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(a) Amounts from related parties included in revenues.2,999 3,553 8,674 10,245 
(b) Amounts to related parties included in purchases of crude oil and products.1,199 1,228 3,022 3,270 
(c) Amounts to related parties included in production and manufacturing, and selling
and general expenses.		121 121 406 381 
(d) Amounts to related parties included in financing.40 44 127 124 
Accounts receivable - net included net amounts receivable from related parties.$820 1,048
Investments and long-term receivables included amounts from related parties.267283
Long-term debt included amounts to related parties.3,4473,447
Number of common shares authorized (millions).1,1001,100
Number of common shares outstanding (millions).523536
(b) Includes contributions to registered pension plans.(37)(43)(112)(129)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2024
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___ to ___
Commission file number 0-12014
IMPERIAL OIL LIMITED
(Exact name of registrant as specified in its charter)
Canada 98-0017682
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
505 Quarry Park Boulevard S.E. Calgary, Alberta, Canada
 T2C 5N1
(Address of principal executive offices) (Postal Code)
1-800-567-3776
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol
Name of each exchange on
which registered
NoneNone
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act of 1934.
Large accelerated filer
☑
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act of 1934). Yes ☐ No ☑

The number of common shares outstanding, as of September 30, 2024 was 523,402,540.


IMPERIAL OIL LIMITED
Table of contents
Page
PART I. FINANCIAL INFORMATION
Item 1. Financial statements
Consolidated statement of income
Consolidated statement of comprehensive income
Consolidated balance sheet
Consolidated statement of shareholders’ equity
Consolidated statement of cash flows
Notes to consolidated financial statements
Item 2. Management’s discussion and analysis of financial condition and results of operations
Item 3. Quantitative and qualitative disclosures about market risk
Item 4. Controls and procedures
PART II. OTHER INFORMATION
Item 1. Legal proceedings
Item 2. Unregistered sales of equity securities and use of proceeds
Item 5. Other information
Item 6. Exhibits
SIGNATURES
In this report, all dollar amounts are expressed in Canadian dollars unless otherwise stated. This report should be read in conjunction with the company’s annual report on Form 10-K for the year ended December 31, 2023. Note that numbers may not add due to rounding.
The term “project” as used in this report can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.
In this report, unless the context otherwise indicates, reference to “the company” or “Imperial” includes Imperial Oil Limited and its subsidiaries.
2

IMPERIAL OIL LIMITED
PART I. FINANCIAL INFORMATION
Item 1. Financial statements
Consolidated statement of income (U.S. GAAP, unaudited)
 
       Third Quarter
       Nine Months
       to September 30
millions of Canadian dollars2024 2023 2024 2023 
Revenues and other income  
Revenues (a)
13,215 13,873 38,812 37,694 
Investment and other income (note 3)
44 47 113 166 
Total revenues and other income13,259 13,920 38,925 37,860 
 
Expenses  
Exploration1 1 3 3 
Purchases of crude oil and products (b)
8,734 8,748 25,296 24,082 
Production and manufacturing (c)
1,517 1,666 4,870 5,207 
Selling and general (c)
223 237 690 629 
Federal excise tax and fuel charge661 654 1,908 1,781 
Depreciation and depletion508 475 1,454 1,418 
Non-service pension and postretirement benefit1 20 3 60 
Financing (d) (note 5)
11 19 37 51 
Total expenses11,656 11,820 34,261 33,231 
 
Income (loss) before income taxes1,603 2,100 4,664 4,629 
Income taxes366 499 1,099 1,105 
Net income (loss)1,237 1,601 3,565 3,524 
Per share information (Canadian dollars)
 
Net income (loss) per common share - basic (note 9)
2.33 2.77 6.67 6.05 
Net income (loss) per common share - diluted (note 9)
2.33 2.76 6.66 6.04 
(a) Amounts from related parties included in revenues.2,999 3,553 8,674 10,245 
(b) Amounts to related parties included in purchases of crude oil and products.1,199 1,228 3,022 3,270 
(c) Amounts to related parties included in production and manufacturing, and selling
 and general expenses.
121 121 406 381 
(d) Amounts to related parties included in financing.40 44 127 124 
The information in the notes to consolidated financial statements is an integral part of these statements.

