Imperial announces third quarter 2025 financial and operating results

CALGARY, Alberta--( BUSINESS WIRE)--Imperial (TSE: IMO) (NYSE American: IMO):

Third quarter

Nine months

millions of Canadian dollars, unless noted

2025

2024

∆I

2025

2024

∆I

Net income (loss) (U.S. GAAP)

539

1,237

(698)

2,776

3,565

(789)

Net income (loss) excluding identified items 1

1,094

1,237

(143)

3,331

3,565

(234)

Net income (loss) per common share, assuming dilution (dollars)

1.07

2.33

(1.26)

5.46

6.66

(1.20)

Net income (loss) excluding identified items 1 per common share, assuming dilution (dollars)

2.17

2.33

(0.16)

6.55

6.66

(0.11)

Capital and exploration expenditures

505

486

+19

1,376

1,444

(68)

Imperial reported estimated net income in the third quarter of $539 million, compared to net income of $949 million in the second quarter of 2025, primarily driven by a non-cash impairment of the Calgary Imperial Campus and the previously announced restructuring charge. Excluding identified items 1, estimated net income was $1,094 million up $145 million driven by strong operating performance. Quarterly cash flows from operating activities were $1,798 million, up from $1,465 million generated in the second quarter of 2025. Cash flows from operating activities excluding working capital 1 were $1,600 million – which included a $149 million unfavourable impact from the restructuring charge included in identified items 1. Cash flows from operating activities excluding working capital 1 were $1,413 million in the second quarter of 2025.

“Our operations delivered strong results across the board, as we continued to execute on our strategy to maximize value from our assets by growing volumes at lower unit cash costs 1, and returning surplus cash to our shareholders in a timely manner," said John Whelan, chairman, president and chief executive officer. "Our Upstream delivered the highest crude production in company history including record production at Kearl, while our Downstream achieved very strong utilization rates across our refining network."

Upstream production averaged 462,000 gross oil-equivalent barrels per day, the highest quarterly production in over 30 years. Kearl recorded its highest-ever quarterly total gross production averaging 316,000 barrels per day (224,000 barrels Imperial's share). Cold Lake averaged 150,000 barrels per day of gross production and progressed work at the Leming SAGD project. The company's share of Syncrude production averaged 78,000 gross barrels per day.

Downstream throughput in the quarter averaged 425,000 barrels per day, resulting in an overall refinery capacity utilization of 98 percent, including progressing planned turnaround work at Sarnia. Petroleum product sales averaged 464,000 barrels per day.

During the quarter, Imperial returned $1,835 million to shareholders through dividend payments and share repurchases under the accelerated normal course issuer bid (NCIB) program, which is anticipated to be completed prior to year end. The company also declared a fourth quarter dividend of 72 cents per share.

In late September, Imperial announced restructuring plans to further improve the company’s industry-leading performance by centralizing additional corporate and technical activities in global business and technology centres, realizing substantial efficiency and effectiveness benefits from scale, integration and technology. These restructuring plans leverage the rapidly advancing technology environment and the growth of global capability centres to advance Imperial’s long-standing strategy of maximizing the value of existing assets.

“Throughout this transition, Imperial remains highly committed to safety, operational excellence, reliability and the delivery of winning results,” said Whelan. “The company is taking these actions to further enhance our foundation for future growth and position us to continue delivering industry-leading returns and long-term value for our shareholders."

Third quarter highlights

Recent business environment

During the third quarter of 2025, the price of crude oil increased slightly relative to second quarter of 2025, while the Canadian WTI/WCS spread remained relatively flat with the second quarter of 2025. Industry refining margins improved in the third quarter of 2025, driven by strong seasonal demand and global diesel supply disruptions.

During 2025, the United States announced a variety of trade-related actions, including the imposition of tariffs on imports from Canada and several other countries. In response, Canada announced its own retaliatory tariffs. Despite the current uncertainty as to what effects these actions will ultimately have on Imperial, its suppliers and its customers, the company does not anticipate any material near-term financial impacts.

