EX-99.2 3 tm258570d3_ex99-2.htm EXHIBIT 99.2 tm258570-1_nonfiling - none - 31.2501521s
 Exhibit 99.2​
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
​ ​ ​ ​
Three months ended
March 31
​
​
($ millions)
​ ​
2025
​ ​
2024
​
​ Revenues and Other Income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​
Gross revenues (note 3)
​ ​ ​
​
13 330
​ ​ ​ ​ ​ 13 305 ​ ​
​
Less: royalties
​ ​ ​ ​ (1 007) ​ ​ ​ ​
​
(924)
 ​ ​
​
Other income (note 4)
​ ​ ​
​
130
​ ​ ​ ​ ​ 148 ​ ​
​ ​ ​ ​ ​ ​ 12 453 ​ ​ ​ ​
​
12 529
 ​ ​
​ Expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​
Purchases of crude oil and products
​ ​ ​
​
4 300
​ ​ ​ ​ ​ 4 358 ​ ​
​
Operating, selling and general
​ ​ ​
​
3 297
​ ​ ​ ​ ​ 3 440 ​ ​
​
Transportation and distribution
​ ​ ​
​
448
​ ​ ​ ​ ​ 410 ​ ​
​
Depreciation, depletion, amortization and impairment
​ ​ ​
​
1 663
​ ​ ​ ​ ​ 1 628 ​ ​
​
Exploration
​ ​ ​
​
122
​ ​ ​ ​ ​ 59 ​ ​
​
Gain on disposal of assets
​ ​ ​
​
—
​ ​ ​ ​ ​ (3) ​ ​
​
Financing expenses (note 6)
​ ​ ​
​
333
​ ​ ​ ​ ​ 417 ​ ​
​ ​ ​ ​ ​ ​ 10 163 ​ ​ ​ ​
​
10 309
 ​ ​
​ Earnings before Income Taxes ​ ​ ​ ​ 2 290 ​ ​ ​ ​
​
2 220
 ​ ​
​ Income Tax Expense (Recovery) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​
Current
​ ​ ​
​
648
​ ​ ​ ​ ​ 649 ​ ​
​
Deferred
​ ​ ​
​
(47)
​ ​ ​ ​ ​ (39) ​ ​
​ ​ ​ ​ ​ ​ 601 ​ ​ ​ ​
​
610
 ​ ​
​ Net Earnings ​ ​ ​ ​ 1 689 ​ ​ ​ ​
​
1 610
 ​ ​
​ Other Comprehensive Income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​
Items That May be Subsequently Reclassified to Earnings:
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​
Foreign currency translation adjustment
​ ​ ​
​
(21)
​ ​ ​ ​ ​ (16) ​ ​
​
Items That Will Not be Reclassified to Earnings:
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​
Actuarial gain on employee retirement benefit plans, net of income taxes
​ ​ ​
​
35
​ ​ ​ ​ ​ 399 ​ ​
​ Other Comprehensive Income ​ ​ ​ ​ 14 ​ ​ ​ ​
​
383
 ​ ​
​ Total Comprehensive Income ​ ​ ​ ​ 1 703 ​ ​ ​ ​
​
1 993
 ​ ​
​ Per Common Share (dollars) (note 7) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​
Net earnings – basic and diluted
​ ​ ​
​
1.36
​ ​ ​ ​ ​ 1.25 ​ ​
​ Cash dividends ​ ​ ​
​
0.57
​ ​ ​ ​ ​ 0.55 ​ ​
See accompanying notes to the condensed interim consolidated financial statements.​
36   2025 First Quarter   Suncor Energy Inc.
