Unaudited Consolidated Financial Statements for the second quarter ended June 30, 2012


		Three months ended June 30				Six months ended June 30
($ millions)		2012		2011		2012		2011

Revenues and Other Income
	Operating revenues, net of royalties (note 3)	9 599		9 255		19 252		18 198
	Other income (note 4)	123		77		228		209

		9 722		9 332		19 480		18 407

Expenses
	Purchases of crude oil and products	4 493		4 823		8 489		8 312
	Operating, selling and general	2 030		1 934		4 484		4 225
	Transportation	164		187		320		354
	Depreciation, depletion, amortization and impairment (note 5)	1 592		1 310		2 539		2 095
	Exploration	96		31		141		89
	Loss (gain) on disposal of assets	(5	)	(60	)	(36	)	191
	Project start-up costs	22		46		23		83
	Financing expenses (income) (note 8)	212		20		130		(29	)

		8 604		8 291		16 090		15 320

Earnings before Income Taxes		1 118		1 041		3 390		3 087

Income Taxes
	Current	429		166		926		582
	Deferred (note 9)	356		313		674		915

		785		479		1 600		1 497

Net Earnings		333		562		1 790		1 590

Other Comprehensive Income (Loss)
	Foreign currency translation adjustment	69		4		19		41
	Foreign currency translation reclassified to net earnings	—		—		—		14
	Actuarial loss on employee retirement benefit plans, net of income taxes of $47 (2011 – $13) and $56 (2011 – $9) for the three and six months ended June 30, respectively	(135	)	(44	)	(144	)	(26	)

Other Comprehensive Income (Loss)		(66	)	(40	)	(125	)	29

Total Comprehensive Income		267		522		1 665		1 619

Per Common Share (dollars) (note 10)
	Net earnings – basic	0.21		0.36		1.15		1.01
	Net earnings – diluted	0.20		0.31		1.14		0.99
	Cash dividends	0.13		0.11		0.24		0.21


($ millions)			Jun 30 2012	Dec 31 2011

Assets
	Current assets
		Cash and cash equivalents	5 166	3 803
		Accounts receivable	4 738	5 412
		Inventories	3 372	4 205
		Income taxes receivable	722	704

	Total current assets		13 998	14 124
	Property, plant and equipment, net		53 768	52 589
	Exploration and evaluation		4 036	4 554
	Other assets		314	311
	Goodwill and other intangible assets		3 135	3 139
	Deferred income taxes		75	60

	Total assets		75 326	74 777

Liabilities and Shareholders' Equity
	Current liabilities
		Short-term debt	765	763
		Current portion of long-term debt	12	12
		Accounts payable and accrued liabilities	6 813	7 755
		Current portion of provisions	1 111	811
		Income taxes payable	1 309	969

	Total current liabilities		10 010	10 310
	Long-term debt		10 013	10 004
	Other long-term liabilities		2 181	2 392
	Provisions		3 562	3 752
	Deferred income taxes		10 368	9 719
	Shareholders' equity		39 192	38 600

	Total liabilities and shareholders' equity		75 326	74 777

Suncor Energy Inc.
050 2012 Second Quarter For more information about Suncor Energy, visit our website www.suncor.com


		Three months ended June 30				Six months ended June 30
($ millions)		2012		2011		2012		2011

Operating Activities
Net earnings		333		562		1 790		1 590
Adjustments for:
	Depreciation, depletion, amortization and impairment	1 592		1 310		2 539		2 095
	Deferred income taxes	356		313		674		915
	Accretion	46		45		92		83
	Unrealized foreign exchange loss (gain) on U.S. dollar denominated long-term debt	163		(62	)	17		(248	)
	Change in fair value of derivative contracts	52		(21	)	13		(76	)
	Loss (gain) on disposal of assets	(5	)	(60	)	(36	)	191
	Share-based compensation	(64	)	(101	)	(19	)	72
	Exploration	58		17		59		19
	Settlement of decommissioning and restoration liabilities	(90	)	(103	)	(256	)	(241	)
	Other	(97	)	82		(103	)	(25	)
Decrease in non-cash working capital		465		268		513		393

