Suncor Energy Inc 6-K, filed May 6, 2026
Suncor Energy Inc (SU)
About this 6-K
Suncor Energy Inc filed this 6-K on May 6, 2026.
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the month of: May, 2026 | Commission File Number: 1-12384 |
SUNCOR ENERGY INC.
(Name of registrant)
150 – 6th Avenue S.W.
P.O. Box 2844
Calgary, Alberta
Canada, T2P 3E3
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F | | | | Form 40-F | | X |
The Registrant’s Management’s Discussion and Analysis for the first quarter ended March 31, 2026, included as Exhibit 99.1 of this Form 6-K, and the Unaudited Consolidated Financial Statements for the first quarter ended March 31, 2026, included as Exhibit 99.2 of this Form 6-K, are each incorporated by reference into and as an exhibit to, as applicable, the Registrant’s Registration Statements under the Securities Act of 1933: Form S-8 (File No. 333-87604), Form S-8 (File No. 333-112234), Form S-8 (File No. 333-118648), Form S-8 (File No. 333-124415), Form S-8 (File No. 333-149532), Form S-8 (File No. 333-161021), Form S-8 (File No. 333-161029) and Form F-10 (File No. 333-279937).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | SUNCOR ENERGY INC. | |
| | | |
| | | |
Date: | | By: | |
| | | |
| | | |
May 5, 2026 | | | /s/ “Shawn Poirier” |
| | | Shawn Poirier Assistant Corporate Secretary |
| | | |
| | | |
EXHIBIT INDEX
Exhibit | | Description of Exhibit |
| | |
| | |
99.1 | | Management’s Discussion and Analysis for the first quarter ended March 31, 2026 |
| | |
99.2 | | Unaudited Consolidated Financial Statements for the first quarter ended March 31, 2026 |
| | |
99.3 | | |
| | |
99.4 | |
Management’s Discussion and Analysis
May 5, 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 months ended March 31, 2026, should be read in conjunction with Suncor’s unaudited interim Consolidated Financial Statements for the three months ended March 31, 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.
1. | 6 | | |
2. | 7 | | |
3. | 11 | | |
4. | 19 | | |
5. | 20 | | |
6. | 21 | | |
7. | 24 | | |
8. | 26 | | |
9. | 27 | | |
10. | 33 | | |
11. | 34 | |
Management’s Discussion and Analysis
| ● | Financial results. Adjusted funds from operations(1) were $4.030 billion ($3.39 per common share), compared to $3.045 billion ($2.46 per common share) in the prior year quarter. Adjusted operating earnings(1) were $2.300 billion ($1.93 per common share), compared to $1.629 billion ($1.31 per common share) in the prior year quarter. |
| ● | Returned value to shareholders. Suncor returned over $1.5 billion of value to shareholders, with $825 million in share repurchases and $712 million in dividends. |
| ● | 2026 projected share repurchases increased by over 30%. Subsequent to the quarter, Suncor increased its planned monthly share repurchases from $275 million per month to $350 million per month, projecting total 2026 share repurchases of nearly $4 billion for 2026, an increase of over 30% relative to 2025 share repurchases. |
| ● | Record first quarter upstream production. Upstream production was a first quarter record of 875,200 bbls/d, 22,000 bbls/d higher than the prior year quarter and featured record first quarter Oil Sands production and record quarterly production at Fort Hills. |
| ● | Record first quarter refining throughput. Refining throughput was a first quarter record of 497,800 bbls/d, 15,100 bbls/d higher than the prior year quarter. Refinery utilization(2) was 97% in the first quarter of 2026 and reflects the 10% increase in refining network nameplate capacity to 511,000 bbls/d effective January 1, 2026. |
| ● | Record quarterly refined product sales. Refined product sales increased to a quarterly record of 680,900 bbls/d, 76,000 bbls/d higher than the prior year quarter as Suncor capitalized on global export sales opportunities. |
(1) | Non-GAAP financial measures. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
(2) | Effective January 1, 2026, Suncor increased the nameplate capacity of its refining network by 10% from 466,000 bbls/d to 511,000 bbls/d. All prior quarter utilization rates have been restated to reflect this change. |
2. Consolidated Financial and Operating Information
Financial Highlights
| | Three months ended | |
($ millions) | | 2026 | 2025 |
Earnings (loss) before income taxes |
| | |
Oil Sands |
| 1 516 | 1 675 |
Exploration and Production |
| 382 | 158 |
Refining and Marketing |
| 1 650 | 672 |
Corporate and Eliminations |
| (722) | (215) |
Income tax expense |
| (726) | (601) |
Net earnings |
| 2 100 | 1 689 |
Adjusted operating earnings (loss)(1) |
| | |
Oil Sands |
| 1 574 | 1 620 |
Exploration and Production |
| 382 | 158 |
Refining and Marketing |
| 1 684 | 667 |
Corporate and Eliminations |
| (583) | (229) |
Income tax expense included in adjusted operating earnings |
| (757) | (587) |
Total |
| 2 300 | 1 629 |
Adjusted funds from (used in) operations(1) |
| | |
Oil Sands |
| 2 894 | 2 810 |
Exploration and Production |
| 562 | 330 |
Refining and Marketing |
| 1 981 | 902 |
Corporate and Eliminations |
| (630) | (349) |
Current income tax expense |
| (777) | (648) |
Total |
| 4 030 | 3 045 |
Change in non-cash working capital |
| (1 595) | (889) |
Cash flow provided by operating activities |
| 2 435 | 2 156 |
Capital expenditures(2) |
| | |
Asset sustainment and maintenance |
| 580 | 498 |
Economic investment |
| 496 | 589 |
Total |
| 1 076 | 1 087 |
Free funds flow(1) |
| 2 913 | 1 900 |
| (1) | Non-GAAP financial measures. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
| (2) | Excludes capitalized interest of $41 million in the first quarter of 2026, compared to $58 million in the first quarter of 2025. |
Management’s Discussion and Analysis
Operating Highlights
| | Three months ended | |
(mbbls/d, unless otherwise noted) | | 2026 | 2025 |
Upstream |
| | |
Production volumes |
| | |
Oil Sands – Upgraded – net SCO and diesel |
| 519.3 | 536.6 |
Oil Sands – Non-upgraded bitumen |
| 279.5 | 254.3 |
Total Oil Sands production volumes |
| 798.8 | 790.9 |
Exploration and Production |
| 76.4 | 62.3 |
Total upstream production |
| 875.2 | 853.2 |
Upstream sales |
| 872.1 | 828.4 |
Downstream |
| | |
Refinery utilization(1) (%) |
| 97 | 94 |
Refinery crude oil processed |
| 497.8 | 482.7 |
Refined product sales |
| 680.9 | 604.9 |
| (1) | Effective January 1, 2026, Suncor increased the nameplate capacity of its refining network by 10% from 466,000 bbls/d to 511,000 bbls/d. All prior quarter utilization rates have been restated to reflect this change. |
Financial Results
Net Earnings and Adjusted Operating Earnings
Adjusted Operating Earnings Reconciliation(1)
| | Three months ended | |
($ millions) | | 2026 | 2025 |
Net earnings |
| 2 100 | 1 689 |
Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt |
| 139 | (14) |
Unrealized loss (gain) on risk management activities |
| 92 | (60) |
Income tax (recovery) expense on adjusted operating earnings adjustments |
| (31) | 14 |
Adjusted operating earnings(1) |
| 2 300 | 1 629 |
| (1) | Non-GAAP financial measure. All reconciling items are presented on a before-tax basis and adjusted for income taxes in the income tax (recovery) expense 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 first quarter of 2026 were $2.100 billion, compared to $1.689 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 $139 million recorded in financing expenses in the Corporate and Eliminations segment in the first quarter of 2026, compared to a gain of $14 million in the first quarter of 2025. |
| ● | An unrealized loss on risk management activities of $92 million recorded in other income in the first quarter of 2026, compared to an unrealized gain of $60 million in the first quarter of 2025. |
| ● | An income tax recovery related to the items noted above of $31 million in the first quarter of 2026, compared to an expense of $14 million in the first quarter of 2025. |
Bridge Analysis of Adjusted Operating Earnings ($ 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 $2.300 billion ($1.93 per common share) in the first quarter of 2026, compared to $1.629 billion ($1.31 per common share) in the prior year quarter, primarily due to increased downstream margins and upstream price realizations, and increased upstream and downstream sales volumes, partially offset by increased operating and transportation expenses associated with the higher sales volumes. 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, partially offset by a deferral of intersegment profit.
Adjusted Funds from Operations and Cash Flow Provided by Operating Activities
Adjusted funds from operations increased to $4.030 billion ($3.39 per common share) in the first quarter of 2026, compared to $3.045 billion ($2.46 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 $2.435 billion ($2.05 per common share) in the first quarter of 2026, compared to $2.156 billion ($1.74 per common share) in the prior year quarter. In addition to the factors impacting adjusted funds from operations, cash flow provided by operating activities was impacted by a larger use of cash associated with the company’s working capital balances in the first quarter of 2026, compared to the prior year quarter. Working capital is subject to fluctuations based on commodity prices, the timing of transactions and seasonal factors. The use of cash in the first quarter of 2026 was primarily due to an increase in benchmark pricing which drove increased accounts receivable and increased inventory balances, partially offset by an increase in accounts payable and accrued liabilities.
Operating, Selling and General Expenses
| | Three months ended | |
($ millions) | | 2026 | 2025 |
Operations, selling and corporate costs |
| 2 938 | 2 666 |
Commodities |
| 520 | 486 |
Share-based compensation(1) |
| 320 | 145 |
Total operating, selling and general (OS&G) expenses |
| 3 778 | 3 297 |
| (1) | In the first quarter of 2026, share-based compensation expense of $320 million included $104 million in the Oil Sands segment, $6 million in the E&P segment, $47 million in the R&M segment and $163 million in the Corporate and Eliminations segment. In the first quarter of 2025, share-based compensation expense of $145 million included $47 million in the Oil Sands segment, $2 million in the E&P segment, $25 million in the R&M segment and $71 million in the Corporate and Eliminations segment. |
OS&G expenses were $3.778 billion in the first quarter of 2026, compared to $3.297 billion in the prior year quarter with the increase primarily due to increased share-based compensation expense, higher upstream and downstream sales volumes, increased maintenance activities and higher commodity input costs. The company’s exposure to commodity costs is partially mitigated by revenue from power sales that are recorded in operating revenues.
