10-KPeriod: FY2025

IMPERIAL OIL LTD Annual Report, Year Ended Dec 31, 2025

Filed February 18, 2026For Securities:IMO

Summary

Imperial Oil Limited's 2025 annual report highlights a stable operational year with key activities across its Upstream, Downstream, and Chemical segments. The company maintained significant proved reserves, totaling 2,036 million barrels of oil equivalent, with a slight decrease in proved undeveloped reserves due to development activities. Production levels remained robust, with bitumen production from Kearl and Cold Lake showing steady performance, alongside synthetic crude oil output from Syncrude. Financially, the company navigated fluctuating commodity prices, with average bitumen prices seeing a decrease in 2025 primarily due to lower marker prices, while synthetic crude oil realizations also declined. Despite these price pressures, unit production costs for both bitumen and synthetic crude oil decreased, reflecting improved operational efficiencies. Imperial Oil continues to explore lower-emission business opportunities, including carbon capture, hydrogen, and lower-emission fuels, indicating a strategic pivot towards future energy demands while managing the complexities of evolving environmental regulations and market transitions.

Key Highlights

  • 1Imperial Oil holds substantial proved reserves of 2,036 million barrels of oil equivalent, primarily in Canada.
  • 2Net production of bitumen from Kearl and Cold Lake remained strong, with bitumen production at 310,000 barrels per day (net) and synthetic crude oil production at 68,000 barrels per day (net) from Syncrude.
  • 3Average realized prices for bitumen decreased in 2025 compared to 2024, primarily due to lower market prices, while synthetic crude oil prices also saw a decline.
  • 4Unit production costs for bitumen and synthetic crude oil decreased in 2025, demonstrating improved operational efficiencies and cost management.
  • 5The company continues to invest in lower-emission business opportunities such as carbon capture and storage, hydrogen, and lower-emission fuels.
  • 6Environmental capital and operating expenditures totaled approximately $1.7 billion in 2025, with expectations to increase in 2026, reflecting a commitment to environmental stewardship and regulatory compliance.
  • 7ExxonMobil maintains a significant ownership stake of approximately 69.6% in Imperial Oil.

Frequently Asked Questions

Imperial Oil operates across three main segments: Upstream (exploration, production of crude oil, natural gas, synthetic crude oil, bitumen), Downstream (refining, marketing of petroleum products), and Chemical (manufacturing and marketing of petrochemicals). The 2025 report indicates stable production in Upstream, with efforts to improve efficiency reflected in lower unit production costs. Downstream operations saw consistent refinery throughput, and Chemical operations reported stable sales volumes, with a noted reclassification impact in 2024.

In 2025, Imperial Oil experienced decreased average Canadian dollar realizations for bitumen and synthetic crude oil, primarily driven by lower global marker prices and WTI. Despite these price pressures, the company effectively managed production costs, with a decrease in unit production costs for both bitumen and synthetic crude oil, showcasing operational resilience.

Imperial Oil is actively pursuing lower-emission business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, and lithium. This strategic focus aims to diversify its portfolio and align with the global energy transition, supported by ongoing research and collaboration efforts.

Imperial Oil is making significant investments in environmental protection, with approximately $1.7 billion spent in 2025 on activities to protect land, air, and water, including remediation projects. Environmental expenditures are projected to increase in 2026. The company is also focused on developing and implementing technologies to reduce greenhouse gas emissions and adhering to federal and provincial emissions reduction programs.