SU

A month has gone by since the last earnings report for Suncor Energy (SU). Shares have added about 8.9% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Suncor Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers. Suncor Energy reported second-quarter 2026 adjusted operating earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.14 by 8.9%. Moreover, the bottom line increased significantly from the year-ago quarter’s reported figure of 51 cents. The outperformance was driven by stronger downstream margins, higher upstream price realizations and increased refined product sales volumes. The Calgary, Alberta-based integrated oil and gas company’s operating revenues of $12.7 billion beat the Zacks Consensus Estimate of $10.3 billion by 22.4%. The top line also increased approximately 47.3% year over year, aided by record refined product sales, higher refinery production and stronger benchmark crack spreads. Suncor Energy’s board of directors declared a quarterly dividend of 60 Canadian cents per share for its common shareholders of record as of Sept. 4, 2026. The payout, which remains unchanged from the previous quarter, will be made on Sept. 25. During the quarter, the company distributed a total of C$1.8 billion to its shareholders, including over C$1 billion in share repurchases and over C$700 million in dividends. It generated C$5.3 billion in adjusted funds from operations and C$4 billion in free cash flow. During the second quarter, Suncor Energy delivered upstream production of 760,900 barrels per day (bbls/d), down from 808,100 bbls/d in the year-ago quarter. However, refining throughput reached a second-quarter record of 470,600 bbls/d, compared with 442,300 bbls/d a year earlier, while refined product sales rose to 654,800 bbls/d from 600,500 bbls/d in the prior-year period. Upstream: The company recorded a total production of 760,900 bbls/d, down from 808,100 bbls/d in the year-ago quarter. However, the figure beat the consensus estimate of 755,000 bbls/d. Total Oil Sands production was 690,100 bbls/d, down from 748,400 bbls/d in the year-ago quarter. Total Oil Sands bitumen production was 815,200 bbls/d, compared with 860,800 bbls/d in the prior-year period. This decrease was caused by the planned turnaround at Firebag. Net synthetic crude oil and diesel production increased to 482,200 bbls/d from 438,200 bbls/d a year earlier, driven by fewer maintenance activities in the current quarter. Non-upgraded bitumen production decreased to 207,900 bbls/d from 310,200 bbls/d, primarily due to increased upgrader availability and decreased bitumen production. Oil Sands adjusted operating earnings were C$2.6 billion, up from C$926 million in the prior-year quarter, backed by increased price realizations. Exploration and Production (E&P) production rose to 70,800 bbls/d from 59,700 bbls/d in the year-ago period, driven by strong production across assets. Adjusted operating earnings in the segment increased to C$465 million from C$165 million, primarily driven by higher sales volumes and stronger price realizations. Downstream: The segment was the key driver of the quarter’s strength. Refining and Marketing adjusted operating earnings surged to C$2.1 billion from C$404 million in the prior-year quarter, primarily fueled by higher benchmark crack spreads, a FIFO inventory valuation gain and increased refinery production and sales volumes. Refinery utilization was 92%, up from 87% in the prior-year quarter, reflecting Suncor Energy’s increased refining network nameplate capacity of 511,000 bbls/d. Refined product sales climbed to 654,800 bbls/d, a 9% increase from 600,500 bbls/d in the prior-year quarter, supported by global market opportunities, including record jet fuel sales, while also delivering more domestic volumes through high-value retail channels. Moreover, the figure beat the consensus estimate of 596,000 bbls/d. Total expenses increased 20% to C$12.6 billion from the prior-year quarter. The cost of purchases of crude oil and products increased to C$6.4 billion in the second quarter of 2026, compared with C$5.1 billion in the prior-year quarter. Operating, selling and general expenses increased 8.1% to C$3.4 billion from the prior-year quarter, and Exploration expenses increased to C$17 million compared with C$4 million in the previous-year quarter. Suncor Energy generated C$5.3 billion in adjusted funds from operations, up from C$2.7 billion in the prior-year quarter. Free funds flow increased to almost C$4 billion from C$981 million. The company returned nearly C$1.8 billion to its shareholders, including C$1 billion in share repurchases and over C$700 million in dividends. Capital expenditures totaled C$1.3 billion, decreasing from the year-ago quarter of C$1.6 billion. As of June 30, 2026, Suncor Energy had cash and cash equivalents of C$5.4 billion and long-term debt of C$9.2 billion. Its debt-to-capitalization was 16%. Suncor Energy’s 2026 corporate guidance targets total production of 840,000-870,000 bbl/d, including 785,000-810,000 bbl/d from Oil Sands and 55,000-60,000 bbl/d from Exploration and Production. Refinery throughput is expected at 460,000-475,000 bbl/d, with utilization of 90%-93% and refined product sales of 600,000-620,000 bbl/d. Capital expenditures are guided at C$5.6-C$5.8 billion, led by C$3.8-C$3.9 billion for Oil Sands. Cash operating costs are expected at C$26-C$29/bbl for Oil Sands operations, C$33-C$36/bbl at Fort Hills and C$34-C$37/bbl at Syncrude. The guidance assumes Brent at $87/bbl and WTI at $80/bbl, while the company highlights operational reliability, maintenance execution, commodity prices and infrastructure as key factors that could affect results. In the past month, investors have witnessed a upward trend in fresh estimates. The consensus estimate has shifted 39.17% due to these changes. Currently, Suncor Energy has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock has a score of A on the value side, putting it in the top 20% for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Suncor Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Suncor Energy is part of the Zacks Oil and Gas - Integrated - Canadian industry. Over the past month, Cenovus Energy (CVE), a stock from the same industry, has gained 18.3%. The company reported its results for the quarter ended June 2026 more than a month ago. Cenovus reported revenues of $12.59 billion in the last reported quarter, representing a year-over-year change of +41.4%. EPS of $1.11 for the same period compares with $0.33 a year ago. Cenovus is expected to post earnings of $0.83 per share for the current quarter, representing a year-over-year change of +59.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. Cenovus has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Suncor Energy Inc. (SU) : Free Stock Analysis Report Cenovus Energy Inc (CVE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 9:30 a.m. ET Senior Vice President of External Affairs - Adam Albeldawi President and Chief Executive Officer - Richard Kruger Chief Financial Officer - Troy Little (no longer with company) Executive Vice President, Upstream - Peter Zebedee Executive Vice President, Downstream - Dave Oldreive Senior Vice President, Operational Improvement and Support Services - Shelley Powell Operator: Good day, and thank you for standing by. Welcome to the Suncor Energy Second Quarter 2026 Financial Results Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Suncor Energy's Senior Vice President of External Affairs, Mr. Adam Albeldawi. Please go ahead. Adam Albeldawi: Thank you, operator, and good morning. Welcome to Suncor Energy's Second Quarter Earnings Call. Please note that today's comments contain forward-looking information. Actual results may differ materially from the expected results because of various risk factors and assumptions that are described in our second quarter earnings release as well as in our current annual information form, both of which are available on SEDAR, EDGAR and our website, suncor.com. Certain financial measures referred to in these comments are not prescribed by Canadian generally accepted accounting principles. For a description of these financial measures, please see our second quarter earnings release. We will start with comments from Rich Kruger, President and Chief Executive Officer; followed by Troy Little, Suncor's Chief Financial Officer. Also on the call are Peter Zebedee, Executive Vice President, Upstream; Dave Oldreive, Executive Vice President, Downstream; and Shelley Powell, Senior Vice President, Operational Improvement and Support Services. Following the formal remarks, we'll open the call up to questions. Now I'll hand it over to Rich to share his comments. Richard Kruger: Thanks, Adam. Our second quarter involved completing major maintenance and positioning for a strong second half and that's exactly what we did. Before I will cover financial performance, I'll first discuss operational starting with safety. I'm pleased to report that our base plant mining received an industry safety award, the John T. Ryan Award for best-in-class safety performance as recognized by the Canadian Institute of Mining. This marks the second consecutive year of Suncor Mining team received this award, extremely proud of our team for this well-deserved recognition for excellence in an area that represents our highest overall priority. Moving to upstream production. 761,000 barrels a day in the second quarter. Before I continue, though, a pop quiz. What's the difference between the story of Noah's ark told in the book at Genesis and the Fort McMurray region in the second quarter of 2026? In Noah's ark the torrential rains stopped after 40 days and 40 nights. In Fort Mc, record rain and snow melt continued throughout the quarter, with total precipitation the highest in more than 30 years, 50% higher than the 10-year average and unfortunately, a materially affected mining productivity and quarterly production with an estimated 50,000 to 60,000 barrels a day impact in the second quarter. Clearly, this was an unusual one-off event, but we learned from it to build resilience for future events by improving our planning and preparation with new 48- and 72-hour weather outlooks, by stockpiling mine in the most -- or excuse me, in the most vulnerable areas within each mine, by presecuring critical minerals and equipment such as gravel and graders, by using technologies such as drones to monitor mine conditions real time. The takeaway is we can't eliminate weather risk, but we can better mitigate the impact. The good news, since late second quarter, things are back to normal, with production at expected rates. In fact, July's preliminary production is on the order of 870,000 barrels a day which would be our second highest July ever. Despite this year's weather over the last 3 years, second quarter production has averaged 59,000 barrels a day higher than the second quarter of the prior 3 years with better turnarounds and higher asset performance driving the results. Upgrader utilization, 93% in 2Q with our spring turnaround at base plant now complete. Year-to-date, we're at 94%, a new record, 1% higher than the first half of last year. Refining throughput, 471,000 barrels a day in the quarter, our second highest 2Q ever, 28,000 barrels a day higher than our previous best 2Q, which was last year. Montreal and Edmonton, our largest refineries led the way at 151,000 and 161,000 barrels a day, respectively, and a combined utilization of 99%. Overall, 2Q network utilization, 92% on our new higher rerated capacity of 511,000 barrels a day. With major maintenance activities completed at both Commerce City and Sarnia, year-to-date utilization is 95%, a new record, 4% higher than the first half of last year. Here again, over the last 3 years, '24 through '26, 2Q throughput has increased every year, averaging 78,000 barrels a day higher than the 2Q of the prior 3 years, continuing to raise the bar and improve performance. Product sales 655,000 barrels a day, like refining throughput, our highest second quarter ever, 54,000 barrels a day higher than the previous best second quarter, which was last year. Our eighth quarter in a row now with sales greater than 600,000 barrels a day after never achieving 600,000 barrels a day in any quarter over our history. A note of interest, jet sales were a record 51,000 barrels a day, 90% higher than our previous record of 27,000 barrels a day in the first quarter, achieved by fine-tuning our product slate to maximize global market value. Over the last 3 years, '24 through '26, 2Q sales have increased every year, averaging 101,000 barrels a day higher in the 2Q of the prior 3 years. Here again, raising the bar, improving performance. Over the last several years, we've talked a lot about turnaround performance, improving cost and schedule. As a reminder, historically, greater than 20% of our capital, roughly $1.25 billion per year was spent on turnarounds. During our I-Day in May 2024, we committed to reduce turnaround costs by $250 million per year over 3 years. We achieved that objective in 2 years versus 3 years. In mid-'25, we increased our ambition to $350 million per year in capital reductions. We now expect to achieve that in 2026 again earlier than expected. And this year, on March 31, we upped our goal to $400 million a year. With that context, I'll highlight 2Q performance focusing on Firebag, illustrating ways in which we continue to improve performance. Our Firebag turnaround involved major maintenance of the 2 largest of our 4 plants, 93 and 94. Combined, the 2 plants processed roughly 2/3 of the field's 250,000 barrels a day capacity. In our guidance for the year, we included