supplemental Disclosure of Cash Flow Information - Liabilities Arising From Financing Activities (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities, beginning balance | $ 22,592 | $ 21,801 | |
Changes in liabilities arising from financing activities [abstract] | |||
Issue (repayment) of long-term debt | 719 | 1,025 | |
Settlement of Painted Pony long-term debt | 397 | 0 | $ 0 |
Proceeds on settlement of cross currency swaps | 166 | 0 | 0 |
Payment of lease liabilities | (225) | (237) | |
Lease additions | 148 | 527 | |
Non-cash changes | (285) | (524) | |
Liabilities arising from financing activities, ending balance | 23,115 | 22,592 | 21,801 |
Long-term debt | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities, beginning balance | 20,982 | 20,623 | |
Changes in liabilities arising from financing activities [abstract] | |||
Issue (repayment) of long-term debt | 719 | 1,025 | |
Non-cash changes | (248) | (666) | |
Liabilities arising from financing activities, ending balance | 21,453 | 20,982 | 20,623 |
Cash flow hedges on US dollar debt securities | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities, beginning balance | (199) | (361) | |
Changes in liabilities arising from financing activities [abstract] | |||
Issue (repayment) of long-term debt | 0 | ||
Proceeds on settlement of cross currency swaps | 166 | ||
Non-cash changes | 5 | 162 | |
Liabilities arising from financing activities, ending balance | (28) | (199) | (361) |
Lease liabilities | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities, beginning balance | 1,809 | 1,539 | |
Changes in liabilities arising from financing activities [abstract] | |||
Payment of lease liabilities | (225) | (237) | |
Lease additions | 148 | 527 | |
Non-cash changes | (42) | (20) | |
Liabilities arising from financing activities, ending balance | 1,690 | $ 1,809 | $ 1,539 |
Painted Pony Energy Ltd | |||
Changes in liabilities arising from financing activities [abstract] | |||
Settlement of Painted Pony long-term debt | (397) | ||
Assumption of Painted Pony long-term debt | 397 | ||
Painted Pony Energy Ltd | Long-term debt | |||
Changes in liabilities arising from financing activities [abstract] | |||
Settlement of Painted Pony long-term debt | (397) | ||
Assumption of Painted Pony long-term debt | $ 397 |
Segmented Information - Narrati
Segmented Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Operating Segments [Abstract] | |
Number of geographic segments | 3 |
Segmented Information - Operati
Segmented Information - Operating Segments Earnings (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue [abstract] | |||
Product sales | $ 17,491 | $ 24,394 | $ 22,282 |
Less: royalties | (598) | (1,523) | (1,255) |
Revenue | 16,893 | 22,871 | 21,027 |
Expenses | |||
Production | 6,280 | 6,277 | 6,464 |
Transportation, blending and feedstock | 4,498 | 4,699 | 4,189 |
Depletion, depreciation and amortization | 6,046 | 5,546 | 5,161 |
Asset retirement obligation accretion | 205 | 190 | 186 |
Realized risk management (commodity derivatives) | 32 | 64 | (99) |
Gain on acquisition, disposition and revaluation | (217) | 0 | (452) |
Loss from investments | 171 | 293 | 346 |
Total expenses | 17,766 | 17,915 | 17,505 |
Earnings (loss) before taxes | (873) | 4,956 | 3,522 |
Administration | 391 | 344 | 325 |
Share-based compensation | (82) | 223 | (146) |
Interest and other financing expense | 756 | 836 | 739 |
Net unrealized risk management (gain) loss | (39) | 13 | (35) |
Foreign exchange (gain) loss | (275) | (570) | 827 |
Current income tax (recovery) expense | (257) | 434 | 374 |
Deferred income tax expense (recovery) | (181) | (894) | 557 |
Net earnings (loss) | (435) | 5,416 | 2,591 |
Inter–segment elimination and other | |||
Revenue [abstract] | |||
Less: royalties | 0 | 0 | 0 |
Revenue | 105 | 496 | 558 |
Expenses | |||
Production | 48 | 56 | 58 |
Transportation, blending and feedstock | 27 | 437 | 491 |
Depletion, depreciation and amortization | 0 | 0 | 0 |
Asset retirement obligation accretion | 0 | 0 | 0 |
Realized risk management (commodity derivatives) | 0 | 0 | 0 |
Gain on acquisition, disposition and revaluation | 0 | 0 | 0 |
Loss from investments | 0 | 0 | 0 |
Total expenses | 75 | 493 | 549 |
Earnings (loss) before taxes | 30 | 3 | 9 |
Inter–segment elimination and other | Other Income And Revenue | |||
Revenue [abstract] | |||
Revenue | 31 | 0 | 0 |
Inter–segment elimination and other | Crude Oil, Natural Gas Liquids, Natural Gas, Other Income And Revenue | |||
Revenue [abstract] | |||
Revenue | 105 | 496 | 558 |
Non-segmented | |||
Expenses | |||
Loss from investments | 171 | 6 | 341 |
Total expenses | 974 | 867 | 1,962 |
Administration | 391 | 344 | 325 |
Share-based compensation | (82) | 223 | (146) |
Interest and other financing expense | 756 | 836 | 739 |
Net unrealized risk management (gain) loss | 13 | 28 | (124) |