CONSOLIDATED BALANCE SHEETS
(unaudited)
​
($ millions)
​ ​
March 31
2025
​ ​
December 31
2024
​
​ Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​
Current assets
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​
Cash and cash equivalents
​ ​ ​
​
2 773
​ ​ ​ ​ ​ 3 484 ​ ​
​
Accounts receivable
​ ​ ​
​
5 379
​ ​ ​ ​ ​ 5 245 ​ ​
​
Inventories
​ ​ ​
​
5 679
​ ​ ​ ​ ​ 5 041 ​ ​
​
Income taxes receivable
​ ​ ​
​
522
​ ​ ​ ​ ​ 518 ​ ​
​
Total current assets
​ ​ ​
​
14 353
​ ​ ​ ​ ​ 14 288 ​ ​
​
Property, plant and equipment, net
​ ​ ​
​
68 280
​ ​ ​ ​ ​ 68 512 ​ ​
​
Exploration and evaluation
​ ​ ​
​
1 742
​ ​ ​ ​ ​ 1 742 ​ ​
​
Other assets
​ ​ ​
​
1 626
​ ​ ​ ​ ​ 1 559 ​ ​
​
Goodwill and other intangible assets
​ ​ ​
​
3 489
​ ​ ​ ​ ​ 3 503 ​ ​
​
Deferred income taxes
​ ​ ​
​
208
​ ​ ​ ​ ​ 180 ​ ​
​
Total assets
​ ​ ​
​
89 698
​ ​ ​ ​ ​ 89 784 ​ ​
​ Liabilities and Shareholders’ Equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​
Current liabilities
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​
Current portion of long-term debt
​ ​ ​
​
997
​ ​ ​ ​ ​ 997 ​ ​
​
Current portion of long-term lease liabilities
​ ​ ​
​
617
​ ​ ​ ​ ​ 599 ​ ​
​
Accounts payable and accrued liabilities
​ ​ ​
​
7 779
​ ​ ​ ​ ​ 8 161 ​ ​
​
Current portion of provisions
​ ​ ​
​
935
​ ​ ​ ​ ​ 958 ​ ​
​
Income taxes payable
​ ​ ​
​
33
​ ​ ​ ​ ​ 32 ​ ​
​
Total current liabilities
​ ​ ​
​
10 361
​ ​ ​ ​ ​ 10 747 ​ ​
​
Long-term debt
​ ​ ​
​
9 335
​ ​ ​ ​ ​ 9 348 ​ ​
​
Long-term lease liabilities
​ ​ ​
​
3 841
​ ​ ​ ​ ​ 3 745 ​ ​
​
Other long-term liabilities
​ ​ ​
​
1 290
​ ​ ​ ​ ​ 1 502 ​ ​
​
Provisions
​ ​ ​
​
12 049
​ ​ ​ ​ ​ 11 931 ​ ​
​
Deferred income taxes
​ ​ ​
​
7 988
​ ​ ​ ​ ​ 7 997 ​ ​
​
Equity
​ ​ ​
​
44 834
​ ​ ​ ​ ​ 44 514 ​ ​
​
Total liabilities and shareholders’ equity
​ ​ ​
​
89 698
​ ​ ​ ​ ​ 89 784 ​ ​
See accompanying notes to the condensed interim consolidated financial statements.​
2025 First Quarter   Suncor Energy Inc.   37
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)​
​ ​ ​ ​
Three months ended
March 31
​
​
($ millions)
​ ​
2025
​ ​
2024
​
​ Operating Activities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ Net Earnings ​ ​ ​
​
1 689
​ ​ ​ ​ ​ 1 610 ​ ​
​ Adjustments for: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​
Depreciation, depletion, amortization and impairment
​ ​ ​
​
1 663
​ ​ ​ ​ ​ 1 628 ​ ​
​
Deferred income tax recovery
​ ​ ​
​
(47)
​ ​ ​ ​ ​ (39) ​ ​
​
Accretion (note 6)
​ ​ ​
​
143
​ ​ ​ ​ ​ 145 ​ ​
​
Unrealized foreign exchange (gain) loss on U.S. dollar denominated debt (note 6)
​ ​ ​
​
(14)
​ ​ ​ ​ ​ 220 ​ ​
​
Change in fair value of financial instruments and trading inventory
​ ​ ​
​
(57)
​ ​ ​ ​ ​ 30 ​ ​
​
Gain on disposal of assets
​ ​ ​
​
—
​ ​ ​ ​ ​ (3) ​ ​
​
Share-based compensation
​ ​ ​
​
(303)
​ ​ ​ ​ ​ (374) ​ ​
​
Settlement of decommissioning and restoration liabilities
​ ​ ​
​
(94)
​ ​ ​ ​ ​ (123) ​ ​
​
Other
​ ​ ​
​
65
​ ​ ​ ​ ​ 75 ​ ​
​
Increase in non-cash working capital
​ ​ ​
​
(889)
​ ​ ​ ​ ​ (382) ​ ​
​ Cash flow provided by operating activities ​ ​ ​
​
2 156
​ ​ ​ ​ ​ 2 787 ​ ​
​ Investing Activities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ Capital and exploration expenditures ​ ​ ​
​
(1 145)
​ ​ ​ ​ ​ (1 311) ​ ​
​ Proceeds from disposal of assets ​ ​ ​
​
—
​ ​ ​ ​ ​ 8 ​ ​
​ Other investments ​ ​ ​
​
(6)
​ ​ ​ ​ ​ (1) ​ ​
​ Increase in non-cash working capital ​ ​ ​
​
(104)
​ ​ ​ ​ ​ (31) ​ ​
​ Cash flow used in investing activities ​ ​ ​
​
(1 255)
​ ​ ​ ​ ​ (1 335) ​ ​
​ Financing Activities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ Net increase in short-term debt ​ ​ ​
​
—
​ ​ ​ ​ ​ 221 ​ ​
​ Lease liability payments ​ ​ ​
