Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 17, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Entity Registrant Name | Ovintiv Inc. | ||
Entity Central Index Key | 0001792580 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 243,643,104 | ||
Trading Symbol | OVV | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 11,306,868,256 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Shares | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-39191 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 84-4427672 | ||
Entity Address, Address Line One | Suite 1700 | ||
Entity Address, Address Line Two | 370 17th Street | ||
Entity Address, City or Town | Denver | ||
Entity Address, State or Province | CO | ||
Entity Address, Country | US | ||
Entity Address, Postal Zip Code | 80202 | ||
City Area Code | 303 | ||
Local Phone Number | 623-2300 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Firm ID | 271 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Calgary, Alberta, Canada | ||
Documents Incorporated by Reference | The information required by Part III of this Annual Report on Form 10-K, to the extent not set forth herein, is incorporated herein by reference from the registrant’s definitive proxy statement relating to the Annual Meeting of Shareholders to be held in 2023, which definitive proxy statement shall be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this Annual Report on Form 10-K relates. |
Consolidated Statement of Earni
Consolidated Statement of Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||
Product and service revenues | $ 14,263 | $ 10,468 | $ 5,509 |
Gains (losses) on risk management, net | (1,867) | (1,883) | 507 |
Sublease revenues | 68 | 73 | 71 |
Total Revenues | 12,464 | 8,658 | 6,087 |
Operating Expenses | |||
Production, mineral and other taxes | 415 | 293 | 173 |
Transportation and processing | 1,786 | 1,616 | 1,502 |
Operating | 802 | 625 | 605 |
Purchased product | 4,055 | 2,951 | 1,366 |
Depreciation, depletion and amortization | 1,113 | 1,190 | 1,834 |
Impairments | 0 | 0 | 5,580 |
Accretion of asset retirement obligation | 18 | 22 | 29 |
Administrative | 422 | 442 | 395 |
Total Operating Expenses | 8,611 | 7,139 | 11,484 |
Operating Income (Loss) | 3,853 | 1,519 | (5,397) |
Other (Income) Expenses | |||
Interest | 311 | 340 | 371 |
Foreign exchange (gain) loss, net | 15 | (23) | 17 |
Other (gains) losses, net | (33) | (37) | (55) |
Total Other (Income) Expenses | 293 | 280 | 333 |
Net Earnings (Loss) Before Income Tax | 3,560 | 1,239 | (5,730) |
Income tax expense (recovery) | (77) | (177) | 367 |
Net Earnings (Loss) | $ 3,637 | $ 1,416 | $ (6,097) |
Net Earnings (Loss) per Share of Common Stock | |||
Basic | $ 14.34 | $ 5.44 | $ (23.47) |
Diluted | $ 14.08 | $ 5.32 | $ (23.47) |
Weighted Average Shares of Common Stock Outstanding (millions) | |||
Basic | 253.6 | 260.4 | 259.8 |
Diluted | 258.4 | 266.4 | 259.8 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net Earnings (Loss) | $ 3,637 | $ 1,416 | $ (6,097) |
Other Comprehensive Income (Loss), Net of Tax | |||
Foreign currency translation adjustment | (107) | 2 | 38 |
Pension and other post-employment benefit plans | 6 | 14 | (8) |
Other Comprehensive Income (Loss) | (101) | 16 | 30 |
Comprehensive Income (Loss) | $ 3,536 | $ 1,432 | $ (6,067) |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 5 | $ 195 |
Accounts receivable and accrued revenues (net of allowances of $4 million (2021: $5 million)) | 1,594 | 1,294 |
Risk management | 53 | 1 |
Income tax receivable | 43 | 97 |
Total Current Assets | 1,695 | 1,587 |
Oil and natural gas properties, based on full cost accounting | ||
Proved properties | 57,054 | 55,475 |
Unproved properties | 1,172 | 1,944 |
Other | 882 | 903 |
Property, plant and equipment | 59,108 | 58,322 |
Less: Accumulated depreciation, depletion and amortization | (49,640) | (49,561) |
Property, plant and equipment, net | 9,468 | 8,761 |
Other Assets | 1,004 | 1,079 |
Risk Management | 34 | 0 |
Deferred Income Taxes | 271 | 0 |
Goodwill | 2,584 | 2,628 |
Total Assets | 15,056 | 14,055 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 2,221 | 1,979 |
Current portion of operating lease liabilities | 76 | 62 |
Income tax payable | 4 | 4 |
Risk management | 86 | 703 |
Current portion of long-term debt | 393 | 0 |
Total Current Liabilities | 2,780 | 2,748 |
Long-Term Debt | 3,177 | 4,786 |
Operating Lease Liabilities | 814 | 889 |
Other Liabilities and Provisions | 131 | 190 |
Risk Management | 0 | 25 |
Asset Retirement Obligation | 281 | 339 |
Deferred Income Taxes | 184 | 4 |
Total Liabilities | 7,367 | 8,981 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Share capital - authorized 775 million shares of stock 2022 issued and outstanding: 245.7 million shares (2021: 258.0 million shares) | 3 | 3 |
Paid in surplus | 7,776 | 8,458 |
Retained earnings (Accumulated deficit) | (1,081) | (4,479) |
Accumulated other comprehensive income | 991 | 1,092 |
Total Shareholders’ Equity | 7,689 | 5,074 |
Total Liabilities and Shareholders' Equity | $ 15,056 | $ 14,055 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Allowances for accounts receivable and accrued revenues | $ 4 | $ 5 |
Share Capital, Authorized | 775,000,000 | 775,000,000 |
Common Stock, Shares, Issued | 245,700,000 | 258,000,000 |
Common Stock, Shares, Outstanding | 245,700,000 | 258,000,000 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Normal Course Issuer Bid [Member] | Share Capital [Member] | Share Capital [Member] Normal Course Issuer Bid [Member] | Paid In Surplus [Member] | Paid In Surplus [Member] Normal Course Issuer Bid [Member] | Retained Earnings (Accumulated Deficit) [Member] | Retained Earnings (Accumulated Deficit) [Member] Normal Course Issuer Bid [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Other Comprehensive Income [Member] Normal Course Issuer Bid [Member] |
Balance, Beginning of Period at Dec. 31, 2019 | $ 9,930,000 | $ 7,061,000 | $ 1,402,000 | $ 421,000 | $ 1,046,000 | |||||
Net Earnings (Loss) | (6,097,000) | 0 | 0 | (6,097,000) | 0 | |||||
Dividends on Shares of Common Stock | (97,000) | 0 | 0 | (97,000) | 0 | |||||
Shares of Common Stock Purchased under Normal Course Issuer Bid | 0 | |||||||||
Equity-Settled Compensation Costs | 71,000 | 0 | 71,000 | 0 | 0 | |||||
Other Comprehensive Income (Loss) | 30,000 | 0 | 0 | 0 | 30,000 | |||||
Reclassification of Share Capital due to the Reorganization | 0 | (7,058,000) | 7,058,000 | 0 | 0 | |||||
Balance, End of Period at Dec. 31, 2020 | 3,837,000 | 3,000 | 8,531,000 | (5,773,000) | 1,076,000 | |||||
Net Earnings (Loss) | 1,416,000 | 0 | 0 | 1,416,000 | 0 | |||||
Dividends on Shares of Common Stock | (122,000) | 0 | 0 | (122,000) | 0 | |||||
Shares of Common Stock Purchased under Normal Course Issuer Bid | 0 | $ (111,000) | $ (28) | $ (111,000) | $ 0 | $ 0 | ||||
Equity-Settled Compensation Costs | 38,000 | 0 | 38,000 | 0 | 0 | |||||
Other Comprehensive Income (Loss) | 16,000 | 0 | 0 | 0 | 16,000 | |||||
Reclassification of Share Capital due to the Reorganization | 0 | |||||||||
Balance, End of Period at Dec. 31, 2021 | 5,074,000 | 3,000 | 8,458,000 | (4,479,000) | 1,092,000 | |||||
Net Earnings (Loss) | 3,637,000 | 0 | 0 | 3,637,000 | 0 | |||||
Dividends on Shares of Common Stock | (239,000) | 0 | 0 | 0 | ||||||
Shares of Common Stock Purchased under Normal Course Issuer Bid | 0 | $ (719,000) | $ (147) | $ (719,000) | $ 0 | $ 0 | ||||
Equity-Settled Compensation Costs | 37,000 | 0 | 37,000 | 0 | 0 | |||||
Other Comprehensive Income (Loss) | (101,000) | 0 | 0 | 0 | (101,000) | |||||
Reclassification of Share Capital due to the Reorganization | 0 | |||||||||
Balance, End of Period at Dec. 31, 2022 | $ 7,689,000 | $ 3,000 | $ 7,776,000 | $ (1,081,000) | $ 991,000 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Stockholders Equity [Abstract] | |||
Dividends on Shares of Common Stock, per share | $ 0.95 | $ 0.4675 | $ 0.375 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Activities | |||
Net earnings (loss) | $ 3,637 | $ 1,416 | $ (6,097) |
Depreciation, depletion and amortization | 1,113 | 1,190 | 1,834 |
Impairments | 0 | 0 | 5,580 |
Accretion of asset retirement obligation | 18 | 22 | 29 |
Deferred income taxes | (87) | (21) | 381 |
Unrealized (gain) loss on risk management | (741) | 488 | 204 |
Unrealized foreign exchange (gain) loss | 14 | 21 | 11 |
Foreign exchange (gain) loss on settlements | 8 | (11) | 6 |
Other | 148 | 104 | (19) |
Net change in other assets and liabilities | (57) | (39) | (173) |
Net change in non-cash working capital | (187) | (41) | 139 |
Cash From (Used in) Operating Activities | 3,866 | 3,129 | 1,895 |
Investing Activities | |||
Capital expenditures | (1,831) | (1,519) | (1,736) |
Acquisitions | (286) | (11) | (19) |
Proceeds from divestitures | 228 | 1,025 | 89 |
Net change in investments and other | 103 | (20) | (198) |
Cash From (Used in) Investing Activities | (1,786) | (525) | (1,864) |
Financing Activities | |||
Net issuance (repayment) of revolving long-term debt | 393 | (950) | 252 |
Repayment of long-term debt | (1,634) | (1,137) | (272) |
Purchase of shares of common stock | (719) | (111) | 0 |
Dividends on shares of common stock | (239) | (122) | (97) |
Finance lease payments and other | (69) | (99) | (89) |
Cash From (Used in) Financing Activities | (2,268) | (2,419) | (206) |
Foreign Exchange Gain (Loss) on Cash, Cash Equivalents and Restricted Cash Held in Foreign Currency | (2) | 0 | (5) |
Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (190) | 185 | (180) |
Cash, Cash Equivalents and Restricted Cash, Beginning of Year | 195 | 10 | 190 |
Cash, Cash Equivalents and Restricted Cash, End of Year | 5 | 195 | 10 |
Cash, End of Year | 5 | 26 | 9 |
Cash Equivalents, End of Year | 0 | 169 | 1 |
Restricted Cash, End of Year | $ 0 | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies A) NATURE OF OPERATIONS Ovintiv Inc. and its subsidiaries (collectively, “Ovintiv”) are in the business of the exploration for, the development of, and the production and marketing of oil, NGLs and natural gas. On January 24, 2020, Encana Corporation (“Encana”) completed a corporate reorganization, which included a plan of arrangement (the “Arrangement”) that involved, among other things, Ovintiv Inc. ultimately acquiring all of the issued and outstanding common shares of Encana in exchange for shares of common stock of Ovintiv Inc. on a one-for-one basis. Following completion of the Arrangement, Ovintiv Inc. migrated from Canada and became a Delaware corporation, domiciled in the U.S. (the “U.S. Domestication”). The Arrangement and the U.S. Domestication together are referred to as the “Reorganization”. B) BASIS OF PRESENTATION The Consolidated Financial Statements include the accounts of Ovintiv and are presented in conformity with U.S. GAAP and the rules and regulations of the SEC. In these Consolidated Financial Statements, unless otherwise indicated, all dollar amounts are expressed in U.S. dollars. Following the U.S. Domestication on January 24, 2020, the functional currency of Ovintiv Inc. became U.S. dollars, and accordingly, the financial results herein are consolidated and reported in U.S. dollars. All references to US$ or to $ are to United States dollars and references to C$ are to Canadian dollars. The Arrangement, as described above, was accounted for as a reorganization of entities under common control. Accordingly, the resulting transactions were recognized using historical carrying amounts. On January 24, 2020, Ovintiv became the reporting entity upon completion of the Reorganization. C) PRINCIPLES OF CONSOLIDATION The Consolidated Financial Statements include the accounts of Ovintiv and entities in which it holds a controlling interest. D) FOREIGN CURRENCY TRANSLATION Monetary assets and liabilities of the Company that are denominated in foreign currencies are translated at the rates of exchange in effect at the period end date. Any gains or losses are recorded in the Consolidated Statement of Earnings. Foreign currency revenues and expenses are translated at the rates of exchange in effect at the time of the transaction. Assets and liabilities of foreign operations are translated at period end exchange rates, while the related revenues and expenses are translated using average rates during the period. Translation gains and losses relating to foreign operations are included in accumulated other comprehensive income (“AOCI”). Recognition of Ovintiv’s accumulated translation gains and losses into net earnings occurs upon complete or substantially complete liquidation of the Company’s investment in the foreign operation. E) USE OF ESTIMATES Preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires Management to make informed estimates and assumptions and use judgments that affect reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the period. Such estimates primarily relate to unsettled transactions and events as of the date of the Consolidated Financial Statements. Accordingly, actual results may differ from estimated amounts as future events occur. Significant items subject to estimates and assumptions are: • Estimates of proved reserves used for depletion and ceiling test impairment calculations • Estimated fair value of long-term assets used for impairment calculations • Fair value of reporting units used for the assessment of goodwill • Estimates of future taxable earnings used to assess the realizable value of deferred tax assets • Estimates of incremental borrowing rates and lease terms used in the measurement of right-of-use (“ROU”) assets and lease liabilities • Fair value of asset retirement costs and related obligations • Fair value of derivative instruments • Fair value attributed to assets acquired and liabilities assumed in business combinations • Tax interpretations, regulations and legislation in the various jurisdictions in which the Company and its subsidiaries operate • Accruals for long-term performance-based compensation arrangements, including whether or not the performance criteria will be met and measurement of the ultimate payout amount • Recognized values of pension assets and obligations, as well as the pension costs charged to net earnings, depend on certain actuarial and economic assumptions • Accruals for legal claims, environmental risks and exposures F) REVENUES FROM CONTRACTS WITH CUSTOMERS Revenues from contracts with customers associated with Ovintiv’s oil, NGLs and natural gas and third-party processing and gathering are recognized when control of the good or service is transferred to the customer, and title or risk of loss transfers to the customer. Transaction prices are determined at inception of the contract and allocated to the performance obligations identified. Variable consideration is estimated and included in the transaction price, unless the variable consideration is constrained. For product sales, the performance obligations are satisfied at a point in time when the product is delivered to the customer and control is transferred. Payment from the customer is due when the product is delivered to the custody point. Revenues for product sales are presented on an after-royalties basis. For arrangements to gather and process natural gas for third parties, performance obligations are satisfied over time as the service is provided to the customer. Payment from the customer is due when the customer receives the benefit of the service and the product is delivered to the custody point or plant tailgate. Revenues associated with services provided where Ovintiv acts as agent are recorded on a net basis. G) PRODUCTION, MINERAL AND OTHER TAXES Costs paid by Ovintiv for taxes based on production or revenues from oil, NGLs and natural gas are recognized when the product is produced. Costs paid by Ovintiv for taxes on the valuation of upstream assets and reserves are recognized when incurred. H) TRANSPORTATION AND PROCESSING Costs paid by Ovintiv for the transportation and processing of oil, NGLs and natural gas are recognized when the product is delivered and the services made available or provided. I) OPERATING Operating costs paid by Ovintiv, net of amounts capitalized, are recognized for oil and natural gas properties in which the Company has a working interest. J) EMPLOYEE BENEFIT PLANS The Company sponsors defined contribution and defined benefit plans, providing pension and other post-employment benefits to its employees in the U.S. and Canada. As of January 1, 2003, the defined benefit pension plan was closed to new entrants. Pension expense for the defined contribution pension plan is recorded as the benefits are earned by the employees covered by the plans. Ovintiv accrues for its obligations under its employee defined benefit plans, net of plan assets. The cost of defined benefit pensions and other post-employment benefits is actuarially determined using the projected benefit method based on length of service and reflects Management’s best estimate of salary escalation, mortality rates, retirement ages of employees and expected future health care costs. The expected return on plan assets is based on historical and projected rates of return for assets in the investment plan portfolio. The actual return is based on the fair value of plan assets. The projected benefit obligation is discounted using the market interest rate on high-quality corporate debt instruments as at the measurement date. Defined benefit pension plan expenses include the cost of pension benefits earned during the current year, the interest cost on pension obligations, the expected return on pension plan assets, the amortization of adjustments arising from pension plan amendments, the amortization of net prior service costs, and the amortization of the excess of the net actuarial gains or losses over 10 percent of the greater of the benefit obligation and the fair value of plan assets. Amortization is on a straight-line basis over a period covering the expected average remaining service lives of employees covered by the plans. All components of the net defined periodic benefit cost, excluding the service cost component, are included in other (gains) losses, net. K) INCOME TAXES Ovintiv follows the liability method of accounting for income taxes. Under this method, deferred income taxes are recorded for the effect of any temporary difference between the accounting and income tax basis of an asset or liability, using the enacted income tax rates and laws expected to apply when the assets are realized and liabilities are settled. Current income taxes are measured at the amount expected to be recoverable from or payable to the taxing authorities based on the income tax rates and laws enacted at the end of the reporting period. The effect of a change in the enacted tax rates or laws is recognized in net earnings in the period of enactment. Income taxes are recognized in net earnings except to the extent that they relate to items recognized directly in shareholders’ equity, in which case the income taxes are recognized directly in shareholders’ equity. Deferred income tax assets are assessed routinely for realizability. If it is more likely than not that deferred tax assets will not be realized, a valuation allowance is recorded to reduce the deferred tax assets. Ovintiv considers available positive and negative evidence when assessing the realizability of deferred tax assets including historic and expected future taxable earnings, available tax planning strategies and carry forward periods. The assumptions used in determining expected future taxable earnings are consistent with those used in the goodwill impairment assessment. Ovintiv recognizes the financial statement effects of a tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by a taxing authority. A recognized tax position is initially and subsequently measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement with a taxing authority. Liabilities for unrecognized tax benefits that are not expected to be settled within the next 12 months are included in other liabilities and provisions. Interest related to unrecognized tax benefits is recognized in interest expense. L) EARNINGS PER SHARE AMOUNTS Basic net earnings per share of common stock is computed by dividing the net earnings by the weighted average number of shares of common stock outstanding during the period. Diluted net earnings per share of common stock is calculated giving effect to the potential dilution that would occur if stock options were exercised or other contracts to issue shares of common stock were exercised, fully vested, or converted to shares of common stock. The treasury stock method is used to determine the dilutive effect of stock options and other dilutive instruments. The treasury stock method assumes that proceeds received from the exercise of in-the-money stock options and other dilutive instruments are used to repurchase shares of common stock at the average market price. M) CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand and short-term investments, such as money market deposits or similar type instruments, with a maturity of three months or less when purchased. Outstanding disbursements issued in excess of applicable bank account balances are excluded from cash and cash equivalents and are recorded in accounts payable and accrued liabilities. N) PROPERTY, PLANT AND EQUIPMENT UPSTREAM Ovintiv uses the full cost method of accounting for its acquisition, exploration and development activities. Accordingly, all costs directly associated with the acquisition of, the exploration for, and the development of oil, NGLs and natural gas reserves, including costs of undeveloped leaseholds, dry holes and related equipment, are capitalized on a country-by-country cost center basis. Capitalized costs exclude costs relating to production, general overhead or similar activities. Capitalized costs accumulated within each cost center are depleted using the unit-of-production method based on proved reserves. Depletion is calculated using the capitalized costs, including estimated retirement costs, plus the undiscounted future expenditures, based on current costs, to be incurred in developing proved reserves. Costs associated with unproved properties are excluded from the depletion calculation until it is determined that proved reserves are attributable or impairment has occurred. Unproved properties are assessed separately for impairment on a quarterly basis. Costs that have been impaired are included in the costs subject to depletion within the full cost pool. Under the full cost method of accounting, the carrying amount of Ovintiv’s oil and natural gas properties within each country cost center is subject to a ceiling test at the end of each quarter. A ceiling test impairment is recognized in net earnings when the carrying amount of a country cost center exceeds the country cost center ceiling. The carrying amount of a cost center includes capitalized costs of proved oil and natural gas properties, net of accumulated depletion and the related deferred income taxes. The cost center ceiling is the sum of the estimated after-tax future net cash flows from proved reserves, using the 12-month average trailing prices and unescalated future development and production costs, discounted at 10 percent, plus unproved property costs. The 12-month average trailing price is calculated as the average of the price on the first day of each month within the trailing 12-month period. Any excess of the carrying amount over the calculated ceiling amount is recognized as an impairment in net earnings. Proceeds from the divestiture of properties are normally deducted from the full cost pool without recognition of a gain or loss unless the deduction significantly alters the relationship between capitalized costs and proved reserves in the cost center, in which case a gain or loss is recognized in net earnings. Generally, a gain or loss on a divestiture would be recognized when 25 percent or more of the Company’s proved reserves quantities are sold in a particular country cost center. For divestitures that result in the recognition of a gain or loss on the sale and constitute a business, goodwill is allocated to the divestiture. CORPORATE Costs associated with office furniture, fixtures, leasehold improvements, information technology and aircraft are carried at cost and depreciated on a straight-line basis over the estimated service lives of the assets, which range from three to 25 years. Assets under construction are not subject to depreciation until put into use. Land is carried at cost. O) CAPITALIZATION OF COSTS Expenditures related to renewals or betterments that improve the productive capacity or extend the life of an asset are capitalized. Maintenance and repairs are expensed as incurred. Interest on borrowings associated with development projects is capitalized during the development phase. P) BUSINESS COMBINATIONS Business combinations are accounted for using the acquisition method. The acquired identifiable net assets are measured at fair value at the date of acquisition. Deferred taxes are recognized for any differences between the fair value of net assets acquired and the related tax bases. Any excess of the purchase price over the fair value of the net assets acquired is recognized as goodwill. Any deficiency of the purchase price below the fair value of the net assets acquired is recorded as a gain in net earnings. Associated transaction costs are expensed when incurred. Q) GOODWILL Goodwill represents the excess of purchase price over fair value of net assets acquired and is assessed for impairment at least annually at December 31. Goodwill and all other assets and liabilities are allocated to reporting units, which are Ovintiv’s country cost centers. To assess impairment, the carrying amount of each reporting unit is determined and compared to the fair value of each respective reporting unit. Any excess of the carrying value of the reporting unit, including goodwill, over its fair value is recognized as an impairment and charged to net earnings. The impairment charge measured is limited to the total amount of goodwill allocated to that reporting unit. Subsequent measurement of goodwill is at cost less any accumulated impairments. R) IMPAIRMENT OF LONG-TERM ASSETS The carrying value of long-term assets, excluding goodwill and upstream assets included in property, plant and equipment, is assessed for impairment when indicators suggest that the carrying value of an asset or asset group may not be recoverable. Individual assets are grouped for impairment purposes at the lowest level for which there are identifiable cashflows that are largely independent of the cashflows of other groups of assets. If the carrying amount exceeds the sum of the undiscounted cash flows expected to result from the continued use and eventual disposition of the asset or asset group, an impairment is recognized for the excess of the carrying amount over its estimated fair value. S) ASSET RETIREMENT OBLIGATION Asset retirement obligations are those legal obligations where the Company will be required to retire tangible long-lived assets such as producing well sites, processing plants, and restoring land at the end of oil and gas production operations. The asset retirement obligation is initially measured at its fair value and recorded as a liability with an offsetting retirement cost that is capitalized as part of the related long-lived asset in the Consolidated Balance Sheet. The estimated fair value is measured by reference to the expected future cash flows required to satisfy the obligation, discounted at the Company’s credit-adjusted risk-free rate. Changes in the estimated obligation resulting from revisions to estimated timing or amount of future cash flows are recognized as a change in the asset retirement obligation and the related asset retirement cost. Amortization of asset retirement costs are included in depreciation, depletion and amortization in the Consolidated Statement of Earnings. Increases in the asset retirement obligations resulting from the passage of time are recorded as accretion of asset retirement obligation in the Consolidated Statement of Earnings. Actual expenditures incurred are charged against the accumulated asset retirement obligation. T) STOCK-BASED COMPENSATION Stock-based compensation arrangements are accounted for at fair value. Fair values are determined using observable share prices and/or pricing models such as the Black-Scholes-Merton option-pricing model. For equity-settled stock-based compensation plans, fair values are determined at the grant date and are recognized over the vesting period as compensation costs with a corresponding credit to shareholders’ equity. For cash-settled stock-based compensation plans, fair values are determined at each reporting date and periodic changes are recognized as compensation costs, with a corresponding change to liabilities. Compensation costs are recognized over the vesting period using the accelerated attribution method for awards with a graded vesting feature. Forfeitures are estimated based on the Company’s historical turnover rates. U) LEASES Leases for the right to use an asset are classified as either an operating or finance lease. Upon commencement of the lease, a ROU asset and corresponding lease liability are recognized in the Consolidated Balance Sheet for all operating and finance leases. Ovintiv has elected the short-term lease exemption, which does not require a ROU asset or lease liability to be recognized in the Consolidated Balance Sheet when the lease term is 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. Upon commencement of the lease, ROU assets are recognized based on the initial measurement of the lease liability and adjusted for any lease payments made before the commencement date of the lease, less any lease incentives and including any initial direct costs incurred. Lease liabilities are initially measured at the present value of future minimum lease payments over the lease term. The discount rate used to determine the present value is the rate implicit in the lease unless that rate cannot be determined, in which case Ovintiv ’s incremental borrowing rate is used. Rights to extend or terminate a lease are included in the lease term when there is reasonable certainty the right will be exercised. Factors used to assess reasonable certainty of rights to extend or terminate a lease include current and forecasted drilling plans, anticipated changes in development strategies, historical practice in extending similar contracts and current market conditions. Operating lease ROU assets and liabilities are subsequently measured at the present value of the lease payments not yet paid and discounted at the initial discount rate at commencement of the lease, less any impairments to the ROU asset. Operating lease expense and revenue from subleases are recognized in the Consolidated Statement of Earnings on a straight-line basis over the lease term. Finance lease ROU assets are amortized on a straight-line basis over the estimated useful life of the asset if the lessee is reasonably certain to exercise a purchase option or ownership of the leased asset transfers at the end of the lease term, otherwise the leased assets are amortized over the lease term. Amortization of finance lease ROU assets is included in depreciation, depletion and amortization in the Consolidated Statement of Earnings. Variable lease payments include changes in index rates, mobilization and demobilization costs related to oil and gas equipment and certain costs associated with office and building leases. Variable lease payments are recognized when incurred. Lease and non-lease components are accounted for as a single lease component for compression, coolers and office subleases. V) FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques include the market, income and cost approach. The market approach uses information generated by market transactions involving identical or comparable assets or liabilities; the income approach converts estimated future cash flows to a present value; the cost approach is based on the amount that currently would be required to replace an asset. Inputs used in determining fair value are characterized according to a hierarchy that prioritizes those inputs based on the degree to which they are observable. The three input levels of the fair value hierarchy are as follows: • Level 1 - Inputs represent quoted prices in active markets for identical assets or liabilities, such as exchange-traded commodity derivatives. • Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted market prices for similar assets or liabilities in active markets or other market corroborated inputs. • Level 3 - Inputs that are not observable from objective sources, such as forward prices supported by little or no market activity or internally developed estimates of future cash flows used in a present value model. In determining fair value, the Company utilizes the most observable inputs available. If a fair value measurement reflects inputs at multiple levels within the hierarchy, the fair value measurement is characterized based on the lowest level of input that is significant to the fair value measurement. The carrying amount of cash and cash equivalents, accounts receivable and accrued revenues, and accounts payable and accrued liabilities reported in the Consolidated Balance Sheet approximates fair value. The fair value of long-term debt is disclosed in Note 14. Fair value information related to pension plan assets is included in Note 22. Recurring fair value measurements are performed for risk management assets and liabilities and other derivative contracts as discussed in Note 23. Certain non-financial assets and liabilities are initially measured at fair value, such as asset retirement obligations and assets and liabilities acquired in business combinations or certain non-monetary exchange transactions. W) RISK MANAGEMENT ASSETS AND LIABILITIES Risk management assets and liabilities are derivative financial instruments used by Ovintiv to manage economic exposure to market risks relating to commodity prices, foreign currency exchange rates and interest rates. The use of these derivative instruments is governed under formal policies and is subject to limits established by the Board of Directors. Derivative instruments that do not qualify for the normal purchases and sales exemption are measured at fair value with changes in fair value recognized in net earnings. The fair values recorded in the Consolidated Balance Sheet reflect netting the asset and liability positions where counterparty master netting arrangements contain provisions for net settlement. Realized gains or losses from financial derivatives related to oil, NGLs and Unrealized gains and losses are recognized based on the changes in fair value of the contracts and are presented in revenues and foreign exchange (gain) loss. X) COMMITMENTS AND CONTINGENCIES Liabilities for loss contingencies arising from claims, assessments, litigation, environmental and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change. |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segmented Information | 2. Segmented Information Ovintiv’s reportable segments are determined based on the following operations and geographic locations: • USA Operations includes the exploration for, development of, and production of oil, NGLs and natural gas and other related activities within the U.S. cost center. • Canadian Operations includes the exploration for, development of, and production of oil, NGLs and natural gas and other related activities within the Canadian cost center. • Market Optimization is primarily responsible for the sale of the Company’s proprietary production. These results are reported in the USA and Canadian Operations. Market optimization activities include third-party purchases and sales of product to provide operational flexibility and cost mitigation for transportation commitments, product type, delivery points and customer diversification. These activities are reflected in the Market Optimization segment. Market Optimization sells substantially all of the Company’s upstream production to third-party customers. Transactions between segments are based on market values and are eliminated on consolidation. Corporate and Other mainly includes unrealized gains or losses recorded on derivative financial instruments. Once the instruments are settled, the realized gains and losses are recorded in the reporting segment to which the derivative instruments relate. Corporate and Other also includes amounts related to sublease rentals. Results of Operations Segment Information USA Operations Canadian Operations Market Optimization For the years ended December 31 2022 2021 2020 2022 2021 2020 2022 2021 2020 Revenues Product and service revenues $ 6,680 $ 4,883 $ 2,701 $ 3,476 $ 2,542 $ 1,349 $ 4,107 $ 3,043 $ 1,459 Gains (losses) on risk management, net (1,123 ) (982 ) 497 (1,485 ) (413 ) 207 - - 7 Sublease revenues - - - - - - - - - Total Revenues 5,557 3,901 3,198 1,991 2,129 1,556 4,107 3,043 1,466 Operating Expenses Production, mineral and other taxes 401 278 158 14 15 15 - - - Transportation and processing 626 507 453 1,002 937 829 158 172 220 Operating 646 490 485 127 111 100 29 25 22 Purchased product - - - - - - 4,055 2,951 1,366 Depreciation, depletion and amortization 861 837 1,378 235 332 427 - - - Impairments - - 5,580 - - - - - - Total Operating Expenses 2,534 2,112 8,054 1,378 1,395 1,371 4,242 3,148 1,608 Operating Income (Loss) $ 3,023 $ 1,789 $ (4,856 ) $ 613 $ 734 $ 185 $ (135 ) $ (105 ) $ (142 ) Corporate & Other Consolidated 2022 2021 2020 2022 2021 2020 Revenues Product and service revenues $ - $ - $ - $ 14,263 $ 10,468 $ 5,509 Gains (losses) on risk management, net 741 (488 ) (204 ) (1,867 ) (1,883 ) 507 Sublease revenues 68 73 71 68 73 71 Total Revenues 809 (415 ) (133 ) 12,464 8,658 6,087 Operating Expenses Production, mineral and other taxes - - - 415 293 173 Transportation and processing - - - 1,786 1,616 1,502 Operating - (1 ) (2 ) 802 625 605 Purchased product - - - 4,055 2,951 1,366 Depreciation, depletion and amortization 17 21 29 1,113 1,190 1,834 Impairments - - - - - 5,580 Accretion of asset retirement obligation 18 22 29 18 22 29 Administrative 422 442 395 422 442 395 Total Operating Expenses 457 484 451 8,611 7,139 11,484 Operating Income (Loss) $ 352 $ (899 ) $ (584 ) 3,853 1,519 (5,397 ) Other (Income) Expenses Interest 311 340 371 Foreign exchange (gain) loss, net 15 (23 ) 17 Other (gains) losses, net (33 ) (37 ) (55 ) Total Other (Income) Expenses 293 280 333 Net Earnings (Loss) Before Income Tax 3,560 1,239 (5,730 ) Income tax expense (recovery) (77 ) (177 ) 367 Net Earnings (Loss) $ 3,637 $ 1,416 $ (6,097 ) Intersegment Information Market Optimization Marketing Sales Upstream Eliminations Total For the years ended December 31 2022 2021 2020 2022 2021 2020 2022 2021 2020 Revenues $ 15,622 $ 10,630 $ 6,108 $ (11,515 ) $ (7,587 ) $ (4,642 ) $ 4,107 $ 3,043 $ 1,466 Operating Expenses Transportation and processing 646 571 616 (488 ) (399 ) (396 ) 158 172 220 Operating 29 25 22 - - - 29 25 22 Purchased product 15,082 10,140 5,612 (11,027 ) (7,189 ) (4,246 ) 4,055 2,951 1,366 Operating Income (Loss) $ (135 ) $ (106 ) $ (142 ) $ - $ 1 $ - $ (135 ) $ (105 ) $ (142 ) Revenues by Geographic Region United States Canada Total For the years ended December 31 2022 2021 2020 2022 2021 2020 2022 2021 2020 Revenues Product revenues (1) Oil $ 4,524 $ 3,357 $ 2,035 $ 3 $ 7 $ 7 $ 4,527 $ 3,364 $ 2,042 NGLs 1,045 862 353 1,358 1,158 602 2,403 2,020 955 Natural gas 1,108 664 310 2,104 1,368 737 3,212 2,032 1,047 Other revenues (2) 3,679 2,785 1,310 510 340 226 4,189 3,125 1,536 Gains (losses) on risk management, net (796 ) (1,160 ) 406 (1,071 ) (723 ) 101 (1,867 ) (1,883 ) 507 Total Revenues $ 9,560 $ 6,508 $ 4,414 $ 2,904 $ 2,150 $ 1,673 $ 12,464 $ 8,658 $ 6,087 (1) Includes intercompany marketing fees transacted between the Company’s operating segments. (2) Includes market optimization and other revenues such as purchased product sold to third parties, sublease revenues and gathering and processing services provided to third parties. Major Customers In connection with the marketing and sale of Ovintiv’s own and purchased oil, NGLs and natural gas for the year ended December 31, 2022, the Company had one customer which individually accounted for more than 10 percent of Ovintiv’s product revenues. Sales to this customer, secured by a financial institution with an investment grade credit rating, totaled approximately $2,231 million which comprised $2,216 million in the United States and $15 million in Canada (2021 - one customer with sales of approximately $1,573 million; 2020 - one customer with sales of approximately $834 million). Capital Expenditures by Segment For the years ended December 31 2022 2021 2020 USA Operations $ 1,493 $ 1,125 $ 1,353 Canadian Operations 334 391 380 Corporate & Other 4 3 3 $ 1,831 $ 1,519 $ 1,736 Goodwill, Property, Plant and Equipment and Total Assets by Segment Goodwill Property, Plant and Equipment Total Assets As at December 31 2022 2021 2022 2021 2022 2021 USA Operations $ 1,938 $ 1,938 $ 8,259 $ 7,623 $ 11,043 $ 10,345 Canadian Operations 646 690 1,044 951 2,075 1,932 Market Optimization - - - - 446 300 Corporate & Other - - 165 187 1,492 1,478 $ 2,584 $ 2,628 $ 9,468 $ 8,761 $ 15,056 $ 14,055 Goodwill, Property, Plant and Equipment and Total Assets by Geographic Region Goodwill Property, Plant and Equipment Total Assets As at December 31 2022 2021 2022 2021 2022 2021 United States $ 1,938 $ 1,938 $ 8,316 $ 7,673 $ 11,749 $ 10,715 Canada 646 690 1,152 1,088 3,307 3,337 Other Countries - - - - - 3 $ 2,584 $ 2,628 $ 9,468 $ 8,761 $ 15,056 $ 14,055 |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 12 Months Ended |
Dec. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenues from Contracts with Customers | 3 . Revenues from Contracts with Customers The following table summarizes Ovintiv’s revenues from contracts with customers. Revenues USA Operations Canadian Operations Market Optimization For the years ended December 31 2022 2021 2020 2022 2021 2020 2022 2021 2020 Revenues from Customers Product revenues (1) Oil $ 4,537 $ 3,369 $ 2,045 $ 3 $ 7 $ 7 $ 3,415 $ 2,268 $ 616 NGLs 1,049 864 354 1,363 1,163 606 19 42 10 Natural gas 1,107 664 309 2,119 1,377 743 646 704 813 Service revenues Gathering and processing 3 - 3 2 5 3 - 5 - Product and Service Revenues $ 6,696 $ 4,897 $ 2,711 $ 3,487 $ 2,552 $ 1,359 $ 4,080 $ 3,019 $ 1,439 Corporate & Other Consolidated 2022 2021 2020 2022 2021 2020 Revenues from Customers Product revenues (1) Oil $ - $ - $ - $ 7,955 $ 5,644 $ 2,668 NGLs - - - 2,431 2,069 970 Natural gas - - - 3,872 2,745 1,865 Service revenues Gathering and processing - - - 5 10 6 Product and Service Revenues $ - $ - $ - $ 14,263 $ 10,468 $ 5,509 ( 1 ) Includes revenues from production and revenues of product purchased from third parties, but excludes intercompany marketing fees transacted between the Company’s operating segments. The Company’s revenues from contracts with customers consists of product sales including oil, NGLs and natural gas, as well as the provision of gathering and processing services to third parties. Ovintiv had no contract asset or liability balances during the periods presented. As at December 31, 2022, receivables and accrued revenues from contracts with customers were $1,257 million (2021 - $1,070 million). Ovintiv’s product sales are sold under short-term contracts with terms that are less than one year at either fixed or market index prices or under long-term contracts exceeding one year at market index prices. The Company’s gathering and processing services are provided on an interruptible basis with transaction prices that are for fixed prices and/or variable consideration. Variable consideration received is related to recovery of plant operating costs or escalation of the fixed price based on a consumer price index. As the service contracts are interruptible, with service provided on an “as available” basis, there are no unsatisfied performance obligations remaining at December 31, 2022. As at December 31, 2022, all remaining performance obligations are priced at market index prices or are variable volume delivery contracts. As such, the variable consideration is allocated entirely to the wholly unsatisfied performance obligation or promise to deliver units of production, and revenue is recognized at the amount for which the Company has the right to invoice the product delivered. As the period between when the product sales are transferred and Ovintiv receives payments is generally 30 to 60 days, there is no financing element associated with customer contracts. In addition, Ovintiv does not disclose unsatisfied performance obligations for customer contracts with terms less than 12 months or for variable consideration related to unsatisfied performance obligations. |