Operating results

Third quarter 2025 vs. third quarter 2024

Third Quarter

millions of Canadian dollars, unless noted

2025

2024

Net income (loss) (U.S. GAAP)

539

1,237

Net income (loss) per common share, assuming dilution (dollars)

1.07

2.33

Net income (loss) excluding identified items 1

1,094

1,237

Current quarter results include identified items 1 of a $306 million after-tax ($406 million before-tax) non-cash impairment charge and a $249 million after-tax ($330 million before-tax) restructuring charge.

Upstream

Net income (loss) factor analysis

millions of Canadian dollars

2024

Price

Volume

Royalty

Other

2025

1,027

(330)

(10)

(19)

728

Price – Average bitumen realizations decreased by $9.02 per barrel, primarily driven by lower marker prices partially offset by narrowing WTI/WCS spread. Synthetic crude oil realizations decreased by $13.29 per barrel, primarily driven by lower WTI and a weaker Synthetic/WTI spread.

Volume – Inventory impacts partially offset by higher production.

Royalty – Lower royalties were primarily driven by lower commodity prices.

Marker prices and average realizations

Third Quarter

Canadian dollars, unless noted

2025

2024

West Texas Intermediate (US$ per barrel)

64.97

75.27

Western Canada Select (US$ per barrel)

54.62

61.76

WTI/WCS Spread (US$ per barrel)

10.35

13.51

Bitumen (per barrel)

68.22

77.24

Synthetic crude oil (per barrel)

91.12

104.41

Average foreign exchange rate (US$)

0.73

Production

Third Quarter

thousands of barrels per day

2025

2024

Kearl (Imperial's share)

224

209

Cold Lake

150

147

Syncrude

Kearl total gross production (thousands of barrels per day)

316

295

Higher production at Kearl was primarily driven by improved reliability and recovery.

Downstream

Net income (loss) factor analysis

millions of Canadian dollars

2024

Margins

Other

2025

205

230

444

Margins - Higher margins primarily reflect improved market conditions.

Other - Includes lower turnaround impacts of about $70 million.

Refinery utilization and petroleum product sales

Third Quarter

thousands of barrels per day, unless noted

2025

2024

Refinery throughput

425

389

Refinery capacity utilization (percent)

Petroleum product sales

464

487

Higher refinery throughput was primarily due to lower turnaround impacts.

Lower petroleum product sales were primarily due to lower volumes in the supply and wholesale channels.

Chemicals

Net income (loss) factor analysis

millions of Canadian dollars

2024

Margins

Other

2025

(30)

Corporate and other

Third Quarter

millions of Canadian dollars

2025

2024

Net income (loss) (U.S. GAAP)

(654)

(23)

Liquidity and capital resources

Third Quarter

millions of Canadian dollars

2025

2024

Cash flows from (used in):

Operating activities

1,798

1,487

Investing activities

(482)

(484)

Financing activities

(1,841)

(1,533)

Increase (decrease) in cash and cash equivalents

(525)

(530)

Cash and cash equivalents at period end

1,861

1,490

Cash flows from operating activities primarily reflect favourable working capital impacts.

Cash flows used in financing activities primarily reflect:

Third Quarter

millions of Canadian dollars, unless noted

2025

2024

Dividends paid

366

322

Per share dividend paid (dollars)

0.72

0.60

Share repurchases (a)

1,469

1,206

Number of shares purchased (millions) (a)

12.2

12.4

(a)

Share repurchases were made under the company’s normal course issuer bid program, and include shares purchased from Exxon Mobil Corporation.

Nine months 2025 vs. nine months 2024

Nine Months

millions of Canadian dollars, unless noted

2025

2024

Net income (loss) (U.S. GAAP)

2,776

3,565

Net income (loss) per common share, assuming dilution (dollars)

5.46

6.66

Net income (loss) excluding identified items 1

3,331

3,565

Upstream

Net income (loss) factor analysis

millions of Canadian dollars

2024

Price

Volume

Royalty

Other

2025

2,384

(790)

120

220

189

2,123

Price – Average bitumen realizations decreased by $5.92 per barrel, primarily driven by lower marker prices partially offset by narrowing WTI/WCS spread. Synthetic crude oil realizations decreased by $10.51 per barrel, primarily driven by lower WTI partially offset by an improved Synthetic/WTI spread.

