Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

The provision for income tax was as follows:


Expense (recovery)	2025		2024		2023
Current corporate income tax – North America (1)	$	2,193	$	1,654	$	1,853
Current corporate income tax – North Sea	(124)		(41)		(6)
Current corporate income tax – Offshore Africa	16		57		73
Current PRT (2) – North Sea	(184)		(134)		(58)
Other taxes	10		(5)		17
Current income tax	1,911		1,531		1,879
Deferred corporate income tax	887		520		267
Deferred PRT (2) – North Sea	(377)		(98)		(214)
Deferred income tax	510		422		53
Income tax	$	2,421	$	1,953	$	1,932

(1)Includes North America Exploration and Production, Oil Sands Mining and Upgrading, and Midstream and Refining segments.

(2)Petroleum Revenue Tax.

Schedule of Provision for Income Tax Reconciliation

The provision for income tax is different from the amount computed by applying the combined statutory Canadian federal and provincial income tax rates to earnings before taxes. The reasons for the difference are as follows:


	2025		2024		2023
Canadian statutory income tax rate	23.1%		23.2%		23.3%
Income tax provision at statutory rate	$	3,064	$	1,870	$	2,364
Effect on income taxes of:
UK PRT and other taxes	(551)		(237)		(255)
Impact of UK PRT and other taxes on corporate income tax	225		95		105
Foreign and domestic tax rate differentials	(94)		(112)		(104)
Non-taxable portion of capital losses (gains)	(93)		114		(35)
Stock options exercised for common shares	25		41		91


Revisions arising from prior year tax filings	1		43		(174)
Change in unrecognized capital loss carryforward asset	(93)		114		(35)
Other	(63)		25		(25)
Income tax	$	2,421	$	1,953	$	1,932

Summary of Major Temporary Differences, Movements in Deferred Tax Assets and Liabilities, and Net Deferred Income Tax Liability

The following table summarizes the temporary differences that give rise to the net deferred income tax liability:


	2025		2024
Deferred income tax liabilities
Property, plant and equipment and exploration and evaluation assets	$	13,620	$	12,647
Lease assets	754		316



Investment in North West Redwater Partnership	880		908


Taxable PRT for corporate income tax	457		336
Other	161		92
	15,872		14,299
Deferred income tax assets
Asset retirement obligations	(2,580)		(2,437)
Lease liabilities	(777)		(332)
Share-based compensation	(29)		(35)
Loss carryforwards	(4)		(36)
Unrealized foreign exchange loss on long-term debt	(52)		(125)
Deferred PRT	(1,126)		(795)

Other	(15)		—
	(4,583)		(3,760)
Net deferred income tax liability	$	11,289	$	10,539

Movements in deferred tax assets and liabilities recognized in net earnings during the year were as follows:


	2025		2024		2023
Property, plant and equipment and exploration and evaluation assets	$	667	$	443	$	196
Lease assets	62		(22)		1
Unrealized foreign exchange on long-term debt	73		(86)		28
Unrealized risk management activities	(14)		(1)		—
Asset retirement obligations	(73)		(279)		(292)
Lease liabilities	(67)		26		(3)
Share-based compensation	6		(4)		2
Loss carryforwards	47		381		235
Investments	—		(54)		(2)
Investment in North West Redwater Partnership	(28)		4		1
Deferred PRT	139		58		86
Taxable PRT for corporate income tax	(377)		(98)		(214)
Other	75		54		15
	$	510	$	422	$	53

The following table summarizes the movements of the net deferred income tax liability during the year:


	2025		2024		2023
Balance – beginning of year	$	10,539	$	10,183	$	10,114
Deferred income tax expense	510		422		53

Foreign exchange adjustments	52		(66)		16
Acquisitions (note 6)	188		—		—
Balance – end of year	$	11,289	$	10,539	$	10,183