​
(180)
​ ​ ​ ​ ​ (98) ​ ​
​ Issuance of common shares under share option plans ​ ​ ​
​
75
​ ​ ​ ​ ​ 130 ​ ​
​ Repurchase of common shares(1) (note 8) ​ ​ ​
​
(798)
​ ​ ​ ​ ​ (293) ​ ​
​ Distributions relating to non-controlling interest ​ ​ ​
​
(4)
​ ​ ​ ​ ​ (4) ​ ​
​ Dividends paid on common shares ​ ​ ​
​
(705)
​ ​ ​ ​ ​ (702) ​ ​
​
Cash flow used in financing activities
​ ​ ​ ​ (1 612) ​ ​ ​ ​
​
(746)
 ​ ​
​ (Decrease) Increase in Cash and Cash Equivalents ​ ​ ​ ​ (711) ​ ​ ​ ​
​
706
 ​ ​
​ Effect of foreign exchange on cash and cash equivalents ​ ​ ​
​
—
​ ​ ​ ​ ​ 29 ​ ​
​ Cash and cash equivalents at beginning of period ​ ​ ​
​
3 484
​ ​ ​ ​ ​ 1 729 ​ ​
​ Cash and Cash Equivalents at End of Period ​ ​ ​ ​ 2 773 ​ ​ ​ ​
​
2 464
 ​ ​
​ Supplementary Cash Flow Information ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ Interest paid ​ ​ ​
​
148
​ ​ ​ ​ ​ 136 ​ ​
​ Income taxes paid ​ ​ ​
​
604
​ ​ ​ ​ ​ 25 ​ ​
​
(1)
Includes $48 million of taxes paid on 2024 share repurchases for the three months ended March 31, 2025.
​
See accompanying notes to the condensed interim consolidated financial statements.​
38   2025 First Quarter   Suncor Energy Inc.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(unaudited)
​
($ millions)
​ ​
Share
Capital
​ ​
Contributed
Surplus
​ ​
Accumulated
Other
Comprehensive
Income
​ ​
Retained
Earnings
​ ​
Total
​ ​ ​
Number of
Common
Shares
(thousands)
​
​ At December 31, 2023 ​ ​ ​ ​ 21 661 ​ ​ ​ ​ ​ 569 ​ ​ ​ ​ ​ 1 048 ​ ​ ​ ​ ​ 20 001 ​ ​ ​ ​ ​ 43 279 ​ ​ ​ ​ ​ ​ 1 290 100 ​ ​
​ Net earnings ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 1 610 ​ ​ ​ ​ ​ 1 610 ​ ​ ​ ​ ​ ​ — ​ ​
​ Foreign currency translation adjustment ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (16) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (16) ​ ​ ​ ​ ​ ​ — ​ ​
​
Actuarial gain on employee retirement benefit plans,
net of income taxes of $126
​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 399 ​ ​ ​ ​ ​ 399 ​ ​ ​ ​ ​ ​ — ​ ​
​ Total comprehensive income ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (16) ​ ​ ​ ​ ​ 2 009 ​ ​ ​ ​ ​ 1 993 ​ ​ ​ ​ ​ ​ — ​ ​
​ Issued under share option plans ​ ​ ​ ​ 151 ​ ​ ​ ​ ​ (21) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 130 ​ ​ ​ ​ ​ ​ 3 352 ​ ​
​
Repurchase of common shares for cancellation (note 8)
​ ​ ​ ​ (108) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (185) ​ ​ ​ ​ ​ (293) ​ ​ ​ ​ ​ ​ (6 438) ​ ​
​
Change in liability for share repurchase commitment
​ ​ ​ ​ (25) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (77) ​ ​ ​ ​ ​ (102) ​ ​ ​ ​ ​ ​ — ​ ​
​ Share-based compensation ​ ​ ​ ​ — ​ ​ ​ ​ ​ 3 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 3 ​ ​ ​ ​ ​ ​ — ​ ​
​ Dividends paid on common shares ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (702) ​ ​ ​ ​ ​ (702) ​ ​ ​ ​ ​ ​ — ​ ​
​ At March 31, 2024 ​ ​ ​ ​ 21 679 ​ ​ ​ ​ ​ 551 ​ ​ ​ ​ ​ 1 032 ​ ​ ​ ​ ​ 21 046 ​ ​ ​ ​ ​ 44 308 ​ ​ ​ ​ ​ ​ 1 287 014 ​ ​
​ 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,
net of income taxes of $11
​ ​ ​
​
—
 ​ ​ ​ ​
​
—
 ​ ​ ​ ​
​
—
 ​ ​ ​ ​
​
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) (note 8)
​ ​ ​
​
(232)
 ​ ​ ​ ​
​
—
 ​ ​ ​ ​
​
—
 ​ ​ ​ ​
​
(531)
 ​ ​ ​ ​
​
(763)
 ​ ​ ​ ​ ​
​
(13 600)
 ​ ​
​
Change in liability for share repurchase commitment
(note 8)
​ ​ ​
​
10
 ​ ​ ​ ​
​
—
 ​ ​ ​ ​
​
—
 ​ ​ ​ ​
​
(4)
 ​ ​ ​ ​
​
6
 ​ ​ ​ ​ ​
​
—
 ​ ​
​ Share-based compensation (note 5) ​ ​ ​
​
—
 ​ ​ ​ ​
​
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 ​ ​
​
(1)
Includes $13 million of taxes on share repurchases for the three months ended March 31, 2025 (March 31, 2024 – nil).