Interest
Interest | 12 Months Ended |
Dec. 31, 2022 | |
Interest Expense [Abstract] | |
Interest | 4 . Interest For the years ended December 31 2022 2021 2020 Interest Expense on: Debt $ 297 $ 323 $ 350 Finance leases (See Note 13) 2 3 9 Other 12 14 12 $ 311 $ 340 $ 371 For the year ended December 31, 2022, interest expense on debt includes $22 million related to premiums paid to repurchase certain of the Company’s senior notes in the open market and a $47 million (2021 - $19 million) make-whole interest payment resulting from the early redemption of certain senior notes (see Note 14). Additionally, interest expense on debt for the year ended December 31, 2022 includes $30 million in non-cash fair value amortization related to the senior notes, previously acquired through a business combination, which were redeemed in 2022 (see Note 14). |
Foreign Exchange (Gain) Loss, N
Foreign Exchange (Gain) Loss, Net | 12 Months Ended |
Dec. 31, 2022 | |
Foreign Currency [Abstract] | |
Foreign Exchange (Gain) Loss, Net | 5 . Foreign Exchange (Gain) Loss, Net For the years ended December 31 2022 2021 2020 Unrealized Foreign Exchange (Gain) Loss on: Translation of U.S. dollar financing debt issued from Canada $ - $ 1 $ 51 Translation of U.S. dollar risk management contracts issued from Canada 14 20 (13 ) Translation of intercompany notes - - (27 ) 14 21 11 Foreign Exchange (Gain) Loss on Settlements of: U.S. dollar financing debt issued from Canada 8 (8 ) 1 U.S. dollar risk management contracts issued from Canada 5 (33 ) 1 Intercompany notes - (3 ) 5 Other Monetary Revaluations (12 ) - (1 ) $ 15 $ (23 ) $ 17 Following the completion of the Reorganization, including the U.S. Domestication, on January 24, 2020 as described in Note 1, the U.S. dollar denominated unsecured notes issued by Encana Corporation from Canada were assumed by Ovintiv Inc., a company incorporated in Delaware with a U.S. dollar functional currency. Accordingly, these U.S. dollar denominated unsecured notes, along with certain intercompany notes, no longer attract foreign exchange translation gains or losses. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6 . Income Taxes The provision for income taxes is as follows: For the years ended December 31 2022 2021 2020 Current Tax United States $ 10 $ - $ (12 ) Canada - (156 ) (2 ) Total Current Tax Expense (Recovery) 10 (156 ) (14 ) Deferred Tax United States (275 ) 1 (187 ) Canada 188 (22 ) 568 Total Deferred Tax Expense (Recovery) (87 ) (21 ) 381 Income Tax Expense (Recovery) $ (77 ) $ (177 ) $ 367 During the year ended December 31, 2022, the current income tax expense was primarily due to state taxes. During the year ended December 31, 2021, the current income tax recovery was primarily due to the resolution of prior years’ tax items. The resolution, along with other items, resulted in a $222 million reduction of unrecognized tax benefits, offset by a $66 million reduction in valuation allowance. The Company also recognized related interest income of $12 million in other (gains) losses, net. During the year ended December 31, 2020, the current income tax recovery was primarily due to certain current year losses being carried back to prior years. The following table reconciles income taxes calculated at the applicable statutory rate with the actual income taxes: For the years ended December 31 2022 2021 2020 Net Earnings (Loss) Before Income Tax $ 3,560 $ 1,239 $ (5,730 ) United States Federal Statutory Rate 21.0 % 21.0 % 21.0 % Expected Income Tax Expense (Recovery) 748 260 (1,203 ) Effect on Taxes Resulting From: State income tax 26 43 (147 ) Income tax related to foreign operations 60 9 (2 ) Effect of legislative changes - - 2 Non-taxable capital (gains) losses - - 3 Realized capital loss resulting from U.S. Domestication - - (1,238 ) Non-taxable items 246 - - Amounts in respect of prior periods 101 60 36 Change in valuation allowance (1,299 ) (558 ) 2,900 Other 41 9 16 $ (77 ) $ (177 ) $ 367 Effective Tax Rate (2.2 %) (14.3 %) (6.4 %) During the year ended December 31, 2022, a valuation allowance of $1,299 million was reversed of which $1,028 million was recognized as a result of positive earnings in the U.S. and Canada. Deferred income tax assets are routinely assessed for realizability, and consequently, after weighing both positive and negative evidence, the Company reversed an additional $271 million of the valuation allowance primarily due to positive forecasted earnings in the U.S. During the year ended December 31, 2021, a valuation allowance reversal of $558 million was recognized as a result of positive earnings in the U.S. and Canada. During the year ended December 31, 2020, a valuation allowance of $2,900 million was recorded as a result of cumulative three-year losses in the U.S. and Canada which was determined to be significant negative evidence to overcome. Included in the valuation allowance were capital losses in the amount of $1.2 billion for Canadian tax purposes associated with the U.S. Domestication in the first quarter of 2020. If it is determined the capital losses can be utilized at a future date, a reduction in the valuation allowance will be recorded. The effective tax rate of (2.2) percent for the year ended December 31, 2022 is lower than the U.S. federal statutory tax rate of 21 percent primarily due to reductions in valuation allowances offset by certain non-taxable items. For the year ended December 31, 2021, the effective tax rate of (14.3) percent was lower than the U.S. federal statutory tax rate of 21 percent primarily due to the resolution of prior years’ tax items and changes in valuation allowances. The 2017 Tax Cuts and Jobs Act no longer allows immediate expensing of research and experimentation expenditures for tax years beginning after December 31, 2021. Beginning in 2022, these expenditures have been capitalized and will be amortized over a five-year The net deferred income tax asset (liability) consists of: As at December 31 2022 2021 Deferred Income Tax Assets Property, plant and equipment $ - $ 36 Risk management - 171 Compensation plans 72 67 Interest and other deferred deductions - 19 Net operating and net capital losses carried forward 2,290 2,727 Foreign tax credits - 119 Other 18 7 Less: valuation allowance (1,326 ) (2,733 ) Deferred Income Tax Liabilities Property, plant and equipment (676 ) (381 ) Risk management (10 ) - Deferred income (248 ) - Other (33 ) (36 ) Net Deferred Income Tax Asset (Liability) $ 87 $ (4 ) As at December 31, 2022, Ovintiv has a valuation allowance against certain U.S. federal and state losses in the amount of $47 million (2021 - $1,044 million related to U.S. federal and state losses, U.S. foreign tax credits and U.S. charitable donations) and Canadian net capital losses in the amount of $1,279 million (2021 - $1,689 million related to net operating losses, net capital losses and other tax basis) as it is more likely than not that these benefits will not be realized based on expected future taxable earnings as determined in accordance with the Company’s accounting policies. The net deferred income tax asset (liability) for the following jurisdictions is reflected in the Consolidated Balance Sheet as follows: As at December 31 2022 2021 Deferred Income Tax Assets United States $ 271 $ - Canada - - 271 - Deferred Income Tax Liabilities United States - (4 ) Canada (184 ) - (184 ) (4 ) Net Deferred Income Tax Asset (Liability) $ 87 $ (4 ) Tax basis, loss carryforwards and business credits available are as follows: As at December 31 2022 Expiration Date United States Tax basis $ 5,228 Indefinite Net operating losses (Federal) 4,034 2023 - 2038 (1) Business credits 10 2023 - 2041 Canada Tax basis $ 938 Indefinite Net capital losses 5,350 Indefinite Net operating losses 381 2039 - 2041 (1) Includes net operating losses of $1,211 million which have an indefinite expiration date. During the year ended December 31, 2022, Ovintiv concluded that a portion of the previously unremitted earnings from its foreign subsidiaries is no longer considered to be permanently reinvested. As a result of this change in assertion, the Company recorded a nominal deferred income tax liability on the undistributed earnings that were previously considered permanently reinvested. The Company has a taxable temporary difference of approximately $339 million in respect of unremitted earnings that continue to be permanently reinvested for which a deferred income tax liability of $17 million has not been recognized and becomes subject to taxation upon the remittance of dividends. The deferred tax liability considers U.S. federal, state and foreign withholding tax implications. The following table presents changes in the balance of Ovintiv’s unrecognized tax benefits excluding interest: For the years ended December 31 2022 2021 Balance, Beginning of Year $ (10 ) $ (232 ) Additions for tax positions taken in the current year - (2 ) Additions for tax positions of prior years - (29 ) Settlements - 257 Foreign currency translation 1 (4 ) Balance, End of Year $ (9 ) $ (10 ) The unrecognized tax benefit is reflected in the Consolidated Balance Sheet as follows: As at December 31 2022 2021 Income Tax Receivable $ (1 ) $ (1 ) Deferred Income Tax Liability (1) (8 ) (9 ) Balance, End of Year $ (9 ) $ (10 ) (1) As at December 31, 2021, the unrealized tax benefit was offset against the valuation allowance recognized in Canada. If recognized, all of Ovintiv’s unrecognized tax benefits as at December 31, 2022 would affect Ovintiv’s effective income tax rate. The nature of the unrecognized tax benefits is highly uncertain. As at December 31, 2022, Ovintiv does not anticipate that the amount of unrecognized tax benefits will significantly change during the next 12 months. Ovintiv may recognize interest accrued in respect of unrecognized tax benefits in interest expense. During 2022, Ovintiv recognized an expense of nil (2021 - recovery of $6 million; 2020 - nil) in interest expense. As at December 31, 2022, Ovintiv had no liability recorded (2021 - nil) for interest accrued in respect of unrecognized tax benefits. Included below is a summary of the tax years, by jurisdiction, that remain statutorily open for examination by the taxing authorities. Jurisdiction Taxation Year United States - Federal 2018 - 2022 United States - State 2017 - 2022 Canada - Federal 2015 - 2022 Canada - Provincial 2015 - 2022 Ovintiv and its subsidiaries file income tax returns primarily in the United States and Canada. Issues in dispute for audited years and audits for subsequent years are ongoing and in various stages of completion. |
Accounts Receivable and Accrued
Accounts Receivable and Accrued Revenues | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Accounts Receivable and Accrued Revenues | 7 . Accounts Receivable and Accrued Revenues As at December 31 2022 2021 Trade Receivables and Accrued Revenues Production accruals $ 881 $ 832 Market optimization 376 238 Joint interest and trade receivables 200 102 Derivative settlements 7 9 Corporate and other 26 23 Total Trade Receivables and Accrued Revenues 1,490 1,204 Prepaids 38 28 Deposits and Other 70 67 1,598 1,299 Expected Credit Loss Allowance (4 ) (5 ) $ 1,594 $ 1,294 Ovintiv’s trade receivables and accrued revenues primarily consist of production sales of oil, NGLs and natural gas, product optimization from marketing and recoveries from joint working interest partners. The Company’s receivables are short dated with payments generally due within 30 to 60 days, with no financing element. Trade receivables and accrued revenues are subject to credit risk which is the risk of loss from the potential of a counterparty failing to meet its obligation in accordance with agreed terms. Ovintiv’s credit exposure related to product sales and derivative financial instruments are mitigated through the use of credit policies approved by the Board of Directors which govern credit practices that limit transactions according to counterparties’ credit quality, and regular monitoring and review of counterparties’ credit worthiness. The Company may also request collateral support, including standby letters of credit, from customers that purchase production. Receivables due from joint working interest partners include numerous counterparties ranging from large public companies to small private companies within the oil and gas industry. In the event of non-payment, Ovintiv may be able to mitigate losses through requiring prepayment of future costs and netting outstanding receivables against associated revenue payables to the interest owner. The Company monitors ongoing credit exposure through active review of counterparty balances against contract terms and due dates, timely dispute resolution, payment confirmation, consideration of the customers’ financial condition and general industry market conditions. Ovintiv’s estimated credit loss allowance is estimated using historical loss information, current industry conditions and payment practices, as well as reasonable and supportable forecasts of future economic conditions. Credit risk is assessed based on days outstanding and utilizes both internal credit assessments and publicly available credit information. As at December 31, 2022, the current period expected credit loss allowance was $4 million (2021 - $5 million). See Note 24 for more information on credit risk exposures. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2022 | |
Acquisitions And Divestitures [Abstract] | |
Acquisitions and Divestitures | 8 . Acquisitions and Divestitures For the years ended December 31 2022 2021 2020 Acquisitions USA Operations $ 277 $ 11 $ 19 Canadian Operations 9 - - Total Acquisitions 286 11 19 Divestitures USA Operations (230 ) (772 ) (78 ) Canadian Operations 2 (253 ) (11 ) Total Divestitures (228 ) (1,025 ) (89 ) Net Acquisitions & (Divestitures) $ 58 $ (1,014 ) $ (70 ) ACQUISITIONS Acquisitions in the USA Operations in 2022 primarily included property purchases in Permian with oil and liquids-rich potential. DIVESTITURES USA Operations In 2022, divestitures in the USA Operations primarily included the sales of portions of Uinta located in northeastern Utah and Bakken located in northeastern Montana for combined proceeds of approximately $215 million, after closing and other adjustments. In 2021, divestitures in the USA Operations primarily included the sale of Eagle Ford located in south Texas for proceeds of approximately $764 million, after closing and other adjustments. In 2020, divestitures in the USA Operations primarily included the sale of certain properties that did not complement Ovintiv’s existing portfolio of assets. Canadian Operations In 2021, divestitures in the Canadian Operations primarily included the sale of Duvernay located in west central Alberta for proceeds of approximately $238 million, after closing and other adjustments. As part of the Duvernay divestiture, the Company agreed to a contingent consideration arrangement, payable to Ovintiv, in the amount of C$5 million at the end of 2021 and an additional C$10 million at the end of 2022, if the annual average of the WTI reference price for each calendar year was greater than $56 per barrel and $62 per barrel, respectively. The terms of the contingent consideration for both the 2021 and 2022 calendar years were met. In 2020, divestitures in the Canadian Operations primarily included the sale of certain properties that did not complement Ovintiv’s existing portfolio of assets. Amounts received from the Company’s divestiture transactions have been deducted from the respective U.S. and Canadian full cost pools. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | 9 . Property, Plant and Equipment, Net As at December 31 2022 2021 Cost Accumulated DD&A Net Cost Accumulated DD&A Net USA Operations Proved properties $ 41,382 $ (34,280 ) $ 7,102 $ 39,145 $ (33,418 ) $ 5,727 Unproved properties 1,127 - 1,127 1,884 - 1,884 Other 30 - 30 12 - 12 42,539 (34,280 ) 8,259 41,041 (33,418 ) 7,623 Canadian Operations Proved properties 15,672 (14,687 ) 985 16,330 (15,450 ) 880 Unproved properties 45 - 45 60 - 60 Other 14 - 14 11 - 11 15,731 (14,687 ) 1,044 16,401 (15,450 ) 951 Market Optimization 7 (7 ) - 7 (7 ) - Corporate & Other 831 (666 ) 165 873 (686 ) 187 $ 59,108 $ (49,640 ) $ 9,468 $ 58,322 $ (49,561 ) $ 8,761 USA and Canadian Operations’ property, plant and equipment include internal costs directly related to exploration, development and construction activities of $178 million, which have been capitalized during the year ended December 31, 2022 (2021 - $172 million). For the year ended December 31, 2022, Ovintiv did not recognize ceiling test impairments in the USA Operations (2021 - nil; 2020 - $5,580 million) or in the Canadian Operations (2021 - nil; 2020 - nil). The non-cash ceiling test impairments recognized in the USA Operations in 2020 are included with accumulated DD&A in the table above and primarily resulted from the decline in the 12-month average trailing prices, which reduced proved reserves. The 12-month average trailing prices used in the ceiling test calculations reflect benchmark prices adjusted for basis differentials to determine local reference prices, transportation costs and tariffs, heat content and quality. The benchmark prices are disclosed in Note 27. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Other Assets | 1 0 . Other Assets As at December 31 2022 2021 Operating Lease ROU Assets (See Note 13) $ 870 $ 929 Long-Term Investments 21 27 Long-Term Receivables 58 64 Deferred Charges 44 42 Other 11 17 $ 1,004 $ 1,079 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 1 1 . Goodwill As at December 31 2022 2021 United States Balance, beginning and end of year $ 1,938 $ 1,938 Canada Balance, beginning of year 690 687 Foreign currency translation adjustment (44 ) 3 Balance, end of year 646 690 Total Goodwill $ 2,584 $ 2,628 The Company had no additions or dispositions relating to goodwill during 2022 or 2021. The change in the Canada goodwill balance reflects movement due to foreign currency translation. Goodwill was assessed for impairment as at December 31, 2022 and December 31, 2021. The fair values of the United States and Canada reporting units were determined to be greater than the respective carrying values of the reporting units. Accordingly, no goodwill impairments were recognized. The Company has not recognized any historical cumulative goodwill impairments. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | 1 2 . Accounts Payable and Accrued Liabilities As at December 31 2022 2021 Trade Payables $ 436 $ 328 Capital Accruals 196 161 Royalty and Production Accruals 718 643 Market Optimization Accruals 314 266 Outstanding Disbursements 74 32 Payroll & Other Accruals 211 221 Interest Payable 65 108 Derivative Settlements 17 90 Current Portion of Long-Term Incentive Costs (See Note 21) 139 78 Current Portion of Finance Lease Obligations (See Note 13) 6 6 Current Portion of Asset Retirement Obligation (See Note 16) 45 46 $ 2,221 $ 1,979 Payables and accruals are non-interest bearing. Interest payable represents amounts accrued related to Ovintiv’s unsecured notes as disclosed in Note 14. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 1 3 . Leases Operating leases include drilling rigs, compressors, office and buildings, certain land easements and various equipment utilized in the development and production of oil, NGLs and natural gas. The Company has an office building that is accounted for as a finance lease. Subleases relate to office and building leases. The tables below summarize Ovintiv’s operating and finance lease costs and include ROU assets and lease liabilities, amounts recognized in net earnings (loss) during the year and other lease information. As at December 31 (US$ millions, unless otherwise specified) 2022 2021 Consolidated Balance Sheet (1) Operating Lease ROU Assets, in Other Assets $ 870 $ 929 Finance Lease ROU Assets, in Other Property Plant and Equipment 22 27 Operating Lease Liabilities: Current 76 62 Long-term 814 889 Finance Lease Liabilities: Current, in accounts payable and accrued liabilities 6 6 Long-term, in other liabilities and provisions 27 33 Weighted Average Discount Rate Operating leases 5.39% 5.44% Finance leases 6.11% 6.11% Weighted Average Remaining Lease Term Operating leases 14.0 years 15.3 years Finance leases 4.5 years 5.5 years (1) Total ROU assets and liabilities are recorded at the gross contractual amount. A portion of the future lease payments will be recovered from other working interest owners based on their proportionate share when incurred. For the years ended December 31 2022 2021 Lease Costs (1) Operating Lease Costs, Excluding Short-Term Leases $ 140 $ 145 Finance Lease Costs: Amortization of ROU assets 5 5 Interest on lease liabilities 2 3 Total Finance Lease Costs 7 8 Short-Term Lease Costs 189 206 Variable Lease Costs 14 12 Sublease Income: Operating lease income 48 55 Variable lease income 20 18 Other Information (2) Cash Paid for Amounts Included in the Measurement of Lease Liabilities: Operating cash outflows from operating leases 176 197 Investing cash outflows from operating leases 151 147 Operating cash outflows from finance leases 2 3 Financing cash outflows from finance leases 6 82 Supplemental Non-Cash Information: New ROU operating lease assets and liabilities 75 23 (1) Lease costs include amounts capitalized into property, plant and equipment in the Consolidated Balance Sheet and lease expense recognized in the Consolidated Statement of Earnings. (2) Rights to extend or terminate a lease are included in the lease term when there is reasonable certainty the right will be exercised. Lease contracts include rights to extend leases after the initial term, ranging from month-to-month to less than 10 years Operating lease expense is reflected in the Consolidated Statement of Earnings as follows: For the years ended December 31 2022 2021 Operating Lease Expense Transportation and processing $ 3 $ 3 Operating 70 81 Administrative 101 120 Total Operating Lease Expense $ 174 $ 204 The following table outlines the Company’s future lease payments and lease liabilities related to the Company’s operating and finance leases as at December 31, 2022: 2023 2024 2025 2026 2027 Thereafter Total Operating Leases (1) Expected Future Lease Payments $ 123 $ 104 $ 89 $ 79 $ 76 $ 820 $ 1,291 Less: Discounting 401 Present Value of Future Operating Lease Payments $ 890 Sublease Income (undiscounted) $ (41 ) $ (43 ) $ (43 ) $ (43 ) $ (44 ) $ (414 ) $ (628 ) Finance Leases Expected Future Lease Payments $ 8 $ 8 $ 9 $ 9 $ 4 $ - $ 38 Less: Discounting 5 Present Value of Future Finance Lease Payments $ 33 Sublease Income (undiscounted) (2) $ (8 ) $ (7 ) $ (7 ) $ (7 ) $ (3 ) $ - $ (32 ) (1) Lease payments are presented based on the gross contractual amount. A portion of the future lease payments will be recovered from other working interest owners based on their proportionate share when incurred. (2) Classified as operating lease. There are no material commitments for leases with terms greater than one year that have not yet commenced at December 31, 2022. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 1 4 . Long-Term Debt As at December 31 Note 2022 2021 U.S. Dollar Denominated Debt Revolving credit and term loan borrowings A $ 393 $ - U.S. Unsecured Notes: B 5.625% due July 1, 2024 - 1,000 5.375% due January 1, 2026 459 688 8.125% due September 15, 2030 300 300 7.20% due November 1, 2031 350 350 7.375% due November 1, 2031 500 500 6.50% due August 15, 2034 599 750 6.625% due August 15, 2037 390 462 6.50% due February 1, 2038 430 488 5.15% due November 15, 2041 148 203 Total Principal F 3,569 4,741 Increase in Value of Debt Acquired C 27 77 Unamortized Debt Discounts and Issuance Costs D (26 ) (32 ) Total Long-Term Debt $ 3,570 $ 4,786 Current Portion E $ 393 $ - Long-Term Portion 3,177 4,786 $ 3,570 $ 4,786 A) At December 31, 2022, Ovintiv had in place committed revolving U.S. dollar denominated bank credit facilities totaling $3.5 billion which included $2.2 billion on a revolving bank credit facility for Ovintiv Inc. and $1.3 billion on a revolving bank credit facility for a Canadian subsidiary. The facilities are extendible from time to time, but not more than once per year July 2026 At December 31, 2022, the Company had $393 million of commercial paper outstanding under its U.S. CP program maturing at various dates with a weighted average interest rate of approximately 5.24 percent, which is supported by the Company’s credit facilities. The Ovintiv Inc. facility is unsecured and bears interest at either the lenders’ U.S. base rate or SOFR, plus applicable margins. The Canadian subsidiary facility bears interest at the lenders’ rates for Canadian prime, U.S. base rate, Bankers’ Acceptances or SOFR, plus applicable margins. As at December 31, 2022, there were no outstanding amounts under the revolving credit facilities. Ovintiv is subject to a financial covenant in its credit facility agreements whereby financing debt to adjusted capitalization cannot exceed 60 percent. Financing debt primarily includes total long-term debt and finance lease obligations. Adjusted capitalization is calculated as the sum of total financing debt, shareholders’ equity and a $7.7 billion equity adjustment for cumulative historical ceiling test impairments recorded in conjunction with the Company’s January 1, 2012 adoption of U.S. GAAP. As at December 31, 2022, the Company is in compliance with all financial covenants. Standby fees paid in 2022 relating to revolving credit and term loan agreements were approximately $8 million (2021 - $10 million; 2020 - $8 million) and were included in interest expense in the Consolidated Statement of Earnings. B) UNSECURED NOTES Shelf Prospectus Ovintiv has a U.S. shelf registration statement under which the Company may issue from time to time, debt securities, common stock, preferred stock, warrants, units, share purchase contracts and share purchase units in the United States. The U.S. shelf registration statement expires in March 2023. The ability to issue securities under the U.S. shelf registration statement is dependent upon market conditions and securities law requirements. U.S. Unsecured Notes Unsecured notes include medium-term notes and senior notes that are issued from time to time under trust indentures and have equal priority with respect to the payment of both principal and interest. During the year ended December 31, 2022, the Company repurchased approximately $565 million in principal amount of its senior notes in the open market, which included approximately $229 million in principal amount of its 5.375 percent senior notes due in January 2026, approximately $151 million in principal amount of its 6.5 percent senior notes due in August 2034, approximately $72 million in principal amount of its 6.625 percent senior notes due in August 2037, approximately $58 million in principal amount of its 6.5 percent senior notes due in February 2038 and approximately $55 million in principal amount of its 5.15 percent senior notes due in November 2041. To complete these open market repurchases, the Company paid premiums of $22 million, which are included in interest expense as discussed in Note 4. On June 10, 2022, Ovintiv redeemed the Company’s $1,000 million, 5.625 percent senior notes due July 1, 2024, using cash on hand and proceeds from short-term borrowings. Ovintiv paid approximately $1,072 million in cash including accrued and unpaid interest of $25 million and a make-whole payment of $47 million, which is included in interest expense as discussed in Note 4. On June 18, 2021, the Company redeemed its $600 million, 5.75 percent senior notes due January 30, 2022. Ovintiv paid approximately $632 million in cash including accrued and unpaid interest of $13 million and a make-whole payment of $19 million, which is included in interest expense as discussed in Note 4. On August 16, 2021, the Company completed the redemption of its $518 million, 3.90 percent senior notes due November 15, 2021. The Company redeemed the notes at par and paid approximately $523 million in cash including accrued and unpaid interest of $5 million. The Company used the net proceeds from its Eagle Ford and Duvernay divestitures, as discussed in Note 8, and cash on hand to complete the senior note redemptions in 2021. During the year ended December 31, 2020, Ovintiv repurchased approximately $302 million in principal amount of its senior notes in the open market. The aggregate cash payments related to the note repurchases were $272 million, plus accrued interest, and a net gain of approximately $30 million was recognized in other (gains) losses, net in the Consolidated Statement of Earnings. C) INCREASE IN VALUE OF DEBT ACQUIRED Certain of the notes and debentures of the Company were acquired in business combinations and were accounted for at their fair value at the dates of acquisition. The difference between the fair value and the principal amount of the debt is being amortized over the remaining life of the outstanding debt acquired, which has a weighted average remaining life of approximately six years. D) UNAMORTIZED DEBT DISCOUNTS AND ISSUANCE COSTS Long-term debt premiums and discounts are capitalized within long-term debt and are being amortized using the effective interest method. During 2022, $6 million in issuance costs were capitalized related to the renewal of the Company’s credit facilities. During 2021, no debt premiums or discounts were capitalized. Issuance costs are amortized over the term of the related debt. E) CURRENT PORTION OF LONG-TERM DEBT As at December 31, 2022, the current portion of long-term debt was $393 million (2021 - nil). F) PROJECTED DEBT PAYMENTS Principal Interest As at December 31 Amount Amount 2023 $ 393 $ 232 2024 - 211 2025 - 212 2026 459 199 2027 - 187 Thereafter 2,717 1,253 Total $ 3,569 $ 2,294 As at December 31, 2022, total long-term debt had a carrying value of $3,570 million and a fair value of $3,648 million (2021 - carrying value of $4,786 million and a fair value of $5,804 million). The estimated fair value of long-term borrowings is categorized within Level 2 of the fair value hierarchy and has been determined based on market information of long-term debt with similar terms and maturity, or by discounting future payments of interest and principal at interest rates expected to be available to the Company at period end. |
Other Liabilities and Provision
Other Liabilities and Provisions | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities and Provisions | 1 5 . Other Liabilities and Provisions As at December 31 2022 2021 Finance Lease Obligations (See Note 13) $ 27 $ 33 Pensions and Other Post-Employment Benefits (See Note 22) 73 104 Long-Term Incentive Costs (See Note 21) 14 36 Other Derivative Contracts (See Notes 23, 24) 5 5 Other 12 12 $ 131 $ 190 |
Asset Retirement Obligation
Asset Retirement Obligation | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation | 1 6 . Asset Retirement Obligation As at December 31 2022 2021 Asset Retirement Obligation, Beginning of Year $ 385 $ 440 Liabilities Incurred and Acquired 4 8 Liabilities Settled and Divested (128 ) (91 ) Change in Estimated Future Cash Outflows 58 5 Accretion Expense 18 22 Foreign Currency Translation (11 ) 1 Asset Retirement Obligation, End of Year $ 326 $ 385 Current Portion (See Note 12) $ 45 $ 46 Long-Term Portion 281 339 $ 326 $ 385 |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2022 | |
Class Of Stock Disclosures [Abstract] | |
Share Capital | 1 7 . Share Capital AUTHORIZED Subsequent to the Reorganization as described in Note 1 and as at December 31, 2022, Ovintiv is authorized to issue 750 million shares of common stock, par value $0.01 per share, and 25 million shares of preferred stock, par value $0.01 per share. No shares of preferred stock are outstanding. ISSUED AND OUTSTANDING As at December 31 2022 2021 2020 Number (millions) Amount Number (millions) Amount Number (millions) Amount Shares of Common Stock Outstanding, Beginning of Year 258.0 $ 3 259.8 $ 3 259.8 $ 7,061 Shares of Common Stock Purchased (14.7 ) - (3.1 ) - - - Shares of Common Stock Issued 2.4 - 1.3 - - - Reclassification of Share Capital due to the Reorganization (See Note 1) - - - - - (7,058 ) Shares of Common Stock Outstanding, End of Year 245.7 $ 3 258.0 $ 3 259.8 $ 3 In conjunction with the Reorganization, the amount recognized in share capital in excess of Ovintiv’s established par value of $0.01 per share was reclassified to paid in surplus. Accordingly, approximately $7,058 million was reclassified. NORMAL COURSE ISSUER BID On September 28, 2022, Ovintiv announced it had received regulatory approval for the renewal of its NCIB program, that enables the Company to purchase, for cancellation or return to treasury, up to approximately 24.8 million shares of common stock over a 12-month period from October 3, 2022 to October 2, 2023. During the year ended December 31, 2022, the Company purchased approximately 3.5 million shares under its current NCIB program and 11.2 million shares under its previous NCIB program, which extended from October 1, 2021 to September 30, 2022. Total consideration of approximately $719 million was paid to complete the share repurchases, of which $147 thousand was charged to share capital and $719 million was charged to paid in surplus. During the year ended December 31, 2021, the Company purchased approximately 3.1 million shares under its previous NCIB program for total consideration of approximately $111 million. Of the amount paid, $28 thousand was charged to share capital and $111 million was charged to paid in surplus. All purchases were made in accordance with the respective NCIB programs at prevailing market prices plus brokerage fees, with consideration allocated to share capital up to the par value of the shares, with any excess allocated to paid in surplus. DIVIDENDS During the year ended December 31, 2022, the Company declared and paid dividends of $0.95 per share of common stock, totaling $239 million (2021 - $0.4675 per share of common stock, totaling $122 million; 2020 - $0.375 per share of common stock, totaling $97 million). Ovintiv’s quarterly dividend payment in 2022 was $0.20 per share of common stock in the first quarter and $0.25 per share of common stock for each of the second, third and fourth quarters. Ovintiv’s quarterly dividend payment in 2021 was $0.09375 per share of common stock for each of the first two quarters and $0.14 per share of common stock for the third and fourth quarters. The quarterly dividend payment in 2020 was $0.09375 per share of common stock. On February 27, 2023, the Board of Directors declared a dividend of $0.25 per share of common stock payable on March 31, 2023 to common shareholders of record as of March 15, 2023. EARNINGS PER SHARE OF COMMON STOCK The following table presents the calculation of net earnings (loss) per share of common stock: For the years ended December 31 (US$ millions, except per share amounts) 2022 2021 2020 Net Earnings (Loss) $ 3,637 $ 1,416 $ (6,097 ) Number of Shares of Common Stock: Weighted average shares of common stock outstanding - Basic 253.6 260.4 259.8 Effect of dilutive securities (1) 4.8 6.0 - Weighted Average Shares of Common Stock Outstanding - Diluted 258.4 266.4 259.8 Net Earnings (Loss) per Share of Common Stock Basic $ 14.34 $ 5.44 $ (23.47 ) Diluted (1) 14.08 5.32 (23.47 ) (1) As at December 31, 2020, all of Ovintiv’s equity-settled awards were determined to be antidilutive and therefore are excluded from the calculation of fully diluted net earnings (loss) per share of common stock. See Note 21 for further information. STOCK-BASED COMPENSATION PLANS Ovintiv’s Performance Share Unit (“PSU”) and Restricted Share Unit (“RSU”) stock-based compensation plans allow the Company to settle the awards either in cash or in the Company’s common stock. Accordingly, Ovintiv issued 2.4 million shares of common stock during the year ended December 31, 2022 (2021 - 1.3 million shares of common stock) as certain PSU and RSU grants vested during the year. Certain PSUs and RSUs are classified as equity-settled if the Company has sufficient common stock held in reserve for issuance. These awards are included in the calculation of fully diluted net earnings (loss) per share of common stock if dilutive. Ovintiv’s stock options with associated Tandem Stock Appreciation Rights (“TSARs”) give the employee the right to purchase shares of common stock of the Company or receive cash. Historically, most holders of options have elected to exercise their TSAR s in exchange for a cash payment. As a result, outstanding options are not considered potentially dilutive securities. Following shareholder approval in the second quarter of 2022, the Company added 6.0 million shares of common stock to its reserve for issuance under its stock-based compensation plans. Subsequent to the shareholder approval, an aggregate of 13.4 See Note 21 for further information on Ovintiv’s outstanding and exercisable TSARs, PSUs and RSUs. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income | 1 8 . Accumulated Other Comprehensive Income For the years ended December 31 2022 2021 2020 Foreign Currency Translation Adjustment Balance, Beginning of Year $ 1,044 $ 1,042 $ 1,004 Change in Foreign Currency Translation Adjustment (107 ) 2 38 Balance, End of Year $ 937 $ 1,044 $ 1,042 Pension and Other Post-Employment Benefit Plans Balance, Beginning of Year $ 48 $ 34 $ 42 Other Comprehensive Income Before Reclassifications: Net actuarial gains and (losses) (See Note 22) 13 14 (10 ) Income taxes (3 ) (4 ) 2 Net prior service costs from plan amendment (See Note 22) - 11 - Income taxes - (2 ) - Amounts Reclassified from Other Comprehensive Income: Reclassification of net actuarial (gains) and losses to net earnings (See Note 22) (6 ) (8 ) (9 ) Income taxes 2 2 2 Reclassification of net prior service costs to net earnings (See Note 22) - 1 2 Income taxes - - - Curtailment in net defined periodic benefit cost (See Note 22) - - 5 Income taxes - - (1 ) Settlement in net defined periodic benefit cost (See Note 22) - - 2 Income taxes - - (1 ) Balance, End of Year $ 54 $ 48 $ 34 Total Accumulated Other Comprehensive Income $ 991 $ 1,092 $ 1,076 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2022 | |
Variable Interest Entity Not Primary Beneficiary Disclosures [Abstract] | |
Variable Interest Entities | 19 . Variable Interest Entities Veresen Midstream Limited Partnership Veresen Midstream Limited Partnership (“VMLP”) provides gathering, compression and processing services under various agreements related to the Company’s development of liquids and natural gas production in the Montney play. As at December 31, 2022, VMLP provides approximately 1,160 MMcf/d of natural gas gathering and compression and 923 MMcf/d of natural gas processing under long-term service agreements with remaining terms ranging from nine to 23 years and have various renewal terms providing up to a potential maximum of 10 years. Ovintiv has determined that VMLP is a variable interest entity and that Ovintiv holds variable interests in VMLP. Ovintiv is not the primary beneficiary as the Company does not have the power to direct the activities that most significantly impact VMLP’s economic performance. These key activities relate to the construction, operation, maintenance and marketing of the assets owned by VMLP. The variable interests arise from certain terms under the various long-term service agreements and include: i) a take or pay for volumes in certain agreements; ii) an operating fee of which a portion can be converted into a fixed fee once VMLP assumes operatorship of certain assets; and iii) a potential payout of minimum costs in certain agreements. The potential payout of minimum costs will be assessed in the eighth year of the assets’ service period and is based on whether there is an overall shortfall of total system cash flows from natural gas gathered and compressed under certain agreements. The potential payout amount can be reduced in the event VMLP markets unutilized capacity to third-party users. Ovintiv is not required to provide any financial support or guarantees to VMLP. As a result of Ovintiv’s involvement with VMLP, the maximum total exposure to loss related to the commitments under the agreements is estimated to be $1,436 million as at December 31, 2022. The estimate comprises the take or pay volume commitments and the potential payout of minimum costs. The take or pay volume commitments associated with certain gathering and processing assets are included in Note 26 under Transportation and Processing. The potential payout requirement is highly uncertain as the amount is contingent on future production estimates, pace of development and downstream transportation constraints. As at December 31, 2022, accounts payable and accrued liabilities included $0.4 million related to the take or pay commitment. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | 2 0 . Restructuring Charges In June 2020, Ovintiv undertook a plan to reduce its workforce by approximately 25 percent as part of a company-wide reorganization in response to the low commodity price environment resulting from the global pandemic and the Company’s planned reductions in capital spending. During 2021, the Company incurred total restructuring charges of $14 million (2020 - $90 million), before tax, primarily related to severance costs. The Company completed its reorganization work in 2022. Restructuring charges are included in administrative expense presented in the Corporate and Other segment in the Consolidated Statement of Earnings. For the years ended December 31 2022 2021 2020 Severance and Benefits $ - $ 14 $ 88 Outplacement, Moving and Other Expenses - - 2 Restructuring Expenses $ - $ 14 $ 90 As at December 31 2022 2021 2020 Outstanding Restructuring Accrual, Beginning of Year $ 3 $ 14 $ 8 Restructuring Expenses Incurred - 14 90 Restructuring Costs Paid (3 ) (25 ) (84 ) Outstanding Restructuring Accrual, End of Year (1) $ - $ 3 $ 14 (1) Included in accounts payable and accrued liabilities in the Consolidated Balance Sheet. |
Compensation Plans
Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Compensation Plans | 2 1 . Compensation Plans Ovintiv has a number of compensation arrangements under which the Company awards various types of long-term incentive grants to eligible employees and Directors. They may include Stock Appreciation Rights (“SARs”), TSARs, PSUs, Deferred Share Units (“DSUs”) and RSUs. Ovintiv accounts for certain PSUs and RSUs as equity-settled stock-based payment transactions provided there is sufficient common stock held in reserve for issuance. SARs, TSARs and DSUs are accounted for as cash-settled stock-based payment transactions. The Company accrues compensation costs over the vesting period based on the fair value of the rights determined using the Black-Scholes-Merton or other appropriate fair value models. During the second quarter of 2022, Ovintiv’s shareholders approved an increase to the number of shares of common stock held in reserve for issuance under the Company’s stock-based compensation plans. Accordingly, certain PSU awards and RSU awards were modified and reclassified as equity-settled share-based payment transactions at the modification date. The modification impacted all employees and there was no incremental compensation cost recognized at the modification date. The Company has recognized the following share-based compensation costs: For the years ended December 31 2022 2021 2020 Total Compensation Costs of Transactions Classified as Cash-Settled $ 152 $ 118 $ 42 Total Compensation Costs of Transactions Classified as Equity-Settled 82 47 3 Less: Total Share-Based Compensation Costs Capitalized (32 ) (27 ) (12 ) Total Share-Based Compensation Expense (Recovery) $ 202 $ 138 $ 33 Recognized in the Consolidated Statement of Earnings in: Operating $ 38 $ 31 $ 10 Administrative 164 107 23 $ 202 $ 138 $ 33 As at December 31, 2022, the liability for cash-settled share-based payment transactions totaled $153 million (2021 - $114 million), of which $139 million (2021 - $78 million) is recognized in accounts payable and accrued liabilities and $14 million (2021 - $36 million) is recognized in other liabilities and provisions in the Consolidated Balance Sheet. The following sections outline certain information related to Ovintiv’s compensation plans as at December 31, 2022. A ) STOCK APPRECIATION RIGHTS U.S. dollar denominated SARs are granted to eligible U.S.-based employees, which entitle the employee to receive a cash payment equal to the excess of the market price of Ovintiv’s shares of common stock at the time of exercise over the original grant price of the right. SARs granted vest and are exercisable at 30 percent of the number granted after one year, an additional 30 percent of the number granted after two years, are fully exercisable after three years and expire seven years after the date granted. SARs are classified as a liability and remeasured at the end of each reporting period. The following table summarizes information related to the U.S. dollar denominated SARs: As at December 31 2022 2021 Outstanding SARs (thousands of units) Weighted Average Exercise Price (US$) Weighted Average Remaining Contractual Life (Years) Outstanding SARs (thousands of units) Weighted Average Exercise Price (US$) Weighted Average Remaining Contractual Life (Years) Outstanding, Beginning of Year 1,150 38.89 2.2 660 38.03 Granted - - 682 35.11 Exercised (1) (401 ) 22.14 (177 ) 20.50 Forfeited - - (15 ) 45.35 Expired (219 ) 56.75 - - Outstanding, End of Year (2) 530 44.17 2.4 1,150 38.89 2.2 Vested and Exercisable, End of Year (3) 530 44.17 2.4 1,021 39.54 1.9 Expected to Vest (4) - - - 129 33.77 4.3 (1) The intrinsic value of option awards exercised and cash-settled during 2022 was $11 million (2021 - $2 million; 2020 - nil). (2) The intrinsic value of option awards outstanding at December 31, 2022, was $14 million (2021 - $15 million). (3) The intrinsic value of option awards vested and exercisable at December 31, 2022, was $14 million (2021 - $14 million). (4) The intrinsic value of option awards expected to vest at December 31, 2021, was $1 million. The following weighted average assumptions were used to determine the fair value of SARs outstanding: US$ Share Units As at December 31 2022 2021 2020 Risk Free Interest Rate 4.02% 0.94% 0.20% Dividend Yield 1.97% 1.66% 2.61% Expected Volatility Rate (1) 107.80% 106.20% 104.53% Expected Term 1.6 yrs 1.4 yrs 2.3 yrs Market Share Price US$50.71 US$33.70 US$14.36 Weighted Average Grant Date Fair Value US$44.17 US$38.89 US$38.03 (1) Volatility was estimated using historical rates. As at December 31, 2022, there were no unrecognized compensation costs (2021 - $0.2 million) related to unvested SARs. B ) TANDEM STOCK APPRECIATION RIGHTS All options to purchase shares of common stock issued to eligible Canadian-based employees under Ovintiv’s Stock Option Plan have associated TSARs attached. In lieu of exercising the option, the associated TSARs give the option holder the right to purchase shares of common stock of the Company or receive a cash payment equal to the excess of the market price of Ovintiv’s shares of common stock at the time of exercise over the original grant price. TSARs granted vest and are exercisable at 30 percent of the number granted after one year, an additional 30 percent of the number granted after two years, are fully exercisable after three years and expire seven years after the date granted. TSARs are classified as a liability and remeasured at the end of each reporting period. The following table summarizes information related to the TSARs: As at December 31 2022 2021 Outstanding TSARs (thousands of units) Weighted Average Exercise Price (C$) Weighted Average Remaining Contractual Life (Years) Outstanding TSARs (thousands of units) Weighted Average Exercise Price (C$) Weighted Average Remaining Contractual Life (Years) Outstanding, Beginning of Year 733 54.17 2.2 1,586 48.28 Granted - - - - Exercised - SARs (1) (269 ) 36.16 (136 ) 28.01 Exercised - Options (1) - - - - Forfeited - - (717 ) 46.11 Expired (174 ) 71.70 - - Outstanding, End of Year (2) 290 60.31 2.2 733 54.17 2.2 Vested and Exercisable, End of Year (3) 290 60.31 2.2 642 55.38 1.9 Expected to Vest (4) - - - 91 45.64 4.3 (1) The intrinsic value of option awards exercised and cash-settled during 2022 was $6 million (2021 - $2 million; 2020 - nil). (2) The intrinsic value of option awards outstanding at December 31, 2022, was $7 million (2021 - $10 million). (3) The intrinsic value of option awards vested and exercisable at December 31, 2022, was $7 million (2021 - $9 million). (4) The intrinsic value of option awards expected to vest at December 31, 2021, was $1 million. The following weighted average assumptions were used to determine the fair value of TSARs outstanding: C$ Share Units As at December 31 2022 2021 2020 Risk Free Interest Rate 4.02% 0.94% 0.20% Dividend Yield 1.90% 1.65% 2.75% Expected Volatility Rate (1) 106.16% 104.80% 103.64% Expected Term 1.5 yrs 1.4 yrs 1.8 yrs Market Share Price C$68.56 C$42.56 C$18.29 Weighted Average Grant Date Fair Value C$60.31 C$54.17 C$48.28 (1) Volatility was estimated using historical rates. As at December 31, 2022, there were no unrecognized compensation costs (2021 - $0.1 million) related to unvested TSARs. C ) PERFORMANCE SHARE UNITS PSUs are granted to eligible employees, which entitle the employee to receive, upon vesting, one share of Ovintiv common stock for each PSU held or a cash equivalent, at the discretion of the Company. PSUs vest three years from the date granted, provided the employee remains actively employed with Ovintiv on the vesting date. Based on the performance assessment, up to a maximum of two times the original PSU grant may be eligible to vest in respect of the year being measured. The ultimate value of the PSUs will depend upon Ovintiv’s performance relative to predetermined strategic milestones as well as the performance of a specified peer group over a three-year The following tables summarize information related to the PSUs: As at December 31 2022 (1) 2021 U.S. Dollar Denominated Outstanding PSUs Units (thousands) Weighted Average Grant Date Fair Value (US$) Units (thousands) Weighted Average Grant Date Fair Value (US$) Unvested and Outstanding, Beginning of Year 2,427 20.04 1,886 21.80 Granted 312 45.61 833 25.80 Vested and Released (2) (515 ) 35.05 (177 ) 54.65 Units, in Lieu of Dividends 44 20.15 37 20.04 Forfeited (7 ) 16.47 (152 ) 32.96 Unvested and Outstanding, End of Year 2,261 20.17 2,427 20.04 As at December 31 2022 (1) 2021 Canadian Dollar Denominated Outstanding PSUs Units (thousands) Weighted Average Grant Date Fair Value (C$) Units (thousands) Weighted Average Grant Date Fair Value (C$) Unvested and Outstanding, Beginning of Year 1,223 26.75 1,308 34.43 Granted 146 57.95 293 29.34 Vested and Released (2) (321 ) 47.01 (137 ) 68.80 Units, in Lieu of Dividends 21 24.94 20 26.66 Forfeited (21 ) 32.11 (261 ) 46.13 Unvested and Outstanding, End of Year 1,048 24.74 1,223 26.75 (1) During the second quarter of 2022, shareholders approved an increase to the number of shares of common stock held in reserve for issuance under the Company’s stock-based compensation plans. Accordingly, the 2022 annual awards were modified and reclassified as equity-settled awards. The modification date fair value of the awards was US$56.72 per share and C$72.17 per share for the U.S. dollar denominated and Canadian dollar denominated PSUs, respectively. (2) During the year ended December 31, 2022, performance shares that vested and were cash-settled resulted in payments of $22 million (2021 - $3 million; 2020 - $6 million). As at December 31, 2022, there were approximately $43 million of unrecognized compensation costs (2021 - $42 million) related to unvested PSUs. The costs are expected to be recognized over a weighted average period of 0.6 years. D ) DEFERRED SHARE UNITS The Company has in place a program whereby Directors and certain key employees are issued DSUs, which vest immediately, are equivalent in value to a share of Ovintiv common stock and are settled in cash. DSUs are classified as a liability and remeasured at the end of each reporting period based on the change in fair value of the Company’s common stock. Under the DSU Plan, employees have the option to convert either 25 or 50 percent of their annual bonus award into DSUs. The number of DSUs converted is based on the value of the award divided by the closing value of Ovintiv’s share price at the end of the performance period of the bonus award. For both Directors and employees, DSUs can only be redeemed following departure from Ovintiv in accordance with the terms of the respective DSU Plan and must be redeemed prior to December 15 th The following table summarizes information related to the DSUs: (thousands of units) U.S. Dollar Denominated Outstanding DSUs Canadian Dollar Denominated Outstanding DSUs As at December 31 2022 2021 2022 2021 Vested and Outstanding, Beginning of Year 5 - 206 211 Granted 5 5 3 8 Converted from bonus awards - - - - Units, in Lieu of Dividends - - 4 4 Redeemed - - (25 ) (17 ) Vested and Outstanding, End of Year 10 5 188 206 E ) RESTRICTED SHARE UNITS RSUs are granted to eligible employees and Directors. An RSU is a conditional grant to receive a share of Ovintiv common stock or a cash equivalent at the Company’s discretion upon vesting of the RSUs and in accordance with the terms and conditions of the RSU Plans and grant agreements. RSUs issued to employees vest over their three-year RSUs issued to Directors before May 2022 are settled three years from the date granted or following the Director’s departure from Ovintiv, whichever is earlier. Beginning with the RSUs issued in May 2022, all RSU awards issued to Directors are equity-settled immediately upon issuance. The following tables summarize information related to the RSUs: As at December 31 2022 (1) 2021 (2) U.S. Dollar Denominated Outstanding RSUs Units (thousands) Weighted Average Grant Date Fair Value (US$) Units (thousands) Weighted Average Grant Date Fair Value (US$) Unvested and Outstanding, Beginning of Year 5,401 20.92 5,486 21.26 Granted 982 46.14 1,952 23.57 Units, in Lieu of Dividends 67 25.27 83 20.93 Vested and Released (3) (2,932 ) 23.99 (1,720 ) 24.74 Forfeited (149 ) 26.02 (400 ) 21.99 Unvested and Outstanding, End of Year 3,369 25.48 5,401 20.92 As at December 31 2022 (1) 2021 (2) Canadian Dollar Denominated Outstanding RSUs Units (thousands) Weighted Average Grant Date Fair Value (C$) Units (thousands) Weighted Average Grant Date Fair Value (C$) Unvested and Outstanding, Beginning of Year 2,621 28.23 2,912 31.76 Granted 444 58.97 953 29.30 Units, in Lieu of Dividends 30 32.55 41 28.11 Vested and Released (3) (1,484 ) 32.68 (1,035 ) 37.63 Forfeited (71 ) 33.75 (250 ) 34.43 Unvested and Outstanding, End of Year 1,540 32.65 2,621 28.23 (1) During the second quarter of 2022, Ovintiv’s shareholders approved an increase to the number of shares of common stock held in reserve for issuance under the Company’s stock-based compensation plans. Accordingly, the 2022 annual awards were modified and reclassified as equity-settled awards. The modification date fair value of the awards was US$56.72 per share and C$72.17 per share for the U.S. dollar denominated and Canadian dollar denominated RSUs, respectively. ( 2 ) During the third quarter of 2021, the 2021 annual awards were modified and reclassified as equity-settled awards. The modification date fair value of the awards was US$25.66 per share and C$32.07 per share for the U.S. dollar denominated and Canadian dollar denominated RSUs, respectively. ( 3 ) During the year ended December 31, 2022, restricted shares that vested and were cash-settled resulted in payments of $51 million (2021 - $23 million; 2020 - $10 million). As at December 31, 2022, there were approximately $44 million of unrecognized compensation costs (2021 - $43 million) related to unvested RSUs. The costs are expected to be recognized over a weighted average period of 0.6 years. |
Pension and Other Post-Employme
Pension and Other Post-Employment Benefits | 12 Months Ended |
Dec. 31, 2022 | |
General Discussion Of Pension And Other Postretirement Benefits [Abstract] | |
Pension and Other Post-Employment Benefits | 2 2 . Pension and Other Post-Employment Benefits Ovintiv sponsors defined benefit and defined contribution plans, providing pension and other post-employment benefits (“OPEB”) to its employees in the U.S. and Canada. As of January 1, 2003, the defined benefit pension plan was closed to new entrants. The average remaining service period of active employees participating in the defined benefit pension plan is five years and the average remaining life expectancy of inactive employees is 14 years. The average remaining service period of the active employees participating in the OPEB plan is eight years. The Company is required to file an actuarial valuation of its pension plans with the provincial regulator at least every three years, or more frequently if directed by the regulator. The most recent filing was dated December 31, 2021 and the next required filing is expected to be as at December 31, 2024. The following tables set forth changes in the benefit obligations and fair value of plan assets for the Company’s defined benefit pension and other post-employment benefit plans for the years ended December 31, 2022 and 2021, as well as the funded status of the plans and amounts recognized in the Consolidated Financial Statements as at December 31, 2022 and 2021. Defined Benefits OPEB As at December 31 2022 2021 2022 2021 Change in Benefit Obligations Projected Benefit Obligation, Beginning of Year $ 191 $ 211 $ 67 $ 89 Service Cost - - 2 3 Interest Cost 5 5 2 2 Actuarial (Gains) Losses (33 ) (9 ) (13 ) (8 ) Exchange Differences (10 ) 1 (1 ) - Employee Contributions - - 2 2 Benefits Paid (13 ) (17 ) (9 ) (10 ) Plan Amendment - - - (11 ) Projected Benefit Obligation, End of Year $ 140 $ 191 $ 50 $ 67 Change in Plan Assets Fair Value of Plan Assets, Beginning of Year $ 176 $ 193 $ - $ - Actual Return on Plan Assets (27 ) 3 - - Exchange Differences (10 ) 1 - - Employee Contributions - - 2 2 Employer Contributions - - 7 8 Benefits Paid (13 ) (17 ) (9 ) (10 ) Transfers to Defined Contribution Plan (2 ) (4 ) - - Fair Value of Plan Assets, End of Year $ 124 $ 176 $ - $ - Funded Status of Plan Assets, End of Year $ (16 ) $ (15 ) $ (50 ) $ (67 ) Total Recognized Amounts in the Consolidated Balance Sheet Consist of: Other Assets $ 2 $ 10 $ - $ - Current Liabilities - - (7 ) (8 ) Non-Current Liabilities (18 ) (25 ) (43 ) (59 ) Total $ (16 ) $ (15 ) $ (50 ) $ (67 ) Total Recognized Amounts in Accumulated Other Comprehensive Income Consist of: Net Actuarial (Gains) Losses $ 18 $ 19 $ (88 ) $ (82 ) Net Prior Service Costs (7 ) (7 ) 7 7 Total Recognized in Accumulated Other Comprehensive Income, Before Tax $ 11 $ 12 $ (81 ) $ (75 ) The accumulated defined benefit obligation for all defined benefit plans was $190 million as at December 31, 2022 (2021 - $258 million). The following table sets forth the defined benefit plans where the accumulated benefit obligation and projected benefit obligation are in excess of the fair value of the plan assets: Defined Benefits OPEB As at December 31 2022 2021 2022 2021 Projected Benefit Obligation $ (47 ) $ (63 ) $ (50 ) $ (67 ) Accumulated Benefit Obligation (47 ) (63 ) (50 ) (67 ) Fair Value of Plan Assets (1) 29 38 - - (1) The Company does not aggregate benefit plans. Following are the weighted average assumptions used by the Company in determining the defined benefit pension and other post-employment benefit obligations: Defined Benefits OPEB As at December 31 2022 2021 2022 2021 Discount Rate 5.10% 2.80% 5.25% 2.54% Rates of Increase in Compensation Levels 3.24% 3.13% 4.83% 6.18% The following sets forth the total benefit plans expense recognized by the Company: Pension Benefits OPEB For the years ended December 31 2022 2021 2020 2022 2021 2020 Net Defined Periodic Benefit Cost $ - $ - $ 3 $ (3 ) $ (3 ) $ 2 Defined Contribution Plan Expense 24 24 28 - - - Total Benefit Plans Expense $ 24 $ 24 $ 31 $ (3 ) $ (3 ) $ 2 Of the total benefit plans expense, $22 million (2021 - $22 million; 2020 - $27 million) was included in operating expense and $4 million (2021 - $5 million; 2020 - $6 million) was included in administrative expense. Excluding service costs, net defined periodic benefit gains of $5 million (2021 - gains of $6 million; 2020 - nil) were recorded in other (gains) losses, net. The net defined periodic benefit cost is as follows: Defined Benefits OPEB For the years ended December 31 2022 2021 2020 2022 2021 2020 Service Cost $ - $ - $ 1 $ 2 $ 3 $ 4 Interest Cost 5 5 6 2 2 2 Expected Return on Plan Assets (6 ) (6 ) (7 ) - - - Amounts Reclassified from Accumulated Other Comprehensive Income: Amortization of net actuarial (gains) and losses 1 1 1 (7 ) (9 ) (10 ) Amortization of net prior service costs - - - - 1 2 Curtailment of net prior service costs - - - - - 5 Settlement from net prior service costs - - 2 - - - Curtailment - - - - - (1 ) Total Net Defined Periodic Benefit Cost (1) $ - $ - $ 3 $ (3 ) $ (3 ) $ 2 (1) The components of total net defined periodic benefit cost, excluding the service cost component, are included in other (gains) losses, net. Actuarial gains related to changes in the projected benefit obligations were due to an increase in the discount rate used to measure the obligations. The amounts recognized in other comprehensive income are as follows: Defined Benefits OPEB For the years ended December 31 2022 2021 2020 2022 2021 2020 Net Actuarial (Gains) Losses $ - $ (6 ) $ 6 $ (13 ) $ (8 ) $ 4 Net Prior Service Costs from Plan Amendment - - - - (11 ) - Amortization of Net Actuarial Gains and (Losses) (1 ) (1 ) (1 ) 7 9 10 Amortization of Net Prior Service Costs - - - - (1 ) (2 ) Curtailment of Net Prior Service Costs - - - - - (5 ) Settlement from Net Prior Service Costs - - (2 ) - - - Total Amounts Recognized in Other Comprehensive (Income) Loss, Before Tax $ (1 ) $ (7 ) $ 3 $ (6 ) $ (11 ) $ 7 Total Amounts Recognized in Other Comprehensive (Income) Loss, After Tax $ (1 ) $ (5 ) $ 3 $ (5 ) $ (9 ) $ 5 Following are the weighted average assumptions used by the Company in determining the net periodic pension and other post-retirement benefit costs: Defined Benefits OPEB For the years ended December 31 2022 2021 2020 2022 2021 2020 Discount Rate 5.10 % 2.25 % 3.00 % 2.46 % 2.08 % 2.90 % Long-Term Rate of Return on Plan Assets 3.85 % 3.00 % 3.75 % - - - Rates of Increase in Compensation Levels 3.24 % 3.13 % 3.12 % 4.83 % 6.33 % 5.92 % The Company’s assumed health care cost trend rates are as follows: For the years ended December 31 2022 2021 2020 Health Care Cost Trend Rate for Next Year 6.16 % 6.15 % 6.42 % Rate to Which the Cost Trend Rate is Assumed to Decline (Ultimate Trend Rate) 5.00 % 5.00 % 5.00 % Year that the Rate Reaches the Ultimate Trend Rate 2027 2026 2026 The Company does not expect to contribute to its defined benefit pension plans in 2023. The Company’s OPEB plans are funded on an as required basis. The following provides an estimate of benefit payments for the next 10 years. These estimates reflect benefit increases due to continuing employee service. Defined Benefit Pension Payments Other Benefit Payments 2023 $ 13 $ 7 2024 13 6 2025 13 6 2026 13 5 2027 12 5 2028 - 2032 56 18 The Company’s registered and other defined benefit pension plan assets are presented by investment asset category and input level within the fair value hierarchy as follows: As at December 31 2022 Level 1 Level 2 Level 3 Total Investments: Cash and Cash Equivalents $ 17 $ - $ - $ 17 Fixed Income - 66 - 66 Equity - 41 - 41 Fair Value of Plan Assets, End of Year $ 17 $ 107 $ - $ 124 As at December 31 2021 Level 1 Level 2 Level 3 Total Investments: Cash and Cash Equivalents $ 19 $ 1 $ - $ 20 Fixed Income - 94 - 94 Equity - 62 - 62 Fair Value of Plan Assets, End of Year $ 19 $ 157 $ - $ 176 Fixed Income investments consist of Canadian bonds issued by investment grade companies. Equity investments consist of international securities and securities held in the U.S. The fair values of these securities are based on dealer quotes, quoted market prices and net asset values. Registered pension plan assets were invested by the Company in the following as at December 31, 2022: 67 percent Bonds (2021 - 67 percent), and 33 percent U.S. and Foreign Equity (2021 - 33 percent). The expected long-term rate of return is 4.70 percent. The expected rate of return on pension plan assets is based on historical and projected rates of return for each asset class in the plan investment portfolio. The actual return on plan assets was a loss of $27 million (2021 - gain of $3 million). The asset allocation structure is subject to diversification requirements and constraints, which reduce risk by limiting exposure to individual equity investment, credit rating categories and foreign currency exposure. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 2 3 . Fair Value Measurements The fair values of cash and cash equivalents, accounts receivable and accrued revenues, and accounts payable and accrued liabilities approximate their carrying amounts due to the short-term maturity of those instruments. The fair values of restricted cash and marketable securities included in other assets approximate their carrying amounts due to the nature of the instruments held. Fair value information related to pension plan assets is included in Note 22. Recurring fair value measurements are performed for risk management assets and liabilities and other derivative contracts, as discussed further in Note 24. These items are carried at fair value in the Consolidated Balance Sheet and are classified within the three levels of the fair value hierarchy in the following tables. Fair value changes and settlements for amounts related to risk management assets and liabilities are recognized in revenues and foreign exchange gains and losses according to their purpose. As at December 31, 2022 Level 1 Quoted Prices in Active Markets Level 2 Other Observable Inputs Level 3 Significant Unobservable Inputs Total Fair Value Netting (1) Carrying Amount Risk Management Assets Commodity Derivatives: Current assets $ - $ 93 $ 12 $ 105 $ (53 ) $ 52 Long-term assets - 34 - 34 - 34 Foreign Currency Derivatives: Current assets - 1 - 1 - 1 Risk Management Liabilities Commodity Derivatives: Current liabilities $ - $ 128 $ - $ 128 $ (53 ) $ 75 Foreign Currency Derivatives: Current liabilities - 11 - 11 - 11 Other Derivative Contracts (2) Long-term in other liabilities and provisions $ - $ 5 $ - $ 5 $ - $ 5 As at December 31, 2021 Level 1 Quoted Prices in Active Markets Level 2 Other Observable Inputs Level 3 Significant Unobservable Inputs Total Fair Value Netting (1) Carrying Amount Risk Management Assets Commodity Derivatives: Current assets $ - $ 10 $ - $ 10 $ (10 ) $ - Long-term assets - 1 - 1 (1 ) - Foreign Currency Derivatives: Current assets - 5 - 5 (4 ) 1 Risk Management Liabilities Commodity Derivatives: Current liabilities $ - $ 536 $ 181 $ 717 $ (10 ) $ 707 Long-term liabilities - 26 - 26 (1 ) 25 Foreign Currency Derivatives: Current liabilities - - - - (4 ) (4 ) Other Derivative Contracts ( 3 ) Current in accounts receivable and accrued revenues $ - $ - $ 9 $ 9 $ - $ 9 Current in accounts payable and accrued liabilities - 1 - 1 - 1 Long-term in other liabilities and provisions - 5 - 5 - 5 (1) Netting to offset derivative assets and liabilities where the legal right and intention to offset exists, or where counterparty master netting arrangements contain provisions for net settlement. (2) Includes credit derivatives associated with certain prior years’ divestitures. (3) Includes credit derivatives and contingent consideration associated with certain prior years’ divestitures. The Company’s Level 1 and Level 2 risk management assets and liabilities consist of NYMEX three-way options, foreign currency swaps and basis swaps with terms to 2025. Level 2 also includes financial guarantee contracts as discussed in Note 24. The fair values of these contracts are estimated using inputs which are either directly or indirectly observable from active markets, such as exchange and other published prices, broker quotes and observable trading activity throughout the term of the instruments. Level 3 Fair Value Measurements As at December 31, 2022, the Company’s Level 3 risk management assets and liabilities consist of WTI three-way options with terms to 2023. The WTI three-way options are a combination of a sold call, a bought put and a sold put. These contracts allow the Company to participate in the upside of commodity prices to the ceiling of the call option and provide the Company with partial downside price protection through the put options. The fair values of these contracts are determined using an option pricing model using observable and unobservable inputs such as implied volatility. The unobservable inputs are obtained from third parties whenever possible and reviewed by the Company for reasonableness. A summary of changes in Level 3 fair value measurements for risk management positions is presented below: Risk Management 2022 2021 Balance, Beginning of Year $ (172 ) $ (74 ) Total Gains (Losses) (449 ) (708 ) Purchases, Sales, Issuances and Settlements: Purchases, sales and issuances (1) - 6 Settlements 633 604 Transfers Out of Level 3 - - Balance, End of Year $ 12 $ (172 ) Change in Unrealized Gains (Losses) During the Year Included in Net Earnings (Loss) $ 184 $ (104 ) (1) Purchases, sales and issuances for the year ended December 31, 2021, reflects the fair value of the contingent consideration arrangement at the closing date of the Duvernay divestiture discussed in Note 8. Quantitative information about unobservable inputs used in Level 3 fair value measurements is presented below as at December 31, 2022: Valuation Technique Unobservable Input Range Weighted Average (1) Risk Management - WTI Options Option Model Implied Volatility 14% - 52% 44% (1) Unobservable inputs were weighted by the relative fair value of the instruments. A 10 percent increase or decrease in implied volatility for the WTI options would cause an approximate corresponding $2 million (2021 - $15 million) increase or decrease to net risk management assets and liabilities. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Risk Management | 2 4 . Financial Instruments and Risk Management A) FINANCIAL INSTRUMENTS Ovintiv’s financial assets and liabilities are recognized in cash and cash equivalents, accounts receivable and accrued revenues, other assets, accounts payable and accrued liabilities, risk management assets and liabilities, long-term debt, and other liabilities and provisions. B) RISK MANAGEMENT ACTIVITIES Ovintiv uses derivative financial instruments to manage its exposure to fluctuating commodity prices and foreign currency exchange rates. The Company does not apply hedge accounting to any of its derivative financial instruments. As a result, gains and losses from changes in the fair value are recognized in net earnings (loss). COMMODITY PRICE RISK Commodity price risk arises from the effect that fluctuations in future commodity prices may have on revenues from production. To partially mitigate exposure to commodity price risk, the Company has entered into various derivative financial instruments. The use of these derivative instruments is governed under formal policies and is subject to limits established by the Board of Directors. Oil and NGLs - To partially mitigate oil and NGL commodity price risk, the Company uses WTI- and NGL-based contracts such as options. Ovintiv has also entered into basis swaps to manage against widening price differentials between various production areas, products and price points. Natural Gas - To partially mitigate natural gas commodity price risk, the Company uses NYMEX-based contracts such as options. Ovintiv has also entered into basis swaps to manage against widening price differentials between various production areas and benchmark price points. FOREIGN EXCHANGE RISK Foreign exchange risk arises from changes in foreign currency exchange rates that may affect the fair value or future cash flows from the Company’s financial assets or liabilities. To partially mitigate the effect of foreign exchange fluctuations on future commodity revenues and expenses, the Company may enter into foreign currency derivative contracts. As at December 31, 2022, the Company has entered into $400 million notional U.S. dollar denominated currency swaps at an average exchange rate of C$1.3160 to US$1, which mature monthly throughout 2023. RISK MANAGEMENT POSITIONS AS AT DECEMBER 31, 2022 Notional Volumes Term Average Price Fair Value Oil and NGL Contracts US$/bbl WTI Three-Way Options Sold call / bought put / sold put 38.0 Mbbls/d 2023 113.35 / 65.33 / 50.00 $ 12 Basis Contracts (1) 2023 - Oil and NGLs Fair Value Position 12 Natural Gas Contracts US$/Mcf NYMEX Three-Way Options Sold call / bought put / sold put 397 MMcf/d 2023 8.27 / 3.68 / 2.63 16 Basis Contracts (2) 2023 (52 ) 2024 26 2025 8 Other Financial Positions 1 Natural Gas Fair Value Position (1 ) Other Derivative Contracts Fair Value Position (3) (5 ) Foreign Currency Contracts Fair Value Position (4) 2023 (10 ) Total Fair Value Position $ (4 ) (1) Ovintiv has entered into oil differential swaps associated with Canadian condensate and WTI. ( 2 ) Ovintiv has entered into natural gas basis swaps associated with AECO, Malin, Waha and NYMEX. ( 3 ) Includes credit derivatives associated with certain prior years’ divestitures. ( 4 ) Ovintiv has entered into U.S. dollar denominated fixed-for-floating average currency swaps to protect against fluctuations between the Canadian and U.S. dollars. EARNINGS IMPACT OF REALIZED AND UNREALIZED GAINS (LOSSES) ON RISK MANAGEMENT POSITIONS For the years ended December 31 2022 2021 2020 Realized Gains (Losses) on Risk Management Commodity and Other Derivatives: Revenues (1) $ (2,608 ) $ (1,395 ) $ 711 Foreign Currency Derivatives: Foreign exchange (5 ) 33 (1 ) $ (2,613 ) $ (1,362 ) $ 710 Unrealized Gains (Losses) on Risk Management Commodity and Other Derivatives: Revenues (2) $ 741 $ (488 ) $ (204 ) Foreign Currency Derivatives: Foreign exchange (15 ) (21 ) 13 $ 726 $ (509 ) $ (191 ) Total Realized and Unrealized Gains (Losses) on Risk Management, net Commodity and Other Derivatives: Revenues (1) (2) $ (1,867 ) $ (1,883 ) $ 507 Foreign Currency Derivatives: Foreign exchange (20 ) 12 12 $ (1,887 ) $ (1,871 ) $ 519 (1) Includes a realized gain of $6 million for the year ended December 31, 2022 (2021 - gain of $1 million; 2020 - gain of $2 million) related to other derivative contracts. (2) Includes an unrealized loss of $2 million for the year ended December 31, 2022 (2021 - gain of $4 million; 2020 - loss of $1 million) related to other derivative contracts. RECONCILIATION OF UNREALIZED RISK MANAGEMENT POSITIONS FROM JANUARY 1 TO DECEMBER 31 2022 2021 2020 Fair Value Total Unrealized Gain (Loss) Total Unrealized Gain (Loss) Total Unrealized Gain (Loss) Fair Value of Contracts, Beginning of Year $ (724 ) Change in Fair Value of Contracts in Place at Beginning of Year and Contracts Entered into During the Year (1,887 ) $ (1,887 ) $ (1,871 ) $ 519 Settlement of Other Derivative Contracts (6 ) Fair Value of Contracts Realized During the Year 2,613 2,613 1,362 (710 ) Fair Value of Contracts, End of Year $ (4 ) $ 726 $ (509 ) $ (191 ) Risk management assets and liabilities arise from the use of derivative financial instruments and are measured at fair value. See Note 23 for a discussion of fair value measurements. UNREALIZED RISK MANAGEMENT POSITIONS As at December 31 2022 2021 Risk Management Assets Current $ 53 $ 1 Long-term 34 - 87 1 Risk Management Liabilities Current 86 703 Long-term - 25 86 728 Other Derivative Contract Assets Current in accounts receivable and accrued revenues - 9 - 9 Other Derivative Contract Liabilities Current in accounts payable and accrued liabilities - 1 Long-term in other liabilities and provisions 5 5 5 6 Net Risk Management Assets (Liabilities) and Other Derivative Contracts $ (4 ) $ (724 ) C) CREDIT RISK Credit risk arises from the potential that the Company may incur a loss if a counterparty to a financial instrument fails to meet its obligation in accordance with agreed terms. While exchange-traded contracts are subject to nominal credit risk due to the financial safeguards established by the exchanges and clearing agencies, over-the-counter traded contracts expose Ovintiv to counterparty credit risk. Counterparties to the Company’s derivative financial instruments consist primarily of major financial institutions and companies within the energy industry. This credit risk exposure is mitigated through the use of credit policies approved by the Board of Directors governing the Company’s credit portfolio including credit practices that limit transactions according to counterparties’ credit quality. Mitigation strategies may include master netting arrangements, requesting collateral, purchasing credit insurance, and/or transacting credit derivatives. The Company executes commodity derivative financial instruments under master agreements that have netting provisions that provide for offsetting payables against receivables. Ovintiv actively evaluates the creditworthiness of its counterparties, assigns appropriate credit limits and monitors credit exposures against those assigned limits. As at December 31, 2022, Ovintiv’s maximum exposure of loss due to credit risk from derivative financial instrument assets on a gross and net fair value basis was $140 million and $87 million, respectively, as disclosed in Note 23. The Company had no significant credit derivatives in place and held no collateral at December 31, 2022. Any cash equivalents include high-grade, short-term securities, placed primarily with financial institutions with strong investment grade ratings. Any foreign currency agreements entered into are with major financial institutions that have investment grade credit ratings. A substantial portion of the Company’s accounts receivable are with customers and working interest owners in the oil and gas industry and are subject to normal industry credit risks. As at December 31, 2022, approximately 88 percent (2021 - 90 percent) of Ovintiv’s accounts receivable and financial derivative credit exposures were with investment grade counterparties. During 2015 and 2017, the Company entered into agreements resulting from divestitures, which may require Ovintiv to fulfill certain payment obligations on the take or pay volume commitments assumed by the purchasers. The circumstances that would require Ovintiv to perform under the agreements include events where a purchaser fails to make payment to the guaranteed party and/or a purchaser is subject to an insolvency event. The agreements expire in June 2024 with a fair value recognized of $5 million as at December 31, 2022 (2021 - $6 million). The maximum potential amount of undiscounted future payments is $34 million as at December 31, 2022, and is considered unlikely. |
Supplementary Information
Supplementary Information | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplementary Information | 2 5 . Supplementary Information Supplemental disclosures to the Consolidated Statement of Cash Flows are presented below: A) NET CHANGE IN NON-CASH WORKING CAPITAL For the years ended December 31 2022 2021 2020 Operating Activities Accounts receivable and accrued revenues $ (304 ) $ (333 ) $ 146 Accounts payable and accrued liabilities 50 275 (26 ) Current portion of operating lease liabilities 14 (7 ) (11 ) Income tax receivable and payable 53 24 30 $ (187 ) $ (41 ) $ 139 B) NON-CASH ACTIVITIES For the years ended December 31 2022 2021 2020 Non-Cash Operating Activities ROU operating lease assets and liabilities (See Note 13) $ (75 ) $ (23 ) $ (10 ) Non-Cash Investing Activities Asset retirement obligation incurred (See Note 16) $ 4 $ 8 $ 7 Asset retirement obligation change in estimated future cash outflows (See Note 16) 58 5 (49 ) Property, plant and equipment accruals 35 (9 ) (175 ) Capitalized long-term incentives 4 8 (16 ) Property additions/dispositions, including swaps 126 34 229 Contingent consideration (See Note 8) - 6 - On September 1, 2020, Ovintiv closed an agreement with PetroChina Canada Ltd. (“PCC”) to terminate its joint venture with PCC and transfer the ownership and operation of certain Duvernay shale assets in west central Alberta. In connection with the closing, Ovintiv and PCC agreed to partition the Duvernay acreage and associated infrastructure. For the year ended December 31, 2020, property additions/dispositions (swaps) included a $203 million non-cash swap related to the Duvernay partition. C) SUPPLEMENTARY CASH FLOW INFORMATION For the years ended December 31 2022 2021 2020 Interest Paid $ 376 $ 370 $ 385 Income Taxes (Recovered), net of Amounts Paid $ (38 ) $ (176 ) $ (52 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 2 6 . Commitments and Contingencies COMMITMENTS The following table outlines the Company’s commitments as at December 31, 2022: Expected Future Payments (undiscounted) 2023 2024 2025 2026 2027 Thereafter Total Transportation and Processing $ 790 $ 687 $ 570 $ 490 $ 463 $ 2,156 $ 5,156 Drilling and Field Services 299 21 - - - - 320 Building Leases 9 9 8 2 - - 28 Total $ 1,098 $ 717 $ 578 $ 492 $ 463 $ 2,156 $ 5,504 Operating leases with terms greater than one year are not included in the commitments table above. The table above includes short-term leases with contract terms less than 12 months, such as drilling rigs and field office leases, as well as non-lease operating cost components associated with building leases. See Note 13 for additional disclosures on leases. Included within transportation and processing in the table above are certain commitments associated with midstream service agreements with VMLP as described in Note 19. Divestiture transactions can reduce certain commitments disclosed above. CONTINGENCIES Ovintiv is involved in various legal claims and actions arising in the normal course of the Company’s operations. Although the outcome of these claims cannot be predicted with certainty, the Company does not expect these matters to have a material adverse effect on Ovintiv’s financial position, cash flows or results of operations. Management’s assessment of these matters may change in the future as certain of these matters are in early stages or are subject to a number of uncertainties. For material matters that the Company believes an unfavorable outcome is reasonably possible, the Company discloses the nature and a range of potential exposures. If an unfavorable outcome were to occur, there exists the possibility of a material impact on the Company’s consolidated net earnings or loss for the period in which the effect becomes reasonably estimable. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated. Such accruals are based on the Company’s information known about the matters, estimates of the outcomes of such matters and experience in handling similar matters. |
Supplementary Oil and Gas Infor
Supplementary Oil and Gas Information | 12 Months Ended |
Dec. 31, 2022 | |
Extractive Industries [Abstract] | |