Foreign exchange (gain) loss | (275) | (570) | 827 |
Total Segments | |||
Revenue [abstract] | |||
Less: royalties | (598) | (1,523) | (1,255) |
Revenue | 16,893 | 22,871 | 21,027 |
Expenses | |||
Production | 6,280 | 6,277 | 6,464 |
Transportation, blending and feedstock | 4,498 | 4,699 | 4,189 |
Depletion, depreciation and amortization | 6,046 | 5,546 | 5,161 |
Asset retirement obligation accretion | 205 | 190 | 186 |
Realized risk management (commodity derivatives) | (20) | 49 | (10) |
Gain on acquisition, disposition and revaluation | (217) | 0 | (452) |
Loss from investments | 0 | 287 | 5 |
Total expenses | 16,792 | 17,048 | 15,543 |
Earnings (loss) before taxes | 101 | 5,823 | 5,484 |
Total Segments | Other Income And Revenue | |||
Revenue [abstract] | |||
Revenue | 434 | 25 | 0 |
Total Segments | Crude Oil, Natural Gas Liquids, Natural Gas, Other Income And Revenue | |||
Revenue [abstract] | |||
Revenue | 17,491 | 24,394 | 22,282 |
North America | Operating segments | |||
Revenue [abstract] | |||
Less: royalties | (503) | (998) | (723) |
Revenue | 8,260 | 9,837 | 7,787 |
Expenses | |||
Production | 2,510 | 2,425 | 2,405 |
Transportation, blending and feedstock | 3,393 | 2,935 | 2,587 |
Depletion, depreciation and amortization | 3,780 | 3,326 | 3,132 |
Asset retirement obligation accretion | 97 | 95 | 87 |
Realized risk management (commodity derivatives) | (20) | 49 | (10) |
Gain on acquisition, disposition and revaluation | (217) | 0 | (277) |
Loss from investments | 0 | 0 | 0 |
Total expenses | 9,543 | 8,830 | 7,924 |
Earnings (loss) before taxes | (1,283) | 1,007 | (137) |
North America | Operating segments | Other Income And Revenue | |||
Revenue [abstract] | |||
Revenue | 41 | 6 | 0 |
North America | Operating segments | Crude Oil, Natural Gas Liquids, Natural Gas, Other Income And Revenue | |||
Revenue [abstract] | |||
Revenue | 8,763 | 10,835 | 8,510 |
North Sea | Operating segments | |||
Revenue [abstract] | |||
Less: royalties | (1) | (2) | (2) |
Revenue | 431 | 920 | 891 |
Expenses | |||
Production | 321 | 391 | 405 |
Transportation, blending and feedstock | 15 | 19 | 22 |
Depletion, depreciation and amortization | 277 | 308 | 257 |
Asset retirement obligation accretion | 30 | 28 | 29 |
Realized risk management (commodity derivatives) | 0 | 0 | 0 |
Gain on acquisition, disposition and revaluation | 0 | 0 | (139) |
Loss from investments | 0 | 0 | 0 |
Total expenses | 643 | 746 | 574 |
Earnings (loss) before taxes | (212) | 174 | 317 |
North Sea | Operating segments | Other Income And Revenue | |||
Revenue [abstract] | |||
Revenue | 3 | 5 | 0 |
North Sea | Operating segments | Crude Oil, Natural Gas Liquids, Natural Gas, Other Income And Revenue | |||
Revenue [abstract] | |||
Revenue | 432 | 922 | 893 |
Offshore Africa | Operating segments | |||
Revenue [abstract] | |||
Less: royalties | (16) | (42) | (51) |
Revenue | 362 | 665 | 647 |
Expenses | |||
Production | 103 | 109 | 208 |
Transportation, blending and feedstock | 1 | 2 | 2 |
Depletion, depreciation and amortization | 190 | 242 | 201 |
Asset retirement obligation accretion | 6 | 6 | 9 |
Realized risk management (commodity derivatives) | 0 | 0 | 0 |
Gain on acquisition, disposition and revaluation | 0 | 0 | (36) |
Loss from investments | 0 | 0 | 0 |
Total expenses | 300 | 359 | 384 |
Earnings (loss) before taxes | 62 | 306 | 263 |
Offshore Africa | Operating segments | Other Income And Revenue | |||
Revenue [abstract] | |||
Revenue | 18 | 8 | 0 |
Offshore Africa | Operating segments | Crude Oil, Natural Gas Liquids, Natural Gas, Other Income And Revenue | |||
Revenue [abstract] | |||
Revenue | 378 | 707 | 698 |
Oil Sands Mining and Upgrading | Operating segments | |||
Revenue [abstract] | |||
Less: royalties | (78) | (481) | (479) |
Revenue | 7,450 | 10,865 | 11,042 |
Expenses | |||
Production | 3,114 | 3,276 | 3,367 |
Transportation, blending and feedstock | 881 | 1,306 | 1,087 |
Depletion, depreciation and amortization | 1,784 | 1,656 | 1,557 |
Asset retirement obligation accretion | 72 | 61 | 61 |
Realized risk management (commodity derivatives) | 0 | 0 | 0 |
Gain on acquisition, disposition and revaluation | 0 | 0 | 0 |
Loss from investments | 0 | 0 | 0 |
Total expenses | 5,851 | 6,299 | 6,072 |
Earnings (loss) before taxes | 1,599 | 4,566 | 4,970 |
Oil Sands Mining and Upgrading | Operating segments | Other Income And Revenue | |||
Revenue [abstract] | |||
Revenue | 139 | 6 | 0 |
Oil Sands Mining and Upgrading | Operating segments | Crude Oil, Natural Gas Liquids, Natural Gas, Other Income And Revenue | |||
Revenue [abstract] | |||
Revenue | 7,528 | 11,346 | 11,521 |
Midstream and Refining | Operating segments | |||
Revenue [abstract] | |||
Less: royalties | 0 | 0 | 0 |
Revenue | 285 | 88 | 102 |
Expenses | |||
Production | 184 | 20 | 21 |
Transportation, blending and feedstock | 181 | 0 | 0 |