Cash flow provided by operating activities		2 809		2 250		5 283		4 768

Investing Activities
Capital and exploration expenditures		(1 606	)	(1 941	)	(3 084	)	(3 517	)
Acquisitions		—		—		—		(842	)
Proceeds from disposal of assets		6		268		43		2 958
Other investments		(4	)	(3	)	(4	)	2
Decrease (increase) in non-cash working capital		(37	)	(772	)	50		44

Cash flow used in investing activities		(1 641	)	(2 448	)	(2 995	)	(1 355	)

Financing Activities
Net change in short-term debt		16		(1	)	2		(1 233	)
Net change in long-term debt		(2	)	(6	)	(7	)	(10	)
Issuance of common shares under share option plans		68		17		167		185
Purchase of common shares for cancellation, net of option premiums (note 7)		(548	)	—		(731	)	—
Dividends paid on common shares		(198	)	(171	)	(365	)	(324	)

Cash flow used in financing activities		(664	)	(161	)	(934	)	(1 382	)

Increase (decrease) in Cash and Cash Equivalents		504		(359	)	1 354		2 031
Effect of foreign exchange on cash and cash equivalents		14		(9	)	9		(11	)
Cash and cash equivalents at beginning of period		4 648		3 465		3 803		1 077

Cash and Cash Equivalents at End of Period		5 166		3 097		5 166		3 097

Supplementary Cash Flow Information
Interest paid		253		273		317		374
Income taxes paid		253		2		621		310


($ millions)	Share Capital		Contributed Surplus		Foreign Currency Translation		Cash Flow Hedges	Retained Earnings		Total		Number of Common Shares (thousands)

At December 31, 2010	20 188		507		(451	)	14	14 934		35 192		1 565 489

Net earnings	—		—		—		—	1 590		1 590		—
Foreign currency translation adjustment	—		—		55		—	—		55		—
Actuarial loss on employee retirement benefit plans	—		—		—		—	(26	)	(26	)	—

Total comprehensive income	—		—		55		—	1 564		1 619		—
Issued under share option plans	284		(44	)	—		—	—		240		8 105
Issued under dividend reinvestment plan	6		—		—		—	(6	)	—		171
Share-based compensation	—		61		—		—	—		61		—
Dividends paid on common shares	—		—		—		—	(324	)	(324	)	—
Income tax benefit of stock option deduction in the U.S.	—		1		—		—	—		1		—

At June 30, 2011	20 478		525		(396	)	14	16 168		36 789		1 573 765



At December 31, 2011	20 303		545		(207	)	14	17 945		38 600		1 558 636

Net earnings	—		—		—		—	1 790		1 790		—
Foreign currency translation adjustment	—		—		19		—	—		19		—
Actuarial loss on employee retirement benefit plans	—		—		—		—	(144	)	(144	)	—

Total comprehensive income	—		—		19		—	1 646		1 665		—
Issued under share option plans	219		(38	)	—		—	—		181		9 799
Issued under dividend reinvestment plan	9		—		—		—	(9	)	—		280
Purchase of common shares for cancellation, net of option premiums (note 7)	(315	)	—		—		—	(416	)	(731	)	(24 225	)
Liability for share purchase commitment (note 7)	(111	)	—		—		—	(106	)	(217	)	—
Share-based compensation	—		59		—		—	—		59		—
Dividends paid on common shares	—		—		—		—	(365	)	(365	)	—

At June 30, 2012	20 105		566		(188	)	14	18 695		39 192		1 544 490

Suncor Energy Inc.
052 2012 Second Quarter For more information about Suncor Energy, visit our website www.suncor.com

Suncor Energy Inc. (Suncor or the company) is an integrated energy company headquartered in Canada. Suncor's operations include oil sands development and upgrading, onshore and offshore oil and gas production, petroleum refining, and product marketing primarily under the Petro-Canada brand. The consolidated financial statements of the company comprise the company and its subsidiaries and the company's interests in associates and jointly controlled entities.

