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A month has gone by since the last earnings report for Suncor Energy (SU - Free Report) . Shares have added about 8.9% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Suncor Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

Suncor Energy Q2 Earnings & Revenues Beat Estimates, Rise Y/YSuncor Energy reported second-quarter 2026 adjusted operating earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.14 by 8.9%. Moreover, the bottom line increased significantly from the year-ago quarter’s reported figure of 51 cents. The outperformance was driven by stronger downstream margins, higher upstream price realizations and increased refined product sales volumes.

The Calgary, Alberta-based integrated oil and gas company’s operating revenues of $12.7 billion beat the Zacks Consensus Estimate of $10.3 billion by 22.4%. The top line also increased approximately 47.3% year over year, aided by record refined product sales, higher refinery production and stronger benchmark crack spreads.

Suncor Energy’s board of directors declared a quarterly dividend of 60 Canadian cents per share for its common shareholders of record as of Sept. 4, 2026. The payout, which remains unchanged from the previous quarter, will be made on Sept. 25.

During the quarter, the company distributed a total of C$1.8 billion to its shareholders, including over C$1 billion in share repurchases and over C$700 million in dividends. It generated C$5.3 billion in adjusted funds from operations and C$4 billion in free cash flow.

During the second quarter, Suncor Energy delivered upstream production of 760,900 barrels per day (bbls/d), down from 808,100 bbls/d in the year-ago quarter. However, refining throughput reached a second-quarter record of 470,600 bbls/d, compared with 442,300 bbls/d a year earlier, while refined product sales rose to 654,800 bbls/d from 600,500 bbls/d in the prior-year period.

Segmental PerformanceUpstream: The company recorded a total production of 760,900 bbls/d, down from 808,100 bbls/d in the year-ago quarter. However, the figure beat the consensus estimate of 755,000 bbls/d.

Total Oil Sands production was 690,100 bbls/d, down from 748,400 bbls/d in the year-ago quarter. Total Oil Sands bitumen production was 815,200 bbls/d, compared with 860,800 bbls/d in the prior-year period. This decrease was caused by the planned turnaround at Firebag.

Net synthetic crude oil and diesel production increased to 482,200 bbls/d from 438,200 bbls/d a year earlier, driven by fewer maintenance activities in the current quarter. Non-upgraded bitumen production decreased to 207,900 bbls/d from 310,200 bbls/d, primarily due to increased upgrader availability and decreased bitumen production.

Oil Sands adjusted operating earnings were C$2.6 billion, up from C$926 million in the prior-year quarter, backed by increased price realizations.

Exploration and Production (E&P) production rose to 70,800 bbls/d from 59,700 bbls/d in the year-ago period, driven by strong production across assets. Adjusted operating earnings in the segment increased to C$465 million from C$165 million, primarily driven by higher sales volumes and stronger price realizations.

Downstream: The segment was the key driver of the quarter’s strength. Refining and Marketing adjusted operating earnings surged to C$2.1 billion from C$404 million in the prior-year quarter, primarily fueled by higher benchmark crack spreads, a FIFO inventory valuation gain and increased refinery production and sales volumes. Refinery utilization was 92%, up from 87% in the prior-year quarter, reflecting Suncor Energy’s increased refining network nameplate capacity of 511,000 bbls/d.

Refined product sales climbed to 654,800 bbls/d, a 9% increase from 600,500 bbls/d in the prior-year quarter, supported by global market opportunities, including record jet fuel sales, while also delivering more domestic volumes through high-value retail channels. Moreover, the figure beat the consensus estimate of 596,000 bbls/d.

Financial PositionTotal expenses increased 20% to C$12.6 billion from the prior-year quarter. The cost of purchases of crude oil and products increased to C$6.4 billion in the second quarter of 2026, compared with C$5.1 billion in the prior-year quarter. Operating, selling and general expenses increased 8.1% to C$3.4 billion from the prior-year quarter, and Exploration expenses increased to C$17 million compared with C$4 million in the previous-year quarter.

Suncor Energy generated C$5.3 billion in adjusted funds from operations, up from C$2.7 billion in the prior-year quarter. Free funds flow increased to almost C$4 billion from C$981 million. The company returned nearly C$1.8 billion to its shareholders, including C$1 billion in share repurchases and over C$700 million in dividends.

