Segmented Information

12 Months Ended

Dec. 31, 2020

The Company’s exploration and production activities are conducted in three geographic segments: North America, North Sea and Offshore Africa. These activities include the exploration, development, production and marketing of crude oil, natural gas liquids and natural gas. The Company’s Oil Sands Mining and Upgrading activities are reported in a separate segment from exploration and production activities. Midstream and Refining activities include the Company’s pipeline operations, an electricity co-generation system and NWRP.

Segmented revenue and segmented results include transactions between business segments. Sales between segments are made at prices that approximate market prices, taking into account the volumes involved. These transactions and any unrealized profits and losses are eliminated on consolidation, unless unrealized losses provide evidence of an impairment of the asset transferred. Sales to external customers are based on the location of the seller.


	North America						North Sea						Offshore Africa
(millions of Canadian dollars)	2020		2019		2018		2020		2019		2018		2020		2019		2018
Segmented product sales
Crude oil and NGLs (1)	$	7,480	$	9,679	$	7,254	$	417	$	860	$	753	$	318	$	632	$	628
Natural gas	1,242		1,150		1,256		12		57		140		42		67		70
Other income and revenue (2)	41		6		—		3		5		—		18		8		—
Total segmented product sales	8,763		10,835		8,510		432		922		893		378		707		698
Less: royalties	(503)		(998)		(723)		(1)		(2)		(2)		(16)		(42)		(51)
Segmented revenue	8,260		9,837		7,787		431		920		891		362		665		647
Segmented expenses
Production	2,510		2,425		2,405		321		391		405		103		109		208
Transportation, blending and feedstock (1) (3)	3,393		2,935		2,587		15		19		22		1		2		2
Depletion, depreciation and amortization	3,780		3,326		3,132		277		308		257		190		242		201
Asset retirement obligation accretion	97		95		87		30		28		29		6		6		9
Realized risk management (commodity derivatives)	(20)		49		(10)		—		—		—		—		—		—
Gain on acquisition, disposition and revaluation	(217)		—		(277)		—		—		(139)		—		—		(36)
Equity loss from investments	—		—		—		—		—		—		—		—		—
Total segmented expenses	9,543		8,830		7,924		643		746		574		300		359		384
Segmented earnings (loss) before the following	$	(1,283)	$	1,007	$	(137)	$	(212)	$	174	$	317	$	62	$	306	$	263
Non–segmented expenses
Administration
Share-based compensation
Interest and other financing expense
Risk management activities (other)
Foreign exchange (gain) loss
Loss from investments
Total non–segmented expenses
Earnings (loss) before taxes
Current income tax (recovery) expense
Deferred income tax (recovery) expense
Net earnings (loss)

(1)Includes blending and feedstock costs associated with the processing of third party bitumen and other purchased feedstock in the Oil Sands Mining and Upgrading segment.

(2)Includes the sale of diesel and other refined products and other income, including government grants and recoveries associated with the joint operations partners' share of the costs of lease contracts.

(3)Includes a provision of $143 million relating to the Keystone XL pipeline project in the North America segment in 2020.

Inter-segment elimination and Other includes internal and corporate transportation and electricity charges. Production, processing and other purchasing and selling activities, that are not included in the preceding segments are also reported in the segmented information as Inter-segment eliminations and Other.

Operating segments are reported in a manner consistent with the internal reporting provided to the Company’s chief operating decision makers.


Oil Sands Mining and Upgrading						Midstream and Refining						Inter–segment elimination and Other						Total
2020		2019		2018		2020		2019		2018		2020		2019		2018		2020		2019		2018

$	7,389	$	11,340	$	11,521	$	83	$	88	$	102	$	(108)	$	351	$	410	$	15,579	$	22,950	$	20,668
—		—		—		—		—		—		182		145		148		1,478		1,419		1,614
139		6		—		202		—		—		31		—		—		434		25		—
7,528		11,346		11,521		285		88		102		105		496		558		17,491		24,394		22,282
(78)		(481)		(479)		—		—		—		—		—		—		(598)		(1,523)		(1,255)
7,450		10,865		11,042		285		88		102		105		496		558		16,893		22,871		21,027

3,114		3,276		3,367		184		20		21		48		56		58		6,280		6,277		6,464
881		1,306		1,087		181		—		—		27		437		491		4,498		4,699		4,189
1,784		1,656		1,557		15		14		14		—		—		—		6,046		5,546		5,161
72		61		61		—		—		—		—		—		—		205		190		186
—		—		—		—		—		—		—		—		—		(20)		49		(10)
—		—		—		—		—		—		—		—		—		(217)		—		(452)
—		—		—		—		287		5		—		—		—		—		287		5
5,851		6,299		6,072		380		321		40		75		493		549		16,792		17,048		15,543
$	1,599	$	4,566	$	4,970	$	(95)	$	(233)	$	62	$	30	$	3	$	9	$	101	$	5,823	$	5,484

																		391		344		325
																		(82)		223		(146)
																		756		836		739
																		13		28		(124)
																		(275)		(570)		827
																		171		6		341
																		974		867		1,962
																		(873)		4,956		3,522
																		(257)		434		374
																		(181)		(894)		557
																		$	(435)	$	5,416	$	2,591

(1)Includes blending and feedstock costs associated with the processing of third party bitumen and other purchased feedstock in the Oil Sands Mining and Upgrading segment.

(3)Includes a provision of $143 million relating to the Keystone XL pipeline project in the North America segment in 2020.

CAPITAL EXPENDITURES (1)


	2020						2019
	Net expenditures		Non-cash and fair value changes (2)		Capitalized costs		Net expenditures		Non-cash and fair value changes (2)		Capitalized costs

Exploration and evaluation assets
Exploration and Production
North America (3)	$	(7)	$	(150)	$	(157)	$	129	$	(219)	$	(90)
Offshore Africa	12		3		15		35		(2)		33

	5		(147)		(142)		164		(221)		(57)

Property, plant and equipment
Exploration and Production
North America (3)(4)	$	999	$	371	$	1,370	$	4,702	$	918	$	5,620
North Sea	122		(21)		101		196		153		349
Offshore Africa (5)	87		7		94		194		(1,476)		(1,282)
	1,208		357		1,565		5,092		(405)		4,687
Oil Sands Mining and Upgrading (6)	1,323		(629)		694		1,525		344		1,869
Midstream and Refining	5		1		6		10		—		10
Head office	19		—		19		34		(3)		31
	$	2,555	$	(271)	$	2,284	$	6,661	$	(64)	$	6,597

(1)This table provides a reconciliation of capitalized costs, reported in note 6 and note 7, to net expenditures reported in the investing activities section of the statements of cash flows. The reconciliation excludes the impact of foreign exchange adjustments.

(2)Derecognitions, asset retirement obligations, transfer of exploration and evaluation assets, and other fair value adjustments.

(3)Includes cash consideration paid of $91 million for exploration and evaluation assets and $3,126 million for property, plant and equipment acquired from Devon in 2019.

(4)Includes cash consideration paid of $111 million for the acquisition of Painted Pony in 2020.

(5)Includes a derecognition of property, plant and equipment of $1,515 million following the FPSO demobilization at the Olowi field, Gabon in 2019.

(6)Net expenditures include capitalized interest and share-based compensation.

SEGMENTED ASSETS


	2020		2019
Exploration and Production
North America	$	29,094	$	30,963
North Sea	1,624		1,948
Offshore Africa	1,407		1,529
Other	81		30
Oil Sands Mining and Upgrading	41,567		42,006
Midstream and Refining	1,301		1,418
Head office	202		227
	$	75,276	$	78,121