an estimated impact of 85,000 barrels a day in the second quarter. This was our longest duration, biggest volumetric impact event of the year. The last turnaround of similar scope was completed in 2022, 4 years ago. It took 58 days at a cost of $150 million. This year, with a slightly larger scope, we completed the work in 44 days for $118 million, 24% reduction in duration, 21% reduction in cost. This work to achieve this started more than 2 years ago included innovations and equipment inspections and work practices. Examples using ROVs for internally inspecting long steam line sections, using drones for inspections inside large diameter pipes and vessels, circulating mineral oil inside process vessels to accelerate cleaning cycles. An idea by Firebag coordinators, Max Bombardier and Samantha snow. Max literally observed a contractor years ago using Johnson & Johnson baby oil to clean equipment. He contacted Samantha, the process engineer at the time, to research it. Samantha identified Petro-Canada lube product, we tested it over time. And this year, we applied it at scale in plants 93 and 94, cutting 2 full days off of vessel cleaning by one simple idea, save time, save money, kept people safer. This is one of a litany of examples of what Suncor people are doing today company-wide. Firebag results, lower cost, lower duration and faster production restoration. The second quarter impact was 60,000 barrels a day from the turnaround work, a 25,000 barrel a day improvement versus the plan. We also completed prep work for future tie-ins and further plan debottlenecking, working smarter today and smarter for tomorrow. The final prize is with the work we did, we will now be extending plant 93 and 94 next turnaround cycle to 5 years versus the historic 4 years, a total team accomplishment complements to Nabeel Jafri and his regional turnaround team, Miles Fleming and his operational management team and Jason Gaudette and his central support team working together focused, collaborative results-oriented. I've highlighted Firebag, but we also completed other second quarter work successfully. Base plant YouTube Coker completed in 46 days versus 60 days in 2021. $203 million cost, 10% less than the last effect at $225 million. Commerce City refinery completed in 50 days versus 74 days in 2021. We've got more work to do in the third quarter, but our second quarter results position us well for a strong second half. My overriding message, Suncor remains focused like a laser to perform, compete and win by operating standards, best-in-class performance ambitions clear definitive plans, priorities, short term and long term, a deep team-based results-oriented high-performance culture focused on what we can control and what we can execute. We believe we offer a compelling value proposition, reliable, ratable high-performance, reliable, ratable high cash flow, a literal machine built to deliver in all business environments. With that, I'll turn it to Troy. Harry Mateer: Thanks, Rich, and good morning, everyone. This quarter was a powerful demonstration of just how much Suncor's ability to generate cash has changed in the past 4 years. You may recall in our Q1 conference call that I highlighted that not only has our resilience improved, through the lowering of our corporate breakeven by $10 per barrel. The earnings power of today's Suncor at higher prices has been improved by an even greater measure. Proving this point, we finished the second quarter of 2026 with $5.3 billion in adjusted funds from operations, nearly double that of a year ago, and tying our all-time quarterly record set in the second quarter of 2022. The difference is that this time, WTI averaged $93 per barrel for the quarter, roughly $15 per barrel lower than in the second quarter of 2022, with an averaged $108 per barrel. Even more meaningfully on a per share basis, AFFO in the second quarter of 2026 of $4.52 per share is nearly 20% higher than the AFFO per share in that same historical quarter of 2022. We're delivering more cash flow and more value per share with less help from commodity prices. That's the result of building a stronger, more reliable and more profitable business over the last few years. And what's important to remember, this wasn't a perfect quarter. unprecedented weather conditions impacted production and left value on the table. Even so, we matched our all-time AFFO record and delivered our highest-ever AFFO and free funds flow per share. As we continue to advance our Investor Day plan, we see further opportunities to improve and grow earnings power from an already record level of performance. Now I want to highlight our downstream business, which has, again, taken advantage of a strong margin environment to generate record segment AFFO. Suncor generated record downstream AFFO of $2.3 billion this quarter, nearly $200 million above our previous record in the second quarter of 2022. And we did that with the New York Harbor 2-1-1 crack margin, net of the renewable volume obligation or RVO more than $10 per barrel lower than in the second quarter of 2022. Margin capture this quarter came in at 89%. Not bad, but that number [indiscernible] the underlying strength. This is because, unlike many of our peers, our benchmark does not deduct our [indiscernible] even though the gross margin we compare it to nets out our own RVO compliance costs. With average RVO pricing jumping $5 per barrel from the first quarter to the second, the single factor drove a variance of 10 percentage points of capture. Excluding this increase, we saw a very strong margin capture of 99% for the quarter. How did we achieve such strong margin capture? Our sales and marketing and supply and trading teams, again, turn to market dislocations into value, in particular, in export markets. Through ports in [ Berard ] in Montreal, we exported 56 cargoes in the first half of the year nearly matching the 58 cargoes shipped in all of 2025. That's our integrated model at work, providing flexibility, capturing stronger netbacks and turning market volatility into value. years of logistics and commercial buildup paid off once again this quarter. Now let me spend a minute on our balance sheet as well as our -- as capital allocation. Suncor ended the quarter with $4.5 million[sic] in net debt. 5% lower than where we started this decade and placing us at less than half of our guardrail of 1x net debt to cash flow at $50 per barrel WTI. Just like our low corporate breakeven, this amount of net debt gives the company a level of resilience that it has never had in its history. With our balance sheet in excellent shape, backed by a business that is able to generate meaningful excess funds across the commodity cycle, our focus is then on getting funds back to shareholders in a reliable and predictable way. From a shareholder return perspective, in the second quarter, we returned $1.8 billion to shareholders in the form of $1.1 billion in buybacks and $706 million in dividends. And starting this week, those buybacks will increase to $500 million per month or $1.5 billion per quarter, reflecting the substantial growth in excess funds this business is generating in the current environment as well as the benefits of the improvements we detailed at our recent Investor Day. This marks our second increase in shareholder returns this year. As a reminder, we entered 2026 with a buyback of $275 million per month. We then increased it to $350 million per month in April, and now we're increasing it again to $500 million per month. Put simply, the better this business performs, the more shareholders should expect to share in that success. And while we will always retain the flexibility to respond to material changes in market conditions, we believe that predictable and ratable shareholder returns can be achieved even as commodity prices inevitably move around. With that, I will turn the call back over so that we can take some questions. Adam Albeldawi: Thank you, Troy. I'll turn the call back to the operator to take some questions. Operator: And our first question will come from the line of Greg Pardy with RBC Capital Markets. Greg Pardy: Thanks for the rundown. Probably the most obvious question is just with the increase in the buyback now to $500 million per month, is that sort of a forever number? It certainly has good legs as you move into '27, just given free cash flow generation in the balance sheet. And let's just say the $500 million level you still have net debt kind of trending down to 0, which would be an incredibly good problem to have. But are there other levers that you could pull in terms of returning cash to shareholders? Richard Kruger: Troy? Troy Little: Yes, sure. Thanks, Greg. I think you should look at our actions to answer that question. Recall that in 2025, the crude price moved between the low 70s and the high 50s per barrel. Throughout that entire time, we kept our buyback constant at $250 million a month until we actually increased it in December by 10%. And that increase came at the lower part of that year's commodity cycle. More recently, look at Q2, we started the quarter with WTI at over $100 per barrel and ended the quarter was at under $70 per barrel. Our buyback continued ratably and predictably at $350 million per month. So like any company, we have to maintain some flexibility for extreme events, but it should be clear by now that we want to deliver something that's unique and has value to investors, and that is predictable and ratable shareholder returns through the commodity cycle. And that's not the only thing we're doing that we think is unique. We also do not have an absolute dollar net debt target that includes thresholds for when we pay shareholder returns. We don't because we don't think shareholder return should be driven by what our debt is, but rather should be driven by what our performance is. That is why we instead have a guardrail of 1x net debt to cash flow at $50 per barrel WTI. That allows us to manage our leverage alongside how our underlying business evolves. So as to specific timing, I would recommend you all take your view of commodity prices, even if it's a low one and run it through your models for the foreseeable future with a $500 million a month buyback and see how long that would last. That duration is what a rock-solid balance sheet and a top quality business can offer. Greg Pardy: Okay. Well, I'm glad I asked that question. I think we got the answer. Rich, [indiscernible] reflection with like a multitude of things you've already kind of come up with in terms of mitigation and how you're prepared for this. I know you're always thinking through things. Are there any other just observations, the earnings from the quarter operationally, whether it's upstream or downstream and how you're continuing to safe the company for resilience that you're set to share. Richard Kruger: Greg, you're cracking up quite a bit, but I think I got the gist of it. And I'm going to turn it over to Peter in just a second to use an upstream example. What we're seeing as we've institutionalize a high-performance culture in the organization, we can't always stop things from happening or things we can't control, but we can very much control we respond and recover when things off plan happen. And I think the example of the rainfall is a good example in it that we stepped back and learned from that and just didn't accept what we were given and said, how can we change this outcome in the future? And Peter, you and I were talking yesterday, why don't you share a further example of what we're doing to learn as we go on. Peter Zebedee: Yes. Thanks for the question, Greg. I would say we've really taken the time to step back and understand what the learnings are from the significant rainfall events that we saw through the first quarter and really start to proceduralize even more our response to adverse weather conditions. Rich mentioned a couple of them in his comments there, but strategically placing stockpiles of ore in around the mine, strategically placing materials for road construction and support equipment to make sure our road networks come up quicker are just a couple examples of that. We've also looked at implementing technologies such as drone technologies and overlaying that on some maps to look at where are we most vulnerable and where do we have to deploy our equipment more rapidly. And we've seen some success post Q2 in recent rainfall events where our response times are much quicker. Our ability to ramp back up to full production capacity has increased significantly. And maybe one more example, Greg, we had talked about on previous calls, implementation of a mud mode in our AHS system in base plants. In fact, we've now moved to mud mode 2.0 and seen a lot of success in reducing the slippage events on the trucks as a result. In fact, the slippage events were down 80% relative to the initial version of this software, and that's -- I think that's a good example of the continuous improvement mindset that our teams have, working collaboratively with our vendors to be able to do that and deploying that at scale. So lots of learnings and pleased with the results in -- with recent performance. Richard Kruger: One other thing I'll just add to that. Thanks, Peter. We have the ELT, I'm looking around the room, we have a text thread that we're we communicate with pretty continuously. We'll talk about everything from flames [indiscernible] to movie quotes to performance. And looking at Dave, as I say this, Dave will share with us a particular unit at a refinery that went down. And about the time I catch up with the text thread, he's already put another note in there, and we fixed it. We're back