Suncor Energy, Inc. Q2 FY2024 earnings call

• Turnarounds: Second quarter was the biggest turnaround quarter in 2024, with 80% of annual activity. Turnarounds completed on budget, 10% shorter in duration. Examples include Sarnia ($150M event, $5M under budget), Montreal ($32M event, 13 days ahead of schedule, $7M under budget), and Syncrude (8.3 Coker completed in 57 days, 9 days less than previous best). - Mining: 55 new 400-ton trucks on order, 22 in operation. Fleet conversion to autonomous continues; 70 large haul trucks autonomous in Q2, aiming for 91 by year-end. Autonomous operations expected to save $175M annually by 2026. - In-situ: In-situ operations have back-to-back record quarters, e.g., Firebag up 10,000 barrels a day year-on-year with no growth investment. A $1M modification at Firebag increased bitumen rates by 3,000-5,000 barrels a day. - Cost Management: Total OS&G in first half 2024 was $6.6B, down 4% vs last year. Lower absolute costs despite higher volumes, showing operating leverage.

Upstream: First half upstream production was 803,000 barrels a day, up 61,000 barrels a day (8%) from the first half of last year. Second quarter upstream production was 771,000 barrels per day, including 55,000 barrels per day in the E&P segment. Record second-quarter oil sands production was 716,000 barrels per day, with Firebag at 234,000 barrels per day and Fort Hills at 167,000 barrels per day. Upgrader utilization in the first half was 94%, with the base plant at 99%. Downstream: Second quarter refining utilization was 92%, supporting refined product sales of 595,000 barrels per day. First half refining throughput was 443,000 barrels a day, up 62,000 barrels a day (16%) from the first half of last year. First half refined product sales were 588,000 barrels a day, up 57,000 barrels a day (11%) from the first half of last year.

• Full year guidance: Upstream production, refining throughput, and refined product sales are tracking above the high end of guidance. OS&G and CapEx are tracking within or better than guidance. - Net debt: Tracking toward the $8B target as outlined in Investor Day, with second quarter net debt reduction consistent with plans.

• Market factors: Impact on net debt target and financial performance. - Operational risks: Dependence on asset performance and execution of improvement plans.

Q: Greg Pardy asked about specific examples of turnaround improvements.

A: Shelley Powell and Peter Zebedee discussed risk-based inspection, use of drones, and interconnected asset synergies.

Q: Dennis Fong asked about MineConnect and mining fleet efficiency.

A: Peter Zebedee talked about data transparency, operator scorecards, and truck strategy.

Q: Neil Mehta asked about net debt and working capital.

A: Richard Kruger and Kris Smith discussed asset sales, working capital management, and focus on driving down net debt.

Q: Manav Gupta asked about Fort Hills cash costs and WCS differential.

A: Richard Kruger and Peter Zebedee discussed cost management, autonomous trucks, and WCS outlook.

Q: Roger Read asked about share repurchases and cost structure.

A: Kris Smith and Richard Kruger discussed share repurchase allocation and operating leverage.

Q: Menno Hulshof asked about production uplift and deferred maintenance.

A: Richard Kruger and Peter Zebedee discussed production uplift from turnarounds and integrated production system.