Supplementary Oil and Gas Information | 2 7 . Supplementary Oil and Gas Information (unaudited) The unaudited supplementary information on oil and natural gas exploration and production activities for 2022, 2021 and 2020 has been presented in accordance with the FASB’s ASC Topic 932, “Extractive Activities - Oil and Gas” and the SEC’s final rule, “Modernization of Oil and Gas Reporting”. Disclosures by geographic area include the United States and Canada. Proved Oil and Natural Gas Reserves The following reserves disclosures reflect estimates of proved reserves, proved developed reserves, and proved undeveloped reserves, net of third-party royalty interests of oil, NGLs and natural gas owned at each year end and changes in proved reserves during each of the last three years. The Company’s estimates of proved reserves are made using available geological and reservoir data as well as production performance data. These estimates are reviewed annually by internal reservoir engineers and revised, either upward or downward, as warranted by additional data. The results of infill drilling are treated as positive revisions due to increases to expected recovery. Other revisions are due to changes in, among other things, development plans, reservoir performance, commodity prices, economic conditions, and government restrictions. Estimates of proved reserves are inherently imprecise and are continually subject to revision based on production history, results of additional exploration and development, price changes and other factors. The following reference prices were utilized in the determination of reserves and future net revenue: Oil & NGLs Natural Gas WTI ($/bbl) Edmonton Condensate (C$/bbl) Henry Hub ($/MMBtu) AECO (C$/MMBtu) Reserves Pricing (1) 2022 $ 93.82 $ 121.18 $ 6.36 $ 5.65 2021 66.56 83.69 3.60 3.26 2020 39.62 49.77 1.98 2.13 (1) All prices were held constant in all future years when estimating net revenues and reserves. PROVED RESERVES (1) (12-MONTH AVERAGE TRAILING PRICES) Oil (MMbbls) NGLs (MMbbls) Natural Gas (Bcf) Total (MMBOE) United States Canada Total United States Canada Total United States Canada Total 2020 Beginning of year 722.4 1.3 723.7 409.4 179.1 588.5 2,441 2,818 5,259 2,188.8 Revisions and improved recovery (2) (221.5 ) (0.5 ) (222.0 ) (29.1 ) (33.1 ) (62.2 ) (323 ) (161 ) (484 ) (364.9 ) Extensions and discoveries 144.3 0.1 144.4 78.1 27.7 105.8 392 372 764 377.5 Purchase of reserves in place 9.9 1.0 10.9 8.4 11.6 20.0 47 94 140 54.3 Sale of reserves in place (9.3 ) - (9.3 ) (7.9 ) (13.4 ) (21.4 ) (95 ) (106 ) (201 ) (64.1 ) Production (55.2 ) (0.2 ) (55.4 ) (29.8 ) (20.5 ) (50.3 ) (194 ) (366 ) (560 ) (199.0 ) End of year 590.5 1.7 592.3 429.1 151.4 580.5 2,268 2,650 4,918 1,992.5 Developed 279.1 1.7 280.9 242.3 76.9 319.3 1,327 1,740 3,067 1,111.3 Undeveloped 311.4 - 311.4 186.7 74.5 261.2 941 910 1,851 881.1 Total 590.5 1.7 592.3 429.1 151.4 580.5 2,268 2,650 4,918 1,992.5 2021 Beginning of year 590.5 1.7 592.3 429.1 151.4 580.5 2,268 2,650 4,918 1,992.5 Revisions and improved recovery (2) (78.7 ) 0.7 (78.0 ) (30.0 ) (20.3 ) (50.3 ) 61 302 363 (67.8 ) Extensions and discoveries 121.2 0.3 121.5 75.1 66.9 142.0 428 1,538 1,966 591.2 Purchase of reserves in place 2.6 - 2.6 1.6 0.9 2.5 7 6 13 7.3 Sale of reserves in place (27.0 ) (1.6 ) (28.6 ) (12.6 ) (8.4 ) (21.0 ) (50 ) (73 ) (123 ) (70.2 ) Production (51.1 ) (0.1 ) (51.2 ) (28.5 ) (20.5 ) (49.0 ) (179 ) (389 ) (568 ) (194.9 ) End of year 557.5 1.1 558.6 434.7 170.0 604.7 2,536 4,033 6,570 2,258.2 Developed 291.0 0.7 291.7 264.3 84.5 348.8 1,621 2,490 4,111 1,325.7 Undeveloped 266.6 0.3 266.9 170.5 85.4 255.9 915 1,543 2,458 932.5 Total 557.5 1.1 558.6 434.7 170.0 604.7 2,536 4,033 6,570 2,258.2 2022 Beginning of year 557.5 1.1 558.6 434.7 170.0 604.7 2,536 4,033 6,570 2,258.2 Revisions and improved recovery (2) (65.1 ) (0.3 ) (65.5 ) 2.9 (36.0 ) (33.2 ) 38 (582 ) (544 ) (189.2 ) Extensions and discoveries 95.2 - 95.2 37.2 31.3 68.5 237 1,005 1,241 370.6 Purchase of reserves in place 15.8 - 15.8 13.7 1.7 15.4 72 16 88 45.9 Sale of reserves in place (20.2 ) (0.6 ) (20.8 ) (0.7 ) (0.6 ) (1.3 ) (5 ) (16 ) (22 ) (25.7 ) Production (48.0 ) - (48.0 ) (29.9 ) (17.3 ) (47.3 ) (180 ) (366 ) (545 ) (186.2 ) End of year 535.2 0.1 535.3 457.8 149.0 606.9 2,698 4,090 6,789 2,273.6 Developed 257.2 0.1 257.3 288.3 71.2 359.5 1,755 2,276 4,031 1,288.7 Undeveloped 278.0 - 278.0 169.5 77.8 247.4 943 1,814 2,757 984.9 Total 535.2 0.1 535.3 457.8 149.0 606.9 2,698 4,090 6,789 2,273.6 (1) Numbers may not add due to rounding. (2) Changes in reserve estimates resulting from application of improved recovery techniques are included in revisions of previous estimates. Definitions: a. “Proved” oil and gas reserves are those quantities of oil and gas which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods and government regulations. b. “Developed” oil and gas reserves are reserves of any category that are expected to be recovered through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well. c. “Undeveloped” oil and gas reserves are reserves of any category that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion. Total Proved reserves increased 15.4 • Revisions and improved recovery of oil, NGLs and natural gas were negative primarily due to changes in the approved development plan of 142.5 MMBOE, negative price revisions of 49.6 MMBOE from higher royalties in Canada due to higher 12-month average trailing prices, and 1.5 MMBOE from revisions other than price, partially offset by 4.4 MMBOE from infill drilling locations. • Extensions and discoveries of oil, NGLs and natural gas increased proved reserves by 370.6 MMBOE due to successful drilling leading to increased technical delineation, as well as new proved undeveloped locations resulting from updated development plans in Montney and Permian. • Purchases of 45.9 MMBOE were primarily properties with oil and liquids-rich potential in Permian. • Sale of reserves in place decreased proved developed reserves by 25.7 MMBOE primarily due to the divestiture of properties held in Uinta. Total Proved reserves increased 265.7 • Revisions and improved recovery of oil, NGLs and natural gas were negative primarily due to changes in the approved development plan of 396.1 MMBOE, partially offset by positive performance revisions of 160.6 MMBOE, higher 12-month average trailing prices of 144.5 MMBOE and 23.2 MMBOE from infill drilling locations. • Extensions and discoveries of oil, NGLs and natural gas increased proved reserves by 591.2 MMBOE due to successful drilling and technical delineation, as well as new proved undeveloped locations resulting from updated development plans in Montney, Permian and Anadarko • Purchases of 7.3 MMBOE were primarily in Permian and a result of acreage trades • Sale of reserves in place decreased proved developed reserves by 70.2 MMBOE primarily due to the divestitures of Eagle Ford located in south Texas and Duvernay located in west central Alberta. Total Proved reserves decreased 196.3 • Revisions and improved recovery of oil, NGLs and natural gas were negative primarily due to changes in the approved development plan of 382.2 MMBOE and lower 12-month average trailing prices of 167.1 MMBOE, partially offset by positive revisions from well performance and development strategy changes of 182.0 MMBOE and from infill drilling locations of 2.4 MMBOE. • Extensions and discoveries of oil, NGLs and natural gas increased proved reserves by 377.5 MMBOE due to successful drilling and technical delineation, as well as new proved undeveloped locations resulting from development plan changes in Permian, Montney, Anadarko and Uinta. • Purchases of 54.3 MMBOE were primarily in Permian and a result of the partition of certain Duvernay shale assets between Ovintiv and PCC. • Sale of reserves in place decreased proved developed reserves by 64.1 MMBOE primarily due to divestitures in Anadarko and Permian, and the partition of certain Duvernay shale assets between Ovintiv and PCC. STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS RELATING TO PROVED OIL AND GAS RESERVES In calculating the standardized measure of discounted future net cash flows, constant price and cost assumptions were applied to Ovintiv’s annual future production from proved reserves to determine cash inflows. Estimates of future net cash flows from proved reserves are computed based on the average beginning-of-the-month prices during the 12-month period for the year. Future production and development costs include estimates for abandonment and dismantlement costs associated with asset retirement obligations and assume the continuation of existing economic, operating and regulatory conditions. Future income taxes are calculated by applying statutory income tax rates to future pre-tax cash flows after provision for the tax cost of the oil and natural gas properties based upon existing laws and regulations. The effect of tax credits is also considered in determining the income tax expense. The discount was computed by application of a 10 percent discount factor to the future net cash flows. Ovintiv cautions that the discounted future net cash flows relating to proved oil and gas reserves are an indication of neither the fair market value of Ovintiv’s oil and natural gas properties, nor the future net cash flows expected to be generated from such properties. The discounted future net cash flows do not include the fair market value of exploratory properties and probable or possible oil and gas reserves, nor is consideration given to the effect of anticipated future changes in oil and natural gas prices, development, asset retirement and production costs, and possible changes to tax and royalty regulations. The prescribed discount rate of 10 percent may not appropriately reflect future interest rates. United States Canada 2022 2021 2020 2022 2021 2020 Future Cash Inflows $ 74,567 $ 51,473 $ 26,093 $ 29,149 $ 18,312 $ 7,156 Less Future: Production costs 17,043 12,272 8,864 8,173 7,679 4,202 Development costs 8,951 5,767 6,187 2,142 2,061 1,859 Income taxes 9,333 5,480 74 4,182 1,695 - Future Net Cash Flows 39,240 27,954 10,968 14,652 6,877 1,095 Less 10% annual discount for estimated timing of cash flows 20,272 13,663 5,895 6,121 2,393 246 Discounted Future Net Cash Flows $ 18,968 $ 14,291 $ 5,073 $ 8,531 $ 4,484 $ 849 Total 2022 2021 2020 Future Cash Inflows $ 103,716 $ 69,785 $ 33,249 Less Future: Production costs 25,216 19,951 13,066 Development costs 11,093 7,828 8,046 Income taxes 13,515 7,175 74 Future Net Cash Flows 53,892 34,831 12,063 Less 10% annual discount for estimated timing of cash flows 26,393 16,056 6,141 Discounted Future Net Cash Flows $ 27,499 $ 18,775 $ 5,922 CHANGES IN STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS RELATING TO PROVED OIL AND GAS RESERVES United States Canada 2022 2021 2020 2022 2021 2020 Balance, Beginning of Year $ 14,291 $ 5,073 $ 10,041 $ 4,484 $ 849 $ 1,575 Changes Resulting From: Sales of oil and gas produced during the year (5,007 ) (3,608 ) (1,605 ) (2,333 ) (1,479 ) (405 ) Discoveries and extensions, net of related costs 2,735 3,102 1,080 2,635 2,119 140 Purchases of proved reserves in place 661 63 98 58 13 44 Sales and transfers of proved reserves in place (278 ) (199 ) (255 ) (28 ) (38 ) (97 ) Net change in prices and production costs 9,059 10,702 (7,119 ) 5,532 3,266 (1,563 ) Revisions to quantity estimates (712 ) (407 ) (2,346 ) (961 ) 201 (188 ) Accretion of discount 1,630 508 1,064 545 85 158 Development costs incurred during the year 1,475 1,139 1,341 339 397 535 Changes in estimated future development costs (2,965 ) (83 ) 2,183 (303 ) 41 652 Other (2 ) 1 - - - (2 ) Net change in income taxes (1,919 ) (2,000 ) 591 (1,437 ) (970 ) - Balance, End of Year $ 18,968 $ 14,291 $ 5,073 $ 8,531 $ 4,484 $ 849 Total 2022 2021 2020 Balance, Beginning of Year $ 18,775 $ 5,922 $ 11,616 Changes Resulting From: Sales of oil and gas produced during the year (7,340 ) (5,087 ) (2,010 ) Discoveries and extensions, net of related costs 5,370 5,221 1,220 Purchases of proved reserves in place 719 76 142 Sales and transfers of proved reserves in place (306 ) (237 ) (352 ) Net change in prices and production costs 14,591 13,968 (8,682 ) Revisions to quantity estimates (1,673 ) (206 ) (2,534 ) Accretion of discount 2,175 593 1,222 Development costs incurred during the year 1,814 1,536 1,876 Changes in estimated future development costs (3,268 ) (42 ) 2,835 Other (2 ) 1 (2 ) Net change in income taxes (3,356 ) (2,970 ) 591 Balance, End of Year $ 27,499 $ 18,775 $ 5,922 RESULTS OF OPERATIONS The following table sets forth revenue and direct cost information relating to the Company’s oil and natural gas exploration and production activities. United States Canada 2022 2021 2020 2022 2021 2020 Oil, NGL and Natural Gas Revenues (1) $ 6,680 $ 4,883 $ 2,701 $ 3,476 $ 2,542 $ 1,349 Less: Production, mineral and other taxes 401 278 158 14 15 15 Transportation and processing 626 507 453 1,002 937 829 Operating 646 490 485 127 111 100 Depreciation, depletion and amortization 861 837 1,378 235 332 427 Impairments - - 5,580 - - - Accretion of asset retirement obligation 8 11 13 10 11 16 Operating Income (Loss) 4,138 2,760 (5,366 ) 2,088 1,136 (38 ) Income Taxes 952 673 (1,309 ) 499 272 (9 ) Results of Operations $ 3,186 $ 2,087 $ (4,057 ) $ 1,589 $ 864 $ (29 ) Total 2022 2021 2020 Oil, NGL and Natural Gas Revenues (1) $ 10,156 $ 7,425 $ 4,050 Less: Production, mineral and other taxes 415 293 173 Transportation and processing 1,628 1,444 1,282 Operating 773 601 585 Depreciation, depletion and amortization 1,096 1,169 1,805 Impairments - - 5,580 Accretion of asset retirement obligation 18 22 29 Operating Income (Loss) 6,226 3,896 (5,404 ) Income Taxes 1,451 945 (1,318 ) Results of Operations $ 4,775 $ 2,951 $ (4,086 ) (1) Excludes gains (losses) on risk management. CAPITALIZED COSTS Capitalized costs include the cost of properties, equipment and facilities for oil and natural gas producing activities. Capitalized costs for proved properties include costs for oil and natural gas leaseholds where proved reserves have been identified, development wells and related equipment and facilities, including development wells in progress. Capitalized costs for unproved properties include costs for acquiring oil and natural gas leaseholds where no proved reserves have been identified. United States Canada 2022 2021 2020 2022 2021 2020 Proved Oil and Gas Properties $ 41,382 $ 39,145 $ 37,875 $ 15,672 $ 16,330 $ 16,008 Unproved Oil and Gas Properties 1,127 1,884 2,785 45 60 177 Total Capital Cost 42,509 41,029 40,660 15,717 16,390 16,185 Accumulated DD&A 34,280 33,418 32,581 14,687 15,450 15,056 Net Capitalized Costs $ 8,229 $ 7,611 $ 8,079 $ 1,030 $ 940 $ 1,129 Total 2022 2021 2020 Proved Oil and Gas Properties $ 57,054 $ 55,475 $ 53,883 Unproved Oil and Gas Properties 1,172 1,944 2,962 Total Capital Cost 58,226 57,419 56,845 Accumulated DD&A 48,967 48,868 47,637 Net Capitalized Costs $ 9,259 $ 8,551 $ 9,208 COSTS INCURRED Costs incurred includes both capitalized costs and costs charged to expense when incurred. Costs incurred also includes internal costs directly related to acquisition, exploration, and development activities, new asset retirement costs established in the current year as well as increases or decreases to the asset retirement obligations resulting from changes to cost estimates during the year. United States Canada 2022 2021 2020 2022 2021 2020 Acquisition Costs Unproved $ 154 $ 2 $ 16 $ - $ - $ - Proved 123 9 3 9 - - Total Acquisition Costs 277 11 19 9 - - Exploration Costs 5 10 12 7 5 - Development Costs 1,530 1,148 1,352 376 388 353 Total Costs Incurred $ 1,812 $ 1,169 $ 1,383 $ 392 $ 393 $ 353 Total 2022 2021 2020 Acquisition Costs Unproved $ 154 $ 2 $ 16 Proved 132 9 3 Total Acquisition Costs 286 11 19 Exploration Costs 12 15 12 Development Costs 1,906 1,536 1,705 Total Costs Incurred $ 2,204 $ 1,562 $ 1,736 COSTS NOT SUBJECT TO DEPLETION OR AMORTIZATION Upstream costs in respect of significant unproved properties are excluded from the country cost center’s depletable base as follows: As at December 31 2022 2021 United States $ 1,127 $ 1,884 Canada 45 60 $ 1,172 $ 1,944 The following is a summary of the costs related to Ovintiv’s unproved properties as at December 31, 2022: 2022 2021 2020 Prior to 2020 Total Acquisition Costs $ 154 $ 2 $ 22 $ 894 $ 1,072 Exploration Costs 5 11 7 77 100 $ 159 $ 13 $ 29 $ 971 $ 1,172 Acquisition costs primarily include costs incurred to acquire or lease properties. Exploration costs primarily include costs related to geological and geophysical studies and unevaluated costs associated with drilling and equipping exploratory wells. Ultimate recoverability of these costs and the timing of inclusion within the applicable country cost center’s depletable base is dependent upon either the finding of proved oil, NGL and natural gas reserves, expiration of leases or recognition of impairments. The $1.2 billion of oil and natural gas properties not subject to depletion or amortization primarily includes leasehold and mineral costs related to the acquisition of Permian. These acquisition costs are associated with acquired acreage for which proved reserves have yet to be assigned from future development. The Company continually assesses the development timeline of the acquired acreage. The timing and amount of the transfer of property acquisition costs into the depletable base are based on several factors and may be subject to changes over time from drilling plans, drilling results, availability of capital, project economics and other assessments of the property. The inclusion of these acquisition costs in the depletable base is expected to occur within one to two years. The remaining costs excluded from depletion are related to properties which are not individually significant. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | B) BASIS OF PRESENTATION The Consolidated Financial Statements include the accounts of Ovintiv and are presented in conformity with U.S. GAAP and the rules and regulations of the SEC. In these Consolidated Financial Statements, unless otherwise indicated, all dollar amounts are expressed in U.S. dollars. Following the U.S. Domestication on January 24, 2020, the functional currency of Ovintiv Inc. became U.S. dollars, and accordingly, the financial results herein are consolidated and reported in U.S. dollars. All references to US$ or to $ are to United States dollars and references to C$ are to Canadian dollars. The Arrangement, as described above, was accounted for as a reorganization of entities under common control. Accordingly, the resulting transactions were recognized using historical carrying amounts. On January 24, 2020, Ovintiv became the reporting entity upon completion of the Reorganization. |
Principles of Consolidation | C) PRINCIPLES OF CONSOLIDATION The Consolidated Financial Statements include the accounts of Ovintiv and entities in which it holds a controlling interest. |
Foreign Currency Translation | D) FOREIGN CURRENCY TRANSLATION Monetary assets and liabilities of the Company that are denominated in foreign currencies are translated at the rates of exchange in effect at the period end date. Any gains or losses are recorded in the Consolidated Statement of Earnings. Foreign currency revenues and expenses are translated at the rates of exchange in effect at the time of the transaction. Assets and liabilities of foreign operations are translated at period end exchange rates, while the related revenues and expenses are translated using average rates during the period. Translation gains and losses relating to foreign operations are included in accumulated other comprehensive income (“AOCI”). Recognition of Ovintiv’s accumulated translation gains and losses into net earnings occurs upon complete or substantially complete liquidation of the Company’s investment in the foreign operation. |
Use of Estimates | E) USE OF ESTIMATES Preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires Management to make informed estimates and assumptions and use judgments that affect reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the period. Such estimates primarily relate to unsettled transactions and events as of the date of the Consolidated Financial Statements. Accordingly, actual results may differ from estimated amounts as future events occur. Significant items subject to estimates and assumptions are: • Estimates of proved reserves used for depletion and ceiling test impairment calculations • Estimated fair value of long-term assets used for impairment calculations • Fair value of reporting units used for the assessment of goodwill • Estimates of future taxable earnings used to assess the realizable value of deferred tax assets • Estimates of incremental borrowing rates and lease terms used in the measurement of right-of-use (“ROU”) assets and lease liabilities • Fair value of asset retirement costs and related obligations • Fair value of derivative instruments • Fair value attributed to assets acquired and liabilities assumed in business combinations • Tax interpretations, regulations and legislation in the various jurisdictions in which the Company and its subsidiaries operate • Accruals for long-term performance-based compensation arrangements, including whether or not the performance criteria will be met and measurement of the ultimate payout amount • Recognized values of pension assets and obligations, as well as the pension costs charged to net earnings, depend on certain actuarial and economic assumptions • Accruals for legal claims, environmental risks and exposures |
Revenues from Contracts with Customers | F) REVENUES FROM CONTRACTS WITH CUSTOMERS Revenues from contracts with customers associated with Ovintiv’s oil, NGLs and natural gas and third-party processing and gathering are recognized when control of the good or service is transferred to the customer, and title or risk of loss transfers to the customer. Transaction prices are determined at inception of the contract and allocated to the performance obligations identified. Variable consideration is estimated and included in the transaction price, unless the variable consideration is constrained. For product sales, the performance obligations are satisfied at a point in time when the product is delivered to the customer and control is transferred. Payment from the customer is due when the product is delivered to the custody point. Revenues for product sales are presented on an after-royalties basis. For arrangements to gather and process natural gas for third parties, performance obligations are satisfied over time as the service is provided to the customer. Payment from the customer is due when the customer receives the benefit of the service and the product is delivered to the custody point or plant tailgate. Revenues associated with services provided where Ovintiv acts as agent are recorded on a net basis. |
Production, Mineral and Other Taxes | G) PRODUCTION, MINERAL AND OTHER TAXES Costs paid by Ovintiv for taxes based on production or revenues from oil, NGLs and natural gas are recognized when the product is produced. Costs paid by Ovintiv for taxes on the valuation of upstream assets and reserves are recognized when incurred. |
Transportation and Processing | H) TRANSPORTATION AND PROCESSING Costs paid by Ovintiv for the transportation and processing of oil, NGLs and natural gas are recognized when the product is delivered and the services made available or provided. |
Operating | I) OPERATING Operating costs paid by Ovintiv, net of amounts capitalized, are recognized for oil and natural gas properties in which the Company has a working interest. |
Employee Benefit Plans | J) EMPLOYEE BENEFIT PLANS The Company sponsors defined contribution and defined benefit plans, providing pension and other post-employment benefits to its employees in the U.S. and Canada. As of January 1, 2003, the defined benefit pension plan was closed to new entrants. Pension expense for the defined contribution pension plan is recorded as the benefits are earned by the employees covered by the plans. Ovintiv accrues for its obligations under its employee defined benefit plans, net of plan assets. The cost of defined benefit pensions and other post-employment benefits is actuarially determined using the projected benefit method based on length of service and reflects Management’s best estimate of salary escalation, mortality rates, retirement ages of employees and expected future health care costs. The expected return on plan assets is based on historical and projected rates of return for assets in the investment plan portfolio. The actual return is based on the fair value of plan assets. The projected benefit obligation is discounted using the market interest rate on high-quality corporate debt instruments as at the measurement date. Defined benefit pension plan expenses include the cost of pension benefits earned during the current year, the interest cost on pension obligations, the expected return on pension plan assets, the amortization of adjustments arising from pension plan amendments, the amortization of net prior service costs, and the amortization of the excess of the net actuarial gains or losses over 10 percent of the greater of the benefit obligation and the fair value of plan assets. Amortization is on a straight-line basis over a period covering the expected average remaining service lives of employees covered by the plans. All components of the net defined periodic benefit cost, excluding the service cost component, are included in other (gains) losses, net. |
Income Taxes | K) INCOME TAXES Ovintiv follows the liability method of accounting for income taxes. Under this method, deferred income taxes are recorded for the effect of any temporary difference between the accounting and income tax basis of an asset or liability, using the enacted income tax rates and laws expected to apply when the assets are realized and liabilities are settled. Current income taxes are measured at the amount expected to be recoverable from or payable to the taxing authorities based on the income tax rates and laws enacted at the end of the reporting period. The effect of a change in the enacted tax rates or laws is recognized in net earnings in the period of enactment. Income taxes are recognized in net earnings except to the extent that they relate to items recognized directly in shareholders’ equity, in which case the income taxes are recognized directly in shareholders’ equity. Deferred income tax assets are assessed routinely for realizability. If it is more likely than not that deferred tax assets will not be realized, a valuation allowance is recorded to reduce the deferred tax assets. Ovintiv considers available positive and negative evidence when assessing the realizability of deferred tax assets including historic and expected future taxable earnings, available tax planning strategies and carry forward periods. The assumptions used in determining expected future taxable earnings are consistent with those used in the goodwill impairment assessment. Ovintiv recognizes the financial statement effects of a tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by a taxing authority. A recognized tax position is initially and subsequently measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement with a taxing authority. Liabilities for unrecognized tax benefits that are not expected to be settled within the next 12 months are included in other liabilities and provisions. Interest related to unrecognized tax benefits is recognized in interest expense. |
Earnings Per Share Amounts | L) EARNINGS PER SHARE AMOUNTS Basic net earnings per share of common stock is computed by dividing the net earnings by the weighted average number of shares of common stock outstanding during the period. Diluted net earnings per share of common stock is calculated giving effect to the potential dilution that would occur if stock options were exercised or other contracts to issue shares of common stock were exercised, fully vested, or converted to shares of common stock. The treasury stock method is used to determine the dilutive effect of stock options and other dilutive instruments. The treasury stock method assumes that proceeds received from the exercise of in-the-money stock options and other dilutive instruments are used to repurchase shares of common stock at the average market price. |
Cash and Cash Equivalents | M) CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand and short-term investments, such as money market deposits or similar type instruments, with a maturity of three months or less when purchased. Outstanding disbursements issued in excess of applicable bank account balances are excluded from cash and cash equivalents and are recorded in accounts payable and accrued liabilities. |
Property, Plant and Equipment | N) PROPERTY, PLANT AND EQUIPMENT UPSTREAM Ovintiv uses the full cost method of accounting for its acquisition, exploration and development activities. Accordingly, all costs directly associated with the acquisition of, the exploration for, and the development of oil, NGLs and natural gas reserves, including costs of undeveloped leaseholds, dry holes and related equipment, are capitalized on a country-by-country cost center basis. Capitalized costs exclude costs relating to production, general overhead or similar activities. Capitalized costs accumulated within each cost center are depleted using the unit-of-production method based on proved reserves. Depletion is calculated using the capitalized costs, including estimated retirement costs, plus the undiscounted future expenditures, based on current costs, to be incurred in developing proved reserves. Costs associated with unproved properties are excluded from the depletion calculation until it is determined that proved reserves are attributable or impairment has occurred. Unproved properties are assessed separately for impairment on a quarterly basis. Costs that have been impaired are included in the costs subject to depletion within the full cost pool. Under the full cost method of accounting, the carrying amount of Ovintiv’s oil and natural gas properties within each country cost center is subject to a ceiling test at the end of each quarter. A ceiling test impairment is recognized in net earnings when the carrying amount of a country cost center exceeds the country cost center ceiling. The carrying amount of a cost center includes capitalized costs of proved oil and natural gas properties, net of accumulated depletion and the related deferred income taxes. The cost center ceiling is the sum of the estimated after-tax future net cash flows from proved reserves, using the 12-month average trailing prices and unescalated future development and production costs, discounted at 10 percent, plus unproved property costs. The 12-month average trailing price is calculated as the average of the price on the first day of each month within the trailing 12-month period. Any excess of the carrying amount over the calculated ceiling amount is recognized as an impairment in net earnings. Proceeds from the divestiture of properties are normally deducted from the full cost pool without recognition of a gain or loss unless the deduction significantly alters the relationship between capitalized costs and proved reserves in the cost center, in which case a gain or loss is recognized in net earnings. Generally, a gain or loss on a divestiture would be recognized when 25 percent or more of the Company’s proved reserves quantities are sold in a particular country cost center. For divestitures that result in the recognition of a gain or loss on the sale and constitute a business, goodwill is allocated to the divestiture. CORPORATE Costs associated with office furniture, fixtures, leasehold improvements, information technology and aircraft are carried at cost and depreciated on a straight-line basis over the estimated service lives of the assets, which range from three to 25 years. Assets under construction are not subject to depreciation until put into use. Land is carried at cost. |
Capitalization of Costs | O) CAPITALIZATION OF COSTS Expenditures related to renewals or betterments that improve the productive capacity or extend the life of an asset are capitalized. Maintenance and repairs are expensed as incurred. Interest on borrowings associated with development projects is capitalized during the development phase. |
Business Combinations | P) BUSINESS COMBINATIONS Business combinations are accounted for using the acquisition method. The acquired identifiable net assets are measured at fair value at the date of acquisition. Deferred taxes are recognized for any differences between the fair value of net assets acquired and the related tax bases. Any excess of the purchase price over the fair value of the net assets acquired is recognized as goodwill. Any deficiency of the purchase price below the fair value of the net assets acquired is recorded as a gain in net earnings. Associated transaction costs are expensed when incurred. |
Goodwill | Q) GOODWILL Goodwill represents the excess of purchase price over fair value of net assets acquired and is assessed for impairment at least annually at December 31. Goodwill and all other assets and liabilities are allocated to reporting units, which are Ovintiv’s country cost centers. To assess impairment, the carrying amount of each reporting unit is determined and compared to the fair value of each respective reporting unit. Any excess of the carrying value of the reporting unit, including goodwill, over its fair value is recognized as an impairment and charged to net earnings. The impairment charge measured is limited to the total amount of goodwill allocated to that reporting unit. Subsequent measurement of goodwill is at cost less any accumulated impairments. |
Impairment of Long-Term Assets | R) IMPAIRMENT OF LONG-TERM ASSETS The carrying value of long-term assets, excluding goodwill and upstream assets included in property, plant and equipment, is assessed for impairment when indicators suggest that the carrying value of an asset or asset group may not be recoverable. Individual assets are grouped for impairment purposes at the lowest level for which there are identifiable cashflows that are largely independent of the cashflows of other groups of assets. If the carrying amount exceeds the sum of the undiscounted cash flows expected to result from the continued use and eventual disposition of the asset or asset group, an impairment is recognized for the excess of the carrying amount over its estimated fair value. |
Asset Retirement Obligation | S) ASSET RETIREMENT OBLIGATION Asset retirement obligations are those legal obligations where the Company will be required to retire tangible long-lived assets such as producing well sites, processing plants, and restoring land at the end of oil and gas production operations. The asset retirement obligation is initially measured at its fair value and recorded as a liability with an offsetting retirement cost that is capitalized as part of the related long-lived asset in the Consolidated Balance Sheet. The estimated fair value is measured by reference to the expected future cash flows required to satisfy the obligation, discounted at the Company’s credit-adjusted risk-free rate. Changes in the estimated obligation resulting from revisions to estimated timing or amount of future cash flows are recognized as a change in the asset retirement obligation and the related asset retirement cost. Amortization of asset retirement costs are included in depreciation, depletion and amortization in the Consolidated Statement of Earnings. Increases in the asset retirement obligations resulting from the passage of time are recorded as accretion of asset retirement obligation in the Consolidated Statement of Earnings. Actual expenditures incurred are charged against the accumulated asset retirement obligation. |
Stock-Based Compensation | T) STOCK-BASED COMPENSATION Stock-based compensation arrangements are accounted for at fair value. Fair values are determined using observable share prices and/or pricing models such as the Black-Scholes-Merton option-pricing model. For equity-settled stock-based compensation plans, fair values are determined at the grant date and are recognized over the vesting period as compensation costs with a corresponding credit to shareholders’ equity. For cash-settled stock-based compensation plans, fair values are determined at each reporting date and periodic changes are recognized as compensation costs, with a corresponding change to liabilities. Compensation costs are recognized over the vesting period using the accelerated attribution method for awards with a graded vesting feature. Forfeitures are estimated based on the Company’s historical turnover rates. |
Leases | U) LEASES Leases for the right to use an asset are classified as either an operating or finance lease. Upon commencement of the lease, a ROU asset and corresponding lease liability are recognized in the Consolidated Balance Sheet for all operating and finance leases. Ovintiv has elected the short-term lease exemption, which does not require a ROU asset or lease liability to be recognized in the Consolidated Balance Sheet when the lease term is 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. Upon commencement of the lease, ROU assets are recognized based on the initial measurement of the lease liability and adjusted for any lease payments made before the commencement date of the lease, less any lease incentives and including any initial direct costs incurred. Lease liabilities are initially measured at the present value of future minimum lease payments over the lease term. The discount rate used to determine the present value is the rate implicit in the lease unless that rate cannot be determined, in which case Ovintiv ’s incremental borrowing rate is used. Rights to extend or terminate a lease are included in the lease term when there is reasonable certainty the right will be exercised. Factors used to assess reasonable certainty of rights to extend or terminate a lease include current and forecasted drilling plans, anticipated changes in development strategies, historical practice in extending similar contracts and current market conditions. Operating lease ROU assets and liabilities are subsequently measured at the present value of the lease payments not yet paid and discounted at the initial discount rate at commencement of the lease, less any impairments to the ROU asset. Operating lease expense and revenue from subleases are recognized in the Consolidated Statement of Earnings on a straight-line basis over the lease term. Finance lease ROU assets are amortized on a straight-line basis over the estimated useful life of the asset if the lessee is reasonably certain to exercise a purchase option or ownership of the leased asset transfers at the end of the lease term, otherwise the leased assets are amortized over the lease term. Amortization of finance lease ROU assets is included in depreciation, depletion and amortization in the Consolidated Statement of Earnings. Variable lease payments include changes in index rates, mobilization and demobilization costs related to oil and gas equipment and certain costs associated with office and building leases. Variable lease payments are recognized when incurred. Lease and non-lease components are accounted for as a single lease component for compression, coolers and office subleases. |
Fair Value Measurements | V) FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques include the market, income and cost approach. The market approach uses information generated by market transactions involving identical or comparable assets or liabilities; the income approach converts estimated future cash flows to a present value; the cost approach is based on the amount that currently would be required to replace an asset. Inputs used in determining fair value are characterized according to a hierarchy that prioritizes those inputs based on the degree to which they are observable. The three input levels of the fair value hierarchy are as follows: • Level 1 - Inputs represent quoted prices in active markets for identical assets or liabilities, such as exchange-traded commodity derivatives. • Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted market prices for similar assets or liabilities in active markets or other market corroborated inputs. • Level 3 - Inputs that are not observable from objective sources, such as forward prices supported by little or no market activity or internally developed estimates of future cash flows used in a present value model. In determining fair value, the Company utilizes the most observable inputs available. If a fair value measurement reflects inputs at multiple levels within the hierarchy, the fair value measurement is characterized based on the lowest level of input that is significant to the fair value measurement. The carrying amount of cash and cash equivalents, accounts receivable and accrued revenues, and accounts payable and accrued liabilities reported in the Consolidated Balance Sheet approximates fair value. The fair value of long-term debt is disclosed in Note 14. Fair value information related to pension plan assets is included in Note 22. Recurring fair value measurements are performed for risk management assets and liabilities and other derivative contracts as discussed in Note 23. Certain non-financial assets and liabilities are initially measured at fair value, such as asset retirement obligations and assets and liabilities acquired in business combinations or certain non-monetary exchange transactions. |
Risk Management Assets and Liabilities | W) RISK MANAGEMENT ASSETS AND LIABILITIES Risk management assets and liabilities are derivative financial instruments used by Ovintiv to manage economic exposure to market risks relating to commodity prices, foreign currency exchange rates and interest rates. The use of these derivative instruments is governed under formal policies and is subject to limits established by the Board of Directors. Derivative instruments that do not qualify for the normal purchases and sales exemption are measured at fair value with changes in fair value recognized in net earnings. The fair values recorded in the Consolidated Balance Sheet reflect netting the asset and liability positions where counterparty master netting arrangements contain provisions for net settlement. Realized gains or losses from financial derivatives related to oil, NGLs and Unrealized gains and losses are recognized based on the changes in fair value of the contracts and are presented in revenues and foreign exchange (gain) loss. |
Commitments and Contingencies | X) COMMITMENTS AND CONTINGENCIES Liabilities for loss contingencies arising from claims, assessments, litigation, environmental and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change. |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Results of Operations Segment Information USA Operations Canadian Operations Market Optimization For the years ended December 31 2022 2021 2020 2022 2021 2020 2022 2021 2020 Revenues Product and service revenues $ 6,680 $ 4,883 $ 2,701 $ 3,476 $ 2,542 $ 1,349 $ 4,107 $ 3,043 $ 1,459 Gains (losses) on risk management, net (1,123 ) (982 ) 497 (1,485 ) (413 ) 207 - - 7 Sublease revenues - - - - - - - - - Total Revenues 5,557 3,901 3,198 1,991 2,129 1,556 4,107 3,043 1,466 Operating Expenses Production, mineral and other taxes 401 278 158 14 15 15 - - - Transportation and processing 626 507 453 1,002 937 829 158 172 220 Operating 646 490 485 127 111 100 29 25 22 Purchased product - - - - - - 4,055 2,951 1,366 Depreciation, depletion and amortization 861 837 1,378 235 332 427 - - - Impairments - - 5,580 - - - - - - Total Operating Expenses 2,534 2,112 8,054 1,378 1,395 1,371 4,242 3,148 1,608 Operating Income (Loss) $ 3,023 $ 1,789 $ (4,856 ) $ 613 $ 734 $ 185 $ (135 ) $ (105 ) $ (142 ) Corporate & Other Consolidated 2022 2021 2020 2022 2021 2020 Revenues Product and service revenues $ - $ - $ - $ 14,263 $ 10,468 $ 5,509 Gains (losses) on risk management, net 741 (488 ) (204 ) (1,867 ) (1,883 ) 507 Sublease revenues 68 73 71 68 73 71 Total Revenues 809 (415 ) (133 ) 12,464 8,658 6,087 Operating Expenses Production, mineral and other taxes - - - 415 293 173 Transportation and processing - - - 1,786 1,616 1,502 Operating - (1 ) (2 ) 802 625 605 Purchased product - - - 4,055 2,951 1,366 Depreciation, depletion and amortization 17 21 29 1,113 1,190 1,834 Impairments - - - - - 5,580 Accretion of asset retirement obligation 18 22 29 18 22 29 Administrative 422 442 395 422 442 395 Total Operating Expenses 457 484 451 8,611 7,139 11,484 Operating Income (Loss) $ 352 $ (899 ) $ (584 ) 3,853 1,519 (5,397 ) Other (Income) Expenses Interest 311 340 371 Foreign exchange (gain) loss, net 15 (23 ) 17 Other (gains) losses, net (33 ) (37 ) (55 ) Total Other (Income) Expenses 293 280 333 Net Earnings (Loss) Before Income Tax 3,560 1,239 (5,730 ) Income tax expense (recovery) (77 ) (177 ) 367 Net Earnings (Loss) $ 3,637 $ 1,416 $ (6,097 ) |
Schedule of Marketing Intersegment Eliminations | Intersegment Information Market Optimization Marketing Sales Upstream Eliminations Total For the years ended December 31 2022 2021 2020 2022 2021 2020 2022 2021 2020 Revenues $ 15,622 $ 10,630 $ 6,108 $ (11,515 ) $ (7,587 ) $ (4,642 ) $ 4,107 $ 3,043 $ 1,466 Operating Expenses Transportation and processing 646 571 616 (488 ) (399 ) (396 ) 158 172 220 Operating 29 25 22 - - - 29 25 22 Purchased product 15,082 10,140 5,612 (11,027 ) (7,189 ) (4,246 ) 4,055 2,951 1,366 Operating Income (Loss) $ (135 ) $ (106 ) $ (142 ) $ - $ 1 $ - $ (135 ) $ (105 ) $ (142 ) |
Revenue by Geographic Region | Revenues by Geographic Region United States Canada Total For the years ended December 31 2022 2021 2020 2022 2021 2020 2022 2021 2020 Revenues Product revenues (1) Oil $ 4,524 $ 3,357 $ 2,035 $ 3 $ 7 $ 7 $ 4,527 $ 3,364 $ 2,042 NGLs 1,045 862 353 1,358 1,158 602 2,403 2,020 955 Natural gas 1,108 664 310 2,104 1,368 737 3,212 2,032 1,047 Other revenues (2) 3,679 2,785 1,310 510 340 226 4,189 3,125 1,536 Gains (losses) on risk management, net (796 ) (1,160 ) 406 (1,071 ) (723 ) 101 (1,867 ) (1,883 ) 507 Total Revenues $ 9,560 $ 6,508 $ 4,414 $ 2,904 $ 2,150 $ 1,673 $ 12,464 $ 8,658 $ 6,087 (1) Includes intercompany marketing fees transacted between the Company’s operating segments. (2) Includes market optimization and other revenues such as purchased product sold to third parties, sublease revenues and gathering and processing services provided to third parties. |