Capital expenditures totaled C$1.3 billion, decreasing from the year-ago quarter of C$1.6 billion. As of June 30, 2026, Suncor Energy had cash and cash equivalents of C$5.4 billion and long-term debt of C$9.2 billion. Its debt-to-capitalization was 16%.

Guidance and Shareholder ReturnsSuncor Energy’s 2026 corporate guidance targets total production of 840,000-870,000 bbl/d, including 785,000-810,000 bbl/d from Oil Sands and 55,000-60,000 bbl/d from Exploration and Production. Refinery throughput is expected at 460,000-475,000 bbl/d, with utilization of 90%-93% and refined product sales of 600,000-620,000 bbl/d. Capital expenditures are guided at C$5.6-C$5.8 billion, led by C$3.8-C$3.9 billion for Oil Sands. Cash operating costs are expected at C$26-C$29/bbl for Oil Sands operations, C$33-C$36/bbl at Fort Hills and C$34-C$37/bbl at Syncrude. The guidance assumes Brent at $87/bbl and WTI at $80/bbl, while the company highlights operational reliability, maintenance execution, commodity prices and infrastructure as key factors that could affect results.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 39.17% due to these changes.

VGM ScoresCurrently, Suncor Energy has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock has a score of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Suncor Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerSuncor Energy is part of the Zacks Oil and Gas - Integrated - Canadian industry. Over the past month, Cenovus Energy (CVE - Free Report) , a stock from the same industry, has gained 18.3%. The company reported its results for the quarter ended June 2026 more than a month ago.

Cenovus reported revenues of $12.59 billion in the last reported quarter, representing a year-over-year change of +41.4%. EPS of $1.11 for the same period compares with $0.33 a year ago.

Cenovus is expected to post earnings of $0.83 per share for the current quarter, representing a year-over-year change of +59.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

Cenovus has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.

3 Overlooked Energy ETFs Delivering Strong Returns and IncomeSuncor Energy NYSE: SU said its second-quarter results reflected the completion of major maintenance work and record cash generation, despite unusually severe weather that reduced mining productivity in the Fort McMurray region.

President and Chief Executive Officer Rich Kruger said record rainfall and snow melt during the quarter, with precipitation 50% above the 10-year average and the highest in more than 30 years, affected mining operations. The company estimated the weather reduced second-quarter production by 50,000 to 60,000 barrels per day.

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It's Time to Take Profits on These 2 Overbought Energy StocksUpstream production averaged 761,000 barrels per day in the quarter. However, Kruger said operations had returned to expected rates by late in the second quarter, with preliminary July production of about 870,000 barrels per day, which would represent Suncor's second-highest July output on record.

Weather response and maintenance execution Management said it is incorporating lessons from the weather event into mine planning and operations. Measures include 48- and 72-hour weather outlooks, ore stockpiles in vulnerable areas, pre-securing materials and equipment such as gravel and graders, and using drones to monitor mine conditions in real time.

3 Stocks Built for America’s Affordable Housing RealityPeter Zebedee, executive vice president of upstream, said the company has also advanced its autonomous-haulage “mud mode” software. He said slippage events have fallen 80% from the initial version of the system.

Suncor completed a major Firebag turnaround involving its Plants 93 and 94, which together process roughly two-thirds of Firebag's 250,000-barrel-per-day capacity. The company completed the work in 44 days at a cost of C$118 million, compared with 58 days and C$150 million for a similar turnaround in 2022.

Kruger said the turnaround's production impact was 60,000 barrels per day in the second quarter, 25,000 barrels per day better than the company had planned. The work also extended the next planned turnaround cycle for the two plants to five years from four years historically.

At Base Plant, the U2 Coker turnaround was completed in 46 days, compared with 60 days in 2021, at a cost of C$203 million, down from C$225 million for the prior event. Commerce City refinery maintenance took 50 days, compared with 74 days in 2021.

The company said it remains on track to reduce annual turnaround capital by C$400 million, a target it raised on March 31. Suncor had originally targeted C$250 million in annual reductions over three years and said it reached that objective in two years.

Refining and sales set second-quarter records Upgrader utilization was 93% during the quarter following completion of Base Plant spring maintenance. Year-to-date utilization reached 94%, which Kruger described as a first-half record.