3

IMPERIAL OIL LIMITED
Consolidated statement of comprehensive income (U.S. GAAP, unaudited)
 
       Third Quarter
       Nine Months
       to September 30
millions of Canadian dollars2024 2023 2024 2023 
Net income (loss)1,237 1,601 3,565 3,524 
Other comprehensive income (loss), net of income taxes  
Postretirement benefits liability adjustment (excluding amortization)— — 4 21 
Amortization of postretirement benefits liability adjustment
       included in net benefit costs
13 9 38 29 
Total other comprehensive income (loss)13 9 42 50 
Comprehensive income (loss)1,250 1,610 3,607 3,574 
The information in the notes to consolidated financial statements is an integral part of these statements.
4

IMPERIAL OIL LIMITED
Consolidated balance sheet (U.S. GAAP, unaudited)
As at
Sep 30
As at
Dec 31
millions of Canadian dollars
2024
2023
Assets  
Current assets  
Cash and cash equivalents1,490 864 
Accounts receivable - net (a)
5,524 4,482 
Inventories of crude oil and products1,415 1,944 
Materials, supplies and prepaid expenses978 1,008 
Total current assets9,407 8,298 
Investments and long-term receivables (b)
1,072 1,062 
Property, plant and equipment,57,614 56,200 
less accumulated depreciation and depletion(26,789)(25,365)
Property, plant and equipment - net
30,825 30,835 
Goodwill166 166 
Other assets, including intangibles - net1,059 838 
Total assets42,529 41,199 
Liabilities  
Current liabilities  
Notes and loans payable118 121 
Accounts payable and accrued liabilities (a) (note 7)
6,353 6,231 
Income taxes payable45 251 
Total current liabilities6,516 6,603 
Long-term debt (c) (note 6)
3,997 4,011 
Other long-term obligations (note 7)
3,977 3,851 
Deferred income tax liabilities4,400 4,512 
Total liabilities18,890 18,977 
Shareholders’ equity  
Common shares at stated value (d) (note 9)
969 992 
Earnings reinvested23,305 21,907 
Accumulated other comprehensive income (loss) (note 10)
(635)(677)
Total shareholders’ equity23,639 22,222 
 
Total liabilities and shareholders’ equity42,529 41,199 
(a)Accounts receivable - net included net amounts receivable from related parties.820 1,048 
(b)Investments and long-term receivables included amounts from related parties.267 283 
(c)Long-term debt included amounts to related parties.3,447 3,447 
(d)Number of common shares authorized (millions).1,100 1,100 
Number of common shares outstanding (millions).523 536 
The information in the notes to consolidated financial statements is an integral part of these statements.

5

IMPERIAL OIL LIMITED
Consolidated statement of shareholders’ equity (U.S. GAAP, unaudited)
 
       Third Quarter
       Nine Months
       to September 30
millions of Canadian dollars2024 2023 2024 2023 
Common shares at stated value (note 9)
  
At beginning of period992 1,079 992 1,079 
Share purchases at stated value(23)(32)(23)(32)
At end of period969 1,047 969 1,047 
Earnings reinvested
At beginning of period23,592 23,220 21,907 21,846 
Net income (loss) for the period1,237 1,601 3,565 3,524 
Share purchases in excess of stated value(1,207)(1,310)(1,207)(1,310)
Dividends declared(317)(288)(960)(837)
At end of period23,305 23,223 23,305 23,223 
 
Accumulated other comprehensive income (loss) (note 10)
  
At beginning of period(648)(471)(677)(512)
Other comprehensive income (loss)13 9 42 50 
At end of period(635)(462)(635)(462)
Shareholders’ equity at end of period23,639 23,808 23,639 23,808 
The information in the notes to consolidated financial statements is an integral part of these statements.

6

IMPERIAL OIL LIMITED
Consolidated statement of cash flows (U.S. GAAP, unaudited)
       Third Quarter
       Nine Months
       to September 30
millions of Canadian dollars2024 2023 2024 2023 
Operating activities  
Net income (loss)1,237 1,601 3,565 3,524 
Adjustments for non-cash items:
Depreciation and depletion508 475 1,454 1,418 
(Gain) loss on asset sales (note 3)
(2)3 (5)(19)
Deferred income taxes and other53 (168)(186)(239)
Changes in operating assets and liabilities:  
Accounts receivable548 (805)(1,040)(671)
Inventories, materials, supplies and prepaid expenses502 (330)552 (389)
Income taxes payable(47)234 (208)(2,164)
Accounts payable and accrued liabilities(1,313)1,314 62 1,011 
All other items - net (b)
1 35 (2)(48)
Cash flows from (used in) operating activities1,487 2,359 4,192 2,423 
 
