FALSE2023Q2000004993812/31

(a) Amounts from related parties included in revenues.			3,556			5,175			6,692			9,134

(b) Amounts to related parties included in purchases of crude oil and products.			964			1,129			2,042			1,779

(c) Amounts to related parties included in production and manufacturing, and selling and general expenses.			125			116			260			234

(d) Amounts to related parties included in financing.			41			13			80			17

(c)  Included contributions to registered pension plans.			(44)			(46)			(86)			(96)

http://fasb.org/us-gaap/2023#LongTermDebtAndCapitalLeaseObligationshttp://fasb.org/us-gaap/2023#LongTermDebtAndCapitalLeaseObligations00000499382023-01-012023-06-3000000499382023-06-30xbrli:shares00000499382023-04-012023-06-30iso4217:CAD00000499382022-04-012022-06-3000000499382022-01-012022-06-30iso4217:CADxbrli:shares0000049938us-gaap:RelatedPartyMember2023-04-012023-06-300000049938us-gaap:RelatedPartyMember2022-04-012022-06-300000049938us-gaap:RelatedPartyMember2023-01-012023-06-300000049938us-gaap:RelatedPartyMember2022-01-012022-06-3000000499382022-12-310000049938us-gaap:RelatedPartyMember2023-06-300000049938us-gaap:RelatedPartyMember2022-12-310000049938us-gaap:CommonStockMember2023-03-310000049938us-gaap:CommonStockMember2022-03-310000049938us-gaap:CommonStockMember2022-12-310000049938us-gaap:CommonStockMember2021-12-310000049938us-gaap:CommonStockMember2023-04-012023-06-300000049938us-gaap:CommonStockMember2022-04-012022-06-300000049938us-gaap:CommonStockMember2023-01-012023-06-300000049938us-gaap:CommonStockMember2022-01-012022-06-300000049938us-gaap:CommonStockMember2023-06-300000049938us-gaap:CommonStockMember2022-06-300000049938us-gaap:RetainedEarningsMember2023-03-310000049938us-gaap:RetainedEarningsMember2022-03-310000049938us-gaap:RetainedEarningsMember2022-12-310000049938us-gaap:RetainedEarningsMember2021-12-310000049938us-gaap:RetainedEarningsMember2023-04-012023-06-300000049938us-gaap:RetainedEarningsMember2022-04-012022-06-300000049938us-gaap:RetainedEarningsMember2023-01-012023-06-300000049938us-gaap:RetainedEarningsMember2022-01-012022-06-300000049938us-gaap:RetainedEarningsMember2023-06-300000049938us-gaap:RetainedEarningsMember2022-06-300000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-06-300000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-06-300000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-3000000499382022-06-3000000499382023-03-3100000499382022-03-3100000499382021-12-310000049938imo:XtoEnergyCanadaMember2022-04-012022-06-300000049938imo:XtoEnergyCanadaMember2022-01-012022-06-300000049938imo:UpstreamMember2023-04-012023-06-300000049938imo:UpstreamMember2022-04-012022-06-300000049938imo:DownstreamMember2023-04-012023-06-300000049938imo:DownstreamMember2022-04-012022-06-300000049938imo:ChemicalMember2023-04-012023-06-300000049938imo:ChemicalMember2022-04-012022-06-300000049938us-gaap:IntersegmentEliminationMemberimo:UpstreamMember2023-04-012023-06-300000049938us-gaap:IntersegmentEliminationMemberimo:UpstreamMember2022-04-012022-06-300000049938us-gaap:IntersegmentEliminationMemberimo:DownstreamMember2023-04-012023-06-300000049938us-gaap:IntersegmentEliminationMemberimo:DownstreamMember2022-04-012022-06-300000049938us-gaap:IntersegmentEliminationMemberimo:ChemicalMember2023-04-012023-06-300000049938us-gaap:IntersegmentEliminationMemberimo:ChemicalMember2022-04-012022-06-300000049938us-gaap:OperatingSegmentsMemberimo:UpstreamMember2023-04-012023-06-300000049938us-gaap:OperatingSegmentsMemberimo:UpstreamMember2022-04-012022-06-300000049938us-gaap:OperatingSegmentsMemberimo:DownstreamMember2023-04-012023-06-300000049938us-gaap:OperatingSegmentsMemberimo:DownstreamMember2022-04-012022-06-300000049938us-gaap:OperatingSegmentsMemberimo:ChemicalMember2023-04-012023-06-300000049938us-gaap:OperatingSegmentsMemberimo:ChemicalMember2022-04-012022-06-300000049938us-gaap:CorporateNonSegmentMember2023-04-012023-06-300000049938us-gaap:CorporateNonSegmentMember2022-04-012022-06-300000049938srt:ConsolidationEliminationsMember2023-04-012023-06-300000049938srt:ConsolidationEliminationsMember2022-04-012022-06-300000049938country:US2023-04-012023-06-300000049938country:US2022-04-012022-06-300000049938imo:UpstreamMember2023-01-012023-06-300000049938imo:UpstreamMember2022-01-012022-06-300000049938imo:DownstreamMember2023-01-012023-06-300000049938imo:DownstreamMember2022-01-012022-06-300000049938imo:ChemicalMember2023-01-012023-06-300000049938imo:ChemicalMember2022-01-012022-06-300000049938us-gaap:IntersegmentEliminationMemberimo:UpstreamMember2023-01-012023-06-300000049938us-gaap:IntersegmentEliminationMemberimo:UpstreamMember2022-01-012022-06-300000049938