on at full rates again. It's just an organizational capability that rallies and focuses when something goes off plan to correct and rectify it ASAP. And we can give you dozens of examples of that are different today than they were at points in time in the past. Operator: And that will come from the line of Dennis Fong with CIBC World Markets. Dennis Fong: And I appreciate the prepared remarks there, just around how you're managing through a very tough quarter. My first question [indiscernible] back in the Investor Day, where you discussed thoughts around near-term growth as well as long-term resource development, but with like a large focus on value and volume. As we look towards scenarios where egress out of Western Canada have the potential to increase and increase quite significantly, how does that necessarily maybe shift or shape your thoughts around managing options to either accelerate development from some of your institute opportunities at [indiscernible] and Firebag? Or how have your teams maybe found opportunities to showcase that same amount of growth, but maybe with like lower capital or more efficient deployment of that capital? Richard Kruger: Thanks, Dennis. It's like you sat in on our Board meeting last week. You recall in -- on May -- or excuse me, March 31, we defined or describe that plan as largely within our control. It didn't need fiscal and regulatory reform. It didn't need new pipelines. This is something we had confidence that we could deliver and execute. Of course, it was underpinned by the large high-quality resource base, predominantly in situ. That gives us a lot of optionality. We're very much embracing this design one, build multiple strategy approach for a whole host of reasons. But today, we're also looking at what's the right cadence of that. We have optionality to accelerate that if growth were to be valued by us and our shareholders. We're not -- we've not shifted to that mode at all, but we have that flexibility. Certainly, things in Canada have been more encouraging over the last year or so than the prior decade. But the beauty with us is we have the optionality to go at a quicker pace at a ramped-up growth if and when market conditions would say that is the right strategy. We're not there yet but we're paying very close attention to the signposts and doing some prework that would preserve our options to do that if we selected it. Dennis Fong: Great. I appreciate that background. And I promise I was not sitting in your Board meeting. Richard Kruger: You're welcome. You're welcome any time, Dennis. Dennis Fong: I appreciate that. I want to ask a secure question just on regional integration. Clearly, through the second quarter, that benefited a lot of situations, and we'll call it avoiding, we'll call it the worst outcomes associated with the unprecedented weather conditions that you guys experienced in the second quarter. Can you talk towards, again, I know that's, frankly, a backbone and a staple of the way that you think about operating your assets. But can you talk towards, again, in light of the potential growth optionality and even maybe the increased demand for [indiscernible] or even solvent for some of the technologies you're planning to employ? Can you talk towards how that regional integration really helps drive, we'll call it, confidence in terms of your ability to execute on some of those operations? Richard Kruger: I've been known to say corney slogans now and then there's integration, there's Suncor integration, and you hit right on it. And of course, it's the unique level of [indiscernible]. I'm looking down the table really, Peter, Shelley, Dave, you all can comment on this because it's how your operating committee, how you work day in, day out, maximize value. Peter, do you want to start? Peter Zebedee: Yes. Maybe I'll start by saying, yes, you're right that we did move a large amount of -- over 90,000 barrels around the region in the quarter that certainly helped to make sure we got the bitumen to those upgraders and maintain high upgrader utilization. Syncrude was a classic example of that, where we saw impacts due to wet weather conditions in the Syncrude mines. We move Firebag bitumen over and cut the upgraders running full. And that's really the name of the game. We -- having that operational flexibility for us, we now as a competitive differentiator, moving lots of Fort Hills barrels into the base plants as well. Just to touch on the diluent side, we are fully integrated. We make our diluent at the base plant upgrader. We can ship it up to Firebag via a pipeline that's in place and operating today. We actually have a spare line in the ground as well today should we choose to scale up, and that will be one of our in-situ development projects that we're going to bring on here in the next couple of years. And so it's one thing being integrated on the bitumen side, being integrated on the upgrading side between upgraded products, but also on the diluent side, which will help our in-situ operations. So yes, it's very handy to have as an operator when things don't quite go as expected. Richard Kruger: Just to double down on that, the flexibility that provides us and the resiliency, market conditions, reduces our reliance on third-party providers and any operational upsets they may have that flexibility is just is tremendous, and you see it in our results. Dave, why don't you make a comment a little bit as well. And I'm thinking in terms of the integration of the upstream with Edmonton and the flexibility it provides. Dave Oldreive: Yes, absolutely. So we integrate our Edmonton refinery directly with our oil sands operations. We run a single what we call it linear programming model to optimize that. Think of that as a big AI tool that optimizes the region with the Edmonton refinery and all the way to our markets and to our export sales globally on our domestic markets. With that capability, we can do a lot of interesting things. One of those things is if there's an upside in the region, we can adjust the [indiscernible] Edmonton take some special streams to help you the base plant operator full, for example, while Edmonton refinery is optimized. We also have diluent processing capability. So if we're short of diluent, we can send some diluent up north. But more interestingly, we can run intermediate streams, special blended crudes to fill at the Edmonton pots and pans, and you'll see that in this quarter. Rich mentioned we had record throughput. We also had record sales. And you'll note that the record sales are much a much bigger gap than the record throughput and the difference, a large part of that difference is these intermediate streams that we ran to Edmonton refinery over the quarter. 10,000 to 15,000 barrels a day is our capability. We continue to grow that. And that really translates into pure diesel production that we sell really globally to our export markets around the world. So really from the oil sands, all the way to diesel sales in Europe and Panama and in Asia, we integrate this business. Richard Kruger: So if we invited you inside our tent, what you'd see is operations teams driving the safety, integrity, reliability at an asset-specific level. But we've added as our performance has reduced variation elevated integrated teams that are continually looking at maximum value. Where molecules move, how do they compensate when we have an operational upset, again, the whole goal is maximize value. At an operational level, you can't always see that. But when you rise above it, you see the interconnectedness. And that is a difference today than the past. And you see it in our results, I thought Troy described it very well. The ratable, predictable nature that has less reliance on underlying market conditions. It's how we work. Operator: That will come from the line of Menno Hulshof with TD Cowen. Menno Hulshof: I'll start with a question on global product sales, which were clearly very strong and continue to increase, where do you stand in terms of building out access to global markets? And would you frame this as a more sustainable improvement to the business? Or would you characterize it as being more transitory and largely driven by ongoing volatility in pricing for global refined products? Richard Kruger: Thanks, Menno. I'll start and then Dave will comment further. The strategy we put in place didn't just start with the recent volatility in global markets. We had a vision a few years ago of a broader presence that can open up markets and open up avenues of value for us. So at our Investor Day, we talked about how a few years ago, we could sell in 20-some countries around the world. And now that's in the mid-40s. We have described how we've expanded our logistical capabilities with time charters on vessels so we can move products and crude off of the West Coast, products off of the East Coast. So it has been a several year in creation. And what you've seen now most recently, you've seen the benefits of that. Dave, you want to comment a little bit about particularly this kind of -- do we think there's a structural benefit here versus is this a one-off transient? And I'll tell you what the right answer is but... Dave Oldreive: I think, I know. Yes, Menno, I'll comment a little bit on our -- Rich commented on how we've been building out our trading platform over the last number of years, selling into multiple countries around the world. And I've commented before how we have unique capacity and capabilities to export our [indiscernible] coast. So I'll talk about each coast separately. Off the West Coast, we've been -- that is our terminal in [indiscernible] rail and pipeline those molecules, almost all diesel from Edmonton refinery, a highly competitive asset that can sell globally at competitive netbacks. We've been growing that logistic. Just to attention to detail, a constraint busting mindset, the integrated team kind of optimizes our railroading, our rail movements, our rail offloading. We blend that with the pipeline shipments that come in on TMX. We optimize vessel loading windows, and we maximize a sufficient logistics. And with that, last year, we could do 3 to 4 cargos a month on a good month. The end of last year and into early '26, through that constraint busting activity, we've moved that up to 5 cargos a month. And in May, we actually achieved in the calendar month of May, we achieved for the first time 6 cargos a month. So yes, it is structural. We can continue to do more from that efficient logistics and that competitive asset base, and then we market that through a trading organization off the West Coast. On the East Coast, we have similar capabilities. We have our new [indiscernible] asset, which we can rail supply. We also have our Montreal refinery, which we can what I call Orbit shift, we can decide how much of Montreal refinery supplies domestically versus exports. And the big story for Montreal in this quarter is our ability to export jet. Jet fuel, as you -- as you know, [indiscernible] kind of late first quarter into the second quarter, and we recently started making Jet fuel in Montreal really in the fourth quarter of last year and continued into the first quarter. That was meant to be less than 5 kbd domestic sale opportunity that we would ultimately grow. In the in the first -- in the second quarter, Nelson Couto from Montreal, he's production control, coordinator in Montreal. He went out boots on the ground, walked the lines, looked around and said, I need to figure out how to export jet. What's the logistic that can do that and found a zero-cost opportunity to go export jet fuel out of Montreal. And we were able to then take a #1 diesel stream, which also meets jet qualities, converted to jet qualities and continue to export. So we exported 22,000 barrels a day of Jeff fuel out of Montreal. That's a structural capability that we can continue to do if the market is there. The market this time last year, that was 0. And our vision was less, was 5 kbd. So we're -- we can now do 25,000 barrels a day of jet fuel out of Montreal. Richard Kruger: So lots of opportunities there to continue that program. So that's a long answer for both of us. This says this is a structural change that will add value on an ongoing basis long term. Menno Hulshof: Terrific. Yes. And maybe second question is on the Commerce City refinery. In the past, you've suggested that you may not necessarily be married to it, but more recently, you've suggested that the asset is performing at a higher level and holding its own. So there's a couple of questions here. How much of that is stronger regional tracks versus fundamental improvements to how the asset is operated? And then just in terms of refined product egress out of the Rockies, we're seeing some initiatives that point to improved egress from the Rockies to the West Coast and how is that all dovetailing into how you're thinking about the longer-term fit for that asset? Richard Kruger: Just for clarity, I've never used the word married on any asset. That's a very high bar. What we talked about -- do certain assets fit in the family photo. And make no mistake, Dave and I, a few years ago, went to Commerce City, and we took a photo and showed it landscape in portrait and said, if you want to stay in it, here's what you need to do and what you need to deliver. And that facility and that team has delivered, improving their performance, fundamental safety, operational integrity, reliability, cost discipline, still work to do but they have changed their fate in a material way. Now we also have some market benefits in our favor. But as we look at it, and we'll differentiate from that, we'll take the market [indiscernible]. But