Volume – Higher volumes were driven by higher production at Syncrude, Kearl and Cold Lake.

Royalty – Lower royalties were primarily driven by lower commodity prices.

Other – Primarily due to favourable foreign exchange impacts of about $200 million.

Marker prices and average realizations

Nine Months

Canadian dollars, unless noted

2025

2024

West Texas Intermediate (US$ per barrel)

66.65

77.59

Western Canada Select (US$ per barrel)

55.70

62.15

WTI/WCS Spread (US$ per barrel)

10.95

15.44

Bitumen (per barrel)

69.68

75.60

Synthetic crude oil (per barrel)

92.44

102.95

Average foreign exchange rate (US$)

0.71

0.74

Production

Nine Months

thousands of barrels per day

2025

2024

Kearl (Imperial's share)

200

195

Cold Lake

150

145

Syncrude (a)

Kearl total gross production (thousands of barrels per day)

282

275

(a)

In 2025, Syncrude gross production included about 2 thousand barrels per day of bitumen and other products (2024 - 1 thousand barrels per day) that were exported to the operator's facilities using an existing interconnect pipeline.

Downstream

Net income (loss) factor analysis

millions of Canadian dollars

2024

Margins

Other

2025

1,130

260

(40)

1,350

Margins – Higher margins primarily reflect improved market conditions.

Other – Primarily due to unfavourable wholesale volume impacts of about $70 million, higher operating expenses of about $70 million driven by higher energy costs, and unplanned downtime of about $60 million, partially offset by lower turnaround impacts of about $100 million.

Refinery utilization and petroleum product sales

Nine Months

thousands of barrels per day, unless noted

2025

2024

Refinery throughput

400

395

Refinery capacity utilization (percent)

Petroleum product sales

466

469

Chemicals

Net income (loss) factor analysis

millions of Canadian dollars

2024

Margins

Other

2025

150

(60)

(17)

Corporate and other

Nine Months

millions of Canadian dollars

2025

2024

Net income (loss) (U.S. GAAP)

(770)

(99)

Current year results include identified items 1 of a $306 million after-tax ($406 million before-tax) non-cash impairment charge and a $249 million after-tax ($330 million before-tax) restructuring charge; results also reflect higher incentive compensation as a result of the higher share price.

Liquidity and capital resources

Nine Months

millions of Canadian dollars

2025

2024

Cash flows from (used in):

Operating activities

4,790

4,192

Investing activities

(1,331)

(1,421)

Financing activities

(2,577)

(2,145)

Increase (decrease) in cash and cash equivalents

882

626

Cash flows from operating activities primarily reflect favourable working capital impacts.

Cash flows used in investing activities primarily reflect lower additions to property, plant and equipment.

Cash flows used in financing activities primarily reflect:

Nine Months

millions of Canadian dollars, unless noted

2025

2024

Dividends paid

1,040

921

Per share dividend paid (dollars)

2.04

1.70

Share repurchases (a)

1,469

1,206

Number of shares purchased (millions) (a)

12.2

12.4

(a)

Share repurchases were made under the company’s normal course issuer bid program, and include shares purchased from Exxon Mobil Corporation.

On June 23, 2025, 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 25,452,248 common shares during the period June 29, 2025 to June 28, 2026. This maximum includes shares purchased under the normal course issuer bid from Exxon Mobil Corporation. 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 otherwise on June 28, 2026. Imperial plans to continue its acceleration of 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.

Key financial and operating data follow.

