Imperial Oil(US:IMO)2025-08-04 16:52markdown [PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial statements](index=4&type=section&id=Item%201.%20Financial%20statements) Imperial Oil Limited's unaudited consolidated financial statements for Q2 and H1 2025, prepared under U.S. GAAP, are presented [Consolidated statement of income](index=4&type=section&id=Consolidated%20statement%20of%20income) Revenues and Other Income (millions of Canadian dollars) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :-------------------------- | :------ | :------ | :------------ | :------------ | | Revenues | 11,208 | 13,348 | 23,674 | 25,597 | | Investment and other income | 24 | 35 | 75 | 69 | | **Total revenues and other income** | **11,232** | **13,383** | **23,749** | **25,666** | Expenses (millions of Canadian dollars) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :---------------------------------- | :------ | :------ | :------------ | :------------ | | Purchases of crude oil and products | 7,215 | 8,856 | 14,971 | 16,562 | | Production and manufacturing | 1,664 | 1,689 | 3,350 | 3,353 | | Selling and general | 251 | 221 | 510 | 467 | | Federal excise tax and fuel charge | 372 | 656 | 964 | 1,247 | | Depreciation and depletion | 478 | 456 | 1,009 | 946 | | Financing | 2 | 14 | — | 26 | | **Total expenses** | **9,988** | **11,894** | **20,817** | **22,605** | Profitability and Per Share Information (millions of Canadian dollars, unless noted) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :------------------------------------------ | :------ | :------ | :------------ | :------------ | | Income before income taxes | 1,244 | 1,489 | 2,932 | 3,061 | | Income taxes | 295 | 356 | 695 | 733 | | **Net income (loss)** | **949** | **1,133** | **2,237** | **2,328** | | Net income (loss) per common share - basic (C$) | 1.86 | 2.11 | 4.39 | 4.34 | | Net income (loss) per common share - diluted (C$) | 1.86 | 2.11 | 4.38 | 4.34 | [Consolidated statement of comprehensive income](index=5&type=section&id=Consolidated%20statement%20of%20comprehensive%20income) Comprehensive Income (millions of Canadian dollars) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :-------------------------------------------------- | :------ | :------ | :------------ | :------------ | | Net income (loss) | 949 | 1,133 | 2,237 | 2,328 | | Other comprehensive income (loss), net of income taxes | 5 | 13 | 22 | 29 | | **Comprehensive income (loss)** | **954** | **1,146** | **2,259** | **2,357** | [Consolidated balance sheet](index=6&type=section&id=Consolidated%20balance%20sheet) Assets (millions of Canadian dollars) | Metric | Jun 30, 2025 | Dec 31, 2024 | | :------------------------------------------ | :----------- | :----------- | | Cash and cash equivalents | 2,386 | 979 | | Accounts receivable - net | 5,602 | 5,758 | | Inventories of crude oil and products | 1,642 | 1,642 | | Materials, supplies and prepaid expenses | 1,028 | 975 | | **Total current assets** | **10,658** | **9,354** | | Property, plant and equipment - net | 30,668 | 30,807 | | Goodwill | 166 | 166 | | Other assets, including intangibles - net | 1,592 | 1,527 | | **Total assets** | **44,178** | **42,938** | Liabilities (millions of Canadian dollars) | Metric | Jun 30, 2025 | Dec 31, 2024 | | :------------------------------------------ | :----------- | :----------- | | Notes and loans payable | 19 | 19 | | Accounts payable and accrued liabilities | 6,710 | 6,907 | | Income taxes payable | — | 81 | | **Total current liabilities** | **6,729** | **7,007** | | Long-term debt | 3,983 | 3,992 | | Other long-term obligations | 3,901 | 3,870 | | Deferred income tax liabilities | 4,566 | 4,596 | | **Total liabilities** | **19,179** | **19,465** | Shareholders' Equity (millions of Canadian dollars) | Metric | Jun 30, 2025 | Dec 31, 2024 | | :------------------------------------------ | :----------- | :----------- | | Common shares at stated value | 942 | 942 | | Earnings reinvested | 24,249 | 22,745 | | Accumulated other comprehensive income (loss) | (192) | (214) | | **Total shareholders' equity** | **24,999** | **23,473** | | **Total liabilities and shareholders' equity** | **44,178** | **42,938** | [Consolidated statement of shareholders' equity](index=7&type=section&id=Consolidated%20statement%20of%20shareholders'%20equity) Shareholders' Equity