Investing activities  
Additions to property, plant and equipment(486)(387)(1,444)(1,315)
Proceeds from asset sales (note 3)
— 6 7 29 
Loans to equity companies - net2 1 16 3 
Cash flows from (used in) investing activities(484)(380)(1,421)(1,283)
Financing activities  
Finance lease obligations - reduction (note 6)
(5)(5)(18)(16)
Dividends paid(322)(292)(921)(815)
Common shares purchased (note 9)
(1,206)(1,342)(1,206)(1,342)
Cash flows from (used in) financing activities(1,533)(1,639)(2,145)(2,173)
 
Increase (decrease) in cash and cash equivalents(530)340 626 (1,033)
Cash and cash equivalents at beginning of period2,020 2,376 864 3,749 
Cash and cash equivalents at end of period (a)
1,490 2,716 1,490 2,716 
(a) Cash equivalents are all highly liquid securities with maturity of three months or less.
(b) Includes contributions to registered pension plans.(37)(43)(112)(129)
 
Income taxes (paid) refunded.(423)(438)(1,557)(3,627)
Interest (paid), net of capitalization.(11)(15)(37)(52)
The information in the notes to consolidated financial statements is an integral part of these statements.
7

IMPERIAL OIL LIMITED
Notes to consolidated financial statements (unaudited)
1.    Basis of financial statement preparation
These unaudited consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (GAAP) and follow the same accounting policies and methods of computation as, and should be read in conjunction with, the most recent annual consolidated financial statements filed with the U.S. Securities and Exchange Commission (SEC) in the company’s 2023 annual report on Form 10-K. In the opinion of the company, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein. All such adjustments are of a normal recurring nature.
The company’s exploration and production activities are accounted for under the “successful efforts” method.
The results for the nine months ended September 30, 2024, are not necessarily indicative of the operations to be expected for the full year.
All amounts are in Canadian dollars unless otherwise indicated.
8

IMPERIAL OIL LIMITED
2.    Business segments
Third Quarter
      Upstream
      Downstream (d)
       Chemical (d)
millions of Canadian dollars202420232024202320242023
Revenues and other income
Revenues (a) (b)
24 43 12,997 13,540 194 290 
Intersegment sales
4,583 4,768 1,562 1,560 60 92 
Investment and other income (note 3)
2 (4)11 12 1 — 
 4,609 4,807 14,570 15,112 255 382 
Expenses      
Exploration1 1 — — — — 
Purchases of crude oil and products
1,766 1,852 13,014 13,061 157 254 
Production and manufacturing1,050 1,187 423 405 36 74 
Selling and general— — 170 177 22 21 
Federal excise tax and fuel charge— — 660 653 1 1 
Depreciation and depletion447 418 48 46 3 2 
Non-service pension and postretirement benefit— — — — — — 
Financing (note 5)
2 3 — — — — 
Total expenses3,266 3,461 14,315 14,342 219 352 
Income (loss) before income taxes1,343 1,346 255 770 36 30 
Income tax expense (benefit)316 318 50 184 8 7 
Net income (loss)
1,027 1,028 205 586 28 23 
Cash flows from (used in) operating activities
1,298 1,771 164 378 49 74 
Capital and exploration expenditures (c)
300 244 133 103 3 2 
Third Quarter
Corporate and other
      Eliminations
       Consolidated
millions of Canadian dollars202420232024202320242023
Revenues and other income
Revenues (a) (b)
— — — — 13,215 13,873 
Intersegment sales
— — (6,205)(6,420)— — 
Investment and other income (note 3)
30 39 — — 44 47 
 30 39 (6,205)(6,420)13,259 13,920 
Expenses      
Exploration— — — — 1 1 
Purchases of crude oil and products
— — (6,203)(6,419)8,734 8,748 
Production and manufacturing8 — — — 1,517 1,666 
Selling and general33 40 (2)(1)223 237 
Federal excise tax and fuel charge— — — — 661 654 
Depreciation and depletion10 9 — — 508 475 
Non-service pension and postretirement benefit1 20 — — 1 20 
Financing (note 5)
9 16 — — 11 19 
Total expenses61 85 (6,205)(6,420)11,656 11,820 
Income (loss) before income taxes(31)(46)— — 1,603 2,100 
Income tax expense (benefit)(8)(10)— — 366 499 
Net income (loss)
(23)(36)— — 1,237 1,601 
Cash flows from (used in) operating activities
(24)136 — — 1,487 2,359 
Capital and exploration expenditures (c)
50 38 — — 486 387 