The address of the company's registered office is 150 - 6th Avenue S.W., Calgary, Alberta, Canada, T2P 3E3.

These condensed consolidated interim financial statements have been prepared in accordance with Canadian generally accepted accounting principles, specifically International Accounting Standard 34 Interim Financial Reporting as issued by the International Accounting Standards Board. 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 consolidated financial statements for the year ended December 31, 2011.

The policies applied in these condensed interim consolidated financial statements are based on International Financial Reporting Standards (IFRS) issued and outstanding as at July 24, 2012, the date the Audit Committee approved these statements on behalf of the Board of Directors.

The consolidated financial statements are prepared on a historical cost basis except as detailed in the accounting policies disclosed in the company's consolidated financial statements for the year ended December 31, 2011. Those accounting policies have been applied consistently to all periods presented in these financial statements.

These consolidated financial statements are presented in Canadian dollars, which is the company's functional currency.

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 consolidated financial statements for the year ended December 31, 2011.

The company's operating segments are determined based on differences in the nature of their operations, products and services.

Intersegment sales of crude oil and natural gas are accounted for at market values and 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 June 30
	Oil Sands⁽¹⁾				Exploration and Production				Refining and Marketing				Corporate, Energy Trading and Eliminations				Total
($ millions)	2012		2011		2012		2011		2012		2011		2012		2011		2012		2011

Revenues and Other Income
Gross revenues	1 873		2 000		1 651		1 366		6 538		6 330		6		17		10 068		9 713
Intersegment revenues	635		723		154		157		49		40		(838	)	(920	)	—		—
Less: Royalties	(77	)	(161	)	(392	)	(297	)	—		—		—		—		(469	)	(458	)

Operating revenues, net of royalties	2 431		2 562		1 413		1 226		6 587		6 370		(832	)	(903	)	9 599		9 255
Other income	11		6		(1	)	(18	)	11		7		102		82		123		77

	2 442		2 568		1 412		1 208		6 598		6 377		(730	)	(821	)	9 722		9 332

Expenses
Purchases of crude oil and products	57		304		122		186		5 187		5 278		(873	)	(945	)	4 493		4 823
Operating, selling and general	1 174		1 253		278		184		522		505		56		(8	)	2 030		1 934
Transportation	103		100		36		28		51		54		(26	)	5		164		187
Depreciation, depletion, amortization and impairment	469		334		966		847		112		112		45		17		1 592		1 310
Exploration	11		8		85		23		—		—		—		—		96		31
Gain on disposal of assets	(3	)	(6	)	—		(50	)	(2	)	(4	)	—		—		(5	)	(60	)
Project start-up costs	21		46		—		—		1		—		—		—		22		46
Financing expenses (income)	32		18		(9	)	25		(1	)	(1	)	190		(22	)	212		20

	1 864		2 057		1 478		1 243		5 870		5 944		(608	)	(953	)	8 604		8 291

Earnings (Loss) before Income Taxes	578		511		(66	)	(35	)	728		433		(122	)	132		1 118		1 041
Income taxes
Current	(1	)	—		309		127		117		21		4		18		429		166
Deferred	223		140		55		50		112		99		(34	)	24		356		313

	222		140		364		177		229		120		(30	)	42		785		479

Net Earnings (Loss)	356		371		(430	)	(212	)	499		313		(92	)	90		333		562

Capital and Exploration Expenditures	1 093		1 521		315		194		158		186		40		40		1 606		1 941

Suncor Energy Inc.
054 2012 Second Quarter For more information about Suncor Energy, visit our website www.suncor.com


	Six months ended June 30
	Oil Sands⁽¹⁾				Exploration and Production				Refining and Marketing				Corporate, Energy Trading and Eliminations				Total
($ millions)	2012		2011		2012		2011		2012		2011		2012		2011		2012		2011

Revenues and Other Income
Gross revenues	4 208		4 045		3 341		2 972		12 901		12 168		29		26		20 479		19 211
Intersegment revenues	1 517		1 569		426		366		86		41		(2 029	)	(1 976	)	—		—
Less: Royalties	(357	)	(284	)	(870	)	(729	)	—		—		—		—		(1 227	)	(1 013	)