Depletion, depreciation and amortization | 15 | 14 | 14 |
Asset retirement obligation accretion | 0 | 0 | 0 |
Realized risk management (commodity derivatives) | 0 | 0 | 0 |
Gain on acquisition, disposition and revaluation | 0 | 0 | 0 |
Loss from investments | 0 | 287 | 5 |
Total expenses | 380 | 321 | 40 |
Earnings (loss) before taxes | (95) | (233) | 62 |
Midstream and Refining | Operating segments | Other Income And Revenue | |||
Revenue [abstract] | |||
Revenue | 202 | 0 | 0 |
Midstream and Refining | Operating segments | Crude Oil, Natural Gas Liquids, Natural Gas, Other Income And Revenue | |||
Revenue [abstract] | |||
Revenue | 285 | 88 | 102 |
Crude Oil and NGLs | Inter–segment elimination and other | |||
Revenue [abstract] | |||
Product sales | (108) | 351 | 410 |
Crude Oil and NGLs | Total Segments | |||
Revenue [abstract] | |||
Product sales | 15,579 | 22,950 | 20,668 |
Crude Oil and NGLs | North America | Operating segments | |||
Revenue [abstract] | |||
Product sales | 7,480 | 9,679 | 7,254 |
Crude Oil and NGLs | North Sea | Operating segments | |||
Revenue [abstract] | |||
Product sales | 417 | 860 | 753 |
Crude Oil and NGLs | Offshore Africa | Operating segments | |||
Revenue [abstract] | |||
Product sales | 318 | 632 | 628 |
Crude Oil and NGLs | Oil Sands Mining and Upgrading | Operating segments | |||
Revenue [abstract] | |||
Product sales | 7,389 | 11,340 | 11,521 |
Crude Oil and NGLs | Midstream and Refining | Operating segments | |||
Revenue [abstract] | |||
Product sales | 83 | 88 | 102 |
Natural gas | Inter–segment elimination and other | |||
Revenue [abstract] | |||
Product sales | 182 | 145 | 148 |
Natural gas | Total Segments | |||
Revenue [abstract] | |||
Product sales | 1,478 | 1,419 | 1,614 |
Natural gas | North America | Operating segments | |||
Revenue [abstract] | |||
Product sales | 1,242 | 1,150 | 1,256 |
Natural gas | North Sea | Operating segments | |||
Revenue [abstract] | |||
Product sales | 12 | 57 | 140 |
Natural gas | Offshore Africa | Operating segments | |||
Revenue [abstract] | |||
Product sales | 42 | 67 | 70 |
Natural gas | Oil Sands Mining and Upgrading | Operating segments | |||
Revenue [abstract] | |||
Product sales | 0 | 0 | 0 |
Natural gas | Midstream and Refining | Operating segments | |||
Revenue [abstract] | |||
Product sales | 0 | $ 0 | $ 0 |
Keystone XL Pipeline Project | Inter–segment elimination and other | |||
Expenses | |||
Transportation, blending and feedstock | $ 143 |
Segmented Information - Capital
Segmented Information - Capital Expenditures (Details) - CAD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Oct. 06, 2020 | Jun. 27, 2019 | |
Exploration and evaluation assets | ||||
Net expenditures | $ 5 | $ 164 | ||
Non-cash and fair value changes | (147) | (221) | ||
Capitalized costs | (142) | (57) | ||
Property, plant and equipment | ||||
Net expenditures | 2,555 | 6,661 | ||
Non-cash and fair value changes | (271) | (64) | ||
Capitalized costs | 2,284 | 6,597 | ||
Head office | ||||
Property, plant and equipment | ||||
Net expenditures | 19 | 34 | ||
Non-cash and fair value changes | 0 | (3) | ||
Capitalized costs | 19 | 31 | ||
North America | Operating segments | ||||
Exploration and evaluation assets | ||||
Net expenditures | (7) | 129 | ||
Non-cash and fair value changes | (150) | (219) | ||
Capitalized costs | (157) | (90) | ||
Property, plant and equipment | ||||
Net expenditures | 999 | 4,702 | ||
Non-cash and fair value changes | 371 | 918 | ||
Capitalized costs | 1,370 | 5,620 | ||
North Sea | Operating segments | ||||
Property, plant and equipment | ||||
Net expenditures | 122 | 196 | ||
Non-cash and fair value changes | (21) | 153 | ||
Capitalized costs | 101 | 349 | ||
Offshore Africa | Operating segments | ||||
Exploration and evaluation assets | ||||
Net expenditures | 12 | 35 | ||
Non-cash and fair value changes | 3 | (2) | ||
Capitalized costs | 15 | 33 | ||
Property, plant and equipment | ||||
Net expenditures | 87 | 194 | ||
Non-cash and fair value changes | 7 | (1,476) | ||
Capitalized costs | 94 | (1,282) | ||
Exploration and Production | Operating segments | ||||
Property, plant and equipment | ||||
Net expenditures | 1,208 | 5,092 | ||
Non-cash and fair value changes | 357 | (405) | ||
Capitalized costs | 1,565 | 4,687 | ||
Oil Sands Mining and Upgrading | Operating segments | ||||
Property, plant and equipment | ||||
Net expenditures | 1,323 | 1,525 | ||
Non-cash and fair value changes | (629) | 344 | ||
Capitalized costs | 694 | 1,869 | ||
Midstream and Refining | Operating segments | ||||
Property, plant and equipment | ||||
Net expenditures | 5 | 10 | ||
Non-cash and fair value changes | 1 | 0 | ||
Capitalized costs | $ 6 | 10 | ||
Devon | ||||
Property, plant and equipment | ||||
Total purchase consideration | 3,412 | $ 3,412 | ||
Devon | North America | Operating segments | ||||
