Segmented Information

12 Months Ended

Dec. 31, 2022

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. 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.


	North America						North Sea						Offshore Africa
(millions of Canadian dollars)	2022		2021		2020		2022		2021		2020		2022		2021		2020
Segmented product sales
Crude oil and NGLs (1)	$	20,755	$	14,478	$	7,480	$	623	$	607	$	417	$	694	$	420	$	318
Natural gas	4,931		2,484		1,242		13		5		12		55		31		42
Other income and revenue (2)	217		119		41		—		(1)		3		8		7		18
Total segmented product sales	25,903		17,081		8,763		636		611		432		757		458		378
Less: royalties	(3,918)		(1,694)		(503)		(1)		(1)		(1)		(71)		(21)		(16)
Segmented revenue	21,985		15,387		8,260		635		610		431		686		437		362
Segmented expenses
Production	3,754		2,963		2,510		437		383		321		114		91		103
Transportation, blending and feedstock (1)	6,394		4,772		3,393		6		7		15		1		1		1
Depletion, depreciation and amortization (3)	3,595		3,569		3,780		1,747		160		277		173		142		190
Asset retirement obligation accretion	171		101		97		33		21		30		7		6		6
Risk management activities (commodity derivatives)	18		29		(20)		—		—		—		—		—		—
Gain on acquisitions	—		(478)		(217)		—		—		—		—		—		—
Income from NWRP	—		—		—		—		—		—		—		—		—

Total segmented expenses	13,932		10,956		9,543		2,223		571		643		295		240		300
Segmented earnings (loss)	$	8,053	$	4,431	$	(1,283)	$	(1,588)	$	39	$	(212)	$	391	$	197	$	62
Non–segmented expenses
Administration
Share-based compensation
Interest and other financing expense
Risk management activities (other)
Foreign exchange loss (gain)
(Gain) loss from investments
Total non–segmented expenses
Earnings (loss) before taxes
Current income tax
Deferred income tax
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 $1,620 million recoverability charge in depletion, depreciation and amortization, related to the Ninian field in the North Sea at December 31, 2022.


Oil Sands Mining and Upgrading						Midstream and Refining						Inter–segment elimination and Other						Total
2022		2021		2020		2022		2021		2020		2022		2021		2020		2022		2021		2020

$	20,804	$	14,033	$	7,389	$	80	$	78	$	83	$	53	$	(360)	$	(108)	$	43,009	$	29,256	$	15,579
—		—		—		—		—		—		237		196		182		5,236		2,716		1,478
149		73		139		906		681		202		5		3		31		1,285		882		434
20,953		14,106		7,528		986		759		285		295		(161)		105		49,530		32,854		17,491
(3,242)		(1,081)		(78)		—		—		—		—		—		—		(7,232)		(2,797)		(598)
17,711		13,025		7,450		986		759		285		295		(161)		105		42,298		30,057		16,893

4,076		3,414		3,114		271		234		184		60		67		48		8,712		7,152		6,280
2,652		1,505		881		691		550		181		229		(231)		27		9,973		6,604		4,498
1,822		1,838		1,784		16		15		15		—		—		—		7,353		5,724		6,046
70		57		72		—		—		—		—		—		—		281		185		205
—		—		—		—		—		—		—		—		—		18		29		(20)
—		—		—		—		—		—		—		—		—		—		(478)		(217)
—		—		—		—		(400)		—		—		—		—		—		(400)		—

8,620		6,814		5,851		978		399		380		289		(164)		75		26,337		18,816		16,792
$	9,091	$	6,211	$	1,599	$	8	$	360	$	(95)	$	6	$	3	$	30	$	15,961	$	11,241	$	101

																		415		366		391
																		804		514		(82)
																		549		711		756
																		(53)		7		13
																		738		(127)		(275)
																		(196)		(141)		171
																		2,257		1,330		974
																		13,704		9,911		(873)
																		2,906		1,848		(257)
																		(139)		399		(181)
																		$	10,937	$	7,664	$	(435)

CAPITAL EXPENDITURES (1)


	2022						2021
	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	$	28	$	(59)	$	(31)	$	(7)	$	(36)	$	(43)
Offshore Africa	5		—		5		8		—		8
Oil Sands Mining and Upgrading	—		—		—		—		(150)		(150)
	33		(59)		(26)		1		(186)		(185)

Property, plant and equipment
Exploration and Production
North America (3)	3,105		136		3,241		2,486		1,351		3,837
North Sea	126		177		303		173		38		211
Offshore Africa	119		(44)		75		54		(6)		48
	3,350		269		3,619		2,713		1,383		4,096
Oil Sands Mining and Upgrading (4)	1,719		(843)		876		1,747		(601)		1,146
Midstream and Refining	9		(1)		8		9		—		9
Head Office	25		—		25		23		—		23
	5,103		(575)		4,528		4,492		782		5,274
	$	5,136	$	(634)	$	4,502	$	4,493	$	596	$	5,089

(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 $771 million for the acquisition of Storm in 2021.

(4)Net expenditures includes the acquisition of a 5% net carried interest on an existing oil sands lease during 2021.

SEGMENTED ASSETS


	2022		2021
Exploration and Production
North America	$	31,135	$	30,645
North Sea	378		1,561
Offshore Africa	1,322		1,332
Other	54		40
Oil Sands Mining and Upgrading	42,102		42,016
Midstream and Refining	979		886
Head Office	172		185
	$	76,142	$	76,665