9

IMPERIAL OIL LIMITED
(a)Includes export sales to the United States of $2,631 million (2023 - $2,180 million).
(b)Revenues include both revenue within the scope of ASC 606 and outside the scope of ASC 606. Trade receivables in "Accounts receivable – net" reported on the Consolidated balance sheet include both receivables within the scope of ASC 606 and outside the scope of ASC 606. Revenue and receivables outside the scope of ASC 606 primarily relate to physically settled commodity contracts accounted for as derivatives. Contractual terms, credit quality and type of customer are generally similar between contracts within the scope of ASC 606 and those outside it.
Revenues
        Third Quarter
millions of Canadian dollars2024 2023 
Revenue from contracts with customers10,404 12,271 
Revenue outside the scope of ASC 606
2,811 1,602 
Total13,215 13,873 
(c)Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions and the company’s share of similar costs for equity companies. CAPEX excludes the purchase of carbon emission credits.
(d)In the third quarter of 2024, benzene and aromatic solvents are reported under the Downstream segment, whereas in the third quarter of 2023, they were reported under the Chemicals segment. The company has determined that the impact of this change is not material; therefore, the comparative period has not been recast.

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IMPERIAL OIL LIMITED
Nine Months to September 30
        Upstream
       Downstream (d)
        Chemical (d)
millions of Canadian dollars202420232024202320242023
Revenues and other income
Revenues (a) (b)
95 180 37,862 36,534 855 980 
Intersegment sales
13,227 11,909 4,949 4,748 235 272 
Investment and other income (note 3)
7 8 32 47 2 — 
13,329 12,097 42,843 41,329 1,092 1,252 
Expenses
Exploration3 3 — — — — 
Purchases of crude oil and products
5,479 4,827 37,549 35,390 673 791 
Production and manufacturing3,441 3,730 1,279 1,291 137 186 
Selling and general— — 503 494 71 69 
Federal excise tax and fuel charge— — 1,905 1,778 3 3 
Depreciation and depletion1,275 1,250 139 135 11 10 
Non-service pension and postretirement benefit— — — — — — 
Financing (note 5)
4 3 — — — — 
Total expenses10,202 9,813 41,375 39,088 895 1,059 
Income (loss) before income taxes3,127 2,284 1,468 2,241 197 193 
Income tax expense (benefit)743 542 338 535 47 46 
Net income (loss)
2,384 1,742 1,130 1,706 150 147 
Cash flows from (used in) operating activities
3,351 1,946 555 187 120 97 
Capital and exploration expenditures (c)
857 868 435 329 11 11 
Total assets as at September 30
28,186 28,356 11,104 10,912 452 441 
Nine Months to September 30
Corporate and other
      Eliminations
       Consolidated
millions of Canadian dollars202420232024202320242023
Revenues and other income
Revenues (a) (b)
— — — — 38,812 37,694 
Intersegment sales
— — (18,411)(16,929)— — 
Investment and other income (note 3)
72 111 — — 113 166 
72 111 (18,411)(16,929)38,925 37,860 
Expenses
Exploration— — — — 3 3 
Purchases of crude oil and products
— — (18,405)(16,926)25,296 24,082 
Production and manufacturing13 — — — 4,870 5,207 
Selling and general122 69 (6)(3)690 629 
Federal excise tax and fuel charge— — — — 1,908 1,781 
Depreciation and depletion29 23 — — 1,454 1,418 
Non-service pension and postretirement benefit3 60 — — 3 60 
Financing (note 5)
33 48 — — 37 51 
Total expenses200 200 (18,411)(16,929)34,261 33,231 
Income (loss) before income taxes(128)(89)— — 4,664 4,629 
Income tax expense (benefit)(29)(18)— — 1,099 1,105 
Net income (loss)
(99)(71)— — 3,565 3,524 
Cash flows from (used in) operating activities
166 193 — — 4,192 2,423 
Capital and exploration expenditures (c)
141 101 — — 1,444 1,309 
Total assets as at September 30
2,942 4,346 (155)(469)42,529 43,586 
11

IMPERIAL OIL LIMITED
(a)Includes export sales to the United States of $7,641 million (2023 - $6,589 million).
(b)Revenues include both revenue within the scope of ASC 606 and outside the scope of ASC 606. Trade receivables in "Accounts receivable – net" reported on the Consolidated balance sheet include both receivables within the scope of ASC 606 and outside the scope of ASC 606. Revenue and receivables outside the scope of ASC 606 primarily relate to physically settled commodity contracts accounted for as derivatives. Contractual terms, credit quality and type of customer are generally similar between contracts within the scope of ASC 606 and those outside it.
Revenues
       Nine Months
       to September 30
millions of Canadian dollars2024 2023 
Revenue from contracts with customers30,915 33,713 
Revenue outside the scope of ASC 606
7,897 3,981 
Total38,812 37,694 
(c)Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions and the company’s share of similar costs for equity companies. CAPEX excludes the purchase of carbon emission credits.
(d)In 2024, benzene and aromatic solvents are reported under the Downstream segment, whereas in 2023, they were reported under the Chemicals segment. The company has determined that the impact of this change is not material; therefore, the comparative period has not been recast.
12