Exploration and evaluation assets | ||||
Net expenditures | 3,126 | |||
Painted Pony Energy Ltd | ||||
Property, plant and equipment | ||||
Total purchase consideration | $ 111 | |||
Exploration and evaluation assets | Devon | North America | Operating segments | ||||
Exploration and evaluation assets | ||||
Net expenditures | 91 | |||
GABON | Offshore Africa | Operating segments | ||||
Property, plant and equipment | ||||
Disposals, property, plant and equipment | $ 1,515 |
Segmented Information - Segment
Segmented Information - Segmented Assets (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of operating segments [line items] | ||
Assets | $ 75,276 | $ 78,121 |
Head office | ||
Disclosure of operating segments [line items] | ||
Assets | 202 | 227 |
North America | Operating segments | ||
Disclosure of operating segments [line items] | ||
Assets | 29,094 | 30,963 |
North Sea | Operating segments | ||
Disclosure of operating segments [line items] | ||
Assets | 1,624 | 1,948 |
Offshore Africa | Operating segments | ||
Disclosure of operating segments [line items] | ||
Assets | 1,407 | 1,529 |
Other | Operating segments | ||
Disclosure of operating segments [line items] | ||
Assets | 81 | 30 |
Oil Sands Mining and Upgrading | Operating segments | ||
Disclosure of operating segments [line items] | ||
Assets | 41,567 | 42,006 |
Midstream and Refining | Operating segments | ||
Disclosure of operating segments [line items] | ||
Assets | $ 1,301 | $ 1,418 |
Remuneration of Directors and_3
Remuneration of Directors and Senior Management (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Non-management directors | |||
Disclosure of transactions between related parties [line items] | |||
Fees earned and salary | $ 2 | $ 2 | $ 2 |
Senior management | |||
Disclosure of transactions between related parties [line items] | |||
Fees earned and salary | 2 | 2 | 2 |
Common stock option based awards | 9 | 8 | 8 |
Annual incentive plans | 4 | 6 | 4 |
Long-term incentive plans | 14 | 20 | 15 |
Total | $ 29 | $ 36 | $ 29 |
Supplementary Oil And Gas Inf_2
Supplementary Oil And Gas Information (Unaudited) - Twelve Month Average Benchmark Prices (Details) | 12 Months Ended | |
Dec. 31, 2020$ / MMBTU$ / bbl$ / bbl$ / MMBTU | Dec. 31, 2019$ / MMBTU$ / bbl$ / bbl$ / MMBTU | |
USD | ||
Oil And Gas, Average Sale Price And Production Cost Per Unit1 [Line Items] | ||
Average foreign exchange rate | 0.7462 | 0.7520 |
Crude Oil and NGLs | WTI Cushing Oklahoma | ||
Oil And Gas, Average Sale Price And Production Cost Per Unit1 [Line Items] | ||
Twelve month average benchmark price dollars per bbl | 39.77 | 55.73 |
Crude Oil and NGLs | WCS | ||
Oil And Gas, Average Sale Price And Production Cost Per Unit1 [Line Items] | ||
Twelve month average benchmark price dollars per bbl | 34.84 | 57.29 |
Crude Oil and NGLs | Canadian Light Sweet | ||
Oil And Gas, Average Sale Price And Production Cost Per Unit1 [Line Items] | ||
Twelve month average benchmark price dollars per bbl | 45.02 | 66.77 |
Crude Oil and NGLs | Cromer LSB | ||
Oil And Gas, Average Sale Price And Production Cost Per Unit1 [Line Items] | ||
Twelve month average benchmark price dollars per bbl | 45.55 | 66.85 |
Crude Oil and NGLs | North Sea Brent | ||
Oil And Gas, Average Sale Price And Production Cost Per Unit1 [Line Items] | ||
Twelve month average benchmark price dollars per bbl | 43.43 | 62.54 |
Crude Oil and NGLs | Edmonton C5+ | ||
Oil And Gas, Average Sale Price And Production Cost Per Unit1 [Line Items] | ||
Twelve month average benchmark price dollars per bbl | 50.41 | 68.71 |
Natural Gas | Henry Hub Louisiana | ||
Oil And Gas, Average Sale Price And Production Cost Per Unit1 [Line Items] | ||
Twelve month average benchmark price dollars per MMBtu | $ / MMBTU | 2.16 | 2.54 |
Natural Gas | AECO | ||
Oil And Gas, Average Sale Price And Production Cost Per Unit1 [Line Items] | ||
Twelve month average benchmark price dollars per MMBtu | $ / MMBTU | 2.17 | 2.02 |
Natural Gas | BC Westcoast Station 2 | ||
Oil And Gas, Average Sale Price And Production Cost Per Unit1 [Line Items] | ||
Twelve month average benchmark price dollars per MMBtu | $ / MMBTU | 2.10 | 1.13 |
Supplementary Oil And Gas Inf_3
Supplementary Oil And Gas Information (Unaudited) - Proved and Proved Developed Oil and Natural Gas Liquids, Net of Royalties (Details) - MMBbls | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Crude Oil, Synthetic Crude Oil, Bitumen, Natural Gas, Natural Gas Liquids | ||||
Proved Developed And Undeveloped Reserves [Roll Forward] | ||||
Proved reserves, net, beginning balance | 8,544 | 7,919 | 7,091 | |
Extensions and discoveries (in MMbbl) | 726 | 364 | 912 | |
Improved recovery (in MMbbl) | 58 | 181 | 64 | |
Purchases of reserves in place (in MMbbl) | 28 | 668 | 16 | |
Sales of reserves in place (in MMbbl) | 0 | 0 | (4) | |
Production (in MMbbl) | (320) | (285) | (274) | |
