EX-99.2 3 su-20250630xex99d2.htm EX-99.2

​

Consolidated Statements of Comprehensive Income

(unaudited)

​

​	​	​	​	​	​	​	​	​
​	​	Three months ended June 30			​	Six months ended June 30
($ millions)		2025	​	2024	​	2025	​	2024
Revenues and Other Income	​	​	​	​	​
Gross revenues (note 3)	​	12 749	​	14 014	​	26 079		27 319
Less: royalties	​	(758)	​	(1 125)	​	(1 765)	​	(2 049)
Other (loss) income (note 4)	​	(97)	​	151	​	33		299
​	​	11 894		13 040	​	24 347		25 569
Expenses	​	​	​	​	​	​	​	​
Purchases of crude oil and products	​	5 101	​	5 162	​	9 401		9 520
Operating, selling and general	​	3 163	​	3 153	​	6 460		6 593
Transportation and distribution	​	489	​	438	​	937		848
Depreciation, depletion, amortization and impairment	​	1 709	​	1 684	​	3 372		3 312
Exploration	​	4	​	15	​	126		74
Loss (gain) on disposal of assets	​	—	​	1	​	—		(2)
Financing (income) expenses (note 6)	​	(6)	​	404	​	327		821
​	​	10 460		10 857	​	20 623		21 166
Earnings before Income Taxes	​	1 434		2 183	​	3 724		4 403
​	​	​	​	​	​	​	​	​
Income Tax Expense (Recovery)	​	​	​	​	​	​	​	​
Current	​	412	​	781	​	1 060		1 430
Deferred	​	(112)	​	(166)	​	(159)		(205)
​	​	300	​	615	​	901		1 225
Net Earnings	​	1 134	​	1 568	​	2 823		3 178
​	​	​	​	​	​	​	​	​
Other Comprehensive Income	​	​	​	​	​	​	​	​
Items That May be Subsequently Reclassified to Earnings:	​	​	​	​	​	​	​	​
Foreign currency translation adjustment	​	(159)	​	11	​	(180)		(5)
Items That Will Not be Reclassified to Earnings:	​	​	​	​	​	​	​	​
Actuarial gain on employee retirement benefit plans, net of income taxes (note 11)	​	209	​	91	​	244	​	490
Other Comprehensive Income	​	50	​	102	​	64		485
​	​	​	​	​	​	​	​	​
Total Comprehensive Income	​	1 184	​	1 670	​	2 887		3 663
​	​	​	​	​	​	​	​	​
Per Common Share (dollars) (note 7)	​	​	​	​	​	​	​	​
Net earnings – basic and diluted	​	0.93	​	1.22	​	2.29		2.47
Cash dividends	​	0.57	​	0.55	​	1.14		1.10

​

See accompanying notes to the condensed interim consolidated financial statements.

​

​

​

40 2025 Second Quarter   Suncor Energy Inc.

​

​

Consolidated Balance Sheets

(unaudited)

​

​	​	​	​	​
​	​	June 30	​	December 31
($ millions)		2025	​	2024
Assets	​	​	​	​
Current assets	​	​	​	​
Cash and cash equivalents		2 269		3 484
Accounts receivable	​	5 322		5 245
Inventories		5 230		5 041
Income taxes receivable	​	597		518
Total current assets	​	13 418		14 288
Property, plant and equipment, net		68 074		68 512
Exploration and evaluation		1 742		1 742
Other assets		1 722		1 559
Goodwill and other intangible assets		3 475		3 503
Deferred income taxes		196		180
Total assets	​	88 627		89 784
​	​	​	​	​
Liabilities and Shareholders’ Equity	​	​	​	​
Current liabilities	​	​	​	​
Current portion of long-term debt		1 376		997
Current portion of long-term lease liabilities	​	638	​	599
Accounts payable and accrued liabilities	​	7 672		8 161
Current portion of provisions		849		958
Income taxes payable	​	100		32
Total current liabilities	​	10 635		10 747
Long-term debt		8 566		9 348
Long-term lease liabilities	​	3 700	​	3 745
Other long-term liabilities		1 358		1 502
Provisions (note 10)		11 873		11 931
Deferred income taxes		7 915		7 997
Equity	​	44 580		44 514
Total liabilities and shareholders’ equity	​	88 627		89 784

​

See accompanying notes to the condensed interim consolidated financial statements.

