Suncor Energy Inc.
Suncor Energy Inc.
08/05/2026 | Press release | Distributed by Public on 08/05/2026 04:02
Management’s Discussion and Analysis (Form 6-K)
Management's Discussion and Analysis
August 4, 2026
Suncor Energy is Canada's leading integrated energy company. Suncor'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 a description of Suncor's segments, refer to Suncor's Management's Discussion and Analysis (MD&A) for the year ended December 31, 2025, dated February 25, 2026 (the 2025 annual MD&A).
This MD&A, for the three and six months ended June 30, 2026, should be read in conjunction with Suncor's unaudited interim Consolidated Financial Statements for the three and six months ended June 30, 2026, Suncor's audited Consolidated Financial Statements for the year ended December 31, 2025, and the 2025 annual MD&A.
Additional information about Suncor filed with Canadian securities regulatory authorities and the United States Securities and Exchange Commission (SEC), including quarterly and annual reports and Suncor's Annual Information Form dated February 25, 2026 (the 2025 AIF), which is also filed with the SEC under cover of Form 40-F, is available online at www.sedarplus.ca, www.sec.gov and on our website at www.suncor.com. Information contained in or otherwise accessible through our website does not form part of this MD&A and is not incorporated into this MD&A by reference.
References to "we", "our", "Suncor", "Suncor Energy" or "the company" means Suncor Energy Inc., its subsidiaries, partnerships and joint arrangements, unless otherwise specified or the context otherwise requires.
Basis of Presentation
Unless otherwise noted, all financial information is 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, and are prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting.
All financial information is reported in Canadian dollars, unless otherwise noted. Production volumes are presented on a working-interest basis, before royalties, except for production volumes from the company's Libya operations, which are presented on an economic basis.
References to Oil Sands operations exclude Suncor's ownership of Fort Hills and interest in Syncrude.
Common Abbreviations
For a list of the abbreviations that may be used in this MD&A, please refer to the Common Abbreviations section of this MD&A.
Table of Contents
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28 |
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29 |
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2026 Second Quarter Suncor Energy Inc. 5 |
Management's Discussion and Analysis
1. Second Quarter Highlights
| ● | Financial results. Adjusted funds from operations(1) were $5.329 billion ($4.52 per common share), compared to $2.689 billion ($2.20 per common share) in the prior year quarter. Adjusted operating earnings(1) were $3.804 billion ($3.23 per common share), compared to $873 million ($0.71 per common share) in the prior year quarter. |
| ● | Returned value to shareholders. Suncor returned $1.756 billion of value to shareholders, with $1.050 billion in share repurchases and $706 million in dividends. |
| ● | 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 $4.7 billion and marking the third monthly increase since December 2025. |
| ● | New loyalty program partnership announced. Petro-Canada and WestJet announced the details of a new loyalty program partnership that is expected to give Petro-Canada customers more value, options and flexibility when fuelling and flying. |
| ● | Record second quarter refinery crude oil throughput. Refinery crude oil throughput was a second quarter record of 470,600 bbls/d, 28,300 bbls/d higher than the prior year quarter with refinery utilization(2) of 92%. |
| ● | Record second quarter refined product sales. Refined product sales were a second quarter record of 654,800 bbls/d, 54,300 bbls/d higher than the prior year quarter as Suncor continued to capitalize on global sales opportunities. |
| ● | Strong net synthetic crude oil production (SCO). Total upstream production was 760,900 bbls/d in the second quarter of 2026, and was highlighted by net SCO production of 482,200 bbls/d and upgrader utilization of 93%. |
|
(1) |
Non-GAAP financial measures. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
|
(2) |
Effective January 1, 2026, Suncor increased the nameplate capacity of its refining network by 10% from 466,000 bbls/d to 511,000 bbls/d. Prior quarter utilization rates have been restated to reflect this change. |
|
6 2026 Second Quarter Suncor Energy Inc. |
2. Consolidated Financial and Operating Information
Financial Highlights
|
Three months ended |
Six months ended |
||||
|
($ millions) |
|
2026 |
2025 |
2026 |
2025 |
|
Earnings (loss) before income taxes |
|||||
|
Oil Sands |
2 691 |
844 |
4 207 |
2 519 |
|
|
Exploration and Production |
465 |
165 |
847 |
323 |
|
|
Refining and Marketing |
2 100 |
377 |
3 750 |
1 049 |
|
|
Corporate and Eliminations |
(277) |
48 |
(999) |
(167) |
|
|
Income tax expense |
(1 247) |
(300) |
(1 973) |
(901) |
|
|
Net earnings |
3 732 |
1 134 |
5 832 |
2 823 |
|
|
Adjusted operating earnings (loss)(1) |
|||||
|
Oil Sands |
2 592 |
926 |
4 166 |
2 546 |
|
|
Exploration and Production |
465 |
165 |
847 |
323 |
|
|
Refining and Marketing |
2 068 |
404 |
3 752 |
1 071 |
|
|
Corporate and Eliminations |
(82) |
(318) |
(665) |
(547) |
|
|
Income tax expense included in adjusted operating earnings |
(1 239) |
(304) |
(1 996) |
(891) |
|
|
Total |
3 804 |
873 |
6 104 |
2 502 |
|
|
Adjusted funds from (used in) operations(1) |
|||||
|
Oil Sands |
3 819 |
2 399 |
6 713 |
5 209 |
|
|
Exploration and Production |
652 |
372 |
1 214 |
702 |
|
|
Refining and Marketing |
2 299 |
615 |
4 280 |
1 517 |
|
|
Corporate and Eliminations |
(123) |
(285) |
(753) |
(634) |
|
|
Current income tax expense |
(1 318) |
(412) |
(2 095) |
(1 060) |
|
|
Total |
5 329 |
2 689 |
9 359 |
5 734 |
|
|
Change in non-cash working capital |
326 |
230 |
(1 269) |
(659) |
|
|
Cash flow provided by operating activities |
5 655 |
2 919 |
8 090 |
5 075 |
|
|
Capital expenditures(2) |
|||||
|
Asset sustainment and maintenance |
828 |
975 |
1 408 |
1 473 |
|
|
Economic investment |
482 |
674 |
978 |
1 263 |
|
|
Total |
1 310 |
1 649 |
2 386 |
2 736 |
|
|
Free funds flow(1) |
3 980 |
981 |
6 893 |
2 881 |
|
| (1) | Non-GAAP financial measures. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
| (2) | Excludes capitalized interest of $39 million and $80 million in the second quarter and first six months of 2026, compared to $59 million and $117 million in the second quarter and first six months of 2025. |
|
2026 Second Quarter Suncor Energy Inc. 7 |
Management's Discussion and Analysis
Operating Highlights
|
Three months ended |
Six months ended |
||||
|
(mbbls/d, unless otherwise noted) |
|
2026 |
2025 |
2026 |
2025 |
|
Upstream |
|||||
|
Production volumes |
|||||
|
Oil Sands - Upgraded - net SCO and diesel |
482.2 |
438.2 |
500.6 |
487.1 |
|
|
Oil Sands - Non-upgraded bitumen |
207.9 |
310.2 |
243.5 |
282.4 |
|
|
Total Oil Sands production volumes |
690.1 |
748.4 |
744.1 |
769.5 |
|
|
Exploration and Production |
70.8 |
59.7 |
73.7 |
61.0 |
|
|
Total upstream production |
760.9 |
808.1 |
817.8 |
830.5 |
|
|
Upstream sales |
782.1 |
812.8 |
826.7 |
820.6 |
|
|
Downstream |
|||||
|
Refinery utilization(1) (%) |
92 |
87 |
95 |
90 |
|
|
Refinery crude oil throughput |
470.6 |
442.3 |
484.1 |
462.4 |
|
|
Refined product sales |
654.8 |
600.5 |
667.7 |
602.6 |
|
| (1) | Effective January 1, 2026, Suncor increased the nameplate capacity of its refining network by 10% from 466,000 bbls/d to 511,000 bbls/d. Prior quarter utilization rates have been restated to reflect this change. |
Financial Results
Net Earnings and Adjusted Operating Earnings
Adjusted Operating Earnings Reconciliation(1)
|
Three months ended |
Six months ended |
||||
|
($ millions) |
|
2026 |
2025 |
2026 |
2025 |
|
Net earnings |
3 732 |
1 134 |
5 832 |
2 823 |
|
|
Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt |
132 |
(461) |
271 |
(475) |
|
|
Unrealized (gain) loss on risk management activities |
(131) |
68 |
(39) |
8 |
|
|
One-time legislative change to benefits |
63 |
- |
63 |
- |
|
|
Write-down of equity investments |
- |
136 |
- |
136 |
|
|
Income tax expense (recovery) on adjusted operating earnings adjustments |
8 |
(4) |
(23) |
10 |
|
|
Adjusted operating earnings(1) |
3 804 |
873 |
6 104 |
2 502 |
|
| (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 and Other Financial Measures Advisory section of this MD&A. |
Suncor's consolidated net earnings for the second quarter of 2026 were $3.732 billion, compared to $1.134 billion in the prior year quarter. Net earnings were primarily influenced by the same factors that impacted adjusted operating earnings discussed below.
Other items affecting net earnings over these periods included:
| ● | An unrealized foreign exchange loss on the revaluation of U.S. dollar denominated debt of $132 million recorded in financing expenses in the Corporate and Eliminations segment in the second quarter of 2026, compared to a gain of $461 million in the second quarter of 2025. |
| ● | An unrealized gain on risk management activities of $131 million recorded in other income in the second quarter of 2026, compared to an unrealized loss of $68 million in the second quarter of 2025. |
| ● | During the second quarter of 2026, Suncor recorded a one-time expense of $63 million for legislative changes to Alberta seniors benefits. |
| ● | During the second quarter of 2025, Suncor recorded write-downs of equity investments of $95 million in the Corporate and Eliminations segment and $41 million in the Refining and Marketing (R&M) segment. |
| ● | An income tax expense related to the items noted above of $8 million in the second quarter of 2026, compared to a recovery of $4 million in the second quarter of 2025. |
|
8 2026 Second Quarter Suncor Energy Inc. |
Bridge Analysis of Adjusted Operating Earnings ($ millions)(1)
| (1) | For an explanation of this bridge analysis, see the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
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. Adjusted operating earnings were also impacted by a strengthening of benchmark pricing in the current quarter, resulting in a first-in, first-out (FIFO) inventory valuation gain, compared to a loss in the prior year quarter.
Adjusted Funds from Operations and Cash Flow Provided by Operating Activities
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 discussed above.
Cash flow provided by operating activities, which includes changes in non-cash working capital, increased to $5.655 billion ($4.80 per common share) in the second quarter of 2026, compared to $2.919 billion ($2.38 per common share) in the prior year quarter. In addition to the factors impacting adjusted funds from operations, cash flow provided by operating activities was impacted by a larger source of cash associated with the company's working capital balances in the second quarter of 2026, compared to the prior year quarter. Working capital is subject to fluctuations based on commodity prices, the timing of transactions and seasonal factors. The source of cash in the second quarter of 2026 was primarily due to a decrease in accounts receivable balances, partially offset by a decrease in accounts payable and accrued liabilities balance, consistent with the decrease in business environment in the latter part of the current quarter.