Economic revisions due to prices (in MMbbl) | 805 | (285) | (51) | |
Revisions of prior estimates (in MMbbl) | 103 | (19) | 165 | |
Proved reserves, net, ending balance | 9,943 | 8,544 | 7,919 | |
Net proved developed reserves (in MMbbl) | 7,751 | 6,543 | 6,571 | 5,825 |
North America | Synthetic Crude Oil | ||||
Proved Developed And Undeveloped Reserves [Roll Forward] | ||||
Proved reserves, net, beginning balance | 5,554 | 5,661 | 4,956 | |
Extensions and discoveries (in MMbbl) | 708 | 334 | 744 | |
Improved recovery (in MMbbl) | 0 | 0 | 0 | |
Purchases of reserves in place (in MMbbl) | 0 | 0 | 0 | |
Sales of reserves in place (in MMbbl) | 0 | 0 | 0 | |
Production (in MMbbl) | (151) | (137) | (148) | |
Economic revisions due to prices (in MMbbl) | 701 | (288) | 0 | |
Revisions of prior estimates (in MMbbl) | 36 | (17) | 109 | |
Proved reserves, net, ending balance | 6,847 | 5,554 | 5,661 | |
Net proved developed reserves (in MMbbl) | 6,770 | 5,452 | 5,661 | 4,967 |
North America | Bitumen | ||||
Proved Developed And Undeveloped Reserves [Roll Forward] | ||||
Proved reserves, net, beginning balance | 2,216 | 1,469 | 1,365 | |
Extensions and discoveries (in MMbbl) | 8 | 18 | 151 | |
Improved recovery (in MMbbl) | 49 | 169 | 10 | |
Purchases of reserves in place (in MMbbl) | 0 | 666 | 2 | |
Sales of reserves in place (in MMbbl) | 0 | 0 | (4) | |
Production (in MMbbl) | (109) | (81) | (64) | |
Economic revisions due to prices (in MMbbl) | 207 | 3 | (45) | |
Revisions of prior estimates (in MMbbl) | 41 | (27) | 54 | |
Proved reserves, net, ending balance | 2,413 | 2,216 | 1,469 | |
Net proved developed reserves (in MMbbl) | 628 | 661 | 461 | 410 |
North America | Crude Oil and NGLs | ||||
Proved Developed And Undeveloped Reserves [Roll Forward] | ||||
Proved reserves, net, beginning balance | 598 | 604 | 594 | |
Extensions and discoveries (in MMbbl) | 10 | 12 | 17 | |
Improved recovery (in MMbbl) | 9 | 12 | 50 | |
Purchases of reserves in place (in MMbbl) | 28 | 2 | 7 | |
Sales of reserves in place (in MMbbl) | 0 | 0 | 0 | |
Production (in MMbbl) | (45) | (49) | (47) | |
Economic revisions due to prices (in MMbbl) | (94) | 0 | (18) | |
Revisions of prior estimates (in MMbbl) | 20 | 17 | 1 | |
Proved reserves, net, ending balance | 525 | 598 | 604 | |
Net proved developed reserves (in MMbbl) | 285 | 354 | 378 | 399 |
North America | Crude Oil, Synthetic Crude Oil, Bitumen, Natural Gas, Natural Gas Liquids | ||||
Proved Developed And Undeveloped Reserves [Roll Forward] | ||||
Proved reserves, net, beginning balance | 8,368 | 7,734 | 6,915 | |
Extensions and discoveries (in MMbbl) | 726 | 364 | 912 | |
Improved recovery (in MMbbl) | 58 | 181 | 60 | |
Purchases of reserves in place (in MMbbl) | 28 | 668 | 9 | |
Sales of reserves in place (in MMbbl) | 0 | 0 | (4) | |
Production (in MMbbl) | (305) | (267) | (259) | |
Economic revisions due to prices (in MMbbl) | 814 | (285) | (63) | |
Revisions of prior estimates (in MMbbl) | 97 | (28) | 164 | |
Proved reserves, net, ending balance | 9,785 | 8,368 | 7,734 | |
Net proved developed reserves (in MMbbl) | 7,682 | 6,466 | 6,500 | 5,776 |
North Sea | Crude Oil and NGLs | ||||
Proved Developed And Undeveloped Reserves [Roll Forward] | ||||
Proved reserves, net, beginning balance | 105 | 114 | 107 | |
Extensions and discoveries (in MMbbl) | 0 | 0 | 0 | |
Improved recovery (in MMbbl) | 0 | 0 | 1 | |
Purchases of reserves in place (in MMbbl) | 0 | 0 | 7 | |
Sales of reserves in place (in MMbbl) | 0 | 0 | 0 | |
Production (in MMbbl) | (8) | (10) | (9) | |
Economic revisions due to prices (in MMbbl) | (12) | (1) | 11 | |
Revisions of prior estimates (in MMbbl) | 3 | 3 | (3) | |
Proved reserves, net, ending balance | 87 | 105 | 114 | |
Net proved developed reserves (in MMbbl) | 32 | 38 | 37 | 28 |
Offshore Africa | Crude Oil and NGLs | ||||
Proved Developed And Undeveloped Reserves [Roll Forward] | ||||
Proved reserves, net, beginning balance | 70 | 71 | 69 | |
Extensions and discoveries (in MMbbl) | 0 | 0 | 0 | |
Improved recovery (in MMbbl) | 0 | 0 | 3 | |
Purchases of reserves in place (in MMbbl) | 0 | 0 | 0 | |
Sales of reserves in place (in MMbbl) | 0 | 0 | 0 | |
Production (in MMbbl) | (6) | (7) | (6) | |
Economic revisions due to prices (in MMbbl) | 3 | 1 | 1 | |
Revisions of prior estimates (in MMbbl) | 4 | 6 | 4 | |
Proved reserves, net, ending balance | 71 | 70 | 71 | |
Net proved developed reserves (in MMbbl) | 37 | 39 | 34 | 21 |
Supplementary Oil And Gas Inf_4
Supplementary Oil And Gas Information (Unaudited) - Oil and Natural Gas Liquids Narrative (Details) - Crude Oil, Synthetic Crude Oil, Bitumen, Natural Gas, Natural Gas Liquids - MMBbls | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reserve Quantities [Line Items] | |||
Change in proved developed and undeveloped reserves, net (in MMbbl) | 1,400 | 625 | 828 |