we really want to look at our underlying performance, and that facility is value to us has grown materially based on their performance, and we think that is also sustainable. I don't know, Dave, if you have anything specific on egress or the Rockies to add to that? Dave Oldreive: Maybe just a couple of quick comments. So yes, Menno, you're absolutely correct. We've seen some -- with the growing short in California, particularly the Los Angeles area, we're seeing refiners in that Mid-Continent kind of West Texas and into the Mid-Continent, find ways to move product towards markets that have historically been supplied by California refineries. We see that as constructive for Commerce City margins over time as that -- as those -- as those opportunities present themselves. We've also started our own ability to move product out of the region. We started rail loading gasoline, and we can move that to other markets outside. And with that, we're seeing -- Rich mentioned, we've seen Commerce City turnaround performance. The first couple of years was really focused on safety and reliability and had to get that right. And then in recent months, we've been focused on profitability and pleased to say we set a record all-time rate at Commerce City back in June, and we think we'll beat that again in July. So Commerce City is looking like a pretty good asset at the moment. Operator: And that will come from the line of Manav Gupta with UBS. Manav Gupta: It's great to see that despite all the weather challenges that were thrown at you, you did not change your upstream guidance and given your track record in the last 2 or 3 years, then most likely, you'll still come in at the top end of the guide. So help us understand a little bit, should we model a very strong rebound in upstream volumes for the third quarter, given that you did not change your guide at all. Richard Kruger: Our second half is typically when you get outside of turnarounds, the strongest time of the year and there's a host of reasons major maintenance tends to get behind us, weather the -- so we expect a much stronger second half than first half, that's built into our plans. And in terms of guidance and stuff, I've broken down [ old athlete ] at half time, I've never given up on anything. And there's no reason that we should -- well, we fully expect that we will meet our guidance this year. And you've noted the last few years on the higher end of it, we have high expectations. So we expect a very strong second half. Manav Gupta: We are absolutely confident you'll hit the top end. My second question is -- I always appreciate your outlook on the refining macro. You have -- in the North America, you report strongest margins because you have an integrated business model. Can you help us understand what you're seeing in terms of refining macro out there and the sustainability of these cracks and how Suncor benefits from them? Richard Kruger: Go ahead, Dave. Dave Oldreive: Thanks, Manav. You've said -- you mentioned sustainability. We've seen record cracks. We've seen sustained cracks. And we're seeing the refined product market really be much more resilient than the crude market to geopolitical news. It's largely a distillate story. Diesel and jet, we've talked about how we sold diesel and jet to markets around the world. Hormuz is a big piece of that, but also Russia. We're seeing Ukraine is continuing to be very proficient at taking out Russian infrastructure and Russian refineries are at greater than 20-year lows in output, and we took -- they took about 1 million to 2 million barrels per day of diesel off the market with an export band. So we see that continuing to be resilient for at least the medium term. For Suncor, that our downstream business weren't designed to win in any environment, but we sure like good diesel cracks. This is set up for our success. Our integrated model, as we talked about, can deliver both the full value all the way to the customer. And we continue to grow diesel production preferentially over gasoline, which is also a good fit in this market. So we'll continue to leverage our trading platform to be flexible and sell globally around the world as well as domestically, and we're not done yet. Manav Gupta: And we appreciate you raising the buyback again this year. Investors really appreciate that. Operator: And that will come from the line of Doug Leggate with Wolfe Research. Douglas George Blyth Leggate: Rich, I've got 2 things perhaps, some of -- one topic has already been hit already, which is growth. But if I tried to frame it like this, some of your peers appear to be at least considering an acceleration in growth projects. You've obviously laid out your 100,000 barrel a day organic thesis through 2028. But I guess my question is not so much about individual projects or your appetite, but it's really more about the reinvestment rate. When you think about the appropriate level of sustaining capital and growth capital on top of that, how should we think about the reinvestment rate as the macro environment changes perhaps over time? Richard Kruger: On growth, Doug, the way I would describe the things we're doing because of this resource base we've described because of our design one build multiple strategy, we're doing preparatory work, whether that's shooting seismic, drilling delineation wells. So we have optionality. And that -- we were doing that candidly before the market disruptions of this spring. We're just doing that because we think that's good business. And when it gets then to capital allocation, I hope we've increasingly demonstrated that we very much believe in a measure once cut twice. We are -- we're not only frugal, but very thoughtful on what we spend. And the model we've described, how we see ourselves when we look in the mirror, this industrial machine like that has incredible resilience in kind of any and all business environments, the ability to deliver, so you can become a foundational part of an investment portfolio. That's who we are. So it's hard to see us maneuvering around reinvestment rates or capital year-to-year to chase a rabbit. We just -- we don't see that. We look longer term. We are -- you're talking to our -- I'm going to -- there's a few people that will hear this, that I don't mean this, who it is you're talking to our corporate planning department right here. We look at oil prices over the last 25 years. They averaged about $65 a barrel, we say, what are they going to average the next 25? $65 sounds like a reasonable number. We plan our business on that. We have more than that, we certainly enjoy it. We share it with shareholders. And if we have less than that, which we do, we're strong, resilient, and we don't have to slam on the brakes. So we just -- we really spend a lot of time thinking about the business we're in and not trying to overreact or pursue the flavor of the day. I'm not sure if I got at your question a little bit, Doug, but I think it's important that when you think about capital allocation, you understand how we see our business because there'll be a direct correlation between that vision and capital allocation. Douglas George Blyth Leggate: I guess we'll wait on the strategy update or the Investor Day later for the year. But it's a good -- great answer. Thank you for that, Rich. My follow-up is, look, there's a lot of products about share buybacks. And we know that share buybacks are a means to an end. What we care quite honestly, more about on a business like yours is dividend growth per share where buybacks obviously play a role. My question really is there for -- when you think about cash returns, you're really power getting that $38 breakeven number by 2028. What's the split in your thinking between the role of buybacks and the potential to raise that dividend more aggressively in the context of cash returns as opposed to just opining on whether buybacks are good or bad? Richard Kruger: A fair question. And I'll ask Troy to expand upon it here in a second. When we start -- as we went over the last 3 years from a low to mid-$50 breakeven to the low to mid-$40s, we feel very comfortable where we are now that we are strong, resilient. The integration gives us level of less volatility in market conditions. So it becomes less about a specific number targeting. In the Investor Day, we kept with the same kind of [indiscernible] to describe a $2 billion increase in free funds flow, $5 a barrel reduction. But we're not wed to we're going to get to $38 or $39. We are wed to creating value in it. So the balance between how we return to shareholders, dividends or buybacks. It's not like it's absolute, but let me ask Troy to comment. We talk a lot about this. Troy, do you want to offer some additional insight? Troy Little: Yes. Thanks, Rich. We do talk a lot about it. I mean our shareholders really have a diverse set of objectives. While the vast majority favor buybacks is the preferred method of receiving shareholder returns, some others have a preference for dividends or a balance of both. Now my career, I found that keeping the most shareholders happy is generally the best path to success. So you can count on us monitoring both methods of returning cash to shareholders to ensure that each is optimized, including from a competitiveness point of view, so as to create the greatest demand for our stock. Richard Kruger: And we like Doug to be happy to. Douglas George Blyth Leggate: I think you know where we stand on this topic, but I appreciate the time. Richard Kruger: Yes. And I think just one last comment on that. We don't have -- we're not governed by hard and fast targets, thresholds, rules. We want to be outstanding operational executives and outstanding financial executives. We look holistically, we talk holistically, we engage our Board. And again, this is one of these kind of behind the scenes that you don't see, but it's not -- when we get to x this happens, when we get to why that happens, we really -- we think we're -- we can be better than that, looking at market conditions, our unique financial position, our competitive strength. And Troy said it well, we're trying to appeal to a very broad set because we think we can and should be that foundational investment from [indiscernible] investor. Operator: And that will come from the line of Patrick O'Rourke with ATB Cormark Capital. Patrick O'Rourke: Congratulations on the strong quarter there. Just wondering, I guess, you have a little bit of turnaround activity in the downstream unit in the third quarter here. Obviously, with the second quarter, we saw a bit of a push to strike while the iron is hot and despite challenging conditions maximized to the extent possible output from the mines. I'm wondering when you think about the scale and the scope of the turnarounds here in the third quarter and where cracks are presently, what your flexibility around sort of your approach to that is in this environment? Richard Kruger: I'll make a comment, then I'm going to look down the table [indiscernible]. One of the things we have talked about from day one, the importance of safety and operational integrity. And so we -- we want to do the work we need to do to maintain our assets in the right condition. We don't want to do more, and we certainly don't want to do less. But we're also not looking at okay, margins are high. Can we slide this a year? Can we slide this 6 months? That introduces risk that we just don't think is prudent. Are we looking at optimizing things? Certainly. But not any material movements because, wow, the crude price is high or cracks are high. So we won't change the oil in the [indiscernible] this month, we'll wait till next month. That's just not how we do things. Dave, Peter comment quickly on the third quarter, particularly in our frame of reference, okay, the work we did in the second quarter, we had some pretty material things, how do you see the third quarter in terms of either scope and/or complexity relative to what we just accomplished? Dave Oldreive: Sure, I can start. So Dave here. For the downstream, we have 2 turnarounds planned. Montreal has some crude units offline in the third quarter. We would expect that to be a fairly minor scope of work, pretty typical turnaround activity. And I'd expect to do that in less duration than prior events, and we would set ourselves up for longer intervals going forward. On the Edmonton turnaround, that's a [indiscernible] cracker turnaround, those are typically fairly complex turnarounds, but the team is well prepared. They've the turnaround planning milestones well ahead of schedule and have been optimizing that plan for the last 6 months. So we're in pretty good shape to execute that. We're going for flawless on that one. Richard Kruger: Peter? Peter Zebedee: Yes. In the upstream, we have one major event left in the third quarter, and that is the Syncrude coker outage. It's -- I characterize it as a routine outage plan to start here August 20, planned for 50 days and it's extremely well-planned event. All of our turnaround preparations have been going on for months now. So we're confident that we're ready to execute that. And the team's obviously got some stretch targets that they're shooting for in that event. So look forward to that. Richard Kruger: More work to do in the third quarter, less overall than the second quarter, confidence in our preparation and expectations on execution and success are extremely high, and that positions us for what we believe will be a sprint in the second half of the year to deliver outstanding results. Patrick O'Rourke: Okay. Great. And then maybe this is a broader strategic question. You kind of touched on this a little bit. But in terms