Capital Management

12 Months Ended

Dec. 31, 2023

Capital Management [Abstract]

Capital Management

33. Capital Management

The capital we manage is the total of equity and debt on our balance sheet. Our capital management objectives are to maintain access to the capital we require to operate and grow our business while minimizing the cost of such capital and providing for returns to our investors.

As defined in our internal policies, we target to maintain, on average, over time, a debt-to-adjusted EBITDA ratio of approximately 2.0x consistent with an investment grade credit rating. This ratio is expected to vary from its target level from time to time, reflecting commodity price cycles and corporate activity, including the development of major projects. We may also review and amend such policy targets from time to time.

We maintain one committed sustainability-linked revolving facility in the amount of US$4.0 billion. As at December 31, 2023, our US$4.0 billion sustainability-linked revolving credit facility was undrawn. As defined in the agreement, it includes a financial covenant that requires us to maintain a net debt-to-capitalization ratio that does not exceed 0.60 to 1.0 (Note 20(e)).

As at December 31, 2023, our debt-to-adjusted EBITDA ratio was 1.2x (2022 – 0.8x) and our net debt-to-capitalization ratio was 0.20 to 1.0 (2022 – 0.19 to 1.0). We manage the risk of not meeting our financial targets through the issuance and repayment of debt, our distribution policy, the issuance of equity capital and asset sales, as well as through the ongoing management of operations, investments and capital expenditures.