Operating revenues, net of royalties	5 368		5 330		2 897		2 609		12 987		12 209		(2 000	)	(1 950	)	19 252		18 198
Other income	14		7		40		(15	)	9		44		165		173		228		209

	5 382		5 337		2 937		2 594		12 996		12 253		(1 835	)	(1 777	)	19 480		18 407

Expenses
Purchases of crude oil and products	105		355		254		306		10 199		9 573		(2 069	)	(1 922	)	8 489		8 312
Operating, selling and general	2 691		2 573		471		420		1 091		1 080		231		152		4 484		4 225
Transportation	175		185		66		60		99		113		(20	)	(4	)	320		354
Depreciation, depletion, amortization and impairment	909		645		1 326		1 201		223		214		81		35		2 539		2 095
Exploration	51		48		90		41		—		—		—		—		141		89
Loss (gain) on disposal of assets	(32	)	106		—		96		(4	)	(10	)	—		(1	)	(36	)	191
Project start-up costs	22		83		—		—		1		—		—		—		23		83
Financing expenses (income)	61		36		34		50		(2	)	5		37		(120	)	130		(29	)

	3 982		4 031		2 241		2 174		11 607		10 975		(1 740	)	(1 860	)	16 090		15 320

Earnings (Loss) before Income Taxes	1 400		1 306		696		420		1 389		1 278		(95	)	83		3 390		3 087
Income taxes
Current	1		—		746		515		154		36		25		31		926		582
Deferred	436		330		48		303		262		302		(72	)	(20	)	674		915

	437		330		794		818		416		338		(47	)	11		1 600		1 497

Net Earnings (Loss)	963		976		(98	)	(398	)	973		940		(48	)	72		1 790		1 590

Capital and Exploration Expenditures	2 270		2 701		521		422		247		292		46		102		3 084		3 517


		Three months ended June 30			Six months ended June 30
($ millions)		2012	2011		2012		2011

Risk management activities		6	(2	)	(1	)	(20	)
Energy trading activities
	Change in fair value of contracts	28	132		128		155
	Gains (losses) on inventory valuation	44	(86	)	25		(45	)
Investment and interest income		18	24		36		96
Renewable energy grants		17	20		26		32
Other		10	(11	)	14		(9	)

		123	77		228		209

In the second quarter of 2012, the company recognized after-tax impairment charges and write-downs of $694 million related to Syrian assets in its Exploration and Production business. In December 2011, the company declared force majeure under its contractual obligations, suspended its operations and ceased recording production due to political unrest and international sanctions affecting that country. No Syrian production was recorded in 2012.

As there was no resolution of the political situation by the end of the second quarter, an impairment test on the company's assets was performed. In calculating the company's impairment, the recoverable amount was determined using a value-in-use methodology. The company used an expected cash flow approach based on 2011 year-end reserves data updated for the company's best estimate of price realizations, with three scenarios representing i) resumption of operations in 18 months, ii) resumption of operations in 30 months, and iii) total loss. These scenarios were probability-weighted based on the company's best estimates, and present valued using a risk-adjusted discount rate of 19%. The calculation is most sensitive to management's assumptions on the relative likelihood of the three scenarios and price realizations.

The impairment losses were recorded as part of Depreciation, Depletion, Amortization and Impairment expense, and charged against Property, Plant and Equipment ($604 million) and other current assets ($23 million).

At June 30, 2012, the company also wrote off the remainder of its Syrian receivables ($67 million). A provision of $63 million was previously recorded at December 31, 2011.

In the second quarter of 2011, the company recognized after-tax impairment charges of $514 million related to Libyan assets in its Exploration and Production business. At that time, production had been shut in due to political violence in Libya. The impairment losses were recorded as part of Depreciation, Depletion, Amortization and Impairment expense, and charged against Property, Plant and Equipment ($259 million), Exploration and Evaluation assets ($211 million), and Inventories ($44 million).