Management’s Discussion and Analysis
Commodity prices, refining crack spreads and foreign exchange rates are important factors that affect the results of Suncor’s operations. For additional details, see the Financial Information section of the 2025 annual MD&A.
| | | Average for the | |
| | | 2026 | 2025 |
WTI crude oil at Cushing |
| US$/bbl | 72.15 | 71.40 |
Dated Brent crude |
| US$/bbl | 80.95 | 75.70 |
Dated Brent/Maya crude oil FOB price differential |
| US$/bbl | 15.45 | 11.10 |
MSW at Edmonton |
| Cdn$/bbl | 93.85 | 95.30 |
WCS at Hardisty |
| US$/bbl | 58.00 | 58.75 |
WCS-WTI heavy/light differential |
| US$/bbl | (14.15) | (12.65) |
SYN-WTI differential |
| US$/bbl | (0.40) | (2.35) |
Condensate at Edmonton |
| US$/bbl | 71.65 | 69.90 |
Natural gas (Alberta spot) at AECO |
| Cdn$/GJ | 1.90 | 2.05 |
Alberta Power Pool Price |
| Cdn$/MWh | 32.15 | 39.80 |
New York Harbor 2-1-1 crack(1) |
| US$/bbl | 35.40 | 21.05 |
Chicago 2-1-1 crack(1) |
| US$/bbl | 23.05 | 14.65 |
Portland 2-1-1 crack(1) |
| US$/bbl | 38.25 | 22.30 |
Gulf Coast 2-1-1 crack(1) |
| US$/bbl | 32.55 | 20.85 |
U.S. Renewable Volume Obligation |
| US$/bbl | 8.75 | 4.75 |
Suncor custom 5-2-2-1 index(2) |
| US$/bbl | 35.70 | 26.80 |
Exchange rate (average) |
| US$/Cdn$ | 0.73 | 0.70 |
Exchange rate (end of period) |
| US$/Cdn$ | 0.72 | 0.69 |
| (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. |
3. Segment Results and Analysis
Oil Sands
Financial Highlights
| | Three months ended | |
($ millions) | | 2026 | 2025 |
Operating revenues |
| 7 514 | 7 141 |
Less: Royalties |
| (712) | (815) |
Operating revenues, net of royalties |
| 6 802 | 6 326 |
Earnings before income taxes |
| 1 516 | 1 675 |
Adjusted for: |
| | |
Unrealized loss (gain) on risk management activities |
| 58 | (55) |
Adjusted operating earnings(1) |
| 1 574 | 1 620 |
Adjusted funds from operations(1) |
| 2 894 | 2 810 |
Free funds flow(1) |
| 2 148 | 2 061 |
| (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 were $1.574 billion in the first quarter of 2026, compared to $1.620 billion in the prior year quarter, with the decrease primarily due to increased operating expenses, including increased share-based compensation expenses, commodity input costs and asset advancement expenses, and increased exploration expense, partially offset by increased price realizations and sales volumes.
Management’s Discussion and Analysis
Production Volumes
| | Three months ended | |
(mbbls/d) | | 2026 | 2025 |
Total Oil Sands bitumen production |
| 933.9 | 937.3 |
Upgraded – net SCO and diesel |
| | |
Oil Sands operations(1)(2) |
| 378.7 | 361.3 |
Syncrude(1)(2) |
| 172.1 | 206.0 |
Inter-asset transfers and consumption(3)(4) |
| (31.5) | (30.7) |
Upgraded – net SCO and diesel production |
| 519.3 | 536.6 |
Non-upgraded bitumen |
| | |
Oil Sands operations |
| 161.1 | 165.3 |
Fort Hills |
| 187.2 | 176.4 |
Syncrude |
| 16.4 | — |
Inter-asset transfers(5) |
| (85.2) | (87.4) |
Non-upgraded bitumen production |
| 279.5 | 254.3 |
Oil Sands production volumes to market |
| | |
Upgraded – net SCO and diesel |
| 519.3 | 536.6 |
Non-upgraded bitumen |
| 279.5 | 254.3 |
Total Oil Sands production volumes |
| 798.8 | 790.9 |
| (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 first quarter of 2026, Oil Sands operations produced 17,300 bbls/d of internally consumed products, of which 9,200 bbls/d was consumed at Oil Sands operations, 6,400 bbls/d was consumed at Fort Hills and 1,700 bbls/d was consumed at Syncrude. Syncrude produced 3,500 bbls/d of internally consumed products. |
| (4) | In the first quarter of 2026, upgraded inter-asset transfers consisted of 10,700 bbls/d of sour SCO that was transferred from Oil Sands operations to Syncrude. |
| (5) | In the first quarter of 2026, non-upgraded inter-asset transfers consisted of 66,900 bbls/d of bitumen that was transferred from Fort Hills to Oil Sands Base, 16,400 bbls/d of bitumen that was transferred from Syncrude to Oil Sands operations and 1,900 bbls/d of bitumen that was transferred from Firebag to Syncrude. |
Total Oil Sands bitumen production of 933,900 bbls/d was comparable to the prior year quarter of 937,300 bbls/d and featured record quarterly production at Fort Hills. Current quarter bitumen production was also impacted by maintenance at Syncrude and the impact of a third-party natural gas input pipeline curtailment in the region. Syncrude maintenance was partially mitigated by Suncor’s regional asset integration, which allowed Suncor to redirect Syncrude bitumen to Upgrading at Oil Sands Base.
The company’s net SCO production was 519,300 bbls/d in the first quarter of 2026, compared to 536,600 bbls/d in the prior year quarter, with record quarterly upgrader utilization of 108% at Oil Sands Base and upgrader utilization of 84% at Syncrude, which was impacted by increased maintenance activities, compared to 103% and 100%, respectively, in the prior year quarter.
Non-upgraded bitumen production increased to 279,500 bbls/d in the first quarter of 2026, compared to 254,300 bbls/d in the prior year quarter, primarily due to decreased upgrader availability.
Sales Volumes
| | Three months ended | |
(mbbls/d) | | 2026 | 2025 |
Upgraded – net SCO and diesel |
| 510.0 | 528.5 |
Non-upgraded bitumen |
| 287.0 | 244.9 |
Total |
| 797.0 | 773.4 |
SCO and diesel sales volumes were 510,000 bbls/d in the first quarter of 2026, compared to 528,500 bbls/d in the prior year quarter, with the decrease primarily due to lower SCO production volumes in the current quarter.
Non-upgraded bitumen sales volumes increased to 287,000 bbls/d in the first quarter of 2026, compared to 244,900 bbls/d in the prior year quarter, primarily due to increased non-upgraded bitumen production volumes and a draw of inventory in the current quarter compared to a build of inventory in the prior year quarter.
Price Realizations(1)(2)
Before royalties | | Three months ended | |
($/bbl) | | 2026 | 2025 |
Upgraded – net SCO and diesel |
| 101.08 | 99.27 |
Non-upgraded bitumen |
| 79.77 | 78.00 |
Weighted average |
| 93.41 | 92.54 |
Weighted average crude, relative to WTI |
| (5.56) | (9.92) |
| (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 first quarter of 2026 compared to the prior year quarter, primarily due to higher SCO benchmark pricing and stronger bitumen price realizations from increased U.S. Gulf Coast sales.
Royalties
Royalties for the Oil Sands segment decreased in the first quarter of 2026 compared to the prior year quarter, primarily due to lower Canadian heavy crude pricing.
Total Oil Sands operating expenses increased in the first quarter of 2026 compared to the prior year quarter, primarily due to increased sales volumes, increased maintenance activities, higher share-based compensation expense and higher commodity input costs.
Depreciation, depletion and amortization (DD&A) expense increased in the first quarter of 2026 compared to the prior year quarter, primarily due to the commissioning of new assets and new leases entered into during the quarter.
Exploration expenses increased in the first quarter of 2026 compared to the prior year quarter, primarily due to In Situ development work.
Transportation costs increased in the first quarter of 2026 compared to the prior year quarter, primarily due to increased exports to the U.S. Gulf Coast.
Financing expense and other, which includes other income, were comparable to the prior year quarter.
Management’s Discussion and Analysis
Cash Operating Costs
| | Three months ended | |
($ millions, except as noted) | | 2026 | 2025 |
Oil Sands OS&G(1) |
| 2 712 | 2 392 |
Oil Sands operations cash operating costs reconciliation |
| | |
Oil Sands operations OS&G |
| 1 406 | 1 286 |
Non-production costs(3) |
| 95 | 126 |
Excess power capacity and other(4) |
| (96) | (95) |
Oil Sands operations cash operating costs(2) |
| 1 405 | 1 317 |
Oil Sands operations production volumes (mbbls/d) |
| 539.8 | 526.6 |
Oil Sands operations cash operating costs(2) ($/bbl) |
| 28.95 | 27.80 |
Fort Hills cash operating costs reconciliation |
| | |
Fort Hills OS&G |
| 679 | 617 |
Non-production costs(3) |
| (100) | (74) |
Excess power capacity(4) |
| (5) | (5) |
Fort Hills cash operating costs(2) |
| 574 | 538 |
Fort Hills production volumes (mbbls/d) |
| 187.2 | 176.4 |
Fort Hills cash operating costs(2) ($/bbl) |
| 34.10 | 33.85 |
Syncrude cash operating costs reconciliation |
| | |
Syncrude OS&G |
| 745 | 659 |
Non-production costs(3) |
| (28) | 14 |
Excess power capacity(4) |
| (1) | (3) |
Syncrude cash operating costs(2) |
| 716 | 670 |
Syncrude production volumes (mbbls/d) |
| 188.5 | 206.0 |
Syncrude cash operating costs(2) ($/bbl) |
| 42.20 | 36.10 |
| (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 first quarter of 2026, Oil Sands OS&G included ($118) million of inventory changes and internal transfers. In the first quarter of 2025, Oil Sands OS&G included ($170) 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 $28.95 in the first quarter of 2026, compared to $27.80 in the prior year quarter, with the increase primarily due to a higher proportion of Fort Hills and Syncrude bitumen being directed to upgrading at Oil Sands Base and higher commodity input costs, partially offset by increased production volumes.
Fort Hills cash operating costs per barrel(1) were $34.10 in the first quarter of 2026, compared to $33.85 in the prior year quarter, with the increase primarily due to increased commodity input costs, partially offset by increased production volumes.
Syncrude cash operating costs per barrel(1) were $42.20 in the first quarter of 2026, compared to $36.10 in the prior year quarter, with the increase primarily due to decreased production volumes and increased maintenance activities, partially offset by a lower proportion of Firebag bitumen being directed to upgrading at Syncrude.
Planned Maintenance Update
Updates to the planned maintenance activities affecting the Oil Sands segment, as discussed in the 2025 annual MD&A, are as follows:
| ● | Planned maintenance at the Syncrude Plant and Mine originally scheduled for the second quarter has been deferred to the third quarter. |
(1) | Contains non-GAAP financial measures. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
Exploration and Production
Financial Highlights
| | Three months ended | |
($ millions) | | 2026 | 2025 |
Operating revenues(1) |
| 961 | 729 |
Less: Royalties(1) |
| (229) | (192) |
Operating revenues, net of royalties |
| 732 | 537 |
Earnings before income taxes |
| 382 | 158 |
Adjusted operating earnings(2) |
| 382 | 158 |
Adjusted funds from operations(2) |
| 562 | 330 |
Free funds flow(2) |
| 434 | 121 |
| (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 first quarter of 2026 increased to $382 million, compared to $158 million in the prior year quarter, primarily due to increased sales volumes and higher price realizations as a result of higher benchmark pricing, partially offset by increased operating and transportation expenses and increased royalties.