Refining throughput was 471,000 barrels per day, Suncor's second-highest second-quarter level, while network utilization was 92% on its rerated 511,000-barrel-per-day capacity. Montreal and Edmonton, its two largest refineries, processed 151,000 and 161,000 barrels per day, respectively, with combined utilization of 99%.

Product sales reached a second-quarter record of 655,000 barrels per day, marking Suncor's eighth consecutive quarter with sales exceeding 600,000 barrels per day. Jet fuel sales were a record 51,000 barrels per day as the company adjusted its product slate to capture global market value.

Dave Oldreive, executive vice president of downstream, said export capabilities built over several years helped drive sales. Through Burrard and Montreal, Suncor exported 56 cargoes during the first half, nearly matching the 58 cargoes it shipped during all of 2025.

Oldreive said the company increased its West Coast export capacity from three to four cargoes per month last year to five cargoes per month in early 2026, reaching six cargoes in May. In Montreal, Suncor developed a zero-cost logistics option to export jet fuel, enabling it to export 22,000 barrels per day in the second quarter. The company said it now has capacity to export about 25,000 barrels per day of jet fuel from Montreal if market conditions support it.

Cash flow, balance sheet and shareholder returns Chief Financial Officer Troy Little said adjusted funds from operations totaled C$5.3 billion, nearly double the prior-year level and equal to Suncor's all-time quarterly record set in the second quarter of 2022. Adjusted funds from operations per share were C$4.52, nearly 20% above the comparable 2022 quarter, despite average WTI prices being about C$15 per barrel lower, according to Little.

Downstream adjusted funds from operations reached a record C$2.3 billion. Little said the company reported 89% margin capture, but said that excluding the impact of higher renewable volume obligation pricing, margin capture would have been 99%.

Net debt ended the quarter at C$4.5 billion, down 75% from the start of the decade. Suncor returned C$1.8 billion to shareholders during the quarter, including C$1.1 billion in share repurchases and C$706 million in dividends.

The company said it will raise its share repurchase program to C$500 million per month, or C$1.5 billion per quarter, beginning this week. That follows increases from C$275 million per month at the start of 2026 to C$350 million per month in April.

Little said Suncor intends to provide predictable shareholder returns through the commodity cycle while retaining flexibility for material changes in market conditions. He added that management continues to evaluate both dividends and buybacks to meet the preferences of different shareholders.

Second-half outlook and growth optionality Management maintained its upstream guidance and said it expects a stronger second half as major maintenance concludes. The company has one major upstream event remaining in the third quarter, a planned Syncrude coke outage expected to begin Aug. 20 and last 50 days. Downstream maintenance is also scheduled at Montreal and Edmonton.

Kruger said Suncor continues to prepare for potential future growth from its resource base, including work such as seismic activity and delineation drilling. However, he said the company has not shifted to an accelerated growth strategy and will remain disciplined in capital allocation.

Management also said it sees improved policy discussions in Canada following a non-binding memorandum of understanding between five oil sands companies and federal and provincial governments. Kruger said there is still substantial work required to convert those ambitions into definitive agreements and that Suncor's outlook is not materially different from six months ago.

About Suncor Energy (NYSE:SU)Suncor Energy Inc is a Canadian integrated energy company headquartered in Calgary, Alberta. The company's operations span the full oil and gas value chain, with principal activities in oil sands development and production, conventional exploration and production, refining, distribution and retail marketing of petroleum products. Suncor supplies crude, synthetic crude and refined fuels as well as related products and services to commercial and consumer markets.

Upstream, Suncor is a major developer and operator of oil sands projects in Alberta, using both mining and in situ technologies to produce bitumen and synthetic crude.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Suncor Energy (SU - Free Report) came out with quarterly earnings of $2.33 per share, beating the Zacks Consensus Estimate of $2.14 per share. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +8.88%. A quarter ago, it was expected that this energy company would post earnings of $1.45 per share when it actually produced earnings of $1.41, delivering a surprise of -2.76%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Suncor Energy, which belongs to the Zacks Oil and Gas - Integrated - Canadian industry, posted revenues of $12.67 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 22.36%. This compares to year-ago revenues of $8.6 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Suncor Energy shares have added about 48.7% since the beginning of the year versus the S&P 500's gain of 11%.