IMPERIAL OIL LIMITED
3.    Investment and other income
Investment and other income included gains and losses on asset sales as follows:
       Third Quarter
       Nine Months
       to September 30
millions of Canadian dollars2024 2023 2024 2023 
Proceeds from asset sales— 6 7 29 
Book value of asset sales(2)9 2 10 
Gain (loss) on asset sales, before tax
2 (3)5 19 
Gain (loss) on asset sales, after tax
2 (2)5 16 
4.    Employee retirement benefits
The components of net benefit cost were as follows:
 
       Third Quarter
       Nine Months
       to September 30
millions of Canadian dollars2024 2023 2024 2023 
Pension benefits:
Service cost47 41 139 122 
Interest cost91 94 274 280 
Expected return on plan assets(113)(94)(340)(280)
Amortization of prior service cost7 5 21 13 
Amortization of actuarial loss (gain)11 10 35 32 
Net benefit cost43 56 129 167 
Other postretirement benefits:   
Service cost3 3 10 9 
Interest cost7 7 19 21 
Amortization of actuarial loss (gain)(2)(2)(6)(6)
Net benefit cost8 8 23 24 
5.    Financing costs
       Third Quarter
       Nine Months
       to September 30
millions of Canadian dollars2024 2023 2024 2023 
Debt-related interest
48 53 152 148 
Capitalized interest
(39)(37)(119)(100)
Net interest expense
9 16 33 48 
Other interest
2 3 4 3 
Total financing
11 19 37 51 


13

IMPERIAL OIL LIMITED
6.    Long-term debt
As at
Sep 30
As at
Dec 31
millions of Canadian dollars2024 2023 
Long-term debt
3,447 3,447 
Finance leases
550 564 
Total long-term debt3,997 4,011 
As previously communicated, in June 2024, the company extended the maturity date of its existing long-term, variable-rate, Canadian dollar loan from ExxonMobil to June 30, 2035. All other terms and conditions remain unchanged.
7.    Other long-term obligations
 
As at
Sep 30
As at
Dec 31
millions of Canadian dollars2024 2023 
Employee retirement benefits (a)
934 954 
Asset retirement obligations and other environmental liabilities (b)
2,604 2,564 
Share-based incentive compensation liabilities
165 90 
Operating lease liability (c)
149 111 
Other obligations
125 132 
Total other long-term obligations3,977 3,851 
(a)Total recorded employee retirement benefits obligations also included $62 million in current liabilities (2023 - $62 million).
(b)Total asset retirement obligations and other environmental liabilities also included $221 million in current liabilities (2023 - $235 million).
(c)Total operating lease liability also included $98 million in current liabilities (2023 - $87 million). In addition to the total operating lease liability, undiscounted commitments for leases not yet commenced totalled $58 million (2023 - $54 million).


14

IMPERIAL OIL LIMITED
8.    Financial and derivative instruments
Financial instruments
The fair value of the company’s financial instruments is determined by reference to various market data and other appropriate valuation techniques. There are no material differences between the fair value of the company’s financial instruments and the recorded carrying value. At September 30, 2024 and December 31, 2023, the fair value of long-term debt ($3,447 million, excluding finance lease obligations) was primarily a level 2 measurement.
Derivative instruments
The company’s size, strong capital structure and the complementary nature of its business segments reduce the company’s enterprise-wide risk from changes in commodity prices, currency rates and interest rates. In addition, the company uses commodity-based contracts, including derivatives, to manage commodity price risk and to generate returns from trading. Commodity contracts held for trading purposes are presented in the Consolidated statement of income on a net basis in the line "Revenues" and in the Consolidated statement of cash flows in "Cash flows from (used in) operating activities". The company’s commodity derivatives are not accounted for under hedge accounting.
Credit risk associated with the company’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties. The company maintains a system of controls that includes the authorization, reporting and monitoring of derivative activity.
The net notional long/(short) position of derivative instruments was:
 