Volumes
| | Three months ended | |
(mbbls/d) | | 2026 | 2025 |
E&P Canada |
| 71.1 | 55.6 |
E&P International |
| 5.3 | 6.7 |
Total production |
| 76.4 | 62.3 |
Total sales volumes |
| 75.1 | 55.0 |
E&P production increased to 76,400 bbls/d in the first quarter of 2026, compared to 62,300 bbls/d in the prior year quarter, and featured strong production at all assets.
Total E&P sales volumes increased to 75,100 bbls/d in the first quarter of 2026, compared to 55,000 bbls/d in the prior year quarter, primarily due to increased production and the timing of cargo sales in E&P Canada.
Price Realizations(1)(2)
Before royalties | | Three months ended | |
($/bbl) | | 2026 | 2025 |
E&P Canada |
| 114.41 | 108.18 |
| (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 first 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 first quarter of 2026 compared to the prior year quarter, primarily due to the increase in sales volumes and price realizations.
Expenses and Other Factors
Operating and transportation expenses increased in the first quarter of 2026 compared to the prior year quarter, primarily due to increased sales volumes.
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.
Management’s Discussion and Analysis
Financial Highlights
| | Three months ended | |
($ millions) | | 2026 | 2025 |
Operating revenues |
| 9 129 | 7 628 |
Earnings before income taxes |
| 1 650 | 672 |
Adjusted for: |
| | |
Unrealized loss (gain) on risk management activities |
| 34 | (5) |
Adjusted operating earnings(1) |
| 1 684 | 667 |
Adjusted funds from operations(1) |
| 1 981 | 902 |
Free funds flow(1) |
| 1 749 | 722 |
| (1) | 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 first quarter of 2026 increased to $1.684 billion, compared to $667 million in the prior year quarter, primarily due to a significant first-in, first-out (FIFO) inventory valuation gain related to the strengthening of benchmark crude pricing in the current quarter, higher benchmark crack spreads and increased refinery production, partially offset by a related increase in operating and transportation expenses.
Volumes
| | Three months ended | |
| | 2026 | 2025 |
Crude oil processed (mbbls/d) |
| 497.8 | 482.7 |
Refinery utilization(1) (%) |
| 97 | 94 |
Refined product sales (mbbls/d) |
| | |
Gasoline |
| 269.3 | 262.8 |
Distillate |
| 318.1 | 262.6 |
Other |
| 93.5 | 79.5 |
Total |
| 680.9 | 604.9 |
Refinery production(2) (mbbls) |
| 47 581 | 45 798 |
Refining and marketing gross margin – First-in, first-out (FIFO)(3) ($/bbl) |
| 59.10 | 36.70 |
Refining and marketing gross margin – Last-in, first-out (LIFO)(3) ($/bbl) |
| 48.25 | 38.00 |
Refining operating expense(3) ($/bbl) |
| 6.75 | 6.75 |
| (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. All 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. |
Refining throughput increased to a first quarter record of 497,800 bbls/d compared to 482,700 bbls/d in the prior year quarter due to incremental capacity additions resulting from debottlenecking activities and sustained strong operating performance through the current quarter. Refinery utilization(1) was 97% in the first quarter of 2026 and reflects the 10% increase in refining network nameplate capacity to 511,000 bbls/d effective January 1, 2026.
Refined product sales increased to a quarterly record of 680,900 bbls/d, compared to 604,900 bbls/d in the prior year quarter, as Suncor capitalized on global export sales opportunities while continuing to deliver more domestic volumes through retail growth and strategic partnerships. Sales volumes reflected higher refinery production in the quarter, partially driven by higher secondary unit utilization.
(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. All prior quarter utilization rates have been restated to reflect this change. |
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 $48.25/bbl in the first quarter of 2026, from $38.00/bbl in the prior year quarter, primarily due to higher benchmark crack spreads and improved location differentials associated with the company’s regional markets. Margin capture(1) was 99% compared to Suncor’s 5-2-2-1 index in the first quarter of 2026. |
| ● | On a FIFO basis, Suncor’s refining and marketing gross margin increased to $59.10/bbl in the first quarter of 2026, from $36.70/bbl in the prior year quarter, due to the same factors discussed above, in addition to FIFO inventory valuation impacts. In the first quarter of 2026, the FIFO method of inventory valuation resulted in a gain of $518 million compared to a loss of $60 million in the prior year quarter, for a favourable quarter-over-quarter impact of $578 million. |
Expenses and Other Factors
Operating expenses increased in the first quarter of 2026, compared to the prior year quarter, primarily due to increased share-based compensation expense and higher commodity input costs. Transportation expenses increased compared to the prior year quarter, primarily due to increased global export sales opportunities.
Refining operating expense per barrel(1) of $6.75 in the first quarter of 2026 was comparable to $6.75 in the prior year quarter, as increased refinery production offset higher commodity input costs.
Planned Maintenance Update
There are no updates to the planned maintenance activities affecting the R&M segment as discussed in the 2025 annual MD&A.
(1) | Contains non-GAAP financial measures. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
(2) | The estimated impact of the LIFO method is a non-GAAP financial measure. The impact of the FIFO method of inventory valuation, relative to an estimated LIFO accounting method, also includes the impact of the realized portion of commodity risk management activities. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
Management’s Discussion and Analysis
Corporate and Eliminations
Financial Highlights
| | Three months ended | |
($ millions) | | 2026 | 2025 |
Loss before income taxes |
| (722) | (215) |
Adjusted for: |
| | |
Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt |
| 139 | (14) |
Adjusted operating loss(1) |
| (583) | (229) |
Corporate |
| (302) | (301) |
Eliminations – Intersegment profit (eliminated) realized |
| (281) | 72 |
Adjusted funds used in operations(1) |
| (630) | (349) |
Free funds deficit(1) |
| (641) | (356) |
| (1) | 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 $302 million in the first quarter of 2026, which was comparable to a loss of $301 million in the prior year quarter. Increased share-based compensation expense in the current quarter was largely offset by an operational foreign exchange gain in the current quarter compared to a loss recognized in the prior year 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 first quarter of 2026, the company deferred $281 million of intersegment profit compared to a realization of $72 million in the prior year quarter. The deferral of intersegment profit in the first quarter of 2026 was primarily driven by a strengthening of benchmark crude pricing in the current quarter.
Corporate and Eliminations adjusted funds used in operations were $630 million for the first quarter of 2026, compared to adjusted funds used in operations of $349 million in the prior year quarter, and were influenced by the same factors impacting adjusted operating loss, excluding the impact of share-based compensation expense.
| | Three months ended | |
($ millions) | | 2026 | 2025 |
Current income tax expense |
| 777 | 648 |
Deferred income tax recovery |
| (51) | (47) |
Income tax expense included in net earnings |
| 726 | 601 |
Less: Income tax (recovery) expense on adjusted operating earnings adjustments |
| (31) | 14 |
Income tax expense included in adjusted operating earnings |
| 757 | 587 |
Effective tax rate |
| 25.7% | 26.2% |
The provision for income taxes in the first quarter of 2026 increased to $726 million, compared to $601 million in the prior year quarter, primarily due to higher taxable earnings. In the first quarter of 2026, the company's effective tax rate on net earnings decreased compared to the prior year quarter, primarily due to higher earnings and no material changes to the permanent items impacting total tax expense in the current quarter.
Management’s Discussion and Analysis
Capital Expenditures by Type, Excluding Capitalized Interest
| | Three months ended | | ||||
| | | | March 31, | | March 31, | |
| | Asset Sustainment and | Economic | | | | |
($ millions) | | Maintenance(1) | Investment(2) | Total |
| Total |
|
Oil Sands |
| | | | | | |
Oil Sands Base |
| 144 | 78 | 222 | | 242 | |
In Situ |
| 62 | 82 | 144 | | 142 | |
Fort Hills |
| 36 | 141 | 177 | | 123 | |
Syncrude |
| 149 | 36 | 185 | | 202 | |
E&P |
| — | 107 | 107 | | 191 | |
R&M |
| 179 | 51 | 230 | | 180 | |
Corporate and Eliminations |
| 10 | 1 | 11 | | 7 | |
|
| 580 | 496 | 1 076 | | 1 087 | |
Capitalized interest on debt |
| | | 41 | | 58 | |
Total capital expenditures |
| | | 1 117 | | 1 145 | |
| (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 first quarter of 2026, the company incurred $1.076 billion of capital expenditures, excluding capitalized interest, compared to $1.087 billion in the prior year quarter. Suncor capitalized $41 million of its borrowing costs in the first quarter of 2026 as part of the cost of major development assets and construction projects in progress, compared to $58 million in the prior year quarter.
Economic investment capital expenditures in the first 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 first 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. |
6. Financial Condition and Liquidity
Indicators
| | Twelve months ended | |
| | 2026 | 2025 |
Return on capital employed (ROCE)(1)(2) (%) |
| 12.4 | 12.8 |
Net debt to adjusted funds from operations(1) (times) |
| 0.5 | 0.6 |
Total debt to total debt plus shareholders’ equity(1) (%) |
| 18.1 | 18.7 |
Net debt to net debt plus shareholders’ equity(1) (%) |
| 13.0 | 14.4 |
| (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. |
| (2) | For the twelve months ended March 31, 2026, and the twelve months ended March 31, 2025, there were no impairments or impairment reversals. As a result, ROCE excluding impairments was equal to ROCE. |
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 March 31, 2026, cash and cash equivalents decreased to $3.271 billion from $3.650 billion as at December 31, 2025. The use of cash in the first quarter of 2026 was primarily due to 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 exceeding the company’s cash flow provided by operating activities.
As at March 31, 2026, the weighted average days to maturity of the company’s short-term investment portfolio was approximately 24 days.
As at March 31, 2026, available credit facilities for liquidity purposes were $5.263 billion, compared to $5.219 billion as at December 31, 2025.
Financing Activities
Management of debt levels and liquidity continues to be a priority for Suncor given the company’s long-term plans and the expected future volatility in the business environment. Suncor believes a phased and flexible approach to existing and future projects will help the company maintain its ability to manage project costs and debt levels.