What's Next for Suncor Energy?While Suncor Energy has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Suncor Energy was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.69 on $9.44 billion in revenues for the coming quarter and $7.11 on $41.04 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Integrated - Canadian is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the broader Zacks Oils-Energy sector, Fluence Energy, Inc. (FLNC - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.

This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of -600%. The consensus EPS estimate for the quarter has been revised 40.6% higher over the last 30 days to the current level.

Fluence Energy, Inc.'s revenues are expected to be $761.85 million, up 26.4% from the year-ago quarter.

Unless otherwise noted, all financial figures are unaudited, presented in Canadian dollars (Cdn$), and 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 (IASB), and are prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting. Production volumes are presented on a working-interest basis, before royalties, except for production values from the company's Libya operations, which are presented on an economic basis. Certain financial measures referred to in this news release (adjusted funds from operations, adjusted operating earnings, free funds flow, and net debt) are not prescribed by Canadian generally accepted accounting principles (GAAP). See the Non-GAAP Financial Measures section of this news release. References to Oil Sands operations exclude Suncor Energy Inc.'s ownership of Fort Hills and interest in Syncrude.

Calgary, Alberta--(Newsfile Corp. - August 4, 2026) - Suncor Energy (TSX: SU) (NYSE: SU)

Second Quarter Highlights

Matched quarterly record adjusted funds from operations of $5.3 billion and set all-time quarterly per share record of $4.52.

Generated $4.0 billion in free funds flow and set all-time quarterly per share record of $3.38, more than quadruple the prior year quarter.

Returned nearly $1.8 billion to shareholders, with over $1.0 billion in share repurchases and over $700 million in dividends.

Beginning in August 2026, Suncor plans to increase monthly share repurchases to $500 million from $350 million.

Second quarter upstream production of 761,000 bbls/d, and record first half upgrader utilization of 94%.

Record second quarter refining throughput of 471,000 bbls/d and record second quarter refined product sales of 655,000 bbls/d.

"Suncor delivered record quarterly free funds flow per share of $3.38 in the second quarter, demonstrating the progress we've made in improving the performance of our business and increasing shareholder value," said Rich Kruger, President and Chief Executive Officer. "The quarter was led by the exemplary performance of our downstream business, delivering record quarterly adjusted funds from operations and record second quarter refining throughput and refined product sales, highlighting the strength of our integrated model and its ability to generate significant cash flow across a range of market conditions."

Second Quarter Results

Financial HighlightsQ2Q1Q2($ millions, unless otherwise noted)202620262025Net earnings 3 732 2 100 1 134Per common share(1) (dollars) 3.17 1.77 0.93Adjusted operating earnings(2) 3 804 2 300 873Per common share(1)(2) (dollars) 3.23 1.93 0.71Adjusted funds from operations(2) 5 329 4 030 2 689Per common share(1)(2) (dollars) 4.52 3.39 2.20Cash flow provided by operating activities 5 655 2 435 2 919Per common share(1) (dollars) 4.80 2.05 2.38Capital expenditures excluding capitalized interest 1 310 1 076 1 649Free funds flow(2) 3 980 2 913 981Dividend per common share(1) (dollars) 0.60 0.60 0.57Share repurchases per common share(3) (dollars) 0.89 0.69 0.61Returns to shareholders(4) 1 756 1 537 1 447Operating, selling and general expenses 3 419 3 778 3 163Net debt(2) 4 481 6 842 7 673Operating Highlights

Total upstream production (mbbls/d)760.9875.2808.1Refinery crude oil throughput (mbbls/d)470.6497.8442.3Refinery utilization(5) (%) 92 97 87(1) Presented on a basic per share basis.
(2) Non-GAAP financial measures or contains non-GAAP financial measures. See the Non-GAAP Financial Measures section of this news release.
(3) Calculated as the cost of share repurchases, excluding taxes paid on share repurchases, divided by the weighted average number of shares outstanding.
(4) Includes dividends paid on common shares and repurchases of common shares; excludes taxes paid on common share repurchases.
(5) Effective January 1, 2026, Suncor increased the nameplate capacity of its refining network by 10% from 466,000 bbls/d to 511,000 bbls/d. Prior quarter utilization rates have been restated to reflect this change.