Capital Expenditures by Segment | Capital Expenditures by Segment For the years ended December 31 2022 2021 2020 USA Operations $ 1,493 $ 1,125 $ 1,353 Canadian Operations 334 391 380 Corporate & Other 4 3 3 $ 1,831 $ 1,519 $ 1,736 |
Goodwill, Property, Plant and Equipment and Total Assets by Segment | Goodwill, Property, Plant and Equipment and Total Assets by Segment Goodwill Property, Plant and Equipment Total Assets As at December 31 2022 2021 2022 2021 2022 2021 USA Operations $ 1,938 $ 1,938 $ 8,259 $ 7,623 $ 11,043 $ 10,345 Canadian Operations 646 690 1,044 951 2,075 1,932 Market Optimization - - - - 446 300 Corporate & Other - - 165 187 1,492 1,478 $ 2,584 $ 2,628 $ 9,468 $ 8,761 $ 15,056 $ 14,055 |
Goodwill, Property, Plant and Equipment and Total Assets by Geographical Region | Goodwill, Property, Plant and Equipment and Total Assets by Geographic Region Goodwill Property, Plant and Equipment Total Assets As at December 31 2022 2021 2022 2021 2022 2021 United States $ 1,938 $ 1,938 $ 8,316 $ 7,673 $ 11,749 $ 10,715 Canada 646 690 1,152 1,088 3,307 3,337 Other Countries - - - - - 3 $ 2,584 $ 2,628 $ 9,468 $ 8,761 $ 15,056 $ 14,055 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disaggregation Of Revenue [Abstract] | |
Disaggregation of Revenue | Revenues USA Operations Canadian Operations Market Optimization For the years ended December 31 2022 2021 2020 2022 2021 2020 2022 2021 2020 Revenues from Customers Product revenues (1) Oil $ 4,537 $ 3,369 $ 2,045 $ 3 $ 7 $ 7 $ 3,415 $ 2,268 $ 616 NGLs 1,049 864 354 1,363 1,163 606 19 42 10 Natural gas 1,107 664 309 2,119 1,377 743 646 704 813 Service revenues Gathering and processing 3 - 3 2 5 3 - 5 - Product and Service Revenues $ 6,696 $ 4,897 $ 2,711 $ 3,487 $ 2,552 $ 1,359 $ 4,080 $ 3,019 $ 1,439 Corporate & Other Consolidated 2022 2021 2020 2022 2021 2020 Revenues from Customers Product revenues (1) Oil $ - $ - $ - $ 7,955 $ 5,644 $ 2,668 NGLs - - - 2,431 2,069 970 Natural gas - - - 3,872 2,745 1,865 Service revenues Gathering and processing - - - 5 10 6 Product and Service Revenues $ - $ - $ - $ 14,263 $ 10,468 $ 5,509 ( 1 ) Includes revenues from production and revenues of product purchased from third parties, but excludes intercompany marketing fees transacted between the Company’s operating segments. |
Interest (Tables)
Interest (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Interest Expense [Abstract] | |
Schedule of Interest Expense | For the years ended December 31 2022 2021 2020 Interest Expense on: Debt $ 297 $ 323 $ 350 Finance leases (See Note 13) 2 3 9 Other 12 14 12 $ 311 $ 340 $ 371 |
Foreign Exchange (Gain) Loss,_2
Foreign Exchange (Gain) Loss, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Foreign Currency [Abstract] | |
Foreign Exchange (Gain) Loss, Net | For the years ended December 31 2022 2021 2020 Unrealized Foreign Exchange (Gain) Loss on: Translation of U.S. dollar financing debt issued from Canada $ - $ 1 $ 51 Translation of U.S. dollar risk management contracts issued from Canada 14 20 (13 ) Translation of intercompany notes - - (27 ) 14 21 11 Foreign Exchange (Gain) Loss on Settlements of: U.S. dollar financing debt issued from Canada 8 (8 ) 1 U.S. dollar risk management contracts issued from Canada 5 (33 ) 1 Intercompany notes - (3 ) 5 Other Monetary Revaluations (12 ) - (1 ) $ 15 $ (23 ) $ 17 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Provision For Income Taxes | The provision for income taxes is as follows: For the years ended December 31 2022 2021 2020 Current Tax United States $ 10 $ - $ (12 ) Canada - (156 ) (2 ) Total Current Tax Expense (Recovery) 10 (156 ) (14 ) Deferred Tax United States (275 ) 1 (187 ) Canada 188 (22 ) 568 Total Deferred Tax Expense (Recovery) (87 ) (21 ) 381 Income Tax Expense (Recovery) $ (77 ) $ (177 ) $ 367 |
Income Taxes Reconciliation | The following table reconciles income taxes calculated at the applicable statutory rate with the actual income taxes: For the years ended December 31 2022 2021 2020 Net Earnings (Loss) Before Income Tax $ 3,560 $ 1,239 $ (5,730 ) United States Federal Statutory Rate 21.0 % 21.0 % 21.0 % Expected Income Tax Expense (Recovery) 748 260 (1,203 ) Effect on Taxes Resulting From: State income tax 26 43 (147 ) Income tax related to foreign operations 60 9 (2 ) Effect of legislative changes - - 2 Non-taxable capital (gains) losses - - 3 Realized capital loss resulting from U.S. Domestication - - (1,238 ) Non-taxable items 246 - - Amounts in respect of prior periods 101 60 36 Change in valuation allowance (1,299 ) (558 ) 2,900 Other 41 9 16 $ (77 ) $ (177 ) $ 367 Effective Tax Rate (2.2 %) (14.3 %) (6.4 %) |
Components of Net Deferred Income Tax Asset (Liability) | The net deferred income tax asset (liability) consists of: As at December 31 2022 2021 Deferred Income Tax Assets Property, plant and equipment $ - $ 36 Risk management - 171 Compensation plans 72 67 Interest and other deferred deductions - 19 Net operating and net capital losses carried forward 2,290 2,727 Foreign tax credits - 119 Other 18 7 Less: valuation allowance (1,326 ) (2,733 ) Deferred Income Tax Liabilities Property, plant and equipment (676 ) (381 ) Risk management (10 ) - Deferred income (248 ) - Other (33 ) (36 ) Net Deferred Income Tax Asset (Liability) $ 87 $ (4 ) |
Net Deferred Income Tax Asset (Liability) by Jurisdiction | The net deferred income tax asset (liability) for the following jurisdictions is reflected in the Consolidated Balance Sheet as follows: As at December 31 2022 2021 Deferred Income Tax Assets United States $ 271 $ - Canada - - 271 - Deferred Income Tax Liabilities United States - (4 ) Canada (184 ) - (184 ) (4 ) Net Deferred Income Tax Asset (Liability) $ 87 $ (4 ) |
Schedule of Tax Basis, Loss Carryforwards and Business Tax Credits Available | Tax basis, loss carryforwards and business credits available are as follows: As at December 31 2022 Expiration Date United States Tax basis $ 5,228 Indefinite Net operating losses (Federal) 4,034 2023 - 2038 (1) Business credits 10 2023 - 2041 Canada Tax basis $ 938 Indefinite Net capital losses 5,350 Indefinite Net operating losses 381 2039 - 2041 (1) Includes net operating losses of $1,211 million which have an indefinite expiration date. |
Changes in Balance of Unrecognized Tax Benefits Excluding Interest | The following table presents changes in the balance of Ovintiv’s unrecognized tax benefits excluding interest: For the years ended December 31 2022 2021 Balance, Beginning of Year $ (10 ) $ (232 ) Additions for tax positions taken in the current year - (2 ) Additions for tax positions of prior years - (29 ) Settlements - 257 Foreign currency translation 1 (4 ) Balance, End of Year $ (9 ) $ (10 ) |
Unrecognized Tax Benefit Reflected In Balance Sheet | The unrecognized tax benefit is reflected in the Consolidated Balance Sheet as follows: As at December 31 2022 2021 Income Tax Receivable $ (1 ) $ (1 ) Deferred Income Tax Liability (1) (8 ) (9 ) Balance, End of Year $ (9 ) $ (10 ) (1) As at December 31, 2021, the unrealized tax benefit was offset against the valuation allowance recognized in Canada. |
Tax Years Subject to Examination, by Jurisdiction | Included below is a summary of the tax years, by jurisdiction, that remain statutorily open for examination by the taxing authorities. Jurisdiction Taxation Year United States - Federal 2018 - 2022 United States - State 2017 - 2022 Canada - Federal 2015 - 2022 Canada - Provincial 2015 - 2022 |
Accounts Receivable and Accru_2
Accounts Receivable and Accrued Revenues (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable and Accrued Revenues | As at December 31 2022 2021 Trade Receivables and Accrued Revenues Production accruals $ 881 $ 832 Market optimization 376 238 Joint interest and trade receivables 200 102 Derivative settlements 7 9 Corporate and other 26 23 Total Trade Receivables and Accrued Revenues 1,490 1,204 Prepaids 38 28 Deposits and Other 70 67 1,598 1,299 Expected Credit Loss Allowance (4 ) (5 ) $ 1,594 $ 1,294 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Acquisitions And Divestitures [Abstract] | |
Schedule of Net Acquisitions & (Divestitures) | For the years ended December 31 2022 2021 2020 Acquisitions USA Operations $ 277 $ 11 $ 19 Canadian Operations 9 - - Total Acquisitions 286 11 19 Divestitures USA Operations (230 ) (772 ) (78 ) Canadian Operations 2 (253 ) (11 ) Total Divestitures (228 ) (1,025 ) (89 ) Net Acquisitions & (Divestitures) $ 58 $ (1,014 ) $ (70 ) |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property Plant And Equipment [Abstract] | |
Schedule Of Property, Plant And Equipment | As at December 31 2022 2021 Cost Accumulated DD&A Net Cost Accumulated DD&A Net USA Operations Proved properties $ 41,382 $ (34,280 ) $ 7,102 $ 39,145 $ (33,418 ) $ 5,727 Unproved properties 1,127 - 1,127 1,884 - 1,884 Other 30 - 30 12 - 12 42,539 (34,280 ) 8,259 41,041 (33,418 ) 7,623 Canadian Operations Proved properties 15,672 (14,687 ) 985 16,330 (15,450 ) 880 Unproved properties 45 - 45 60 - 60 Other 14 - 14 11 - 11 15,731 (14,687 ) 1,044 16,401 (15,450 ) 951 Market Optimization 7 (7 ) - 7 (7 ) - Corporate & Other 831 (666 ) 165 873 (686 ) 187 $ 59,108 $ (49,640 ) $ 9,468 $ 58,322 $ (49,561 ) $ 8,761 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Schedule of Other Assets | As at December 31 2022 2021 Operating Lease ROU Assets (See Note 13) $ 870 $ 929 Long-Term Investments 21 27 Long-Term Receivables 58 64 Deferred Charges 44 42 Other 11 17 $ 1,004 $ 1,079 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | As at December 31 2022 2021 United States Balance, beginning and end of year $ 1,938 $ 1,938 Canada Balance, beginning of year 690 687 Foreign currency translation adjustment (44 ) 3 Balance, end of year 646 690 Total Goodwill $ 2,584 $ 2,628 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | As at December 31 2022 2021 Trade Payables $ 436 $ 328 Capital Accruals 196 161 Royalty and Production Accruals 718 643 Market Optimization Accruals 314 266 Outstanding Disbursements 74 32 Payroll & Other Accruals 211 221 Interest Payable 65 108 Derivative Settlements 17 90 Current Portion of Long-Term Incentive Costs (See Note 21) 139 78 Current Portion of Finance Lease Obligations (See Note 13) 6 6 Current Portion of Asset Retirement Obligation (See Note 16) 45 46 $ 2,221 $ 1,979 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of Operating and Finance Lease Costs | The tables below summarize Ovintiv’s operating and finance lease costs and include ROU assets and lease liabilities, amounts recognized in net earnings (loss) during the year and other lease information. As at December 31 (US$ millions, unless otherwise specified) 2022 2021 Consolidated Balance Sheet (1) Operating Lease ROU Assets, in Other Assets $ 870 $ 929 Finance Lease ROU Assets, in Other Property Plant and Equipment 22 27 Operating Lease Liabilities: Current 76 62 Long-term 814 889 Finance Lease Liabilities: Current, in accounts payable and accrued liabilities 6 6 Long-term, in other liabilities and provisions 27 33 Weighted Average Discount Rate Operating leases 5.39% 5.44% Finance leases 6.11% 6.11% Weighted Average Remaining Lease Term Operating leases 14.0 years 15.3 years Finance leases 4.5 years 5.5 years (1) Total ROU assets and liabilities are recorded at the gross contractual amount. A portion of the future lease payments will be recovered from other working interest owners based on their proportionate share when incurred. For the years ended December 31 2022 2021 Lease Costs (1) Operating Lease Costs, Excluding Short-Term Leases $ 140 $ 145 Finance Lease Costs: Amortization of ROU assets 5 5 Interest on lease liabilities 2 3 Total Finance Lease Costs 7 8 Short-Term Lease Costs 189 206 Variable Lease Costs 14 12 Sublease Income: Operating lease income 48 55 Variable lease income 20 18 Other Information (2) Cash Paid for Amounts Included in the Measurement of Lease Liabilities: Operating cash outflows from operating leases 176 197 Investing cash outflows from operating leases 151 147 Operating cash outflows from finance leases 2 3 Financing cash outflows from finance leases 6 82 Supplemental Non-Cash Information: New ROU operating lease assets and liabilities 75 23 (1) Lease costs include amounts capitalized into property, plant and equipment in the Consolidated Balance Sheet and lease expense recognized in the Consolidated Statement of Earnings. (2) Rights to extend or terminate a lease are included in the lease term when there is reasonable certainty the right will be exercised. Lease contracts include rights to extend leases after the initial term, ranging from month-to-month to less than 10 years |
Schedule Operating Lease Expense | Operating lease expense is reflected in the Consolidated Statement of Earnings as follows: For the years ended December 31 2022 2021 Operating Lease Expense Transportation and processing $ 3 $ 3 Operating 70 81 Administrative 101 120 Total Operating Lease Expense $ 174 $ 204 |
Schedule of Future Lease Payments and Lease Liabilities Related to Operating and Finance Leases | The following table outlines the Company’s future lease payments and lease liabilities related to the Company’s operating and finance leases as at December 31, 2022: 2023 2024 2025 2026 2027 Thereafter Total Operating Leases (1) Expected Future Lease Payments $ 123 $ 104 $ 89 $ 79 $ 76 $ 820 $ 1,291 Less: Discounting 401 Present Value of Future Operating Lease Payments $ 890 Sublease Income (undiscounted) $ (41 ) $ (43 ) $ (43 ) $ (43 ) $ (44 ) $ (414 ) $ (628 ) Finance Leases Expected Future Lease Payments $ 8 $ 8 $ 9 $ 9 $ 4 $ - $ 38 Less: Discounting 5 Present Value of Future Finance Lease Payments $ 33 Sublease Income (undiscounted) (2) $ (8 ) $ (7 ) $ (7 ) $ (7 ) $ (3 ) $ - $ (32 ) (1) Lease payments are presented based on the gross contractual amount. A portion of the future lease payments will be recovered from other working interest owners based on their proportionate share when incurred. (2) Classified as operating lease. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Debt | As at December 31 Note 2022 2021 U.S. Dollar Denominated Debt Revolving credit and term loan borrowings A $ 393 $ - U.S. Unsecured Notes: B 5.625% due July 1, 2024 - 1,000 5.375% due January 1, 2026 459 688 8.125% due September 15, 2030 300 300 7.20% due November 1, 2031 350 350 7.375% due November 1, 2031 500 500 6.50% due August 15, 2034 599 750 6.625% due August 15, 2037 390 462 6.50% due February 1, 2038 430 488 5.15% due November 15, 2041 148 203 Total Principal F 3,569 4,741 Increase in Value of Debt Acquired C 27 77 Unamortized Debt Discounts and Issuance Costs D (26 ) (32 ) Total Long-Term Debt $ 3,570 $ 4,786 Current Portion E $ 393 $ - Long-Term Portion 3,177 4,786 $ 3,570 $ 4,786 |
Mandatory Debt Payments | Principal Interest As at December 31 Amount Amount 2023 $ 393 $ 232 2024 - 211 2025 - 212 2026 459 199 2027 - 187 Thereafter 2,717 1,253 Total $ 3,569 $ 2,294 |
Other Liabilities and Provisi_2
Other Liabilities and Provisions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities and Provisions | As at December 31 2022 2021 Finance Lease Obligations (See Note 13) $ 27 $ 33 Pensions and Other Post-Employment Benefits (See Note 22) 73 104 Long-Term Incentive Costs (See Note 21) 14 36 Other Derivative Contracts (See Notes 23, 24) 5 5 Other 12 12 $ 131 $ 190 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Change In Asset Retirement Obligation | As at December 31 2022 2021 Asset Retirement Obligation, Beginning of Year $ 385 $ 440 Liabilities Incurred and Acquired 4 8 Liabilities Settled and Divested (128 ) (91 ) Change in Estimated Future Cash Outflows 58 5 Accretion Expense 18 22 Foreign Currency Translation (11 ) 1 Asset Retirement Obligation, End of Year $ 326 $ 385 Current Portion (See Note 12) $ 45 $ 46 Long-Term Portion 281 339 $ 326 $ 385 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Class Of Stock Disclosures [Abstract] | |
Schedule of Common Stock Issued and Outstanding | As at December 31 2022 2021 2020 Number (millions) Amount Number (millions) Amount Number (millions) Amount Shares of Common Stock Outstanding, Beginning of Year 258.0 $ 3 259.8 $ 3 259.8 $ 7,061 Shares of Common Stock Purchased (14.7 ) - (3.1 ) - - - Shares of Common Stock Issued 2.4 - 1.3 - - - Reclassification of Share Capital due to the Reorganization (See Note 1) - - - - - (7,058 ) Shares of Common Stock Outstanding, End of Year 245.7 $ 3 258.0 $ 3 259.8 $ 3 |
Earnings Per Common Share | For the years ended December 31 (US$ millions, except per share amounts) 2022 2021 2020 Net Earnings (Loss) $ 3,637 $ 1,416 $ (6,097 ) Number of Shares of Common Stock: Weighted average shares of common stock outstanding - Basic 253.6 260.4 259.8 Effect of dilutive securities (1) 4.8 6.0 - Weighted Average Shares of Common Stock Outstanding - Diluted 258.4 266.4 259.8 Net Earnings (Loss) per Share of Common Stock Basic $ 14.34 $ 5.44 $ (23.47 ) Diluted (1) 14.08 5.32 (23.47 ) (1) As at December 31, 2020, all of Ovintiv’s equity-settled awards were determined to be antidilutive and therefore are excluded from the calculation of fully diluted net earnings (loss) per share of common stock. See Note 21 for further information. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | For the years ended December 31 2022 2021 2020 Foreign Currency Translation Adjustment Balance, Beginning of Year $ 1,044 $ 1,042 $ 1,004 Change in Foreign Currency Translation Adjustment (107 ) 2 38 Balance, End of Year $ 937 $ 1,044 $ 1,042 Pension and Other Post-Employment Benefit Plans Balance, Beginning of Year $ 48 $ 34 $ 42 Other Comprehensive Income Before Reclassifications: Net actuarial gains and (losses) (See Note 22) 13 14 (10 ) Income taxes (3 ) (4 ) 2 Net prior service costs from plan amendment (See Note 22) - 11 - Income taxes - (2 ) - Amounts Reclassified from Other Comprehensive Income: Reclassification of net actuarial (gains) and losses to net earnings (See Note 22) (6 ) (8 ) (9 ) Income taxes 2 2 2 Reclassification of net prior service costs to net earnings (See Note 22) - 1 2 Income taxes - - - Curtailment in net defined periodic benefit cost (See Note 22) - - 5 Income taxes - - (1 ) Settlement in net defined periodic benefit cost (See Note 22) - - 2 Income taxes - - (1 ) Balance, End of Year $ 54 $ 48 $ 34 Total Accumulated Other Comprehensive Income $ 991 $ 1,092 $ 1,076 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring Charges [Abstract] | |
Restructuring Costs Expensed | For the years ended December 31 2022 2021 2020 Severance and Benefits $ - $ 14 $ 88 Outplacement, Moving and Other Expenses - - 2 Restructuring Expenses $ - $ 14 $ 90 |
Schedule of Change in Restructuring Accrual | As at December 31 2022 2021 2020 Outstanding Restructuring Accrual, Beginning of Year $ 3 $ 14 $ 8 Restructuring Expenses Incurred - 14 90 Restructuring Costs Paid (3 ) (25 ) (84 ) Outstanding Restructuring Accrual, End of Year (1) $ - $ 3 $ 14 (1) Included in accounts payable and accrued liabilities in the Consolidated Balance Sheet. |
Compensation Plans (Tables)
Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amounts Recognized For Share-Based Payment Transactions | The Company has recognized the following share-based compensation costs: For the years ended December 31 2022 2021 2020 Total Compensation Costs of Transactions Classified as Cash-Settled $ 152 $ 118 $ 42 Total Compensation Costs of Transactions Classified as Equity-Settled 82 47 3 Less: Total Share-Based Compensation Costs Capitalized (32 ) (27 ) (12 ) Total Share-Based Compensation Expense (Recovery) $ 202 $ 138 $ 33 Recognized in the Consolidated Statement of Earnings in: Operating $ 38 $ 31 $ 10 Administrative 164 107 23 $ 202 $ 138 $ 33 |
Schedule of Nonvested Performance Based Units Activity | As at December 31 2022 (1) 2021 U.S. Dollar Denominated Outstanding PSUs Units (thousands) Weighted Average Grant Date Fair Value (US$) Units (thousands) Weighted Average Grant Date Fair Value (US$) Unvested and Outstanding, Beginning of Year 2,427 20.04 1,886 21.80 Granted 312 45.61 833 25.80 Vested and Released (2) (515 ) 35.05 (177 ) 54.65 Units, in Lieu of Dividends 44 20.15 37 20.04 Forfeited (7 ) 16.47 (152 ) 32.96 Unvested and Outstanding, End of Year 2,261 20.17 2,427 20.04 As at December 31 2022 (1) 2021 Canadian Dollar Denominated Outstanding PSUs Units (thousands) Weighted Average Grant Date Fair Value (C$) Units (thousands) Weighted Average Grant Date Fair Value (C$) Unvested and Outstanding, Beginning of Year 1,223 26.75 1,308 34.43 Granted 146 57.95 293 29.34 Vested and Released (2) (321 ) 47.01 (137 ) 68.80 Units, in Lieu of Dividends 21 24.94 20 26.66 Forfeited (21 ) 32.11 (261 ) 46.13 Unvested and Outstanding, End of Year 1,048 24.74 1,223 26.75 (1) During the second quarter of 2022, shareholders approved an increase to the number of shares of common stock held in reserve for issuance under the Company’s stock-based compensation plans. Accordingly, the 2022 annual awards were modified and reclassified as equity-settled awards. The modification date fair value of the awards was US$56.72 per share and C$72.17 per share for the U.S. dollar denominated and Canadian dollar denominated PSUs, respectively. (2) During the year ended December 31, 2022, performance shares that vested and were cash-settled resulted in payments of $22 million (2021 - $3 million; 2020 - $6 million). |
Schedule of Outstanding Deferred Share Units | (thousands of units) U.S. Dollar Denominated Outstanding DSUs Canadian Dollar Denominated Outstanding DSUs As at December 31 2022 2021 2022 2021 Vested and Outstanding, Beginning of Year 5 - 206 211 Granted 5 5 3 8 Converted from bonus awards - - - - Units, in Lieu of Dividends - - 4 4 Redeemed - - (25 ) (17 ) Vested and Outstanding, End of Year 10 5 188 206 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | As at December 31 2022 (1) 2021 (2) U.S. Dollar Denominated Outstanding RSUs Units (thousands) Weighted Average Grant Date Fair Value (US$) Units (thousands) Weighted Average Grant Date Fair Value (US$) Unvested and Outstanding, Beginning of Year 5,401 20.92 5,486 21.26 Granted 982 46.14 1,952 23.57 Units, in Lieu of Dividends 67 25.27 83 20.93 Vested and Released (3) (2,932 ) 23.99 (1,720 ) 24.74 Forfeited (149 ) 26.02 (400 ) 21.99 Unvested and Outstanding, End of Year 3,369 25.48 5,401 20.92 As at December 31 2022 (1) 2021 (2) Canadian Dollar Denominated Outstanding RSUs Units (thousands) Weighted Average Grant Date Fair Value (C$) Units (thousands) Weighted Average Grant Date Fair Value (C$) Unvested and Outstanding, Beginning of Year 2,621 28.23 2,912 31.76 Granted 444 58.97 953 29.30 Units, in Lieu of Dividends 30 32.55 41 28.11 Vested and Released (3) (1,484 ) 32.68 (1,035 ) 37.63 Forfeited (71 ) 33.75 (250 ) 34.43 Unvested and Outstanding, End of Year 1,540 32.65 2,621 28.23 (1) During the second quarter of 2022, Ovintiv’s shareholders approved an increase to the number of shares of common stock held in reserve for issuance under the Company’s stock-based compensation plans. Accordingly, the 2022 annual awards were modified and reclassified as equity-settled awards. The modification date fair value of the awards was US$56.72 per share and C$72.17 per share for the U.S. dollar denominated and Canadian dollar denominated RSUs, respectively. ( 2 ) During the third quarter of 2021, the 2021 annual awards were modified and reclassified as equity-settled awards. The modification date fair value of the awards was US$25.66 per share and C$32.07 per share for the U.S. dollar denominated and Canadian dollar denominated RSUs, respectively. ( 3 ) During the year ended December 31, 2022, restricted shares that vested and were cash-settled resulted in payments of $51 million (2021 - $23 million; 2020 - $10 million). |
Stock Appreciation Rights (SARs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity | The following table summarizes information related to the U.S. dollar denominated SARs: As at December 31 2022 2021 Outstanding SARs (thousands of units) Weighted Average Exercise Price (US$) Weighted Average Remaining Contractual Life (Years) Outstanding SARs (thousands of units) Weighted Average Exercise Price (US$) Weighted Average Remaining Contractual Life (Years) Outstanding, Beginning of Year 1,150 38.89 2.2 660 38.03 Granted - - 682 35.11 Exercised (1) (401 ) 22.14 (177 ) 20.50 Forfeited - - (15 ) 45.35 Expired (219 ) 56.75 - - Outstanding, End of Year (2) 530 44.17 2.4 1,150 38.89 2.2 Vested and Exercisable, End of Year (3) 530 44.17 2.4 1,021 39.54 1.9 Expected to Vest (4) - - - 129 33.77 4.3 (1) The intrinsic value of option awards exercised and cash-settled during 2022 was $11 million (2021 - $2 million; 2020 - nil). (2) The intrinsic value of option awards outstanding at December 31, 2022, was $14 million (2021 - $15 million). (3) The intrinsic value of option awards vested and exercisable at December 31, 2022, was $14 million (2021 - $14 million). (4) The intrinsic value of option awards expected to vest at December 31, 2021, was $1 million. |
Schedule of Weighted Average Assumptions Used to Fair Value Share Units | The following weighted average assumptions were used to determine the fair value of SARs outstanding: US$ Share Units As at December 31 2022 2021 2020 Risk Free Interest Rate 4.02% 0.94% 0.20% Dividend Yield 1.97% 1.66% 2.61% Expected Volatility Rate (1) 107.80% 106.20% 104.53% Expected Term 1.6 yrs 1.4 yrs 2.3 yrs Market Share Price US$50.71 US$33.70 US$14.36 Weighted Average Grant Date Fair Value US$44.17 US$38.89 US$38.03 (1) Volatility was estimated using historical rates. |
Tandem Stock Appreciation Rights (TSARs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity | The following table summarizes information related to the TSARs: As at December 31 2022 2021 Outstanding TSARs (thousands of units) Weighted Average Exercise Price (C$) Weighted Average Remaining Contractual Life (Years) Outstanding TSARs (thousands of units) Weighted Average Exercise Price (C$) Weighted Average Remaining Contractual Life (Years) Outstanding, Beginning of Year 733 54.17 2.2 1,586 48.28 Granted - - - - Exercised - SARs (1) (269 ) 36.16 (136 ) 28.01 Exercised - Options (1) - - - - Forfeited - - (717 ) 46.11 Expired (174 ) 71.70 - - Outstanding, End of Year (2) 290 60.31 2.2 733 54.17 2.2 Vested and Exercisable, End of Year (3) 290 60.31 2.2 642 55.38 1.9 Expected to Vest (4) - - - 91 45.64 4.3 (1) The intrinsic value of option awards exercised and cash-settled during 2022 was $6 million (2021 - $2 million; 2020 - nil). (2) The intrinsic value of option awards outstanding at December 31, 2022, was $7 million (2021 - $10 million). (3) The intrinsic value of option awards vested and exercisable at December 31, 2022, was $7 million (2021 - $9 million). (4) The intrinsic value of option awards expected to vest at December 31, 2021, was $1 million. |
Schedule of Weighted Average Assumptions Used to Fair Value Share Units | The following weighted average assumptions were used to determine the fair value of TSARs outstanding: C$ Share Units As at December 31 2022 2021 2020 Risk Free Interest Rate 4.02% 0.94% 0.20% Dividend Yield 1.90% 1.65% 2.75% Expected Volatility Rate (1) 106.16% 104.80% 103.64% Expected Term 1.5 yrs 1.4 yrs 1.8 yrs Market Share Price C$68.56 C$42.56 C$18.29 Weighted Average Grant Date Fair Value C$60.31 C$54.17 C$48.28 (1) Volatility was estimated using historical rates. |
Pension and Other Post-Employ_2
Pension and Other Post-Employment Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
General Discussion Of Pension And Other Postretirement Benefits [Abstract] | |
Changes In Benefit Obligation And Fair Value Of Plan Assets | The following tables set forth changes in the benefit obligations and fair value of plan assets for the Company’s defined benefit pension and other post-employment benefit plans for the years ended December 31, 2022 and 2021, as well as the funded status of the plans and amounts recognized in the Consolidated Financial Statements as at December 31, 2022 and 2021. Defined Benefits OPEB As at December 31 2022 2021 2022 2021 Change in Benefit Obligations Projected Benefit Obligation, Beginning of Year $ 191 $ 211 $ 67 $ 89 Service Cost - - 2 3 Interest Cost 5 5 2 2 Actuarial (Gains) Losses (33 ) (9 ) (13 ) (8 ) Exchange Differences (10 ) 1 (1 ) - Employee Contributions - - 2 2 Benefits Paid (13 ) (17 ) (9 ) (10 ) Plan Amendment - - - (11 ) Projected Benefit Obligation, End of Year $ 140 $ 191 $ 50 $ 67 Change in Plan Assets Fair Value of Plan Assets, Beginning of Year $ 176 $ 193 $ - $ - Actual Return on Plan Assets (27 ) 3 - - Exchange Differences (10 ) 1 - - Employee Contributions - - 2 2 Employer Contributions - - 7 8 Benefits Paid (13 ) (17 ) (9 ) (10 ) Transfers to Defined Contribution Plan (2 ) (4 ) - - Fair Value of Plan Assets, End of Year $ 124 $ 176 $ - $ - Funded Status of Plan Assets, End of Year $ (16 ) $ (15 ) $ (50 ) $ (67 ) Total Recognized Amounts in the Consolidated Balance Sheet Consist of: Other Assets $ 2 $ 10 $ - $ - Current Liabilities - - (7 ) (8 ) Non-Current Liabilities (18 ) (25 ) (43 ) (59 ) Total $ (16 ) $ (15 ) $ (50 ) $ (67 ) Total Recognized Amounts in Accumulated Other Comprehensive Income Consist of: Net Actuarial (Gains) Losses $ 18 $ 19 $ (88 ) $ (82 ) Net Prior Service Costs (7 ) (7 ) 7 7 Total Recognized in Accumulated Other Comprehensive Income, Before Tax $ 11 $ 12 $ (81 ) $ (75 ) |
Accumulated Benefit Obligation And Projected Benefit Obligation In Excess Of The Plan Assets Fair Value | The following table sets forth the defined benefit plans where the accumulated benefit obligation and projected benefit obligation are in excess of the fair value of the plan assets: Defined Benefits OPEB As at December 31 2022 2021 2022 2021 Projected Benefit Obligation $ (47 ) $ (63 ) $ (50 ) $ (67 ) Accumulated Benefit Obligation (47 ) (63 ) (50 ) (67 ) Fair Value of Plan Assets (1) 29 38 - - (1) The Company does not aggregate benefit plans. |
Weighted Average Assumptions Used | Following are the weighted average assumptions used by the Company in determining the defined benefit pension and other post-employment benefit obligations: Defined Benefits OPEB As at December 31 2022 2021 2022 2021 Discount Rate 5.10% 2.80% 5.25% 2.54% Rates of Increase in Compensation Levels 3.24% 3.13% 4.83% 6.18% |
Total Benefit Plans Expense Recognized | The following sets forth the total benefit plans expense recognized by the Company: Pension Benefits OPEB For the years ended December 31 2022 2021 2020 2022 2021 2020 Net Defined Periodic Benefit Cost $ - $ - $ 3 $ (3 ) $ (3 ) $ 2 Defined Contribution Plan Expense 24 24 28 - - - Total Benefit Plans Expense $ 24 $ 24 $ 31 $ (3 ) $ (3 ) $ 2 |
Schedule of Net Defined Periodic Benefit Cost | The net defined periodic benefit cost is as follows: Defined Benefits OPEB For the years ended December 31 2022 2021 2020 2022 2021 2020 Service Cost $ - $ - $ 1 $ 2 $ 3 $ 4 Interest Cost 5 5 6 2 2 2 Expected Return on Plan Assets (6 ) (6 ) (7 ) - - - Amounts Reclassified from Accumulated Other Comprehensive Income: Amortization of net actuarial (gains) and losses 1 1 1 (7 ) (9 ) (10 ) Amortization of net prior service costs - - - - 1 2 Curtailment of net prior service costs - - - - - 5 Settlement from net prior service costs - - 2 - - - Curtailment - - - - - (1 ) Total Net Defined Periodic Benefit Cost (1) $ - $ - $ 3 $ (3 ) $ (3 ) $ 2 (1) The components of total net defined periodic benefit cost, excluding the service cost component, are included in other (gains) losses, net. |
Recognized Amounts In Other Comprehensive Income | The amounts recognized in other comprehensive income are as follows: Defined Benefits OPEB For the years ended December 31 2022 2021 2020 2022 2021 2020 Net Actuarial (Gains) Losses $ - $ (6 ) $ 6 $ (13 ) $ (8 ) $ 4 Net Prior Service Costs from Plan Amendment - - - - (11 ) - Amortization of Net Actuarial Gains and (Losses) (1 ) (1 ) (1 ) 7 9 10 Amortization of Net Prior Service Costs - - - - (1 ) (2 ) Curtailment of Net Prior Service Costs - - - - - (5 ) Settlement from Net Prior Service Costs - - (2 ) - - - Total Amounts Recognized in Other Comprehensive (Income) Loss, Before Tax $ (1 ) $ (7 ) $ 3 $ (6 ) $ (11 ) $ 7 Total Amounts Recognized in Other Comprehensive (Income) Loss, After Tax $ (1 ) $ (5 ) $ 3 $ (5 ) $ (9 ) $ 5 |
Weighted Average Assumptions Used In Determining Net Periodic Pension And Other Post Retirement Benefit Cost | Following are the weighted average assumptions used by the Company in determining the net periodic pension and other post-retirement benefit costs: Defined Benefits OPEB For the years ended December 31 2022 2021 2020 2022 2021 2020 Discount Rate 5.10 % 2.25 % 3.00 % 2.46 % 2.08 % 2.90 % Long-Term Rate of Return on Plan Assets 3.85 % 3.00 % 3.75 % - - - Rates of Increase in Compensation Levels 3.24 % 3.13 % 3.12 % 4.83 % 6.33 % 5.92 % |
Assumed Health Care Cost Trend Rates | The Company’s assumed health care cost trend rates are as follows: For the years ended December 31 2022 2021 2020 Health Care Cost Trend Rate for Next Year 6.16 % 6.15 % 6.42 % Rate to Which the Cost Trend Rate is Assumed to Decline (Ultimate Trend Rate) 5.00 % 5.00 % 5.00 % Year that the Rate Reaches the Ultimate Trend Rate 2027 2026 2026 |
Estimate Of Benefit Payments For The Next 10 Years | The following provides an estimate of benefit payments for the next 10 years. These estimates reflect benefit increases due to continuing employee service. Defined Benefit Pension Payments Other Benefit Payments 2023 $ 13 $ 7 2024 13 6 2025 13 6 2026 13 5 2027 12 5 2028 - 2032 56 18 |
Schedule of Allocation of Plan Assets | The Company’s registered and other defined benefit pension plan assets are presented by investment asset category and input level within the fair value hierarchy as follows: As at December 31 2022 Level 1 Level 2 Level 3 Total Investments: Cash and Cash Equivalents $ 17 $ - $ - $ 17 Fixed Income - 66 - 66 Equity - 41 - 41 Fair Value of Plan Assets, End of Year $ 17 $ 107 $ - $ 124 As at December 31 2021 Level 1 Level 2 Level 3 Total Investments: Cash and Cash Equivalents $ 19 $ 1 $ - $ 20 Fixed Income - 94 - 94 Equity - 62 - 62 Fair Value of Plan Assets, End of Year $ 19 $ 157 $ - $ 176 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis | Fair value changes and settlements for amounts related to risk management assets and liabilities are recognized in revenues and foreign exchange gains and losses according to their purpose. As at December 31, 2022 Level 1 Quoted Prices in Active Markets Level 2 Other Observable Inputs Level 3 Significant Unobservable Inputs Total Fair Value Netting (1) Carrying Amount Risk Management Assets Commodity Derivatives: Current assets $ - $ 93 $ 12 $ 105 $ (53 ) $ 52 Long-term assets - 34 - 34 - 34 Foreign Currency Derivatives: Current assets - 1 - 1 - 1 Risk Management Liabilities Commodity Derivatives: Current liabilities $ - $ 128 $ - $ 128 $ (53 ) $ 75 Foreign Currency Derivatives: Current liabilities - 11 - 11 - 11 Other Derivative Contracts (2) Long-term in other liabilities and provisions $ - $ 5 $ - $ 5 $ - $ 5 As at December 31, 2021 Level 1 Quoted Prices in Active Markets Level 2 Other Observable Inputs Level 3 Significant Unobservable Inputs Total Fair Value Netting (1) Carrying Amount Risk Management Assets Commodity Derivatives: Current assets $ - $ 10 $ - $ 10 $ (10 ) $ - Long-term assets - 1 - 1 (1 ) - Foreign Currency Derivatives: Current assets - 5 - 5 (4 ) 1 Risk Management Liabilities Commodity Derivatives: Current liabilities $ - $ 536 $ 181 $ 717 $ (10 ) $ 707 Long-term liabilities - 26 - 26 (1 ) 25 Foreign Currency Derivatives: Current liabilities - - - - (4 ) (4 ) Other Derivative Contracts ( 3 ) Current in accounts receivable and accrued revenues $ - $ - $ 9 $ 9 $ - $ 9 Current in accounts payable and accrued liabilities - 1 - 1 - 1 Long-term in other liabilities and provisions - 5 - 5 - 5 (1) Netting to offset derivative assets and liabilities where the legal right and intention to offset exists, or where counterparty master netting arrangements contain provisions for net settlement. (2) Includes credit derivatives associated with certain prior years’ divestitures. |
Summary Of Changes In Level 3 Fair Value Measurements | A summary of changes in Level 3 fair value measurements for risk management positions is presented below: Risk Management 2022 2021 Balance, Beginning of Year $ (172 ) $ (74 ) Total Gains (Losses) (449 ) (708 ) Purchases, Sales, Issuances and Settlements: Purchases, sales and issuances (1) - 6 Settlements 633 604 Transfers Out of Level 3 - - Balance, End of Year $ 12 $ (172 ) Change in Unrealized Gains (Losses) During the Year Included in Net Earnings (Loss) $ 184 $ (104 ) (1) Purchases, sales and issuances for the year ended December 31, 2021, reflects the fair value of the contingent consideration arrangement at the closing date of the Duvernay divestiture discussed in Note 8. |
Quantitative Information About Unobservable Inputs Used In Level 3 | Quantitative information about unobservable inputs used in Level 3 fair value measurements is presented below as at December 31, 2022: Valuation Technique Unobservable Input Range Weighted Average (1) Risk Management - WTI Options Option Model Implied Volatility 14% - 52% 44% (1) Unobservable inputs were weighted by the relative fair value of the instruments. |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Risk Management Positions | Notional Volumes Term Average Price Fair Value Oil and NGL Contracts US$/bbl WTI Three-Way Options Sold call / bought put / sold put 38.0 Mbbls/d 2023 113.35 / 65.33 / 50.00 $ 12 Basis Contracts (1) 2023 - Oil and NGLs Fair Value Position 12 Natural Gas Contracts US$/Mcf NYMEX Three-Way Options Sold call / bought put / sold put 397 MMcf/d 2023 8.27 / 3.68 / 2.63 16 Basis Contracts (2) 2023 (52 ) 2024 26 2025 8 Other Financial Positions 1 Natural Gas Fair Value Position (1 ) Other Derivative Contracts Fair Value Position (3) (5 ) Foreign Currency Contracts Fair Value Position (4) 2023 (10 ) Total Fair Value Position $ (4 ) (1) Ovintiv has entered into oil differential swaps associated with Canadian condensate and WTI. ( 2 ) Ovintiv has entered into natural gas basis swaps associated with AECO, Malin, Waha and NYMEX. ( 3 ) Includes credit derivatives associated with certain prior years’ divestitures. ( 4 ) Ovintiv has entered into U.S. dollar denominated fixed-for-floating average currency swaps to protect against fluctuations between the Canadian and U.S. dollars. |
Earnings Impact of Realized and Unrealized Gains (Losses) on Risk Management Positions | For the years ended December 31 2022 2021 2020 Realized Gains (Losses) on Risk Management Commodity and Other Derivatives: Revenues (1) $ (2,608 ) $ (1,395 ) $ 711 Foreign Currency Derivatives: Foreign exchange (5 ) 33 (1 ) $ (2,613 ) $ (1,362 ) $ 710 Unrealized Gains (Losses) on Risk Management Commodity and Other Derivatives: Revenues (2) $ 741 $ (488 ) $ (204 ) Foreign Currency Derivatives: Foreign exchange (15 ) (21 ) 13 $ 726 $ (509 ) $ (191 ) Total Realized and Unrealized Gains (Losses) on Risk Management, net Commodity and Other Derivatives: Revenues (1) (2) $ (1,867 ) $ (1,883 ) $ 507 Foreign Currency Derivatives: Foreign exchange (20 ) 12 12 $ (1,887 ) $ (1,871 ) $ 519 (1) Includes a realized gain of $6 million for the year ended December 31, 2022 (2021 - gain of $1 million; 2020 - gain of $2 million) related to other derivative contracts. (2) Includes an unrealized loss of $2 million for the year ended December 31, 2022 (2021 - gain of $4 million; 2020 - loss of $1 million) related to other derivative contracts. |
Reconciliation of Unrealized Risk Management Positions | 2022 2021 2020 Fair Value Total Unrealized Gain (Loss) Total Unrealized Gain (Loss) Total Unrealized Gain (Loss) Fair Value of Contracts, Beginning of Year $ (724 ) Change in Fair Value of Contracts in Place at Beginning of Year and Contracts Entered into During the Year (1,887 ) $ (1,887 ) $ (1,871 ) $ 519 Settlement of Other Derivative Contracts (6 ) Fair Value of Contracts Realized During the Year 2,613 2,613 1,362 (710 ) Fair Value of Contracts, End of Year $ (4 ) $ 726 $ (509 ) $ (191 ) |
Unrealized Risk Management Positions | As at December 31 2022 2021 Risk Management Assets Current $ 53 $ 1 Long-term 34 - 87 1 Risk Management Liabilities Current 86 703 Long-term - 25 86 728 Other Derivative Contract Assets Current in accounts receivable and accrued revenues - 9 - 9 Other Derivative Contract Liabilities Current in accounts payable and accrued liabilities - 1 Long-term in other liabilities and provisions 5 5 5 6 Net Risk Management Assets (Liabilities) and Other Derivative Contracts $ (4 ) $ (724 ) |
Supplementary Information (Tabl
Supplementary Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Net Change in Non-Cash Working Capital | A) NET CHANGE IN NON-CASH WORKING CAPITAL For the years ended December 31 2022 2021 2020 Operating Activities Accounts receivable and accrued revenues $ (304 ) $ (333 ) $ 146 Accounts payable and accrued liabilities 50 275 (26 ) Current portion of operating lease liabilities 14 (7 ) (11 ) Income tax receivable and payable 53 24 30 $ (187 ) $ (41 ) $ 139 |
Non-Cash Activities | B) NON-CASH ACTIVITIES For the years ended December 31 2022 2021 2020 Non-Cash Operating Activities ROU operating lease assets and liabilities (See Note 13) $ (75 ) $ (23 ) $ (10 ) Non-Cash Investing Activities Asset retirement obligation incurred (See Note 16) $ 4 $ 8 $ 7 Asset retirement obligation change in estimated future cash outflows (See Note 16) 58 5 (49 ) Property, plant and equipment accruals 35 (9 ) (175 ) Capitalized long-term incentives 4 8 (16 ) Property additions/dispositions, including swaps 126 34 229 Contingent consideration (See Note 8) - 6 - |
Supplementary Cash Flow Information | C) SUPPLEMENTARY CASH FLOW INFORMATION For the years ended December 31 2022 2021 2020 Interest Paid $ 376 $ 370 $ 385 Income Taxes (Recovered), net of Amounts Paid $ (38 ) $ (176 ) $ (52 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments | The following table outlines the Company’s commitments as at December 31, 2022: Expected Future Payments (undiscounted) 2023 2024 2025 2026 2027 Thereafter Total Transportation and Processing $ 790 $ 687 $ 570 $ 490 $ 463 $ 2,156 $ 5,156 Drilling and Field Services 299 21 - - - - 320 Building Leases 9 9 8 2 - - 28 Total $ 1,098 $ 717 $ 578 $ 492 $ 463 $ 2,156 $ 5,504 |
Supplementary Oil and Gas Inf_2
Supplementary Oil and Gas Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Extractive Industries [Abstract] | |
12 Month Average Trailing Prices | The following reference prices were utilized in the determination of reserves and future net revenue: Oil & NGLs Natural Gas WTI ($/bbl) Edmonton Condensate (C$/bbl) Henry Hub ($/MMBtu) AECO (C$/MMBtu) Reserves Pricing (1) 2022 $ 93.82 $ 121.18 $ 6.36 $ 5.65 2021 66.56 83.69 3.60 3.26 2020 39.62 49.77 1.98 2.13 (1) All prices were held constant in all future years when estimating net revenues and reserves. |