Operating, Selling and General Expenses
|
Three months ended |
Six months ended |
||||
|
($ millions) |
|
2026 |
2025 |
2026 |
2025 |
|
Operations, selling and corporate costs |
2 953 |
2 712 |
5 891 |
5 378 |
|
|
Commodities |
444 |
431 |
964 |
917 |
|
|
Share-based compensation and other(1) |
22 |
20 |
342 |
165 |
|
|
Total operating, selling and general (OS&G) expenses |
3 419 |
3 163 |
7 197 |
6 460 |
|
| (1) | In the second quarter of 2026, share-based compensation recovery of ($41) million included ($8) million in the Oil Sands segment, nil in the E&P segment, ($4) million in the R&M segment and ($29) million in the Corporate and Eliminations segment. In the second quarter of 2025, share-based compensation expense of $20 million included $7 million in the Oil Sands segment, $1 million in the E&P segment, $4 million in the R&M segment and $8 million in the Corporate and Eliminations segment. Other includes a one-time expense of $63 million for legislative changes to Alberta seniors benefits in the second quarter of 2026. |
OS&G expenses were $3.419 billion in the second quarter of 2026, compared to $3.163 billion in the prior year quarter, with the increase primarily due to increased mining activity, in part due to the unprecedented combination of snow accumulation, rapid spring melt, and major rainfall events in the current quarter and increased Oil Sands maintenance. The company's exposure to commodity costs is partially mitigated by revenue from power sales that are recorded in operating revenues.
|
2026 Second Quarter Suncor Energy Inc. 9 |
Management's Discussion and Analysis
Business Environment
Commodity prices, refining crack spreads and foreign exchange rates are important factors that affect the results of Suncor's operations. For additional details, see the Financial Information section of the 2025 annual MD&A.
|
Average for the |
Average for the |
|||||
|
|
2026 |
2025 |
2026 |
2025 |
||
|
WTI crude oil at Cushing |
US$/bbl |
92.85 |
63.70 |
82.55 |
67.55 |
|
|
Dated Brent crude |
US$/bbl |
104.55 |
67.80 |
92.80 |
71.70 |
|
|
Dated Brent/Maya crude oil FOB price differential |
US$/bbl |
19.20 |
10.10 |
17.35 |
10.60 |
|
|
MSW at Edmonton |
Cdn$/bbl |
131.90 |
84.25 |
113.00 |
89.75 |
|
|
WCS at Hardisty |
US$/bbl |
78.20 |
53.50 |
68.15 |
56.10 |
|
|
WCS-WTI heavy/light differential |
US$/bbl |
(14.65) |
(10.20) |
(14.40) |
(11.45) |
|
|
SYN-WTI premium (differential) |
US$/bbl |
8.40 |
1.00 |
4.05 |
(0.65) |
|
|
Condensate at Edmonton |
US$/bbl |
95.55 |
63.50 |
83.65 |
66.70 |
|
|
Natural gas (Alberta spot) at AECO |
Cdn$/GJ |
1.55 |
1.65 |
1.75 |
1.85 |
|
|
Alberta Power Pool Price |
Cdn$/MWh |
29.45 |
40.50 |
30.80 |
40.15 |
|
|
New York Harbor 2-1-1 crack(1) |
US$/bbl |
55.55 |
25.90 |
45.55 |
23.50 |
|
|
Chicago 2-1-1 crack(1) |
US$/bbl |
51.00 |
22.05 |
37.10 |
18.35 |
|
|
Portland 2-1-1 crack(1) |
US$/bbl |
63.35 |
38.20 |
50.85 |
30.30 |
|
|
Gulf Coast 2-1-1 crack(1) |
US$/bbl |
51.55 |
23.20 |
42.10 |
22.05 |
|
|
U.S. Renewable Volume Obligation |
US$/bbl |
13.80 |
6.15 |
11.25 |
5.45 |
|
|
Suncor custom 5-2-2-1 index(2) |
US$/bbl |
50.10 |
27.85 |
42.95 |
27.30 |
|
|
Exchange rate (average) |
US$/Cdn$ |
0.72 |
0.72 |
0.73 |
0.71 |
|
|
Exchange rate (end of period) |
US$/Cdn$ |
0.73 |
0.73 |
0.73 |
0.73 |
|
| (1) | 2-1-1 crack spreads are indicators of the refining margin generated by converting two barrels of WTI into one barrel of gasoline and one barrel of diesel. The crack spreads presented here generally approximate the regions into which the company sells refined products through retail and wholesale channels. |
| (2) | Suncor has developed an indicative 5-2-2-1 index based on publicly available pricing data to more accurately reflect the company's realized refining and marketing gross margin. For more details, including how the 5-2-2-1 index is calculated, see Suncor's 2025 annual MD&A. |
|
10 2026 Second Quarter Suncor Energy Inc. |
3. Segment Results and Analysis
Oil Sands
Financial Highlights
|
Three months ended |
Six months ended |
||||
|
($ millions) |
|
2026 |
2025 |
2026 |
2025 |
|
Operating revenues |
9 043 |
6 440 |
16 557 |
13 581 |
|
|
Less: Royalties |
(1 222) |
(596) |
(1 934) |
(1 411) |
|
|
Operating revenues, net of royalties |
7 821 |
5 844 |
14 623 |
12 170 |
|
|
Earnings before income taxes |
2 691 |
844 |
4 207 |
2 519 |
|
|
Adjusted for: |
|||||
|
Unrealized (gain) loss on risk management activities |
(99) |
82 |
(41) |
27 |
|
|
Adjusted operating earnings(1) |
2 592 |
926 |
4 166 |
2 546 |
|
|
Adjusted funds from operations(1) |
3 819 |
2 399 |
6 713 |
5 209 |
|
|
Free funds flow(1) |
2 905 |
1 290 |
5 053 |
3 351 |
|
| (1) | Non-GAAP financial measures. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
Oil Sands segment adjusted operating earnings increased to $2.592 billion in the second quarter of 2026, compared to $926 million in the prior year quarter, primarily due to increased price realizations, partially offset by a corresponding increase in royalties, decreased sales volumes and increased operating expenses.
|
2026 Second Quarter Suncor Energy Inc. 11 |
Management's Discussion and Analysis
Production Volumes
|
Three months ended |
Six months ended |
||||
|
(mbbls/d) |
|
2026 |
2025 |
2026 |
2025 |
|
Oil Sands bitumen |
|||||
|
Upgrader bitumen throughput |
607.3 |
550.6 |
630.9 |
616.5 |
|
|
Non-upgraded bitumen production |
207.9 |
310.2 |
243.5 |
282.4 |
|
|
Total Oil Sands bitumen production |
815.2 |
860.8 |
874.4 |
898.9 |
|
|
Upgraded - net SCO and diesel |
|||||
|
Oil Sands operations(1)(2) |
310.8 |
280.6 |
344.5 |
320.7 |
|
|
Syncrude(1)(2) |
199.2 |
187.4 |
185.7 |
196.7 |
|
|
Inter-asset transfers and consumption(3)(4) |
(27.8) |
(29.8) |
(29.6) |
(30.3) |
|
|
Upgraded - net SCO and diesel production |
482.2 |
438.2 |
500.6 |
487.1 |
|
|
Non-upgraded bitumen |
|||||
|
Oil Sands operations |
119.7 |
162.8 |
140.3 |
164.1 |
|
|
Fort Hills |
154.2 |
162.9 |
170.6 |
169.6 |
|
|
Syncrude |
- |
9.1 |
8.2 |
4.6 |
|
|
Inter-asset transfers(5) |
(66.0) |
(24.6) |
(75.6) |
(55.9) |
|
|
Non-upgraded bitumen production |
207.9 |
310.2 |
243.5 |
282.4 |
|
|
Oil Sands production volumes to market |
|||||
|
Upgraded - net SCO and diesel |
482.2 |
438.2 |
500.6 |
487.1 |
|
|
Non-upgraded bitumen |
207.9 |
310.2 |
243.5 |
282.4 |
|
|
Total Oil Sands production volumes |
690.1 |
748.4 |
744.1 |
769.5 |
|
| (1) | Oil Sands Base upgrader yields are approximately 80% of bitumen throughput and Syncrude upgrader yield is approximately 85% of bitumen throughput. |
| (2) | Upgrader utilization rates are calculated using total upgraded production, inclusive of internally consumed products and inter-asset transfers. |
| (3) | Both Oil Sands operations and Syncrude produce diesel and other products, which are internally consumed in operations. In the second quarter of 2026, Oil Sands operations produced 14,900 bbls/d of internally consumed products, of which 6,900 bbls/d was consumed at Oil Sands operations, 6,700 bbls/d was consumed at Fort Hills and 1,300 bbls/d was consumed at Syncrude. Syncrude produced 3,700 bbls/d of internally consumed products. |
| (4) | In the second quarter of 2026, upgraded inter-asset transfers consisted of 9,200 bbls/d of sour SCO that was transferred from Oil Sands operations to Syncrude. |
| (5) | In the second quarter of 2026, non-upgraded inter-asset transfers consisted of 48,900 bbls/d of bitumen that was transferred from Fort Hills to Oil Sands Base, and 17,100 bbls/d of bitumen that was transferred from Firebag to Syncrude. |
Total Oil Sands bitumen production was 815,200 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 in the second quarter of 2026, compared to 438,200 bbls/d in the prior year quarter, with upgrader utilization of 97% at Syncrude and 89% at Oil Sands Base, compared to 91% and 80%, respectively, in the prior year quarter. The increase in net SCO production was 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.
|
12 2026 Second Quarter Suncor Energy Inc. |
Sales Volumes
|
Three months ended |
Six months ended |
||||
|
(mbbls/d) |
|
2026 |
2025 |
2026 |
2025 |
|
Upgraded - net SCO and diesel |
484.8 |
440.2 |
497.3 |
484.1 |
|
|
Non-upgraded bitumen |
219.7 |
307.6 |
253.1 |
276.4 |
|
|
Total |
704.5 |
747.8 |
750.4 |
760.5 |
|
SCO and diesel sales volumes were 484,800 bbls/d in the second quarter of 2026, compared to 440,200 bbls/d in the prior year quarter, with the increase primarily due to higher SCO production volumes in the current quarter.
Non-upgraded bitumen sales volumes decreased to 219,700 bbls/d in the second quarter of 2026, compared to 307,600 bbls/d in the prior year quarter, primarily due to decreased non-upgraded bitumen production volumes.
Price Realizations(1)(2)
|
Before royalties |
Three months ended |
Six months ended |
|||
|
($/bbl) |
|
2026 |
2025 |
2026 |
2025 |
|
Upgraded - net SCO and diesel |
143.55 |
90.10 |
121.90 |
95.08 |
|
|
Non-upgraded bitumen |
98.79 |
67.95 |
88.07 |
72.38 |
|
|
Weighted average |
129.59 |
80.98 |
110.48 |
86.83 |
|
|
Weighted average crude, relative to WTI |
1.15 |
(7.18) |
(3.24) |
(8.34) |
|
| (1) | Contains non-GAAP financial measures. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
| (2) | Beginning in the first quarter of 2026, the company revised the calculation of price realizations to exclude transportation and distribution expenses to better align with how management evaluates performance. Prior period comparatives have been restated to reflect this change. |
Oil Sands price realizations increased in the second quarter of 2026 compared to the prior year quarter, primarily due to higher crude oil benchmark pricing, strong current quarter SCO premiums and an increased proportion of higher value upgraded SCO sales volumes, partially offset by wider heavy crude oil differentials.
Royalties
Royalties for the Oil Sands segment increased in the second quarter of 2026 compared to the prior year quarter, primarily due to higher Canadian heavy crude pricing.
Expenses and Other Factors
Total Oil Sands operating expenses increased in the second quarter of 2026 compared to the prior year quarter, primarily due to increased mining activity, in part due to unprecedented wet weather conditions and increased In Situ maintenance activities.
Depreciation, depletion and amortization (DD&A) expense was comparable to the prior year quarter.
Exploration expenses increased in the second quarter of 2026 compared to the prior year quarter, primarily due to In Situ development activities.
Transportation costs decreased in the second quarter of 2026 compared to the prior year quarter, primarily due to decreased exports to the U.S. Gulf Coast.
