Suncor Energy Inc. Q1 FY2026 earnings call

• Safety: First quarter best ever process safety performance. - Upstream: Focus on production, Fort Hills at record, E&P growth, Firebag near record but impacted by natural gas curtailment. - Downstream: High refining throughput, refineries exceeding last year's throughput, product sales record. - Operational improvement: Continuous improvement across board, applying best practices, recognizing and rewarding teams. - Investor Day: Outlined new commitments, long-term oil sands outlook with large reserves, development plans, and value growth. - Fort Hills: Short-term focus on incremental volumes from Syncrude Aurora, longer term focus on opening North Pit 2.

Upstream: First quarter upstream production was 875,000 barrels a day, highest first quarter ever. Fort Hills at record 187,000 barrels a day. E&P at 76,000 barrels a day, 14,000 barrels a day higher year on year. Firebag near record rates at 247,000 barrels a day but impacted by 14,000 - 15,000 barrels a day due to natural gas curtailment. Downstream: Refining throughput 498,000 barrels a day, highest first quarter ever. All four refineries exceeded last year's quarterly throughput. Edmonton maximized distillate and had best ever throughput of 160,000 barrels a day. Montreal introduced jet fuel and had best ever quarter at 155,000 barrels a day. Refining utilization 107% on previous capacity or 97% on new re-rated capacity. Product sales: 681,000 barrels a day, highest quarter ever. Petro Canada retail volumes up 9% year on year.

• Continued focus on operational performance and value creation. - Investor Day commitments including upstream production growth, refining capacity increase, cost reduction, and free funds flow growth. - Confidence in business plan with ability to deliver consistent cash returns to shareholders even in different commodity price environments. - Expectation of driving down unit costs at Fort Hills as building blocks are put in place.

Q: Comment on refined product sales conservativeness and market share.

A: Strategic shift is work in progress, teams aggressively pursue value, higher sales volumes from increased throughput, non-crude inputs, and export opportunities.

Q: Fort Hills unit cost reduction story.

A: Short-term focus on incremental volumes from Syncrude Aurora to support reducing unit costs, longer term focus on opening North Pit 2 expected in first quarter of 2027 to improve unit cost.

Q: Flexibility around base plan to upgrade and improve profitability.

A: Integration allows craft cocktails, e.g., Edmonton refinery with non-crude inputs improving yields and volumes.

Q: Firebag update and long-term implications of current conflict.

A: Spring turnaround going well, looking at ways to improve, continuing to focus on laid-out plans despite current geopolitical environment.

Q: Refinery sales to throughput ratio outlook.

A: Focus on adding value through retail growth, export channels, non-crude inputs, and upgrading value chain.

Q: Net debt timing and release to equity shareholder.

A: Look at expected cash flows and sustainability of buyback, aiming for consistency and not being pro-cyclical.

Q: U.S. refining side and pipeline egress capacity.

A: Supportive of expanding existing pipeline capacities as North America benefits from optimized energy network.

Q: Repeatability of global marketing push.

A: Depends on market opportunity, but have growing logistics capabilities to capture opportunities if market is there.