us-gaap:IntersegmentEliminationMemberimo:DownstreamMember2023-01-012023-06-300000049938us-gaap:IntersegmentEliminationMemberimo:DownstreamMember2022-01-012022-06-300000049938us-gaap:IntersegmentEliminationMemberimo:ChemicalMember2023-01-012023-06-300000049938us-gaap:IntersegmentEliminationMemberimo:ChemicalMember2022-01-012022-06-300000049938us-gaap:OperatingSegmentsMemberimo:UpstreamMember2023-01-012023-06-300000049938us-gaap:OperatingSegmentsMemberimo:UpstreamMember2022-01-012022-06-300000049938us-gaap:OperatingSegmentsMemberimo:DownstreamMember2023-01-012023-06-300000049938us-gaap:OperatingSegmentsMemberimo:DownstreamMember2022-01-012022-06-300000049938us-gaap:OperatingSegmentsMemberimo:ChemicalMember2023-01-012023-06-300000049938us-gaap:OperatingSegmentsMemberimo:ChemicalMember2022-01-012022-06-300000049938imo:UpstreamMember2023-06-300000049938imo:UpstreamMember2022-06-300000049938imo:DownstreamMember2023-06-300000049938imo:DownstreamMember2022-06-300000049938imo:ChemicalMember2023-06-300000049938imo:ChemicalMember2022-06-300000049938us-gaap:CorporateNonSegmentMember2023-01-012023-06-300000049938us-gaap:CorporateNonSegmentMember2022-01-012022-06-300000049938srt:ConsolidationEliminationsMember2023-01-012023-06-300000049938srt:ConsolidationEliminationsMember2022-01-012022-06-300000049938us-gaap:CorporateNonSegmentMember2023-06-300000049938us-gaap:CorporateNonSegmentMember2022-06-300000049938srt:ConsolidationEliminationsMember2023-06-300000049938srt:ConsolidationEliminationsMember2022-06-300000049938country:US2023-01-012023-06-300000049938country:US2022-01-012022-06-300000049938us-gaap:PensionPlansDefinedBenefitMember2023-04-012023-06-300000049938us-gaap:PensionPlansDefinedBenefitMember2022-04-012022-06-300000049938us-gaap:PensionPlansDefinedBenefitMember2023-01-012023-06-300000049938us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-06-300000049938us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-04-012023-06-300000049938us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-04-012022-06-300000049938us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-01-012023-06-300000049938us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-01-012022-06-300000049938us-gaap:AccountsPayableAndAccruedLiabilitiesMember2023-06-300000049938us-gaap:AccountsPayableAndAccruedLiabilitiesMember2022-12-310000049938imo:CrudeBarrelsMember2023-01-012023-06-30utr:bbl0000049938imo:CrudeBarrelsMember2022-01-012022-12-310000049938imo:ProductsBarrelsMember2023-01-012023-06-300000049938imo:ProductsBarrelsMember2022-01-012022-12-310000049938us-gaap:FairValueInputsLevel1Member2023-06-300000049938us-gaap:FairValueInputsLevel2Member2023-06-300000049938us-gaap:FairValueInputsLevel3Member2023-06-300000049938imo:DerivativeFairValueOfDerivativeAmountEffectOfCounterPartyNettingMember2023-06-300000049938imo:DerivativeFairValueOfDerivativeAmountEffectOfCollateralNettingMember2023-06-300000049938imo:NetCarryingValueMember2023-06-300000049938us-gaap:FairValueInputsLevel1Member2022-12-310000049938us-gaap:FairValueInputsLevel2Member2022-12-310000049938us-gaap:FairValueInputsLevel3Member2022-12-310000049938imo:DerivativeFairValueOfDerivativeAmountEffectOfCounterPartyNettingMember2022-12-310000049938imo:DerivativeFairValueOfDerivativeAmountEffectOfCollateralNettingMember2022-12-310000049938imo:NetCarryingValueMember2022-12-310000049938imo:MasterNettingArrangementsMember2023-06-300000049938imo:MasterNettingArrangementsMember2022-12-3100000499382023-06-292023-06-290000049938imo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyThreeMember2023-06-290000049938imo:ExxonMobilCorporationMemberimo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyThreeMember2023-06-152023-06-15xbrli:pure0000049938imo:ExxonMobilCorporationMemberimo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyThreeMember2023-06-290000049938us-gaap:CommonStockMember2022-01-012022-12-310000049938us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310000049938us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310000049938us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-06-300000049938us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-06-300000049938us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-06-300000049938us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-06-300000049938imo:AccumulatedDefinedBenefitPlansAdjustmentBeforeTaxMember2023-04-012023-06-300000049938imo:AccumulatedDefinedBenefitPlansAdjustmentBeforeTaxMember2022-04-012022-06-300000049938imo:AccumulatedDefinedBenefitPlansAdjustmentBeforeTaxMember2023-01-012023-06-300000049938imo:AccumulatedDefinedBenefitPlansAdjustmentBeforeTaxMember2022-01-012022-06-30