Financial Results

Adjusted Operating Earnings Reconciliation(1)

Q2Q1Q2($ millions)202620262025Net earnings 3 732 2 100 1 134Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt 132 139 (461)Unrealized (gain) loss on risk management activities (131) 92 68One-time legislative change to benefits 63 - -Write-down of equity investments - - 136Income tax expense (recovery) on adjusted operating earnings adjustments 8 (31) (4)Adjusted operating earnings(1) 3 804 2 300 873(1) Non-GAAP financial measure. All reconciling items are presented on a before-tax basis and adjusted for income taxes in the income tax expense (recovery) on adjusted operating earnings adjustments line. See the Non-GAAP Financial Measures section of this news release.

Suncor's adjusted operating earnings increased to $3.804 billion ($3.23 per common share) in the second quarter of 2026, compared to $873 million ($0.71 per common share) in the prior year quarter, primarily due to increased upstream price realizations and downstream margins, partially offset by a corresponding increase in tax and royalties expense.

Net earnings increased to $3.732 billion ($3.17 per common share) in the second quarter of 2026, compared to $1.134 billion ($0.93 per common share) in the prior year quarter. In addition to the factors impacting adjusted operating earnings, net earnings for the second quarter of 2026 and the prior year quarter were impacted by the items shown in the table above.

Adjusted funds from operations increased to $5.329 billion ($4.52 per common share) in the second quarter of 2026, compared to $2.689 billion ($2.20 per common share) in the prior year quarter, and were primarily influenced by the same factors impacting adjusted operating earnings. Adjusted funds from operations benefitted from the strength of Suncor's integrated operations in the current quarter, as the upstream captured the strong synthetic crude oil (SCO) premiums, while the downstream generated record adjusted funds from operations, despite the higher feedstock costs.

Cash flow provided by operating activities, which includes changes in non-cash working capital, was $5.655 billion ($4.80 per common share) in the second quarter of 2026, compared to $2.919 billion ($2.38 per common share) in the prior year quarter.

Free funds flow increased to $3.980 billion ($3.38 per common share), compared to $981 million ($0.80 per common share) in the prior year quarter, and was primarily influenced by the same factors impacting adjusted funds from operations as well as lower capital expenditures in the current quarter compared to the prior year quarter.

Operating, selling and general (OS&G) expenses were $3.419 billion in the second quarter of 2026, compared to $3.163 billion in the prior year quarter, with the increase primarily due to increased mining activity, in part due to the unprecedented combination of snow accumulation, rapid spring melt and major rainfall events in the current quarter and increased Oil Sands maintenance.

Operating Results

Q2Q1Q2(mbbls/d, unless otherwise noted)202620262025Upstream

Total Oil Sands bitumen production 815.2 933.9 860.8SCO and diesel production 510.0 550.8 468.0Inter-asset transfers and consumption (27.8) (31.5) (29.8)Upgraded production - net SCO and diesel 482.2 519.3 438.2Bitumen production 273.9 364.7 334.8Inter-asset transfers (66.0) (85.2) (24.6)Non-upgraded bitumen production 207.9 279.5 310.2Total Oil Sands production 690.1 798.8 748.4Exploration and Production 70.8 76.4 59.7Total upstream production 760.9 875.2 808.1Upstream sales 782.1 872.1 812.8

Downstream

Refinery utilization(1) (%) 92 97 87Refinery crude oil throughput 470.6 497.8 442.3Refined product sales 654.8 680.9 600.5Total Oil Sands bitumen production was 815,200 barrels per day (bbls/d) in the second quarter of 2026, compared to 860,800 bbls/d in the prior year quarter, with the decrease primarily due to the planned turnaround at Firebag, which was successfully completed ahead of schedule in the current quarter, partially offset by increased mining production despite an unprecedented combination of snow accumulation, rapid spring melt, and major rainfall events. Mining production in the prior year quarter was impacted by the Upgrader 1 coke drum replacement project and turnaround.

The company's higher value net SCO production increased to 482,200 bbls/d with upgrader utilization of 93% in the second quarter of 2026, compared to 438,200 bbls/d and 86%, respectively, in the prior year quarter, primarily due to fewer maintenance activities in the current quarter.

Non-upgraded bitumen production decreased to 207,900 bbls/d in the second quarter of 2026, compared to 310,200 bbls/d in the prior year quarter, primarily due to increased upgrader availability and decreased bitumen production.