of the growth opportunity, the MoU, the trilateral MoU, what needs to happen there? And then if this opens an opportunity whether you need to underwrite a pipeline to access growth or something of that nature, how prepared would you be to sort of push forward or accelerate some of this future growth if it's sort of a window of opportunity there for Suncor? Richard Kruger: For those that aren't as familiar here, a month or so ago, 5 oilsands companies, the alliance. We signed this nonbinding MoU with the federal and provincial government. It outlined kind of shared ambitions around carbon policy, expanded market access and the fiscal and regulatory conditions that would be required to attract capital and incent growth. There's a lot of work to do to turn this 9 unbinding set of ambitions into definitive agreements. And as I said earlier, it's a very different mood in tenure to date than it has been in the past. So we're encouraged by that. But it in terms of how it may or how it has or may affect our plans, that's still to be determined. I would just echo Patrick a little bit of some of the comments I said before is we look at the business long term. We want to be very thoughtful on long-term commitments and capital allocation. If there's opportunity for selective high-quality globally competitive growth, our shareholders value it, we see it. We have the ability to pursue it, but it -- our position today isn't materially different than it would have been 6 months ago on the outlook. We're still in the -- let's just see where things go. Operator: That will come from the line of Neil Mehta with Goldman Sachs. Neil Mehta: The offshore results were really good this quarter, Rich. It's not something we tend to spend a lot of time on these calls talking about the E&P business. But just curious on your thoughts around the sustainability of that strength in production and you got [indiscernible] kicking in. Anything that stands out to you in the E&P side? Richard Kruger: Certainly, we have seen the benefit from the market environment. Those assets generally are pretty -- as in aggregate, are relatively low cost overall, certainly, [indiscernible]. You've seen it much like the Commerce City story, you've seen tremendous turnaround in our performance at Terra Nova and the contribution that it has. So they have been a big part on a -- on a relative volume basis, they've been a big part of the contribution. We expect that to continue. There's -- at West White Rose, there's still drilling activity and what the resulting production is to be determined on it. But although they are a smaller part of our percentage in terms of upstream production, we've been quite pleased with how that East Coast that overall set of assets has delivered, particularly in the current business environment. Neil Mehta: And the other one is just on Petro-Canada. I know there's a retail growth focus here as we think about other economic investment in your capital budget. So just your update on how you're thinking about that business, how would you characterize it as something that has synergies with the rest of the company and how do you see it scaling over time? Richard Kruger: Several years ago, the plan was put together for the retail side, and we believe in delivering on commitments when we establish plans. So Dave and I rigorously steward that plan and that team has been delivering on it. And one of the things I'm excited is they have been delivering on it in the last, particularly about 1 year, 1.5 years at lower capital than we originally had envisioned. They're just finding new and creative ways to deliver value through partnerships, other people's money. And as we've asked the entire organization to bring about more capital discipline and rigor focus on things, they've been subject to the same scrutiny, nobody gets blank checks around here just because it has been put in place at a point in time. In the market, we've seen this year, in particular, the ability to run our facilities at full capacities, knowing in the vast majority of scenarios, we have comfortable homes for those volumes, whether those are retail. Our retail now, Dave, remind me, it's above the pre-COVID levels, our retail sales. That is our most profitable product. So they are there -- in that family photo, I got my wife on one side, my grandson, Tommy, on the other. Petro Canada is pretty clearly in that photo. And as long as they keep delivering, they'll be right there with their big grin and smile. Operator: I'm showing no further questions in the queue at this time. I would now like to turn the conference back to Mr. Adam Albeldawi for closing remarks. Adam Albeldawi: Thank you, everyone, for joining our call this morning. If you have any follow-up questions, please don't hesitate to reach out to our team. Operator, you can end the call. Operator: Thank you for participating. This concludes today's conference. You may now disconnect. Before you buy stock in Suncor Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Suncor Energy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Suncor (SU) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Suncor Energy Inc. SU reported second-quarter 2026 adjusted operating earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.14 by 8.9%. Moreover, the bottom line increased significantly from the year-ago quarter’s reported figure of 51 cents. The outperformance was driven by stronger downstream margins, higher upstream price realizations and increased refined product sales volumes. The Calgary, Alberta-based integrated oil and gas company’s operating revenues of $12.7 billion beat the Zacks Consensus Estimate of $10.3 billion by 22.4%. The top line also increased approximately 47.3% year over year, aided by record refined product sales, higher refinery production and stronger benchmark crack spreads. Suncor Energy Inc. price-consensus-eps-surprise-chart | Suncor Energy Inc. Quote Suncor Energy’s board of directors declared a quarterly dividend of 60 Canadian cents per share for its common shareholders of record as of Sept. 4, 2026. The payout, which remains unchanged from the previous quarter, will be made on Sept. 25. During the quarter, the company distributed a total of C$1.8 billion to its shareholders, including over C$1 billion in share repurchases and over C$700 million in dividends. It generated C$5.3 billion in adjusted funds from operations and C$4 billion in free cash flow. During the second quarter, Suncor Energy delivered upstream production of 760,900 barrels per day (bbls/d), down from 808,100 bbls/d in the year-ago quarter. However, refining throughput reached a second-quarter record of 470,600 bbls/d, compared with 442,300 bbls/d a year earlier, while refined product sales rose to 654,800 bbls/d from 600,500 bbls/d in the prior-year period. Upstream: The company recorded a total production of 760,900 bbls/d, down from 808,100 bbls/d in the year-ago quarter. However, the figure beat the consensus estimate of 755,000 bbls/d. Total Oil Sands production was 690,100 bbls/d, down from 748,400 bbls/d in the year-ago quarter. Total Oil Sands bitumen production was 815,200 bbls/d, compared with 860,800 bbls/d in the prior-year period. This decrease was caused by the planned turnaround at Firebag. Net synthetic crude oil and diesel production increased to 482,200 bbls/d from 438,200 bbls/d a year earlier, driven by fewer maintenance activities in the current quarter. Non-upgraded bitumen production decreased to 207,900 bbls/d from 310,200 bbls/d, primarily due to increased upgrader availability and decreased bitumen production. Oil Sands adjusted operating earnings were C$2.6 billion, up from C$926 million in the prior-year quarter, backed by increased price realizations. Exploration and Production (E&P) production rose to 70,800 bbls/d from 59,700 bbls/d in the year-ago period, driven by strong production across assets. Adjusted operating earnings in the segment increased to C$465 million from C$165 million, primarily driven by higher sales volumes and stronger price realizations. Downstream: The segment was the key driver of the quarter’s strength. Refining and Marketing adjusted operating earnings surged to C$2.1 billion from C$404 million in the prior-year quarter, primarily fueled by higher benchmark crack spreads, a FIFO inventory valuation gain and increased refinery production and sales volumes. Refinery utilization was 92%, up from 87% in the prior-year quarter, reflecting Suncor Energy’s increased refining network nameplate capacity of 511,000 bbls/d. Refined product sales climbed to 654,800 bbls/d, a 9% increase from 600,500 bbls/d in the prior-year quarter, supported by global market opportunities, including record jet fuel sales, while also delivering more domestic volumes through high-value retail channels. Moreover, the figure beat the consensus estimate of 596,000 bbls/d. Total expenses increased 20% to C$12.6 billion from the prior-year quarter. The cost of purchases of crude oil and products increased to C$6.4 billion in the second quarter of 2026, compared with C$5.1 billion in the prior-year quarter. Operating, selling and general expenses increased 8.1% to C$3.4 billion from the prior-year quarter, and Exploration expenses increased to C$17 million compared with C$4 million in the previous-year quarter. Suncor Energy generated C$5.3 billion in adjusted funds from operations, up from C$2.7 billion in the prior-year quarter. Free funds flow increased to almost C$4 billion from C$981 million. The company returned nearly C$1.8 billion to its shareholders, including C$1 billion in share repurchases and over C$700 million in dividends. Capital expenditures totaled C$1.3 billion, decreasing from the year-ago quarter of C$1.6 billion. As of June 30, 2026, Suncor Energy had cash and cash equivalents of C$5.4 billion and long-term debt of C$9.2 billion. Its debt-to-capitalization was 16%. Suncor Energy’s 2026 corporate guidance targets total production of 840,000-870,000 bbl/d, including 785,000-810,000 bbl/d from Oil Sands and 55,000-60,000 bbl/d from Exploration and Production. Refinery throughput is expected at 460,000-475,000 bbl/d, with utilization of 90%-93% and refined product sales of 600,000-620,000 bbl/d. Capital expenditures are guided at C$5.6-C$5.8 billion, led by C$3.8-C$3.9 billion for Oil Sands. Cash operating costs are expected at C$26-C$29/bbl for Oil Sands operations, C$33-C$36/bbl at Fort Hills and C$34-C$37/bbl at Syncrude. The guidance assumes Brent at $87/bbl and WTI at $80/bbl, while the company highlights operational reliability, maintenance execution, commodity prices and infrastructure as key factors that could affect results. SU currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. While we have discussed SU’s second-quarter results in detail, let us take a look at three other key reports in this space. Imperial Oil Limited IMO reported second-quarter 2026 adjusted earnings per share of $3.27, which beat the Zacks Consensus Estimate of $2.99 and increased from the year-ago quarter’s $1.34, driven by higher price realizations. Revenues of $11.6 billion missed the Zacks Consensus Estimate of $11.8 billion. However, the top line increased significantly from the year-ago quarter’s level of $8.1 billion, backed by strong performance in both the Upstream and Downstream segments. As of June 30, 2026, Imperial Oil had cash and cash equivalents of C$2.8 billion. Total debt of the company amounted to C$3.96 billion, with a debt-to-capitalization of 13.9%. Pembina Pipeline Corporation PBA reported second-quarter 2026 earnings per share of 48 cents, which missed the Zacks Consensus Estimate of 49 cents. However, it increased from the year-ago quarter’s level of 47 cents. This improvement was primarily driven by strong underlying operational performance and volume growth across the Pipelines and Facilities and Marketing & New Ventures divisions. This Calgary-based oil and gas storage and transportation company’s quarterly sales of $1.55 billion increased about 20% year over year, driven by higher revenue performance across all three segments. As of June 30, 2026, PBA had cash and cash equivalents worth C$153 million and C$19.8 billion in long-term debt. Debt-to-capitalization was 53.7%. Diamondback Energy, Inc. FANG reported second-quarter 2026 adjusted earnings per share of $6.48, which beat the Zacks Consensus Estimate of $5.96 and more than doubled from the year-ago adjusted profit of $2.67. The outperformance was driven by production growth and a 53.1% improvement in the year-over-year realized oil prices. This Midland, TX-based oil and gas exploration and production company’s revenues of $5.6 billion increased more than 51% from the year-ago quarter and topped the Zacks Consensus Estimate by about 17%, fueled primarily by higher sales of oil, natural gas and natural gas liquids, increased sales of purchased oil and higher revenues from other operating income. As of June 30, the Permian-focused operator had approximately $462 million in cash and cash equivalents and $11.1 billion in long-term debt, representing a debt-to-capitalization of 20.1%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Suncor Energy Inc. (SU) : Free Stock Analysis Report Imperial Oil Limited (IMO) : Free Stock Analysis Report Pembina Pipeline Corp. (PBA) : Free Stock Analysis Report Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Suncor Energy Inc.? Here are five stocks we like better. Severe weather reduced production by an estimated 50,000–60,000 barrels per day in the quarter, but operations recovered to approximately 870,000 barrels per day in July. Suncor also completed major turnarounds faster and below budget, supporting its goal of cutting annual turnaround capital by C$400 million. Suncor delivered record downstream performance, including second-quarter product sales of 655,000 barrels per day and adjusted funds from operations of C$5.3 billion. Net debt fell to C$4.5 billion, while shareholder returns totaled C$1.8 billion and monthly share repurchases will increase to C$500 million. Management maintained its upstream guidance and expects a stronger second half, although a 50-day Syncrude coke outage and refinery maintenance are planned for the third quarter. Suncor continues to evaluate longer-term growth opportunities while maintaining disciplined capital allocation. 