Acquisitions

For the three and six months ended June 30, 2026, acquisitions in the USA Operations were $14 million and $22 million, respectively, which primarily included properties with oil and liquids-rich potential.

On January 31, 2025, the Company completed the acquisition of approximately 109,000 net acres in the core of the Montney formation from Paramount Resources Ltd. for total cash consideration, including transaction costs, of approximately $2.308 billion (C$3.328 billion), after preliminary closing adjustments (the “Montney Acquisition”). The Company funded the Montney Acquisition with cash on hand, including proceeds from the Uinta divestiture as discussed below, and proceeds from short-term borrowings. The Montney Acquisition was accounted for as an asset acquisition as substantially all of the fair value of the assets acquired were concentrated in a single asset group, largely comprising proved oil and natural gas properties.

Divestitures

For the three and six months ended June 30, 2026, divestitures in the USA Operations were $2,822 million and $2,829 million, respectively, which primarily included the sale of Anadarko located in Oklahoma for proceeds of approximately $2,821 million, after preliminary closing adjustments and transaction costs.

For the three and six months ended June 30, 2025, divestitures in the USA Operations were $12 million and $1,896 million, respectively, which primarily included the sale of Uinta located in Utah for proceeds of approximately $1,882 million, after preliminary closing and other adjustments.

Amounts received from the Company’s divestiture transactions have been deducted from the U.S. full cost pool, except for divestitures that result in a significant alteration between capitalized costs and proved reserves in the country cost center. For divestitures that result in a gain or loss and constitute a business, goodwill is allocated to the divestiture. Accordingly, for the three and six months ended June 30, 2026, the Company recognized a loss of approximately $337 million, before tax, on the sale of the Anadarko assets in the U.S. cost center and allocated goodwill of $502 million to the transaction.