Forward-looking statements

Statements of future events or conditions in this report, including projections, targets, expectations, estimates, and business plans, are forward-looking statements. Similarly, discussion of roadmaps or future plans related to carbon capture, transportation and storage, biofuel, hydrogen, and other future plans to reduce emissions and emission intensity of the company, its affiliates and third parties are dependent on future market factors, such as continued technological progress, policy support and timely rule-making and permitting, and represent forward-looking statements. Forward-looking statements can be identified by words such as believe, anticipate, intend, propose, plan, goal, seek, estimate, expect, future, continue, likely, may, should, will and similar references to future periods. Forward-looking statements in this report include, but are not limited to, references to purchases under the normal course issuer bid and plans to accelerate purchases to complete the program prior to year end; the company’s strategies of increasing cash flow, delivering shareholder returns, growing volumes, lowering unit cash costs, returning surplus cash to shareholders, and leveraging the technology environment and the growth of global capability centres; the company’s restructuring plans and the expected impacts of such plans, including impacts on shareholder returns and value, access to global business and technology centres, improved performance, efficiency and effectiveness, and enhancing the company’s foundation for future growth; and the company’s Leming SAGD redevelopment project, including timing and anticipated production.

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 future energy demand, supply and mix; production rates, growth and mix across various assets; project plans, timing, costs, technical evaluations and capacities and the company’s ability to effectively execute on these plans and operate its assets, including the Strathcona renewable diesel project and the Leming SAGD redevelopment project; the adoption and impact of new facilities or technologies on reductions to greenhouse gas emissions intensity, including but not limited to technologies using solvents to replace energy intensive steam at Cold Lake, Strathcona renewable diesel, carbon capture and storage including in connection with hydrogen for the renewable diesel project, recovery technologies and efficiency projects, and any changes in the scope, terms, or costs of such projects; for shareholder returns, assumptions such as cash flow forecasts, financing sources and capital structure, participation of the company’s majority shareholder in the normal course issuer bid, and the results of periodic and ongoing evaluation of alternate uses of capital; for renewable diesel, the availability and cost of locally-sourced and grown feedstock and the supply of renewable diesel to British Columbia in connection with its low-carbon fuel legislation; the amount and timing of emissions reductions, including the impact of lower carbon fuels; the degree and timeliness of support that will be provided by policymakers and other stakeholders for various new technologies such as carbon capture and storage will be provided; receipt of regulatory approvals in a timely manner, especially with respect to large scale emissions reduction projects; performance of third-party service providers including service providers located outside of Canada and ExxonMobil global capability centres; refinery utilization and product sales; applicable laws and government policies, including with respect to climate change, greenhouse gas emissions reductions and low carbon fuels; the ability to offset any ongoing or renewed inflationary pressures; capital and environmental expenditures; cash generation, financing sources and capital structure, such as dividends and shareholder returns, including the timing and amounts of share repurchases; 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 Canadian and foreign government action with respect to supply levels, prices, trade tariffs, trade controls, the occurrence of disruptions in trade or military alliances, and wars; political or regulatory events, including changes in law or government policy, applicable royalty rates, and tax laws; third-party opposition to company and service provider operations, projects and infrastructure; competition from alternative energy sources and competitors who may be more experienced or established in these markets; availability and allocation of capital; the receipt, in a timely manner, of regulatory and third-party approvals, including for new technologies relating to the company’s lower emissions business activities; failure, delay, reduction, revocation or uncertainty regarding supportive policy and market development for the adoption of emerging lower emission energy technologies and other technologies that support emissions reductions; environmental regulation, including climate change and greenhouse gas regulation and changes to such regulation; unanticipated technical or operational difficulties; project management and schedules and timely completion of projects; the results of research programs and new technologies, including with respect to greenhouse gas emissions, and the ability to bring new technologies to scale on a commercially competitive basis, and the competitiveness of alternative energy and other emission reduction technologies; availability and performance of third-party service providers including those located outside of Canada and ExxonMobil global capability centres; environmental risks inherent in oil and gas exploration and production activities; management effectiveness and disaster response preparedness; operational hazards and risks; cybersecurity incidents including incidents caused by actors employing emerging technologies such as artificial intelligence; currency exchange rates; general economic conditions, including inflation and the occurrence and duration of economic recessions or downturns; 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’s most recent annual report on Form 10-K.

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.