Financing expense and other, which includes other income, was comparable to the prior year quarter.
|
2026 Second Quarter Suncor Energy Inc. 13 |
Management's Discussion and Analysis
Cash Operating Costs
|
Three months ended |
Six months ended |
||||
|
($ millions, except as noted) |
|
2026 |
2025 |
2026 |
2025 |
|
Oil Sands OS&G(1) |
2 558 |
2 356 |
5 270 |
4 748 |
|
|
Oil Sands operations cash operating costs reconciliation |
|||||
|
Oil Sands operations OS&G |
1 260 |
1 177 |
2 666 |
2 463 |
|
|
Non-production costs(3) |
97 |
17 |
192 |
143 |
|
|
Excess power capacity and other(4) |
(76) |
(68) |
(172) |
(163) |
|
|
Oil Sands operations cash operating costs(2) |
1 281 |
1 126 |
2 686 |
2 443 |
|
|
Oil Sands operations production volumes (mbbls/d) |
430.5 |
443.4 |
484.8 |
484.8 |
|
|
Oil Sands operations cash operating costs(2) ($/bbl) |
32.70 |
27.95 |
30.60 |
27.85 |
|
|
Fort Hills cash operating costs reconciliation |
|||||
|
Fort Hills OS&G |
751 |
633 |
1 430 |
1 250 |
|
|
Non-production costs(3) |
(124) |
(82) |
(224) |
(156) |
|
|
Excess power capacity(4) |
(2) |
(7) |
(7) |
(12) |
|
|
Fort Hills cash operating costs(2) |
625 |
544 |
1 199 |
1 082 |
|
|
Fort Hills production volumes (mbbls/d) |
154.2 |
162.9 |
170.6 |
169.6 |
|
|
Fort Hills cash operating costs(2) ($/bbl) |
44.50 |
36.75 |
38.80 |
35.25 |
|
|
Syncrude cash operating costs reconciliation |
|||||
|
Syncrude OS&G |
725 |
650 |
1 470 |
1 309 |
|
|
Non-production costs(3) |
5 |
4 |
(23) |
18 |
|
|
Excess power capacity(4) |
(2) |
(2) |
(3) |
(5) |
|
|
Syncrude cash operating costs(2) |
728 |
652 |
1 444 |
1 322 |
|
|
Syncrude production volumes (mbbls/d) |
199.2 |
196.5 |
193.9 |
201.3 |
|
|
Syncrude cash operating costs(2) ($/bbl) |
40.15 |
36.50 |
41.15 |
36.30 |
|
| (1) | Oil Sands inventory changes and internal transfers are presented on an aggregate basis and reflect: i) the impacts of changes in inventory levels and valuations, such that the company is able to present cost information based on production volumes; and ii) adjustments for internal diesel sales between assets. In the second quarter and first six months of 2026, Oil Sands OS&G included ($178) million and ($296) million, respectively, of inventory changes and internal transfers. In the second quarter and first six months of 2025, Oil Sands OS&G included ($104) million and ($274) million of inventory changes and internal transfers. |
| (2) | Non-GAAP financial measures. Related per barrel amounts contain non-GAAP financial measures. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
| (3) | Non-production costs include, but are not limited to, share-based compensation adjustments, research costs, project startup costs, asset advancement costs and adjustments to reflect the cost of internal transfers in the receiving asset at the cost of production versus the cost of purchase. Non-production costs at Fort Hills and Syncrude also include, but are not limited to, an adjustment to reflect internally produced diesel from Oil Sands operations at the cost of production. |
| (4) | Represents excess power revenue from cogeneration units that is recorded in operating revenues. Oil Sands operations excess power capacity and other also includes, but is not limited to, the natural gas expense recorded as part of a non-monetary arrangement involving a third-party processor. |
Oil Sands operations cash operating costs per barrel(1) were $32.70 in the second quarter of 2026, compared to $27.95 in the prior year quarter, with the increase primarily due to a higher proportion of Fort Hills bitumen being directed to upgrading at Oil Sands Base, a higher proportion of mined bitumen production relative to lower cost In Situ production as a result of the Firebag turnaround, incremental costs associated with unprecedented wet weather conditions, and increased maintenance activities at Firebag.
Fort Hills cash operating costs per barrel(1) were $44.50 in the second quarter of 2026, compared to $36.75 in the prior year quarter, with the increase primarily due to higher mining activity, in part due to incremental costs associated with unprecedented wet weather conditions, decreased production volumes and increased commodity input costs.
Syncrude cash operating costs per barrel(1) were $40.15 in the second quarter of 2026, compared to $36.50 in the prior year quarter, with the increase primarily due to increased mining activity, in part due to incremental costs associated with unprecedented wet weather conditions, partially offset by increased production volumes and decreased maintenance activities.
|
(1) |
Contains non-GAAP financial measures. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
|
14 2026 Second Quarter Suncor Energy Inc. |
Results for the First Six Months of 2026
Oil Sands earnings before income taxes for the first six months of 2026 were $4.207 billion, compared to $2.519 billion in the prior year period. In addition to the factors impacting adjusted operating earnings, earnings before income taxes for the first six months of 2026 included a $41 million unrealized gain on risk management activities, compared to a $27 million unrealized loss in the prior year period.
Oil Sands adjusted operating earnings for the first six months of 2026 were $4.166 billion, compared to $2.546 billion in the prior year period, with the increase primarily due to increased price realizations, partially offset by a corresponding increase in royalties, and increased operating and transportation expenses.
Oil Sands adjusted funds from operations for the first six months of 2026 were $6.713 billion, compared to $5.209 billion in the prior year period, with the increase primarily due to the same factors that influenced adjusted operating earnings.
Oil Sands operations cash operating costs per barrel were $30.60 for the first six months of 2026, compared to $27.85 in the prior year period, with the increase primarily due to a higher proportion of Fort Hills bitumen being directed to upgrading at Oil Sands Base, a higher proportion of mined bitumen production relative to lower cost In Situ production as a result of the Firebag turnaround in the second quarter of 2026, increased maintenance activities at Firebag and incremental costs associated with unprecedented wet weather conditions in the second quarter of 2026.
Fort Hills cash operating costs per barrel were $38.80 for the first six months of 2026, compared to $35.25 in the prior year period, with the increase primarily due to increased mining activity, in part due to incremental costs related to unprecedented wet weather conditions in the second quarter of 2026 and higher commodity input costs.
Syncrude cash operating costs per barrel were $41.15 for the first six months of 2026, compared to $36.30 in the prior year period, with the increase primarily due to increased mining activity, in part due to incremental costs associated with unprecedented wet weather conditions in the second quarter of 2026, decreased production volumes and increased maintenance activities.
Planned Maintenance Update
Updates to the planned maintenance activities affecting the Oil Sands segment, as discussed in the 2025 annual MD&A, are as follows:
| ● | Planned maintenance at the Syncrude Plant and Mine originally scheduled for the second quarter was deferred to the third quarter. |
|
2026 Second Quarter Suncor Energy Inc. 15 |
Management's Discussion and Analysis
Exploration and Production
Financial Highlights
|
Three months ended |
Six months ended |
||||
|
($ millions) |
|
2026 |
2025 |
2026 |
2025 |
|
Operating revenues(1) |
1 147 |
665 |
2 108 |
1 394 |
|
|
Less: Royalties(1) |
(291) |
(162) |
(520) |
(354) |
|
|
Operating revenues, net of royalties |
856 |
503 |
1 588 |
1 040 |
|
|
Earnings before income taxes |
465 |
165 |
847 |
323 |
|
|
Adjusted operating earnings(2) |
465 |
165 |
847 |
323 |
|
|
Adjusted funds from operations(2) |
652 |
372 |
1 214 |
702 |
|
|
Free funds flow(2) |
526 |
143 |
960 |
264 |
|
| (1) | Production from the company's Libya operations is presented on an economic basis. Revenue and royalties from the company's Libya operations are presented on a working-interest basis, which is required for presentation purposes in the company's Consolidated Financial Statements. See the E&P price realizations table in the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
| (2) | Non-GAAP financial measures. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
Adjusted operating earnings for the E&P segment in the second quarter of 2026 increased to $465 million, compared to $165 million in the prior year quarter, primarily due to higher price realizations as a result of higher benchmark pricing and increased sales volumes, partially offset by increased royalties.
Volumes
|
Three months ended |
Six months ended |
||||
|
(mbbls/d) |
|
2026 |
2025 |
2026 |
2025 |
|
E&P Canada |
68.6 |
56.4 |
69.9 |
56.0 |
|
|
E&P International |
2.2 |
3.3 |
3.8 |
5.0 |
|
|
Total production |
70.8 |
59.7 |
73.7 |
61.0 |
|
|
Total sales volumes |
77.6 |
65.0 |
76.3 |
60.1 |
|
E&P production increased to 70,800 bbls/d in the second quarter of 2026, compared to 59,700 bbls/d in the prior year quarter, and featured strong production at all assets.
Total E&P sales volumes increased to 77,600 bbls/d in the second quarter of 2026, compared to 65,000 bbls/d in the prior year quarter, primarily due to increased production and the timing of cargo sales in E&P Canada.
Price Realizations(1)(2)
|
Before royalties |
Three months ended |
Six months ended |
|||
|
($/bbl) |
|
2026 |
2025 |
2026 |
2025 |
|
E&P Canada |
148.48 |
97.05 |
132.20 |
101.93 |
|
| (1) | Contains non-GAAP financial measures. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
| (2) | Beginning in the first quarter of 2026, the company revised the calculation of price realizations to exclude transportation and distribution expenses to better align with how management evaluates performance. Prior period comparatives have been restated to reflect this change. |
E&P price realizations increased in the second quarter of 2026 compared to the prior year quarter, in line with the increase in benchmark prices for Brent crude.
Royalties
E&P royalties, excluding the impact of Libya, increased in the second quarter of 2026 compared to the prior year quarter, primarily due to the increase in price realizations and sales volumes.
Expenses and Other Factors
Operating and transportation expenses increased in the second quarter of 2026 compared to the prior year quarter, primarily due to increased sales volumes.
|
16 2026 Second Quarter Suncor Energy Inc. |
Results for the First Six Months of 2026
Earnings before income taxes for E&P for the first six months of 2026 were $847 million, compared to $323 million in the prior year period.
Adjusted operating earnings for E&P for the first six months of 2026 were $847 million, compared to $323 million in the prior year period, with the increase primarily due to higher price realizations as a result of higher benchmark pricing and increased sales volumes, partially offset by increased royalties.
Adjusted funds from operations for the first six months of 2026 were $1.214 billion, compared to $702 million in the prior year period, with the increase primarily due to the same factors that influenced adjusted operating earnings.
Planned Maintenance Update for Operated Assets
There are no updates to the planned maintenance activities affecting the E&P segment as discussed in the 2025 annual MD&A.
|
2026 Second Quarter Suncor Energy Inc. 17 |
Management's Discussion and Analysis
Refining and Marketing
Financial Highlights
|
Three months ended |
Six months ended |
||||
|
($ millions) |
|
2026 |
2025 |
2026 |
2025 |
|
Operating revenues |
11 890 |
7 310 |
21 019 |
14 938 |
|
|
Earnings before income taxes |
2 100 |
377 |
3 750 |
1 049 |
|
|
Adjusted for: |
|||||
|
Unrealized (gain) loss on risk management activities |
(32) |
(14) |
2 |
(19) |
|
|
Write-down of equity investment(1) |
- |
41 |
- |
41 |
|
|
Adjusted operating earnings(2) |
2 068 |
404 |
3 752 |
1 071 |
|
|
Adjusted funds from operations(2) |
2 299 |
615 |
4 280 |
1 517 |
|
|
Free funds flow(2) |
1 999 |
253 |
3 748 |
975 |
|
| (1) | During the second quarter of 2025, Suncor recorded a write-down of an equity investment of $41 million. |
| (2) | Non-GAAP financial measures. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
R&M adjusted operating earnings in the second quarter of 2026 increased to $2.068 billion, compared to $404 million in the prior year quarter, primarily due to higher benchmark crack spreads, a FIFO inventory valuation gain and increased refinery production and sales volumes, partially offset by a related increase in transportation expenses.