3 Overlooked Energy ETFs Delivering Strong Returns and Income Suncor Energy (NYSE:SU) said its second-quarter results reflected the completion of major maintenance work and record cash generation, despite unusually severe weather that reduced mining productivity in the Fort McMurray region. President and Chief Executive Officer Rich Kruger said record rainfall and snow melt during the quarter, with precipitation 50% above the 10-year average and the highest in more than 30 years, affected mining operations. The company estimated the weather reduced second-quarter production by 50,000 to 60,000 barrels per day. → No Hangover: Revisiting Microsoft One Week After Earnings It's Time to Take Profits on These 2 Overbought Energy Stocks Upstream production averaged 761,000 barrels per day in the quarter. However, Kruger said operations had returned to expected rates by late in the second quarter, with preliminary July production of about 870,000 barrels per day, which would represent Suncor's second-highest July output on record. Management said it is incorporating lessons from the weather event into mine planning and operations. Measures include 48- and 72-hour weather outlooks, ore stockpiles in vulnerable areas, pre-securing materials and equipment such as gravel and graders, and using drones to monitor mine conditions in real time. → MarketBeat Week in Review – 08/03 - 08/07 3 Stocks Built for America’s Affordable Housing Reality Peter Zebedee, executive vice president of upstream, said the company has also advanced its autonomous-haulage “mud mode” software. He said slippage events have fallen 80% from the initial version of the system. Suncor completed a major Firebag turnaround involving its Plants 93 and 94, which together process roughly two-thirds of Firebag's 250,000-barrel-per-day capacity. The company completed the work in 44 days at a cost of C$118 million, compared with 58 days and C$150 million for a similar turnaround in 2022. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Kruger said the turnaround's production impact was 60,000 barrels per day in the second quarter, 25,000 barrels per day better than the company had planned. The work also extended the next planned turnaround cycle for the two plants to five years from four years historically. At Base Plant, the U2 Coker turnaround was completed in 46 days, compared with 60 days in 2021, at a cost of C$203 million, down from C$225 million for the prior event. Commerce City refinery maintenance took 50 days, compared with 74 days in 2021. The company said it remains on track to reduce annual turnaround capital by C$400 million, a target it raised on March 31. Suncor had originally targeted C$250 million in annual reductions over three years and said it reached that objective in two years. Upgrader utilization was 93% during the quarter following completion of Base Plant spring maintenance. Year-to-date utilization reached 94%, which Kruger described as a first-half record. Refining throughput was 471,000 barrels per day, Suncor's second-highest second-quarter level, while network utilization was 92% on its rerated 511,000-barrel-per-day capacity. Montreal and Edmonton, its two largest refineries, processed 151,000 and 161,000 barrels per day, respectively, with combined utilization of 99%. Product sales reached a second-quarter record of 655,000 barrels per day, marking Suncor's eighth consecutive quarter with sales exceeding 600,000 barrels per day. Jet fuel sales were a record 51,000 barrels per day as the company adjusted its product slate to capture global market value. Dave Oldreive, executive vice president of downstream, said export capabilities built over several years helped drive sales. Through Burrard and Montreal, Suncor exported 56 cargoes during the first half, nearly matching the 58 cargoes it shipped during all of 2025. Oldreive said the company increased its West Coast export capacity from three to four cargoes per month last year to five cargoes per month in early 2026, reaching six cargoes in May. In Montreal, Suncor developed a zero-cost logistics option to export jet fuel, enabling it to export 22,000 barrels per day in the second quarter. The company said it now has capacity to export about 25,000 barrels per day of jet fuel from Montreal if market conditions support it. Chief Financial Officer Troy Little said adjusted funds from operations totaled C$5.3 billion, nearly double the prior-year level and equal to Suncor's all-time quarterly record set in the second quarter of 2022. Adjusted funds from operations per share were C$4.52, nearly 20% above the comparable 2022 quarter, despite average WTI prices being about C$15 per barrel lower, according to Little. Downstream adjusted funds from operations reached a record C$2.3 billion. Little said the company reported 89% margin capture, but said that excluding the impact of higher renewable volume obligation pricing, margin capture would have been 99%. Net debt ended the quarter at C$4.5 billion, down 75% from the start of the decade. Suncor returned C$1.8 billion to shareholders during the quarter, including C$1.1 billion in share repurchases and C$706 million in dividends. The company said it will raise its share repurchase program to C$500 million per month, or C$1.5 billion per quarter, beginning this week. That follows increases from C$275 million per month at the start of 2026 to C$350 million per month in April. Little said Suncor intends to provide predictable shareholder returns through the commodity cycle while retaining flexibility for material changes in market conditions. He added that management continues to evaluate both dividends and buybacks to meet the preferences of different shareholders. Management maintained its upstream guidance and said it expects a stronger second half as major maintenance concludes. The company has one major upstream event remaining in the third quarter, a planned Syncrude coke outage expected to begin Aug. 20 and last 50 days. Downstream maintenance is also scheduled at Montreal and Edmonton. Kruger said Suncor continues to prepare for potential future growth from its resource base, including work such as seismic activity and delineation drilling. However, he said the company has not shifted to an accelerated growth strategy and will remain disciplined in capital allocation. Management also said it sees improved policy discussions in Canada following a non-binding memorandum of understanding between five oil sands companies and federal and provincial governments. Kruger said there is still substantial work required to convert those ambitions into definitive agreements and that Suncor's outlook is not materially different from six months ago. Suncor Energy Inc is a Canadian integrated energy company headquartered in Calgary, Alberta. The company's operations span the full oil and gas value chain, with principal activities in oil sands development and production, conventional exploration and production, refining, distribution and retail marketing of petroleum products. Suncor supplies crude, synthetic crude and refined fuels as well as related products and services to commercial and consumer markets. Upstream, Suncor is a major developer and operator of oil sands projects in Alberta, using both mining and in situ technologies to produce bitumen and synthetic crude. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Suncor Energy Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Imperial Oil Limited IMO delivered a sharp second-quarter earnings improvement while lowering its 2026 refinery outlook, creating a mixed signal for investors. The central issue is whether weaker refinery guidance reflects short-lived operating disruptions or a more persistent limit on downstream cash generation. Downstream profitability held up despite lower physical volumes, but the revised targets raise the bar for execution in the second half of 2026. Imperial cut expected 2026 refinery throughput to 370,000-380,000 barrels per day from 395,000-405,000. It also reduced expected refinery utilization to 85%-88% from 91%-93%, a roughly 6% cut to the throughput outlook. The revision reflects higher unplanned downtime in the first half, a short-term rail-logistics constraint at Strathcona and mid-July downtime at Nanticoke. Those factors suggest the guidance reset is operational rather than demand-driven, but they still reduce the volume base supporting downstream earnings. Downstream net income climbed to C$787 million from C$322 million a year earlier. Improved market margins were the main driver, partly offset by turnaround impacts of about C$190 million. Image Source: Imperial Oil Limited Refinery throughput fell to 331,000 barrels per day from 376,000, while utilization declined to 76% from 87%. The gap between stronger earnings and weaker volumes shows how favorable margins protected profitability during a quarter with substantial refinery downtime. The major Strathcona crude-unit turnaround is complete after a 10-year run interval, and Imperial expects higher volumes and throughput in the second half now that its heaviest turnaround quarter is behind it. That makes the rest of 2026 an execution test for the revised guidance. Canadian peer Suncor Energy Inc. SU also relies on an integrated upstream and downstream model, and its second-quarter 2026 results highlighted record refining throughput and refined product sales. Cenovus Energy Inc. CVE similarly uses downstream integration, including Canadian refining tied to Lloydminster production and a U.S. refining portfolio focused on heavy conversion. Over the past year, Imperial Oil’s shares gained 48.7%, trailing Suncor Energy’s 57.2% gain and Cenovus Energy’s 92% increase. This performance gap suggests investors have rewarded Suncor and Cenovus more strongly, making Imperial’s ability to execute its revised refinery guidance increasingly important for its relative performance. Image Source: Zacks Investment Research Imperial is adding rail-handling capacity at Strathcona to relieve congestion identified as renewable diesel production ramped up, with completion targeted by year-end. Removing that bottleneck could help the refinery operate with fewer logistics constraints. Management also said it prioritized renewable diesel production because economics were favorable. That choice improved margins but reduced crude throughput, showing that downstream value creation does not always require maximizing conventional refinery volumes. The lower refinery outlook does not erase the second quarter’s earnings improvement, but it shifts attention toward whether post-turnaround operations can deliver the expected volume recovery. Investors now have clearer milestones to watch in throughput, utilization and the Strathcona rail fix. Imperial currently carries a Zacks Rank #3 (Hold), with a Value Score of B, Growth Score of B, Momentum Score of C and VGM Score of B. The B grades indicate favorable value, growth and combined characteristics, while the C Momentum Score is less supportive. With the stock at a Hold, evidence of sustained downstream recovery matters more than one strong quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Imperial Oil Limited (IMO) : Free Stock Analysis Report Suncor Energy Inc. (SU) : Free Stock Analysis Report Cenovus Energy Inc (CVE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Suncor Energy (TSX:SU) is back in focus after reporting second quarter 2026 results on August 4, including higher revenue and net income, updated production figures, an affirmed dividend, and progress on share buybacks. See our latest analysis for Suncor Energy. The earnings beat and stronger downstream performance have been met with some near term cooling in Suncor Energy's stock, with the share price down 2.94% over the last day and 4.80% over the past week. Even so, the 30 day share price return of 12.95% and year to date share price return of 40.74%, alongside a very large 5 year total shareholder return of 341.53%, point to momentum that has been building over a longer horizon. If this kind of move in Suncor Energy has you thinking about other opportunities in energy infrastructure, it could be a useful moment to scan the 36 power grid technology and infrastructure stocks Suncor Energy stock has run hard this year, yet the latest earnings surprise, dividend affirmation, and buybacks keep the story moving. Is that enough to justify buying now, or is patience more sensible regarding the price? The most followed narrative for Suncor Energy puts fair value at CA$100.26, compared with the latest close of CA$88.12, which implies meaningful upside in that framework. Read the complete narrative. Want to see what sits behind that fair value for Suncor Energy? The narrative focuses on higher margins, steady cash generation, and a future earnings multiple that assumes investors remain comfortable paying a premium for that profile. Result: Fair Value of CA$100.26 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Suncor Energy's heavy oil sands exposure, along with