Total Debt to Total Debt Plus Shareholders’ Equity
Suncor is subject to financial and operating covenants related to its bank debt and public market debt. Failure to meet the terms of one or more of these covenants may constitute an “event of default” as defined in the respective debt agreements, potentially resulting in accelerated repayment of one or more of the debt obligations. The company is in compliance with its financial covenant that requires total debt and lease liabilities to not exceed 65% of its total debt and lease liabilities plus shareholders’ equity. As at March 31, 2026, total debt and lease liabilities to total debt and lease liabilities plus shareholders’ equity was 24.4% (December 31, 2025 – 24.3%). The company also continues to be in compliance with all operating covenants under its debt agreements.
Management’s Discussion and Analysis
Change in Debt
| | Three months ended |
($ millions) | | March 31, 2026 |
Total debt(1) – beginning of period |
| 9 987 |
Decrease in long-term debt | | — |
Decrease in short-term debt | | — |
Foreign exchange on debt, and other |
| 126 |
Total debt(1) – March 31, 2026 |
| 10 113 |
Less: Cash and cash equivalents – March 31, 2026 |
| 3 271 |
Net debt (1) – March 31, 2026 |
| 6 842 |
| (1) | Non-GAAP financial measures. See the Non-GAAP and Other Financial Measures Advisory section of this MD&A. |
The company’s total debt increased in the first quarter of 2026, primarily due to unfavourable foreign exchange rates on U.S. dollar denominated debt compared to December 31, 2025.
As at March 31, 2026, Suncor’s net debt was $6.842 billion, compared to $6.337 billion as at December 31, 2025. The increase in net debt was primarily due to a decrease in cash and cash equivalents and the factors discussed above.
Common Shares
| | March 31, |
(thousands) | | 2026 |
Common shares |
| 1 184 187 |
Common share options – exercisable |
| 1 871 |
Common share options – non-exercisable |
| 1 812 |
As at April 30, 2026, the total number of common shares outstanding was 1,180,745,189 and the total number of exercisable and non-exercisable common share options outstanding was 3,149,378. Once vested, each outstanding common share option is exercisable for one common share.
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 | | 7 263 |
Between March 3, 2026, and April 30, 2026, pursuant to Suncor’s current NCIB, Suncor repurchased 7,262,538 common shares on the open market, representing the equivalent of 0.6% of its common shares as at February 18, 2026, for $625 million, at a weighted average price of $86.07 per common share.
The actual number of common shares that may be repurchased under the NCIB and the timing of any such repurchases will be determined by Suncor. The company believes that repurchasing its own shares represents an attractive investment opportunity and is in the best interests of the company and its shareholders. The company does not expect that the decision to allocate cash to repurchase shares will affect its long-term strategy.
| | Three months ended | |
($ millions, except as noted) | | 2026 | 2025 |
Share repurchase activities (thousands of common shares) |
| 11 072 | 13 600 |
Weighted average repurchase price per share (dollars per share) |
| 74.51 | 55.15 |
Share repurchase cost(1) |
| 825 | 750 |
| (1) | The three months ended March 31, 2025, excludes $48 million of taxes paid on share repurchase costs. |
Contractual Obligations, Commitments, Guarantees and Off-Balance Sheet Arrangements
In the normal course of business, the company is obligated to make future payments, including payments in respect of contractual obligations and non-cancellable commitments. Suncor has included these items in the Financial Condition and Liquidity section of the 2025 annual MD&A, with no material updates to note during the three months ended March 31, 2026. Suncor does not believe it has any guarantees or off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on the company’s financial performance or financial condition, results of operations, liquidity or capital expenditures.
Management’s Discussion and Analysis
Trends in Suncor’s quarterly revenue, earnings and adjusted funds from operations are driven primarily by production volumes, which can be significantly impacted by major maintenance events, changes in commodity prices and crude differentials, refining crack spreads, foreign exchange rates and other significant events impacting operations, such as operational incidents.
Financial Summary
Three months ended | | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 |
($ millions, unless otherwise noted) | | 2026 | 2025 | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 |
Total production (mbbls/d) |
| | | | | | | | |
Oil Sands |
| 798.8 | 845.4 | 812.2 | 748.4 | 790.9 | 817.5 | 776.0 | 716.0 |
Exploration and Production |
| 76.4 | 63.6 | 57.8 | 59.7 | 62.3 | 57.5 | 52.6 | 54.6 |
Total upstream production |
| 875.2 | 909.0 | 870.0 | 808.1 | 853.2 | 875.0 | 828.6 | 770.6 |
Refinery crude oil processed (mbbls/d) |
| 497.8 | 504.2 | 491.7 | 442.3 | 482.7 | 486.2 | 487.6 | 430.5 |
Gross revenues |
| 15 422 | 12 733 | 13 565 | 12 749 | 13 330 | 13 657 | 13 905 | 14 014 |
Net earnings |
| 2 100 | 1 476 | 1 619 | 1 134 | 1 689 | 818 | 2 020 | 1 568 |
Per common share – basic (dollars) |
| 1.77 | 1.23 | 1.34 | 0.93 | 1.36 | 0.65 | 1.59 | 1.22 |
Adjusted operating earnings(1) |
| 2 300 | 1 325 | 1 794 | 873 | 1 629 | 1 566 | 1 875 | 1 626 |
Per common share(1)(2) (dollars) |
| 1.93 | 1.10 | 1.48 | 0.71 | 1.31 | 1.25 | 1.48 | 1.27 |
Adjusted funds from operations(1) |
| 4 030 | 3 218 | 3 831 | 2 689 | 3 045 | 3 493 | 3 787 | 3 397 |
Per common share(1)(2) (dollars) |
| 3.39 | 2.68 | 3.16 | 2.20 | 2.46 | 2.78 | 2.98 | 2.65 |
Cash flow provided by operating activities |
| 2 435 | 3 921 | 3 785 | 2 919 | 2 156 | 5 083 | 4 261 | 3 829 |
Per common share(2) (dollars) |
| 2.05 | 3.27 | 3.13 | 2.38 | 1.74 | 4.05 | 3.36 | 2.98 |
Free funds flow(1) |
| 2 913 | 1 699 | 2 347 | 981 | 1 900 | 1 923 | 2 232 | 1 350 |
Per common share(1)(2) (dollars) |
| 2.45 | 1.42 | 1.94 | 0.80 | 1.53 | 1.53 | 1.76 | 1.05 |
ROCE(1) (%) for the twelve months ended |
| 12.4 | 11.3 | 11.0 | 11.1 | 12.8 | 13.0 | 15.6 | 15.6 |
Net debt(1) |
| 6 842 | 6 337 | 7 147 | 7 673 | 7 559 | 6 861 | 7 968 | 9 054 |
Common share information (dollars) |
| | | | | | | | |
Dividend per common share(2) |
| 0.60 | 0.60 | 0.57 | 0.57 | 0.57 | 0.57 | 0.55 | 0.55 |
Share price at the end of trading |
| | | | | | | | |
Toronto Stock Exchange (Cdn$) |
| 92.01 | 60.92 | 58.24 | 51.01 | 55.72 | 51.31 | 49.92 | 52.15 |
New York Stock Exchange (US$) |
| 66.11 | 44.36 | 41.81 | 37.45 | 38.72 | 35.68 | 36.92 | 38.10 |
| (2) | Presented on a basic per share basis. |
Business Environment
| | | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 |
(average for the three months ended) | | | 2026 | 2025 | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 |
WTI crude oil at Cushing |
| US$/bbl | 72.15 | 59.15 | 64.95 | 63.70 | 71.40 | 70.30 | 75.15 | 80.55 |
Dated Brent crude |
| US$/bbl | 80.95 | 63.70 | 69.10 | 67.80 | 75.70 | 74.70 | 80.25 | 84.90 |
Dated Brent/Maya FOB price differential |
| US$/bbl | 15.45 | 9.70 | 8.80 | 10.10 | 11.10 | 11.85 | 13.90 | 12.05 |
MSW at Edmonton |
| Cdn$/bbl | 93.85 | 76.55 | 86.40 | 84.25 | 95.30 | 94.95 | 98.00 | 105.25 |
WCS at Hardisty |
| US$/bbl | 58.00 | 47.95 | 54.55 | 53.50 | 58.75 | 57.75 | 61.65 | 67.00 |
WCS-WTI heavy/light differential |
| US$/bbl | (14.15) | (11.20) | (10.40) | (10.20) | (12.65) | (12.55) | (13.50) | (13.55) |
SYN-WTI (differential) premium |
| US$/bbl | (0.40) | (1.30) | 1.35 | 1.00 | (2.35) | 0.85 | 1.30 | 2.80 |
Condensate at Edmonton |
| US$/bbl | 71.65 | 57.00 | 63.10 | 63.50 | 69.90 | 70.65 | 71.30 | 77.15 |
Natural gas (Alberta spot) at AECO |
| Cdn$/GJ | 1.90 | 2.20 | 0.60 | 1.65 | 2.05 | 1.45 | 0.65 | 1.10 |
Alberta Power Pool Price |
| Cdn$/MWh | 32.15 | 43.00 | 51.30 | 40.50 | 39.80 | 51.50 | 55.35 | 45.15 |
New York Harbor 2-1-1 crack(1) |
| US$/bbl | 35.40 | 29.90 | 29.95 | 25.90 | 21.05 | 18.80 | 21.05 | 24.75 |
Chicago 2-1-1 crack(1) |
| US$/bbl | 23.05 | 21.50 | 26.40 | 22.05 | 14.65 | 13.85 | 19.35 | 18.85 |
Portland 2-1-1 crack(1) |
| US$/bbl | 38.25 | 31.75 | 42.05 | 38.20 | 22.30 | 20.95 | 20.35 | 29.30 |
Gulf Coast 2-1-1 crack(1) |
| US$/bbl | 32.55 | 27.15 | 27.10 | 23.20 | 20.85 | 17.00 | 18.90 | 22.10 |
U.S. Renewable Volume Obligation |
| US$/bbl | 8.75 | 6.10 | 6.40 | 6.15 | 4.75 | 4.05 | 3.90 | 3.40 |
Suncor custom 5-2-2-1 index(2) |
| US$/bbl | 35.70 | 32.00 | 31.20 | 27.85 | 26.80 | 24.25 | 26.05 | 26.70 |
Exchange rate (average) |
| US$/Cdn$ | 0.73 | 0.72 | 0.73 | 0.72 | 0.70 | 0.71 | 0.73 | 0.73 |
Exchange rate (end of period) |
| US$/Cdn$ | 0.72 | 0.72 | 0.72 | 0.73 | 0.69 | 0.69 | 0.74 | 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 custom index is calculated, see Suncor’s 2025 annual MD&A. |
Management’s Discussion and Analysis
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 months ended March 31, 2026, and the Financial Condition and Liquidity section of the 2025 annual MD&A.
Control Environment
Based on their evaluation as at March 31, 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 March 31, 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 March 31, 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, reflecting a 10% increase in refining network nameplate capacity to 511,000 bbls/d, which resulted in refinery utilization guidance changing from 99%–102% to 90%–93%. Refinery throughput guidance remains unchanged at 460,000–475,000 bbls/d.