​

​

​

2025 Second Quarter   Suncor Energy Inc.   41

​

​

Consolidated Statements of Cash Flows

(unaudited)

​

​	​	​	​	​	​	​	​	​
​	​	Three months ended June 30			​	Six months ended June 30
($ millions)		2025	​	2024	​	2025	​	2024
Operating Activities	​	​	​	​	​	​	​	​
Net Earnings	​	1 134	​	1 568	​	2 823		3 178
Adjustments for:	​	​	​	​	​	​	​	​
Depreciation, depletion, amortization and impairment	​	1 709	​	1 684	​	3 372		3 312
Deferred income tax recovery	​	(112)	​	(166)	​	(159)		(205)
Accretion (note 6)	​	144	​	149	​	287		294
Unrealized foreign exchange (gain) loss on U.S. dollar denominated debt (note 6)	​	(461)	​	103	​	(475)		323
Change in fair value of financial instruments and trading inventory	​	187	​	14	​	130		44
Loss (gain) on disposal of assets	​	—	​	1	​	—		(2)
Share-based compensation	​	6	​	98	​	(297)		(276)
Settlement of decommissioning and restoration liabilities	​	(112)	​	(112)	​	(206)		(235)
Other	​	194	​	58	​	259		133
Decrease (increase) in non-cash working capital	​	230	​	432	​	(659)		50
Cash flow provided by operating activities	​	2 919	​	3 829	​	5 075		6 616
Investing Activities	​	​	​	​	​	​	​	​
Capital and exploration expenditures	​	(1 708)	​	(2 047)	​	(2 853)		(3 358)
Proceeds from disposal of assets	​	—	​	15	​	—		23
Other investments	​	(1)	​	(2)	​	(7)		(3)
Decrease (increase) in non-cash working capital	​	39	​	246	​	(65)		215
Cash flow used in investing activities	​	(1 670)	​	(1 788)	​	(2 925)		(3 123)
Financing Activities	​	​	​	​	​	​	​	​
Net decrease in short-term debt	​	—	​	(688)	​	—		(467)
Lease liability payments	​	(175)	​	(107)	​	(355)		(205)
Issuance of common shares under share option plans	​	12	​	177	​	87		307
Repurchase of common shares(1) (note 8)	​	(750)	​	(825)	​	(1 548)		(1 118)
Distributions relating to non-controlling interest	​	(4)	​	(4)	​	(8)	​	(8)
Dividends paid on common shares	​	(697)	​	(698)	​	(1 402)		(1 400)
Cash flow used in financing activities	​	(1 614)	​	(2 145)	​	(3 226)		(2 891)
(Decrease) Increase in Cash and Cash Equivalents	​	(365)	​	(104)	​	(1 076)		602
Effect of foreign exchange on cash and cash equivalents	​	(139)	​	14	​	(139)		43
Cash and cash equivalents at beginning of period	​	2 773	​	2 464	​	3 484		1 729
Cash and Cash Equivalents at End of Period	​	2 269	​	2 374	​	2 269		2 374
Supplementary Cash Flow Information	​	​	​	​	​	​	​	​
Interest paid	​	293	​	316	​	441		452
Income taxes paid	​	393	​	959	​	997		984

​

(1) Includes $48 million of taxes paid on 2024 share repurchases for the six months ended June 30, 2025.

​

See accompanying notes to the condensed interim consolidated financial statements.

​

42 2025 Second Quarter   Suncor Energy Inc.