As at
Sep 30
As at Dec 31
thousands of barrels20242023
Crude5,243 (4,450)
Products(418)(490)
Realized and unrealized gain/(loss) on derivative instruments recognized in the Consolidated statement of income is included in the following lines on a before-tax basis:
 
      Third Quarter
   Nine Months
       to September 30
millions of Canadian dollars2024 2023 2024 2023 
Revenues(34)6 (47)(7)


15

IMPERIAL OIL LIMITED
The estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement, were as follows:
At September 30, 2024
millions of Canadian dollars
Fair valueEffect of
counterparty
netting		Effect of
collateral
netting 		Net
carrying
value
Level 1Level 2Level 3Total
Assets
Derivative assets (a)
87 17 — 104 (86)(1)17 
Liabilities
Derivative liabilities (b)
86 37 — 123 (86)— 37 
(a)Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”, “Accounts receivable - net” and “Other assets, including intangibles - net”.
(b)Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities” and “Other long-term obligations”.
At December 31, 2023
millions of Canadian dollars
Fair valueEffect of
counterparty
netting		Effect of
collateral
netting		Net
carrying
value
Level 1Level 2Level 3Total
Assets
Derivative assets (a)
28 18 — 46 (16)(12)18 
Liabilities
Derivative liabilities (b)
16 31 — 47 (16)— 31 
(a)Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”, “Accounts receivable - net” and “Other assets, including intangibles - net”.
(b)Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities” and “Other long-term obligations”.
At September 30, 2024 and December 31, 2023, the company had $25 million and $24 million, respectively, of collateral under a master netting arrangement not offset against the derivatives on the Consolidated balance sheet in “Accounts receivable - net”, primarily related to initial margin requirements.
16

IMPERIAL OIL LIMITED
9.    Common shares
As at
Sep 30
As at
Dec 31
thousands of shares20242023
Authorized1,100,000 1,100,000 
Outstanding523,403 535,837 
The current 12-month normal course issuer bid program came into effect June 29, 2024 under which Imperial has continued its existing share purchase program. The program enables the company to purchase up to a maximum of 26,791,840 common shares (5 percent of the total shares on June 15, 2024) which includes shares purchased under the normal course issuer bid from Exxon Mobil Corporation. As in the past, Exxon Mobil Corporation has advised the company that it intends to participate to maintain its ownership percentage at approximately 69.6 percent. Imperial plans to accelerate its share purchases under the normal course issuer bid program, and anticipates repurchasing all remaining allowable shares prior to year end. Purchase plans may be modified at any time without prior notice.
The excess of the purchase cost over the stated value of shares purchased has been recorded as a distribution of earnings reinvested.
The company’s common share activities are summarized below:
 Thousands of
 shares 		Millions of
 dollars
Balance as at December 31, 2022
584,153 1,079 
Purchases at stated value(48,316)(87)
Balance as at December 31, 2023
535,837 992 
Purchases at stated value(12,434)(23)
Balance as at September 30, 2024
523,403 969 
The following table provides the calculation of basic and diluted earnings per common share and the dividends declared by the company on its outstanding common shares:
 
      Third Quarter
       Nine Months
       to September 30
2024202320242023
Net income (loss) per common share – basic
Net income (loss) (millions of Canadian dollars)
1,2371,6013,5653,524
Weighted-average number of common shares outstanding (millions of shares)
530.6578.0534.1582.1
Net income (loss) per common share (dollars)
2.332.776.676.05
Net income (loss) per common share – diluted
Net income (loss) (millions of Canadian dollars)
1,2371,6013,5653,524
Weighted-average number of common shares outstanding (millions of shares)
530.6578.0534.1582.1
Effect of employee share-based awards (millions of shares)
1.31.31.21.2
Weighted-average number of common shares outstanding,
        assuming dilution (millions of shares)
531.9579.3535.3583.3
Net income (loss) per common share (dollars)
2.332.766.666.04
Dividends per common share – declared (dollars)
0.600.501.801.44
17

IMPERIAL OIL LIMITED
10. Other comprehensive income (loss) information

Changes in accumulated other comprehensive income (loss):

millions of Canadian dollars2024 2023 
Balance at January 1(677)(512)
Postretirement benefits liability adjustment:
Current period change excluding amounts reclassified
   from accumulated other comprehensive income
4 21 
Amounts reclassified from accumulated other comprehensive income38 29 
Balance at September 30(635)(462)

Amounts reclassified out of accumulated other comprehensive income (loss) – before-tax income (expense):
 
      Third Quarter
       Nine Months
       to September 30
millions of Canadian dollars2024 2023 2024 2023 
Amortization of postretirement benefits liability adjustment
       included in net benefit cost (a)
(16)(13)(50)(39)
(a) This accumulated other comprehensive income component is included in the computation of net benefit cost (note 4).