Exploration and Production (E&P) production increased to 70,800 bbls/d in the second quarter of 2026, compared to 59,700 bbls/d in the prior year quarter, and featured strong production at all assets.

Refinery crude oil throughput increased to a second quarter record of 470,600 bbls/d with refinery utilization([1]) of 92% of the rerated nameplate capacity of 511,000 bbls/d. This compares to 442,300 bbls/d and 87% in the prior year quarter, primarily due to fewer maintenance activities in the current period. Refinery production increased to 503,400 bbls/d, compared to 464,600 bbls/d in the prior year quarter, as the company benefitted from a structural increase of intermediate feedstock through the secondary units.

Refined product sales increased to a second quarter record of 654,800 bbls/d, compared to 600,500 bbls/d in the prior year quarter, as Suncor continued to capitalize on global market opportunities, including record jet fuel sales, while also delivering more domestic volumes through high-value retail channels, leveraging Canada's number one retail brand.

(1) Effective January 1, 2026, Suncor increased the nameplate capacity of its refining network by 10% from 466,000 bbls/d to 511,000 bbls/d. Prior quarter utilization rates have been restated to reflect this change.

Corporate and Strategy Updates

Share repurchases to be increased to $500 million per month. Beginning in August 2026, Suncor plans to increase monthly share repurchases to $500 million per month, from $350 million per month, projecting total 2026 share repurchases of $4.7 billion and marking the third monthly increase since December 2025.

New loyalty program partnership announced. Petro-Canada and WestJet announced the details of a new loyalty program partnership that is expected to give Petro-Canada customers more value, options and flexibility when fuelling and flying.

Corporate Guidance Updates

Suncor has updated its 2026 corporate guidance ranges, previously released on December 11, 2025:

Business Environment, Current Income Tax Expense and Royalties have been updated to reflect the current business environment as at August 4, 2026.For further details and advisories regarding Suncor's 2026 corporate guidance, see www.suncor.com/guidance.

Non-GAAP Financial Measures

Certain financial measures in this news release - namely adjusted funds from operations, adjusted operating earnings, free funds flow, net debt, and related per share or per barrel amounts - 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

Adjusted operating earnings is a non-GAAP financial measure that adjusts net earnings for significant items that are not indicative of operating performance. Management uses adjusted operating earnings to evaluate operating performance because management believes it provides better comparability between periods. Adjusted operating earnings are reconciled to net earnings in the news release above.

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.

Three months ended June 30Oil SandsExploration and
ProductionRefining and
MarketingCorporate and
EliminationsIncome TaxesTotal($ millions)202620252026202520262025202620252026202520262025Earnings (loss) before income taxes 2 691 844 465 165 2 100 377 (277) 48 - - 4 979 1 434Adjustments for:

Depreciation, depletion and amortization 1 241 1 248 167 167 275 260 31 34 - - 1 714 1 709Accretion 129 124 20 16 4 4 - - - - 153 144Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt - - - - - - 132 (461) - - 132 (461)Change in fair value of financial instruments and trading inventory (173) 215 12 34 (70) (62) - - - - (231) 187Loss (gain) on disposal of assets 5 - - - (2) - (3) - - - - -Share-based compensation (8) 7 (1) 1 (4) 4 (47) (6) - - (60) 6Settlement of decommissioning and
restoration liabilities (108) (86) (11) (11) (13) (15) - - - - (132) (112)Other 42 47 - - 9 47 41 100 - - 92 194Current income tax expense - - - - - - - - (1 318) (412) (1 318) (412)Adjusted funds from (used in) operations 3 819 2 399 652 372 2 299 615 (123) (285) (1 318) (412) 5 329 2 689Change in non-cash working capital

326 230Cash flow provided by operating activities

5 655 2 919Six months ended June 30Oil SandsExploration and
ProductionRefining and
MarketingCorporate and
EliminationsIncome TaxesTotal($ millions)202620252026202520262025202620252026202520262025Earnings (loss) before income taxes 4 207 2 519 847 323 3 750 1 049 (999) (167) - - 7 805 3 724Adjustments for:

Depreciation, depletion and amortization 2 476 2 447 342 338 551 517 76 70 - - 3 445 3 372Accretion 259 248 39 32 8 7 - - - - 306 287Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt - - - - - - 271 (475) - - 271 (475)Change in fair value of financial instruments and trading inventory (32) 147 4 28 (14) (45) - - - - (42) 130Loss (gain) on disposal of assets 5 - - - (8) - (10) - - - (13) -Share-based compensation (42) (79) (3) (5) (18) (36) (117) (177) - - (180) (297)Settlement of decommissioning and restoration liabilities (248) (165) (16) (14) (26) (27) - - - - (290) (206)Other 88 92 1 - 37 52 26 115 - - 152 259Current income tax expense - - - - - - - - (2 095) (1 060) (2 095) (1 060)Adjusted funds from (used in) operations 6 713 5 209 1 214 702 4 280 1 517 (753) (634) (2 095) (1 060) 9 359 5 734Change in non-cash working capital

(1 269) (659)Cash flow provided by operating activities

8 090 5 075Free 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.

Three months ended June 30Oil SandsExploration and
ProductionRefining and
MarketingCorporate and
EliminationsIncome TaxesTotal($ millions)202620252026202520262025202620252026202520262025Adjusted funds from (used in) operations 3 819 2 399 652 372 2 299 615 (123) (285) (1 318) (412) 5 329 2 689Capital expenditures including capitalized interest (914) (1 109) (126) (229) (300) (362) (9) (8) - - (1 349) (1 708)Free funds flow (deficit) 2 905 1 290 526 143 1 999 253 (132) (293) (1 318) (412) 3 980 981Six months ended June 30Oil SandsExploration and
ProductionRefining and
MarketingCorporate and
EliminationsIncome TaxesTotal($ millions)202620252026202520262025202620252026202520262025Adjusted funds from (used in) operations 6 713 5 209 1 214 702 4 280 1 517 (753) (634) (2 095) (1 060) 9 359 5 734Capital expenditures including capitalized interest (1 660) (1 858) (254) (438) (532) (542) (20) (15) - - (2 466) (2 853)Free funds flow (deficit) 5 053 3 351 960 264 3 748 975 (773) (649) (2 095) (1 060) 6 893 2 881Net Debt and Total Debt

Net debt and total debt are non-GAAP financial measures that management uses to analyze the financial condition of the company. Total debt includes short-term debt, current portion of long-term debt and long-term debt (all of which are GAAP measures). Net debt is equal to total debt less cash and cash equivalents (a GAAP measure).

June 30December 31($ millions, except as noted)20262025Short-term debt - -Current portion of long-term debt 656 973Long-term debt 9 197 9 014Total debt 9 853 9 987Less: Cash and cash equivalents 5 372 3 650Net debt 4 481 6 337Shareholders' equity 48 163 45 124Total debt plus shareholders' equity 58 016 55 111Total debt to total debt plus shareholders' equity (%) 17.0 18.1Net debt to net debt plus shareholders' equity (%) 8.5 12.3Legal Advisory – Forward-Looking Information

This news release contains certain forward-looking information and forward-looking statements (collectively referred to herein as "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 news release include references to: Suncor's strategy, focus, goals and priorities and the expected benefits therefrom; Suncor's belief that Petro-Canada's new loyalty program partnership with WestJet will give Petro-Canada customers more value, options and flexibility when fueling and flying; and Suncor's projection of $4.7 billion of share repurchases in 2026. In addition, all 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 and the expected impact of future commitments are forward-looking statements. Some of the forward-looking statements and information 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" and similar expressions.

Forward-looking statements and information 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.

Suncor's Annual Information Form and Annual Report to Shareholders, each dated February 25, 2026, Form 40-F, Suncor's Report to Shareholders for the Second Quarter of 2026 dated August 4, 2026, and other documents it files from time to time with securities regulatory authorities describe the risks, uncertainties, material assumptions and other factors that could influence actual results and such factors are incorporated herein by reference. Copies of these documents are available by referring to suncor.com/FinancialReports or on SEDAR+ at sedarplus.ca or EDGAR at sec.gov. Except as required by applicable securities laws, Suncor disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

To view a full copy of Suncor's second quarter 2026 Report to Shareholders and the financial statements and notes (unaudited), visit Suncor's profile on sedarplus.ca or sec.gov or visit Suncor's website at suncor.com/financialreports.