Extensions and discoveries (in MMbbl) | 726 | 364 | 912 |
Improved recovery (in MMbbl) | 58 | 181 | 64 |
Purchases of reserves in place (in MMbbl) | 28 | 668 | 16 |
Sales of reserves in place (in MMbbl) | 0 | 0 | 4 |
Production (in MMbbl) | 320 | 285 | 274 |
Economic revisions due to prices (in MMbbl) | 805 | (285) | (51) |
Revisions of prior estimates (in MMbbl) | 103 | (19) | 165 |
Supplementary Oil And Gas Inf_5
Supplementary Oil And Gas Information (Unaudited) - Proved and Proved Developed Natural Gas Reserve Quantities (Details) - Natural Gas - Bcf | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Proved Developed And Undeveloped Reserves [Roll Forward] | ||||
Proved reserves, net, beginning balance | 4,782 | 4,354 | 5,240 | |
Extensions and discoveries (in Bcf) | 173 | 106 | 90 | |
Improved recovery (in Bcf) | 159 | 202 | 414 | |
Purchases of reserves in place (in Bcf) | 2,615 | 34 | 67 | |
Sales of reserves in place (in Bcf) | (4) | 0 | (3) | |
Production (in Bcf) | (524) | (528) | (542) | |
Economic revisions due to prices (in Bcf) | 100 | 248 | (748) | |
Revisions of prior estimates (in Bcf) | 399 | 367 | (164) | |
Proved reserves, net, ending balance | 7,701 | 4,782 | 4,354 | |
Net proved developed reserves (in Bcf) | 3,144 | 2,381 | 2,417 | 3,112 |
North America | ||||
Proved Developed And Undeveloped Reserves [Roll Forward] | ||||
Proved reserves, net, beginning balance | 4,728 | 4,306 | 5,199 | |
Extensions and discoveries (in Bcf) | 173 | 106 | 90 | |
Improved recovery (in Bcf) | 159 | 202 | 414 | |
Purchases of reserves in place (in Bcf) | 2,614 | 34 | 67 | |
Sales of reserves in place (in Bcf) | (4) | 0 | (3) | |
Production (in Bcf) | (515) | (511) | (523) | |
Economic revisions due to prices (in Bcf) | 97 | 246 | (746) | |
Revisions of prior estimates (in Bcf) | 402 | 346 | (192) | |
Proved reserves, net, ending balance | 7,655 | 4,728 | 4,306 | |
Net proved developed reserves (in Bcf) | 3,116 | 2,342 | 2,382 | 3,081 |
North Sea | ||||
Proved Developed And Undeveloped Reserves [Roll Forward] | ||||
Proved reserves, net, beginning balance | 16 | 27 | 25 | |
Extensions and discoveries (in Bcf) | 0 | 0 | 0 | |
Improved recovery (in Bcf) | 0 | 0 | 0 | |
Purchases of reserves in place (in Bcf) | 0 | 0 | 0 | |
Sales of reserves in place (in Bcf) | 0 | 0 | 0 | |
Production (in Bcf) | (4) | (9) | (11) | |
Economic revisions due to prices (in Bcf) | 0 | 0 | 0 | |
Revisions of prior estimates (in Bcf) | 0 | (2) | 13 | |
Proved reserves, net, ending balance | 12 | 16 | 27 | |
Net proved developed reserves (in Bcf) | 6 | 11 | 23 | 22 |
Offshore Africa | ||||
Proved Developed And Undeveloped Reserves [Roll Forward] | ||||
Proved reserves, net, beginning balance | 38 | 21 | 16 | |
Extensions and discoveries (in Bcf) | 0 | 0 | 0 | |
Improved recovery (in Bcf) | 0 | 0 | 0 | |
Purchases of reserves in place (in Bcf) | 0 | 0 | 0 | |
Sales of reserves in place (in Bcf) | 0 | 0 | 0 | |
Production (in Bcf) | (5) | (8) | (8) | |
Economic revisions due to prices (in Bcf) | 4 | 2 | (2) | |
Revisions of prior estimates (in Bcf) | (3) | 23 | 15 | |
Proved reserves, net, ending balance | 34 | 38 | 21 | |
Net proved developed reserves (in Bcf) | 22 | 28 | 12 | 9 |
Supplementary Oil And Gas Inf_6
Supplementary Oil And Gas Information (Unaudited) - Natural Gas Narrative (Details) - Natural Gas - Bcf | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reserve Quantities [Line Items] | |||
Change in proved developed and undeveloped reserves, net (in MMbbl) | 2,919 | 428 | 886 |
Extensions and discoveries (in MMbbl) | 173 | 106 | 90 |
Improved recovery (in MMbbl) | 159 | 202 | 414 |
Purchases of reserves in place (in MMbbl) | 2,615 | 34 | 67 |
Sales of reserves in place (in Bcf) | 4 | 0 | 3 |
Production (in Bcf) | 524 | 528 | 542 |
Economic revisions due to prices (in Bcf) | 100 | 248 | (748) |
Revisions of prior estimates (in Bcf) | 399 | 367 | (164) |
Supplementary Oil And Gas Inf_7
Supplementary Oil And Gas Information (Unaudited) - Capitalized Costs Related to Crude Oil and Natural Gas Activities (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Capitalized Costs Relating To Oil And Gas Producing Activities, By Geographic Area1 [Line Items] | |||
Capitalized costs, proved properties | $ 130,953 | $ 128,872 | $ 122,946 |
Capitalized costs, unproved properties | 2,436 | 2,579 | 2,637 |
Capitalized costs, gross | 133,389 | 131,451 | 125,583 |
Net capitalized costs | 67,784 | 70,203 | 66,783 |
Oil and gas assets | |||
Capitalized Costs Relating To Oil And Gas Producing Activities, By Geographic Area1 [Line Items] | |||
Less: accumulated depletion and depreciation | (65,605) | (61,248) | (58,800) |
North America | |||
Capitalized Costs Relating To Oil And Gas Producing Activities, By Geographic Area1 [Line Items] | |||
Capitalized costs, proved properties | 119,707 | 117,643 | 110,154 |