Changes (millions of Canadian dollars) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :------------------------------------------ | :------ | :------ | :------------ | :------------ | | Earnings reinvested at beginning of period | 23,666 | 22,781 | 22,745 | 21,907 | | Net income (loss) for the period | 949 | 1,133 | 2,237 | 2,328 | | Dividends declared | (366) | (322) | (733) | (643) | | Accumulated other comprehensive income (loss) at beginning of period | (197) | (661) | (214) | (677) | | Other comprehensive income (loss) | 5 | 13 | 22 | 29 | | **Shareholders' equity at end of period** | **24,999** | **23,936** | **24,999** | **23,936** | [Consolidated statement of cash flows](index=8&type=section&id=Consolidated%20statement%20of%20cash%20flows) Cash Flows (millions of Canadian dollars) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :------------------------------------------ | :------ | :------ | :------------ | :------------ | | Cash flows from (used in) operating activities | 1,465 | 1,629 | 2,992 | 2,705 | | Cash flows from (used in) investing activities | (472) | (456) | (849) | (937) | | Cash flows from (used in) financing activities | (371) | (329) | (736) | (612) | | **Increase (decrease) in cash and cash equivalents** | **622** | **844** | **1,407** | **1,156** | | Cash and cash equivalents at beginning of period | 1,764 | 1,176 | 979 | 864 | | **Cash and cash equivalents at end of period** | **2,386** | **2,020** | **2,386** | **2,020** | [Notes to consolidated financial statements](index=9&type=section&id=Notes%20to%20consolidated%20financial%20statements) [Note 1. Basis of financial statement preparation](index=9&type=section&id=Note%201.%20Basis%20of%20financial%20statement%20preparation) - The unaudited consolidated financial statements are prepared in accordance with U.S. GAAP and follow the same accounting policies as the 2024 annual report on Form 10-K. All adjustments are normal and recurring[17](index=17&type=chunk) - Exploration and production activities are accounted for under the "successful efforts" method[18](index=18&type=chunk) - Amounts for related party revenues and purchases for Q2 and 6 months ended June 30, 2024, were revised, with impacts offsetting to zero[19](index=19&type=chunk) [Note 2. Business segments](index=10&type=section&id=Note%202.%20Business%20segments) - In Q2 2025, benzene and aromatic solvents were reclassified from the Chemicals segment to the Downstream segment. This change was deemed immaterial, so comparative periods were not recast[23](index=23&type=chunk)[26](index=26&type=chunk) Segment Net Income (Loss) (millions of Canadian dollars) | Segment | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :---------------- | :------ | :------ | :------------ | :------------ | | Upstream | 664 | 799 | 1,395 | 1,357 | | Downstream | 322 | 294 | 906 | 925 | | Chemical | 21 | 65 | 52 | 122 | | Corporate and other | (58) | (25) | (116) | (76) | | **Consolidated Net Income** | **949** | **1,133** | **2,237** | **2,328** | Segment Capital and Exploration Expenditures (CAPEX) (millions of Canadian dollars) | Segment | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :---------------- | :------ | :------ | :------------ | :------------ | | Upstream | 353 | 267 | 619 | 557 | | Downstream | 90 | 149 | 178 | 302 | | Chemical | 1 | 3 | 4 | 8 | | Corporate and other | 29 | 43 | 70 | 91 | | **Consolidated CAPEX** | **473** | **462** | **871** | **958** | [Note 3. Investment and other income](index=14&type=section&id=Note%203.%20Investment%20and%20other%20income) Gain (Loss) on Asset Sales (millions of Canadian dollars) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :-------------------------------- | :------ | :------ | :------------ | :------------ | | Proceeds from asset sales | 2 | 3 | 13 | 7 | | Book value of asset sales | 1 | 2 | 2 | 4 | | Gain (loss) on asset sales, before tax | 1 | 1 | 11 | 3 | | Gain (loss) on asset sales, after tax | 1 | 1 | 10 | 3 | [Note 4. Employee retirement benefits](index=14&type=section&id=Note%204.%20Employee%20retirement%20benefits) Net Benefit Cost (millions of Canadian dollars) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :-------------------------------- | :------ | :------ | :------------ | :------------ | | Pension benefits | 50 | 43 | 100 | 86 | | Other postretirement benefits | 3 | 7 | 6 | 15 | [Note 5. Financing costs](index=14&type=section&id=Note%205.