To listen to the conference call discussing Suncor's second quarter results, visit suncor.com/webcasts. The event will be archived for 90 days.

Suncor Energy - 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 more information, visit suncor.com or find us on LinkedIn, Instagram and Facebook.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/307978

Source: Suncor Energy Inc.

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Key Takeaways Suncor Energy to report Q2 earnings on Aug. 4, with consensus estimates of $2.14 EPS on $10.35B revenues.SU's downstream business likely benefited from favorable refining margins and stable refinery throughput.SU's planned maintenance at Firebag and Base Plant likely reduced production and raised expenses. Suncor Energy Inc. (SU - Free Report) is set to report second-quarter 2026 earnings on Aug. 4, after the closing bell. The Zacks Consensus Estimate for earnings is pegged at $2.14 per share, and the same for revenues is pinned at $10.35 billion.

Let us delve into the factors that might have influenced SU’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.

Highlights of SU’s Q1 Earnings & Surprise HistoryIn the first quarter, this Alberta-based integrated oil and gas company’s earnings missed the consensus mark. Suncor Energy posted adjusted operating earnings of $1.41 per share, which were 3% below the Zacks Consensus Estimate of $1.45. This was primarily due to a 16.5% increase in total expenses and higher commodity input costs during the quarter. However, the company’s operating revenues of $10.7 billion beat the Zacks Consensus Estimate by 19.53%.

SU's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, delivering an average surprise of 6.93%.

This is depicted in the graph below:

Trend in SU’s Estimate RevisionThe Zacks Consensus Estimate for second-quarter 2026 earnings has remained unchanged in the past seven days. The estimated figure indicates a 319.61% year-over-year bottom-line increase. Moreover, the Zacks Consensus Estimate for revenues indicates an increase of 20.42% from the year-ago period’s level.

Factors to Consider Ahead of SU’s Q2 ReleaseOn a positive note, SU's revenues are likely to have improved in the quarter to be reported. Our model predicts second-quarter revenues to increase from the year-ago quarter's level of $8.60 billion. Suncor's downstream operations are expected to have provided solid support to its second-quarter performance despite volatility in crude markets. Favorable refining margins and sustained demand for refined products through much of the quarter are likely to have driven stronger earnings from the company's refining and marketing business. Stable refinery throughput is also expected to support overall results, highlighting the resilience of Suncor's integrated business model.

On the flip side, extensive turnaround activity is expected to weigh on second-quarter results. Management stated that Suncor's largest upstream maintenance events at the Firebag and Base Plant facilities were underway during the quarter and were expected to have been completed before the end of the second quarter. These planned outages are likely to have temporarily lowered production volumes, increased maintenance expenses and limited upstream earnings, partially offsetting the strength of the company's downstream operations.

What Does Our Model Say?The proven Zacks model does not conclusively show an earnings beat for Suncor Energythis time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: SU currently carries a Zacks Rank #3.

Stocks to ConsiderHere are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat.

Ryman Hospitality Properties (RHP - Free Report) has an Earnings ESP of +1.26% and a Zacks Rank #2. The firm is scheduled to release earnings on Aug. 6, 2026. You can seethe complete list of today’s Zacks #1 Rank stocks here.

Ryman Hospitality Properties is a real estate investment trust that owns a large group of convention-oriented hotels and entertainment assets. This includes the Grand Ole Opry, generating revenue from hospitality, entertainment and related businesses. Ryman Hospitality has a trailing four-quarter average earnings surprise of 6.44%.

Somnigroup International Inc. (SGI - Free Report) has an Earnings ESP of +2.43% and a Zacks Rank #2. The firm is scheduled to release earnings on Aug. 6, 2026.

Somnigroup is a global bedding company that designs, manufactures and sells mattresses, adjustable bases and sleep-related products through a portfolio of well-known brands. The company has a trailing four-quarter average earnings surprise of 4.80%.

Sweetgreen (SG - Free Report) has an Earnings ESP of +11.54% and a Zacks Rank #2. The firm is scheduled to release earnings on Aug. 6, 2026.

Sweetgreen is a fast-casual restaurant chain that serves customizable salads, warm bowls and protein plates. The company has a strong focus on digital ordering and fresh, locally sourced ingredients. Sweetgreen is valued at approximately $733.17 million.