Capitalized costs, unproved properties | 2,353 | 2,510 | 2,600 |
Capitalized costs, gross | 122,060 | 120,153 | 112,754 |
Net capitalized costs | 65,130 | 67,329 | 63,892 |
North America | Oil and gas assets | |||
Capitalized Costs Relating To Oil And Gas Producing Activities, By Geographic Area1 [Line Items] | |||
Less: accumulated depletion and depreciation | (56,930) | (52,824) | (48,862) |
North Sea | |||
Capitalized Costs Relating To Oil And Gas Producing Activities, By Geographic Area1 [Line Items] | |||
Capitalized costs, proved properties | 7,283 | 7,296 | 7,321 |
Capitalized costs, unproved properties | 0 | 0 | 0 |
Capitalized costs, gross | 7,283 | 7,296 | 7,321 |
Net capitalized costs | 1,430 | 1,584 | 1,586 |
North Sea | Oil and gas assets | |||
Capitalized Costs Relating To Oil And Gas Producing Activities, By Geographic Area1 [Line Items] | |||
Less: accumulated depletion and depreciation | (5,853) | (5,712) | (5,735) |
Offshore Africa | |||
Capitalized Costs Relating To Oil And Gas Producing Activities, By Geographic Area1 [Line Items] | |||
Capitalized costs, proved properties | 3,963 | 3,933 | 5,471 |
Capitalized costs, unproved properties | 83 | 69 | 37 |
Capitalized costs, gross | 4,046 | 4,002 | 5,508 |
Net capitalized costs | 1,224 | 1,290 | 1,305 |
Offshore Africa | Oil and gas assets | |||
Capitalized Costs Relating To Oil And Gas Producing Activities, By Geographic Area1 [Line Items] | |||
Less: accumulated depletion and depreciation | $ (2,822) | $ (2,712) | $ (4,203) |
Supplementary Oil And Gas Inf_8
Supplementary Oil And Gas Information (Unaudited) - Costs Incurred in Crude Oil and Natural Gas Activities (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Costs Incurred In Oil And Gas Property Acquisition, Exploration, And Development Activities1 [Line Items] | |||
Property acquisitions, proved | $ 750 | $ 3,405 | $ 341 |
Property acquisitions, unproved | 15 | 91 | 251 |
Exploration | 37 | 71 | 151 |
Development | 2,536 | 5,269 | 3,567 |
Costs incurred | 3,338 | 8,836 | 4,310 |
North America | |||
Costs Incurred In Oil And Gas Property Acquisition, Exploration, And Development Activities1 [Line Items] | |||
Property acquisitions, proved | 750 | 3,405 | 214 |
Property acquisitions, unproved | 15 | 91 | 340 |
Exploration | 22 | 38 | 116 |
Development | 2,338 | 4,687 | 3,245 |
Costs incurred | 3,125 | 8,221 | 3,915 |
North Sea | |||
Costs Incurred In Oil And Gas Property Acquisition, Exploration, And Development Activities1 [Line Items] | |||
Property acquisitions, proved | 0 | 0 | 127 |
Property acquisitions, unproved | 0 | 0 | 0 |
Exploration | 0 | 0 | 0 |
Development | 104 | 349 | 110 |
Costs incurred | 104 | 349 | 237 |
Offshore Africa | |||
Costs Incurred In Oil And Gas Property Acquisition, Exploration, And Development Activities1 [Line Items] | |||
Property acquisitions, proved | 0 | 0 | 0 |
Property acquisitions, unproved | 0 | 0 | (89) |
Exploration | 15 | 33 | 35 |
Development | 94 | 233 | 212 |
Costs incurred | $ 109 | $ 266 | $ 158 |
Supplementary Oil And Gas Inf_9
Supplementary Oil And Gas Information (Unaudited) - Results of Operations from Crude Oil and Natural Gas Producing Activities (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplementary Oil & Gas Information [Line Items] | |||
Crude oil and natural gas revenue, net of royalties, blending and feedstock costs | $ 16,893 | $ 22,871 | $ 21,027 |
Production | (6,280) | (6,277) | (6,464) |
Transportation | (4,498) | (4,699) | (4,189) |
Depletion, depreciation and amortization | (6,046) | (5,546) | (5,161) |
Asset retirement obligation accretion | (205) | (190) | (186) |
Income tax | 257 | (434) | (374) |
Oil And Gas | |||
Supplementary Oil & Gas Information [Line Items] | |||
Crude oil and natural gas revenue, net of royalties, blending and feedstock costs | 13,306 | 18,944 | 17,603 |
Production | (6,048) | (6,201) | (6,385) |
Transportation | (1,274) | (989) | (953) |
Depletion, depreciation and amortization | (6,031) | (5,532) | (5,147) |
Asset retirement obligation accretion | (205) | (190) | (186) |
Petroleum revenue tax | 31 | 88 | 12 |
Income tax | 82 | (1,652) | (1,350) |
Results of operations | (139) | 4,468 | 3,594 |
Oil And Gas | North America | |||
Supplementary Oil & Gas Information [Line Items] | |||
Crude oil and natural gas revenue, net of royalties, blending and feedstock costs | 12,520 | 17,348 | 16,065 |
Production | (5,624) | (5,701) | (5,772) |
Transportation | (1,258) | (968) | (929) |
Depletion, depreciation and amortization | (5,564) | (4,982) | (4,689) |
Asset retirement obligation accretion | (169) | (156) | (148) |
Petroleum revenue tax | 0 | 0 | 0 |
Income tax | 23 | (1,468) | (1,223) |
Results of operations | (72) | 4,073 | 3,304 |
Oil And Gas | North Sea | |||
Supplementary Oil & Gas Information [Line Items] | |||
Crude oil and natural gas revenue, net of royalties, blending and feedstock costs | 432 | 920 | 891 |