Forward-looking and other statements regarding Imperial's environmental, social and other sustainability efforts and aspirations are not an indication that these statements are material to investors or require disclosure in the company's filings with securities regulators. In addition, historical, current and forward-looking environmental, social and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future, including future rule-making. Individual projects or opportunities may advance based on a number of factors, including availability of stable and supportive policy, technology for cost-effective abatement, company planning process, and alignment with partners and other stakeholders.

In this release all dollar amounts are expressed in Canadian dollars unless otherwise stated. This release should be read in conjunction with Imperial’s most recent Form 10-K. Note that numbers may not add due to rounding.

The term “project” as used in this release 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 release, unless the context otherwise indicates, reference to “the company” or “Imperial” includes Imperial Oil Limited and its subsidiaries.

Attachment I

Third Quarter

Nine Months

millions of Canadian dollars, unless noted

2025

2024

2025

2024

Net income (loss) (U.S. GAAP)

Total revenues and other income

12,049

13,259

35,798

38,925

Total expenses

11,348

11,656

32,165

34,261

Income (loss) before income taxes

701

1,603

3,633

4,664

Income taxes

162

366

857

1,099

Net income (loss)

539

1,237

2,776

3,565

Net income (loss) per common share (dollars)

1.07

2.33

5.47

6.67

Net income (loss) per common share - assuming dilution (dollars)

1.07

2.33

5.46

6.66

Other financial data

Gain (loss) on asset sales, after tax

(24)

(14)

Total assets at September 30

42,963

42,529

Total debt at September 30

3,997

4,115

Shareholders' equity at September 30

23,684

23,639

Dividends declared on common stock

Total

361

317

1,094

960

Per common share (dollars)

0.72

0.60

2.16

1.80

Millions of common shares outstanding

At September 30

496.9

523.4

Average - assuming dilution

505.1

531.9

508.6

535.3

Attachment II

Third Quarter

Nine Months

millions of Canadian dollars

2025

2024

2025

2024

Total cash and cash equivalents at period end

1,861

1,490

1,861

1,490

Operating activities

Net income (loss)

539

1,237

2,776

3,565

Adjustments for non-cash items:

Depreciation and depletion (includes impairments)

911

508

1,920

1,454

(Gain) loss on asset sales

(2)

(5)

Deferred income taxes and other

(200)

(231)

(186)

Changes in operating assets and liabilities

198

(310)

(634)

All other items - net

328

297

(2)

Cash flows from (used in) operating activities

1,798

1,487

4,790

4,192

Investing activities

Additions to property, plant and equipment

(504)

(486)

(1,373)

(1,444)

Proceeds from asset sales

—

Additional investments

—

(4)

—

Loans to equity companies - net

Cash flows from (used in) investing activities

(482)

(484)

(1,331)

(1,421)

Cash flows from (used in) financing activities

(1,841)

(1,533)

(2,577)

(2,145)

Attachment III

Third Quarter

Nine Months

millions of Canadian dollars

2025

2024

2025

2024

Net income (loss) (U.S. GAAP)

Upstream

728

1,027

2,123

2,384

Downstream

444

205

1,350

1,130

Chemical

150

Corporate and other

(654)

(23)

(770)

(99)

Net income (loss)

539

1,237

2,776

3,565

Revenues and other income

Upstream

4,109

4,609

12,351

13,329

Downstream

13,223

14,570

39,669

42,843

Chemical

343

255

1,071

1,092

Eliminations / Corporate and other

(5,626)

(6,175)

(17,293)

(18,339)

Revenues and other income

12,049

13,259

35,798

38,925

Purchases of crude oil and products

Upstream

1,612

1,766

4,843

5,479

Downstream

11,578

13,014

34,517

37,549

Chemical

231

157

724

673

Eliminations / Corporate and other

(5,645)

(6,203)

(17,337)

(18,405)