Income tax expense (credit) for components of other comprehensive income (loss):
      Third Quarter
       Nine Months
       to September 30
millions of Canadian dollars2024 2023 2024 2023 
Postretirement benefits liability adjustments:
Postretirement benefits liability adjustment (excluding amortization)1 — 1 7 
Amortization of postretirement benefits liability adjustment
       included in net benefit cost
3 4 12 10 
Total4 4 13 17 

18

IMPERIAL OIL LIMITED
Item 2. Management’s discussion and analysis of financial condition and results of operations
Non-GAAP financial measures and other specified financial measures
Certain measures included in this document are not prescribed by U.S. Generally Accepted Accounting Principles (GAAP). These measures constitute "non-GAAP financial measures" under Securities and Exchange Commission Regulation G and Item 10(e) of Regulation S-K, and "specified financial measures" under National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure of the Canadian Securities Administrators.

Reconciliation of these non-GAAP financial measures to the most comparable GAAP measure, and other information required by these regulations, have been provided. Non-GAAP financial measures and specified financial measures are not standardized financial measures under GAAP and do not have a standardized definition. As such, these measures may not be directly comparable to measures presented by other companies, and should not be considered a substitute for GAAP financial measures.
Net income (loss) excluding identified items
Net income (loss) excluding identified items is a non-GAAP financial measure that is total net income (loss) excluding individually significant non-operational events with an absolute corporate total earnings impact of at least $100 million in a given quarter. The net income (loss) impact of an identified item for an individual segment in a given quarter may be less than $100 million when the item impacts several segments or several periods. The most directly comparable financial measure that is disclosed in the financial statements is "Net income (loss)" within the company’s Consolidated statement of income. Management uses these figures to improve comparability of the underlying business across multiple periods by isolating and removing significant non-operational events from business results. The company believes this view provides investors increased transparency into business results and trends, and provides investors with a view of the business as seen through the eyes of management. Net income (loss) excluding identified items is not meant to be viewed in isolation or as a substitute for net income (loss) as prepared in accordance with U.S. GAAP. All identified items are presented on an after-tax basis.
Reconciliation of net income (loss) excluding identified items
There were no identified items in the third quarter or year-to-date 2024 and 2023 periods.
19

IMPERIAL OIL LIMITED
Recent business environment

During the third quarter, crude prices decreased versus the second quarter, reflecting uncertainty about future China demand and OPEC+ supply. The Canadian WTI/WCS spread remained stable in the third quarter and narrowed versus the 2023 full-year average. Industry refining margins declined versus the second quarter as increased supply outpaced global demand.
Operating results
Third quarter 2024 vs. third quarter 2023
 
        Third Quarter
millions of Canadian dollars, unless noted20242023
Net income (loss) (U.S. GAAP)
1,2371,601
Net income (loss) per common share, assuming dilution (dollars)
2.332.76
Upstream
Net income (loss) factor analysis
millions of Canadian dollars
78

Price – Average bitumen realizations decreased by $8.81 per barrel, primarily driven by lower marker prices. Synthetic crude oil realizations decreased by $8.57 per barrel, generally in line with WTI.

Volumes – Higher volumes were primarily at Cold Lake driven by Grand Rapids, and by production and steam cycle timing.

Royalty – Lower royalties were primarily driven by lower commodity prices, partially offset by higher volumes.

Other – Includes lower operating expenses of about $80 million, primarily due to lower energy prices.

Marker prices and average realizations
 
       Third Quarter
Canadian dollars, unless noted2024 2023 
West Texas Intermediate (US$ per barrel)
75.27 82.32 
Western Canada Select (US$ per barrel)
61.76 69.39 
WTI/WCS Spread (US$ per barrel)
13.51 12.93 
Bitumen (per barrel)
77.24 86.05 
Synthetic crude oil (per barrel)
104.41 112.98 
Average foreign exchange rate (US$)
0.73 0.75 
20

IMPERIAL OIL LIMITED
Production
 
       Third Quarter
thousands of barrels per day2024 2023 
Kearl (Imperial's share)
209 209 
Cold Lake
147 128 
Syncrude
81 75 
Kearl total gross production (thousands of barrels per day)
295 295 