For further details and advisories regarding Suncor’s 2026 corporate guidance, see www.suncor.com/guidance.
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. |
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 March 31 | | | | |
($ millions, except as noted) | | | 2026 | 2025 |
Adjustments to net earnings |
| | | |
Net earnings |
| | 6 329 | 6 095 |
(Deduct) add after-tax amounts for: |
| | | |
Unrealized foreign exchange (gain) loss on U.S. dollar denominated debt |
| | (221) | 393 |
Net interest expense |
| | 349 | 267 |
Adjusted net earnings(1) |
| A | 6 457 | 6 755 |
Capital employed – beginning of twelve-month period |
| | | |
Net debt(2) |
| | 7 559 | 9 552 |
Shareholders’ equity |
| | 44 834 | 44 308 |
|
| | 52 393 | 53 860 |
Capital employed – end of twelve-month period |
| | | |
Net debt(2) |
| | 6 842 | 7 559 |
Shareholders’ equity |
| | 45 776 | 44 834 |
|
| | 52 618 | 52 393 |
Average capital employed |
| B | 52 178 | 52 690 |
ROCE (%)(3) |
| A/B | 12.4 | 12.8 |
| (1) | Total before-tax impact of adjustments is $227 million for the twelve months ended March 31, 2026, and $799 million for the twelve months ended March 31, 2025. |
| (2) | Net debt is a non-GAAP financial measure. |
| (3) | For the twelve months ended March 31, 2026, and the twelve months ended March 31, 2025, there were no impairments or impairment reversals. As a result, ROCE excluding impairments was equal to ROCE. |
Adjusted Funds From (Used In) Operations
Adjusted funds from (used in) operations is a non-GAAP financial measure that adjusts a GAAP measure – cash flow provided by operating activities – for changes in non-cash working capital, which management uses to analyze operating performance and liquidity. Changes to non-cash working capital can be impacted by, among other factors, commodity price volatility, the timing of offshore feedstock purchases and payments for commodity and income taxes, the timing of cash flows related to accounts receivable and accounts payable, and changes in inventory, which management believes reduces comparability between periods.
Adjusted funds from (used in) operations for each quarter are separately defined and reconciled to the cash flow provided by the operating activities measure in the Non-GAAP and Other Financial Measures Advisory section of each respective MD&A or Quarterly Report to shareholders, as applicable, for the related quarter, with such information being incorporated by reference herein and available on SEDAR+ at www.sedarplus.ca.
Three months ended March 31 | | Oil Sands | Exploration and Production | Refining and | Corporate and Eliminations | Income Taxes | Total | ||||||
($ millions) | | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 |
Earnings (loss) before income taxes |
| 1 516 | 1 675 | 382 | 158 | 1 650 | 672 | (722) | (215) | — | — | 2 826 | 2 290 |
Adjustments for: |
| | | | | | | | | | | | |
Depreciation, depletion and amortization |
| 1 235 | 1 199 | 175 | 171 | 276 | 257 | 45 | 36 | — | — | 1 731 | 1 663 |
Accretion |
| 130 | 124 | 19 | 16 | 4 | 3 | — | — | — | — | 153 | 143 |
Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt |
| — | — | — | — | — | — | 139 | (14) | — | — | 139 | (14) |
Change in fair value of financial instruments and trading inventory |
| 141 | (68) | (8) | (6) | 56 | 17 | — | — | — | — | 189 | (57) |
Gain on disposal of assets |
| — | — | — | — | (6) | — | (7) | — | — | | (13) | — |
Share-based compensation |
| (34) | (86) | (2) | (6) | (14) | (40) | (70) | (171) | — | — | (120) | (303) |
Settlement of decommissioning and |
| (140) | (79) | (5) | (3) | (13) | (12) | — | — | — | — | (158) | (94) |
Other |
| 46 | 45 | 1 | — | 28 | 5 | (15) | 15 | — | — | 60 | 65 |
Current income tax expense |
| — | — | — | — | — | — | — | — | (777) | (648) | (777) | (648) |
Adjusted funds from (used in) operations |
| 2 894 | 2 810 | 562 | 330 | 1 981 | 902 | (630) | (349) | (777) | (648) | 4 030 | 3 045 |
Change in non-cash working capital |
| | | | | | | | | | | (1 595) | (889) |
Cash flow provided by operating activities |
| | | | | | | | | | | 2 435 | 2 156 |
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 March 31 | | 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 |
| 2 894 | 2 810 | 562 | 330 | 1 981 | 902 | (630) | (349) | (777) | (648) | 4 030 |
| 3 045 |
Capital expenditures including capitalized interest |
| (746) | (749) | (128) | (209) | (232) | (180) | (11) | (7) | — | — | (1 117) | | (1 145) |
Free funds flow (deficit) |
| 2 148 | 2 061 | 434 | 121 | 1 749 | 722 | (641) | (356) | (777) | (648) | 2 913 | | 1 900 |
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.
Management’s Discussion and Analysis
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 | |
($ millions, except as noted) | | 2026 | 2025 |
Refining and marketing gross margin reconciliation |
| | |
Operating revenues |
| 9 129 | 7 628 |
Purchases of crude oil and products |
| (6 256) | (5 922) |
|
| 2 873 | 1 706 |
Other loss |
| (86) | (12) |
Non-refining and marketing margin |
| 26 | (13) |
Refining and marketing gross margin – FIFO |
| 2 813 | 1 681 |
Refinery production(1) (mbbls) |
| 47 581 | 45 798 |
Refining and marketing gross margin – FIFO ($/bbl) |
| 59.10 | 36.70 |
FIFO and risk management activities adjustment |
| (518) | 60 |
Refining and marketing gross margin – LIFO |
| 2 295 | 1 741 |
Refining and marketing gross margin – LIFO ($/bbl) |
| 48.25 | 38.00 |
Refining operating expense reconciliation |
| | |
Operating, selling and general expense |
| 673 | 609 |
Non-refining costs |
| (352) | (301) |
Refining operating expense |
| 321 | 308 |
Refinery production(1) (mbbls) |
| 47 581 | 45 798 |
Refining operating expense ($/bbl) |
| 6.75 | 6.75 |
Refining and marketing margin capture reconciliation |
| | |
Refining and marketing gross margin – LIFO ($/bbl) | | 48.25 | 38.00 |
Suncor custom 5-2-2-1 index ($/bbl) | | 48.95 | 38.45 |
Refining and marketing margin capture (%) | | 99 | 99 |
| (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. |
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).
| | March 31 | December 31 |
($ millions, except as noted) | | 2026 | 2025 |
Short-term debt |
| — | — |
Current portion of long-term debt |
| 979 | 973 |
Long-term debt |
| 9 134 | 9 014 |
Total debt |
| 10 113 | 9 987 |
Less: Cash and cash equivalents |
| 3 271 | 3 650 |
Net debt |
| 6 842 | 6 337 |
Shareholders’ equity |
| 45 776 | 45 124 |
Total debt plus shareholders’ equity |
| 55 889 | 55 111 |
Total debt to total debt plus shareholders’ equity (%) |
| 18.1 | 18.1 |
Net debt to net debt plus shareholders’ equity (%) |
| 13.0 | 12.3 |
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
| | March 31, 2026 | | March 31, 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 |
| 2 637 | 4 877 | 7 514 | | 2 285 | 4 856 | 7 141 |
Other income |
| 78 | 101 | 179 | | 41 | 57 | 98 |
Purchases of crude oil and products |
| (719) | (132) | (851) | | (572) | (37) | (609) |
Gross realization adjustment(1) |
| 64 | (207) | (143) | | (35) | (154) | (189) |
Price realization |
| 2 060 | 4 639 | 6 699 | | 1 719 | 4 722 | 6 441 |
Sales volumes (mbbls) |
| 25 830 | 45 899 | 71 729 | | 22 041 | 47 567 | 69 608 |
Price realization per barrel(2) |
| 79.77 | 101.08 | 93.41 | | 78.00 | 99.27 | 92.54 |
| (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. |
Management’s Discussion and Analysis
E&P Price Realizations
Three months ended | | March 31, 2026 | | March 31, 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 |
| 718 | 243 | 961 | | 470 | 259 | 729 |
Price realization |
| 718 | 243 | | | 470 | 259 | |
Sales volumes (mbbls) |
| 6 277 | | | | 4 344 | | |
Price realization per barrel(3) |
| 114.41 | | | | 108.18 | | |
| (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 first quarter of 2026, revenue included a gross-up amount of $185 million (2025 – $196 million), with an offsetting amount of $107 million (2025 – $106 million) in royalties in the E&P segment and $78 million (2025 – $90 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. |
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 | |
| | Q1 | Three months ended March 31 |
| | 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 |
Management’s Discussion and Analysis
Forward-Looking Statements
This MD&A contains certain forward-looking statements and other information based on Suncor’s current expectations, estimates, projections and assumptions that were made by the company in light of information available at the time the statement was made and consider Suncor’s experience and its perception of historical trends, including expectations and assumptions concerning: the accuracy of reserves estimates; commodity prices and interest and foreign exchange rates; the performance of assets and equipment; uncertainty related to geopolitical conflict; capital efficiencies and cost savings; applicable laws and government policies; future production rates; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour, services and infrastructure; the satisfaction by third parties of their obligations to Suncor; the development and execution of projects; and the receipt, in a timely manner, of regulatory and third-party approvals. All statements and information that address expectations or projections about the future, and other statements and information about Suncor’s strategy for growth, expected and future expenditures or investment decisions, commodity prices, costs, schedules, production volumes, operating and financial results, future financing and capital activities, and the expected impact of future commitments are forward-looking statements. Some of the forward-looking statements may be identified by words like “expects”, “anticipates”, “will”, “estimates”, “plans”, “scheduled”, “intends”, “believes”, “projects”, “indicates”, “could”, “focus”, “vision”, “goal”, “outlook”, “proposed”, “target”, “objective”, “continue”, “should”, “may”, “future”, “potential”, “opportunity”, “would”, “priority”, “strategy” and similar expressions. Forward-looking statements in this MD&A include references to:
| ● | Suncor’s 2026 Investor Day targets and the expectation that Suncor will achieve its new three-year targets; |
| ● | Suncor’s projection of nearly $4 billion of share repurchases in 2026, an increase of over 30% relative to 2025 share repurchases; |
| ● | the anticipated duration and impact of planned maintenance events, including the planned maintenance at the Syncrude Plant and Mine originally scheduled for the second quarter of 2026 being deferred to the third quarter of 2026; |
| ● | the expected benefits of asset sustainment and maintenance capital expenditures and economic investment capital expenditures; |
| ● | Suncor’s expectation that the design and construction of new well pads to develop additional reserves will maintain existing production levels and add incremental capacity at In Situ; |
| ● | Suncor’s expectation that the West White Rose project in the E&P segment is nearing completion; |
| ● | statements regarding Suncor’s planned 2026 capital spending program of $5.6 billion to $5.8 billion, including Suncor’s management’s belief that it will have the capital resources to fund it 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 objectives of Suncor’s short term investment portfolio and Suncor’s expectation that the maximum weighted average term to maturity of the short term investment portfolio will not exceed six months, and that all investments will be with counterparties with investment-grade debt ratings; |
| ● | the company’s priority regarding the management of debt levels and liquidity given the company’s long term plans and future expected volatility in the pricing environment, and Suncor’s belief that a phased and flexible approach to existing and future projects will help the company manage project costs and debt levels; |
| ● | statements about the company’s NCIB, including the belief that repurchasing its own shares represents an attractive investment opportunity and is in the best interests of the company and its shareholders and its expectation that its decision to allocate cash to repurchase shares will not affect its long-term strategy; and |
| ● | the company’s belief that it does not have 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. |
Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to Suncor. Suncor’s actual results may differ materially from those expressed or implied by its forward-looking statements, so readers are cautioned not to place undue reliance on them. The financial and operating performance of the company’s reportable operating segments, specifically Oil Sands, E&P and R&M, may be affected by a number of factors.