Volumes
|
Three months ended |
Six months ended |
||||
|
|
2026 |
2025 |
2026 |
2025 |
|
|
Refinery crude oil throughput (mbbls/d) |
470.6 |
442.3 |
484.1 |
462.4 |
|
|
Refinery utilization(1) (%) |
92 |
87 |
95 |
90 |
|
|
Refined product sales (mbbls/d) |
|||||
|
Gasoline |
250.3 |
251.1 |
259.8 |
256.9 |
|
|
Distillate |
306.6 |
270.1 |
312.2 |
266.4 |
|
|
Other |
97.9 |
79.3 |
95.7 |
79.3 |
|
|
Total |
654.8 |
600.5 |
667.7 |
602.6 |
|
|
Refinery production(2) (mbbls) |
45 812 |
42 282 |
93 393 |
88 080 |
|
|
Refining and marketing gross margin - First-in, first-out (FIFO)(3) ($/bbl) |
69.65 |
32.45 |
64.30 |
34.65 |
|
|
Refining and marketing gross margin - Last-in, first-out (LIFO)(3) ($/bbl) |
61.50 |
34.40 |
54.75 |
36.30 |
|
|
Refining operating expense(3) ($/bbl) |
6.35 |
6.85 |
6.55 |
6.80 |
|
| (1) | Refinery utilization is the amount of crude oil and natural gas liquids processed by crude distillation units, expressed as a percentage of the nameplate capacity of these units. 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. |
| (2) | Refinery production is the output of the refining process and differs from crude oil processed as a result of volumetric adjustments for non-crude feedstock, volumetric gain associated with the refining process and changes in unfinished product inventories. |
| (3) | Contains non-GAAP financial measures. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
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. |
|
18 2026 Second Quarter Suncor Energy Inc. |
Refining and Marketing Gross Margins(1)
Refining and marketing gross margins were influenced by the following:
| ● | On a LIFO(2) basis, Suncor's refining and marketing gross margin increased to $61.50/bbl in the second quarter of 2026, from $34.40/bbl in the prior year quarter, primarily due to higher benchmark crack spreads, partially offset by higher SCO feedstock costs in the current quarter. Margin capture(1) was 89% compared to Suncor's 5-2-2-1 index in the second quarter of 2026 and was impacted by price volatility in the global benchmarks that was not fully realized in Suncor's regional markets, including higher Renewable Volume Obligation (RVO) embedded in the benchmarks. |
| ● | On a FIFO basis, Suncor's refining and marketing gross margin increased to $69.65/bbl in the second quarter of 2026, from $32.45/bbl in the prior year quarter, due to the same factors discussed above, in addition to FIFO inventory valuation impacts. In the second quarter of 2026, the FIFO method of inventory valuation resulted in a gain of $373 million compared to a loss of $82 million in the prior year quarter, for a favourable quarter-over-quarter impact of $455 million. |
Expenses and Other Factors
Operating expenses in the second quarter of 2026 were comparable to the prior year quarter. Transportation expenses increased compared to the prior year quarter, primarily due to increased sales volumes, including higher global exports.
Refining operating expense per barrel(1) decreased to $6.35 in the second quarter of 2026, compared to $6.85 in the prior year quarter, primarily due to increased refinery production.
Results for the First Six Months of 2026
R&M's earnings before income taxes were $3.750 billion for the first six months of 2026, compared to $1.049 billion in the prior year period. In addition to the factors impacting adjusted operating earnings, earnings before income taxes for the first six months of 2026 included a $2 million unrealized loss on risk management activities, compared to a $19 million unrealized gain in the prior year period. The prior year period was also impacted by a $41 million write-down of an equity investment.
Adjusted operating earnings for R&M in the first six months of 2026 were $3.752 billion, compared to $1.071 billion in the prior year period, with the increase primarily due to higher benchmark crack spreads, a significant FIFO inventory valuation gain related to the strengthening of benchmark crude pricing in the current period and increased refinery production, partially offset by a related increase in operating and transportation expenses. In the first six months of 2026, the impact of the FIFO method of inventory valuation, relative to an estimated LIFO method, had a positive impact to adjusted operating earnings and adjusted funds from operations of $891 million, compared to a negative impact of $142 million in the prior year period.
R&M's adjusted funds from operations in the first six months of 2026 were $4.280 billion, compared to $1.517 billion in the prior year period, with the increase primarily due to the same factors that influenced adjusted operating earnings.
Planned Maintenance Update
There are no updates to the planned maintenance activities affecting the R&M segment as discussed in the 2025 annual MD&A.
|
(1) |
Contains non-GAAP financial measures. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
|
(2) |
The estimated impact of the LIFO method is a non-GAAP financial measure. The impact of the FIFO method of inventory valuation, relative to an estimated LIFO accounting method, also includes the impact of the realized portion of commodity risk management activities. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
|
2026 Second Quarter Suncor Energy Inc. 19 |
Management's Discussion and Analysis
Corporate and Eliminations
Financial Highlights
|
Three months ended |
Six months ended |
||||
|
($ millions) |
|
2026 |
2025 |
2026 |
2025 |
|
(Loss) earnings before income taxes |
(277) |
48 |
(999) |
(167) |
|
|
Adjusted for: |
|||||
|
Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt |
132 |
(461) |
271 |
(475) |
|
|
One-time legislative change to benefits(1) |
63 |
- |
63 |
- |
|
|
Write-down of equity investment(2) |
- |
95 |
- |
95 |
|
|
Adjusted operating loss(3) |
(82) |
(318) |
(665) |
(547) |
|
|
Corporate |
(121) |
(345) |
(423) |
(646) |
|
|
Eliminations - Intersegment profit realized (eliminated) |
39 |
27 |
(242) |
99 |
|
|
Adjusted funds used in operations(3) |
(123) |
(285) |
(753) |
(634) |
|
|
Free funds deficit(3) |
(132) |
(293) |
(773) |
(649) |
|
| (1) | During the second quarter of 2026, Suncor recorded a one-time expense of $63 million for legislative changes to Alberta seniors benefits. |
| (2) | During the second quarter of 2025, Suncor recorded a write-down of an equity investment of $95 million. |
| (3) | Non-GAAP financial measures. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
Corporate incurred an adjusted operating loss of $121 million in the second quarter of 2026, compared to a loss of $345 million in the prior year quarter. The decreased loss was primarily due to an operational foreign exchange gain in the current quarter compared to a loss recognized in the prior year quarter, and decreased share-based compensation expense in the current quarter.
Eliminations reflect the deferral or realization of profit or loss on crude oil sales from Oil Sands to Suncor's refineries. Consolidated profits and losses are only realized when the refined products from internal purchases have been sold to third parties. During the second quarter of 2026, the company realized $39 million of intersegment profit compared to a realization of $27 million in the prior year quarter. The realization of intersegment profit in the second quarter of 2026 was primarily driven by a weakening of benchmark crude pricing in the current quarter.
Corporate and Eliminations adjusted funds used in operations were $123 million for the second quarter of 2026, compared to adjusted funds used in operations of $285 million in the prior year quarter, and were influenced by the same factors impacting adjusted operating loss, excluding the impact of share-based compensation expense.
Results for the First Six Months of 2026
Corporate and Eliminations loss before income taxes was $999 million for the first six months of 2026, compared to $167 million in the prior year period. In addition to the factors impacting adjusted operating loss, the loss before income taxes for the first six months of 2026 included a $271 million unrealized foreign exchange loss on the revaluation of U.S. dollar denominated debt, compared to a $475 million gain in the prior year period. The current year period was also impacted by a one-time charge of $63 million for legislative changes to Alberta seniors benefits. The prior year period was also impacted by a $95 million write-down of an equity investment.
The adjusted operating loss for Corporate and Eliminations for the first six months of 2026 was $665 million, compared to $547 million in the prior year period. The increased loss was primarily attributed to an elimination of intersegment profit in the current period, compared to a realization in the prior year period, and increased share-based compensation expense in the current period, partially offset by an operational foreign exchange gain in the current period, compared to a loss in the prior year period.
Corporate and Eliminations adjusted funds used in operations for the first six months of 2026 were $753 million, compared to $634 million in the prior year period, and were influenced by the same factors impacting adjusted operating loss, excluding the impact of share-based compensation expense.
|
20 2026 Second Quarter Suncor Energy Inc. |
4. Income Tax
|
Three months ended |
Six months ended |
||||
|
($ millions) |
|
2026 |
2025 |
2026 |
2025 |
|
Current income tax expense |
1 318 |
412 |
2 095 |
1 060 |
|
|
Deferred income tax recovery |
(71) |
(112) |
(122) |
(159) |
|
|
Income tax expense included in net earnings |
1 247 |
300 |
1 973 |
901 |
|
|
Less: Income tax expense (recovery) on adjusted operating earnings adjustments |
8 |
(4) |
(23) |
10 |
|
|
Income tax expense included in adjusted operating earnings |
1 239 |
304 |
1 996 |
891 |
|
|
Effective tax rate |
25.0% |
20.9% |
25.3% |
24.2% |
|
The provision for income taxes in the second quarter of 2026 increased to $1.247 billion, compared to $300 million in the prior year quarter, primarily due to higher taxable earnings. In the second quarter of 2026, the company's effective tax rate on net earnings increased compared to the prior year quarter, primarily due to the impact of non-taxable foreign exchange losses on the revaluation of U.S. dollar denominated debt and other permanent items impacting total tax expense in the current quarter.
The provision for income taxes in the first six months of 2026 increased to $1.973 billion, compared to $901 million in the prior year period, primarily due to higher taxable earnings. In the first six months of 2026, the company's effective tax rate on net earnings increased compared to the prior year period, primarily due to the impact of non-taxable foreign exchange losses on the revaluation of U.S. dollar denominated debt and other permanent items impacting total tax expense in the current quarter.
|
2026 Second Quarter Suncor Energy Inc. 21 |
Management's Discussion and Analysis
5. Capital Investment Update
Capital Expenditures by Type, Excluding Capitalized Interest
|
Three months ended |
Six months ended |
|||||||||||
|
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||
|
Asset Sustainment and |
Economic |
Asset Sustainment and |
Economic |
|||||||||
|
($ millions) |
|
Maintenance(1) |
Investment(2) |
Total |
Total |
Maintenance(1) |
Investment(2) |
Total |
Total |
|||
|
Oil Sands |
||||||||||||
|
Oil Sands Base |
276 |
30 |
306 |
559 |
420 |
108 |
528 |
801 |
||||
|
In Situ |
117 |
144 |
261 |
118 |
179 |
226 |
405 |
260 |
||||
|
Fort Hills |
74 |
61 |
135 |
194 |
110 |
202 |
312 |
317 |
||||
|
Syncrude |
133 |
62 |
195 |
195 |
282 |
98 |
380 |
397 |
||||
|
E&P |
- |
105 |
105 |
213 |
- |
212 |
212 |
404 |
||||
|
R&M |
221 |
78 |
299 |
362 |
400 |
129 |
529 |
542 |
||||
|
Corporate and Eliminations |
7 |
2 |
9 |
8 |
17 |
3 |
20 |
15 |
||||
|
828 |
482 |
1 310 |
1 649 |
1 408 |
978 |
2 386 |
2 736 |
|||||
|
Capitalized interest on debt |
39 |
59 |
80 |
117 |
||||||||
|
Total capital expenditures |
1 349 |
1 708 |
2 466 |
2 853 |
||||||||
| (1) | Asset sustainment and maintenance capital expenditures include capital investments that are intended to deliver on existing value by ensuring compliance with regulators and other stakeholders and maintaining current processing capacity. |
| (2) | Economic investment capital expenditures include capital investments that are expected to result in an increase in value by adding reserves or improving processing capacity, utilization, cost or margin, including associated infrastructure. |
During the second quarter of 2026, the company incurred $1.310 billion of capital expenditures, excluding capitalized interest, compared to $1.649 billion in the prior year quarter. Suncor capitalized $39 million of its borrowing costs in the second quarter of 2026 as part of the cost of major development assets and construction projects in progress, compared to $59 million in the prior year quarter.