Net Proved Reserves | Oil (MMbbls) NGLs (MMbbls) Natural Gas (Bcf) Total (MMBOE) United States Canada Total United States Canada Total United States Canada Total 2020 Beginning of year 722.4 1.3 723.7 409.4 179.1 588.5 2,441 2,818 5,259 2,188.8 Revisions and improved recovery (2) (221.5 ) (0.5 ) (222.0 ) (29.1 ) (33.1 ) (62.2 ) (323 ) (161 ) (484 ) (364.9 ) Extensions and discoveries 144.3 0.1 144.4 78.1 27.7 105.8 392 372 764 377.5 Purchase of reserves in place 9.9 1.0 10.9 8.4 11.6 20.0 47 94 140 54.3 Sale of reserves in place (9.3 ) - (9.3 ) (7.9 ) (13.4 ) (21.4 ) (95 ) (106 ) (201 ) (64.1 ) Production (55.2 ) (0.2 ) (55.4 ) (29.8 ) (20.5 ) (50.3 ) (194 ) (366 ) (560 ) (199.0 ) End of year 590.5 1.7 592.3 429.1 151.4 580.5 2,268 2,650 4,918 1,992.5 Developed 279.1 1.7 280.9 242.3 76.9 319.3 1,327 1,740 3,067 1,111.3 Undeveloped 311.4 - 311.4 186.7 74.5 261.2 941 910 1,851 881.1 Total 590.5 1.7 592.3 429.1 151.4 580.5 2,268 2,650 4,918 1,992.5 2021 Beginning of year 590.5 1.7 592.3 429.1 151.4 580.5 2,268 2,650 4,918 1,992.5 Revisions and improved recovery (2) (78.7 ) 0.7 (78.0 ) (30.0 ) (20.3 ) (50.3 ) 61 302 363 (67.8 ) Extensions and discoveries 121.2 0.3 121.5 75.1 66.9 142.0 428 1,538 1,966 591.2 Purchase of reserves in place 2.6 - 2.6 1.6 0.9 2.5 7 6 13 7.3 Sale of reserves in place (27.0 ) (1.6 ) (28.6 ) (12.6 ) (8.4 ) (21.0 ) (50 ) (73 ) (123 ) (70.2 ) Production (51.1 ) (0.1 ) (51.2 ) (28.5 ) (20.5 ) (49.0 ) (179 ) (389 ) (568 ) (194.9 ) End of year 557.5 1.1 558.6 434.7 170.0 604.7 2,536 4,033 6,570 2,258.2 Developed 291.0 0.7 291.7 264.3 84.5 348.8 1,621 2,490 4,111 1,325.7 Undeveloped 266.6 0.3 266.9 170.5 85.4 255.9 915 1,543 2,458 932.5 Total 557.5 1.1 558.6 434.7 170.0 604.7 2,536 4,033 6,570 2,258.2 2022 Beginning of year 557.5 1.1 558.6 434.7 170.0 604.7 2,536 4,033 6,570 2,258.2 Revisions and improved recovery (2) (65.1 ) (0.3 ) (65.5 ) 2.9 (36.0 ) (33.2 ) 38 (582 ) (544 ) (189.2 ) Extensions and discoveries 95.2 - 95.2 37.2 31.3 68.5 237 1,005 1,241 370.6 Purchase of reserves in place 15.8 - 15.8 13.7 1.7 15.4 72 16 88 45.9 Sale of reserves in place (20.2 ) (0.6 ) (20.8 ) (0.7 ) (0.6 ) (1.3 ) (5 ) (16 ) (22 ) (25.7 ) Production (48.0 ) - (48.0 ) (29.9 ) (17.3 ) (47.3 ) (180 ) (366 ) (545 ) (186.2 ) End of year 535.2 0.1 535.3 457.8 149.0 606.9 2,698 4,090 6,789 2,273.6 Developed 257.2 0.1 257.3 288.3 71.2 359.5 1,755 2,276 4,031 1,288.7 Undeveloped 278.0 - 278.0 169.5 77.8 247.4 943 1,814 2,757 984.9 Total 535.2 0.1 535.3 457.8 149.0 606.9 2,698 4,090 6,789 2,273.6 (1) Numbers may not add due to rounding. (2) Changes in reserve estimates resulting from application of improved recovery techniques are included in revisions of previous estimates. |
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves | United States Canada 2022 2021 2020 2022 2021 2020 Future Cash Inflows $ 74,567 $ 51,473 $ 26,093 $ 29,149 $ 18,312 $ 7,156 Less Future: Production costs 17,043 12,272 8,864 8,173 7,679 4,202 Development costs 8,951 5,767 6,187 2,142 2,061 1,859 Income taxes 9,333 5,480 74 4,182 1,695 - Future Net Cash Flows 39,240 27,954 10,968 14,652 6,877 1,095 Less 10% annual discount for estimated timing of cash flows 20,272 13,663 5,895 6,121 2,393 246 Discounted Future Net Cash Flows $ 18,968 $ 14,291 $ 5,073 $ 8,531 $ 4,484 $ 849 Total 2022 2021 2020 Future Cash Inflows $ 103,716 $ 69,785 $ 33,249 Less Future: Production costs 25,216 19,951 13,066 Development costs 11,093 7,828 8,046 Income taxes 13,515 7,175 74 Future Net Cash Flows 53,892 34,831 12,063 Less 10% annual discount for estimated timing of cash flows 26,393 16,056 6,141 Discounted Future Net Cash Flows $ 27,499 $ 18,775 $ 5,922 |
Changes in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves | United States Canada 2022 2021 2020 2022 2021 2020 Balance, Beginning of Year $ 14,291 $ 5,073 $ 10,041 $ 4,484 $ 849 $ 1,575 Changes Resulting From: Sales of oil and gas produced during the year (5,007 ) (3,608 ) (1,605 ) (2,333 ) (1,479 ) (405 ) Discoveries and extensions, net of related costs 2,735 3,102 1,080 2,635 2,119 140 Purchases of proved reserves in place 661 63 98 58 13 44 Sales and transfers of proved reserves in place (278 ) (199 ) (255 ) (28 ) (38 ) (97 ) Net change in prices and production costs 9,059 10,702 (7,119 ) 5,532 3,266 (1,563 ) Revisions to quantity estimates (712 ) (407 ) (2,346 ) (961 ) 201 (188 ) Accretion of discount 1,630 508 1,064 545 85 158 Development costs incurred during the year 1,475 1,139 1,341 339 397 535 Changes in estimated future development costs (2,965 ) (83 ) 2,183 (303 ) 41 652 Other (2 ) 1 - - - (2 ) Net change in income taxes (1,919 ) (2,000 ) 591 (1,437 ) (970 ) - Balance, End of Year $ 18,968 $ 14,291 $ 5,073 $ 8,531 $ 4,484 $ 849 Total 2022 2021 2020 Balance, Beginning of Year $ 18,775 $ 5,922 $ 11,616 Changes Resulting From: Sales of oil and gas produced during the year (7,340 ) (5,087 ) (2,010 ) Discoveries and extensions, net of related costs 5,370 5,221 1,220 Purchases of proved reserves in place 719 76 142 Sales and transfers of proved reserves in place (306 ) (237 ) (352 ) Net change in prices and production costs 14,591 13,968 (8,682 ) Revisions to quantity estimates (1,673 ) (206 ) (2,534 ) Accretion of discount 2,175 593 1,222 Development costs incurred during the year 1,814 1,536 1,876 Changes in estimated future development costs (3,268 ) (42 ) 2,835 Other (2 ) 1 (2 ) Net change in income taxes (3,356 ) (2,970 ) 591 Balance, End of Year $ 27,499 $ 18,775 $ 5,922 |
Results of Operations | The following table sets forth revenue and direct cost information relating to the Company’s oil and natural gas exploration and production activities. United States Canada 2022 2021 2020 2022 2021 2020 Oil, NGL and Natural Gas Revenues (1) $ 6,680 $ 4,883 $ 2,701 $ 3,476 $ 2,542 $ 1,349 Less: Production, mineral and other taxes 401 278 158 14 15 15 Transportation and processing 626 507 453 1,002 937 829 Operating 646 490 485 127 111 100 Depreciation, depletion and amortization 861 837 1,378 235 332 427 Impairments - - 5,580 - - - Accretion of asset retirement obligation 8 11 13 10 11 16 Operating Income (Loss) 4,138 2,760 (5,366 ) 2,088 1,136 (38 ) Income Taxes 952 673 (1,309 ) 499 272 (9 ) Results of Operations $ 3,186 $ 2,087 $ (4,057 ) $ 1,589 $ 864 $ (29 ) Total 2022 2021 2020 Oil, NGL and Natural Gas Revenues (1) $ 10,156 $ 7,425 $ 4,050 Less: Production, mineral and other taxes 415 293 173 Transportation and processing 1,628 1,444 1,282 Operating 773 601 585 Depreciation, depletion and amortization 1,096 1,169 1,805 Impairments - - 5,580 Accretion of asset retirement obligation 18 22 29 Operating Income (Loss) 6,226 3,896 (5,404 ) Income Taxes 1,451 945 (1,318 ) Results of Operations $ 4,775 $ 2,951 $ (4,086 ) (1) Excludes gains (losses) on risk management. |
Capitalized Costs | United States Canada 2022 2021 2020 2022 2021 2020 Proved Oil and Gas Properties $ 41,382 $ 39,145 $ 37,875 $ 15,672 $ 16,330 $ 16,008 Unproved Oil and Gas Properties 1,127 1,884 2,785 45 60 177 Total Capital Cost 42,509 41,029 40,660 15,717 16,390 16,185 Accumulated DD&A 34,280 33,418 32,581 14,687 15,450 15,056 Net Capitalized Costs $ 8,229 $ 7,611 $ 8,079 $ 1,030 $ 940 $ 1,129 Total 2022 2021 2020 Proved Oil and Gas Properties $ 57,054 $ 55,475 $ 53,883 Unproved Oil and Gas Properties 1,172 1,944 2,962 Total Capital Cost 58,226 57,419 56,845 Accumulated DD&A 48,967 48,868 47,637 Net Capitalized Costs $ 9,259 $ 8,551 $ 9,208 |
Costs Incurred | United States Canada 2022 2021 2020 2022 2021 2020 Acquisition Costs Unproved $ 154 $ 2 $ 16 $ - $ - $ - Proved 123 9 3 9 - - Total Acquisition Costs 277 11 19 9 - - Exploration Costs 5 10 12 7 5 - Development Costs 1,530 1,148 1,352 376 388 353 Total Costs Incurred $ 1,812 $ 1,169 $ 1,383 $ 392 $ 393 $ 353 Total 2022 2021 2020 Acquisition Costs Unproved $ 154 $ 2 $ 16 Proved 132 9 3 Total Acquisition Costs 286 11 19 Exploration Costs 12 15 12 Development Costs 1,906 1,536 1,705 Total Costs Incurred $ 2,204 $ 1,562 $ 1,736 |
Costs Not Subject to Depletion or Amortization | Upstream costs in respect of significant unproved properties are excluded from the country cost center’s depletable base as follows: As at December 31 2022 2021 United States $ 1,127 $ 1,884 Canada 45 60 $ 1,172 $ 1,944 The following is a summary of the costs related to Ovintiv’s unproved properties as at December 31, 2022: 2022 2021 2020 Prior to 2020 Total Acquisition Costs $ 154 $ 2 $ 22 $ 894 $ 1,072 Exploration Costs 5 11 7 77 100 $ 159 $ 13 $ 29 $ 971 $ 1,172 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narative) (Details) | 12 Months Ended | |
Jan. 24, 2020 | Dec. 31, 2022 | |
Issued and outstanding common shares in exchange for common stock, ratio | 100% | |
Common stock exchange, description | one-for-one basis | |
Corporate [Member] | Minimum [Member] | ||
Assets estimated service lives | 3 years | |
Corporate [Member] | Maximum [Member] | ||
Assets estimated service lives | 25 years |
Segmented Information (Segment
Segmented Information (Segment Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Product and service revenues | $ 14,263 | $ 10,468 | $ 5,509 |
Gains (losses) on risk management, net | (1,867) | (1,883) | 507 |
Sublease revenues | 68 | 73 | 71 |
Total Revenues | 12,464 | 8,658 | 6,087 |
Production, mineral and other taxes | 415 | 293 | 173 |
Transportation and processing | 1,786 | 1,616 | 1,502 |
Operating | 802 | 625 | 605 |
Purchased product | 4,055 | 2,951 | 1,366 |
Depreciation, depletion and amortization | 1,113 | 1,190 | 1,834 |
Accretion of asset retirement obligation | 18 | 22 | 29 |
Administrative | 422 | 442 | 395 |
Impairments | 0 | 0 | 5,580 |
Total Operating Expenses | 8,611 | 7,139 | 11,484 |
Operating Income (Loss) | 3,853 | 1,519 | (5,397) |
Interest | 311 | 340 | 371 |
Foreign exchange (gain) loss, net | 15 | (23) | 17 |
Other (gains) losses, net | (33) | (37) | (55) |
Total Other (Income) Expenses | 293 | 280 | 333 |
Net Earnings (Loss) Before Income Tax | 3,560 | 1,239 | (5,730) |
Income tax expense (recovery) | (77) | (177) | 367 |
Net Earnings (Loss) | 3,637 | 1,416 | (6,097) |
Corporate & Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Product and service revenues | 0 | 0 | 0 |
Gains (losses) on risk management, net | 741 | (488) | (204) |
Sublease revenues | 68 | 73 | 71 |
Total Revenues | 809 | (415) | (133) |
Production, mineral and other taxes | 0 | 0 | 0 |
Transportation and processing | 0 | 0 | 0 |
Operating | 0 | (1) | (2) |
Purchased product | 0 | 0 | 0 |
Depreciation, depletion and amortization | 17 | 21 | 29 |
Accretion of asset retirement obligation | 18 | 22 | 29 |
Administrative | 422 | 442 | 395 |
Impairments | 0 | 0 | 0 |
Total Operating Expenses | 457 | 484 | 451 |
Operating Income (Loss) | 352 | (899) | (584) |
USA Operations [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Product and service revenues | 6,680 | 4,883 | 2,701 |
Gains (losses) on risk management, net | (1,123) | (982) | 497 |
Sublease revenues | 0 | 0 | 0 |
Total Revenues | 5,557 | 3,901 | 3,198 |
Production, mineral and other taxes | 401 | 278 | 158 |
Transportation and processing | 626 | 507 | 453 |
Operating | 646 | 490 | 485 |
Purchased product | 0 | 0 | 0 |
Depreciation, depletion and amortization | 861 | 837 | 1,378 |
Impairments | 0 | 0 | 5,580 |
Total Operating Expenses | 2,534 | 2,112 | 8,054 |
Operating Income (Loss) | 3,023 | 1,789 | (4,856) |
Canadian Operations [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Product and service revenues | 3,476 | 2,542 | 1,349 |
Gains (losses) on risk management, net | (1,485) | (413) | 207 |
Sublease revenues | 0 | 0 | 0 |
Total Revenues | 1,991 | 2,129 | 1,556 |
Production, mineral and other taxes | 14 | 15 | 15 |
Transportation and processing | 1,002 | 937 | 829 |
Operating | 127 | 111 | 100 |
Purchased product | 0 | 0 | 0 |
Depreciation, depletion and amortization | 235 | 332 | 427 |
Impairments | 0 | 0 | 0 |
Total Operating Expenses | 1,378 | 1,395 | 1,371 |
Operating Income (Loss) | 613 | 734 | 185 |
Market Optimization [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Product and service revenues | 4,107 | 3,043 | 1,459 |
Gains (losses) on risk management, net | 0 | 0 | 7 |
Sublease revenues | 0 | 0 | 0 |
Total Revenues | 4,107 | 3,043 | 1,466 |
Production, mineral and other taxes | 0 | 0 | 0 |
Transportation and processing | 158 | 172 | 220 |
Operating | 29 | 25 | 22 |
Purchased product | 4,055 | 2,951 | 1,366 |
Depreciation, depletion and amortization | 0 | 0 | 0 |
Impairments | 0 | 0 | 0 |
Total Operating Expenses | 4,242 | 3,148 | 1,608 |
Operating Income (Loss) | $ (135) | $ (105) | $ (142) |
Segmented Information (Schedule
Segmented Information (Schedule of Marketing Intersegment Eliminations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Product Information [Line Items] | |||
Revenues | $ 12,464 | $ 8,658 | $ 6,087 |
Transportation and processing | 1,786 | 1,616 | 1,502 |
Operating | 802 | 625 | 605 |
Purchased product | 4,055 | 2,951 | 1,366 |
Operating Income (Loss) | 3,853 | 1,519 | (5,397) |
Market Optimization [Member] | Operating Segments [Member] | |||
Product Information [Line Items] | |||
Revenues | 4,107 | 3,043 | 1,466 |
Transportation and processing | 158 | 172 | 220 |
Operating | 29 | 25 | 22 |
Purchased product | 4,055 | 2,951 | 1,366 |
Operating Income (Loss) | (135) | (105) | (142) |
Market Optimization [Member] | Reportable Subsegments [Member] | Marketing Sales [Member] | |||
Product Information [Line Items] | |||
Revenues | 15,622 | 10,630 | 6,108 |
Transportation and processing | 646 | 571 | 616 |
Operating | 29 | 25 | 22 |
Purchased product | 15,082 | 10,140 | 5,612 |
Operating Income (Loss) | (135) | (106) | (142) |
Market Optimization [Member] | Intersubsegment Eliminations [Member] | |||
Product Information [Line Items] | |||
Revenues | (11,515) | (7,587) | (4,642) |
Transportation and processing | (488) | (399) | (396) |
Operating | 0 | 0 | 0 |
Purchased product | (11,027) | (7,189) | (4,246) |
Operating Income (Loss) | $ 0 | $ 1 | $ 0 |
Segmented Information (Revenue
Segmented Information (Revenue by Geographic Region) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Product revenues | $ 14,263 | $ 10,468 | $ 5,509 |
Other revenues | 4,189 | 3,125 | 1,536 |
Gains (losses) on risk management, net | (1,867) | (1,883) | 507 |
Total Revenues | 12,464 | 8,658 | 6,087 |
United States [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Other revenues | 3,679 | 2,785 | 1,310 |
Gains (losses) on risk management, net | (796) | (1,160) | 406 |
Total Revenues | 9,560 | 6,508 | 4,414 |
Canada [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Other revenues | 510 | 340 | 226 |
Gains (losses) on risk management, net | (1,071) | (723) | 101 |
Total Revenues | 2,904 | 2,150 | 1,673 |
Oil [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Product revenues | 4,527 | 3,364 | 2,042 |
Oil [Member] | United States [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Product revenues | 4,524 | 3,357 | 2,035 |
Oil [Member] | Canada [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Product revenues | 3 | 7 | 7 |
Natural Gas Liquids [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Product revenues | 2,403 | 2,020 | 955 |
Natural Gas Liquids [Member] | United States [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Product revenues | 1,045 | 862 | 353 |
Natural Gas Liquids [Member] | Canada [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Product revenues | 1,358 | 1,158 | 602 |
Natural Gas [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Product revenues | 3,212 | 2,032 | 1,047 |
Natural Gas [Member] | United States [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Product revenues | 1,108 | 664 | 310 |
Natural Gas [Member] | Canada [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Product revenues | $ 2,104 | $ 1,368 | $ 737 |
Segmented Information (Narrativ
Segmented Information (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total Revenues | $ 12,464 | $ 8,658 | $ 6,087 |
Major Customers Accounting For More Than 10 Percent of Revenues [member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Major Customers | one | one | one |
First Major Customer Accounting For More Than 10 Percent of Revenues [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total Revenues | $ 2,231 | $ 1,573 | $ 834 |
Canada [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total Revenues | 2,904 | 2,150 | 1,673 |
Canada [Member] | First Major Customer Accounting For More Than 10 Percent of Revenues [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total Revenues | 15 | ||
United States [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total Revenues | 9,560 | $ 6,508 | $ 4,414 |
United States [Member] | First Major Customer Accounting For More Than 10 Percent of Revenues [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total Revenues | $ 2,216 |
Segmented Information (Capital
Segmented Information (Capital Expenditures by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Capital Expenditures | $ 1,831 | $ 1,519 | $ 1,736 |
Operating Segments [Member] | USA Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 1,493 | 1,125 | 1,353 |
Operating Segments [Member] | Canadian Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 334 | 391 | 380 |
Corporate & Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | $ 4 | $ 3 | $ 3 |
Segmented Information (Goodwill
Segmented Information (Goodwill, Property, Plant and Equipment and Total Assets by Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Goodwill | $ 2,584 | $ 2,628 |
Property, Plant and Equipment | 9,468 | 8,761 |
Total Assets | 15,056 | 14,055 |
Operating Segments [Member] | USA Operations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Goodwill | 1,938 | 1,938 |
Property, Plant and Equipment | 8,259 | 7,623 |
Total Assets | 11,043 | 10,345 |
Operating Segments [Member] | Canadian Operations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Goodwill | 646 | 690 |
Property, Plant and Equipment | 1,044 | 951 |
Total Assets | 2,075 | 1,932 |
Operating Segments [Member] | Market Optimization [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Goodwill | 0 | 0 |
Property, Plant and Equipment | 0 | 0 |
Total Assets | 446 | 300 |
Corporate & Other [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Goodwill | 0 | 0 |
Property, Plant and Equipment | 165 | 187 |
Total Assets | $ 1,492 | $ 1,478 |
Segmented Information (Goodwi_2
Segmented Information (Goodwill, Property, Plant and Equipment and Total Assets by Geographic Region) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Goodwill | $ 2,584 | $ 2,628 | |
Property, Plant and Equipment | 9,468 | 8,761 | |
Total Assets | 15,056 | 14,055 | |
United States [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Goodwill | 1,938 | 1,938 | $ 1,938 |
Property, Plant and Equipment | 8,316 | 7,673 | |
Total Assets | 11,749 | 10,715 | |
Canada [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Goodwill | 646 | 690 | $ 687 |
Property, Plant and Equipment | 1,152 | 1,088 | |
Total Assets | 3,307 | 3,337 | |
Other Countries [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Goodwill | 0 | 0 | |
Property, Plant and Equipment | 0 | 0 | |
Total Assets | $ 0 | $ 3 |
Revenues from Contracts with _3
Revenues from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Product revenues | $ 14,263 | $ 10,468 | $ 5,509 |
Operating Segments [Member] | USA Operations Excluding Intercompany Segment Transactions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 6,696 | 4,897 | 2,711 |
Operating Segments [Member] | Canadian Operations Excluding Intercompany Segment Transactions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 3,487 | 2,552 | 1,359 |
Operating Segments [Member] | Market Optimization Excluding Intercompany Segment Transactions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 4,080 | 3,019 | 1,439 |
Corporate & Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 0 | 0 | 0 |
Oil [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 4,527 | 3,364 | 2,042 |
Oil [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 7,955 | 5,644 | 2,668 |
Oil [Member] | Operating Segments [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | USA Operations Excluding Intercompany Segment Transactions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 4,537 | 3,369 | 2,045 |
Oil [Member] | Operating Segments [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | Canadian Operations Excluding Intercompany Segment Transactions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 3 | 7 | 7 |
Oil [Member] | Operating Segments [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | Market Optimization Excluding Intercompany Segment Transactions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 3,415 | 2,268 | 616 |
Oil [Member] | Corporate & Other [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 0 | 0 | 0 |
Natural Gas Liquids [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 2,403 | 2,020 | 955 |
Natural Gas Liquids [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 2,431 | 2,069 | 970 |
Natural Gas Liquids [Member] | Operating Segments [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | USA Operations Excluding Intercompany Segment Transactions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 1,049 | 864 | 354 |
Natural Gas Liquids [Member] | Operating Segments [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | Canadian Operations Excluding Intercompany Segment Transactions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 1,363 | 1,163 | 606 |
Natural Gas Liquids [Member] | Operating Segments [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | Market Optimization Excluding Intercompany Segment Transactions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 19 | 42 | 10 |
Natural Gas Liquids [Member] | Corporate & Other [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 0 | 0 | 0 |
Natural Gas [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 3,212 | 2,032 | 1,047 |
Natural Gas [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 3,872 | 2,745 | 1,865 |
Natural Gas [Member] | Operating Segments [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | USA Operations Excluding Intercompany Segment Transactions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 1,107 | 664 | 309 |
Natural Gas [Member] | Operating Segments [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | Canadian Operations Excluding Intercompany Segment Transactions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 2,119 | 1,377 | 743 |
Natural Gas [Member] | Operating Segments [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | Market Optimization Excluding Intercompany Segment Transactions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 646 | 704 | 813 |
Natural Gas [Member] | Corporate & Other [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 0 | 0 | 0 |
Natural Gas Gathering and Processing [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 5 | 10 | 6 |
Natural Gas Gathering and Processing [Member] | Operating Segments [Member] | USA Operations Excluding Intercompany Segment Transactions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 3 | 0 | 3 |
Natural Gas Gathering and Processing [Member] | Operating Segments [Member] | Canadian Operations Excluding Intercompany Segment Transactions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 2 | 5 | 3 |
Natural Gas Gathering and Processing [Member] | Operating Segments [Member] | Market Optimization Excluding Intercompany Segment Transactions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | 0 | 5 | 0 |
Natural Gas Gathering and Processing [Member] | Corporate & Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Product revenues | $ 0 | $ 0 | $ 0 |
Revenues from Contracts with _4
Revenues from Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |||
Contract with customer, asset net | $ 0 | $ 0 | $ 0 |
Contract with customer, liability | 0 | 0 | $ 0 |
Receivables & accrued revenues from contracts with customers | 1,257 | $ 1,070 | |
Revenue, remaining performance obligation | $ 0 | ||
Description of payment terms | As the period between when the product sales are transferred and Ovintiv receives payments is generally 30 to 60 days, there is no financing element associated with customer contracts. |
Interest (Details)
Interest (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest Expense [Abstract] | |||
Interest Expense on Debt | $ 297 | $ 323 | $ 350 |
Interest on Finance leases (See Note 14) | 2 | 3 | 9 |
Interest - Other | 12 | 14 | 12 |
Interest | $ 311 | $ 340 | $ 371 |
Interest (Narrative) (Details)
Interest (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Interest Expense [Line Items] | |||
Interest expense on debt | $ 297 | $ 323 | $ 350 |
Premiums Paid to Repurchase Certain Senior Notes [Member] | |||
Schedule Of Interest Expense [Line Items] | |||
Interest expense on debt | 22 | ||
5.75% Senior Notes [Member] | Senior Notes, Due January 30, 2022 [Member] | |||
Schedule Of Interest Expense [Line Items] | |||
Interest expense on debt | 47 | $ 19 | |
Senior Notes, Due July 01, 2024 [Member] | Senior Notes, Due July 01, 2024 [Member] | |||
Schedule Of Interest Expense [Line Items] | |||
Non-cash fair value amortization | $ 30 |
Foreign Exchange (Gain) Loss,_3
Foreign Exchange (Gain) Loss, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Foreign Exchange Transactions [Line Items] | |||
Unrealized Foreign Exchange (Gain) Loss | $ 14 | $ 21 | $ 11 |
Foreign Exchange (Gain) Loss, Net | 15 | (23) | 17 |
Translation of U.S. Dollar Debt Issued From Canada [Member] | |||
Schedule Of Foreign Exchange Transactions [Line Items] | |||
Unrealized Foreign Exchange (Gain) Loss | 0 | 1 | 51 |
Foreign Exchange on Settlements | 8 | (8) | 1 |
Translation of U.S. Dollar Risk Management Contracts Issued From Canada [Member] | |||
Schedule Of Foreign Exchange Transactions [Line Items] | |||
Unrealized Foreign Exchange (Gain) Loss | 14 | 20 | (13) |
Foreign Exchange on Settlements | 5 | (33) | 1 |
Translation of Intercompany Notes [Member] | |||
Schedule Of Foreign Exchange Transactions [Line Items] | |||
Unrealized Foreign Exchange (Gain) Loss | 0 | 0 | (27) |
Foreign Exchange on Settlements | 0 | (3) | 5 |
Other Monetary Revaluations [Member] | |||
Schedule Of Foreign Exchange Transactions [Line Items] | |||
Foreign Exchange on Settlements | $ (12) | $ 0 | $ (1) |
Income Taxes (Provision For Inc
Income Taxes (Provision For Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Total Current Tax Expense (Recovery) | $ 10 | $ (156) | $ (14) |
Total Deferred Tax Expense (Recovery) | (87) | (21) | 381 |
Income Tax Expense (Recovery) | (77) | (177) | 367 |
United States [Member] | |||
Total Current Tax Expense (Recovery) | 10 | 0 | (12) |
Total Deferred Tax Expense (Recovery) | (275) | 1 | (187) |
Canada [Member] | |||
Total Current Tax Expense (Recovery) | 0 | (156) | (2) |
Total Deferred Tax Expense (Recovery) | $ 188 | $ (22) | $ 568 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Line Items] | ||||
Reduction of unrecognized tax benefits | $ 222 | |||
Increase (Reduction) in valuation allowance | (66) | $ 558 | $ 2,900 | |
Deferred tax assets valuation allowance, reversed | (1,299) | (558) | $ 2,900 | |
Deferred tax assets valuation allowance | $ 1,326 | $ 2,733 | ||
Effective Tax Rate | (2.20%) | (14.30%) | (6.40%) | |
United States Federal Statutory Rate | 21% | 21% | 21% | |
Effective income tax rate reconciliation, tax cuts and jobs act, amount | $ 0 | |||
Expenditures capitalized amortization period | 5 years | |||
Undistributed Earnings from Foreign Subsidiaries | $ 0 | |||
Deferred income tax liabilities | 184 | 4 | ||
Taxable temporary difference in respect of unremitted earnings | 339 | |||
Unrecognized Tax Benefit, interest expense | 6 | $ 0 | ||
Unrecognized Tax Benefit, Liability for accrued interest | $ 0 | |||
Unremitted Earnings Permanently Reinvested [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred income tax liabilities | $ 17 | |||
Canada [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Increase (Reduction) in valuation allowance | $ 1,200 | $ 568 | ||
United States [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
United States Federal Statutory Rate | 21% | 21% | 21% | |
U.S. and Canada [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax assets valuation allowance | $ 1,028 | |||
United States [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax assets valuation allowance | 271 | |||
Deferred income tax liabilities | 0 | $ 4 | ||
United States [Member] | Federal and State Losses [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax assets valuation allowance | 47 | 1,044 | ||
Canada [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred income tax liabilities | 184 | 0 | ||
Canada [Member] | Net Operating Losses [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax assets valuation allowance | 1,279 | $ 1,689 | ||
Other (Gains) Losses, Net [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Interest income | $ 12 |
Income Taxes (Income Taxes Reco
Income Taxes (Income Taxes Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Net Earnings (Loss) Before Income Tax | $ 3,560 | $ 1,239 | $ (5,730) |
United States Federal Statutory Rate | 21% | 21% | 21% |
Expected Income Tax Expense (Recovery) | $ 748 | $ 260 | $ (1,203) |
State income tax | 26 | 43 | (147) |
Income tax related to foreign operations | 60 | 9 | (2) |
Effect of legislative changes | 0 | 0 | 2 |
Non-taxable capital (gains) losses | 0 | 0 | 3 |
Realized capital loss resulting from U.S. Domestication | 0 | 0 | (1,238) |
Non-taxable items | 246 | 0 | 0 |
Amounts in respect of prior periods | 101 | 60 | 36 |
Change in valuation allowance | (1,299) | (558) | 2,900 |
Other | 41 | 9 | 16 |
Income Tax Expense (Recovery) | $ (77) | $ (177) | $ 367 |
Effective Tax Rate | (2.20%) | (14.30%) | (6.40%) |
Income Taxes (Components of Net
Income Taxes (Components of Net Deferred Income Tax Asset (Liability)) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Deferred Income Tax Assets, Property, plant and equipment | $ 0 | $ 36 |
Deferred Income Tax Assets, Risk management | 0 | 171 |
Deferred Income Tax Assets, Compensation plans | 72 | 67 |
Deferred Income Tax Assets, Interest and other deferred deductions | 0 | 19 |
Deferred Income Tax Assets, Net operating and net capital losses carried forward | 2,290 | 2,727 |
Deferred Income Tax Assets, Foreign tax credits | 0 | 119 |
Deferred Income Tax Assets, Other | 18 | 7 |
Deferred Income Tax Assets, Valuation allowance | (1,326) | (2,733) |
Deferred Income Tax Liabilities, Property, plant and equipment | (676) | (381) |
Deferred Income Tax Liabilities, Risk management | (10) | 0 |
Deferred Income Tax Liabilities, Deferred Income | (248) | 0 |
Deferred Income Tax Liabilities, Other | (33) | (36) |
Net Deferred Income Tax (Liability) | $ (4) | |
Net Deferred Income Tax Asset | $ 87 |
Income Taxes (Net Deferred Inco
Income Taxes (Net Deferred Income Tax Asset (Liability) by Jurisdiction) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Income Taxes Assets | $ 271 | $ 0 |
Deferred Income Tax Liabilities | (184) | (4) |
Net Deferred Income Tax Asset | 87 | |
Net Deferred Income Tax (Liability) | (4) | |
United States [Member] | ||
Deferred Income Taxes Assets | 271 | 0 |
Deferred Income Tax Liabilities | 0 | (4) |
Canada [Member] | ||
Deferred Income Taxes Assets | 0 | 0 |
Deferred Income Tax Liabilities | $ (184) | $ 0 |
Income Taxes (Schedule of Tax B
Income Taxes (Schedule of Tax Basis, Loss Carryforwards and Business Tax Credits Available) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) | ||
Canada [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax Basis | $ 938 | |
Net operating losses (Federal) | $ 381 | |
Canada [Member] | Minimum [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Net Operating losses (Federal), Expiration Dates | Dec. 31, 2039 | |
Canada [Member] | Maximum [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Net Operating losses (Federal), Expiration Dates | Dec. 31, 2041 | |
Canada [Member] | Capital Loss Carryforward [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Other Tax Carryforward, Gross Amount | $ 5,350 | |
United States [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax Basis | 5,228 | |
Net operating losses (Federal) | $ 4,034 | [1] |
United States [Member] | Minimum [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Net Operating losses (Federal), Expiration Dates | Dec. 31, 2023 | [1] |
United States [Member] | Maximum [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Net Operating losses (Federal), Expiration Dates | Dec. 31, 2038 | [1] |
United States [Member] | Business Credits [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Other Tax Carryforward, Gross Amount | $ 10 | |
United States [Member] | Business Credits [Member] | Minimum [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Other Tax Carryforward, Expiration Dates | Dec. 31, 2023 | |
United States [Member] | Business Credits [Member] | Maximum [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Other Tax Carryforward, Expiration Dates | Dec. 31, 2041 | |
[1]Includes net operating losses of $1,211 million which have an indefinite expiration date. |
Income Taxes (Schedule of Tax_2
Income Taxes (Schedule of Tax Basis, Loss Carryforwards and Business Tax Credits Available) (Parenthetical) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
United States [Member] | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards indefinite expiration period | $ 1,211 |
Income Taxes (Changes in Balanc
Income Taxes (Changes in Balance of Unrecognized Tax Benefits Excluding Interest) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized Tax Benefits, Beginning Balance | $ (10) | $ (232) |
Additions for tax positions taken in the current year | 0 | (2) |
Additions for tax positions of prior years | 0 | (29) |
Settlements | 0 | 257 |
Foreign currency translation | 1 | (4) |
Unrecognized Tax Benefits, Ending Balance | $ (9) | $ (10) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefit Reflected In Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Contingency [Line Items] | |||
Unrecognized Tax Benefits | $ (9) | $ (10) | $ (232) |
Income Tax Receivable [Member] | |||
Income Tax Contingency [Line Items] | |||
Unrecognized Tax Benefits | (1) | (1) | |
Deferred Income Tax Liability [Member] | |||
Income Tax Contingency [Line Items] | |||
Unrecognized Tax Benefits | $ (8) | $ (9) |
Income Taxes (Summary Of Tax Ye
Income Taxes (Summary Of Tax Years By Jurisdiction) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum [Member] | Internal Revenue Service (IRS) [Member] | Federal [Member] | |
Income Tax Examination [Line Items] | |
Taxation Year | 2018 |
Minimum [Member] | Internal Revenue Service (IRS) [Member] | Provincial/State [Member] | |
Income Tax Examination [Line Items] | |
Taxation Year | 2017 |
Minimum [Member] | Canada Revenue Agency [Member] | Foreign [Member] | |
Income Tax Examination [Line Items] | |
Taxation Year | 2015 |
Minimum [Member] | Canada Revenue Agency [Member] | Provincial/State [Member] | |
Income Tax Examination [Line Items] | |
Taxation Year | 2015 |
Maximum [Member] | Internal Revenue Service (IRS) [Member] | Federal [Member] | |
Income Tax Examination [Line Items] | |
Taxation Year | 2022 |
Maximum [Member] | Internal Revenue Service (IRS) [Member] | Provincial/State [Member] | |
Income Tax Examination [Line Items] | |
Taxation Year | 2022 |
Maximum [Member] | Canada Revenue Agency [Member] | Foreign [Member] | |
Income Tax Examination [Line Items] | |
Taxation Year | 2022 |
Maximum [Member] | Canada Revenue Agency [Member] | Provincial/State [Member] | |
Income Tax Examination [Line Items] | |
Taxation Year | 2022 |
Accounts Receivable and Accru_3
Accounts Receivable and Accrued Revenues (Schedule of Accounts Receivable and Accrued Revenues) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Trade Receivable and Accrued Revenues | $ 1,490 | $ 1,204 |
Prepaids | 38 | 28 |
Deposits and Other | 70 | 67 |
Accounts Receivable and Accrued Revenues, Gross | 1,598 | 1,299 |
Expected Credit Loss Allowance | (4) | (5) |
Accounts Receivable and Accrued Revenues | 1,594 | 1,294 |
Production accruals receivable [Member] | ||
Trade Receivable and Accrued Revenues | 881 | 832 |
Market optimization receivable [Member] | ||
Trade Receivable and Accrued Revenues | 376 | 238 |
Joint interest and trade receivables [Member] | ||
Trade Receivable and Accrued Revenues | 200 | 102 |
Derivative settlements receivable [Member] | ||
Trade Receivable and Accrued Revenues | 7 | 9 |
Corporate and other receivable [Member] | ||
Trade Receivable and Accrued Revenues | $ 26 | $ 23 |
Accounts Receivable and Accru_4
Accounts Receivable and Accrued Revenues (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Allowance for credit loss | $ 4 | $ 5 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Schedule of Net Acquisitions & (Divestitures)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Acquisitions and Divestitures [Line Items] | |||
Acquisitions | $ 286 | $ 11 | $ 19 |
Divestitures | (228) | (1,025) | (89) |
Net Acquisitions and Divestitures | 58 | (1,014) | (70) |
Operating Segments [Member] | USA Operations [Member] | |||
Acquisitions and Divestitures [Line Items] | |||
Acquisitions | 277 | 11 | 19 |
Divestitures | (230) | (772) | (78) |
Operating Segments [Member] | Canadian Operations [Member] | |||
Acquisitions and Divestitures [Line Items] | |||
Acquisitions | 9 | 0 | 0 |
Divestitures | $ 2 | $ (253) | $ (11) |
Acquisitions and Divestitures_3
Acquisitions and Divestitures (Narrative) (Details) $ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) $ / bbl | Dec. 31, 2021 USD ($) $ / bbl | Dec. 31, 2020 USD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2021 CAD ($) | |
Acquisitions and Divestitures [Line Items] | |||||
Proceeds from divestitures | $ 228 | $ 1,025 | $ 89 | ||
Duvernay Assets [Member] | |||||
Acquisitions and Divestitures [Line Items] | |||||
Contingent consideration receivable | $ 10 | $ 5 | |||
Duvernay Assets [Member] | WTI [Member] | Minimum [Member] | |||||
Acquisitions and Divestitures [Line Items] | |||||
Reference Price | $ / bbl | 62 | 56 | |||
USA Operations [Member] | Operating Segments [Member] | |||||
Acquisitions and Divestitures [Line Items] | |||||
Proceeds from divestitures | $ 230 | $ 772 | 78 | ||
USA Operations [Member] | Operating Segments [Member] | Uinta and Bakken Assets [Member] | |||||
Acquisitions and Divestitures [Line Items] | |||||
Proceeds from divestitures | 215 | ||||
USA Operations [Member] | Operating Segments [Member] | Eagle Ford Assets [Member] | |||||
Acquisitions and Divestitures [Line Items] | |||||
Proceeds from divestitures | 764 | ||||
Canadian Operations [Member] | Operating Segments [Member] | |||||
Acquisitions and Divestitures [Line Items] | |||||
Proceeds from divestitures | $ (2) | 253 | $ 11 | ||
Canadian Operations [Member] | Operating Segments [Member] | Duvernay Assets [Member] | |||||
Acquisitions and Divestitures [Line Items] | |||||
Proceeds from divestitures | $ 238 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Schedule Of Property, Plant And Equipment) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | $ 59,108 | $ 58,322 |
Less: Accumulated depreciation, depletion and amortization | (49,640) | (49,561) |
Property, plant and equipment, net | 9,468 | 8,761 |
Operating Segments [Member] | USA Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 42,539 | 41,041 |
Less: Accumulated depreciation, depletion and amortization | (34,280) | (33,418) |
Property, plant and equipment, net | 8,259 | 7,623 |
Operating Segments [Member] | Canadian Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 15,731 | 16,401 |
Less: Accumulated depreciation, depletion and amortization | (14,687) | (15,450) |
Property, plant and equipment, net | 1,044 | 951 |
Operating Segments [Member] | Market Optimization [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | 0 | 0 |
Corporate & Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | 165 | 187 |
Proved Properties [Member] | Operating Segments [Member] | USA Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 41,382 | 39,145 |
Less: Accumulated depreciation, depletion and amortization | (34,280) | (33,418) |
Property, plant and equipment, net | 7,102 | 5,727 |
Proved Properties [Member] | Operating Segments [Member] | Canadian Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 15,672 | 16,330 |
Less: Accumulated depreciation, depletion and amortization | (14,687) | (15,450) |
Property, plant and equipment, net | 985 | 880 |
Unproved Properties [Member] | Operating Segments [Member] | USA Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 1,127 | 1,884 |
Less: Accumulated depreciation, depletion and amortization | 0 | 0 |
Property, plant and equipment, net | 1,127 | 1,884 |
Unproved Properties [Member] | Operating Segments [Member] | Canadian Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 45 | 60 |
Less: Accumulated depreciation, depletion and amortization | 0 | 0 |
Property, plant and equipment, net | 45 | 60 |
Other Capitalized Property Plant and Equipment [Member] | Operating Segments [Member] | USA Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 30 | 12 |
Less: Accumulated depreciation, depletion and amortization | 0 | 0 |
Property, plant and equipment, net | 30 | 12 |
Other Capitalized Property Plant and Equipment [Member] | Operating Segments [Member] | Canadian Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 14 | 11 |
Less: Accumulated depreciation, depletion and amortization | 0 | 0 |
Property, plant and equipment, net | 14 | 11 |
Other Capitalized Property Plant and Equipment [Member] | Operating Segments [Member] | Market Optimization [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 7 | 7 |
Less: Accumulated depreciation, depletion and amortization | (7) | (7) |
Property, plant and equipment, net | 0 | 0 |
Other Capitalized Property Plant and Equipment [Member] | Corporate & Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 831 | 873 |
Less: Accumulated depreciation, depletion and amortization | (666) | (686) |
Property, plant and equipment, net | $ 165 | $ 187 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Internal Costs Capitalized | $ 178,000,000 | $ 172,000,000 | |
Impairments | 0 | 0 | $ 5,580,000,000 |
Operating Segments [Member] | USA Operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairments | 0 | 0 | |
Operating Segments [Member] | Canadian Operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairments | $ 0 | $ 0 | $ 0 |
Other Assets (Schedule of Other
Other Assets (Schedule of Other Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other Assets [Abstract] | ||
Operating Lease ROU Assets | $ 870 | $ 929 |
Long-Term Investments | 21 | 27 |
Long-Term Receivables | 58 | 64 |
Deferred Charges | 44 | 42 |
Other | 11 | 17 |
Other Assets | $ 1,004 | $ 1,079 |
Goodwill (Schedule of Goodwill)
Goodwill (Schedule of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 2,628 | |
Goodwill, Ending Balance | 2,584 | $ 2,628 |
Canada [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 690 | 687 |
Foreign currency translation adjustment | (44) | 3 |
Goodwill, Ending Balance | 646 | 690 |
United States [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 1,938 | 1,938 |
Goodwill, Ending Balance | $ 1,938 | $ 1,938 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Addition of goodwill | $ 0 | $ 0 |
Goodwill allocated to divestiture | 0 | 0 |
Goodwill Impairment | 0 | 0 |
Historical Cumulative Goodwill Impairments | $ 0 | $ 0 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Schedule of Accounts Payable and Accrued Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Payables And Accruals [Abstract] | ||
Trade Payables | $ 436 | $ 328 |
Capital Accruals | 196 | 161 |
Royalty and Production Accruals | 718 | 643 |
Market Optimization Accruals | 314 | 266 |