​
See accompanying notes to the condensed interim consolidated financial statements.
2025 First Quarter   Suncor Energy Inc.   39
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 include oil sands development, production and upgrading; offshore oil production; petroleum refining in Canada and the U.S.; and the company’s Petro-Canada™ retail and wholesale distribution networks (including Canada’s Electric Highway™, a coast-to-coast network of fast-charging EV stations). Suncor is developing petroleum resources while advancing the transition to a lower-emissions future through investments in lower emissions intensity power, renewable feedstock fuels and projects targeting emissions intensity. Suncor also conducts energy trading activities focused primarily on the marketing and trading of crude oil, natural gas, byproducts, refined products and power. Suncor’s common shares (symbol: SU) are listed on the TSX and NYSE.
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, and have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting. They are condensed as they 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, 2024.
(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, 2024.
(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, 2024.
In March 2025, the government of the United States of America announced tariffs on certain goods and products. Several countries (including Canada) responded with an escalation in tariffs and/or retaliatory tariffs. This has resulted in economic uncertainty in the global markets, disruption of supply chains, international competitiveness and fluctuations in commodity pricing. The company is closely monitoring these developments and will continue to assess the impacts of such tariffs and measures as the situation develops.
(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.
40   2025 First Quarter   Suncor Energy Inc.
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.
​
Three months ended March 31
​ ​
Oil Sands
​ ​
Exploration and
Production
​ ​
Refining and
Marketing
​ ​
Corporate and
Eliminations
​ ​
Total
​
​
($ millions)
​ ​
2025
​ ​
2024
​ ​
2025
​ ​
2024
​ ​
2025
​ ​
2024
​ ​
2025
​ ​
2024
​ ​
2025
​ ​
2024
​
​ Revenues and Other Income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ Gross revenues ​ ​ ​
​
4 990
​ ​ ​ ​ ​ 4 938 ​ ​ ​ ​
​
729
​ ​ ​ ​ ​ 765 ​ ​ ​ ​
​
7 611
​ ​ ​ ​ ​ 7 603 ​ ​ ​ ​
​
—
​ ​ ​ ​ ​ (1) ​ ​ ​ ​
​
13 330
​ ​ ​ ​ ​ 13 305 ​ ​
​ Intersegment revenues ​ ​ ​
​
2 151
​ ​ ​ ​ ​ 1 984 ​ ​ ​ ​
​
—
​ ​ ​ ​ ​ — ​ ​ ​ ​
​
17
​ ​ ​ ​ ​ 10 ​ ​ ​ ​
​
(2 168)
​ ​ ​ ​ ​ (1 994) ​ ​ ​ ​
​
—
​ ​ ​ ​ ​ — ​ ​