rising regulatory and carbon cost pressures, could squeeze margins and challenge the current undervalued narrative. Find out about the key risks to this Suncor Energy narrative. With both risks and rewards in play for Suncor Energy, it helps to move quickly, review the data in detail, and form your own view using the 3 key rewards and 2 important warning signs If Suncor Energy has sharpened your focus, do not stop here. Use these idea lists to spot fresh stocks that fit your goals before the crowd moves. Target dependable cash generators by reviewing companies in the 6 dividend fortresses that may appeal if income is high on your priority list. Hunt for potential mispriced opportunities with the screener containing 10 high quality undiscovered gems that could sit off most investors' radars today. Prioritise resilience by checking companies in the 12 resilient stocks with low risk scores that aim to balance return potential with lower risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SU.TO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Suncor Energy Inc (NYSE:SU) delivered record adjusted funds from operations (AFFO) of $5.3 billion in Q2 2026, nearly double year-over-year and matching its all-time quarterly record despite lower WTI prices. The company achieved record downstream AFFO of $2.3 billion, with strong margin capture of 99% (excluding RVO impacts), driven by successful export market strategies and integrated operations. Suncor Energy Inc (NYSE:SU) increased its share buyback program to $500 million per month (or $1.5 billion per quarter), reflecting strong cash generation and a commitment to predictable shareholder returns. Operational improvements are evident: Firebag turnaround completed 24% faster and 21% cheaper than the previous similar event, and base plant U2 Coker was completed in 46 days versus 60 days in 2021. July 2026 preliminary production reached approximately 870,000 barrels per day, the second-highest July ever, indicating a strong rebound from weather-related disruptions and positioning for a robust second half. The company's balance sheet is strong, with net debt of $4.5 billion, 75% lower than at the start of the decade and less than half of its 1x net debt-to-cash flow guardrail. Unprecedented weather conditions in Fort McMurray (record precipitation 50% above the 10-year average) materially impacted mining productivity, reducing Q2 production by an estimated 50,000-60,000 barrels per day. The Firebag turnaround, despite improvements, still caused a significant production impact of 60,000 barrels per day in Q2, highlighting the ongoing risk of major maintenance events. The company faces potential volatility in refining margins, as evidenced by the $10 per barrel drop in the New York Harbor 211 crack margin (net of RVO) compared to Q2 2022, despite record downstream results. Suncor Energy Inc (NYSE:SU) continues to face uncertainty regarding future growth projects, with management noting that acceleration depends on market conditions and fiscal/regulatory reforms, which are not yet guaranteed. The company's reliance on global refined product markets exposes it to geopolitical and supply-demand risks, as seen in the jet fuel export surge, which may not be sustainable if market conditions change. Despite strong performance, the company acknowledged that the quarter was not perfect, with weather-related disruptions leaving 'value on the table' and requiring ongoing investments in resilience measures. Warning! GuruFocus has detected 7 Warning Sign with SU. Is SU fairly valued? Test your thesis with our free DCF calculator. Q: With the increase in the buyback to $500 million per month, is that a sustainable level as you move into 2027, and are there other levers to pull for returning cash to shareholders?A: Troy Little (CFO) confirmed the buyback increase reflects the substantial growth in excess funds and the benefits of recent improvements. He emphasized the company's commitment to predictable and rateable shareholder returns through the commodity cycle, citing that buybacks remained constant at $250 million a month throughout 2025 despite crude price volatility. He noted the company does not have an absolute dollar net debt target for shareholder returns but instead uses a guardrail of 1 times net debt to cash flow at $50 per barrel WTI, allowing leverage to be managed alongside business performance. Q: How does the potential for increased egress out of Western Canada shape your thoughts on accelerating development at Lewis and Firebag, and can you showcase the same growth with lower capital?A: Rich Kruger (CEO) stated the growth plan is largely within their control and doesn't need fiscal or regulatory reform. He emphasized the optionality to accelerate growth if valued by shareholders, but they have not shifted to that mode. The company is doing preparatory work like seismic and delineation wells to preserve options, while maintaining a "design one, build multiple" strategy for capital efficiency. Q: How does regional integration help drive confidence in executing operations, especially with increased demand for diluent or solvent for planned technologies?A: Peter Zeedy (EVP Upstream) highlighted the competitive differentiator of operational flexibility, citing the movement of over 90,000 barrels around the region to maintain upgrader utilization during wet weather. Dave Aldrid (EVP Downstream) added that the integration of the Edmonton refinery with oil sands operations uses a single linear programming model to optimize the region, allowing for adjustments like running intermediate streams to fill out the refinery, which translated into record throughput and sales. Q: Where do you stand in building out access to global markets, and is the strong global product sales a sustainable improvement or transitory?A: Rich Kruger (CEO) explained the strategy was built over several years, expanding logistical capabilities with time charters and selling to mid-40s countries. Dave Aldrid (EVP Downstream) detailed structural improvements, including increasing West Coast cargoes from 3-4 per month to 5, and achieving 6 in May, and the new capability to export jet fuel out of Montreal at 22,000 barrels a day, which was zero last year. He characterized these as structural changes that will add value long-term. Q: On Commerce City refinery, how much of the improved performance is stronger regional cracks versus fundamental improvements, and how does egress out of the Rockies factor into its long-term fit?A: Rich Kruger (CEO) clarified the facility has delivered on safety, operational integrity, reliability, and cost discipline, changing its fate materially. Dave Aldrid (EVP Downstream) noted constructive margins from growing demand in California and the company's own ability to rail load gasoline out of the region. He highlighted a record all-time rate at Commerce City in June, likely beaten again in July, making it a "pretty good asset at the moment." Q: Should we model a very strong rebound in upstream volumes for the third quarter given you did not change your guidance despite weather challenges?A: Rich Kruger (CEO) confirmed the second half is the strongest time of the year, with major maintenance behind them. He expressed full confidence in meeting guidance, noting the last few years have come in at the higher end, and expects a "very strong second half." Q: What is your outlook on the refining macro, and how sustainable are the strong cracks, and how does Suncor benefit?A: Dave Aldrid (EVP Downstream) highlighted that refined product markets are more resilient than crude markets, driven by geopolitical factors like Hormuz and Russian infrastructure outages, with refineries at greater than 20-year lows in output. He noted the company is designed to win in any environment, growing diesel production preferentially over gasoline and leveraging the trading platform for global sales. Q: When thinking about cash returns, what's the split between buybacks and the potential to raise the dividend more aggressively, especially in the context of the $38 break-even target by 2028?A: Rich Kruger (CEO) stated the company is not wed to a specific number but to creating value. Troy Little (CFO) acknowledged shareholders have diverse objectives, with the vast majority favoring buybacks, but the company monitors both methods to optimize competitiveness and create the greatest demand for the stock. He emphasized a holistic approach without hard and fast targets. Q: With turnaround activity in the third quarter, what is your flexibility around approach given the current crack environment?A: Rich Kruger (CEO) emphasized the importance of safety and operational integrity, stating they won't slide work to chase margins. Dave Aldrid (EVP Downstream) detailed two planned turnarounds: a minor scope at Montreal and a complex cracker turnaround at Edmonton, with teams well prepared. Peter Zeedy (EVP Upstream) noted one major event left, the Syncrude coker outage starting August 20th for 50 days, with high confidence in execution. Q: On the trilateral MOU, what needs to happen to open up growth opportunities, and would you need to underwrite a pipeline to access growth?A: Rich Kruger (CEO) explained the non-binding MOU with federal and provincial governments outlines shared ambitions on carbon policy, market access, and fiscal conditions. He noted there's a lot of work to turn ambitions into definitive agreements, but the company's position today isn't materially different than 6 months ago. They remain thoughtful on long-term commitments and capital allocation, pursuing selective high-quality growth if valued by shareholders. Q: The offshore results were really good this quarter; what are your thoughts on the sustainability of that strength in production, and how do you see the Petro-Canada retail business scaling?A: Rich Kruger (CEO) credited the market environment and improved performance at Terra Nova, expecting that to continue with West White Rose drilling activity. On Petro-Canada, he noted the team has been delivering on the plan at lower capital than envisioned through partnerships, and retail sales are above pre-COVID levels, making it the most profitable product. He affirmed Petro-Canada's place in the "family photo For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Unless otherwise noted, all financial figures are unaudited, presented in Canadian dollars (Cdn$), and derived from the company's condensed consolidated financial statements which are based on Canadian generally accepted accounting principles (GAAP), specifically International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), and are prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting. Production volumes are presented on a working-interest basis, before royalties, except for production values from the company's Libya operations, which are presented on an economic basis. Certain financial measures referred to in this news release (adjusted funds from operations, adjusted operating earnings, free funds flow, and net debt) are not prescribed by Canadian generally accepted accounting principles (GAAP). See the Non-GAAP Financial Measures section of this news release. References to Oil Sands operations exclude Suncor Energy Inc.'s ownership of Fort Hills and interest in Syncrude. Calgary, Alberta--(Newsfile Corp. - August 4, 2026) - Suncor Energy (TSX: SU) (NYSE: SU) Second Quarter Highlights Matched quarterly record adjusted funds from operations of $5.3 billion and set all-time quarterly per share record of $4.52. Generated $4.0 billion in free funds flow and set all-time quarterly per share record of $3.38, more than quadruple the prior year quarter. Returned nearly $1.8 billion to shareholders, with over $1.0 billion in share repurchases and over $700 million in dividends. Beginning in August 2026, Suncor plans to increase monthly share repurchases to $500 million from $350 million. Second quarter upstream production of 761,000 bbls/d, and record first half upgrader utilization of 94%. Record second quarter refining throughput of 471,000 bbls/d and record second quarter refined product sales of 655,000 bbls/d. "Suncor delivered record quarterly free funds flow per share of $3.38 in the second quarter, demonstrating the progress we've made in improving the performance of our business and increasing shareholder value," said Rich Kruger, President and Chief Executive Officer. "The quarter was led by the exemplary performance of our downstream business, delivering record quarterly adjusted funds from operations and record second quarter refining throughput and refined product sales, highlighting the strength of our integrated model and its ability to generate significant cash flow across a range of market conditions." Second Quarter Results (1) Presented on a basic per share basis.(2) Non-GAAP financial measures or contains non-GAAP financial measures. See the Non-GAAP Financial Measures section of this news release.(3) Calculated as the cost of share repurchases, excluding taxes paid on share repurchases, divided by the weighted average number of shares outstanding.(4) Includes dividends paid on common shares and repurchases of common shares; excludes taxes paid on common share repurchases.