%20Financing%20costs) Total Financing Costs (millions of Canadian dollars) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :-------------------------------- | :------ | :------ | :------------ | :------------ | | Debt-related interest | 27 | 52 | 64 | 104 | | Capitalized interest | (25) | (39) | (52) | (80) | | Net interest expense | 2 | 13 | 12 | 24 | | Other interest | — | 1 | (12) | 2 | | **Total financing** | **2** | **14** | **—** | **26** | [Note 6. Long-term debt](index=15&type=section&id=Note%206.%20Long-term%20debt) Long-term Debt (millions of Canadian dollars) | Metric | Jun 30, 2025 | Dec 31, 2024 | | :---------------- | :----------- | :----------- | | Long-term debt | 3,447 | 3,447 | | Finance leases | 536 | 545 | | **Total long-term debt** | **3,983** | **3,992** | [Note 7. Other long-term obligations](index=15&type=section&id=Note%207.%20Other%20long-term%20obligations) Other Long-term Obligations (millions of Canadian dollars) | Metric | Jun 30, 2025 | Dec 31, 2024 | | :------------------------------------------ | :----------- | :----------- | | Employee retirement benefits | 828 | 846 | | Asset retirement obligations and other environmental liabilities | 2,607 | 2,641 | | Share-based incentive compensation liabilities | 197 | 119 | | Operating lease liability | 147 | 144 | | Other obligations | 122 | 120 | | **Total other long-term obligations** | **3,901** | **3,870** | [Note 8. Financial and derivative instruments](index=16&type=section&id=Note%208.%20Financial%20and%20derivative%20instruments) - The fair value of long-term debt (**$3,447 million**, excluding finance lease obligations) was primarily a level 2 measurement as of June 30, 2025, and December 31, 2024[34](index=34&type=chunk) - The company uses commodity-based contracts, including derivatives, to manage commodity price risk and generate returns from trading. These are not accounted for under hedge accounting[35](index=35&type=chunk) Net Notional Long/(Short) Position of Derivative Instruments (thousands of barrels) | Metric | Jun 30, 2025 | Dec 31, 2024 | | :------- | :----------- | :----------- | | Crude | 4,374 | 4,260 | | Products | (1,153) | (371) | Realized and Unrealized Gain/(Loss) on Derivative Instruments (millions of Canadian dollars) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :------- | :------ | :------ | :------------ | :------------ | | Revenues | (24) | 11 | (9) | (13) | [Note 9. Common shares](index=18&type=section&id=Note%209.%20Common%20shares) - As of June 30, 2025, and December 31, 2024, the company had **509,045 thousand** common shares outstanding[41](index=41&type=chunk) - Imperial announced a new normal course issuer bid program effective June 29, 2025, to purchase up to **25,452,248** common shares (**5%** of shares on June 15, 2025) by June 28, 2026. Exxon Mobil Corporation intends to participate to maintain its **69.6%** ownership. The company plans to accelerate repurchases to complete them before year-end[41](index=41&type=chunk)[64](index=64&type=chunk)[91](index=91&type=chunk) Per Share Information and Dividends (Canadian dollars) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :------------------------------------------ | :------ | :------ | :------------ | :------------ | | Net income (loss) per common share - basic | 1.86 | 2.11 | 4.39 | 4.34 | | Net income (loss) per common share - diluted | 1.86 | 2.11 | 4.38 | 4.34 | | Dividends per common share - declared | 0.72 | 0.60 | 1.44 | 1.20 | [Note 10. Other comprehensive income (loss) information](index=19&type=section&id=Note%2010.%20Other%20comprehensive%20income%20(loss)%20information) Changes in Accumulated Other Comprehensive Income (Loss) (millions of Canadian dollars) | Metric | 2025 | 2024 | | :------------------------------------------------------------------------------------------------ | :--- | :--- | | Balance at January 1 | (214) | (677) | | Postretirement benefits liability adjustment: Current period change excluding reclassified amounts | 12 | 4 | | Amounts reclassified from accumulated other comprehensive income | 10 | 25 | | **Balance at June 30** | **(192)** | **(648)** | [Item 2. Management's discussion and analysis of financial condition and results of operations](index=20&type=section&id=Item%202.