Economic investment capital expenditures in the second quarter of 2026 included:
| ● | The ongoing design and construction of well pads to develop additional reserves that are intended to maintain existing production levels and initiatives to add incremental capacity at In Situ. |
| ● | Advancing the second opening at the Fort Hills North Pit mine. |
| ● | Progressing the Mildred Lake Mine Extension East project and preparation for autonomous haul system conversion at Syncrude. |
| ● | Progressing the West White Rose project within the E&P segment, which is nearing completion. |
| ● | Enhancing R&M sales and marketing business, including continued strategic investment in specific company-owned retail sites. |
Asset sustainment and maintenance capital expenditures in the second quarter of 2026 included:
| ● | Planned maintenance and turnaround activity, mine tailing development to support ongoing operations, and other maintenance projects within the Oil Sands segment. |
| ● | Planned maintenance and turnaround activity and ongoing sustainment of refinery, retail and logistics assets within the R&M segment. |
|
22 2026 Second Quarter Suncor Energy Inc. |
6. Financial Condition and Liquidity
Indicators
|
Twelve months ended |
|||
|
|
2026 |
2025 |
|
|
Return on capital employed (ROCE)(1) (%) |
18.3 |
11.1 |
|
|
Net debt to adjusted funds from operations(1) (times) |
0.3 |
0.6 |
|
|
Total debt to total debt plus shareholders' equity(1) (%) |
17.0 |
18.2 |
|
|
Net debt to net debt plus shareholders' equity(1) (%) |
8.5 |
14.7 |
|
| (1) | Non-GAAP financial measures or contains non-GAAP financial measures. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
Capital Resources
Suncor's capital resources consist primarily of cash flow provided by operating activities, cash and cash equivalents, and available lines of credit. Suncor's management believes the company will have the capital resources required to fund its planned 2026 capital spending program of $5.6 billion to $5.8 billion, and to meet working capital requirements, through cash and cash equivalents balances, cash flow provided by operating activities, available committed credit facilities, issuing commercial paper and, if needed, accessing capital markets. The company's cash flow provided by operating activities depends on several factors, including commodity prices, production, sales volumes, refining and marketing gross margins, operating expenses, taxes, royalties and foreign exchange rates.
The company has invested cash in short-term financial instruments that are presented as cash and cash equivalents. The objectives of the company's short-term investment portfolio are to ensure the preservation of capital, maintain adequate liquidity to meet Suncor's cash flow requirements, and deliver competitive returns derived from the quality and diversification of investments within acceptable risk parameters. The maximum weighted average term to maturity of the short-term investment portfolio is not expected to exceed six months, and all investments are with counterparties with investment-grade debt ratings.
Available Sources of Liquidity
For the three months ended June 30, 2026, cash and cash equivalents increased to $5.372 billion from $3.271 billion as at March 31, 2026. The source of cash in the second quarter of 2026 was primarily due to the company's cash flow provided by operating activities exceeding the company's shareholder returns, including the repurchase of Suncor's common shares under its normal course issuer bid (NCIB) and the payment of dividends, and the company's capital expenditures.
For the six months ended June 30, 2026, cash and cash equivalents increased to $5.372 billion from $3.650 billion as at December 31, 2025. The source of cash in the first six months of 2026 was primarily due to the company's cash flow provided by operating activities exceeding the company's shareholder returns, including the repurchase of Suncor's common shares under its NCIB and the payment of dividends, and the company's capital expenditures.
As at June 30, 2026, the weighted average days to maturity of the company's short-term investment portfolio was approximately 31 days.
As at June 30, 2026, available credit facilities for liquidity purposes were $5.307 billion, compared to $5.219 billion as at December 31, 2025. During the second quarter of 2026, the company entered into an additional $850 million of uncommitted credit facilities supporting the issuance of letters of credit. The facilities do not increase available borrowing capacity for liquidity purposes.
Financing Activities
Management of debt levels and liquidity continues to be a priority for Suncor given the company's long-term plans and the expected future volatility in the business environment. Suncor believes a phased and flexible approach to existing and future projects will help the company maintain its ability to manage project costs and debt levels.
Total Debt to Total Debt Plus Shareholders' Equity
Suncor is subject to financial and operating covenants related to its bank debt and public market debt. Failure to meet the terms of one or more of these covenants may constitute an "event of default" as defined in the respective debt agreements, potentially resulting in accelerated repayment of one or more of the debt obligations. The company is in compliance with its financial covenant that requires total debt and lease liabilities to not exceed 65% of its total debt and lease liabilities plus shareholders' equity. As at June 30, 2026, total debt and lease liabilities to total debt and lease liabilities plus shareholders' equity was 23.4% (December 31, 2025 - 24.3%). The company also continues to be in compliance with all operating covenants under its debt agreements.
|
2026 Second Quarter Suncor Energy Inc. 23 |
Management's Discussion and Analysis
Change in Debt
|
Three months ended |
Six months ended |
||
|
($ millions) |
|
June 30, 2026 |
June 30, 2026 |
|
Total debt(1) - beginning of period |
10 113 |
9 987 |
|
|
Decrease in long-term debt |
(378) |
(378) |
|
|
Decrease in short-term debt |
- |
- |
|
|
Foreign exchange on debt, and other |
118 |
244 |
|
|
Total debt(1) - June 30, 2026 |
9 853 |
9 853 |
|
|
Less: Cash and cash equivalents - June 30, 2026 |
5 372 |
5 372 |
|
|
Net debt (1) - June 30, 2026 |
4 481 |
4 481 |
| (1) | Non-GAAP financial measures. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
During the second quarter of 2026, the company fully repaid its US$275 million 7.875% debentures upon maturity in June 2026.
The company's total debt decreased in the second quarter of 2026, primarily due to the repayment of long-term debt discussed above, partially offset by unfavourable foreign exchange rates on U.S. dollar denominated debt compared to March 31, 2026.
The company's total debt decreased in the first six months of 2026, primarily due to the repayment of long-term debt discussed above, partially offset by unfavourable foreign exchange rates on U.S. dollar denominated debt compared to December 31, 2025.
As at June 30, 2026, Suncor's net debt was $4.481 billion, compared to $6.337 billion as at December 31, 2025. The decrease in net debt was primarily due to an increase in cash and cash equivalents and the factors discussed above.
Common Shares
|
June 30, |
||
|
(thousands) |
|
2026 |
|
Common shares |
1 172 830 |
|
|
Common share options - exercisable |
1 400 |
|
|
Common share options - non-exercisable |
1 594 |
As at July 30, 2026, the total number of common shares outstanding was 1,169,629,612 and the total number of exercisable and non-exercisable common share options outstanding was 2,969,411. Once vested, each outstanding common share option is exercisable for one common share.
|
24 2026 Second Quarter Suncor Energy Inc. |
Share Repurchases
|
Maximum |
Maximum |
Number of |
||||||||
|
Commencement |
Shares |
Shares |
Shares |
|||||||
|
(thousands of common shares) |
|
Date |
|
Expiry |
|
for Repurchase |
|
Repurchase (%) |
|
Repurchased |
|
2024 NCIB |
February 26, 2024 |
February 25, 2025 |
128 700 |
10 |
61 066 |
|||||
|
2025 NCIB |
March 3, 2025 |
March 2, 2026 |
123 800 |
10 |
54 151 |
|||||
|
2026 NCIB |
March 3, 2026 |
March 2, 2027 |
118 700 |
10 |
19 404 |
Between March 3, 2026, and July 30, 2026, pursuant to Suncor's current NCIB, Suncor repurchased 19,403,868 common shares on the open market, representing the equivalent of 1.6% of its common shares as at February 18, 2026, for $1.675 billion, at a weighted average price of $86.33 per common share.
The actual number of common shares that may be repurchased under the NCIB and the timing of any such repurchases will be determined by Suncor. The company believes that repurchasing its own shares represents an attractive investment opportunity and is in the best interests of the company and its shareholders. The company does not expect that the decision to allocate cash to repurchase shares will affect its long-term strategy.
|
Three months ended |
Six months ended |
||||
|
($ millions, except as noted) |
|
2026 |
2025 |
2026 |
2025 |
|
Share repurchase activities (thousands of common shares) |
12 018 |
14 993 |
23 090 |
28 593 |
|
|
Weighted average repurchase price per share (dollars per share) |
87.38 |
50.03 |
81.21 |
52.46 |
|
|
Share repurchase cost(1) |
1 050 |
750 |
1 875 |
1 500 |
|
| (1) | The three and six months ended June 30, 2026, excludes nil of taxes paid on share repurchase costs. The three and six months ended June 30, 2025, excludes nil and $48 million, respectively of taxes paid on share repurchase costs. |
Contractual Obligations, Commitments, Guarantees and Off-Balance Sheet Arrangements
In the normal course of business, the company is obligated to make future payments, including payments in respect of contractual obligations and non-cancellable commitments. Suncor has included these items in the Financial Condition and Liquidity section of the 2025 annual MD&A, with no material updates to note during the six months ended June 30, 2026.
Suncor does not believe it has any guarantees or off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on the company's financial performance or financial condition, results of operations, liquidity or capital expenditures.
|
2026 Second Quarter Suncor Energy Inc. 25 |
Management's Discussion and Analysis
7. Quarterly Financial Data
Trends in Suncor's quarterly revenue, earnings and adjusted funds from operations are driven primarily by production volumes, which can be significantly impacted by major maintenance events, changes in commodity prices and crude differentials, refining crack spreads, foreign exchange rates and other significant events impacting operations, such as operational incidents.