​
Less: Royalties
​ ​ ​ ​ (815) ​ ​ ​ ​
​
(782)
 ​ ​ ​ ​ ​ (192) ​ ​ ​ ​
​
(142)
 ​ ​ ​ ​ ​ — ​ ​ ​ ​
​
—
 ​ ​ ​ ​ ​ — ​ ​ ​ ​
​
—
 ​ ​ ​ ​ ​ (1 007) ​ ​ ​ ​
​
(924)
 ​ ​
​ Operating revenues, net of royalties ​ ​ ​
​
6 326
​ ​ ​ ​ ​ 6 140 ​ ​ ​ ​
​
537
​ ​ ​ ​ ​ 623 ​ ​ ​ ​
​
7 628
​ ​ ​ ​ ​ 7 613 ​ ​ ​ ​
​
(2 168)
​ ​ ​ ​ ​ (1 995) ​ ​ ​ ​
​
12 323
​ ​ ​ ​ ​ 12 381 ​ ​
​ Other income (loss) ​ ​ ​
​
98
​ ​ ​ ​ ​ 55 ​ ​ ​ ​
​
5
​ ​ ​ ​ ​ 6 ​ ​ ​ ​
​
(12)
​ ​ ​ ​ ​ 74 ​ ​ ​ ​
​
39
​ ​ ​ ​ ​ 13 ​ ​ ​ ​
​
130
​ ​ ​ ​ ​ 148 ​ ​
​ ​ ​ ​ ​ ​ 6 424 ​ ​ ​ ​
​
6 195
 ​ ​ ​ ​ ​ 542 ​ ​ ​ ​
​
629
 ​ ​ ​ ​ ​ 7 616 ​ ​ ​ ​
​
7 687
 ​ ​ ​ ​ ​ (2 129) ​ ​ ​ ​
​
(1 982)
 ​ ​ ​ ​ ​ 12 453 ​ ​ ​ ​
​
12 529
 ​ ​
​ Expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ Purchases of crude oil and products ​ ​ ​
​
609
​ ​ ​ ​ ​ 629 ​ ​ ​ ​
​
—
​ ​ ​ ​ ​ — ​ ​ ​ ​
​
5 922
​ ​ ​ ​ ​ 5 588 ​ ​ ​ ​
​
(2 231)
​ ​ ​ ​ ​ (1 859) ​ ​ ​ ​
​
4 300
​ ​ ​ ​ ​ 4 358 ​ ​
​ Operating, selling and general ​ ​ ​
​
2 392
​ ​ ​ ​ ​ 2 482 ​ ​ ​ ​
​
120
​ ​ ​ ​ ​ 141 ​ ​ ​ ​
​
609
​ ​ ​ ​ ​ 618 ​ ​ ​ ​
​
176
​ ​ ​ ​ ​ 199 ​ ​ ​ ​
​
3 297
​ ​ ​ ​ ​ 3 440 ​ ​
​ Transportation and distribution ​ ​ ​
​
296
​ ​ ​ ​ ​ 292 ​ ​ ​ ​
​
22
​ ​ ​ ​ ​ 25 ​ ​ ​ ​
​
139
​ ​ ​ ​ ​ 103 ​ ​ ​ ​
​
(9)
​ ​ ​ ​ ​ (10) ​ ​ ​ ​
​
448
​ ​ ​ ​ ​ 410 ​ ​
​
Depreciation, depletion, amortization and impairment
​ ​ ​
​
1 199
​ ​ ​ ​ ​ 1 185 ​ ​ ​ ​
​
171
​ ​ ​ ​ ​ 170 ​ ​ ​ ​
​
257
​ ​ ​ ​ ​ 244 ​ ​ ​ ​
​
36
​ ​ ​ ​ ​ 29 ​ ​ ​ ​
​
1 663
​ ​ ​ ​ ​ 1 628 ​ ​
​ Exploration ​ ​ ​
​
68
​ ​ ​ ​ ​ 57 ​ ​ ​ ​
​
54
​ ​ ​ ​ ​ 2 ​ ​ ​ ​
​
—
​ ​ ​ ​ ​ — ​ ​ ​ ​
​
—
​ ​ ​ ​ ​ — ​ ​ ​ ​
​
122
​ ​ ​ ​ ​ 59 ​ ​
​ Gain on disposal of assets ​ ​ ​
​
—
​ ​ ​ ​ ​ — ​ ​ ​ ​
​
—
​ ​ ​ ​ ​ — ​ ​ ​ ​
​
—
​ ​ ​ ​ ​ — ​ ​ ​ ​
​
—
​ ​ ​ ​ ​ (3) ​ ​ ​ ​
​
—
​ ​ ​ ​ ​ (3) ​ ​
​ Financing expenses ​ ​ ​
​
185
​ ​ ​ ​ ​ 179 ​ ​ ​ ​
​
17
​ ​ ​ ​ ​ 17 ​ ​ ​ ​
​
17
​ ​ ​ ​ ​ 20 ​ ​ ​ ​
​
114
​ ​ ​ ​ ​ 201 ​ ​ ​ ​
​
333
​ ​ ​ ​ ​ 417 ​ ​
​ ​ ​ ​ ​ ​ 4 749 ​ ​ ​ ​
​
4 824
 ​ ​ ​ ​ ​ 384 ​ ​ ​ ​
​
355
 ​ ​ ​ ​ ​ 6 944 ​ ​ ​ ​
​
6 573
 ​ ​ ​ ​ ​ (1 914) ​ ​ ​ ​
​
(1 443)
 ​ ​ ​ ​ ​ 10 163 ​ ​ ​ ​
​
10 309
 ​ ​
​
Earnings (Loss) before
Income Taxes
​ ​ ​
​
1 675
​ ​ ​ ​ ​ 1 371 ​ ​ ​ ​
​
158
​ ​ ​ ​ ​ 274 ​ ​ ​ ​
​
672
​ ​ ​ ​ ​ 1 114 ​ ​ ​ ​
​
(215)
​ ​ ​ ​ ​ (539) ​ ​ ​ ​
​
2 290
​ ​ ​ ​ ​ 2 220 ​ ​
​ Income Tax Expense (Recovery) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ Current ​ ​ ​
​
—
​ ​ ​ ​ ​ — ​ ​ ​ ​
​
—
​ ​ ​ ​ ​ — ​ ​ ​ ​
​
—
​ ​ ​ ​ ​ — ​ ​ ​ ​
​
—
​ ​ ​ ​ ​ — ​ ​ ​ ​
​
648
​ ​ ​ ​ ​ 649 ​ ​
​ Deferred ​ ​ ​
​
—
​ ​ ​ ​ ​ — ​ ​ ​ ​
​
—
​ ​ ​ ​ ​ — ​ ​ ​ ​