Factors that affect Suncor’s Oil Sands segment include, but are not limited to, volatility in the prices for crude oil and other production, and the related impacts of fluctuating light/heavy and sweet/sour crude oil differentials; changes in the demand for refinery feedstock and diesel fuel, including the possibility that refiners that process the company’s proprietary production will be closed, experience equipment failure or other accidents; Suncor’s ability to operate its Oil Sands facilities reliably in order to meet production targets; the output of newly commissioned facilities, the performance of which may be difficult to predict during initial operations; Suncor’s dependence on pipeline capacity and other logistical constraints, which may affect the company’s ability to distribute products to market and which may cause the company to delay or cancel planned growth projects in the event of insufficient takeaway capacity; Suncor’s ability to finance Oil Sands economic investment and asset sustainment and maintenance capital expenditures; the availability of bitumen feedstock for upgrading operations, which can be negatively affected by poor ore grade quality, unplanned mine equipment and extraction plant maintenance, tailings storage, and In Situ reservoir and equipment performance, or the unavailability of third-party bitumen; changes in operating costs, including the cost of labour, natural gas and other energy sources used in oil sands processes; and the company’s ability to complete projects, including planned maintenance events, both on time and on budget, which could be impacted by competition from other projects (including other oil sands projects) for goods and services and demands on infrastructure in Alberta’s Wood Buffalo region and the surrounding area (including housing, roads and schools).
Factors that affect Suncor’s E&P segment include, but are not limited to, volatility in crude oil and natural gas prices; operational risks and uncertainties associated with oil and gas activities, including unexpected formations or pressures, premature declines of reservoirs, fires, blow-outs, equipment failures and other accidents, uncontrollable flows of crude oil, natural gas or well fluids, and pollution and other environmental risks; adverse weather conditions, which could disrupt output from producing assets or impact drilling programs, resulting in increased costs and/or delays in bringing on new production; political, economic and socioeconomic risks associated with Suncor’s foreign
operations, including the unpredictability of operating in Libya due to ongoing political unrest; and market demand for mineral rights and producing properties, potentially leading to losses on disposition or increased property acquisition costs.
Factors that affect the R&M segment include, but are not limited to, fluctuations in demand and supply for refined products that impact the company’s margins; market competition, including potential new market entrants; the company’s ability to reliably operate refining and marketing facilities to meet production or sales targets; and risks and uncertainties affecting construction or planned maintenance schedules, including the availability of labour and other impacts of competing projects drawing on the same resources during the same time period.
Additional risks, uncertainties and other factors that could influence the financial and operating performance of all of Suncor’s operating segments and activities include, but are not limited to, changes in general economic, market and business conditions, such as commodity prices, interest rates, currency exchange rates and potential trade tariffs (including as a result of demand and supply effects resulting from the actions of OPEC+ and/or the impact of armed conflicts in the Middle East, the impact of the Russian invasion of Ukraine and/or the impact of changes to the U.S. government economic policy); heightened geopolitical tensions, including the imposition or escalation of economic sanctions, export controls and trade restrictions, which may result in the disruption of global and regional supply chains; fluctuations in supply and demand for Suncor’s products; the successful and timely implementation of capital projects, including growth projects and regulatory projects; risks associated with the development and execution of Suncor’s major projects and the commissioning and integration of new facilities; the possibility that completed maintenance activities may not improve operational performance or the output of related facilities; the risk that projects and initiatives intended to achieve cash flow growth and/or reductions in operating costs may not achieve the expected results in the time anticipated or at all; competitive actions of other companies, including increased competition from other oil and gas companies or from companies that provide alternative sources of energy; labour and material shortages; actions by government authorities, including the imposition or reassessment of, or changes to, taxes, fees, royalties, duties and other government-imposed compliance costs; changes to laws and government policies that could impact the company’s business, including environmental (including climate change), royalty and tax laws and policies; the ability and willingness of parties with whom Suncor has material relationships to perform their obligations to the company; the unavailability of, or outages to, third-party infrastructure that could cause disruptions to production or prevent the company from being able to transport its products; the occurrence of a protracted operational outage, a major safety or environmental incident, or unexpected events such as fires (including forest fires), equipment failures and other similar events affecting Suncor or other parties whose operations or assets directly or indirectly affect Suncor; the potential for security breaches of Suncor’s information technology and infrastructure by malicious persons or entities, and the unavailability or failure of such systems to perform as anticipated as a result of such breaches; security threats and terrorist or activist activities; the risk that competing business objectives may exceed Suncor’s capacity to adopt and implement change; risks and uncertainties associated with obtaining regulatory, third-party and stakeholder approvals outside of Suncor’s control for the company’s operations, projects, initiatives and exploration and development activities and the satisfaction of any conditions to approvals; the potential for disruptions to operations and construction projects as a result of Suncor’s relationships with labour unions that represent employees at the company’s facilities; the company’s ability to find new oil and gas reserves that can be developed economically; the accuracy of Suncor’s reserves, resources and future production estimates; market instability affecting Suncor’s ability to borrow in the capital debt markets at acceptable rates or to issue other securities at acceptable prices; the ability to maintain an optimal debt to cash flow ratio; the success of the company’s marketing and logistics activities using derivatives and other financial instruments; the cost of compliance with current and future environmental laws, including climate change laws; risks relating to increased activism and public opposition to fossil fuels and oil sands; the ability of counterparties to comply with their obligations in a timely manner; risks associated with joint arrangements in which the company has an interest; risks associated with land claims and Indigenous consultation requirements; the risk that the company may be subject to litigation; the impact of technology and risks associated with developing and implementing new technologies; and the accuracy of cost estimates, some of which are provided at the conceptual or other preliminary stage of projects and prior to commencement or conception of the detailed engineering that is needed to reduce the margin of error and increase the level of accuracy. The foregoing important factors are not exhaustive.
Many of these risk factors and other assumptions related to Suncor’s forward-looking statements are discussed in further detail throughout this MD&A, and in the company’s 2025 annual MD&A, the 2025 AIF and Form 40-F on file with Canadian securities commissions at www.sedarplus.ca and the United States Securities and Exchange Commission at www.sec.gov. Readers are also referred to the risk factors and assumptions described in other MD&As that Suncor files from time to time with securities regulatory authorities. Copies of these MD&As are available without charge from the company.
The forward-looking statements contained in this MD&A are made as of the date of this MD&A. Except as required by applicable securities laws, we assume no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing risks and assumptions affecting such forward-looking statements, whether as a result of new information, future events or otherwise.
Consolidated Statements of Comprehensive Income
(unaudited)
| | Three months ended | ||
($ millions) | | 2026 | | 2025 |
Revenues and Other Income |
| | | |
Gross revenues (note 3) |
| 15 422 | | 13 330 |
Less: royalties |
| (941) | | (1 007) |
Other income (note 4) |
| 182 | | 130 |
|
| 14 663 |
| 12 453 |
Expenses |
| | | |
Purchases of crude oil and products |
| 5 218 | | 4 300 |
Operating, selling and general |
| 3 778 | | 3 297 |
Transportation and distribution |
| 563 | | 448 |
Depreciation, depletion and amortization |
| 1 731 | | 1 663 |
Exploration |
| 136 | | 122 |
Gain on disposal of assets |
| (13) | | — |
Financing expenses (note 6) |
| 424 | | 333 |
|
| 11 837 |
| 10 163 |
Earnings before Income Taxes |
| 2 826 |
| 2 290 |
|
| | | |
Income Tax Expense (Recovery) |
| | | |
Current |
| 777 | | 648 |
Deferred |
| (51) | | (47) |
|
| 726 | | 601 |
Net Earnings |
| 2 100 | | 1 689 |
|
| | | |
Other Comprehensive Income |
| | | |
Items That May be Subsequently Reclassified to Earnings: |
| | | |
Foreign currency translation adjustment |
| 57 | | (21) |
Items That Will Not be Reclassified to Earnings: |
| | | |
Actuarial gain on employee retirement benefit plans, net of income taxes |
| 73 | | 35 |
Other Comprehensive Income |
| 130 | | 14 |
|
| | | |
Total Comprehensive Income |
| 2 230 | | 1 703 |
|
| | | |
Per Common Share (dollars) (note 7) |
| | | |
Net earnings – basic and diluted |
| 1.77 | | 1.36 |
Cash dividends |
| 0.60 | | 0.57 |
See accompanying notes to the condensed interim consolidated financial statements.
Consolidated Balance Sheets
(unaudited)
| | March 31 | | December 31 |
($ millions) | | 2026 | | 2025 |
Assets |
| | | |
Current assets |
| | | |
Cash and cash equivalents |
| 3 271 |
| 3 650 |
Accounts receivable |
| 7 798 |
| 5 087 |
Inventories |
| 6 178 |
| 5 121 |
Income taxes receivable |
| 215 |
| 371 |
Total current assets |
| 17 462 |
| 14 229 |
Property, plant and equipment, net |
| 68 013 |
| 68 428 |
Exploration and evaluation |
| 1 742 |
| 1 742 |
Other assets |
| 2 090 |
| 1 977 |
Goodwill and other intangible assets |
| 3 442 |
| 3 455 |
Deferred income taxes |
| 77 |
| 82 |
Total assets |
| 92 826 |
| 89 913 |
|
| | | |
Liabilities and Shareholders’ Equity |
| | | |
Current liabilities |
| | | |
Current portion of long-term debt (note 9) |
| 979 |
| 973 |
Current portion of long-term lease liabilities |
| 651 | | 638 |
Accounts payable and accrued liabilities |
| 9 595 |
| 7 523 |
Current portion of provisions |
| 1 013 |
| 1 056 |
Income taxes payable |
| 81 |
| 20 |
Total current liabilities |
| 12 319 |
| 10 210 |
Long-term debt (note 9) |
| 9 134 |
| 9 014 |
Long-term lease liabilities |
| 4 048 | | 3 879 |
Other long-term liabilities |
| 1 481 |
| 1 416 |
Provisions |
| 11 934 |
| 12 108 |
Deferred income taxes |
| 8 134 |
| 8 162 |
Equity |
| 45 776 |
| 45 124 |
Total liabilities and shareholders’ equity |
| 92 826 |
| 89 913 |
See accompanying notes to the condensed interim consolidated financial statements.