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

For the transition period from ___ to ___

Commission file number 0-12014

(Exact name of registrant as specified in its charter)

1-800-567-3776

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

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.

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).

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

✓

Smaller reporting company

Non-accelerated filer

Emerging growth company

Accelerated filer

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).

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, 2022. 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.

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 2022 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 six months ended June 30, 2023, are not necessarily indicative of the operations to be expected for the full year.

All amounts are in Canadian dollars unless otherwise indicated.

(a)Includes export sales to the United States of $2,034 million (2022 - $3,871 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 those 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 those revenues and receivables within the scope of ASC 606 and those outside it.

(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.

(a)Includes export sales to the United States of $4,409 million (2022 - $6,375 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 those 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 those revenues and receivables within the scope of ASC 606 and those outside it.

(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.

Investment and other income included gains and losses on asset sales as follows:

The components of net benefit cost were as follows:

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 June 30, 2023 and December 31, 2022, the fair value of long-term debt ($3,447 million, excluding finance lease obligations) was primarily a level 2 measurement.

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 and currency exchange 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”. The company does not designate derivative instruments as a hedge for hedge accounting purposes.

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:

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:

The estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement were as follows:

At June 30, 2023 and December 31, 2022, the company had $8 million and $14 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.

The current 12-month normal course issuer bid program came into effect June 29, 2023 under which Imperial will continue its existing share purchase program. The program enables the company to purchase up to a maximum of 29,207,635 common shares (5 percent of the total shares on June 15, 2023) which includes shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of, the normal course issuer bid. 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:

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:

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 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.

There were no identified items in the second quarter or year-to-date 2023 and 2022.