Purchases of crude oil and products

7,776

8,734

22,747

25,296

Production and manufacturing

Upstream

1,098

1,050

3,401

3,441

Downstream

462

423

1,385

1,279

Chemical

171

137

Eliminations / Corporate and other

Production and manufacturing

1,625

1,517

4,975

4,870

Selling and general

Upstream

—

Downstream

169

170

518

503

Chemical

Eliminations / Corporate and other

431

550

116

Selling and general

622

223

1,132

690

Capital and exploration expenditures

Upstream

353

300

972

857

Downstream

114

133

292

435

Chemical

Corporate and other

104

141

Capital and exploration expenditures

505

486

1,376

1,444

Exploration expenses charged to Upstream income included above

Attachment IV

Operating statistics

Third Quarter

Nine Months

2025

2024

2025

2024

Gross crude oil production (thousands of barrels per day)

Kearl

224

209

200

195

Cold Lake

150

147

150

145

Syncrude (a)

Conventional

Total crude oil production

457

442

431

419

Gross natural gas production (millions of cubic feet per day)

Gross oil-equivalent production (b)

462

447

436

424

(thousands of oil-equivalent barrels per day)

Net crude oil production (thousands of barrels per day)

Kearl

211

194

188

181

Cold Lake

116

114

120

110

Syncrude (a)

Conventional

Total crude oil production

399

381

378

358

Net natural gas production (millions of cubic feet per day)

Net oil-equivalent production (b)

404

386

383

363

(thousands of oil-equivalent barrels per day)

Kearl blend sales (thousands of barrels per day)

301

281

277

269

Cold Lake blend sales (thousands of barrels per day)

194

189

198

192

Average realizations (Canadian dollars)

Bitumen (per barrel)

68.22

77.24

69.68

75.60

Synthetic crude oil (per barrel)

91.12

104.41

92.44

102.95

Conventional crude oil (per barrel)

41.24

60.91

43.20

59.42

Refinery throughput (thousands of barrels per day)

425

389

400

395

Refinery capacity utilization (percent)

Petroleum product sales (thousands of barrels per day)

Gasolines

226

227

222

223

Heating, diesel and jet fuels

169

185

176

177

Lube oils and other products

Heavy fuel oils

Net petroleum products sales

464

487

466

469

Petrochemical sales (thousands of tonnes)

173

524

510

(a)

Syncrude gross and net production included bitumen and other products that were exported to the operator’s facilities using an existing interconnect pipeline.

Gross bitumen and other products production (thousands of barrels per day)

—

Net bitumen and other products production (thousands of barrels per day)

—

(a)

Gas converted to oil-equivalent at six million cubic feet per one thousand barrels.

Attachment V

Net income (loss) per

Net income (loss) (U.S. GAAP)

common share - diluted (a)

millions of Canadian dollars

Canadian dollars

2021

First Quarter

392

0.53

Second Quarter

366

0.50

Third Quarter

908

1.29

Fourth Quarter

813

1.18

Year

2,479

3.48

2022

First Quarter

1,173

1.75

Second Quarter

2,409

3.63

Third Quarter

2,031

3.24

Fourth Quarter

1,727

2.86

Year

7,340

11.44

2023

First Quarter

1,248

2.13

Second Quarter

675

1.15

Third Quarter

1,601

2.76

Fourth Quarter

1,365

2.47

Year

4,889

8.49

2024

First Quarter

1,195

2.23

Second Quarter

1,133

2.11

Third Quarter

1,237

2.33

Fourth Quarter

1,225

2.37

Year

4,790

9.03

2025

First Quarter

1,288

2.52

Second Quarter

949

1.86

Third Quarter

539

1.07

Year

2,776

5.46

(a)

Computed using the average number of shares outstanding during each period. The sum of the quarters presented may not add to the year total.

Attachment VI

Non-GAAP financial measures and other specified financial measures

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.

Cash flows from (used in) operating activities excluding working capital

Cash flows from (used in) operating activities excluding working capital is a non-GAAP financial measure that is the total cash flows from operating activities less the changes in operating assets and liabilities in the period. The most directly comparable financial measure that is disclosed in the financial statements is "Cash flows from (used in) operating activities" within the company’s Consolidated statement of cash flows. Management believes it is useful for investors to consider these numbers in comparing the underlying performance of the company’s business across periods when there are significant period-to-period differences in the amount of changes in working capital. Changes in working capital is equal to “Changes in operating assets and liabilities” as disclosed in the company’s Consolidated statement of cash flows and in Attachment II of this document. This measure assesses the cash flows at an operating level, and as such, does not include proceeds from asset sales as defined in Cash flows from operating activities and asset sales in the Frequently Used Terms section of the company’s annual Form 10-K.