During the third quarter of 2011, the company reversed the $11 million impairment charge that related to crude oil inventories. The reversal was the result of lifting certain political sanctions, and the joint venture partner confirming the existence of previously written off crude oil.

At June 30, 2012, there has been no change in the company's overall assessment of the impairment, and no reversal of impairment has been recognized except as noted above.

Suncor Energy Inc.
056 2012 Second Quarter For more information about Suncor Energy, visit our website www.suncor.com

The following table summarizes the share-based compensation expense (recovery) recorded for all plans within Operating, Selling and General expense.

In February 2012, the company recommenced its Normal Course Issuer Bid (NCIB), and may purchase for cancellation an additional $1 billion of its common shares between February 28, 2012 and September 5, 2012.

In May 2012, the company received approval to issue put options in connection with its NCIB. The options entitle the purchaser to sell a specified number of the company's common shares back to the company at a price agreed to on the date of issuance.

During the six months ended June 30, 2012, the company purchased 24.2 million common shares for total consideration of $731 million, net of $1.3 million option premiums recognized in share capital. Of the amount paid, $315 million was charged to share capital (net of $1.3 million option premiums) and $416 million to retained earnings. The company also recorded a liability of $190 million for share purchases that may take place during its internal blackout period under an automatic share purchase agreement with an independent broker. Of the liability recognized, $84 million was charged to share capital and $106 million to retained earnings.

During the six months ended June 30, 2012, the company issued 1.3 million options, which 0.3 million expired, unexercised during the period. As at June 30, 2012, 1.0 million options were outstanding with a weighted average strike price of $27.42 per common share. The company has also recognized a liability of $27 million for common shares that would be cancelled if the outstanding options were exercised at June 30, 2012. All options will expire before September 5, 2012.

During the third and fourth quarters of 2011, the company purchased 17.1 million shares for total consideration of $500 million under the NCIB announced in August 2011. Of the amount paid, $222 million was charged to share capital and $278 million to retained earnings.


		Three months ended June 30				Six months ended June 30
($ millions)		2012		2011		2012		2011

Interest on debt		164		171		326		332
Capitalized interest		(148	)	(152	)	(306	)	(252	)

	Interest expense	16		19		20		80
	Accretion	46		45		92		83
	Foreign exchange loss (gain) on U.S. dollar denominated long-term debt	163		(62	)	17		(248	)
	Foreign exchange and other	(13	)	18		1		56

		212		20		130		(29	)

In the second quarter of 2012, the Ontario government substantively enacted legislation to freeze the general corporate income tax rate at the current 11.5% instead of the planned reduction to 10%. Accordingly, the company recognized an increase in deferred tax expense of $88 million related to the revaluation of deferred income tax balances.

In the first quarter of 2011, the U.K. government substantively enacted a 12% increase in the supplementary charge on U.K. oil and gas profits. Accordingly, the company recognized an increase in deferred tax expense of $442 million related to the revaluation of deferred income tax balances.


		Three months ended June 30				Six months ended June 30
($ millions)		2012		2011		2012		2011

Net earnings		333		562		1 790		1 590
Dilutive impact of accounting for awards as equity-settled ⁽¹⁾		(18	)	(65	)	(13	)	(14	)

Net earnings – diluted		315		497		1 777		1 576

(millions of common shares)
Weighted average number of common shares		1 554		1 574		1 557		1 572
Dilutive securities:
	Effect of share options	4		13		5		14

Weighted average number of diluted common shares		1 558		1 587		1 562		1 586

(dollars per common share)
Basic earnings per share		0.21		0.36		1.15		1.01
Diluted earnings per share		0.20		0.31		1.14		0.99

Suncor Energy Inc.
058 2012 Second Quarter For more information about Suncor Energy, visit our website www.suncor.com


	Three months ended		Six months ended
($ millions, increase/(decrease))	June 30, 2011		June 30, 2011

Gross revenues	(255	)	(568	)
Purchases of crude oil and products	(255	)	(568	)

Net earnings	—		—