During the first half of 2023, the price of crude oil decreased as the global oil market saw higher inventory levels. In addition, the Canadian WTI/WCS spread continued to recover in the second quarter, but remains weaker than the first half of 2022. Refining margins declined on steady supply of diesel.

Price – Lower bitumen realizations were primarily driven by lower marker prices and the widening WTI/WCS spread. Average bitumen realizations decreased by $43.63 per barrel, generally in line with WCS, and synthetic crude oil realizations decreased by $43.75 per barrel, generally in line with WTI.

Volumes – Lower volumes were primarily driven by the timing of planned turnaround activities at Syncrude, and production and steam cycle timing at Cold Lake.

Other – Includes favourable foreign exchange impacts of about $180 million, and lower operating expenses of about $130 million, resulting primarily from lower energy prices.

(a)In the second quarter of 2023, Syncrude gross production included about 0 thousand barrels per day of bitumen and other products (2022 - 2 thousand barrels per day) that were exported to the operator's facilities using an existing interconnect pipeline.

Lower production at Cold Lake was primarily driven by timing of production and steam cycles.

Lower production at Syncrude was primarily driven by the timing of the annual coker turnaround.

Other – Includes higher turnaround impacts of about $230 million, reflecting the planned turnaround activities at Strathcona refinery, partially offset by favourable foreign exchange impacts of about $110 million.

Lower refinery throughput in the second quarter of 2023 reflects the impact of planned turnaround activities at the Strathcona refinery.

Cash flow generated from operating activities primarily reflects lower Upstream realizations and Downstream margins.

(a)The company did not purchase shares during the second quarter of 2023. In the second quarter of 2022, share repurchases were made under the company's substantial issuer bid that commenced on May 6, 2022 and expired on June 10, 2022, and included shares purchased from Exxon Mobil Corporation by way of a proportionate tender to maintain its ownership percentage at approximately 69.6 percent.

On June 27, 2023, the company announced by news release that it had received final approval from the Toronto Stock Exchange for a new normal course issuer bid and will continue its existing share purchase program. The program enables the company to purchase up to a maximum of 29,207,635 common shares during the period June 29, 2023 to June 28, 2024. This maximum includes shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of, the normal course issuer bid. 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. The program will end should the company purchase the maximum allowable number of shares or on June 28, 2024. 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.

In the second quarter of 2023, the company entered into a long-term purchase agreement with a third party for about $3 billion. It has no impact on the 2023 and 2024 obligations disclosed in Imperial's 2022 annual report on Form 10-K. The company does not believe that the increased obligation will have a material effect on Imperial's operations, financial condition or financial statements.

Price – Lower bitumen realizations were primarily driven by lower marker prices and the widening WTI/WCS spread. Average bitumen realizations decreased by $42.59 per barrel, generally in line with WCS, and synthetic crude oil realizations decreased by $29.68 per barrel, generally in line with WTI.

Volumes – Lower volumes were primarily driven by the timing of planned turnaround activities at Syncrude, and production and steam cycle timing at Cold Lake, partially offset by the absence of extreme cold weather and reduced unplanned downtime at Kearl.

Other – Includes favourable foreign exchange impacts of about $330 million, and lower operating expenses of about $50 million.

(a)In 2023, Syncrude gross production included about 1 thousand barrels per day of bitumen and other products (2022 - 2 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 the absence of extreme cold weather, and reduced unplanned downtime as a result of the successful rollout of the winterization strategy.

Other – Favourable foreign exchange impacts of about $190 million and improved volumes of about $110 million, partially offset by higher turnaround impacts of about $250 million, reflecting the planned turnaround activities at Strathcona refinery.

Lower refinery throughput in 2023 reflects the impact of planned turnaround activities at the Strathcona refinery.

Cash flow generated from operating activities primarily reflects unfavourable working capital impacts, including an income tax catch-up payment of $2.1 billion, as well as lower Upstream realizations and Downstream margins.