Reconciliation of cash flows from (used in) operating activities excluding working capital

Third Quarter

Nine Months

millions of Canadian dollars

2025

2024

2025

2024

From Imperial's Consolidated statement of cash flows

Cash flows from (used in) operating activities

1,798

1,487

4,790

4,192

Less changes in working capital

Changes in operating assets and liabilities

198

(310)

(634)

Cash flows from (used in) operating activities excl. working capital (a)

1,600

1,797

4,773

4,826

(a)

Includes a $149 million unfavourable impact associated with the short-term component of the restructuring charge included in the identified items 1.

Free cash flow

Free cash flow is a non-GAAP financial measure that is cash flows from operating activities less additions to property, plant and equipment and equity company investments plus proceeds from asset sales. The most directly comparable financial measure that is disclosed in the financial statements is "Cash flows from (used in) operating activities" within the company’s Consolidated statement of cash flows. This measure is used to evaluate cash available for financing activities (including but not limited to dividends and share purchases) after investment in the business.

Reconciliation of free cash flow

Third Quarter

Nine Months

millions of Canadian dollars

2025

2024

2025

2024

From Imperial's Consolidated statement of cash flows

Cash flows from (used in) operating activities

1,798

1,487

4,790

4,192

Cash flows from (used in) investing activities

Additions to property, plant and equipment

(504)

(486)

(1,373)

(1,444)

Proceeds from asset sales

—

Additional investments

—

(4)

—

Loans to equity companies - net

Free cash flow

1,316

1,003

3,459

2,771

Net income (loss) excluding identified items

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. Net income (loss) excluding identified items per common share is a non-GAAP ratio which is calculated by dividing Net income (loss) excluding identified items by the weighted-average number of common shares outstanding, assuming dilution. The net income (loss) impact of an identified item for an individual segment 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.

Reconciliation of net income (loss) excluding identified items

Third Quarter

Nine Months

millions of Canadian dollars

2025

2024

2025

2024

From Imperial's Consolidated statement of income

Net income (loss) (U.S. GAAP)

539

1,237

2,776

3,565

Less identified items included in Net income (loss)

Impairments

(306)

—

(306)

—

Restructuring charges

(249)

—

(249)

—

Subtotal of identified items

(555)

—

(555)

—

Net income (loss) excluding identified items

1,094

1,237

3,331

3,565

Reconciliation of net income (loss) excluding identified items per common share, assuming dilution

Third Quarter

Nine Months

Canadian dollars

2025

2024

2025

2024

From Imperial's Consolidated statement of income

Net income (loss) per common share, assuming dilution

1.07

2.33

5.46

6.66

Less identified items included in Net income (loss) per common share, assuming dilution

Impairments

(0.61)

—

(0.60)

—

Restructuring charges

(0.49)

—

(0.49)

—

Subtotal of identified items per common share, assuming dilution

(1.10)

—

(1.09)

—

Net income (loss) excluding identified items per common share, assuming dilution

2.17

2.33

6.55

6.66

Cash operating costs (cash costs)

Cash operating costs is a non-GAAP financial measure that consists of total expenses, less purchases of crude oil and products, federal excise taxes and fuel charge, financing, and costs that are non-cash in nature, including depreciation and depletion, and non-service pension and postretirement benefit. The components of cash operating costs include "Production and manufacturing", "Selling and general" and "Exploration" from the company’s Consolidated statement of income, and as disclosed in Attachment III of this document. The sum of these income statement lines serves as an indication of cash operating costs and does not reflect the total cash expenditures of the company. The most directly comparable financial measure that is disclosed in the financial statements is "Total expenses" within the company’s Consolidated statement of income. This measure is useful for investors to understand the company’s efforts to optimize cash through disciplined expense management.

