consolidated statements of income

(unaudited)

All financial data should be read in conjunction with the audited Consolidated Financial Statements of the Company contained in the 2006 Annual Financial Report.

Years ended December 31 (millions of C$ unless otherwise indicated)	2006	2005	2004
		(restated)	(restated)

Revenue
Gross sales	9,362	8,888	6,299
Less hedging (gain) loss	(66)	77	480
Gross sales, net of hedging	9,428	8,811	5,819
Less royalties	1,603	1,516	1,059
Net sales	7,825	7,295	4,760
Other	119	112	80
Total revenue	7,944	7,407	4,840
Expenses
Operating	1,651	1,338	1,091
Transportation	207	185	174
General and administrative	233	201	183
Depreciation, depletion and amortization	2,005	1,689	1,479
Dry hole	296	241	311
Exploration	318	275	238
Interest on long-term debt	166	163	173
Stock-based compensation	51	633	171
Other	(29)	39	89
Total expenses	4,898	4,764	3,909
Income from continuing operations before taxes	3,046	2,643	931
Taxes
Current income tax	752	978	427
Future income tax (recovery)	552	127	(143)
Petroleum revenue tax	290	184	128
	1,594	1,289	412
Net income from continuing operations	1,452	1,354	519
Net income from discontinued operations	553	207	135
Net income	2,005	1,561	654
Per common share (C$)
Net income from continuing operations	1.33	1.23	0.45
Diluted net income from continuing operations	1.29	1.20	0.44
Net income from discontinued operations	0.51	0.18	0.12
Diluted net income from discontinued operations	0.50	0.18	0.12
Net income	1.84	1.41	0.57
Diluted net income	1.79	1.38	0.56
Average number of common shares outstanding (millions)	1,092	1,104	1,149
Diluted number of common shares outstanding (millions)	1,122	1,131	1,170

Prior years have been restated to reflect the results of discontinued operations.