Statements of future events or conditions in this report, including projections, targets, expectations, estimates, and business plans are forward-looking statements. Forward-looking statements can be identified by words such as believe, anticipate, intend, propose, plan, goal, seek, project, predict, target, estimate, expect, strategy, outlook, schedule, future, continue, likely, may, should, will and similar references to future periods. Forward-looking statements in this release include, but are not limited to, references to the use of derivative instruments and effectiveness of risk mitigation; The company’s purchases under the normal course issuer bid and plans to accelerate completion prior to year end; and the company’s belief that the commitment related to long-term purchase agreement will not have a material adverse effect on the company.

Forward-looking statements are based on the company's current expectations, estimates, projections and assumptions at the time the statements are made. Actual future financial and operating results, including expectations and assumptions concerning demand growth and energy source, supply and mix; production rates, growth and mix; for shareholder returns, assumptions such as cash flow forecasts, financing sources and capital structure, participation of the company’s majority shareholder and the results of periodic and ongoing evaluation of alternate uses of capital; project plans, timing, costs, technical evaluations and capacities and the company’s ability to effectively execute on these plans and operate its assets; capital and environmental expenditures; and commodity prices, foreign exchange rates and general market conditions could differ materially depending on a number of factors.

These factors include global, regional or local changes in supply and demand for oil, natural gas, and petroleum and petrochemical products and resulting price, differential and margin impacts, including foreign government action with respect to supply levels and prices, the impact of COVID-19 on demand and the occurrence of wars; availability and allocation of capital; project management and schedules and timely completion of projects; unanticipated technical or operational difficulties; availability and performance of third-party service providers; environmental risks inherent in oil and gas exploration and production activities; political or regulatory events, including changes in law or government policy; management effectiveness and disaster response preparedness; operational hazards and risks; cybersecurity incidents, including increased reliance on remote working arrangements; currency exchange rates; general economic conditions; and other factors discussed in Item 1A risk factors and Item 7 management’s discussion and analysis of financial condition and results of operations of Imperial Oil Limited’s most recent annual report on Form 10-K and subsequent interim reports.

Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to Imperial. Imperial’s actual results may differ materially from those expressed or implied by its forward-looking statements and readers are cautioned not to place undue reliance on them. Imperial undertakes no obligation to update any forward-looking statements contained herein, except as required by applicable law.

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.

Information about market risks for the six months ended June 30, 2023, does not differ materially from that discussed on page 32 of the company’s annual report on Form 10-K for the year ended December 31, 2022.

As indicated in the certifications in Exhibit 31 of this report, the company’s principal executive officer and principal financial officer have evaluated the company’s disclosure controls and procedures as of June 30, 2023. Based on that evaluation, these officers have concluded that the company’s disclosure controls and procedures are effective in ensuring that information required to be disclosed by the company in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to them in a manner that allows for timely decisions regarding required disclosures and are effective in ensuring that such information is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. There has not been any change in the company’s internal control over financial reporting during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting.

Imperial has elected to use a $1 million (U.S. dollars) threshold for disclosing environmental proceedings.

(a)On June 27, 2022, the company announced by news release that it had received final approval from the Toronto Stock Exchange for a new normal course issuer bid and to continue its existing share purchase program. The program enabled the company to purchase up to a maximum of 31,833,809 common shares during the period June 29, 2022 to June 28, 2023. This maximum included shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of, the normal course issuer bid. As in the past, Exxon Mobil Corporation advised the company that it intended to participate to maintain its ownership percentage at approximately 69.6 percent. The program ended on October 21, 2022 as a result of the company purchasing the maximum allowable number of shares under the program.

(b)On June 27, 2023, the company announced by news release that it had received final approval from the Toronto Stock Exchange for a new normal course issuer bid and will continue its existing share purchase program. The program enables the company to purchase up to a maximum of 29,207,635 common shares during the period June 29, 2023 to June 28, 2024. This maximum includes shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of, the normal course issuer bid. 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. The program will end should the company purchase the maximum allowable number of shares or on June 28, 2024. 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.

The company will continue to evaluate its share purchase program in the context of its overall capital activities. Purchase plans may be modified at any time without prior notice.

During the three months ended June 30, 2023, none of the Company's directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

(101) Interactive Data Files (formatted as Inline XBRL).

(104) Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.