v3.26.1
Property, Plant and Equipment, Net
 6 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
Property, Plant and Equipment, Net

10.

Property, Plant and Equipment, Net

 

 

 

As at June 30, 2026

 

 

As at December 31, 2025

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

Cost

 

 

DD&A

 

 

Net

 

 

Cost

 

 

DD&A

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USA Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proved properties

 

$

38,417

 

 

$

(30,469

)

 

$

7,948

 

 

$

50,573

 

 

$

(39,294

)

 

$

11,279

 

Unproved properties

 

 

8

 

 

 

-

 

 

 

8

 

 

 

316

 

 

 

-

 

 

 

316

 

Other

 

 

6

 

 

 

(2

)

 

 

4

 

 

 

20

 

 

 

(2

)

 

 

18

 

 

 

 

38,431

 

 

 

(30,471

)

 

 

7,960

 

 

 

50,909

 

 

 

(39,296

)

 

 

11,613

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canadian Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proved properties

 

 

21,757

 

 

 

(17,351

)

 

 

4,406

 

 

 

19,560

 

 

 

(17,163

)

 

 

2,397

 

Unproved properties

 

 

616

 

 

 

-

 

 

 

616

 

 

 

118

 

 

 

-

 

 

 

118

 

Other

 

 

129

 

 

 

(8

)

 

 

121

 

 

 

12

 

 

 

(5

)

 

 

7

 

 

 

 

22,502

 

 

 

(17,359

)

 

 

5,143

 

 

 

19,690

 

 

 

(17,168

)

 

 

2,522

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate & Other

 

 

812

 

 

 

(712

)

 

 

100

 

 

 

832

 

 

 

(723

)

 

 

109

 

 

 

$

61,745

 

 

$

(48,542

)

 

$

13,203

 

 

$

71,431

 

 

$

(57,187

)

 

$

14,244

 

 

USA and Canadian Operations’ property, plant and equipment include internal costs directly related to exploration, development and construction activities of $68 million, which have been capitalized during the six months ended June 30, 2026 (2025 - $76 million).

 

For the three months ended June 30, 2026, the Company did not recognize ceiling test impairments in the USA and Canadian Operations. For the six months ended June 30, 2026, the Company recognized before-tax non-cash ceiling test impairments of $1,485 million, comprising $1,111 million in the USA Operations and $374 million in the Canadian Operations. The non-cash ceiling test impairments primarily resulted from declines in the 12-month average trailing prices which reduced proved reserves in the USA Operations, and the 12-month average trailing prices used in the ceiling test at March 31, 2026, which were lower than the market prices used for the NuVista Acquisition on February 3, 2026, in the Canadian Operations.

 

For the three months ended June 30, 2025, the Company did not recognize ceiling test impairments in the USA and Canadian Operations. For the six months ended June 30, 2025, the Company recognized a before-tax non-cash ceiling test impairment of $730 million in the Canadian Operations, which primarily resulted from the 12-month average trailing prices used in the ceiling test at March 31, 2025, which were lower than the market prices used for the Montney Acquisition on January 31, 2025.

 

The non-cash ceiling test impairments are included with accumulated DD&A in the table above.

 

The 12-month average trailing prices used in the ceiling test calculations were based on the benchmark prices presented below. The benchmark prices were adjusted for basis differentials to determine local reference prices, transportation costs and tariffs, heat content and quality.

 

 

 

Oil & NGLs

 

 

Natural Gas

 

 

 

 

 

 

Edmonton

 

 

 

 

 

 

 

 

 

WTI

 

 

Condensate

 

 

Henry Hub

 

 

AECO

 

 

 

($/bbl)

 

 

(C$/bbl)

 

 

($/MMBtu)

 

 

(C$/MMBtu)

 

12-Month Average Trailing Reserves Pricing (1)

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2026

 

$

71.90

 

 

$

98.72

 

 

$

3.64

 

 

$

1.73

 

December 31, 2025

 

 

65.34

 

 

 

90.09

 

 

 

3.39

 

 

 

1.76

 

June 30, 2025

 

 

70.48

 

 

 

97.10

 

 

 

2.86

 

 

 

1.48

 
(1)
All prices were held constant in all future years when estimating net revenues and reserves.