Consolidated Statements of Cash Flows
(unaudited)
| | Three months ended | ||
($ millions) | | 2026 | | 2025 |
Operating Activities |
| | | |
Net Earnings |
| 2 100 | | 1 689 |
Adjustments for: |
| | | |
Depreciation, depletion and amortization |
| 1 731 | | 1 663 |
Deferred income tax recovery |
| (51) | | (47) |
Accretion (note 6) |
| 153 | | 143 |
Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt (note 6) |
| 139 | | (14) |
Change in fair value of financial instruments and trading inventory |
| 189 | | (57) |
Gain on disposal of assets |
| (13) | | — |
Share-based compensation |
| (120) | | (303) |
Settlement of decommissioning and restoration liabilities |
| (158) | | (94) |
Other |
| 60 | | 65 |
Increase in non-cash working capital |
| (1 595) | | (889) |
Cash flow provided by operating activities |
| 2 435 | | 2 156 |
Investing Activities |
| | | |
Capital expenditures |
| (1 117) | | (1 145) |
Proceeds from disposal of assets |
| 13 | | — |
Other investments and acquisitions |
| (7) | | (6) |
Increase in non-cash working capital |
| (91) | | (104) |
Cash flow used in investing activities |
| (1 202) | | (1 255) |
Financing Activities |
| | | |
Lease liability payments |
| (176) | | (180) |
Issuance of common shares under share option plans |
| 69 | | 75 |
Repurchase of common shares(1) (note 8) |
| (825) | | (798) |
Distributions relating to non-controlling interest |
| (4) | | (4) |
Dividends paid on common shares |
| (712) | | (705) |
Cash flow used in financing activities |
| (1 648) | | (1 612) |
Decrease in Cash and Cash Equivalents |
| (415) | | (711) |
Effect of foreign exchange on cash and cash equivalents |
| 36 | | — |
Cash and cash equivalents at beginning of period |
| 3 650 | | 3 484 |
Cash and Cash Equivalents at End of Period |
| 3 271 | | 2 773 |
Supplementary Cash Flow Information |
| | | |
Interest paid |
| 159 | | 148 |
Income taxes paid |
| 500 | | 604 |
| (1) | Prior year three months ended March 31, 2025 includes $48 million of taxes paid on 2024 share repurchases. |
See accompanying notes to the condensed interim consolidated financial statements.
Consolidated Statements of Changes In Equity
(unaudited)
| | | | | | Accumulated | | | | | | Number of |
| | | | | | Other | | | | | | Common |
| | Share | | Contributed | | Comprehensive | | Retained | | | | Shares |
($ millions) | | Capital | | Surplus | | Income | | Earnings | | Total | | (thousands) |
At December 31, 2024 |
| 21 121 |
| 520 |
| 1 201 |
| 21 672 |
| 44 514 |
| 1 244 332 |
Net earnings |
| — | | — | | — | | 1 689 | | 1 689 |
| — |
Foreign currency translation adjustment |
| — | | — | | (21) | | — | | (21) |
| — |
Actuarial gain on employee retirement benefit plans, |
| — | | — | | — | | 35 | | 35 |
| — |
Total comprehensive income |
| — |
| — |
| (21) |
| 1 724 |
| 1 703 |
| — |
Issued under share option plans |
| 88 | | (13) | | — | | — | | 75 |
| 1 847 |
Repurchase of common shares for cancellation(1) |
| (232) | | — | | — | | (531) | | (763) |
| (13 600) |
Change in liability for share repurchase commitment |
| 10 | | — | | — | | (4) | | 6 |
| — |
Share-based compensation |
| — | | 4 | | — | | — | | 4 |
| — |
Dividends paid on common shares |
| — | | — | | — | | (705) | | (705) |
| — |
At March 31, 2025 |
| 20 987 | | 511 | | 1 180 | | 22 156 | | 44 834 | | 1 232 579 |
At December 31, 2025 |
| 20 402 |
| 502 |
| 999 |
| 23 221 |
| 45 124 |
| 1 193 520 |
Net earnings |
| — | | — | | — | | 2 100 | | 2 100 |
| — |
Foreign currency translation adjustment |
| — | | — | | 57 | | — | | 57 |
| — |
Actuarial gain on employee retirement benefit plans, |
| — | | — | | — | | 73 | | 73 | | — |
Total comprehensive income |
| — | | — | | 57 | | 2 173 | | 2 230 |
| — |
Issued under share option plans |
| 84 | | (15) | | — | | — | | 69 |
| 1 739 |
Repurchase of common shares for cancellation(1) |
| (190) | | — | | — | | (649) | | (839) |
| (11 072) |
Change in liability for share repurchase commitment |
| 12 | | — | | — | | (110) | | (98) |
| — |
Share-based compensation (note 5) |
| — | | 2 | | — | | — | | 2 |
| — |
Dividends paid on common shares |
| — | | — | | — | | (712) | | (712) |
| — |
At March 31, 2026 |
| 20 308 |
| 489 |
| 1 056 |
| 23 923 |
| 45 776 |
| 1 184 187 |
| (1) | Includes $14 million of taxes on share repurchases for the three months ended March 31, 2026 (March 31, 2025 – $13 million). |
See accompanying notes to the condensed interim consolidated financial statements.
Notes to the Consolidated Financial Statements
(unaudited)
1. Reporting Entity and Description Of The Business
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.
The address of the company’s registered office is 150 – 6th Avenue S.W., Calgary, Alberta, Canada, T2P 3E3.
2. Basis of Preparation
(a) Statement of Compliance
These condensed interim consolidated financial statements are based on International Financial Reporting Standards as issued by the International Accounting Standards Board (the “IFRS Accounting Standards”) and have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting. The accounting policies and methods of computation applied in these condensed interim consolidated financial statements are consistent with those applied in the company’s audited consolidated financial statements as at and for the year ended December 31, 2025. These condensed interim consolidated financial statements do not include all of the information required for full annual financial statements, and they should be read in conjunction with the audited consolidated financial statements of the company for the year ended December 31, 2025.
(b) Basis of Measurement
The consolidated financial statements are prepared on a historical cost basis except as detailed in the accounting policies disclosed in the company’s audited consolidated financial statements for the year ended December 31, 2025.
(c) Functional Currency and Presentation Currency
These consolidated financial statements are presented in Canadian dollars, which is the company’s functional currency.
(d) Use of Estimates, Assumptions and Judgments
The timely preparation of financial statements requires that management make estimates and assumptions and use judgment. Accordingly, actual results may differ from estimated amounts as future confirming events occur. Significant estimates and judgment used in the preparation of the financial statements are described in the company’s audited consolidated financial statements for the year ended December 31, 2025.
(e) Income Taxes
The company recognizes the impacts of income tax rate changes in earnings in the period that the applicable rate change is enacted or substantively enacted.
(f) Adoption of New IFRS Standards
The IASB issued amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures that are effective January 1, 2026, with early adoption permitted. There was no impact to the interim consolidated financial statements as a result of the initial application.
(g) Recently Announced Accounting Pronouncements
The standards, amendments and interpretations that are issued, but not yet effective up to the date of authorization of the company’s interim consolidated financial statements, and that may have an impact on the disclosures and financial position of the company, are disclosed below. The company intends to adopt these standards, amendments and interpretations when they become effective.
The IASB issued IFRS 18 Presentation and Disclosure in Financial Statements which will replace IAS 1 Presentation of Financial Statements. The new standard will establish a revised structure for the consolidated statements of comprehensive income and improve comparability across entities and reporting periods. IFRS 18 is effective for annual periods beginning on or after January 1, 2027. The standard will be applied retrospectively, with certain transition provisions. The company is currently evaluating the impact of adopting IFRS 18 on the consolidated financial statements.
3. Segmented Information
The company’s operating segments are reported based on the nature of their products and services and management responsibility.
Intersegment sales of crude oil are accounted for at market values and are included, for segmented reporting, in revenues of the segment making the transfer and expenses of the segment receiving the transfer. Intersegment amounts are eliminated on consolidation.