%20Management's%20discussion%20and%20analysis%20of%20financial%20condition%20and%20results%20of%20operations) Analyzes Imperial Oil Limited's financial condition and operating results for Q2 and H1 2025, covering business environment, segment performance, and liquidity [Recent business environment](index=20&type=section&id=Recent%20business%20environment) - In Q2 2025, crude oil prices decreased compared to Q1 2025, while the Canadian WTI/WCS spread narrowed due to low inventory levels[48](index=48&type=chunk) - Industry refining margins improved in Q2 2025, driven by strong seasonal demand[48](index=48&type=chunk) - The global trade environment remains volatile due to U.S. tariffs on Canadian imports and Canada's retaliatory tariffs. Uncertainty exists regarding future trade actions and their impact on Imperial, its suppliers, and customers[49](index=49&type=chunk) [Operating results](index=20&type=section&id=Operating%20results) [Second quarter 2025 vs. second quarter 2024](index=20&type=section&id=Second%20quarter%202025%20vs.%20second%20quarter%202024) [Upstream](index=20&type=section&id=Upstream%20(Q2)) - Upstream net income was impacted by lower average bitumen and synthetic crude oil realizations due to lower marker prices and a weaker Synthetic/WTI spread[51](index=51&type=chunk) - Higher volumes, primarily from Kearl (mine productivity, improved reliability) and Syncrude (timing of annual coker turnaround), partially offset the price impact[51](index=51&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) - Lower royalties were primarily driven by lower commodity prices[52](index=52&type=chunk) Marker Prices and Average Realizations (US$ per barrel, unless noted) | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------- | :------ | :------ | :----- | | West Texas Intermediate (US$) | 63.69 | 80.63 | -16.94 | | Western Canada Select (US$) | 53.66 | 67.03 | -13.37 | | WTI/WCS Spread (US$) | 10.03 | 13.60 | -3.57 | | Bitumen (C$ per barrel) | 65.82 | 83.02 | -17.20 | | Synthetic crude oil (C$ per barrel) | 87.85 | 111.56 | -23.71 | Production (thousands of barrels per day) | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------- | :------ | :------ | :----- | | Kearl (Imperial's share) | 195 | 181 | +14 | | Cold Lake | 145 | 147 | -2 | | Syncrude | 77 | 66 | +11 | [Downstream](index=21&type=section&id=Downstream%20(Q2)) - Higher margins primarily reflect improved market conditions[57](index=57&type=chunk) - Lower refinery throughput was due to unplanned downtime, partially offset by lower turnaround impacts[58](index=58&type=chunk) - Petroleum product sales increased, enabled by the Trans Mountain pipeline expansion[59](index=59&type=chunk) Refinery Utilization and Petroleum Product Sales (thousands of barrels per day, unless noted) | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------- | :------ | :------ | :----- | | Refinery throughput | 376 | 387 | -11 | | Refinery capacity utilization (%) | 87 | 89 | -2 | | Petroleum product sales | 480 | 470 | +10 | [Chemicals](index=22&type=section&id=Chemicals%20(Q2)) Net Income (Loss) (millions of Canadian dollars) | Metric | Q2 2025 | Q2 2024 | | :-------------------------- | :------ | :------ | | Net income (loss) | 21 | 65 | [Corporate and other](index=22&type=section&id=Corporate%20and%20other%20(Q2)) Net Income (Loss) (millions of Canadian dollars) | Metric | Q2 2025 | Q2 2024 | | :-------------------------- | :------ | :------ | | Net income (loss) | (58) | (25) | [Six months 2025 vs. six months 2024](index=23&type=section&id=Six%20months%202025%20vs.