Financial Summary
|
Three months ended |
Jun 30 |
Mar 31 |
Dec 31 |
Sep 30 |
Jun 30 |
Mar 31 |
Dec 31 |
Sep 30 |
|
|
($ millions, unless otherwise noted) |
|
2026 |
2026 |
2025 |
2025 |
2025 |
2025 |
2024 |
2024 |
|
Total production (mbbls/d) |
|||||||||
|
Oil Sands |
690.1 |
798.8 |
845.4 |
812.2 |
748.4 |
790.9 |
817.5 |
776.0 |
|
|
Exploration and Production |
70.8 |
76.4 |
63.6 |
57.8 |
59.7 |
62.3 |
57.5 |
52.6 |
|
|
Total upstream production |
760.9 |
875.2 |
909.0 |
870.0 |
808.1 |
853.2 |
875.0 |
828.6 |
|
|
Refinery crude oil throughput (mbbls/d) |
470.6 |
497.8 |
504.2 |
491.7 |
442.3 |
482.7 |
486.2 |
487.6 |
|
|
Gross revenues |
19 009 |
15 422 |
12 733 |
13 565 |
12 749 |
13 330 |
13 657 |
13 905 |
|
|
Net earnings |
3 732 |
2 100 |
1 476 |
1 619 |
1 134 |
1 689 |
818 |
2 020 |
|
|
Per common share - basic (dollars) |
3.17 |
1.77 |
1.23 |
1.34 |
0.93 |
1.36 |
0.65 |
1.59 |
|
|
Adjusted operating earnings(1) |
3 804 |
2 300 |
1 325 |
1 794 |
873 |
1 629 |
1 566 |
1 875 |
|
|
Per common share(1)(2) (dollars) |
3.23 |
1.93 |
1.10 |
1.48 |
0.71 |
1.31 |
1.25 |
1.48 |
|
|
Adjusted funds from operations(1) |
5 329 |
4 030 |
3 218 |
3 831 |
2 689 |
3 045 |
3 493 |
3 787 |
|
|
Per common share(1)(2) (dollars) |
4.52 |
3.39 |
2.68 |
3.16 |
2.20 |
2.46 |
2.78 |
2.98 |
|
|
Cash flow provided by operating activities |
5 655 |
2 435 |
3 921 |
3 785 |
2 919 |
2 156 |
5 083 |
4 261 |
|
|
Per common share(2) (dollars) |
4.80 |
2.05 |
3.27 |
3.13 |
2.38 |
1.74 |
4.05 |
3.36 |
|
|
Free funds flow(1) |
3 980 |
2 913 |
1 699 |
2 347 |
981 |
1 900 |
1 923 |
2 232 |
|
|
Per common share(1)(2) (dollars) |
3.38 |
2.45 |
1.42 |
1.94 |
0.80 |
1.53 |
1.53 |
1.76 |
|
|
ROCE(1) (%) for the twelve months ended |
18.3 |
12.4 |
11.3 |
11.0 |
11.1 |
12.8 |
13.0 |
15.6 |
|
|
Net debt(1) |
4 481 |
6 842 |
6 337 |
7 147 |
7 673 |
7 559 |
6 861 |
7 968 |
|
|
Common share information (dollars) |
|||||||||
|
Dividend per common share(2) |
0.60 |
0.60 |
0.60 |
0.57 |
0.57 |
0.57 |
0.57 |
0.55 |
|
|
Share price at the end of trading |
|||||||||
|
Toronto Stock Exchange (Cdn$) |
76.30 |
92.01 |
60.92 |
58.24 |
51.01 |
55.72 |
51.31 |
49.92 |
|
|
New York Stock Exchange (US$) |
53.68 |
66.11 |
44.36 |
41.81 |
37.45 |
38.72 |
35.68 |
36.92 |
| (1) | Such financial measure is a non-GAAP financial measure or contains a non-GAAP financial measure. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. Adjusted operating earnings, adjusted funds from operations, net debt, free funds flow, and ROCE are defined in the Non-GAAP and Other Financial Measures Advisory section and reconciled to GAAP measures in the Consolidated Financial Information and the Segment Results and Analysis section in the respective Quarterly Report to Shareholders (Quarterly Report) issued by Suncor in respect of the relevant quarter, which information is incorporated by reference herein and is available on SEDAR+ at www.sedarplus.ca. |
| (2) | Presented on a basic per share basis. |
|
26 2026 Second Quarter Suncor Energy Inc. |
Business Environment
|
Jun 30 |
Mar 31 |
Dec 31 |
Sep 30 |
Jun 30 |
Mar 31 |
Dec 31 |
Sep 30 |
|||
|
(average for the three months ended) |
|
2026 |
2026 |
2025 |
2025 |
2025 |
2025 |
2024 |
2024 |
|
|
WTI crude oil at Cushing |
US$/bbl |
92.85 |
72.15 |
59.15 |
64.95 |
63.70 |
71.40 |
70.30 |
75.15 |
|
|
Dated Brent crude |
US$/bbl |
104.55 |
80.95 |
63.70 |
69.10 |
67.80 |
75.70 |
74.70 |
80.25 |
|
|
Dated Brent/Maya FOB price differential |
US$/bbl |
19.20 |
15.45 |
9.70 |
8.80 |
10.10 |
11.10 |
11.85 |
13.90 |
|
|
MSW at Edmonton |
Cdn$/bbl |
131.90 |
93.85 |
76.55 |
86.40 |
84.25 |
95.30 |
94.95 |
98.00 |
|
|
WCS at Hardisty |
US$/bbl |
78.20 |
58.00 |
47.95 |
54.55 |
53.50 |
58.75 |
57.75 |
61.65 |
|
|
WCS-WTI heavy/light differential |
US$/bbl |
(14.65) |
(14.15) |
(11.20) |
(10.40) |
(10.20) |
(12.65) |
(12.55) |
(13.50) |
|
|
SYN-WTI premium (differential) |
US$/bbl |
8.40 |
(0.40) |
(1.30) |
1.35 |
1.00 |
(2.35) |
0.85 |
1.30 |
|
|
Condensate at Edmonton |
US$/bbl |
95.55 |
71.65 |
57.00 |
63.10 |
63.50 |
69.90 |
70.65 |
71.30 |
|
|
Natural gas (Alberta spot) at AECO |
Cdn$/GJ |
1.55 |
1.90 |
2.20 |
0.60 |
1.65 |
2.05 |
1.45 |
0.65 |
|
|
Alberta Power Pool Price |
Cdn$/MWh |
29.45 |
32.15 |
43.00 |
51.30 |
40.50 |
39.80 |
51.50 |
55.35 |
|
|
New York Harbor 2-1-1 crack(1) |
US$/bbl |
55.55 |
35.40 |
29.90 |
29.95 |
25.90 |
21.05 |
18.80 |
21.05 |
|
|
Chicago 2-1-1 crack(1) |
US$/bbl |
51.00 |
23.05 |
21.50 |
26.40 |
22.05 |
14.65 |
13.85 |
19.35 |
|
|
Portland 2-1-1 crack(1) |
US$/bbl |
63.35 |
38.25 |
31.75 |
42.05 |
38.20 |
22.30 |
20.95 |
20.35 |
|
|
Gulf Coast 2-1-1 crack(1) |
US$/bbl |
51.55 |
32.55 |
27.15 |
27.10 |
23.20 |
20.85 |
17.00 |
18.90 |
|
|
U.S. Renewable Volume Obligation |
US$/bbl |
13.80 |
8.75 |
6.10 |
6.40 |
6.15 |
4.75 |
4.05 |
3.90 |
|
|
Suncor custom 5-2-2-1 index(2) |
US$/bbl |
50.10 |
35.70 |
32.00 |
31.20 |
27.85 |
26.80 |
24.25 |
26.05 |
|
|
Exchange rate (average) |
US$/Cdn$ |
0.72 |
0.73 |
0.72 |
0.73 |
0.72 |
0.70 |
0.71 |
0.73 |
|
|
Exchange rate (end of period) |
US$/Cdn$ |
0.73 |
0.72 |
0.72 |
0.72 |
0.73 |
0.69 |
0.69 |
0.74 |
| (1) | 2-1-1 crack spreads are indicators of the refining margin generated by converting two barrels of WTI into one barrel of gasoline and one barrel of diesel. The crack spreads presented here generally approximate the regions into which the company sells refined products through retail and wholesale channels. |
| (2) | Suncor has developed an indicative 5-2-2-1 index based on publicly available pricing data to more accurately reflect the company's realized refining and marketing gross margin. For more details, including how the custom index is calculated, see Suncor's 2025 annual MD&A. |
|
2026 Second Quarter Suncor Energy Inc. 27 |
Management's Discussion and Analysis
8. Other Items
Accounting Policies and New IFRS Standards
Suncor's significant accounting policies and a summary of recently announced accounting standards are described in the Accounting Policies and Critical Accounting Estimates section of the 2025 annual MD&A and in notes 3 and 5 of Suncor's audited Consolidated Financial Statements for the year ended December 31, 2025.
Critical Accounting Estimates
The preparation of financial statements in accordance with GAAP requires management to make estimates, judgments and assumptions that affect reported assets, liabilities, revenues and expenses, gains and losses, and disclosures of contingencies. These estimates and assumptions are subject to change based on experience and new information. Critical accounting estimates are those that require management to make assumptions about matters that are highly uncertain at the time the estimate is made. Critical accounting estimates are also those estimates that, where a different estimate could have been used or where changes in the estimate that are reasonably likely to occur, would have a material impact on the company's financial condition, changes in financial condition or financial performance. Critical accounting estimates and judgments are reviewed annually by the Audit Committee of the Board of Directors. A detailed description of Suncor's critical accounting estimates is provided in note 4 to the audited Consolidated Financial Statements for the year ended December 31, 2025, and in the Accounting Policies and Critical Accounting Estimates section of the 2025 annual MD&A.
Financial Instruments
Suncor periodically enters into derivative contracts such as forwards, futures, swaps, options and costless collars to manage exposure to fluctuations in commodity prices and foreign exchange rates, and to optimize the company's position with respect to interest payments. For more information on Suncor's financial instruments and the related financial risk factors, see note 26 of the audited Consolidated Financial Statements for the year ended December 31, 2025, note 9 to the unaudited interim Consolidated Financial Statements for the three and six months ended June 30, 2026, and the Financial Condition and Liquidity section of the 2025 annual MD&A.
Control Environment
Based on their evaluation as at June 30, 2026, Suncor's Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the United States Securities Exchange Act of 1934, as amended (the Exchange Act)), are effective to ensure that information required to be disclosed by the company in reports that are filed or submitted to Canadian and U.S. securities authorities is recorded, processed, summarized and reported within the time periods specified in Canadian and U.S. securities laws. In addition, as at June 30, 2026, there were no changes in the internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during the three-month period ended June 30, 2026, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting. Management will continue to periodically evaluate the company's disclosure controls and procedures and internal control over financial reporting and will make any modifications as deemed necessary from time to time.
Based on their inherent limitations, disclosure controls and procedures and internal control over financial reporting may not prevent or detect misstatements, and even those controls determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.
Corporate Guidance
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.
|
28 2026 Second Quarter Suncor Energy Inc. |
9. Non-GAAP and Other Financial Measures Advisory
Certain financial measures in this MD&A - namely adjusted operating earnings (loss), adjusted funds from (used in) operations, measures contained in ROCE and ROCE excluding impairments and impairment reversals, price realizations, free funds flow (deficit), Oil Sands operations cash operating costs, Fort Hills cash operating costs, Syncrude cash operating costs, refining and marketing gross margin, refining operating expense, refining and marketing margin capture, net debt, total debt, LIFO inventory valuation methodology and related per share or per barrel amounts or metrics that contain such measures - 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 (Loss)
Adjusted operating earnings (loss) is a non-GAAP financial measure that adjusts net earnings (loss) for significant items that are not indicative of operating performance. Management uses adjusted operating earnings (loss) to evaluate operating performance because management believes it provides better comparability between periods. Adjusted operating earnings (loss) is reconciled to net earnings (loss) in the Consolidated Financial and Operating Information and Segment Results and Analysis sections of this MD&A.