Reconciliation of cash operating costs

Third Quarter

Nine Months

millions of Canadian dollars

2025

2024

2025

2024

From Imperial's Consolidated statement of income

Total expenses

11,348

11,656

32,165

34,261

Less:

Purchases of crude oil and products

7,776

8,734

22,747

25,296

Federal excise taxes and fuel charge

380

661

1,344

1,908

Depreciation and depletion (includes impairments)

911

508

1,920

1,454

Non-service pension and postretirement benefit

Financing

Cash operating costs

2,248

1,741

6,110

5,563

Components of cash operating costs

Third Quarter

Nine Months

millions of Canadian dollars

2025

2024

2025

2024

From Imperial's Consolidated statement of income

Production and manufacturing

1,625

1,517

4,975

4,870

Selling and general

622

223

1,132

690

Exploration

Cash operating costs

2,248

1,741

6,110

5,563

Segment contributions to total cash operating costs

Third Quarter

Nine Months

millions of Canadian dollars

2025

2024

2025

2024

Upstream

1,099

1,051

3,404

3,444

Downstream

631

593

1,903

1,782

Chemicals

235

208

Eliminations / Corporate and other

438

568

129

Cash operating costs

2,248

1,741

6,110

5,563

Unit cash operating costs (unit cash costs)

Unit cash operating costs is a non-GAAP ratio. Unit cash operating costs (unit cash costs) is calculated by dividing cash operating costs by total gross oil-equivalent production, and is calculated for the Upstream segment, as well as the major Upstream assets. Cash operating costs is a non-GAAP financial measure and is disclosed and reconciled above. This measure is useful for investors to understand the expense management efforts of the company’s major assets as a component of the overall Upstream segment. Unit cash operating cost, as used by management, does not directly align with the definition of “Average unit production costs” as set out by the U.S. Securities and Exchange Commission (SEC), and disclosed in the company’s SEC Form 10-K.

Components of unit cash operating costs

Third Quarter

2025

2024

millions of Canadian dollars

Upstream

(a)

Kearl

Cold Lake

Syncrude

Upstream (a)

Kearl

Cold Lake

Syncrude

Production and manufacturing

1,098

427

253

369

1,050

461

238

313

Selling and general

—

Exploration

—

Cash operating costs

1,099

427

253

369

1,051

461

238

313

Gross oil-equivalent production

462

224

150

447

209

147

(thousands of barrels per day)

Unit cash operating cost ($/oeb)

25.86

20.72

18.33

51.42

25.56

23.98

17.60

42.00

USD converted at the quarterly average forex

2025 US$0.73; 2024 US$0.73

18.88

15.13

13.38

37.54

18.66

17.51

12.85

30.66

Components of unit cash operating costs

Nine Months

2025

2024

millions of Canadian dollars

Upstream

(a)

Kearl

Cold Lake

Syncrude

Upstream (a)

Kearl

Cold Lake

Syncrude

Production and manufacturing

3,401

1,376

810

1,051

3,441

1,459

809

1,055

Selling and general

—

Exploration

—

Cash operating costs

3,404

1,376

810

1,051

3,444

1,459

809

1,055

Gross oil-equivalent production

436

200

150

424

195

145

(thousands of barrels per day)

Unit cash operating cost ($/oeb)

28.60

25.20

19.78

50.66

29.64

27.31

20.36

52.74

USD converted at the YTD average forex

2025 US$0.71; 2024 US$0.74

20.31

17.89

14.04

35.97

21.93

20.21

15.07

39.03

(a)

Upstream includes Imperial's share of Kearl, Cold Lake, Syncrude and other.

1 Non-GAAP financial measure - see Attachment VI for definition and reconciliation

After more than a century, Imperial continues to be an industry leader in applying technology and innovation to responsibly develop Canada’s energy resources. As Canada’s largest petroleum refiner, a major producer of crude oil, a key petrochemical producer and a leading fuels marketer from coast to coast, our company remains committed to high standards across all areas of our business.

Source: Imperial