​
—
​ ​ ​ ​ ​ — ​ ​ ​ ​
​
—
​ ​ ​ ​ ​ — ​ ​ ​ ​
​
(47)
​ ​ ​ ​ ​ (39) ​ ​
​ ​ ​ ​ ​ ​ — ​ ​ ​ ​
​
—
 ​ ​ ​ ​ ​ — ​ ​ ​ ​
​
—
 ​ ​ ​ ​ ​ — ​ ​ ​ ​
​
—
 ​ ​ ​ ​ ​ — ​ ​ ​ ​
​
—
 ​ ​ ​ ​ ​ 601 ​ ​ ​ ​
​
610
 ​ ​
​ Net Earnings ​ ​ ​ ​ — ​ ​ ​ ​
​
—
 ​ ​ ​ ​ ​ — ​ ​ ​ ​
​
—
 ​ ​ ​ ​ ​ — ​ ​ ​ ​
​
—
 ​ ​ ​ ​ ​ — ​ ​ ​ ​
​
—
 ​ ​ ​ ​ ​ 1 689 ​ ​ ​ ​
​
1 610
 ​ ​
​
Capital and Exploration Expenditures
​ ​ ​ ​ 749 ​ ​ ​ ​
​
995
 ​ ​ ​ ​ ​ 209 ​ ​ ​ ​
​
142
 ​ ​ ​ ​ ​ 180 ​ ​ ​ ​
​
168
 ​ ​ ​ ​ ​ 7 ​ ​ ​ ​
​
6
 ​ ​ ​ ​ ​ 1 145 ​ ​ ​ ​
​
1 311
 ​ ​
2025 First Quarter   Suncor Energy Inc.   41
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
​ ​
2025
​ ​
2024
​
​
($ millions)
​ ​
North America
​ ​
International
​ ​
Total
​ ​
North America
​ ​
International
​ ​
Total
​
​ Oil Sands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​
Synthetic crude oil and diesel
​ ​ ​
​
4 856
​ ​ ​ ​
​
—
​ ​ ​ ​
​
4 856
​ ​ ​ ​ ​ 4 860 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 4 860 ​ ​
​
Bitumen
​ ​ ​
​
2 285
​ ​ ​ ​
​
—
​ ​ ​ ​
​
2 285
​ ​ ​ ​ ​ 2 062 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 2 062 ​ ​
​ ​ ​ ​ ​ ​ 7 141 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 7 141 ​ ​ ​ ​
​
6 922
 ​ ​ ​ ​
​
—
 ​ ​ ​ ​
​
6 922
 ​ ​
​ Exploration and Production ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​
Crude oil and natural gas liquids
​ ​ ​
​
470
​ ​ ​ ​
​
259
​ ​ ​ ​
​
729
​ ​ ​ ​ ​ 609 ​ ​ ​ ​ ​ 156 ​ ​ ​ ​ ​ 765 ​ ​
​ ​ ​ ​ ​ ​ 470 ​ ​ ​ ​ ​ 259 ​ ​ ​ ​ ​ 729 ​ ​ ​ ​
​
609
 ​ ​ ​ ​
​
156
 ​ ​ ​ ​
​
765
 ​ ​
​ Refining and Marketing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​
Gasoline
​ ​ ​
​
3 248
​ ​ ​ ​
​
—
​ ​ ​ ​
​
3 248
​ ​ ​ ​ ​ 2 990 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 2 990 ​ ​
​
Distillate
​ ​ ​
​
3 747
​ ​ ​ ​
​
—
​ ​ ​ ​
​
3 747
​ ​ ​ ​ ​ 3 961 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 3 961 ​ ​
​
Other
​ ​ ​
​
633
​ ​ ​ ​
​
—
​ ​ ​ ​
​
633
​ ​ ​ ​ ​ 662 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 662 ​ ​
​ ​ ​ ​ ​ ​ 7 628 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 7 628 ​ ​ ​ ​
​
7 613
 ​ ​ ​ ​
​
—
 ​ ​ ​ ​
​
7 613
 ​ ​
​ Corporate and Eliminations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ (2 168) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (2 168) ​ ​ ​ ​
​
(1 995)
 ​ ​ ​ ​
​
—
 ​ ​ ​ ​
​
(1 995)
 ​ ​
​
Total Revenue from Contracts with Customers
​ ​ ​ ​ 13 071 ​ ​ ​ ​ ​ 259 ​ ​ ​ ​ ​ 13 330 ​ ​ ​ ​
​
13 149
 ​ ​ ​ ​
​
156
 ​ ​ ​ ​
​
13 305
 ​ ​
4. OTHER INCOME
Other income consists of the following:
​ ​ ​ ​
Three months ended
March 31
​
​
($ millions)
​ ​
2025
​ ​