Bridge Analyses of Adjusted Operating Earnings (Loss)
Within this MD&A, the company presents a chart that illustrates the change in adjusted operating earnings (loss) from the comparative period through key variance factors. These factors are analyzed in the Adjusted Operating Earnings (Loss) narratives following the bridge analysis in this MD&A. This bridge analysis is presented because management uses this presentation to evaluate performance. All reconciling items are presented on a before-tax basis and adjusted for income taxes in the Income Tax bridge factor.
| ● | The factor for Sales Volumes and Mix is calculated based on sales volumes and mix for the Oil Sands and E&P segments and refinery production volumes for the R&M segment. |
| ● | The factor for Price, Margin and Other Revenue includes upstream price realizations before royalties, except for the company's Libya operations, which is net of royalties, and realized commodity risk management activities. Also included are refining and marketing gross margins, other operating revenue and the net impacts of sales and purchases of third-party crude, including product purchased for use as diluent in the company's Oil Sands operations and subsequently sold as part of diluted bitumen. |
| ● | The factor for Royalties excludes the impact of the company's Libya operations, as royalties in Libya are included in Price, Margin and Other Revenue as described above. |
| ● | The factor for Inventory Valuation is comprised of changes in the FIFO inventory valuation and the realized portion of commodity risk management activities reported in the R&M segment, as well as the impact of the deferral or realization of profit or loss on crude oil sales from the Oil Sands segment to Suncor's refineries reported in the Corporate and Eliminations segment. |
| ● | The factor for Operating and Transportation Expense includes project startup costs, OS&G expense and transportation expense. |
| ● | The factor for Financing Expense and Other includes financing expenses, other income, operational foreign exchange gains and losses and changes in gains and losses on disposal of assets that are not adjusted operating earnings (loss) adjustments. |
| ● | The factor for DD&A and Exploration Expense includes depreciation, depletion and amortization expense, and exploration expense. |
| ● | The factor for Income Tax includes the company's current and deferred income tax expense on adjusted operating earnings, changes in statutory income tax rates and other income tax adjustments. |
|
2026 Second Quarter Suncor Energy Inc. 29 |
Management's Discussion and Analysis
ROCE and ROCE Excluding Impairments and Impairment Reversals
ROCE is a non-GAAP ratio that management uses to analyze operating performance and the efficiency of Suncor's capital allocation process. ROCE is calculated using the non-GAAP financial measures adjusted net earnings and average capital employed. Adjusted net earnings are calculated by taking net earnings (loss) and adjusting after-tax amounts for unrealized foreign exchange on U.S. dollar denominated debt and net interest expense. Average capital employed is calculated as a twelve-month average of the capital employed balance at the beginning of the twelve-month period and the month-end capital employed balances throughout the remainder of the twelve-month period. Figures for capital employed at the beginning and end of the twelve-month period are presented to show the changes in the components of the calculation over the twelve-month period.
|
For the twelve months ended June 30 |
||||
|
($ millions, except as noted) |
|
2026 |
2025 |
|
|
Adjustments to net earnings |
||||
|
Net earnings |
8 927 |
5 661 |
||
|
Add (deduct) after-tax amounts for: |
||||
|
Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt |
295 |
(109) |
||
|
Net interest expense |
367 |
260 |
||
|
Adjusted net earnings(1) |
A |
9 589 |
5 812 |
|
|
Capital employed - beginning of twelve-month period |
||||
|
Net debt(2) |
7 673 |
9 054 |
||
|
Shareholders' equity |
44 580 |
44 501 |
||
|
52 253 |
53 555 |
|||
|
Capital employed - end of twelve-month period |
||||
|
Net debt(2) |
4 481 |
7 673 |
||
|
Shareholders' equity |
48 163 |
44 580 |
||
|
52 644 |
52 253 |
|||
|
Average capital employed |
B |
52 258 |
52 367 |
|
|
ROCE (%)(3) |
A/B |
18.3 |
11.1 |
| (1) | Total before-tax impact of adjustments is $825 million for the twelve months ended June 30, 2026, and $263 million for the twelve months ended June 30, 2025. |
| (2) | Net debt is a non-GAAP financial measure. |
| (3) | For the twelve months ended June 30, 2026 and 2025 there were no impairments or impairment reversals. As a result, ROCE excluding impairments was equal to ROCE. |
|
30 2026 Second Quarter Suncor Energy Inc. |
Adjusted Funds From (Used In) Operations
Adjusted funds from (used in) operations is a non-GAAP financial measure that adjusts a GAAP measure - cash flow provided by operating activities - for changes in non-cash working capital, which management uses to analyze operating performance and liquidity. Changes to non-cash working capital can be impacted by, among other factors, commodity price volatility, the timing of offshore feedstock purchases and payments for commodity and income taxes, the timing of cash flows related to accounts receivable and accounts payable, and changes in inventory, which management believes reduces comparability between periods.
Adjusted funds from (used in) operations for each quarter are separately defined and reconciled to the cash flow provided by the operating activities measure in the Non-GAAP and Other Financial Measures Advisory section of each respective MD&A or Quarterly Report to shareholders, as applicable, for the related quarter, with such information being incorporated by reference herein and available on SEDAR+ at www.sedarplus.ca.
|
Three months ended June 30 |
Oil Sands |
Exploration and Production |
Refining and |
Corporate and Eliminations |
Income Taxes |
Total |
|||||||
|
($ millions) |
|
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
|
Earnings (loss) before income taxes |
2 691 |
844 |
465 |
165 |
2 100 |
377 |
(277) |
48 |
- |
- |
4 979 |
1 434 |
|
|
Adjustments for: |
|||||||||||||
|
Depreciation, depletion and amortization |
1 241 |
1 248 |
167 |
167 |
275 |
260 |
31 |
34 |
- |
- |
1 714 |
1 709 |
|
|
Accretion |
129 |
124 |
20 |
16 |
4 |
4 |
- |
- |
- |
- |
153 |
144 |
|
|
Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt |
- |
- |
- |
- |
- |
- |
132 |
(461) |
- |
- |
132 |
(461) |
|
|
Change in fair value of financial instruments and trading inventory |
(173) |
215 |
12 |
34 |
(70) |
(62) |
- |
- |
- |
- |
(231) |
187 |
|
|
Loss (gain) on disposal of assets |
5 |
- |
- |
- |
(2) |
- |
(3) |
- |
- |
- |
- |
- |
|
|
Share-based compensation |
(8) |
7 |
(1) |
1 |
(4) |
4 |
(47) |
(6) |
- |
- |
(60) |
6 |
|
|
Settlement of decommissioning and |
(108) |
(86) |
(11) |
(11) |
(13) |
(15) |
- |
- |
- |
- |
(132) |
(112) |
|
|
Other |
42 |
47 |
- |
- |
9 |
47 |
41 |
100 |
- |
- |
92 |
194 |
|
|
Current income tax expense |
- |
- |
- |
- |
- |
- |
- |
- |
(1 318) |
(412) |
(1 318) |
(412) |
|
|
Adjusted funds from (used in) operations |
3 819 |
2 399 |
652 |
372 |
2 299 |
615 |
(123) |
(285) |
(1 318) |
(412) |
5 329 |
2 689 |
|
|
Change in non-cash working capital |
326 |
230 |
|||||||||||
|
Cash flow provided by operating activities |
5 655 |
2 919 |
|||||||||||
|
Exploration and |
Refining and |
Corporate and |
|||||||||||
|
Six months ended June 30 |
Oil Sands |
Production |
Marketing |
Eliminations |
Income Taxes |
Total |
|||||||
|
($ millions) |
|
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
|
Earnings (loss) before income taxes |
4 207 |
2 519 |
847 |
323 |
3 750 |
1 049 |
(999) |
(167) |
- |
- |
7 805 |
3 724 |
|
|
Adjustments for: |
|||||||||||||
|
Depreciation, depletion and amortization |
2 476 |
2 447 |
342 |
338 |
551 |
517 |
76 |
70 |
- |
- |
3 445 |
3 372 |
|
|
Accretion |
259 |
248 |
39 |
32 |
8 |
7 |
- |
- |
- |
- |
306 |
287 |
|
|
Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt |
- |
- |
- |
- |
- |
- |
271 |
(475) |
- |
- |
271 |
(475) |
|
|
Change in fair value of financial instruments and trading inventory |
(32) |
147 |
4 |
28 |
(14) |
(45) |
- |
- |
- |
- |
(42) |
130 |
|
|
Loss (gain) on disposal of assets |
5 |
- |
- |
- |
(8) |
- |
(10) |
- |
- |
- |
(13) |
- |
|
|
Share-based compensation |
(42) |
(79) |
(3) |
(5) |
(18) |
(36) |
(117) |
(177) |
- |
- |
(180) |
(297) |
|
|
Settlement of decommissioning and restoration liabilities |
(248) |
(165) |
(16) |
(14) |
(26) |
(27) |
- |
- |
- |
- |
(290) |
(206) |
|
|
Other |
88 |
92 |
1 |
- |
37 |
52 |
26 |
115 |
- |
- |
152 |
259 |
|
|
Current income tax expense |
- |
- |
- |
- |
- |
- |
- |
- |
(2 095) |
(1 060) |
(2 095) |
(1 060) |
|
|
Adjusted funds from (used in) operations |
6 713 |
5 209 |
1 214 |
702 |
4 280 |
1 517 |
(753) |
(634) |
(2 095) |
(1 060) |
9 359 |
5 734 |
|
|
Change in non-cash working capital |
(1 269) |
(659) |
|||||||||||
|
Cash flow provided by operating activities |
8 090 |
5 075 |
|||||||||||
|
2026 Second Quarter Suncor Energy Inc. 31 |
Management's Discussion and Analysis
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.
|
Exploration and |
Refining and |
Corporate and |
||||||||||||
|
Three months ended June 30 |
Oil Sands |
Production |
Marketing |
Eliminations |
Income Taxes |
Total |
||||||||
|
($ millions) |
|
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
|
|
Adjusted funds from (used in) operations |
3 819 |
2 399 |
652 |
372 |
2 299 |
615 |
(123) |
(285) |
(1 318) |
(412) |
5 329 |
2 689 |
||
|
Capital expenditures including capitalized interest |
(914) |
(1 109) |
(126) |
(229) |
(300) |
(362) |
(9) |
(8) |
- |
- |
(1 349) |
(1 708) |
||
|
Free funds flow (deficit) |
2 905 |
1 290 |
526 |
143 |
1 999 |
253 |
(132) |
(293) |
(1 318) |
(412) |
3 980 |
981 |
||
|
Exploration and |
Refining and |
Corporate and |
||||||||||||
|
Six months ended June 30 |
Oil Sands |
Production |
Marketing |
Eliminations |
Income Taxes |
Total |
||||||||
|
($ millions) |
|
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
|
|
Adjusted funds from (used in) operations |
6 713 |
5 209 |
1 214 |
702 |
4 280 |
1 517 |
(753) |
(634) |
(2 095) |
(1 060) |
9 359 |
5 734 |
||
|
Capital expenditures including capitalized interest |
(1 660) |
(1 858) |
(254) |
(438) |
(532) |
(542) |
(20) |
(15) |
- |
- |
(2 466) |
(2 853) |
||
|
Free funds flow (deficit) |
5 053 |
3 351 |
960 |
264 |
3 748 |
975 |
(773) |
(649) |
(2 095) |
(1 060) |
6 893 |
2 881 |
||
Oil Sands Operations, Fort Hills and Syncrude Cash Operating Costs
Cash operating costs are calculated by adjusting Oil Sands segment OS&G expenses for non-production costs and excess power capacity. Significant non-production costs include, but are not limited to, share-based compensation adjustments, research costs, project startup costs and adjustments to reflect the cost of internal transfers in the receiving asset at the cost of production versus the cost of purchase. Non-production costs at Fort Hills and Syncrude also include, but are not limited to, an adjustment to reflect internally produced diesel from Oil Sands operations at the cost of production. Excess power capacity represents excess power revenue from cogeneration units that is recorded in operating revenues. Oil Sands operations excess power capacity and other also includes, but is not limited to, the natural gas expense recorded as part of a non-monetary arrangement involving a third-party processor. Oil Sands operations, Fort Hills and Syncrude production volumes are gross of internally consumed diesel and feedstock transfers between assets. Oil Sands operations, Fort Hills and Syncrude cash operating costs are reconciled in the Segment Results and Analysis - Oil Sands - Cash Operating Costs section of this MD&A. Management uses cash operating costs to measure operating performance.
|
32 2026 Second Quarter Suncor Energy Inc. |
Refining and Marketing Gross Margin, Margin Capture and Refining Operating Expense
Refining and marketing gross margins, refining and marketing margin capture and refining operating expense are non-GAAP financial measures. Refining and marketing gross margin, on a FIFO basis, is calculated by adjusting R&M segment operating revenue, other income and purchases of crude oil and products (all of which are GAAP measures) for intersegment marketing fees recorded in intersegment revenues. Refining and marketing gross margin, on a LIFO basis, is further adjusted for the impacts of FIFO inventory valuation recorded in purchases of crude oil and products and risk management activities recorded in other income (loss). Refinery operating expense is calculated by adjusting R&M segment OS&G expenses for i) non-refining costs pertaining to the company's supply, marketing and ethanol businesses; and ii) non-refining costs that management believes do not relate to the production of refined products, including, but not limited to, share-based compensation and enterprise shared service allocations. Refining and marketing margin capture is calculated by dividing refining and marketing gross margin, on a LIFO basis, by the Suncor custom 5-2-2-1 index. For details on how the 5-2-2-1 index is calculated, see Suncor's 2025 annual MD&A. Management uses refining and marketing gross margin, refining operating expense and refining and marketing margin capture to measure operating performance on a production barrel basis.
