v3.25.4
Business segments
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Business segments Business segments
The company operates its business in Canada, and its three reportable segments are Upstream, Downstream and Chemical. The factors used to identify these reportable segments are based on the nature of the operations that are undertaken by each segment, the structure of the company’s internal organization, and reflect the nature of internal reviews by the company's Management Committee (MC). The MC is considered collectively, and not in their individual capacity, to be the company's Chief Operating Decision Maker (CODM), and includes the company's CEO, CFO, and a senior vice-president, who oversee the Upstream, Downstream and Chemical businesses. The Upstream segment is organized and operates to explore for and ultimately produce crude oil and its equivalent, and natural gas. The Downstream segment is organized and operates to refine crude oil into petroleum products and to distribute and market these products. The Chemical segment is organized and operates to manufacture and market hydrocarbon-based chemicals and chemical products. The above segmentation has been the long-standing practice of the company and is broadly understood across the petroleum and petrochemical industries.
Corporate and other includes assets and liabilities that do not specifically relate to business segments – primarily cash, capitalized interest costs, short-term borrowings, long-term debt and liabilities associated with incentive compensation, pension and other postretirement benefit liabilities. Net earnings effects under Corporate and other activities primarily include debt-related financing, corporate governance costs, non-service pension and postretirement benefit costs, share-based incentive compensation expenses and interest income.
The CODM generally allocates resources through an annual planning process. They also allocate capital based on detailed project economics and long-term strategic objectives across reportable segments. The CODM primarily uses changes in Net Income (loss) to assess segment financial performance.
Segment accounting policies are the same as those described in note 1, "Summary of significant accounting policies". Upstream, Downstream and Chemical expenses include amounts allocated from Corporate and other activities. The allocation is based on proportional segment expenses. Transfers of assets between segments are recorded at book amounts. Intersegment sales are made essentially at prevailing market prices. Assets and liabilities that are not identifiable by segment are allocated.
      Upstream
    Downstream (e)
    Chemical (e)
millions of Canadian dollars2025 2024 2023 2025 2024 2023 2025 2024 2023 
Revenues and other income         
Revenues (a) (b)
291 121 222 45,638 50,114 49,241 989 1,124 1,239 
Intersegment sales
15,645 17,868 16,274 6,371 6,771 6,509 388 323 342 
Investment and other income (note 8)
14 26 16 81 59 108 — 2 — 
Total revenues and other income15,950 18,015 16,512 52,090 56,944 55,858 1,377 1,449 1,581 
Expenses         
Exploration (note 15)
7 3 5 — — — — — — 
Purchases of crude oil and products
6,263 7,367 6,636 45,017 49,856 47,886 923 916 997 
Production and manufacturing
5,015 4,644 4,917 1,992 1,741 1,702 241 197 260 
Selling and general (note 11)
— — — 725 706 693 81 92 89 
Federal excise tax and fuel charge— — — 1,710 2,531 2,399 5 4 3 
Depreciation and depletion (note 11)
1,906 1,747 1,680 203 181 183 16 15 15 
Non-service pension and postretirement benefit— — — — — — — — — 
Financing (note 12)
(14)4 7 — — — — — — 
Total expenses13,177 13,765 13,245 49,647 55,015 52,863 1,266 1,224 1,364 
Income (loss) before income taxes
2,773 4,250 3,267 2,443 1,929 2,995 111 225 217 
Income tax expense (benefit) (note 3)
652 988 755 574 443 694 29 54 53 
Net income (loss)
2,121 3,262 2,512 1,869 1,486 2,301 82 171 164 
Cash flows from (used in) operating activities
3,606 4,664 3,100 3,372 1,049 608 (28)211 53 
Capital and exploration expenditures (c)
1,480 1,078 1,108 412 572 472 11 30 23 
Property, plant and equipment         
Cost49,388 47,920 46,776 8,265 7,887 7,368 1,029 1,015 1,018 
Accumulated depreciation and depletion(23,351)(21,658)(19,936)(4,602)(4,430)(4,301)(758)(743)(757)
Net property, plant and equipment (d) (f) (note 11)
26,037 26,262 26,840 3,663 3,457 3,067 271 272 261 
Total assets
29,111 28,042 28,718 11,036 11,624 10,114 540 474 475 

      Corporate and other     Eliminations      Consolidated
millions of Canadian dollars2025 2024 2023 2025 2024 2023 2025 2024 2023 
Revenues and other income         
Revenues (a) (b)
— — — — — — 46,918 51,359 50,702 
Intersegment sales
— — — (22,404)(24,962)(23,125)— — — 
Investment and other income (note 8)
65 86 143 — — — 160 173 267 
Total revenues and other income65 86 143 (22,404)(24,962)(23,125)47,078 51,532 50,969 
Expenses         
Exploration (note 15)
— — — — — — 7 3 5 
Purchases of crude oil and products
— — — (22,396)(24,955)(23,120)29,807 33,184 32,399 
Production and manufacturing
21 17 — — — — 7,269 6,599 6,879 
Selling and general (note 11)
588 154 80 (8)(7)(5)1,386 945 857 
Federal excise tax and fuel charge— — — — — — 1,715 2,535 2,402 
Depreciation and depletion (note 11)
454 40 29 — — — 2,579 1,983 1,907 
Non-service pension and postretirement benefit41 3 82 — — — 41 3 82 
Financing (note 12)
26 37 62 — — — 12 41 69 
Total expenses1,130 251 253 (22,404)(24,962)(23,125)42,816 45,293 44,600 
Income (loss) before income taxes
(1,065)(165)(110)— — — 4,262 6,239 6,369 
Income tax expense (benefit) (note 3)
(261)(36)(22)— — — 994 1,449 1,480 
Net income (loss)
(804)(129)(88)— — — 3,268 4,790 4,889 
Cash flows from (used in) operating activities
(282)69 (37)40 (12)10 6,708 5,981 3,734 
Capital and exploration expenditures (c)
124 187 175 — — — 2,027 1,867 1,778 
Property, plant and equipment         
Cost1,349 1,226 1,038 — — — 60,031 58,048 56,200 
Accumulated depreciation and depletion(457)(410)(371)— — — (29,168)(27,241)(25,365)
Net property, plant and equipment (d) (f) (note 11)
892 816 667 — — — 30,863 30,807 30,835 
Total assets
3,658 2,962 2,366 (2,036)(164)(474)42,309 42,938 41,199 
Includes export sales to the United States of $9,223 million (2024 - $10,300 million, 2023 - $8,982 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
millions of Canadian dollars2025 2024 2023 
Revenue from contracts with customers38,678 40,901 44,465 
Revenue outside the scope of ASC 606
8,240 10,458 6,237 
Total46,918 51,359 50,702 
(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)Includes property, plant and equipment under construction of $3,467 million (2024 - $3,632 million, 2023 - $3,251 million).
(e)In 2025 and 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 periods have not been recast.
(f)In 2025, in conjunction with the company signing an agreement to sell the Calgary Imperial Campus, the Upstream segment transferred the asset to the Corporate and other segment for $466 million. The effects of this transaction have been eliminated for consolidation purposes. Prior periods have not been recast.