Outstanding Disbursements | 74 | 32 |
Payroll & Other Accruals | 211 | 221 |
Interest Payable | 65 | 108 |
Derivative Settlements | 17 | 90 |
Current Portion of Long-Term Incentive Costs | 139 | 78 |
Current Portion of Finance Lease Obligations | 6 | 6 |
Current Portion of Asset Retirement Obligation | 45 | 46 |
Accounts Payable and Accrued Liabilities | $ 2,221 | $ 1,979 |
Leases (Summary of Operating An
Leases (Summary of Operating And Finance Lease Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating Lease ROU Assets, in Other Assets | $ 870 | $ 929 | |
Operating Lease Right Of Use Asset Statement Of Financial Position Extensible List | Other Assets | Other Assets | |
Finance Lease ROU Assets, in Other Property Plant and Equipment | $ 22 | $ 27 | |
Finance Lease Right Of Use Asset Statement Of Financial Position Extensible List | Property, Plant and Equipment, Cost | Property, Plant and Equipment, Cost | |
Operating Lease Liabilities, Current | $ 76 | $ 62 | |
Operating Lease Liabilities, Long-term | 814 | 889 | |
Finance Lease Liabilities, Current, in accounts payable and accrued liabilities | $ 6 | $ 6 | |
Finance Lease, Liability, Current, Statement Of Financial Position [Extensible List] | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities | |
Finance Lease Liabilities, Long-term, in other liabilities and provisions | $ 27 | $ 33 | |
Finance Lease, Liability, Noncurrent,Statement Of Financial Position [Extensible List] | Other Liabilities and Provisions | Other Liabilities and Provisions | |
Weighted Average Discount Rate | |||
Operating leases | 5.39% | 5.44% | |
Finance leases | 6.11% | 6.11% | |
Weighted Average Remaining Lease Term | |||
Operating leases | 14 years | 15 years 3 months 18 days | |
Finance leases | 4 years 6 months | 5 years 6 months | |
Lease Costs: | |||
Operating Lease Costs, Excluding Short-Term Leases | $ 140 | $ 145 | |
Finance Lease Costs: | |||
Amortization of ROU assets | 5 | 5 | |
Interest on lease liabilities | 2 | 3 | $ 9 |
Total Finance Lease Costs | 7 | 8 | |
Short-Term Lease Costs | 189 | 206 | |
Variable Lease Costs | 14 | 12 | |
Sublease Income: | |||
Operating lease income | 48 | 55 | |
Variable lease income | 20 | 18 | |
Cash Paid for Amounts Included in the Measurement of Lease Liabilities: | |||
Operating cash outflows from operating leases | 176 | 197 | |
Investing cash outflows from operating leases | 151 | 147 | |
Operating cash outflows from finance leases | 2 | 3 | |
Financing cash outflows from finance leases | 6 | 82 | |
Supplemental Non-Cash Information: | |||
New ROU operating lease assets and liabilities | $ 75 | $ 23 |
Leases (Summary of Operating _2
Leases (Summary of Operating And Finance Lease Costs) (Parenthetical) (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Maximum [Member] | ||
Lessee Lease Description [Line Items] | ||
Lessee, operating and finance lease, option to extend lease, term | 10 years | 10 years |
Leases (Schedule of Operating L
Leases (Schedule of Operating Lease Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Lease Expense | ||
Total Operating Lease Expense | $ 174 | $ 204 |
Transportation and Processing [Member] | ||
Operating Lease Expense | ||
Total Operating Lease Expense | 3 | 3 |
Operating [Member] | ||
Operating Lease Expense | ||
Total Operating Lease Expense | 70 | 81 |
Administrative [Member] | ||
Operating Lease Expense | ||
Total Operating Lease Expense | $ 101 | $ 120 |
Leases (Schedule of Future Leas
Leases (Schedule of Future Lease Payments and Lease Liabilities Related to Operating and Finance Leases) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Operating Leases | |
Expected Future Operating Lease Payments 2023 | $ 123 |
Expected Future Operating Lease Payments 2024 | 104 |
Expected Future Operating Lease Payments 2025 | 89 |
Expected Future Operating Lease Payments 2026 | 79 |
Expected Future Operating Lease Payments 2027 | 76 |
Expected Future Operating Lease Payments thereafter | 820 |
Expected Future Operating Lease Payments,Total | 1,291 |
Less: Discounting | 401 |
Present Value of Future Operating Lease Payments Total | 890 |
Sublease Income (undiscounted) 2023 | (41) |
Sublease Income (undiscounted) 2024 | (43) |
Sublease Income (undiscounted) 2025 | (43) |
Sublease Income (undiscounted) 2026 | (43) |
Sublease Income (undiscounted) 2027 | (44) |
Sublease Income (undiscounted) Thereafter | (414) |
Sublease Income (undiscounted) Total | (628) |
Finance Leases | |
Expected Future Finance Lease Payments, 2023 | 8 |
Expected Future Finance Lease Payments, 2024 | 8 |
Expected Future Finance Lease Payments, 2025 | 9 |
Expected Future Finance Lease Payments, 2026 | 9 |
Expected Future Finance Lease Payments, 2027 | 4 |
Expected Future Finance Lease Payments, Thereafter | 0 |
Expected Future Finance Lease Payments, Total | 38 |
Less: Discounting | 5 |
Present Value of Future Finance Lease Payments Total | 33 |
Sublease Income (undiscounted) 2023 | (8) |
Sublease Income (undiscounted) 2024 | (7) |
Sublease Income (undiscounted) 2025 | (7) |
Sublease Income (undiscounted) 2026 | (7) |
Sublease Income (undiscounted) 2027 | (3) |
Sublease Income (undiscounted) Thereafter | 0 |
Sublease Income (undiscounted) Total | $ (32) |
Long-Term Debt (Schedule Of Lon
Long-Term Debt (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | 19 Months Ended | |
Jun. 10, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Revolving credit and term loan borrowings | $ 393 | $ 0 | |
Total Principal | 3,569 | 4,741 | |
Increase in Value of Debt Acquired | 27 | 77 | |
Unamortized Debt Discounts and Issuance Costs | (26) | (32) | |
Total Long-Term Debt | 3,570 | 4,786 | |
Current Portion | 393 | 0 | |
Long-Term Debt | 3,177 | 4,786 | |
5.625% Unsecured Notes [Member] | Unsecured Notes, Due July 1, 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 0 | $ 1,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | 5.625% | 5.625% |
Debt Instrument, Maturity Date | Jul. 01, 2024 | Jul. 01, 2024 | Jul. 01, 2024 |
5.375% Unsecured Notes [Member] | Unsecured Notes, Due Jan 1, 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 459 | $ 688 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | 5.375% | |
Debt Instrument, Maturity Date | Jan. 01, 2026 | Jan. 01, 2026 | |
8.125% Unsecured Notes [Member] | Unsecured Notes, Due September 15, 2030 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 300 | $ 300 | |
Debt Instrument, Interest Rate, Stated Percentage | 8.125% | 8.125% | |
Debt Instrument, Maturity Date | Sep. 15, 2030 | Sep. 15, 2030 | |
7.20% Unsecured Notes [Member] | Unsecured Notes, Due November 1, 2031 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 350 | $ 350 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.20% | 7.20% | |
Debt Instrument, Maturity Date | Nov. 01, 2031 | Nov. 01, 2031 | |
7.375% Unsecured Notes [Member] | Unsecured Notes, Due November 1, 2031 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 500 | $ 500 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.375% | 7.375% | |
Debt Instrument, Maturity Date | Nov. 01, 2031 | Nov. 01, 2031 | |
6.50% Unsecured Notes [Member] | Unsecured Notes, Due August 15, 2034 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 599 | $ 750 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 6.50% | |
Debt Instrument, Maturity Date | Aug. 15, 2034 | Aug. 15, 2034 | |
6.50% Unsecured Notes [Member] | Unsecured Notes, Due February 1, 2038 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 430 | $ 488 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 6.50% | |
Debt Instrument, Maturity Date | Feb. 01, 2038 | Feb. 01, 2038 | |
6.625% Unsecured Notes [Member] | Unsecured Notes, Due August 15, 2037 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 390 | $ 462 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | 6.625% | |
Debt Instrument, Maturity Date | Aug. 15, 2037 | Aug. 15, 2037 | |
5.15% Unsecured Notes [Member] | Unsecured Notes, Due November 15, 2041 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 148 | $ 203 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.15% | 5.15% | |
Debt Instrument, Maturity Date | Nov. 15, 2041 | Nov. 15, 2041 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | 12 Months Ended | 19 Months Ended | |||||
Jun. 10, 2022 | Aug. 16, 2021 | Jun. 18, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 0 | ||||||
Long term debt current | 393,000,000 | $ 0 | $ 0 | ||||
Standby fees | 8,000,000 | 10,000,000 | $ 8,000,000 | ||||
Debt instrument repurchased face amount | 565,000,000 | ||||||
Interest expense on debt | 297,000,000 | 323,000,000 | 350,000,000 | ||||
Aggregate cash payment for repurchased debt | $ 1,634,000,000 | 1,137,000,000 | 272,000,000 | ||||
Debt instrument repurchased face amount | 302,000,000 | ||||||
Recognized net gain on debt | $ 30,000,000 | ||||||
Weighted average remaining life of outstanding debt | 6 years | ||||||
Issuance costs capitalized | $ 6,000,000 | 0 | |||||
Current portion of long-term debt | 393,000,000 | 0 | 0 | ||||
Long-term debt carrying value | 3,570,000,000 | 4,786,000,000 | 4,786,000,000 | ||||
Long-term debt, fair value | 3,648,000,000 | $ 5,804,000,000 | $ 5,804,000,000 | ||||
Premiums Paid to Repurchase Certain Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest expense on debt | 22,000,000 | ||||||
5.375% Unsecured Notes [Member] | Unsecured Notes, Due Jan 1, 2026 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument repurchased face amount | $ 229,000,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | 5.375% | 5.375% | ||||
Debt instrument maturity date | Jan. 01, 2026 | Jan. 01, 2026 | |||||
6.50% Unsecured Notes [Member] | Unsecured Notes, Due August 15, 2034 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument repurchased face amount | $ 151,000,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 6.50% | 6.50% | ||||
Debt instrument maturity date | Aug. 15, 2034 | Aug. 15, 2034 | |||||
6.50% Unsecured Notes [Member] | Unsecured Notes, Due February 1, 2038 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument repurchased face amount | $ 58,000,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 6.50% | 6.50% | ||||
Debt instrument maturity date | Feb. 01, 2038 | Feb. 01, 2038 | |||||
6.625% Unsecured Notes [Member] | Unsecured Notes, Due August 15, 2037 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument repurchased face amount | $ 72,000,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | 6.625% | 6.625% | ||||
Debt instrument maturity date | Aug. 15, 2037 | Aug. 15, 2037 | |||||
5.15% Unsecured Notes [Member] | Unsecured Notes, Due November 15, 2041 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument repurchased face amount | $ 55,000,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.15% | 5.15% | 5.15% | ||||
Debt instrument maturity date | Nov. 15, 2041 | Nov. 15, 2041 | |||||
5.625% Unsecured Notes [Member] | Unsecured Notes, Due July 1, 2024 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument repurchased face amount | $ 1,000,000,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | 5.625% | 5.625% | 5.625% | |||
Interest expense on debt | $ 47,000,000 | ||||||
Debt instrument maturity date | Jul. 01, 2024 | Jul. 01, 2024 | Jul. 01, 2024 | ||||
Aggregate cash payment for repurchased debt | $ 1,072,000,000 | ||||||
Accrued and unpaid interest | $ 25,000,000 | ||||||
5.75% Unsecured Notes [Member] | Unsecured Notes, Due January 30, 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | ||||||
Interest expense on debt | $ 19,000,000 | ||||||
Debt instrument maturity date | Jan. 30, 2022 | ||||||
Aggregate cash payment for repurchased debt | $ 632,000,000 | ||||||
Accrued and unpaid interest | 13,000,000 | ||||||
Debt instrument repurchased face amount | $ 600,000,000 | ||||||
3.90% Unsecured Notes [Member] | Unsecured Notes, Due November 15, 2021 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.90% | ||||||
Debt instrument maturity date | Nov. 15, 2021 | ||||||
Aggregate cash payment for repurchased debt | $ 523,000,000 | ||||||
Accrued and unpaid interest | 5,000,000 | ||||||
Debt instrument repurchased face amount | $ 518,000,000 | ||||||
Commercial Paper [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt current | $ 393,000,000 | ||||||
Weighted average interest rate | 5.24% | ||||||
Current portion of long-term debt | $ 393,000,000 | ||||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 3,500,000,000 | ||||||
Expiration date - line of credit | Jul. 31, 2026 | ||||||
Maximum number of extensions per year | 1 | ||||||
Maximum period of years line of credit can extended | 5 years | ||||||
Additional period in days added to extension | 90 days | ||||||
Equity adjustment, cumulative historical ceiling test impairment | $ 7,700,000,000 | ||||||
Revolving Credit Facility [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Financing debt-to-adjusted capitalization, percentage | 0.60 | ||||||
Revolving Credit Facility [Member] | Parent Company [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 2,200,000,000 | ||||||
Revolving Credit Facility [Member] | Subsidiary Issuer [Member] | Canada [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 1,300,000,000 |
Long-Term Debt (Schedule Of Man
Long-Term Debt (Schedule Of Mandatory Debt Payments) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | ||
Debt Maturity, Mandatory Repayment, Next Twelve Months | $ 393 | |
Debt Maturity, Mandatory Repayment, In Two Years | 0 | |
Debt Maturity, Mandatory Repayment, In Three Years | 0 | |
Debt Maturity, Mandatory Repayment, In Four Years | 459 | |
Debt Maturity, Mandatory Repayment, In Five Years | 0 | |
Debt Maturity, Mandatory Repayment, After Five Years | 2,717 | |
Total Principal | 3,569 | $ 4,741 |
Interest Payments on Remaining Long-term Debt, Next Twelve Months | 232 | |
Interest Payments on Remaining Long-term Debt in Year two | 211 | |
Interest Payments on Remaining Long-term Debt in Year Three | 212 | |
Interest Payments on Remaining Long-term Debt in Year Four | 199 | |
Interest Payments on Remaining Long-term Debt in Year Five | 187 | |
Interest Payments on Remaining Long-term Debt, After Five Years | 1,253 | |
Total Interest Payments on Remaining Long-term Debt | $ 2,294 |
Other Liabilities and Provisi_3
Other Liabilities and Provisions (Schedule of Other Liabilities and Provisions) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other Liabilities And Provisions [Line Items] | ||
Finance Lease Obligations | $ 27 | $ 33 |
Pensions and Other Post-Employment Benefits (See Note 22) | 73 | 104 |
Long-Term Incentives | 14 | 36 |
Other Derivative Contracts, Liabilities | 5 | 6 |
Other | 12 | 12 |
Other Liabilities and Provisions | 131 | 190 |
Other Liabilities and Provisions [Member] | ||
Other Liabilities And Provisions [Line Items] | ||
Other Derivative Contracts, Liabilities | $ 5 | $ 5 |
Asset Retirement Obligation (Sc
Asset Retirement Obligation (Schedule of Change In Asset Retirement Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |||
Asset Retirement Obligation, Beginning of Year | $ 385 | $ 440 | |
Liabilities Incurred and Acquired | 4 | 8 | |
Liabilities Settled and Divested | (128) | (91) | |
Change in Estimated Future Cash Outflows | 58 | 5 | $ (49) |
Accretion of asset retirement obligation | 18 | 22 | 29 |
Foreign Currency Translation | (11) | 1 | |
Asset Retirement Obligation, End of Year | $ 326 | $ 385 | $ 440 |
Asset Retirement Obligation (_2
Asset Retirement Obligation (Schedule of Asset Retirement Obligation) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Asset Retirement Obligation Disclosure [Abstract] | |||
Current Portion (See Note 12) | $ 45 | $ 46 | |
Long-Term Portion | 281 | 339 | |
Asset Retirement Obligation, Total | $ 326 | $ 385 | $ 440 |
Share Capital (Narrative) (Deta
Share Capital (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 27, 2023 | Jan. 24, 2020 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 28, 2022 | |
Class Of Stock [Line Items] | |||||||||||||||||||
Common stock, shares authorized | 750,000,000 | 750,000,000 | |||||||||||||||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||
Preferred stock, shares authorized | 25,000,000 | 25,000,000 | |||||||||||||||||
Preferred stock, par value | $ 0.01 | $ 0.01 | |||||||||||||||||
Preferred stock, shares outstanding | 0 | 0 | |||||||||||||||||
Reclassification of share capital due to reorganization | $ 0 | ||||||||||||||||||
Common shares purchased, shares | 14,700,000 | 3,100,000 | 0 | ||||||||||||||||
Common shares purchased, value | $ 0 | $ 0 | $ 0 | ||||||||||||||||
Dividends on common shares | $ 239,000 | $ 122,000 | $ 97,000 | ||||||||||||||||
Common stock, dividends, per share, paid | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.20 | $ 0.14 | $ 0.14 | $ 0.09375 | $ 0.09375 | $ 0.09375 | $ 0.09375 | $ 0.09375 | $ 0.09375 | $ 0.95 | $ 0.4675 | $ 0.375 | ||||
Common stock, dividends, per share, declared | $ 0.95 | $ 0.4675 | $ 0.375 | ||||||||||||||||
Common stock authorized reserved for issuance | 13,400,000 | 6,000,000 | 13,400,000 | ||||||||||||||||
Common stock remained available for issuance | 8,500,000 | 8,500,000 | |||||||||||||||||
PSU and RSU [Member] | |||||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||||
Share based compensation arrangement by share based payment award equity instruments other than options grants vested In period | 2,400,000 | 1,300,000 | |||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||||
Dividends payable, date declared | Feb. 27, 2023 | ||||||||||||||||||
Common stock, dividends, per share, declared | $ 0.25 | ||||||||||||||||||
Dividends payable, date to be paid | Mar. 31, 2023 | ||||||||||||||||||
Dividends payable, date of record | Mar. 15, 2023 | ||||||||||||||||||
Normal Course Issuer Bid [Member] | |||||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||||
Common shares purchased, shares | 3,500,000 | 11,200,000 | 3,100,000 | ||||||||||||||||
Common shares purchased, value | $ 719,000 | $ 111,000 | |||||||||||||||||
Normal Course Issuer Bid [Member] | Maximum [Member] | |||||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||||
Stock repurchase program, number of shares authorized to be repurchased | 24,800,000 | ||||||||||||||||||
Share Capital [Member] | |||||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||||
Reclassification of share capital due to reorganization | $ 7,058,000 | 0 | 0 | $ 7,058,000 | |||||||||||||||
Dividends on common shares | 0 | 0 | 0 | ||||||||||||||||
Share Capital [Member] | Normal Course Issuer Bid [Member] | |||||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||||
Common shares purchased, value | 147 | 28 | |||||||||||||||||
Paid In Surplus [Member] | |||||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||||
Reclassification of share capital due to reorganization | (7,058,000) | ||||||||||||||||||
Dividends on common shares | 0 | 0 | $ 0 | ||||||||||||||||
Paid In Surplus [Member] | Normal Course Issuer Bid [Member] | |||||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||||
Common shares purchased, value | $ 719,000 | $ 111,000 |
Share Capital (Schedule of Comm
Share Capital (Schedule of Common Stock Issued and Outstanding) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Jan. 24, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class Of Stock [Line Items] | ||||
Shares of Common Stock Outstanding, Beginning of Year | 258 | 259.8 | 259.8 | |
Shares of Common Stock Purchased | (14.7) | (3.1) | 0 | |
Shares of Common Stock Issued | 2.4 | 1.3 | 0 | |
Shares of Common Stock Outstanding, End of Year | 245.7 | 258 | 259.8 | |
Shares of Common Stock Outstanding, Beginning of Year | $ 3 | $ 3 | $ 7,061 | |
Shares of Common Stock Purchased | 0 | 0 | 0 | |
Shares of Common Stock Issued | 0 | 0 | 0 | |
Reclassification of Share Capital due to the Reorganization (See Note 1) | 0 | |||
Shares of Common Stock Outstanding, End of Year | 3 | 3 | 3 | |
Share Capital [Member] | ||||
Class Of Stock [Line Items] | ||||
Reclassification of Share Capital due to the Reorganization (See Note 1) | $ (7,058) | $ 0 | $ 0 | $ (7,058) |
Share Capital (Earnings Per Com
Share Capital (Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class Of Stock Disclosures [Abstract] | |||
Net Earnings (Loss) | $ 3,637 | $ 1,416 | $ (6,097) |
Weighted average shares of common stock outstanding - Basic | 253.6 | 260.4 | 259.8 |
Effect of dilutive securities | 4.8 | 6 | 0 |
Weighted Average Shares of Common Stock Outstanding - Diluted | 258.4 | 266.4 | 259.8 |
Net Earnings (Loss) per Share of Common Stock Basic | $ 14.34 | $ 5.44 | $ (23.47) |
Net Earnings (Loss) per Share of Common Stock Diluted | $ 14.08 | $ 5.32 | $ (23.47) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |||
Balance, Beginning of Year, Foreign Currency Translation Adjustment | $ 1,044 | $ 1,042 | $ 1,004 |
Change in Foreign Currency Translation Adjustment | (107) | 2 | 38 |
Balance, End of Year, Foreign Currency Translation Adjustment | 937 | 1,044 | 1,042 |
Pension and Other Post-Employment Benefit Plans | |||
Balance, Beginning of Year | 48 | 34 | 42 |
Other Comprehensive Income Before Reclassifications: | |||
Net actuarial gains and (losses) | 13 | 14 | (10) |
Income taxes | (3) | (4) | 2 |
Net prior service costs from plan amendment | 0 | 11 | 0 |
Income taxes | 0 | (2) | 0 |
Amounts Reclassified from Other Comprehensive Income: | |||
Reclassification of net actuarial (gains) and losses to net earnings | (6) | (8) | (9) |
Income taxes | 2 | 2 | 2 |
Reclassification of net prior service costs to net earnings | 0 | 1 | 2 |
Income taxes | 0 | 0 | 0 |
Curtailment in net defined periodic benefit cost | 0 | 0 | 5 |
Income taxes | 0 | 0 | (1) |
Settlement in net defined periodic benefit cost | 0 | 0 | 2 |
Income taxes | 0 | 0 | (1) |
Balance, End of Year | 54 | 48 | 34 |
Total Accumulated Other Comprehensive Income | $ 991 | $ 1,092 | $ 1,076 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) MMcf | Dec. 31, 2021 USD ($) | |
Variable Interest Entity [Line Items] | ||
Accounts payable and accrued liabilities, current | $ 2,221 | $ 1,979 |
Veresen Midstream Limited Partnership [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, financial support, term of assessment | 8 years | |
Variable interest entity, reporting entity involvement, maximum loss exposure, amount | $ 1,436 | |
Veresen Midstream Limited Partnership [Member] | Take or Pay Commitment [Member] | ||
Variable Interest Entity [Line Items] | ||
Accounts payable and accrued liabilities, current | $ 0.4 | |
Veresen Midstream Limited Partnership [Member] | Natural gas gathering and compression [Member] | ||
Variable Interest Entity [Line Items] | ||
Contracted capacity volumes | MMcf | 1,160 | |
Veresen Midstream Limited Partnership [Member] | Natural gas processing [Member] | ||
Variable Interest Entity [Line Items] | ||
Contracted capacity volumes | MMcf | 923 | |
Veresen Midstream Limited Partnership [Member] | Minimum [Member] | ||
Variable Interest Entity [Line Items] | ||
Length of remaining terms, in years | 9 years | |
Veresen Midstream Limited Partnership [Member] | Maximum [Member] | ||
Variable Interest Entity [Line Items] | ||
Length of remaining terms, in years | 23 years | |
Length of renewal term, in years | 10 years |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Charges [Abstract] | ||||
Restructuring and Related Activities, Initiation Date | Jun. 01, 2020 | |||
Workforce reduction percentage | 25% | |||
Restructuring Charges | $ 0 | $ 14 | $ 90 |
Restructuring Charges (Restruct
Restructuring Charges (Restructuring Costs Expensed) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Charges [Abstract] | |||
Severance and Benefits | $ 0 | $ 14 | $ 88 |
Outplacement, Moving and Other Expenses | 0 | 0 | 2 |
Restructuring Expenses | $ 0 | $ 14 | $ 90 |
Restructuring Charges (Schedule
Restructuring Charges (Schedule of Change in Restructuring Accrual) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Charges [Abstract] | |||
Outstanding Restructuring Accrual, Beginning of Year | $ 3 | $ 14 | $ 8 |
Restructuring Expenses Incurred | 0 | 14 | 90 |
Restructuring Costs Paid | (3) | (25) | (84) |
Outstanding Restructuring Accrual, End of Year | $ 0 | $ 3 | $ 14 |
Compensation Plans (Amounts Rec
Compensation Plans (Amounts Recognized For Share-Based Payment Transactions) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation Costs of Transactions Classified as Cash-Settled | $ 152 | $ 118 | $ 42 |
Total Compensation Costs of Transactions Classified as Equity-Settled | 82 | 47 | 3 |
Less: Total Share-Based Compensation Costs Capitalized | (32) | (27) | (12) |
Total Share-Based Compensation Expense | 202 | 138 | 33 |
Operating Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Share-Based Compensation Expense | 38 | 31 | 10 |
Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Share-Based Compensation Expense | $ 164 | $ 107 | $ 23 |
Compensation Plans (Narrative)
Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Liability for cash-settled share-based payment transactions | $ 153 | $ 114 |
Liability for share-based payment recognized in accounts payable and accrued liabilities | 139 | 78 |
Liability for share-based payment recognized in other liabilities and provisions | $ 14 | 36 |
Stock Appreciation Rights (SARs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 7 years | |
Stock Appreciation Rights (SARs) [Member] | United States Of America Dollars [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, unvested award, unrecognized compensation costs | $ 0 | 0.2 |
Stock Appreciation Rights (SARs) [Member] | Share-Based Payment Arrangement, Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting rights percentage | 30% | |
Vesting period | 1 year | |
Stock Appreciation Rights (SARs) [Member] | Share-Based Payment Arrangement, Tranche Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting rights percentage | 30% | |
Vesting period | 2 years | |
Stock Appreciation Rights (SARs) [Member] | Share-based Compensation Award, Tranche Three [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Tandem Stock Appreciation Rights (TSARs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 7 years | |
Share-based compensation, unvested award, unrecognized compensation costs | $ 0 | 0.1 |
Tandem Stock Appreciation Rights (TSARs) [Member] | Share-Based Payment Arrangement, Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting rights percentage | 30% | |
Vesting period | 1 year | |
Tandem Stock Appreciation Rights (TSARs) [Member] | Share-Based Payment Arrangement, Tranche Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting rights percentage | 30% | |
Vesting period | 2 years | |
Tandem Stock Appreciation Rights (TSARs) [Member] | Share-based Compensation Award, Tranche Three [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Performance Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Share-based compensation, unvested award, unrecognized compensation costs | $ 43 | 42 |
Maximum multiplication of original performance stock units granted may be awarded | 2 | |
Award performance measurement period | 3 years | |
Share-based compensation, unvested award, unrecognized compensation costs expected to recognize over a weighted average period | 7 months 6 days | |
Deferred Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation arrangement by share based payment award redemption description | For both Directors and employees, DSUs can only be redeemed following departure from Ovintiv in accordance with the terms of the respective DSU Plan and must be redeemed prior to December 15th of the year following the departure from Ovintiv. | |
Deferred Share Units [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Conversion percentage of bonus awards into deferred share units | 25% | |
Deferred Share Units [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Conversion percentage of bonus awards into deferred share units | 50% | |
Restricted Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, unvested award, unrecognized compensation costs | $ 44 | $ 43 |
Share-based compensation, unvested award, unrecognized compensation costs expected to recognize over a weighted average period | 7 months 6 days | |
Restricted Share Units [Member] | Employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period | 3 years | |
Vesting rights | RSUs issued to employees vest over their three-year service period. | |
Restricted Share Units [Member] | Directors [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Settlement period | 3 years |
Compensation Plans (Schedule of
Compensation Plans (Schedule of Outstanding Stock Appreciation Rights) (Details) - Stock Appreciation Rights (SARs) [Member] - United States Of America Dollars [Member] - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, Beginning of Year | 1,150 | 660 |
Granted | 0 | 682 |
Exercised | (401) | (177) |
Forfeited | 0 | (15) |
Expired | (219) | 0 |
Outstanding, End of Year | 530 | 1,150 |
Vested and Exercisable, End of Year | 530 | 1,021 |
Expected to Vest | 0 | 129 |
Weighted Average Exercise Price, Beginning of Year | $ 38.89 | $ 38.03 |
Grants, Weighted Average Exercise Price | 0 | 35.11 |
Exercised, Weighted Average Exercise Price | 22.14 | 20.50 |
Forfeited, Weighted Average Exercise Price | 0 | 45.35 |
Expired, Weighted Average Exercise Price | 56.75 | 0 |
Weighted Average Exercise Price, End of Year | 44.17 | 38.89 |
Weighted Average Exercise Price, Vested and Exercisable | 44.17 | 39.54 |
Weighted Average Exercise Price, Expected to Vest | $ 0 | $ 33.77 |
Weighted Average Remaining Contractual Life, End of Year | 2 years 4 months 24 days | 2 years 2 months 12 days |
Weighted Average Remaining Contractual Life, Vested and Exercisable | 2 years 4 months 24 days | 1 year 10 months 24 days |
Weighted Average Remaining Contractual Life, Expected to Vest | 4 years 3 months 18 days |
Compensation Plans (Schedule _2
Compensation Plans (Schedule of Outstanding Stock Appreciation Rights) (Parenthetical) (Details) - Stock Appreciation Rights (SARs) [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Intrinsic value of options awards, exercised and cash settled | $ 11 | $ 2 |
Intrinsic value of options awards, outstanding | 14 | 15 |
Intrinsic value of options awards, vested and exercisable | $ 14 | 14 |
Intrinsic value of options awards expected to vest | $ 1 |
Compensation Plans (Schedule _3
Compensation Plans (Schedule of Weighted Average Assumptions Used to Fair Value Share Units) (Details) | 12 Months Ended | |||||
Dec. 31, 2022 $ / shares | Dec. 31, 2021 $ / shares | Dec. 31, 2020 $ / shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 $ / shares | Dec. 31, 2020 $ / shares | |
United States Of America Dollars [Member] | Stock Appreciation Rights (SARs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair Value Assumptions, Risk Free Interest Rate | 4.02% | 0.94% | 0.20% | |||
Fair Value Assumptions, Dividend Yield | 1.97% | 1.66% | 2.61% | |||
Fair Value Assumptions, Expected Volatility Rate | 107.80% | 106.20% | 104.53% | |||
Fair Value Assumptions, Expected Term | 1 year 7 months 6 days | 1 year 4 months 24 days | 2 years 3 months 18 days | |||
Market Share Price | $ 50.71 | $ 33.70 | $ 14.36 | |||
Weighted Average Grant Date Fair Value | $ 44.17 | $ 38.89 | $ 38.03 | |||
Canadian Dollar [Member] | Tandem Stock Appreciation Rights (TSARs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair Value Assumptions, Risk Free Interest Rate | 4.02% | 0.94% | 0.20% | |||
Fair Value Assumptions, Dividend Yield | 1.90% | 1.65% | 2.75% | |||
Fair Value Assumptions, Expected Volatility Rate | 106.16% | 104.80% | 103.64% | |||
Fair Value Assumptions, Expected Term | 1 year 6 months | 1 year 4 months 24 days | 1 year 9 months 18 days | |||
Market Share Price | $ 68.56 | $ 42.56 | $ 18.29 | |||
Weighted Average Grant Date Fair Value | $ 60.31 | $ 54.17 | $ 48.28 |
Compensation Plans (Schedule _4
Compensation Plans (Schedule of Outstanding Tandem Stock Appreciation Rights) (Details) - Tandem Stock Appreciation Rights (TSARs) [Member] - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, Beginning of Year | 733 | 1,586 |
Granted | 0 | 0 |
Exercised - SARs | (269) | (136) |
Exercised - Options | 0 | 0 |
Forfeited | 0 | (717) |
Expired | (174) | 0 |
Outstanding, End of Year | 290 | 733 |
Vested and Exercisable, End of Year | 290 | 642 |
Expected to Vest | 0 | 91 |
Weighted Average Exercise Price, Beginning of Year | $ 54.17 | $ 48.28 |
Grants, Weighted Average Exercise Price | 0 | 0 |
Exercised - SARs, Weighted Average Exercise Price | 36.16 | 28.01 |
Exercised - options, Weighted Average Exercise Price | 0 | 0 |
Forfeited, Weighted Average Exercise Price | 0 | 46.11 |
Expired, Weighted Average Exercise Price | 71.70 | 0 |
Weighted Average Exercise Price, End of Year | 60.31 | 54.17 |
Weighted Average Exercise Price, Vested and Exercisable | 60.31 | 55.38 |
Expected to Vest | $ 0 | $ 45.64 |
Weighted Average Remaining Contractual Life, End of Year | 2 years 2 months 12 days | 2 years 2 months 12 days |
Weighted Average Remaining Contractual Life, Vested and Exercisable | 2 years 2 months 12 days | 1 year 10 months 24 days |
Weighted Average Remaining Contractual Life, Expected to Vest | 4 years 3 months 18 days |
Compensation Plans (Schedule _5
Compensation Plans (Schedule of Outstanding Tandem Stock Appreciation Rights) (Parenthetical) (Details) - Tandem Stock Appreciation Rights (TSARs) [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Intrinsic value of options awards, exercised and cash settled | $ 6 | $ 2 |
Intrinsic value of options awards, outstanding | 7 | 10 |
Intrinsic value of options awards, vested and exercisable | $ 7 | 9 |
Intrinsic value of options awards expected to vest | $ 1 |
Compensation Plans (Schedule _6
Compensation Plans (Schedule of Outstanding Performance Share Units) (Details) - Performance Share Units [Member] shares in Thousands | 12 Months Ended | |||
Dec. 31, 2022 $ / shares shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares | Dec. 31, 2021 $ / shares shares | |
United States Of America Dollars [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested and Outstanding, Beginning of Year | shares | 2,427 | 2,427 | 1,886 | 1,886 |
Granted | shares | 312 | 312 | 833 | 833 |
Vested and Released | shares | (515) | (515) | (177) | (177) |
Units, in Lieu of Dividends | shares | 44 | 44 | 37 | 37 |
Forfeited | shares | (7) | (7) | (152) | (152) |
Unvested and Outstanding, End of Year | shares | 2,261 | 2,261 | 2,427 | 2,427 |
Unvested and Outstanding, Beginning of Year | $ / shares | $ 20.04 | $ 21.80 | ||
Granted | $ / shares | 45.61 | 25.80 | ||
Vested and Released | $ / shares | 35.05 | 54.65 | ||
Units, in Lieu of Dividends | $ / shares | 20.15 | 20.04 | ||
Forfeited | $ / shares | 16.47 | 32.96 | ||
Unvested and Outstanding, End of Year | $ / shares | $ 20.17 | $ 20.04 | ||
Canadian Dollar [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested and Outstanding, Beginning of Year | shares | 1,223 | 1,223 | 1,308 | 1,308 |
Granted | shares | 146 | 146 | 293 | 293 |
Vested and Released | shares | (321) | (321) | (137) | (137) |
Units, in Lieu of Dividends | shares | 21 | 21 | 20 | 20 |
Forfeited | shares | (21) | (21) | (261) | (261) |
Unvested and Outstanding, End of Year | shares | 1,048 | 1,048 | 1,223 | 1,223 |
Unvested and Outstanding, Beginning of Year | $ / shares | $ 26.75 | $ 34.43 | ||
Granted | $ / shares | 57.95 | 29.34 | ||
Vested and Released | $ / shares | 47.01 | 68.80 | ||
Units, in Lieu of Dividends | $ / shares | 24.94 | 26.66 | ||
Forfeited | $ / shares | 32.11 | 46.13 | ||
Unvested and Outstanding, End of Year | $ / shares | $ 24.74 | $ 26.75 |
Compensation Plans (Schedule _7
Compensation Plans (Schedule of Outstanding Performance Share Units) (Parenthetical) (Details) - Performance Share Units [Member] $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Payments of cash-settled | $ | $ 22 | $ 3 | $ 6 | |
United States Of America Dollars [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value per share as of date of modification | $ 56.72 | |||
Canadian Dollar [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value per share as of date of modification | $ 72.17 |
Compensation Plans (Schedule _8
Compensation Plans (Schedule of Outstanding Deferred Share Units) (Details) - Deferred Share Units [Member] - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
United States Of America Dollars [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested and Outstanding, Beginning of Year | 5 | 0 |
Granted | 5 | 5 |
Converted from bonus awards | 0 | 0 |
Units, in Lieu of Dividends | 0 | 0 |
Redeemed | 0 | 0 |
Vested and Outstanding, End of Year | 10 | 5 |
Canadian Dollar [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested and Outstanding, Beginning of Year | 206 | 211 |
Granted | 3 | 8 |
Converted from bonus awards | 0 | 0 |
Units, in Lieu of Dividends | 4 | 4 |
Redeemed | (25) | (17) |
Vested and Outstanding, End of Year | 188 | 206 |
Compensation Plans (Schedule _9
Compensation Plans (Schedule of Outstanding Restricted Share Units) (Details) - Restricted Share Units [Member] shares in Thousands | 12 Months Ended | |||
Dec. 31, 2022 $ / shares shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares | Dec. 31, 2021 $ / shares shares | |
United States Of America Dollars [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested and Outstanding, Beginning of Year | shares | 5,401 | 5,401 | 5,486 | 5,486 |
Granted | shares | 982 | 982 | 1,952 | 1,952 |
Units, in Lieu of Dividends | shares | 67 | 67 | 83 | 83 |
Vested and Released | shares | (2,932) | (2,932) | (1,720) | (1,720) |
Forfeited | shares | (149) | (149) | (400) | (400) |
Unvested and Outstanding, End of Year | shares | 3,369 | 3,369 | 5,401 | 5,401 |
Unvested and Outstanding, Beginning of Year | $ / shares | $ 20.92 | $ 21.26 | ||
Granted | $ / shares | 46.14 | 23.57 | ||
Units, in Lieu of Dividends | $ / shares | 25.27 | 20.93 | ||
Vested and Released | $ / shares | 23.99 | 24.74 | ||
Forfeited | $ / shares | 26.02 | 21.99 | ||
Unvested and Outstanding, End of Year | $ / shares | $ 25.48 | $ 20.92 | ||
Canadian Dollar [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested and Outstanding, Beginning of Year | shares | 2,621 | 2,621 | 2,912 | 2,912 |
Granted | shares | 444 | 444 | 953 | 953 |
Units, in Lieu of Dividends | shares | 30 | 30 | 41 | 41 |
Vested and Released | shares | (1,484) | (1,484) | (1,035) | (1,035) |
Forfeited | shares | (71) | (71) | (250) | (250) |
Unvested and Outstanding, End of Year | shares | 1,540 | 1,540 | 2,621 | 2,621 |
Unvested and Outstanding, Beginning of Year | $ / shares | $ 28.23 | $ 31.76 | ||
Granted | $ / shares | 58.97 | 29.30 | ||
Units, in Lieu of Dividends | $ / shares | 32.55 | 28.11 | ||
Vested and Released | $ / shares | 32.68 | 37.63 | ||
Forfeited | $ / shares | 33.75 | 34.43 | ||
Unvested and Outstanding, End of Year | $ / shares | $ 32.65 | $ 28.23 |
Compensation Plans (Schedule_10
Compensation Plans (Schedule of Outstanding Restricted Share Units) (Parenthetical) (Details) - Restricted Share Units [Member] $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2020 USD ($) | Dec. 31, 2022 $ / shares | Dec. 31, 2021 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payments of cash-settled | $ | $ 51 | $ 23 | $ 10 | ||
United States Of America Dollars [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant date fair value per share as of date of modification | $ 56.72 | $ 25.66 | |||
Canadian Dollar [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant date fair value per share as of date of modification | $ 72.17 | $ 32.07 |
Pension and Other Post-Employ_3
Pension and Other Post-Employment Benefits (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Average Remaining Life Expectancy of Inactive Employees in Defined Benefit Plan, In Years | 14 years | ||
Accumulated Benefit Obligation | $ 190 | $ 258 | |
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ 0 | ||
Long-Term Rate of Return on Plan Assets | 4.70% | ||
U.S. and Foreign Equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 33% | 33% | |
Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 67% | 67% | |
Operating Expense [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension and Other Postretirement (Benefit) Expense | $ 22 | $ 22 | $ 27 |
Administrative Expense [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension and Other Postretirement (Benefit) Expense | 4 | 5 | 6 |
Other Nonoperating Income (Expense) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension and Other Postretirement (Benefit) Expense | $ (5) | (6) | 0 |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Average Remaining Service Period Of Active Participates In Plan In Years | 5 years | ||
Pension and Other Postretirement (Benefit) Expense | $ 24 | $ 24 | $ 31 |
Long-Term Rate of Return on Plan Assets | 3.85% | 3% | 3.75% |
Actual Return on Plan Assets | $ (27) | $ 3 | |
OPEB [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Average Remaining Service Period Of Active Participates In Plan In Years | 8 years | ||
Pension and Other Postretirement (Benefit) Expense | $ (3) | $ (3) | $ 2 |
Long-Term Rate of Return on Plan Assets | 0% | 0% | 0% |
Actual Return on Plan Assets | $ 0 | $ 0 |
Pension and Other Post-Employ_4
Pension and Other Post-Employment Benefits (Changes In Benefit Obligation And Fair Value Of Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets, Beginning of Year | $ 176 | ||
Fair Value of Plan Assets, End of Year | 124 | $ 176 | |
Non-Current Liabilities | (73) | (104) | |
Defined Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected Benefit Obligation, Beginning of Year | 191 | 211 | |
Service Cost | 0 | 0 | $ 1 |
Interest Cost | 5 | 5 | 6 |
Actuarial (Gains) Losses | (33) | (9) | |
Exchange Differences | (10) | 1 | |
Employee Contributions | 0 | 0 | |
Benefits Paid | (13) | (17) | |
Plan Amendment | 0 | 0 | |
Projected Benefit Obligation, End of Year | 140 | 191 | 211 |
Fair Value of Plan Assets, Beginning of Year | 176 | 193 | |
Actual Return on Plan Assets | (27) | 3 | |
Exchange Differences | (10) | 1 | |
Employee Contributions | 0 | 0 | |
Employer Contributions | 0 | 0 | |
Benefits Paid | (13) | (17) | |
Transfers to Defined Contribution Plan | (2) | (4) | |
Fair Value of Plan Assets, End of Year | 124 | 176 | 193 |
Funded Status of Plan Assets, End of Year | (16) | (15) | |
Other Assets | 2 | 10 | |
Current Liabilities | 0 | 0 | |
Non-Current Liabilities | (18) | (25) | |
Total | (16) | (15) | |
Net Actuarial (Gains) Losses | 18 | 19 | |
Net Prior Service Costs | (7) | (7) | |
Total Recognized in Accumulated Other Comprehensive Income, Before Tax | 11 | 12 | |
OPEB [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected Benefit Obligation, Beginning of Year | 67 | 89 | |
Service Cost | 2 | 3 | 4 |
Interest Cost | 2 | 2 | 2 |
Actuarial (Gains) Losses | (13) | (8) | |
Exchange Differences | (1) | 0 | |
Employee Contributions | 2 | 2 | |
Benefits Paid | (9) | (10) | |
Plan Amendment | 0 | (11) | |
Projected Benefit Obligation, End of Year | 50 | 67 | 89 |
Fair Value of Plan Assets, Beginning of Year | 0 | 0 | |
Actual Return on Plan Assets | 0 | 0 | |
Exchange Differences | 0 | 0 | |
Employee Contributions | 2 | 2 | |
Employer Contributions | 7 | 8 | |
Benefits Paid | (9) | (10) | |
Transfers to Defined Contribution Plan | 0 | 0 | |
Fair Value of Plan Assets, End of Year | 0 | 0 | $ 0 |
Funded Status of Plan Assets, End of Year | (50) | (67) | |
Other Assets | 0 | 0 | |
Current Liabilities | (7) | (8) | |
Non-Current Liabilities | (43) | (59) | |
Total | (50) | (67) | |
Net Actuarial (Gains) Losses | (88) | (82) | |
Net Prior Service Costs | 7 | 7 | |