|
Three months ended |
Six months ended |
||||
|
($ millions, except as noted) |
|
2026 |
2025 |
2026 |
2025 |
|
Refining and marketing gross margin reconciliation |
|||||
|
Operating revenues |
11 890 |
7 310 |
21 019 |
14 938 |
|
|
Purchases of crude oil and products |
(8 719) |
(5 969) |
(14 975) |
(11 891) |
|
|
3 171 |
1 341 |
6 044 |
3 047 |
||
|
Other income (loss) |
58 |
18 |
(28) |
6 |
|
|
Non-refining and marketing margin |
(38) |
14 |
(12) |
1 |
|
|
Refining and marketing gross margin - FIFO |
3 191 |
1 373 |
6 004 |
3 054 |
|
|
Refinery production(1) (mbbls) |
45 812 |
42 282 |
93 393 |
88 080 |
|
|
Refining and marketing gross margin - FIFO ($/bbl) |
69.65 |
32.45 |
64.30 |
34.65 |
|
|
FIFO and risk management activities adjustment |
(373) |
82 |
(891) |
142 |
|
|
Refining and marketing gross margin - LIFO |
2 818 |
1 455 |
5 113 |
3 196 |
|
|
Refining and marketing gross margin - LIFO ($/bbl) |
61.50 |
34.40 |
54.75 |
36.30 |
|
|
Refining operating expense reconciliation |
|||||
|
Operating, selling and general expense |
591 |
578 |
1 264 |
1 187 |
|
|
Non-refining costs |
(300) |
(289) |
(652) |
(590) |
|
|
Refining operating expense |
291 |
289 |
612 |
597 |
|
|
Refinery production(1) (mbbls) |
45 812 |
42 282 |
93 393 |
88 080 |
|
|
Refining operating expense ($/bbl) |
6.35 |
6.85 |
6.55 |
6.80 |
|
|
Refining and marketing margin capture reconciliation |
|||||
|
Refining and marketing gross margin - LIFO ($/bbl) |
61.50 |
34.40 |
54.75 |
36.30 |
|
|
Suncor custom 5-2-2-1 index ($/bbl) |
69.30 |
38.55 |
59.15 |
38.50 |
|
|
Refining and marketing margin capture (%) |
89 |
89 |
93 |
94 |
|
| (1) | Refinery production is the output of the refining process and differs from crude oil processed as a result of volumetric adjustments for non-crude feedstock, volumetric gain associated with the refining process and changes in unfinished product inventories. |
|
2026 Second Quarter Suncor Energy Inc. 33 |
Management's Discussion and Analysis
Impact of FIFO Inventory Valuation on Refining and Marketing Net Earnings (Loss)
GAAP requires the use of a FIFO inventory valuation methodology. For Suncor, this results in a disconnect between the sales prices for refined products, which reflect current market conditions, and the amount recorded as the cost of sale for the related refinery feedstock, which reflects market conditions at the time the feedstock was purchased. This lag between purchase and sale can be anywhere from several weeks to several months and is influenced by the time to receive crude after purchase, regional crude inventory levels, the completion of refining processes, transportation time to distribution channels and regional refined product inventory levels.
Suncor prepares and presents an estimate of the impact of using a FIFO inventory valuation methodology compared to a LIFO methodology, because management uses the information to analyze operating performance and compare itself against refining peers that are permitted to use LIFO inventory valuation under U.S. GAAP.
The company's estimate is not derived from a standardized calculation and, therefore, may not be directly comparable to similar measures presented by other companies, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP or U.S. GAAP.
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).
|
June 30 |
December 31 |
||
|
($ millions, except as noted) |
|
2026 |
2025 |
|
Short-term debt |
- |
- |
|
|
Current portion of long-term debt |
656 |
973 |
|
|
Long-term debt |
9 197 |
9 014 |
|
|
Total debt |
9 853 |
9 987 |
|
|
Less: Cash and cash equivalents |
5 372 |
3 650 |
|
|
Net debt |
4 481 |
6 337 |
|
|
Shareholders' equity |
48 163 |
45 124 |
|
|
Total debt plus shareholders' equity |
58 016 |
55 111 |
|
|
Total debt to total debt plus shareholders' equity (%) |
17.0 |
18.1 |
|
|
Net debt to net debt plus shareholders' equity (%) |
8.5 |
12.3 |
|
34 2026 Second Quarter Suncor Energy Inc. |
Price Realizations
Price realizations are a non-GAAP measure used by management to measure profitability. Oil Sands price realizations are presented on a crude product basis and are derived from the Oil Sands segmented statement of net earnings (loss), after adjusting for items not directly attributable to the revenues associated with production. E&P price realizations are presented on an asset location basis and are derived from the E&P segmented statement of net earnings (loss), after adjusting for other E&P assets, such as Libya, for which price realizations are not provided.
Oil Sands Price Realizations
|
June 30, 2026 |
June 30, 2025 |
|||||||
|
Upgraded - |
Oil Sands |
Upgraded - |
Oil Sands |
|||||
|
Three months ended |
Non- |
Net |
Segment |
Non- |
Net |
Segment |
||
|
Upgraded |
SCO and |
Average |
Upgraded |
SCO and |
Average |
|||
|
($ millions, except as noted) |
|
Bitumen |
Diesel |
Crude |
Bitumen |
Diesel |
Crude |
|
|
Operating revenues |
2 551 |
6 492 |
9 043 |
2 718 |
3 722 |
6 440 |
||
|
Other (loss) income |
(67) |
6 |
(61) |
(56) |
(2) |
(58) |
||
|
Purchases of crude oil and products |
(689) |
(73) |
(762) |
(763) |
(50) |
(813) |
||
|
Gross realization adjustment(1) |
180 |
(93) |
87 |
3 |
(62) |
(59) |
||
|
Price realization |
1 975 |
6 332 |
8 307 |
1 902 |
3 608 |
5 510 |
||
|
Sales volumes (mbbls) |
19 989 |
44 110 |
64 099 |
27 989 |
40 055 |
68 044 |
||
|
Price realization per barrel(2) |
98.79 |
143.55 |
129.59 |
67.95 |
90.10 |
80.98 |
||
|
Six months ended |
June 30, 2026 |
June 30, 2025 |
||||||
|
Upgraded - |
Oil Sands |
Upgraded - |
Oil Sands |
|||||
|
Non- |
Net |
Segment |
Non- |
Net |
Segment |
|||
|
Upgraded |
SCO and |
Average |
Upgraded |
SCO and |
Average |
|||
|
($ millions, except as noted) |
|
Bitumen |
Diesel |
Crude |
Bitumen |
Diesel |
Crude |
|
|
Operating revenues |
5 188 |
11 369 |
16 557 |
5 003 |
8 578 |
13 581 |
||
|
Other income (loss) |
11 |
107 |
118 |
(15) |
55 |
40 |
||
|
Purchases of crude oil and products |
(1 408) |
(205) |
(1 613) |
(1 335) |
(87) |
(1 422) |
||
|
Gross realization adjustment(1) |
244 |
(300) |
(56) |
(32) |
(216) |
(248) |
||
|
Price realization |
4 035 |
10 971 |
15 006 |
3 621 |
8 330 |
11 951 |
||
|
Sales volumes (mbbls) |
45 819 |
90 009 |
135 828 |
50 030 |
87 622 |
137 652 |
||
|
Price realization per barrel(2) |
88.07 |
121.90 |
110.48 |
72.38 |
95.08 |
86.83 |
||
| (1) | Reflects the items not directly attributed to revenues received from the sale of proprietary crude and net non-proprietary activity at its deemed point of sale. |
| (2) | Beginning in the first quarter of 2026, the company revised the calculation of price realizations to exclude transportation and distribution expenses to better align with how management evaluates performance. Prior period comparatives have been restated to reflect this change. |
|
2026 Second Quarter Suncor Energy Inc. 35 |
Management's Discussion and Analysis
E&P Price Realizations
|
Three months ended |
June 30, 2026 |
June 30, 2025 |
||||||
|
E&P |
E&P |
E&P |
E&P |
|||||
|
($ millions, except as noted) |
|
Canada |
Other(1)(2) |
Segment |
|
Canada |
Other(1)(2) |
Segment |
|
Operating revenues |
1 019 |
128 |
1 147 |
545 |
120 |
665 |
||
|
Price realization |
1 019 |
128 |
545 |
120 |
||||
|
Sales volumes (mbbls) |
6 860 |
5 619 |
||||||
|
Price realization per barrel(3) |
148.48 |
97.05 |
||||||
|
Six months ended |
June 30, 2026 |
June 30, 2025 |
||||||
|
E&P |
E&P |
E&P |
||||||
|
($ millions, except as noted) |
|
Canada |
Other(1)(2) |
Segment |
E&P Canada |
Other(1)(2) |
Segment |
|
|
Operating revenues |
1 737 |
371 |
2 108 |
1 015 |
379 |
1 394 |
||
|
Price realization |
1 737 |
371 |
1 015 |
379 |
||||
|
Sales volumes (mbbls) |
13 137 |
9 963 |
||||||
|
Price realization per barrel(3) |
132.20 |
101.93 |
||||||
| (1) | Reflects other E&P assets, such as Libya, for which price realizations are not provided. |
| (2) | Production from the company's Libya operations is presented on an economic basis. Revenue and royalties from the company's Libya operations are presented on a working-interest basis, which is required for presentation purposes in the company's Consolidated Financial Statements. In the second quarter of 2026, revenue included a gross-up amount of $98 million (2025 - $92 million), with an offsetting amount of $55 million (2025 - $64 million) in royalties in the E&P segment and $43 million (2025 - $28 million) in income tax expense recorded at the consolidated level. In the first six months of 2026, revenue included a gross-up amount of $282 million (2025 - $288 million), with an offsetting amount of $161 million (2025 - $170 million) in royalties in the E&P segment and $121 million (2025 - $118 million) in income tax expense recorded at the consolidated level. |
| (3) | Beginning in the first quarter of 2026, the company revised the calculation of price realizations to exclude transportation and distribution expenses to better align with how management evaluates performance. Prior period comparatives have been restated to reflect this change. |
|
36 2026 Second Quarter Suncor Energy Inc. |
10. Common Abbreviations
The following is a list of abbreviations that may be used in this MD&A:
|
Measurement |
Places and Currencies |
||
|
bbl |
barrel |
U.S. |
United States |
|
bbls/d |
barrels per day |
U.K. |
United Kingdom |
|
mbbls/d |
thousands of barrels per day |
||
|
$ or Cdn$ |
Canadian dollars |
||
|
GJ |
Gigajoule |
US$ |
United States dollars |
|
MW |
megawatt |
||
|
MWh |
Megawatt-hour |
Financial and Business Environment |
|
|
Q2 |
Three months ended June 30, 2026 |
||
|
DD&A |
Depreciation, depletion and amortization |
||
|
WTI |
West Texas Intermediate |
||
|
WCS |
Western Canadian Select |
||
|
SCO |
Synthetic crude oil |
||
|
SYN |
Synthetic crude oil benchmark |
||
|
MSW |
Mixed Sweet Blend |
||
|
2026 Second Quarter Suncor Energy Inc. 37 |
Management's Discussion and Analysis
11. Advisories
Suncor Energy Inc. published this content on August 05, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on August 05, 2026 at 10:07 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]