Production | (321) | (391) | (405) |
Transportation | (15) | (19) | (22) |
Depletion, depreciation and amortization | (277) | (308) | (257) |
Asset retirement obligation accretion | (30) | (28) | (29) |
Petroleum revenue tax | 31 | 88 | 12 |
Income tax | 72 | (105) | (76) |
Results of operations | (108) | 157 | 114 |
Oil And Gas | Offshore Africa | |||
Supplementary Oil & Gas Information [Line Items] | |||
Crude oil and natural gas revenue, net of royalties, blending and feedstock costs | 354 | 676 | 647 |
Production | (103) | (109) | (208) |
Transportation | (1) | (2) | (2) |
Depletion, depreciation and amortization | (190) | (242) | (201) |
Asset retirement obligation accretion | (6) | (6) | (9) |
Petroleum revenue tax | 0 | 0 | 0 |
Income tax | (13) | (79) | (51) |
Results of operations | $ 41 | $ 238 | $ 176 |
Supplementary Oil And Gas In_10
Supplementary Oil And Gas Information (Unaudited) - Future Net Cash Flows Relating to Proved Crude Oil and Natural Gas Reserves (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Future cash inflows | $ 414,238 | $ 531,752 | $ 519,006 | |
Future production costs | (208,604) | (201,050) | (200,819) | |
Future development costs and asset retirement obligations | (76,097) | (74,603) | (67,210) | |
Future income taxes | (27,536) | (55,242) | (62,636) | |
Future net cash flows | 102,001 | 200,857 | 188,341 | |
10% annual discount for timing of future cash flows | (74,490) | (137,332) | (128,015) | |
Standardized measure of future net cash flows | 27,511 | 63,525 | 60,326 | $ 46,905 |
North America | ||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Future cash inflows | 404,193 | 515,864 | 500,557 | |
Future production costs | (203,599) | (194,076) | (193,387) | |
Future development costs and asset retirement obligations | (72,935) | (70,879) | (63,202) | |
Future income taxes | (27,178) | (53,759) | (60,526) | |
Future net cash flows | 100,481 | 197,150 | 183,442 | |
10% annual discount for timing of future cash flows | (74,395) | (136,616) | (126,699) | |
Standardized measure of future net cash flows | 26,086 | 60,534 | 56,743 | |
North Sea | ||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Future cash inflows | 5,873 | 10,030 | 12,002 | |
Future production costs | (3,259) | (4,893) | (5,148) | |
Future development costs and asset retirement obligations | (2,130) | (2,648) | (2,909) | |
Future income taxes | (141) | (936) | (1,484) | |
Future net cash flows | 343 | 1,553 | 2,461 | |
10% annual discount for timing of future cash flows | 278 | (1) | (545) | |
Standardized measure of future net cash flows | 621 | 1,552 | 1,916 | |
Offshore Africa | ||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Future cash inflows | 4,172 | 5,858 | 6,447 | |
Future production costs | (1,746) | (2,081) | (2,284) | |
Future development costs and asset retirement obligations | (1,032) | (1,076) | (1,099) | |
Future income taxes | (217) | (547) | (626) | |
Future net cash flows | 1,177 | 2,154 | 2,438 | |
10% annual discount for timing of future cash flows | (373) | (715) | (771) | |
Standardized measure of future net cash flows | $ 804 | $ 1,439 | $ 1,667 |
Supplementary Oil And Gas In_11
Supplementary Oil And Gas Information (Unaudited) - Sources of Change in the Standardized Measure of Discounted Future Net Cash Flows (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves 1 [Roll Forward] | |||
Sales of crude oil and natural gas produced, net of production costs | $ (6,127) | $ (11,807) | $ (10,229) |
Net changes in sales prices and production costs | (46,055) | (3,515) | 20,386 |
Extensions, discoveries and improved recovery | 626 | 5,883 | 2,807 |
Changes in estimated future development costs | (153) | (1,889) | (698) |
Purchases of proved reserves in place | 947 | 7,418 | 396 |
Sales of proved reserves in place | (1) | 0 | (55) |
Revisions of previous reserve estimates | 5,295 | (3,384) | 2,711 |
Accretion of discount | 7,718 | 8,062 | 6,119 |
Changes in production timing and other | (4,830) | 447 | (955) |
Net change in income taxes | 6,566 | 1,984 | (7,061) |
Net change | (36,014) | 3,199 | 13,421 |
Balance - beginning of year | 63,525 | 60,326 | 46,905 |
Balance - end of year | $ 27,511 | $ 63,525 | $ 60,326 |
Uncategorized Items - _IXDS
Label | Element | Value |
Office Leases And Other [Member] | ||
Right-of-use assets | ifrs-full_RightofuseAssets | $ 132,000,000 |
Field Equipment And Power [Member] | ||
Right-of-use assets | ifrs-full_RightofuseAssets | 332,000,000 |
Product Transportation And Storage [Member] | ||
Right-of-use assets | ifrs-full_RightofuseAssets | 823,000,000 |
Offshore Vessels And Equipment [Member] | ||
Right-of-use assets | ifrs-full_RightofuseAssets | 252,000,000 |
Painted Pony Energy Ltd [Member] | ||
Right-of-use assets | ifrs-full_RightofuseAssets | $ 93,000,000 |