%20six%20months%202024) [Upstream](index=23&type=section&id=Upstream%20(6%20Months)) - Average bitumen and synthetic crude oil realizations decreased due to lower marker prices, partially offset by a narrowing WTI/WCS spread and lower diluent costs[66](index=66&type=chunk) - Higher volumes were driven by Grand Rapids solvent-assisted SAGD and the timing of the annual coker turnaround at Syncrude[67](index=67&type=chunk)[72](index=72&type=chunk) - Lower royalties were primarily due to lower commodity prices[68](index=68&type=chunk) - Favorable foreign exchange impacts contributed approximately **$170 million**[69](index=69&type=chunk) Marker Prices and Average Realizations (US$ per barrel, unless noted) | Metric | 6 Months 2025 | 6 Months 2024 | Change | | :-------------------------- | :------------ | :------------ | :----- | | West Texas Intermediate (US$) | 67.52 | 78.77 | -11.25 | | Western Canada Select (US$) | 56.25 | 62.34 | -6.09 | | WTI/WCS Spread (US$) | 11.27 | 16.43 | -5.16 | | Bitumen (C$ per barrel) | 70.50 | 74.70 | -4.20 | | Synthetic crude oil (C$ per barrel) | 93.14 | 102.10 | -8.96 | Production (thousands of barrels per day) | Metric | 6 Months 2025 | 6 Months 2024 | Change | | :-------------------------- | :------------ | :------------ | :----- | | Kearl (Imperial's share) | 189 | 189 | 0 | | Cold Lake | 150 | 144 | +6 | | Syncrude | 75 | 70 | +5 | [Downstream](index=24&type=section&id=Downstream%20(6%20Months)) - Higher margins primarily reflect improved market conditions[73](index=73&type=chunk) - Unfavorable wholesale volume impacts of about **$70 million**[73](index=73&type=chunk) - Lower refinery throughput was primarily due to unplanned downtime, partially offset by lower turnaround impacts[74](index=74&type=chunk) Refinery Utilization and Petroleum Product Sales (thousands of barrels per day, unless noted) | Metric | 6 Months 2025 | 6 Months 2024 | Change | | :-------------------------- | :------------ | :------------ | :----- | | Refinery throughput | 387 | 397 | -10 | | Refinery capacity utilization (%) | 89 | 92 | -3 | | Petroleum product sales | 468 | 460 | +8 | [Chemicals](index=24&type=section&id=Chemicals%20(6%20Months)) - Lower margins primarily reflect weaker industry polyethylene margins[75](index=75&type=chunk) Net Income (Loss) (millions of Canadian dollars) | Metric | 6 Months 2025 | 6 Months 2024 | | :-------------------------- | :------------ | :------------ | | Net income (loss) | 52 | 122 | [Corporate and other](index=25&type=section&id=Corporate%20and%20other%20(6%20Months)) Net Income (Loss) (millions of Canadian dollars) | Metric | 6 Months 2025 | 6 Months 2024 | | :-------------------------- | :------------ | :------------ | | Net income (loss) | (116) | (76) | [Liquidity and capital resources](index=22&type=section&id=Liquidity%20and%20capital%20resources) [Second Quarter](index=22&type=section&id=Second%20Quarter%20(Liquidity)) - Cash flows from operating activities primarily reflect lower earnings and lower favorable working capital impacts[61](index=61&type=chunk) - Cash flows used in investing activities primarily reflect higher additions to property, plant and equipment[62](index=62&type=chunk) - Cash flows used in financing activities primarily reflect dividends paid. The company did not purchase shares in Q2 2025 or Q2 2024[63](index=63&type=chunk) Cash Flows (millions of Canadian dollars) | Metric | Q2 2025 | Q2 2024 | Change | | :------------------------------------------ | :------ | :------ | :----- | | Operating activities | 1,465 | 1,629 | -164 | | Investing activities | (472) | (456) | -16 | | Financing activities | (371) | (329) | -42 | | Increase (decrease) in cash and cash equivalents | 622 | 844 | -222 | | Cash and cash equivalents at period end | 2,386 | 2,020 | +366 | Dividends Paid (millions of Canadian dollars, unless noted) | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------- | :------ | :------ | :----- | | Dividends paid | 367 | 321 | +46 | | Per share dividend paid (dollars) | 0.72 | 0.60 | +0.12 | [Six Months](index=25&type=section&id=Six%20Months%20(Liquidity)) - Cash flows from operating activities primarily reflect lower unfavorable deferred tax and working capital impacts[77](index=77&type=chunk) - Cash flows used in investing activities primarily reflect lower additions to property, plant and equipment[78](index=78&type=chunk) - The company did not purchase any shares during the six months ended June 30, 2025, and 2024[79](index=79&type=chunk) Cash Flows (millions of Canadian dollars) | Metric | 6 Months 2025 | 6 Months 2024 | Change | | :------------------------------------------ | :------------ | :------------ | :----- | | Operating activities | 2,992 | 2,705 | +287 | | Investing activities | (849) | (937) | +88 | | Financing activities | (736) | (612) | -124 | | Increase (decrease) in cash and cash equivalents | 1,407 | 1,156 | +251 | Dividends Paid (millions of Canadian dollars, unless noted) | Metric | 6 Months 2025 | 6 Months 2024 | Change | | :-------------------------- | :------------ | :------------ | :----- | | Dividends paid | 674 | 599 | +75 | | Per share dividend paid (dollars) | 1.32 | 1.10 | +0.22 | [Forward-looking statements](index=26&type=section&id=Forward-looking%20statements) - This section identifies forward-looking statements related to future events or conditions, including projections, targets, expectations, estimates, and business plans[80](index=80&type=chunk) - Forward-looking statements are based on current expectations and assumptions, but actual future results could differ materially due to various factors such as energy demand, production rates, project execution, government policies, commodity prices, and economic conditions[81](index=81&type=chunk)[82](index=82&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, as they are not guarantees of future performance and involve risks and uncertainties. Imperial undertakes no obligation to update them, except as required by law[83](index=83&type=chunk) [Item 3. Quantitative and qualitative disclosures about market risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20qualitative%20disclosures%20about%20market%20risk) Market risk disclosures for H1 2025 do not materially differ from the 2024 annual report on Form 10-K - Market risk disclosures for the six months ended June 30, 2025, are consistent with those in the 2024 annual report on Form 10-K[84](index=84&type=chunk) [Item 4. Controls and procedures](index=27&type=section&id=Item%204.%20Controls%20and%20procedures) Disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The company's principal executive and financial officers concluded that disclosure controls and procedures were effective as of June 30, 2025[85](index=85&type=chunk) - There have been no material changes to the company's internal control over financial reporting during the last fiscal quarter[85](index=85&type=chunk) [PART II. OTHER INFORMATION](index=28&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal proceedings](index=28&type=section&id=Item%201.%20Legal%20proceedings) Imperial Oil Limited uses a **$1 million** (U.S. dollars) threshold for disclosing environmental legal proceedings - Imperial uses a **$1 million** (U.S. dollars) threshold for disclosing environmental legal proceedings[88](index=88&type=chunk) [Item 2. Unregistered sales of equity securities and use of proceeds](index=28&type=section&id=Item%202.%20Unregistered%20sales%20of%20equity%20securities%20and%20use%20of%20proceeds) Details issuer equity security purchases, with no Q2 2025 activity, and a new program to repurchase up to **25.45 million** shares - No shares were purchased by the issuer during April, May, or June 2025[89](index=89&type=chunk) - A new normal course issuer bid program was approved on June 23, 2025, allowing the company to purchase up to **25,452,248** common shares (**5%** of total shares) from June 29, 2025, to June 28, 2026[91](index=91&type=chunk) - Exxon Mobil Corporation intends to participate in the share purchase program to maintain its **69.6%** ownership percentage. Imperial plans to accelerate share purchases to complete them prior to year-end[91](index=91&type=chunk) [Item 5. Other information](index=28&type=section&id=Item%205.%20Other%20information) No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers in Q2 2025 - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers during Q2 2025[93](index=93&type=chunk) [Item 6. Exhibits](index=29&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including executive and financial officer certifications and Interactive Data Files - The report includes certifications by the principal executive and financial officers (Exhibits 31.1, 31.2, 32.1, 32.2)[94](index=94&type=chunk) - Interactive Data Files (formatted as Inline XBRL) and the Cover Page Interactive Data File are included as Exhibits 101 and 104[94](index=94&type=chunk) [SIGNATURES](index=30&type=section&id=SIGNATURES) - The report was signed on **August 4, 2025**, by Daniel E. Lyons (Senior vice-president, finance and administration, and controller) and Cathryn Walker (Assistant corporate secretary)[96](index=96&type=chunk)