(5) Effective January 1, 2026, Suncor increased the nameplate capacity of its refining network by 10% from 466,000 bbls/d to 511,000 bbls/d. Prior quarter utilization rates have been restated to reflect this change. Financial Results Adjusted Operating Earnings Reconciliation(1) (1) Non-GAAP financial measure. All reconciling items are presented on a before-tax basis and adjusted for income taxes in the income tax expense (recovery) on adjusted operating earnings adjustments line. See the Non-GAAP Financial Measures section of this news release. Suncor's adjusted operating earnings increased to $3.804 billion ($3.23 per common share) in the second quarter of 2026, compared to $873 million ($0.71 per common share) in the prior year quarter, primarily due to increased upstream price realizations and downstream margins, partially offset by a corresponding increase in tax and royalties expense. Net earnings increased to $3.732 billion ($3.17 per common share) in the second quarter of 2026, compared to $1.134 billion ($0.93 per common share) in the prior year quarter. In addition to the factors impacting adjusted operating earnings, net earnings for the second quarter of 2026 and the prior year quarter were impacted by the items shown in the table above. Adjusted funds from operations increased to $5.329 billion ($4.52 per common share) in the second quarter of 2026, compared to $2.689 billion ($2.20 per common share) in the prior year quarter, and were primarily influenced by the same factors impacting adjusted operating earnings. Adjusted funds from operations benefitted from the strength of Suncor's integrated operations in the current quarter, as the upstream captured the strong synthetic crude oil (SCO) premiums, while the downstream generated record adjusted funds from operations, despite the higher feedstock costs. Cash flow provided by operating activities, which includes changes in non-cash working capital, was $5.655 billion ($4.80 per common share) in the second quarter of 2026, compared to $2.919 billion ($2.38 per common share) in the prior year quarter. Free funds flow increased to $3.980 billion ($3.38 per common share), compared to $981 million ($0.80 per common share) in the prior year quarter, and was primarily influenced by the same factors impacting adjusted funds from operations as well as lower capital expenditures in the current quarter compared to the prior year quarter. Operating, selling and general (OS&G) expenses were $3.419 billion in the second quarter of 2026, compared to $3.163 billion in the prior year quarter, with the increase primarily due to increased mining activity, in part due to the unprecedented combination of snow accumulation, rapid spring melt and major rainfall events in the current quarter and increased Oil Sands maintenance. Operating Results Total Oil Sands bitumen production was 815,200 barrels per day (bbls/d) in the second quarter of 2026, compared to 860,800 bbls/d in the prior year quarter, with the decrease primarily due to the planned turnaround at Firebag, which was successfully completed ahead of schedule in the current quarter, partially offset by increased mining production despite an unprecedented combination of snow accumulation, rapid spring melt, and major rainfall events. Mining production in the prior year quarter was impacted by the Upgrader 1 coke drum replacement project and turnaround. The company's higher value net SCO production increased to 482,200 bbls/d with upgrader utilization of 93% in the second quarter of 2026, compared to 438,200 bbls/d and 86%, respectively, in the prior year quarter, primarily due to fewer maintenance activities in the current quarter. Non-upgraded bitumen production decreased to 207,900 bbls/d in the second quarter of 2026, compared to 310,200 bbls/d in the prior year quarter, primarily due to increased upgrader availability and decreased bitumen production. Exploration and Production (E&P) production increased to 70,800 bbls/d in the second quarter of 2026, compared to 59,700 bbls/d in the prior year quarter, and featured strong production at all assets. Refinery crude oil throughput increased to a second quarter record of 470,600 bbls/d with refinery utilization([1]) of 92% of the rerated nameplate capacity of 511,000 bbls/d. This compares to 442,300 bbls/d and 87% in the prior year quarter, primarily due to fewer maintenance activities in the current period. Refinery production increased to 503,400 bbls/d, compared to 464,600 bbls/d in the prior year quarter, as the company benefitted from a structural increase of intermediate feedstock through the secondary units. Refined product sales increased to a second quarter record of 654,800 bbls/d, compared to 600,500 bbls/d in the prior year quarter, as Suncor continued to capitalize on global market opportunities, including record jet fuel sales, while also delivering more domestic volumes through high-value retail channels, leveraging Canada's number one retail brand. (1) Effective January 1, 2026, Suncor increased the nameplate capacity of its refining network by 10% from 466,000 bbls/d to 511,000 bbls/d. Prior quarter utilization rates have been restated to reflect this change. Corporate and Strategy Updates Share repurchases to be increased to $500 million per month. Beginning in August 2026, Suncor plans to increase monthly share repurchases to $500 million per month, from $350 million per month, projecting total 2026 share repurchases of $4.7 billion and marking the third monthly increase since December 2025. New loyalty program partnership announced. Petro-Canada and WestJet announced the details of a new loyalty program partnership that is expected to give Petro-Canada customers more value, options and flexibility when fuelling and flying. Corporate Guidance Updates Suncor has updated its 2026 corporate guidance ranges, previously released on December 11, 2025: Business Environment, Current Income Tax Expense and Royalties have been updated to reflect the current business environment as at August 4, 2026. For further details and advisories regarding Suncor's 2026 corporate guidance, see www.suncor.com/guidance. Non-GAAP Financial Measures Certain financial measures in this news release - namely adjusted funds from operations, adjusted operating earnings, free funds flow, net debt, and related per share or per barrel amounts - are not prescribed by GAAP. These non-GAAP financial measures are included because management uses the information to analyze business performance, leverage and liquidity, as applicable, and it may be useful to investors on the same basis. These non-GAAP financial measures do not have any standardized meaning and, therefore, are unlikely to be comparable to similar measures presented by other companies. Therefore, these non-GAAP financial measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Except as otherwise indicated, these non-GAAP financial measures are calculated and disclosed on a consistent basis from period to period. Specific adjusting items may only be relevant in certain periods. Adjusted Operating Earnings Adjusted operating earnings is a non-GAAP financial measure that adjusts net earnings for significant items that are not indicative of operating performance. Management uses adjusted operating earnings to evaluate operating performance because management believes it provides better comparability between periods. Adjusted operating earnings are reconciled to net earnings in the news release above. Adjusted Funds From (Used In) Operations Adjusted funds from (used in) operations is a non-GAAP financial measure that adjusts a GAAP measure – cash flow provided by operating activities – for changes in non-cash working capital, which management uses to analyze operating performance and liquidity. Changes to non-cash working capital can be impacted by, among other factors, commodity price volatility, the timing of offshore feedstock purchases and payments for commodity and income taxes, the timing of cash flows related to accounts receivable and accounts payable, and changes in inventory, which management believes reduces comparability between periods. Free Funds Flow (Deficit) Free funds flow (deficit) is a non-GAAP financial measure that is calculated by taking adjusted funds from operations and subtracting capital expenditures, including capitalized interest. Free funds flow reflects cash available for increasing distributions to shareholders and reducing debt. Management uses free funds flow to measure the capacity of the company to increase returns to shareholders and to grow Suncor's business. Net Debt and Total Debt Net debt and total debt are non-GAAP financial measures that management uses to analyze the financial condition of the company. Total debt includes short-term debt, current portion of long-term debt and long-term debt (all of which are GAAP measures). Net debt is equal to total debt less cash and cash equivalents (a GAAP measure). Legal Advisory – Forward-Looking Information This news release contains certain forward-looking information and forward-looking statements (collectively referred to herein as "forward-looking statements") and other information based on Suncor's current expectations, estimates, projections and assumptions that were made by the company in light of information available at the time the statement was made and consider Suncor's experience and its perception of historical trends, including expectations and assumptions concerning: the accuracy of reserves estimates; commodity prices and interest and foreign exchange rates; the performance of assets and equipment; uncertainty related to geopolitical conflict; capital efficiencies and cost savings; applicable laws and government policies; future production rates; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour, services and infrastructure; the satisfaction by third parties of their obligations to Suncor; the development and execution of projects; and the receipt, in a timely manner, of regulatory and third-party approvals. All statements and information that address expectations or projections about the future, and other statements and information about Suncor's strategy for growth, expected and future expenditures or investment decisions, commodity prices, costs, schedules, production volumes, operating and financial results, future financing and capital activities, and the expected impact of future commitments are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects", "anticipates", "will", "estimates", "plans", "scheduled", "intends", "believes", "projects", "indicates", "could", "focus", "vision", "goal", "outlook", "proposed", "target", "objective", "continue", "should", "may", "future", "potential", "opportunity", "would", "priority", "strategy" and similar expressions. Forward-looking statements in this news release include references to: Suncor's strategy, focus, goals and priorities and the expected benefits therefrom; Suncor's belief that Petro-Canada's new loyalty program partnership with WestJet will give Petro-Canada customers more value, options and flexibility when fueling and flying; and Suncor's projection of $4.7 billion of share repurchases in 2026. In addition, all other statements and information about Suncor's strategy for growth, expected and future expenditures or investment decisions, commodity prices, costs, schedules, production volumes, operating and financial results and the expected impact of future commitments are forward-looking statements. Some of the forward-looking statements and information may be identified by words like "expects", "anticipates", "will", "estimates", "plans", "scheduled", "intends", "believes", "projects", "indicates", "could", "focus", "vision", "goal", "outlook", "proposed", "target", "objective", "continue", "should", "may" and similar expressions. Forward-looking statements and information are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to Suncor. Suncor's actual results may differ materially from those expressed or implied by its forward-looking statements, so readers are cautioned not to place undue reliance on them. Suncor's Annual Information Form and Annual Report to Shareholders, each dated February 25, 2026, Form 40-F, Suncor's Report to Shareholders for the Second Quarter of 2026 dated August 4, 2026, and other documents it files from time to time with securities regulatory authorities describe the risks, uncertainties, material assumptions and other factors that could influence actual results and such factors are incorporated herein by reference. Copies of these documents are available by referring to suncor.com/FinancialReports or on SEDAR+ at sedarplus.ca or EDGAR at sec.gov. Except as required by applicable securities laws, Suncor disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. To view a full copy of Suncor's second quarter 2026 Report to Shareholders and the financial statements and notes (unaudited), visit Suncor's profile on sedarplus.ca or sec.gov or visit Suncor's website at suncor.com/financialreports. To listen to the conference call discussing Suncor's second quarter results, visit suncor.com/webcasts. The event will be archived for 90 days. Suncor Energy - Canada's leading integrated energy companySuncor's operations span the full energy value chain, including oil sands mining and in situ operations, upgrading, offshore production, petroleum refining in Canada and the U.S., marketing and trading, and nationwide Petro-Canada™ retail and wholesale networks – delivering reliable energy that fuels economic growth and meets the needs of customers across Canada and globally. With an unwavering focus on safety, operational excellence, and profitability, Suncor is committed to delivering industry-leading performance and long-term shareholder value. Suncor's common shares (symbol: SU) are listed on the Toronto and New York stock exchanges. For more information, visit suncor.com or find us on LinkedIn, Instagram and Facebook. Media inquiries:[email protected] Investor inquiries:[email protected] To view the source version of this press release, please visit https://www.newsfilecorp.com/release/307978