Company: IMO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000049938-25-000015
Chunk: 132

Company: IMPERIAL OIL LTD
Filing Date: 2025-02-19
Form: 10-K
Item: Item 16
Chunk 132
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Property costs" are payments for rights to explore for petroleum and natural gas and for purchased reserves (acquired tangible and intangible assets such as gas plants, production facilities and producing-well costs are included under "producing assets"). "Proved" represents areas where successful drilling has delineated a field capable of production. "Unproved" represents all other areas. 

Standardized measure of discounted future cash flows

As required by the U.S. Financial Accounting Standards Board, the standardized measure of discounted future net cash flows is computed by applying first-day-of-the-month average prices, year-end costs and legislated tax rates, and a discount factor of 10 percent to net proved reserves. The standardized measure includes costs for future dismantlement, abandonment and remediation obligations. The company believes the standardized measure does not provide a reliable estimate of the company’s expected future cash flows to be obtained from the development and production of its oil and gas properties or of the value of its proved oil and gas reserves. The standardized measure is prepared on the basis of certain prescribed assumptions, including first-day-of-the-month average prices, which represent discrete points in time and therefore may cause significant variability in cash flows from year to year as prices change. 

Standardized measure of discounted future net cash flows related to proved oil and gas reserves 

millions of Canadian dollars2024 2023 2022 Future cash flows158,677 158,347 198,923 Future production costs(88,061)(101,640)(104,765)Future development costs(24,792)(24,074)(23,392)Future income taxes(10,196)(7,016)(16,872)Future net cash flows35,628 25,617 53,894 Annual discount of 10 percent for estimated timing of cash flows(17,461)(11,615)(28,340)Discounted future cash flows18,167 14,002 25,554 

Changes in standardized measure of discounted future net cash flows related to proved oil and gas reserves  

millions of Canadian dollars2024 2023 2022 Balance at beginning of year14,002 25,554 14,170 Changes resulting from:Sales and transfers of oil and gas produced, net of production costs(6,041)(4,918)(6,113)Net changes in prices, development costs and production costs (a)7,134 (16,908)23,215 Extensions, discoveries, additions and improved recovery