| | | | | | Exploration and | | Refining and | | Corporate and | | | | | ||||||
Three months ended March 31 | | Oil Sands | | Production | | Marketing | | Eliminations | | Total | ||||||||||
($ millions) | | 2026 | | 2025 | | 2026 | | 2025 | | 2026 | | 2025 | | 2026 | | 2025 | | 2026 | | 2025 |
|
| | | | | | | | | | | | | | | | | | | |
Revenues and Other Income |
| | | | | | | | | |
| | | |
| | | | | |
Gross revenues |
| 5 335 |
| 4 990 |
| 961 |
| 729 |
| 9 126 |
| 7 611 |
| — |
| — |
| 15 422 |
| 13 330 |
Intersegment revenues |
| 2 179 |
| 2 151 |
| — |
| — |
| 3 |
| 17 |
| (2 182) |
| (2 168) |
| — |
| — |
Less: Royalties |
| (712) |
| (815) |
| (229) |
| (192) |
| — |
| — |
| — |
| — |
| (941) |
| (1 007) |
Operating revenues, net of royalties |
| 6 802 |
| 6 326 |
| 732 |
| 537 |
| 9 129 |
| 7 628 |
| (2 182) |
| (2 168) |
| 14 481 |
| 12 323 |
Other income (loss) |
| 179 |
| 98 |
| 36 |
| 5 |
| (86) |
| (12) |
| 53 |
| 39 |
| 182 |
| 130 |
|
| 6 981 |
| 6 424 |
| 768 |
| 542 |
| 9 043 |
| 7 616 |
| (2 129) |
| (2 129) |
| 14 663 |
| 12 453 |
Expenses |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Purchases of crude oil and products |
| 851 |
| 609 |
| — |
| — |
| 6 256 |
| 5 922 |
| (1 889) |
| (2 231) |
| 5 218 |
| 4 300 |
Operating, selling and general |
| 2 712 |
| 2 392 |
| 133 |
| 120 |
| 673 |
| 609 |
| 260 |
| 176 |
| 3 778 |
| 3 297 |
Transportation and distribution |
| 343 |
| 296 |
| 55 |
| 22 |
| 174 |
| 139 |
| (9) |
| (9) |
| 563 |
| 448 |
Depreciation, depletion and amortization |
| 1 235 |
| 1 199 |
| 175 |
| 171 |
| 276 |
| 257 |
| 45 |
| 36 |
| 1 731 |
| 1 663 |
Exploration |
| 134 |
| 68 |
| 2 |
| 54 |
| — |
| — |
| — |
| — |
| 136 |
| 122 |
Gain on disposal of assets |
| — |
| — |
| — |
| — |
| (6) |
| — |
| (7) |
| — |
| (13) |
| — |
Financing expenses |
| 190 |
| 185 |
| 21 |
| 17 |
| 20 |
| 17 |
| 193 |
| 114 |
| 424 |
| 333 |
|
| 5 465 |
| 4 749 |
| 386 |
| 384 |
| 7 393 |
| 6 944 |
| (1 407) |
| (1 914) |
| 11 837 |
| 10 163 |
Earnings (Loss) before Income Taxes |
| 1 516 |
| 1 675 |
| 382 |
| 158 |
| 1 650 |
| 672 |
| (722) |
| (215) |
| 2 826 |
| 2 290 |
Income Tax Expense (Recovery) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Current |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 777 |
| 648 |
Deferred |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| (51) |
| (47) |
|
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 726 |
| 601 |
Net Earnings |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 2 100 |
| 1 689 |
Capital Expenditures |
| 746 |
| 749 |
| 128 |
| 209 |
| 232 |
| 180 |
| 11 |
| 7 |
| 1 117 |
| 1 145 |
Notes to the Consolidated Financial Statements
Disaggregation of Revenue from Contracts with Customers and Intersegment Revenue
The company’s revenues are from the following major commodities:
Three months ended March 31 | | 2026 | | 2025 | ||||||||
($ millions) |
| North America | | International | | Total | | North America | | International | | Total |
Oil Sands |
| | | | | | | | | | | |
Synthetic crude oil and diesel |
| 4 877 | | — | | 4 877 | | 4 856 | | — | | 4 856 |
Bitumen |
| 2 637 | | — | | 2 637 | | 2 285 | | — | | 2 285 |
|
| 7 514 | | — | | 7 514 | | 7 141 | | — | | 7 141 |
Exploration and Production |
| | | | | | | | | | | |
Crude oil and natural gas liquids |
| 718 | | 243 | | 961 | | 470 | | 259 | | 729 |
|
| 718 | | 243 | | 961 | | 470 | | 259 | | 729 |
Refining and Marketing |
| | | | | | | | | | | |
Gasoline |
| 3 464 | | — | | 3 464 | | 3 248 | | — | | 3 248 |
Distillate(1) |
| 4 859 | | 146 | | 5 005 | | 3 670 | | 77 | | 3 747 |
Other |
| 660 | | — | | 660 | | 633 | | — | | 633 |
|
| 8 983 | | 146 | | 9 129 | | 7 551 | | 77 | | 7 628 |
Corporate and Eliminations |
| | | | | | | | | | | |
|
| (2 182) | | — | | (2 182) | | (2 168) | | — | | (2 168) |
Total Revenue from Contracts with Customers |
| 15 033 | | 389 | | 15 422 | | 12 994 | | 336 | | 13 330 |
| (1) | International revenues for comparative period were previously reported under North America. |
4. Other Income
Other income (loss) consists of the following:
| | Three months ended | ||
($ millions) | | 2026 | | 2025 |
Risk management and energy trading |
| 112 | | 69 |
Investment and interest income |
| 74 | | 56 |
Insurance proceeds and other |
| (4) |
| 5 |
|
| 182 |
| 130 |
5. Share-Based Compensation
The following table summarizes the share-based compensation expense for all plans recorded within operating, selling and general expense:
| | Three months ended | ||
($ millions) | | 2026 | | 2025 |
Equity-settled plans | | 2 |
| 4 |
Cash-settled plans | | 318 |
| 141 |
| | 320 | | 145 |
6. Financing Expenses
| | Three months ended | ||
($ millions) | | 2026 | | 2025 |
Interest on debt |
| 159 | | 148 |
Interest on lease liabilities |
| 69 | | 73 |
Capitalized interest |
| (41) | | (58) |
Interest expense |
| 187 | | 163 |
Interest on partnership liability |
| 11 | | 12 |
Interest on pension and other post-retirement benefits |
| (5) | | (1) |
Accretion |
| 153 | | 143 |
Foreign exchange loss (gain) on U.S. dollar denominated debt and leases |
| 139 | | (14) |
Operational foreign exchange and other |
| (61) | | 30 |
|
| 424 |
| 333 |
7. Earnings Per Common Share
| | Three months ended | ||
($ millions) | | 2026 | | 2025 |
Net earnings |
| 2 100 |
| 1 689 |
|
| | | |
(millions of common shares) |
| | | |
Weighted average number of common shares |
| 1 189 |
| 1 239 |
Dilutive securities: |
| | | |
Effect of share options |
| — |
| 1 |
Weighted average number of diluted common shares |
| 1 189 |
| 1 240 |
|
| | | |
(dollars per common share) |
| | | |
Basic and diluted earnings per share |
| 1.77 |
| 1.36 |
Notes to the Consolidated Financial Statements
8. Share Repurchases
The following table summarizes the share repurchase activities during the period:
| | Three months ended | ||
($ millions, except as noted) | | 2026 | | 2025 |
Share repurchase activities (thousands of common shares) |
| |
| |
Shares repurchased |
| 11 072 |
| 13 600 |
Amounts charged to: |
| | | |
Share capital |
| 190 |
| 232 |
Retained earnings |
| 635 | | 518 |
Share repurchase cost before tax |
| 825 | | 750 |
Retained earnings - share buyback tax payable |
| 14 |
| 13 |
Share repurchase cost |
| 839 |
| 763 |
Under an automatic repurchase plan agreement with an independent broker, the company has recorded the following liability for share repurchases under its normal course issuer bid that may take place during its internal blackout periods:
| | March 31 | | December 31 |
($ millions) | | 2026 | | 2025 |
Amounts charged to: |
| | | |
Share capital |
| 78 |
| 90 |
Retained earnings |
| 339 |
| 229 |
Liability for share purchase commitment |
| 417 |
| 319 |
9. Financial Instruments
Derivative Financial Instruments
(a) Non-Designated Derivative Financial Instruments
The company uses derivative financial instruments, such as physical and financial contracts, to manage certain exposures to fluctuations in interest rates, commodity prices and foreign currency exchange rates, as part of its overall risk management program, as well as for trading purposes.
The changes in the fair value of non-designated derivative assets and (liabilities) are as follows:
($ millions) | | Total |
Fair value outstanding assets at December 31, 2025 |
| 193 |
Changes in fair value recognized in earnings during the period - (loss) |
| (249) |
Contracts realized during the period |
| (116) |
Fair value outstanding (liabilities) at March 31, 2026 |
| (172) |
(b) Fair Value Hierarchy
To estimate the fair value of derivatives, the company uses quoted market prices when available, or third-party models and valuation methodologies that utilize observable market data. In addition to market information, the company incorporates transaction-specific details that market participants would utilize in a fair value measurement, including the impact of non-performance risk. However, these fair value estimates may not necessarily be indicative of the amounts that could be realized or settled in a current market transaction. The company characterizes inputs used in determining fair value using a hierarchy that prioritizes inputs depending on the degree to which they are observable. The three levels of the fair value hierarchy are as follows:
| ● | Level 1 consists of instruments with a fair value determined by an unadjusted quoted price in an active market for identical assets or liabilities. An active market is characterized by readily and regularly available quoted prices where the prices are representative of actual and regularly occurring market transactions to assure liquidity. |
| ● | Level 2 consists of instruments with a fair value that is determined by quoted prices in an inactive market, prices with observable inputs or prices with insignificant non-observable inputs. The fair value of these positions is determined using observable inputs from exchanges, pricing services, third-party independent broker quotes and published transportation tolls. The observable inputs may be adjusted using certain methods, which include extrapolation over the quoted price term and quotes for comparable assets and liabilities. |
| ● | Level 3 consists of instruments with a fair value that is determined by prices with significant unobservable inputs. As at March 31, 2026, the company does not have any derivative instruments measured at fair value Level 3. |
In forming estimates, the company utilizes the most observable inputs available for valuation purposes. If a fair value measurement reflects inputs of different levels within the hierarchy, the measurement is categorized based upon the lowest level of input that is significant to the fair value measurement.
The following table presents the company’s derivative financial instruments measured at fair value for each hierarchy level as at March 31, 2026:
($ millions) | | Level 1 | | Level 2 | | Level 3 | | Total Fair Value |
Accounts receivable |
| 191 | | 150 |
| — |
| 341 |
Accounts payable |
| (417) | | (96) |
| — |
| (513) |
|
| (226) |
| 54 |
| — |
| (172) |
During the first quarter of 2026, there were no transfers between Level 1 and Level 2 fair value measurements.
Non-Derivative Financial Instruments
At March 31, 2026, the carrying value of fixed-term debt accounted for under amortized cost was $10.1 billion (December 31, 2025 – $10.0 billion) and the fair value was $9.9 billion (December 31, 2025 – $9.8 billion). The estimated fair value of long-term debt is based on pricing sourced from market data.
EXHIBIT 99.3
Certification of the President and Chief Executive Officer
CERTIFICATION
I, Richard Kruger, certify that:
| 1. | I have reviewed this quarterly report for the fiscal quarter ended March 31, 2026 of Suncor Energy Inc.; |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report; |
| 4. | The issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a – 15(f) and 15d – 15(f)) for the issuer and have: |
| (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| (b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| (c) | Evaluated the effectiveness of the issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
| (d) | Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the issuer's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and |
| 5. | The issuer's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer's auditors and the audit committee of the issuer's board of directors (or persons performing the equivalent functions): |
| (a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer's ability to record, process, summarize and report financial information; and |
| (b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer's internal control over financial reporting. |
DATE: | May 5, 2026 | | /s/ “Richard Kruger” |
| | Richard Kruger | |
| | President and Chief Executive Officer | |
| | | |
EXHIBIT 99.4
Certification of the Chief Financial Officer
CERTIFICATION
I, Troy Little, certify that:
| 1. | I have reviewed this quarterly report for the fiscal quarter ended March 31, 2026 of Suncor Energy Inc.; |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report; |
| 4. | The issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a – 15(f) and 15d – 15(f)) for the issuer and have: |
| (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| (b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| (c) | Evaluated the effectiveness of the issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
| (d) | Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the issuer's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and |
| 5. | The issuer's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer's auditors and the audit committee of the issuer's board of directors (or persons performing the equivalent functions): |
| (a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer's ability to record, process, summarize and report financial information; and |
| (b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer's internal control over financial reporting. |
DATE: | May 5, 2026 | | /s/ “Troy Little” |
| | Troy Little | |
| | Chief Financial Officer | |
| | | |