Total Recognized in Accumulated Other Comprehensive Income, Before Tax | $ (81) | $ (75) |
Pension and Other Post-Employ_5
Pension and Other Post-Employment Benefits (Accumulated Benefit Obligation And Projected Benefit Obligation In Excess Of The Plan Assets Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation | $ (47) | $ (63) |
Accumulated Benefit Obligation | (47) | (63) |
Fair Value of Plan Assets | 29 | 38 |
OPEB [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation | (50) | (67) |
Accumulated Benefit Obligation | (50) | (67) |
Fair Value of Plan Assets | $ 0 | $ 0 |
Pension and Other Post-Employ_6
Pension and Other Post-Employment Benefits (Weighted Average Assumptions Used) (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount Rate | 5.10% | 2.80% |
Rates of Increase in Compensation Levels | 3.24% | 3.13% |
OPEB [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount Rate | 5.25% | 2.54% |
Rates of Increase in Compensation Levels | 4.83% | 6.18% |
Pension and Other Post-Employ_7
Pension and Other Post-Employment Benefits (Total Benefit Plan Expense Recognized) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net Defined Periodic Benefit Cost | $ 0 | $ 0 | $ 3 |
Defined Contribution Plan Expense | 24 | 24 | 28 |
Total Benefit Plans Expense | 24 | 24 | 31 |
OPEB [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net Defined Periodic Benefit Cost | (3) | (3) | 2 |
Defined Contribution Plan Expense | 0 | 0 | 0 |
Total Benefit Plans Expense | $ (3) | $ (3) | $ 2 |
Pension and Other Post-Employ_8
Pension and Other Post-Employment Benefits (Defined Periodic Pension And OPEB Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | $ 0 | $ 0 | $ 1 |
Interest Cost | $ 5 | $ 5 | $ 6 |
Defined Benefit Plan Net Periodic Benefit Cost Credit Interest Cost Statement Of Income Or Comprehensive Income Extensible List | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Expected Return on Plan Assets | $ (6) | $ (6) | $ (7) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Amortization of net actuarial (gains) and losses | $ 1 | $ 1 | $ 1 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Amortization of net prior service costs | $ 0 | $ 0 | $ 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Curtailment of net prior service costs | $ 0 | $ 0 | $ 0 |
Settlement from net prior service costs | $ 0 | $ 0 | $ 2 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Curtailment | $ 0 | $ 0 | $ 0 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Curtailment Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Total Net Defined Periodic Benefit Cost | $ 0 | $ 0 | $ 3 |
OPEB [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | 2 | 3 | 4 |
Interest Cost | $ 2 | $ 2 | $ 2 |
Defined Benefit Plan Net Periodic Benefit Cost Credit Interest Cost Statement Of Income Or Comprehensive Income Extensible List | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Expected Return on Plan Assets | $ 0 | $ 0 | $ 0 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Amortization of net actuarial (gains) and losses | $ (7) | $ (9) | $ (10) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Amortization of net prior service costs | $ 0 | $ 1 | $ 2 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Curtailment of net prior service costs | $ 0 | $ 0 | $ 5 |
Settlement from net prior service costs | $ 0 | $ 0 | $ 0 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Curtailment | $ 0 | $ 0 | $ (1) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Curtailment Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Total Net Defined Periodic Benefit Cost | $ (3) | $ (3) | $ 2 |
Pension and Other Post-Employ_9
Pension and Other Post-Employment Benefits (Recognized Amounts In Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of Net Actuarial Gains and (Losses) | $ 6 | $ 8 | $ 9 |
Total Amounts Recognized in Other Comprehensive (Income) Loss, After Tax | (6) | (14) | 8 |
Defined Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net Actuarial (Gains) Losses | 0 | (6) | 6 |
Net Prior Service Costs from Plan Amendment | 0 | 0 | 0 |
Amortization of Net Actuarial Gains and (Losses) | (1) | (1) | (1) |
Amortization of Net Prior Service Costs | 0 | 0 | 0 |
Curtailment of Net Prior Service Costs | 0 | 0 | 0 |
Settlement from Net Prior Service Costs | 0 | 0 | (2) |
Total Amounts Recognized in Other Comprehensive (Income) Loss, Before Tax | (1) | (7) | 3 |
Total Amounts Recognized in Other Comprehensive (Income) Loss, After Tax | (1) | (5) | 3 |
OPEB [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net Actuarial (Gains) Losses | (13) | (8) | 4 |
Net Prior Service Costs from Plan Amendment | 0 | (11) | 0 |
Amortization of Net Actuarial Gains and (Losses) | 7 | 9 | 10 |
Amortization of Net Prior Service Costs | 0 | (1) | (2) |
Curtailment of Net Prior Service Costs | 0 | 0 | (5) |
Settlement from Net Prior Service Costs | 0 | 0 | 0 |
Total Amounts Recognized in Other Comprehensive (Income) Loss, Before Tax | (6) | (11) | 7 |
Total Amounts Recognized in Other Comprehensive (Income) Loss, After Tax | $ (5) | $ (9) | $ 5 |
Pension and Other Post-Emplo_10
Pension and Other Post-Employment Benefits (Weighted Average Assumptions Used In Determining Net Periodic Pension And Other Post-Retirement Benefit Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Long-Term Rate of Return on Plan Assets | 4.70% | ||
Defined Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate | 5.10% | 2.25% | 3% |
Long-Term Rate of Return on Plan Assets | 3.85% | 3% | 3.75% |
Rates of Increase in Compensation Levels | 3.24% | 3.13% | 3.12% |
OPEB [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate | 2.46% | 2.08% | 2.90% |
Long-Term Rate of Return on Plan Assets | 0% | 0% | 0% |
Rates of Increase in Compensation Levels | 4.83% | 6.33% | 5.92% |
Pension and Other Post-Emplo_11
Pension and Other Post-Employment Benefits (Assumed Health Care Cost Trend Rates) (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Health Care Cost Trend Rate for Next Year | 6.16% | 6.15% | 6.42% |
Rate to Which the Cost Trend Rate is Assumed to Decline (Ultimate Trend Rate) | 5% | 5% | 5% |
Year that the Rate Reaches the Ultimate Trend Rate | 2027 | 2026 | 2026 |
Pension and Other Post-Emplo_12
Pension and Other Post-Employment Benefits (Estimate Of Benefit Payments For The Next 10 Years) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 13 |
2024 | 13 |
2025 | 13 |
2026 | 13 |
2027 | 12 |
2028 - 2032 | 56 |
OPEB [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 7 |
2024 | 6 |
2025 | 6 |
2026 | 5 |
2027 | 5 |
2028 - 2032 | $ 18 |
Pension and Other Post-Emplo_13
Pension and Other Post-Employment Benefits (Plan Assets By Investment Asset Category And Fair Value Input Level) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets, End of Year | $ 124 | $ 176 |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets, End of Year | 17 | 20 |
Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets, End of Year | 66 | 94 |
Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets, End of Year | 41 | 62 |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets, End of Year | 17 | 19 |
Level 1 [Member] | Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets, End of Year | 17 | 19 |
Level 1 [Member] | Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets, End of Year | 0 | 0 |
Level 1 [Member] | Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets, End of Year | 0 | 0 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets, End of Year | 107 | 157 |
Level 2 [Member] | Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets, End of Year | 0 | 1 |
Level 2 [Member] | Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets, End of Year | 66 | 94 |
Level 2 [Member] | Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets, End of Year | 41 | 62 |
Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets, End of Year | 0 | 0 |
Level 3 [Member] | Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets, End of Year | 0 | 0 |
Level 3 [Member] | Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets, End of Year | 0 | 0 |
Level 3 [Member] | Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets, End of Year | $ 0 | $ 0 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Net, Current | $ 53 | $ 1 |
Risk Management Assets, Net, Long-term | 34 | 0 |
Risk Management Liabilities, Net, Current | 86 | 703 |
Risk Management Liabilities, Net, Long-term | 0 | 25 |
Guarantor Obligations, Current Carrying Value | 5 | 6 |
Other Derivative Contract Assets | 0 | 9 |
Other Liabilities and Provisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 5 | 5 |
Other Liabilities and Provisions [Member] | Carrying Amount [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 5 | 5 |
Other Liabilities and Provisions [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 0 | 0 |
Other Liabilities and Provisions [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 5 | 5 |
Other Liabilities and Provisions [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 0 | 0 |
Accounts Receivable And Accrued Revenues | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Derivative Contract Assets | 0 | 9 |
Accounts Receivable And Accrued Revenues | Carrying Amount [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Derivative Contract Assets | 9 | |
Accounts Receivable And Accrued Revenues | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Derivative Contract Assets | 9 | |
Accounts Payable and Accrued Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 0 | 1 |
Accounts Payable and Accrued Liabilities [Member] | Carrying Amount [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 1 | |
Accounts Payable and Accrued Liabilities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 0 | |
Accounts Payable and Accrued Liabilities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 1 | |
Accounts Payable and Accrued Liabilities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 0 | |
Commodity Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 0 | |
Risk Management Assets, Gross Liabilities | 0 | |
Risk Management Assets, Net, Current | $ 0 | $ 0 |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Risk Management Assets, Net, Current | Risk Management Assets, Net, Current |
Risk Management Liabilities, Net, Current | $ 0 | $ 707 |
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Risk Management Liabilities, Net, Current | Risk Management Liabilities, Net, Current |
Risk Management Liabilities, Net, Long-term | $ 25 | |
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Risk Management Liabilities, Net, Long-term | |
Commodity Derivatives [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | $ 0 | |
Commodity Derivatives [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 0 | |
Commodity Derivatives [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 0 | |
Commodity Derivatives [Member] | Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 105 | $ 10 |
Risk Management Assets, Gross Liabilities | (10) | |
Commodity Derivatives [Member] | Other Current Assets [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 0 | 0 |
Commodity Derivatives [Member] | Other Current Assets [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 93 | 10 |
Commodity Derivatives [Member] | Other Current Assets [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 12 | 0 |
Commodity Derivatives [Member] | Other Noncurrent Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 34 | 1 |
Risk Management Assets, Gross Liabilities | (1) | |
Commodity Derivatives [Member] | Other Noncurrent Assets [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 0 | 0 |
Commodity Derivatives [Member] | Other Noncurrent Assets [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 34 | 1 |
Commodity Derivatives [Member] | Other Noncurrent Assets [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 0 | 0 |
Commodity Derivatives [Member] | Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | 128 | 717 |
Risk Management Liabilities, Gross Assets | (53) | (10) |
Commodity Derivatives [Member] | Other Current Liabilities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | 0 | |
Commodity Derivatives [Member] | Other Current Liabilities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | 128 | 536 |
Commodity Derivatives [Member] | Other Current Liabilities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | 0 | 181 |
Commodity Derivatives [Member] | Other Liabilities and Provisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | 26 | |
Risk Management Liabilities, Gross Assets | (1) | |
Commodity Derivatives [Member] | Other Liabilities and Provisions [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | 0 | |
Commodity Derivatives [Member] | Other Liabilities and Provisions [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | 26 | |
Commodity Derivatives [Member] | Other Liabilities and Provisions [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | 0 | |
Foreign Currency Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Net, Current | $ 0 | $ 1 |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Risk Management Assets, Net, Current | Risk Management Assets, Net, Current |
Risk Management Liabilities, Net, Current | $ 0 | $ (4) |
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Risk Management Liabilities, Net, Current | Risk Management Liabilities, Net, Current |
Foreign Currency Derivatives [Member] | Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | $ 1 | $ 5 |
Risk Management Assets, Gross Liabilities | 0 | (4) |
Foreign Currency Derivatives [Member] | Other Current Assets [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 0 | 0 |
Foreign Currency Derivatives [Member] | Other Current Assets [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 1 | 5 |
Foreign Currency Derivatives [Member] | Other Current Assets [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 0 | 0 |
Foreign Currency Derivatives [Member] | Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | 11 | |
Risk Management Liabilities, Gross Assets | 0 | $ (4) |
Foreign Currency Derivatives [Member] | Other Current Liabilities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | 0 | |
Foreign Currency Derivatives [Member] | Other Current Liabilities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | 11 | |
Foreign Currency Derivatives [Member] | Other Current Liabilities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | $ 0 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Of Changes In Level 3 Fair Value Measurements) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Balance, Beginning Balance | $ (172) | $ (74) |
Total Gains (Losses) | $ (449) | $ (708) |
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Purchases, sales and issuances | $ 0 | $ 6 |
Settlements | 633 | 604 |
Transfers Out of Level 3 | 0 | 0 |
Balance, Ending Balance | 12 | (172) |
Change in Unrealized Gains (Losses) During the Year Included in Net Earnings (Loss) | $ 184 | $ (104) |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative Information About Unobservable Inputs Used In Level 3) (Details) - WTI Options [Member] - Option Model [Member] | 12 Months Ended |
Dec. 31, 2022 | |
Minimum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Fair Value Inputs Commodity Price Volatility | 14% |
Maximum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Fair Value Inputs Commodity Price Volatility | 52% |
Weighted Average [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Fair Value Inputs Commodity Price Volatility | 44% |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Ten Percent Change in Implied Volatility [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Increase (Decrease) in Risk Management Assets and Liabilities | $ 2 | $ 15 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) contract $ / $ | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Derivative [Line Items] | |||
Realized gain on derivatives | $ (2,613,000,000) | $ (1,362,000,000) | $ 710,000,000 |
Unrealized gain on derivatives | 726,000,000 | $ (509,000,000) | (191,000,000) |
Credit risk, financial instrument, maximum exposure, based on gross fair value basis | 140,000,000 | ||
Credit risk, financial instrument, maximum exposure, based on net fair value basis | $ 87,000,000 | ||
Number of credit risk derivatives held | contract | 0 | ||
Collateral balances | $ 0 | ||
Concentration risk, percentage | 88% | 90% | |
Guarantor Obligations, Current Carrying Value | $ 5,000,000 | $ 6,000,000 | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 34,000,000 | ||
Maximum [Member] | |||
Derivative [Line Items] | |||
Guarantor obligations, expiration date | 2024-06 | ||
Revenue [Member] | |||
Derivative [Line Items] | |||
Realized gain on derivatives | $ (2,608,000,000) | (1,395,000,000) | 711,000,000 |
Unrealized gain on derivatives | 741,000,000 | (488,000,000) | (204,000,000) |
Currency Swaps Mature Monthly Throughout 2022 [Member] | |||
Derivative [Line Items] | |||
Foreign currency swap, contract amount outstanding | $ 400,000,000 | ||
Derivative, average forward exchange rate | $ / $ | 1.3160 | ||
Other Derivative Contracts [Member] | Revenue [Member] | |||
Derivative [Line Items] | |||
Realized gain on derivatives | $ 6,000,000 | 1,000,000 | 2,000,000 |
Unrealized gain on derivatives | $ 2,000,000 | $ 4,000,000 | $ (1,000,000) |
Financial Instruments and Ris_4
Financial Instruments and Risk Management (Risk Management Positions) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / bbl $ / Mcf MMcf MBbls | |
Derivative [Line Items] | |
Other Derivative Contracts, Net | $ (5) |
Foreign Currency Swaps, at Fair value, Net | (10) |
Total Fair Value Position | $ (4) |
Currency Swap [Member] | |
Derivative [Line Items] | |
Term | Dec. 31, 2023 |
Oil and NGLs [Member] | |
Derivative [Line Items] | |
Price Risk Derivatives, at Fair Value, Net | $ 12 |
Oil | WTI Three-Way Options Maturing 2023 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MBbls | 38 |
Price Risk Derivatives, at Fair Value, Net | $ 12 |
Term | Dec. 31, 2023 |
Oil | WTI Three-Way Options Maturing 2023 [Member] | Call Option [Member] | Sold [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / bbl | 113.35 |
Oil | WTI Three-Way Options Maturing 2023 [Member] | Put Option [Member] | Sold [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / bbl | 50 |
Oil | WTI Three-Way Options Maturing 2023 [Member] | Put Option [Member] | Bought [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / bbl | 65.33 |
Oil | Basis Contracts Maturing 2023 [Member | |
Derivative [Line Items] | |
Price Risk Derivatives, at Fair Value, Net | $ 0 |
Term | Dec. 31, 2023 |
Natural Gas [Member] | |
Derivative [Line Items] | |
Price Risk Derivatives, at Fair Value, Net | $ (1) |
Natural Gas [Member] | Fair Value Position Excluding Unexpired Options [Member] | |
Derivative [Line Items] | |
Price Risk Derivatives, at Fair Value, Net | $ (1) |
Natural Gas [Member] | NYMEX Three-Way Options, Maturing 2023 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MMcf | 397 |
Price Risk Derivatives, at Fair Value, Net | $ 16 |
Term | Dec. 31, 2023 |
Natural Gas [Member] | NYMEX Three-Way Options, Maturing 2023 [Member] | Call Option [Member] | Sold [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / Mcf | 8.27 |
Natural Gas [Member] | NYMEX Three-Way Options, Maturing 2023 [Member] | Put Option [Member] | Sold [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / Mcf | 2.63 |
Natural Gas [Member] | NYMEX Three-Way Options, Maturing 2023 [Member] | Put Option [Member] | Bought [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / Mcf | 3.68 |
Natural Gas [Member] | Basis Contracts Maturing 2023 [Member] | |
Derivative [Line Items] | |
Price Risk Derivatives, at Fair Value, Net | $ (52) |
Term | Dec. 31, 2023 |
Natural Gas [Member] | Basis Contracts Maturing 2024 [Member] | |
Derivative [Line Items] | |
Price Risk Derivatives, at Fair Value, Net | $ 26 |
Term | Dec. 31, 2024 |
Natural Gas [Member] | Basis Contracts Maturing 2025 [Member] | |
Derivative [Line Items] | |
Price Risk Derivatives, at Fair Value, Net | $ 8 |
Term | Dec. 31, 2025 |
Natural Gas [Member] | Other Financial Positions [Member] | |
Derivative [Line Items] | |
Price Risk Derivatives, at Fair Value, Net | $ 1 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management (Earnings Impact of Realized and Unrealized Gains (Losses) On Risk Management Positions) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized Gain (Loss) on Derivatives | $ (2,613) | $ (1,362) | $ 710 |
Unrealized Gain (Loss) on Derivatives | 726 | (509) | (191) |
Realized and Unrealized Gain (Loss) on Risk Management | $ (1,887) | $ (1,871) | $ 519 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gains (losses) on risk management, net | Gains (losses) on risk management, net | Gains (losses) on risk management, net |
Revenue [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized Gain (Loss) on Derivatives | $ (2,608) | $ (1,395) | $ 711 |
Unrealized Gain (Loss) on Derivatives | 741 | (488) | (204) |
Realized and Unrealized Gain (Loss) on Risk Management | $ (1,867) | $ (1,883) | $ 507 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gains (losses) on risk management, net | Gains (losses) on risk management, net | Gains (losses) on risk management, net |
Foreign Currency Gain (Loss) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized Gain (Loss) on Derivatives | $ (5) | $ 33 | $ (1) |
Unrealized Gain (Loss) on Derivatives | (15) | (21) | 13 |
Realized and Unrealized Gain (Loss) on Risk Management | $ (20) | $ 12 | $ 12 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gains (losses) on risk management, net | Gains (losses) on risk management, net | Gains (losses) on risk management, net |
Financial Instruments and Ris_6
Financial Instruments and Risk Management (Reconciliation of Unrealized Risk Management Positions) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Fair Value of Contracts, Beginning of Year | $ (724) | ||
Settlement of Other Derivative Contracts | (6) | ||
Fair Value of Contracts Realized During the Year | 2,613 | $ 1,362 | $ (710) |
Fair Value of Contracts, End of Year | (4) | (724) | |
Unrealized Gain (Loss) on Derivatives | 726 | (509) | (191) |
Commodity Contract [Member] | |||
Derivative [Line Items] | |||
Increase (Decrease) in Derivative Assets and Liabilities | $ (1,887) | $ (1,871) | $ 519 |
Financial Instruments and Ris_7
Financial Instruments and Risk Management (Unrealized Risk Management Positions) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Risk Management, Current asset | $ 53 | $ 1 |
Risk Management, Long-term asset | 34 | 0 |
Risk Management, Total asset | 87 | 1 |
Risk Management, Current liability | 86 | 703 |
Risk Management, Long-term liability | 0 | 25 |
Risk Management, Total liability | 86 | 728 |
Other Derivative Contract Assets | 0 | 9 |
Guarantor Obligations, Current Carrying Value | 5 | 6 |
Risk Management and Other Derivative Guarantee, at Fair Value, Net | (4) | (724) |
Accounts Receivable And Accrued Revenues | ||
Derivatives, Fair Value [Line Items] | ||
Other Derivative Contract Assets | 0 | 9 |
Accounts Payable and Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 0 | 1 |
Other Liabilities and Provisions [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Guarantor Obligations, Current Carrying Value | $ 5 | $ 5 |
Supplementary Information (Net
Supplementary Information (Net Change in Non-Cash Working Capital) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |||
Accounts receivable and accrued revenues | $ (304) | $ (333) | $ 146 |
Accounts payable and accrued liabilities | 50 | 275 | (26) |
Current portion of operating lease liabilities | 14 | (7) | (11) |
Income tax receivable and payable | 53 | 24 | 30 |
Net change in non-cash working capital | $ (187) | $ (41) | $ 139 |
Supplementary Information (Non-
Supplementary Information (Non-Cash Activity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Non-Cash Operating Activities | |||
ROU operating lease assets and liabilities | $ (75) | $ (23) | $ (10) |
Non-Cash Investing Activities | |||
Asset retirement obligation incurred | 4 | 8 | 7 |
Asset retirement obligation change in estimated future cash outflows | 58 | 5 | (49) |
Property, plant and equipment accruals | 35 | (9) | (175) |
Capitalized long-term incentives | 4 | 8 | (16) |
Property additions/dispositions, including swaps | 126 | 34 | 229 |
Contingent consideration (See Note 8) | $ 0 | $ 6 | $ 0 |
Supplementary Information - Add
Supplementary Information - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Noncash Or Part Noncash Acquisitions [Line Items] | |||
Property additions/dispositions | $ 126 | $ 34 | $ 229 |
Duvernay shale [Member] | |||
Noncash Or Part Noncash Acquisitions [Line Items] | |||
Property additions/dispositions | $ 203 |
Supplemental Information (Suppl
Supplemental Information (Supplementary Cash Flow Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest Paid | $ 376 | $ 370 | $ 385 |
Income Taxes (Recovered), net of Amounts Paid | $ (38) | $ (176) | $ (52) |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Commitments [Line Items] | |
2023 | $ 1,098 |
2024 | 717 |
2025 | 578 |
2026 | 492 |
2027 | 463 |
Thereafter | 2,156 |
Total | 5,504 |
Transportation and Processing Commitments [Member] | |
Commitments [Line Items] | |
2023 | 790 |
2024 | 687 |
2025 | 570 |
2026 | 490 |
2027 | 463 |
Thereafter | 2,156 |
Total | 5,156 |
Drilling and Field Services Commitments [Member] | |
Commitments [Line Items] | |
2023 | 299 |
2024 | 21 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total | 320 |
Building Leases [Member] | |
Commitments [Line Items] | |
2023 | 9 |
2024 | 9 |
2025 | 8 |
2026 | 2 |
2027 | 0 |
Thereafter | 0 |
Total | $ 28 |
Supplementary Oil and Gas Inf_3
Supplementary Oil and Gas Information (Twelve Month Average Trailing Prices) (Details) | 12 Months Ended | ||
Dec. 31, 2022 $ / bbl $ / bbl $ / MMBTU $ / MMBTU | Dec. 31, 2021 $ / bbl $ / bbl $ / MMBTU $ / MMBTU | Dec. 31, 2020 $ / bbl $ / bbl $ / MMBTU $ / MMBTU | |
Oil and NGLs [Member] | WTI [Member] | |||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | |||
Reference Price | $ / bbl | 93.82 | 66.56 | 39.62 |
Oil and NGLs [Member] | Edmonton Condensate [Member] | |||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | |||
Reference Price | $ / bbl | 121.18 | 83.69 | 49.77 |
Natural Gas [Member] | Henry Hub [Member] | |||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | |||
Reference Price | $ / MMBTU | 6.36 | 3.60 | 1.98 |
Natural Gas [Member] | AECO [Member] | |||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | |||
Reference Price | $ / MMBTU | 5.65 | 3.26 | 2.13 |
Supplementary Oil and Gas Inf_4
Supplementary Oil and Gas Information (Net Proved Reserves) (Details) | 12 Months Ended | ||
Dec. 31, 2022 MMBbls Bcf | Dec. 31, 2021 MMBbls Bcf | Dec. 31, 2020 MMBbls Bcf | |
Reserve Quantities [Line Items] | |||
Beginning of year | 2,258.2 | 1,992.5 | 2,188.8 |
Revisions and improved recovery | (189.2) | (67.8) | (364.9) |
Extensions and discoveries | 370.6 | 591.2 | 377.5 |
Purchase of reserves in place | 45.9 | 7.3 | 54.3 |
Sale of reserves in place | (25.7) | (70.2) | (64.1) |
Production | (186.2) | (194.9) | (199) |
End of year | 2,273.6 | 2,258.2 | 1,992.5 |
Developed | 1,288.7 | 1,325.7 | 1,111.3 |
Undeveloped | 984.9 | 932.5 | 881.1 |
Oil | |||
Reserve Quantities [Line Items] | |||
Beginning of year | 558.6 | 592.3 | 723.7 |
Revisions and improved recovery | (65.5) | (78) | (222) |
Extensions and discoveries | 95.2 | 121.5 | 144.4 |
Purchase of reserves in place | 15.8 | 2.6 | 10.9 |
Sale of reserves in place | (20.8) | (28.6) | (9.3) |
Production | (48) | (51.2) | (55.4) |
End of year | 535.3 | 558.6 | 592.3 |
Developed | 257.3 | 291.7 | 280.9 |
Undeveloped | 278 | 266.9 | 311.4 |
Natural Gas Liquids [Member] | |||
Reserve Quantities [Line Items] | |||
Beginning of year | 604.7 | 580.5 | 588.5 |
Revisions and improved recovery | (33.2) | (50.3) | (62.2) |
Extensions and discoveries | 68.5 | 142 | 105.8 |
Purchase of reserves in place | 15.4 | 2.5 | 20 |
Sale of reserves in place | (1.3) | (21) | (21.4) |
Production | (47.3) | (49) | (50.3) |
End of year | 606.9 | 604.7 | 580.5 |
Developed | 359.5 | 348.8 | 319.3 |
Undeveloped | 247.4 | 255.9 | 261.2 |
Natural Gas [Member] | |||
Reserve Quantities [Line Items] | |||
Beginning of year | Bcf | 6,570 | 4,918 | 5,259 |
Revisions and improved recovery | Bcf | (544) | 363 | (484) |
Extensions and discoveries | Bcf | 1,241 | 1,966 | 764 |
Purchase of reserves in place | Bcf | 88 | 13 | 140 |
Sale of reserves in place | Bcf | (22) | (123) | (201) |
Production | Bcf | (545) | (568) | (560) |
End of year | Bcf | 6,789 | 6,570 | 4,918 |
Developed | Bcf | 4,031 | 4,111 | 3,067 |
Undeveloped | Bcf | 2,757 | 2,458 | 1,851 |
United States [Member] | Oil | |||
Reserve Quantities [Line Items] | |||
Beginning of year | 557.5 | 590.5 | 722.4 |
Revisions and improved recovery | (65.1) | (78.7) | (221.5) |
Extensions and discoveries | 95.2 | 121.2 | 144.3 |
Purchase of reserves in place | 15.8 | 2.6 | 9.9 |
Sale of reserves in place | (20.2) | (27) | (9.3) |
Production | (48) | (51.1) | (55.2) |
End of year | 535.2 | 557.5 | 590.5 |
Developed | 257.2 | 291 | 279.1 |
Undeveloped | 278 | 266.6 | 311.4 |
United States [Member] | Natural Gas Liquids [Member] | |||
Reserve Quantities [Line Items] | |||
Beginning of year | 434.7 | 429.1 | 409.4 |
Revisions and improved recovery | 2.9 | (30) | (29.1) |
Extensions and discoveries | 37.2 | 75.1 | 78.1 |
Purchase of reserves in place | 13.7 | 1.6 | 8.4 |
Sale of reserves in place | (0.7) | (12.6) | (7.9) |
Production | (29.9) | (28.5) | (29.8) |
End of year | 457.8 | 434.7 | 429.1 |
Developed | 288.3 | 264.3 | 242.3 |
Undeveloped | 169.5 | 170.5 | 186.7 |
United States [Member] | Natural Gas [Member] | |||
Reserve Quantities [Line Items] | |||
Beginning of year | Bcf | 2,536 | 2,268 | 2,441 |
Revisions and improved recovery | Bcf | 38 | 61 | (323) |
Extensions and discoveries | Bcf | 237 | 428 | 392 |
Purchase of reserves in place | Bcf | 72 | 7 | 47 |
Sale of reserves in place | Bcf | (5) | (50) | (95) |
Production | Bcf | (180) | (179) | (194) |
End of year | Bcf | 2,698 | 2,536 | 2,268 |
Developed | Bcf | 1,755 | 1,621 | 1,327 |
Undeveloped | Bcf | 943 | 915 | 941 |
Canada [Member] | Oil | |||
Reserve Quantities [Line Items] | |||
Beginning of year | 1.1 | 1.7 | 1.3 |
Revisions and improved recovery | (0.3) | 0.7 | (0.5) |
Extensions and discoveries | 0 | 0.3 | 0.1 |
Purchase of reserves in place | 0 | 0 | 1 |
Sale of reserves in place | (0.6) | (1.6) | 0 |
Production | 0 | (0.1) | (0.2) |
End of year | 0.1 | 1.1 | 1.7 |
Developed | 0.1 | 0.7 | 1.7 |
Undeveloped | 0 | 0.3 | 0 |
Canada [Member] | Natural Gas Liquids [Member] | |||
Reserve Quantities [Line Items] | |||
Beginning of year | 170 | 151.4 | 179.1 |
Revisions and improved recovery | (36) | (20.3) | (33.1) |
Extensions and discoveries | 31.3 | 66.9 | 27.7 |
Purchase of reserves in place | 1.7 | 0.9 | 11.6 |
Sale of reserves in place | (0.6) | (8.4) | (13.4) |
Production | (17.3) | (20.5) | (20.5) |
End of year | 149 | 170 | 151.4 |
Developed | 71.2 | 84.5 | 76.9 |
Undeveloped | 77.8 | 85.4 | 74.5 |
Canada [Member] | Natural Gas [Member] | |||
Reserve Quantities [Line Items] | |||
Beginning of year | Bcf | 4,033 | 2,650 | 2,818 |
Revisions and improved recovery | Bcf | (582) | 302 | (161) |
Extensions and discoveries | Bcf | 1,005 | 1,538 | 372 |
Purchase of reserves in place | Bcf | 16 | 6 | 94 |
Sale of reserves in place | Bcf | (16) | (73) | (106) |
Production | Bcf | (366) | (389) | (366) |
End of year | Bcf | 4,090 | 4,033 | 2,650 |
Developed | Bcf | 2,276 | 2,490 | 1,740 |
Undeveloped | Bcf | 1,814 | 1,543 | 910 |
Supplementary Oil and Gas Inf_5
Supplementary Oil and Gas Information (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) MMBbls | Dec. 31, 2021 USD ($) MMBbls | Dec. 31, 2020 MMBbls | |
Reserve Quantities [Line Items] | |||
Proved Developed and Undeveloped Reserves, Net, Period Increase (Decrease) | 15.4 | 265.7 | (196.3) |
Proved Developed and Undeveloped Reserves, Production | 186.2 | 194.9 | 199 |
Revisions of previous estimates | (189.2) | (67.8) | (364.9) |
Extensions and discoveries | 370.6 | 591.2 | 377.5 |
Purchase of reserves in place | 45.9 | 7.3 | 54.3 |
Sale of reserves in place | 25.7 | 70.2 | 64.1 |
Capitalized Costs of Unproved Properties Excluded from Amortization, Cumulative | $ | $ 1,172 | $ 1,944 | |
Permian Assets [Member] | Minimum [Member] | |||
Reserve Quantities [Line Items] | |||
Anticipated Timing of Inclusion of Costs In Amortization base, In Years | 1 year | ||
Permian Assets [Member] | Maximum [Member] | |||
Reserve Quantities [Line Items] | |||
Anticipated Timing of Inclusion of Costs In Amortization base, In Years | 2 years | ||
Infill Drilling Locations [Member] | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | 4.4 | 23.2 | 2.4 |
Proved Developed [Member] | |||
Reserve Quantities [Line Items] | |||
Sale of reserves in place | 25.7 | 70.2 | 64.1 |
Performance Revisions [Member] | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | 160.6 | ||
Performance and Development Strategy [Member] | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | 182 | ||
Change Due to Change in Approved Development Plan [Member] | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | (142.5) | (396.1) | (382.2) |
Change Due To Changes In Prices [Member] | Oil and NGLs [Member] | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | (49.6) | 144.5 | (167.1) |
Change Due To Changes In Other Than Prices [Member] | |||
Reserve Quantities [Line Items] | |||
Revisions of previous estimates | (1.5) |
Supplementary Oil and Gas Inf_6
Supplementary Oil and Gas Information (Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves-Before Discounting) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Future Cash Inflows | $ 103,716 | $ 69,785 | $ 33,249 | |
Production costs | 25,216 | 19,951 | 13,066 | |
Development costs | 11,093 | 7,828 | 8,046 | |
Income taxes | 13,515 | 7,175 | 74 | |
Future Net Cash Flows | 53,892 | 34,831 | 12,063 | |
Less 10% annual discount for estimated timing of cash flows | 26,393 | 16,056 | 6,141 | |
Discounted Future Net Cash Flows | 27,499 | 18,775 | 5,922 | $ 11,616 |
United States [Member] | ||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Future Cash Inflows | 74,567 | 51,473 | 26,093 | |
Production costs | 17,043 | 12,272 | 8,864 | |
Development costs | 8,951 | 5,767 | 6,187 | |
Income taxes | 9,333 | 5,480 | 74 | |
Future Net Cash Flows | 39,240 | 27,954 | 10,968 | |
Less 10% annual discount for estimated timing of cash flows | 20,272 | 13,663 | 5,895 | |
Discounted Future Net Cash Flows | 18,968 | 14,291 | 5,073 | 10,041 |
Canada [Member] | ||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Future Cash Inflows | 29,149 | 18,312 | 7,156 | |
Production costs | 8,173 | 7,679 | 4,202 | |
Development costs | 2,142 | 2,061 | 1,859 | |
Income taxes | 4,182 | 1,695 | 0 | |
Future Net Cash Flows | 14,652 | 6,877 | 1,095 | |
Less 10% annual discount for estimated timing of cash flows | 6,121 | 2,393 | 246 | |
Discounted Future Net Cash Flows | $ 8,531 | $ 4,484 | $ 849 | $ 1,575 |
Supplementary Oil and Gas Inf_7
Supplementary Oil and Gas Information (Changes in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||
Balance, Beginning of Year | $ 18,775 | $ 5,922 | $ 11,616 |
Sales of oil and gas produced during the year | (7,340) | (5,087) | (2,010) |
Discoveries and extensions, net of related costs | 5,370 | 5,221 | 1,220 |
Purchases of proved reserves in place | 719 | 76 | 142 |
Sales and transfers of proved reserves in place | (306) | (237) | (352) |
Net change in prices and production costs | 14,591 | 13,968 | (8,682) |
Revisions to quantity estimates | (1,673) | (206) | (2,534) |
Accretion of discount | 2,175 | 593 | 1,222 |
Development costs incurred during the year | 1,814 | 1,536 | 1,876 |
Changes in estimated future development costs | (3,268) | (42) | 2,835 |
Other | (2) | 1 | (2) |
Net change in income taxes | (3,356) | (2,970) | 591 |
Balance, End of Year | 27,499 | 18,775 | 5,922 |
United States [Member] | |||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||
Balance, Beginning of Year | 14,291 | 5,073 | 10,041 |
Sales of oil and gas produced during the year | (5,007) | (3,608) | (1,605) |
Discoveries and extensions, net of related costs | 2,735 | 3,102 | 1,080 |
Purchases of proved reserves in place | 661 | 63 | 98 |
Sales and transfers of proved reserves in place | (278) | (199) | (255) |
Net change in prices and production costs | 9,059 | 10,702 | (7,119) |
Revisions to quantity estimates | (712) | (407) | (2,346) |
Accretion of discount | 1,630 | 508 | 1,064 |
Development costs incurred during the year | 1,475 | 1,139 | 1,341 |
Changes in estimated future development costs | (2,965) | (83) | 2,183 |
Other | (2) | 1 | 0 |
Net change in income taxes | (1,919) | (2,000) | 591 |
Balance, End of Year | 18,968 | 14,291 | 5,073 |
Canada [Member] | |||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||
Balance, Beginning of Year | 4,484 | 849 | 1,575 |
Sales of oil and gas produced during the year | (2,333) | (1,479) | (405) |
Discoveries and extensions, net of related costs | 2,635 | 2,119 | 140 |
Purchases of proved reserves in place | 58 | 13 | 44 |
Sales and transfers of proved reserves in place | (28) | (38) | (97) |
Net change in prices and production costs | 5,532 | 3,266 | (1,563) |
Revisions to quantity estimates | (961) | 201 | (188) |
Accretion of discount | 545 | 85 | 158 |
Development costs incurred during the year | 339 | 397 | 535 |
Changes in estimated future development costs | (303) | 41 | 652 |
Other | 0 | 0 | (2) |
Net change in income taxes | (1,437) | (970) | 0 |
Balance, End of Year | $ 8,531 | $ 4,484 | $ 849 |
Supplementary Oil and Gas Inf_8
Supplementary Oil and Gas Information (Results of Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||||
Oil, NGL and Natural Gas Revenues | [1] | $ 10,156 | $ 7,425 | $ 4,050 |
Production, mineral and other taxes | 415 | 293 | 173 | |
Transportation and processing | 1,628 | 1,444 | 1,282 | |
Operating | 773 | 601 | 585 | |
Depreciation, depletion and amortization | 1,096 | 1,169 | 1,805 | |
Impairments | 0 | 0 | 5,580 | |
Accretion of asset retirement obligation | 18 | 22 | 29 | |
Operating Income (Loss) | 6,226 | 3,896 | (5,404) | |
Income Taxes | 1,451 | 945 | (1,318) | |
Results of Operations | 4,775 | 2,951 | (4,086) | |
United States [Member] | ||||
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||||
Oil, NGL and Natural Gas Revenues | [1] | 6,680 | 4,883 | 2,701 |
Production, mineral and other taxes | 401 | 278 | 158 | |
Transportation and processing | 626 | 507 | 453 | |
Operating | 646 | 490 | 485 | |
Depreciation, depletion and amortization | 861 | 837 | 1,378 | |
Impairments | 0 | 0 | 5,580 | |
Accretion of asset retirement obligation | 8 | 11 | 13 | |
Operating Income (Loss) | 4,138 | 2,760 | (5,366) | |
Income Taxes | 952 | 673 | (1,309) | |
Results of Operations | 3,186 | 2,087 | (4,057) | |
Canada [Member] | ||||
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||||
Oil, NGL and Natural Gas Revenues | [1] | 3,476 | 2,542 | 1,349 |
Production, mineral and other taxes | 14 | 15 | 15 | |
Transportation and processing | 1,002 | 937 | 829 | |
Operating | 127 | 111 | 100 | |
Depreciation, depletion and amortization | 235 | 332 | 427 | |
Impairments | 0 | 0 | 0 | |
Accretion of asset retirement obligation | 10 | 11 | 16 | |
Operating Income (Loss) | 2,088 | 1,136 | (38) | |
Income Taxes | 499 | 272 | (9) | |
Results of Operations | $ 1,589 | $ 864 | $ (29) | |
[1]Excludes gains (losses) on risk management. |
Supplementary Oil and Gas Inf_9
Supplementary Oil and Gas Information (Capitalized Costs) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | |||
Proved Oil and Gas Properties | $ 57,054 | $ 55,475 | $ 53,883 |
Unproved Oil and Gas Properties | 1,172 | 1,944 | 2,962 |
Total Capital Cost | 58,226 | 57,419 | 56,845 |
Accumulated DD&A | 48,967 | 48,868 | 47,637 |
Net Capitalized Costs | 9,259 | 8,551 | 9,208 |
United States [Member] | |||
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | |||
Proved Oil and Gas Properties | 41,382 | 39,145 | 37,875 |
Unproved Oil and Gas Properties | 1,127 | 1,884 | 2,785 |
Total Capital Cost | 42,509 | 41,029 | 40,660 |
Accumulated DD&A | 34,280 | 33,418 | 32,581 |
Net Capitalized Costs | 8,229 | 7,611 | 8,079 |
Canada [Member] | |||
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | |||
Proved Oil and Gas Properties | 15,672 | 16,330 | 16,008 |
Unproved Oil and Gas Properties | 45 | 60 | 177 |
Total Capital Cost | 15,717 | 16,390 | 16,185 |
Accumulated DD&A | 14,687 | 15,450 | 15,056 |
Net Capitalized Costs | $ 1,030 | $ 940 | $ 1,129 |
Supplementary Oil and Gas In_10
Supplementary Oil and Gas Information (Costs Incurred) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Costs Incurred (Line Items) | |||
Unproved oil and gas properties | $ 154 | $ 2 | $ 16 |
Proved | 132 | 9 | 3 |
Total Acquisition Costs | 286 | 11 | 19 |
Exploration Costs | 12 | 15 | 12 |
Development Costs | 1,906 | 1,536 | 1,705 |
Total Costs Incurred | 2,204 | 1,562 | 1,736 |
United States [Member] | |||
Costs Incurred (Line Items) | |||
Unproved oil and gas properties | 154 | 2 | 16 |
Proved | 123 | 9 | 3 |
Total Acquisition Costs | 277 | 11 | 19 |
Exploration Costs | 5 | 10 | 12 |
Development Costs | 1,530 | 1,148 | 1,352 |
Total Costs Incurred | 1,812 | 1,169 | 1,383 |
Canada [Member] | |||
Costs Incurred (Line Items) | |||
Unproved oil and gas properties | 0 | 0 | 0 |
Proved | 9 | 0 | 0 |
Total Acquisition Costs | 9 | 0 | 0 |
Exploration Costs | 7 | 5 | 0 |
Development Costs | 376 | 388 | 353 |
Total Costs Incurred | $ 392 | $ 393 | $ 353 |
Supplementary Oil and Gas In_11
Supplementary Oil and Gas Information (Costs Not Subject to Depletion or Amortization) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Capitalized Costs of Unproved Properties Excluded from Amortization, Cumulative | $ 1,172 | $ 1,944 |
United States [Member] | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Capitalized Costs of Unproved Properties Excluded from Amortization, Cumulative | 1,127 | 1,884 |
Canada [Member] | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Capitalized Costs of Unproved Properties Excluded from Amortization, Cumulative | $ 45 | $ 60 |
Supplementary Oil and Gas In_12
Supplementary Oil and Gas Information (Costs Related to Unproved Properties) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Acquisition Costs, Cumulative | $ 1,072 | |
Exploration Costs, Cumulative | 100 | |
Capitalized Costs of Unproved Properties Excluded from Amortization, Cumulative, Total | 1,172 | $ 1,944 |
Current Year [Member] | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Acquisition Costs, Cumulative | 154 | |
Exploration Costs, Cumulative | 5 | |
Capitalized Costs of Unproved Properties Excluded from Amortization, Cumulative, Total | 159 | |
Prior Year [Member] | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Acquisition Costs, Cumulative | 2 | |
Exploration Costs, Cumulative | 11 | |
Capitalized Costs of Unproved Properties Excluded from Amortization, Cumulative, Total | 13 | |
Second Prior Year [Member] | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Acquisition Costs, Cumulative | 22 | |
Exploration Costs, Cumulative | 7 | |
Capitalized Costs of Unproved Properties Excluded from Amortization, Cumulative, Total | 29 | |
Third Prior Year and Previous [Member] | ||
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ||
Acquisition Costs, Cumulative | 894 | |
Exploration Costs, Cumulative | 77 | |
Capitalized Costs of Unproved Properties Excluded from Amortization, Cumulative, Total | $ 971 |