2024
​
​ Energy trading and risk management ​ ​ ​
​
69
​ ​ ​ ​ ​ 56 ​ ​
​ Investment and interest income ​ ​ ​
​
56
​ ​ ​ ​ ​ 39 ​ ​
​ Insurance proceeds and other ​ ​ ​
​
5
​ ​ ​ ​ ​ 53 ​ ​
​ ​ ​ ​ ​ ​ 130 ​ ​ ​ ​
​
148
 ​ ​
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
March 31
​
​
($ millions)
​ ​
2025
​ ​
2024
​
​ Equity-settled plans ​ ​ ​
​
4
​ ​ ​ ​ ​ 3 ​ ​
​ Cash-settled plans ​ ​ ​
​
141
​ ​ ​ ​ ​ 156 ​ ​
​ ​ ​ ​ ​ ​ 145 ​ ​ ​ ​
​
159
 ​ ​
42   2025 First Quarter   Suncor Energy Inc.
6. FINANCING EXPENSES
​ ​ ​ ​
Three months ended
March 31
​
​
($ millions)
​ ​
2025
​ ​
2024
​
​ Interest on debt ​ ​ ​
​
148
​ ​ ​ ​ ​ 181 ​ ​
​ Interest on lease liabilities ​ ​ ​
​
73
​ ​ ​ ​ ​ 56 ​ ​
​ Capitalized interest ​ ​ ​
​
(58)
​ ​ ​ ​ ​ (74) ​ ​
​
Interest expense
​ ​ ​
​
163
​ ​ ​ ​ ​ 163 ​ ​
​
Interest on partnership liability
​ ​ ​
​
12
​ ​ ​ ​ ​ 12 ​ ​
​
Interest on pension and other post-retirement benefits
​ ​ ​
​
(1)
​ ​ ​ ​ ​ 6 ​ ​
​
Accretion
​ ​ ​
​
143
​ ​ ​ ​ ​ 145 ​ ​
​
Foreign exchange (gain) loss on U.S. dollar denominated debt and leases
​ ​ ​
​
(14)
​ ​ ​ ​ ​ 220 ​ ​
​
Operational foreign exchange and other
​ ​ ​
​
30
​ ​ ​ ​ ​ (129) ​ ​
​ ​ ​ ​ ​ ​ 333 ​ ​ ​ ​
​
417
 ​ ​
7. EARNINGS PER COMMON SHARE
​ ​ ​ ​
Three months ended
March 31
​
​
($ millions)
​ ​
2025
​ ​
2024
​
​ Net earnings ​ ​ ​
​
1 689
​ ​ ​ ​ ​ 1 610 ​ ​
​ (millions of common shares)​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ Weighted average number of common shares ​ ​ ​
​
1 239
​ ​ ​ ​ ​ 1 288 ​ ​
​ Dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​
Effect of share options
​ ​ ​
​
1
​ ​ ​ ​ ​ 2 ​ ​
​ Weighted average number of diluted common shares ​ ​ ​
​
1 240
​ ​ ​ ​ ​ 1 290 ​ ​
​ (dollars per common share)​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ Basic and diluted earnings per share ​ ​ ​
​
1.36
​ ​ ​ ​ ​ 1.25 ​ ​
8. NORMAL COURSE ISSUER BID
Share Repurchase Programs
​
(thousands of common shares)
​ ​
Commencement
Date
​ ​
Expiry
​ ​
Maximum
Shares for
Repurchase
​ ​
Maximum
Shares for
Repurchase (%)
​ ​
Number of
Shares
Repurchased
​
​ 2023 Normal Course Issuer Bid ​ ​
February 17, 2023
​ ​
February 16, 2024
​ ​ ​ ​ 132 900 ​ ​ ​ ​ ​ 10 ​ ​ ​ ​ ​ 47 107 ​ ​
​ 2024 Normal Course Issuer Bid ​ ​
February 26, 2024
​ ​
February 25, 2025
​ ​ ​ ​ 128 700 ​ ​ ​ ​ ​ 10 ​ ​ ​ ​ ​ 61 066 ​ ​
​ 2025 Normal Course Issuer Bid ​ ​
March 3, 2025
​ ​
March 2, 2026
​ ​ ​ ​ 123 800 ​ ​ ​ ​ ​ 10 ​ ​ ​ ​ ​ 4 650 ​ ​
2025 First Quarter   Suncor Energy Inc.   43
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The following table summarizes the share repurchase activities during the period: mmarizes the share repurchase activities during the period:
​ ​ ​ ​
Three months ended
March 31
​
​
($ millions, except as noted)
​ ​
2025
​ ​
2024
​
​ Share repurchase activities (thousands of common shares) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​
Shares repurchased
​ ​ ​
​
13 600
​ ​ ​ ​ ​ 6 438 ​ ​
​ Amounts charged to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​
Share capital
​ ​ ​
​
232
​ ​ ​ ​ ​ 108 ​ ​
​
Retained earnings
​ ​ ​
​
518
​ ​ ​ ​ ​ 185 ​ ​
​ Share repurchase cost before tax ​ ​ ​
​
750
​ ​ ​ ​ ​ 293 ​ ​
​
Retained earnings – share buyback tax payable
​ ​ ​
​
13
​ ​ ​ ​ ​ — ​ ​
​ Share repurchase cost ​ ​ ​
​
763
​ ​ ​ ​ ​ 293 ​ ​
Under an automatic repurchase plan agreement with an independent broker, the company has recorded the following liability for share repurchases that may take place during its internal blackout periods:
​
($ millions)
​ ​
March 31
2025
​ ​
December 31
2024
​
​ Amounts charged to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​
Share capital
​ ​ ​
​
94
​ ​ ​ ​ ​ 104 ​ ​
​
Retained earnings
​ ​ ​
​
213
​ ​ ​ ​ ​ 209 ​ ​
​ Liability for share purchase commitment ​ ​ ​
​
307
​ ​ ​ ​ ​ 313 ​ ​
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 derivatives are as follows:
​
($ millions)
​ ​
Total
​
​ Fair value outstanding at December 31, 2024 ​ ​ ​ ​ 82 ​ ​
​
Changes in fair value recognized in earnings during the period
​ ​ ​ ​ 37 ​ ​
​
Cash settlements – (received) paid during the period
​ ​ ​ ​ (20) ​ ​
​ Fair value outstanding at March 31, 2025 ​ ​ ​ ​ 99 ​ ​
44   2025 First Quarter   Suncor Energy Inc.
(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, 2025, 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, 2025:
​
($ millions)
​ ​
Level 1
​ ​
Level 2
​ ​
Level 3
​ ​
Total Fair Value
​
​ Accounts receivable ​ ​ ​ ​ 73 ​ ​ ​ ​ ​ 124 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 197 ​ ​
​ Accounts payable ​ ​ ​ ​ (72) ​ ​ ​ ​ ​ (26) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (98) ​ ​
​ ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ 98 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 99 ​ ​
During the first quarter of 2025, there were no transfers between Level 1 and Level 2 fair value measurements.
Non-Derivative Financial Instruments
At March 31, 2025, the carrying value of fixed-term debt accounted for under amortized cost was $10.3 billion (December 31, 2024 – $10.3 billion) and the fair value was $10.2 billion (December 31, 2024 – $10.1 billion). The estimated fair value of long-term debt is based on pricing sourced from market data.