Higher production at Cold Lake was primarily driven by Grand Rapids, and by production and steam cycle timing.
Downstream
Net income (loss) factor analysis
millions of Canadian dollars
81

Margins – Lower margins primarily reflect weaker market conditions.
Refinery utilization and petroleum product sales
 
       Third Quarter
thousands of barrels per day, unless noted2024 2023 
Refinery throughput389 416 
Refinery capacity utilization (percent)
90 96 
Petroleum product sales
487 478 

Refinery throughput in the third quarter of 2024 reflects the impact of turnaround activities at the Nanticoke and Strathcona refineries. Refinery throughput in the third quarter of 2023 reflected the impact of turnaround activity at the Sarnia refinery.
Chemicals
Net income (loss) factor analysis
millions of Canadian dollars
80
21

IMPERIAL OIL LIMITED
Corporate and other
 
       Third Quarter
millions of Canadian dollars2024 2023 
Net income (loss) (U.S. GAAP)
(23)(36)
Liquidity and capital resources
 
         Third Quarter
millions of Canadian dollars2024 2023 
Cash flows from (used in):  
Operating activities1,487 2,359 
Investing activities(484)(380)
Financing activities(1,533)(1,639)
Increase (decrease) in cash and cash equivalents(530)340 
Cash and cash equivalents at period end1,490 2,716 

Cash flows from operating activities primarily reflect unfavourable working capital impacts.

Cash flows used in investing activities primarily reflect higher additions to property, plant and equipment.

Cash flows used in financing activities primarily reflect:
 
       Third Quarter
millions of Canadian dollars, unless noted2024 2023 
Dividends paid
322 292 
Per share dividend paid (dollars)
0.60 0.50 
Share repurchases (a)
1,206 1,342 
  Number of shares purchased (millions) (a)
12.4 17.5 
(a)Share repurchases were made under and in connection with the company's normal course issuer bid program, and include shares purchased from Exxon Mobil Corporation.

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IMPERIAL OIL LIMITED
Nine months 2024 vs. nine months 2023
 
        Nine Months
millions of Canadian dollars, unless noted20242023
Net income (loss) (U.S. GAAP)
3,5653,524
Net income (loss) per common share, assuming dilution (dollars)
6.666.04
Upstream
Net income (loss) factor analysis
millions of Canadian dollars
79
Price – Average bitumen realizations increased by $6.90 per barrel, primarily driven by the narrowing WTI/WCS spread, lower diluent costs, and higher marker prices. Synthetic crude oil realizations decreased by $2.70 per barrel, primarily driven by a weaker Synthetic/WTI spread, partially offset by higher WTI.

Volumes – Higher volumes were primarily driven by improved mine fleet productivity and optimized turnaround at Kearl, as well as Grand Rapids and production and steam cycle timing at Cold Lake.

Royalty – Higher royalties were primarily driven by higher volumes.

Other – Includes lower operating expenses of about $200 million, primarily from lower energy prices, and favourable foreign exchange impacts of about $70 million, partially offset by lower electricity sales at Cold Lake due to lower prices.
Marker prices and average realizations
 
       Nine Months
Canadian dollars, unless noted2024 2023 
West Texas Intermediate (US$ per barrel)
77.59 77.29 
Western Canada Select (US$ per barrel)
62.15 59.67 
WTI/WCS Spread (US$ per barrel)
15.44 17.62 
Bitumen (per barrel)
75.60 68.70 
Synthetic crude oil (per barrel)
102.95 105.65 
Average foreign exchange rate (US$)
0.74 0.74 
23

IMPERIAL OIL LIMITED
Production
 
       Nine Months
thousands of barrels per day2024 2023 
Kearl (Imperial's share)
195 182 
Cold Lake
145 134 
Syncrude (a)
73 72 
Kearl total gross production (thousands of barrels per day)
275 257 
(a)In 2024, Syncrude gross production included about 1 thousand barrels per day of bitumen and other products (2023 - 1 thousand barrels per day) that were exported to the operator's facilities using an existing interconnect pipeline.

Higher production at Kearl was primarily driven by improved mine fleet productivity and optimized turnaround.

Higher production at Cold Lake was primarily driven by Grand Rapids, and by production and steam cycle timing.
Downstream
Net income (loss) factor analysis
millions of Canadian dollars

82

Margins – Lower margins primarily reflect weaker market conditions.

Other – Primarily due to lower turnaround impacts of about $110 million.
Refinery utilization and petroleum product sales
 
        Nine Months
thousands of barrels per day, unless noted2024 2023 
Refinery throughput395 407 
Refinery capacity utilization