​

​

Consolidated Statements of Changes In Equity

(unaudited)

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​		​		​		Accumulated		​		​		Number of
​	​	​	​	​	​	Other	​	​	​	​	​	Common
​	​	Share	​	Contributed	​	Comprehensive	​	Retained	​	​	​	Shares
($ millions)	​	Capital	​	Surplus	​	Income	​	Earnings	​	Total	​	(thousands)
At December 31, 2023	​	21 661		569		1 048		20 001		43 279		1 290 100
Net earnings	​	—	​	—	​	—	​	3 178	​	3 178		—
Foreign currency translation adjustment	​	—	​	—	​	(5)	​	—	​	(5)		—
Actuarial gain on employee retirement benefit plans, net of income taxes of $155	​	—	​	—	​	—	​	490	​	490		—
Total comprehensive income	​	—		—		(5)		3 668		3 663		—
Issued under share option plans	​	351	​	(48)	​	—	​	—	​	303		7 728
Repurchase of common shares for cancellation(1) (note 8)	​	(372)	​	—	​	—	​	(761)	​	(1 133)		(21 999)
Change in liability for share repurchase commitment		(60)	​	—	​	—	​	(158)	​	(218)		—
Share-based compensation	​	—	​	7	​	—	​	—	​	7		—
Dividends paid on common shares	​	—	​	—	​	—	​	(1 400)	​	(1 400)		—
At June 30, 2024	​	21 580	​	528	​	1 043	​	21 350	​	44 501	​	1 275 829
At December 31, 2024	​	21 121		520		1 201		21 672		44 514		1 244 332
Net earnings	​	—	​	—	​	—	​	2 823	​	2 823		—
Foreign currency translation adjustment	​	—	​	—	​	(180)	​	—	​	(180)		—
Actuarial gain on employee retirement benefit plans, net of income taxes of $77 (note 11)	​	—	​	—	​	—	​	244	​	244	​	—
Total comprehensive income	​	—	​	—	​	(180)	​	3 067	​	2 887		—
Issued under share option plans	​	101	​	(14)	​	—	​	—	​	87		2 145
Repurchase of common shares for cancellation(1) (note 8)		(488)	​	—	​	—	​	(1 040)	​	(1 528)		(28 593)
Change in liability for share repurchase commitment (note 8)		4	​	—	​	—	​	11	​	15		—
Share-based compensation (note 5)	​	—	​	7	​	—	​	—	​	7		—
Dividends paid on common shares	​	—	​	—	​	—	​	(1 402)	​	(1 402)		—
At June 30, 2025	​	20 738		513		1 021		22 308		44 580		1 217 884

​

(1) Includes $28 million of taxes on share repurchases for the six months ended June 30, 2025 (June 30, 2024 – $15 million).

​

​

See accompanying notes to the condensed interim consolidated financial statements.

​

2025 Second Quarter   Suncor Energy Inc.   43

​

​

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.

​

44 2025 Second 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.

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	Exploration and			​	Refining and			​	Corporate and			​	​	​	​
Three months ended June 30	​	Oil Sands			​	Production			​	Marketing			​	Eliminations			​	Total
($ millions)		2025		2024		2025		2024		2025		2024		2025		2024		2025		2024
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Revenues and Other Income	​	​	​	​	​	​	​	​	​	​		​	​	​		​	​	​	​	​
Gross revenues		4 806		5 319		665		673		7 278		8 022		—		—		12 749		14 014
Intersegment revenues		1 634		2 113		—		—		32		35		(1 666)		(2 148)		—		—
Less: Royalties		(596)		(1 001)		(162)		(124)		—		—		—		—		(758)		(1 125)
Operating revenues, net of royalties		5 844		6 431		503		549		7 310		8 057		(1 666)		(2 148)		11 991		12 889
Other (loss) income		(58)		72		9		(5)		18		43		(66)		41		(97)		151
​		5 786		6 503		512		544		7 328		8 100		(1 732)		(2 107)		11 894		13 040
Expenses				​				​				​				​				​
Purchases of crude oil and products		813		696		—		—		5 969		6 519		(1 681)		(2 053)		5 101		5 162
Operating, selling and general		2 356		2 278		125		120		578		603		104		152		3 163		3 153
Transportation and distribution		335		292		36		24		127		132		(9)		(10)		489		438
Depreciation, depletion, amortization and impairment		1 248		1 235		167		184		260		236		34		29		1 709		1 684
Exploration		3		13		1		2		—		—		—		—		4		15
Loss on disposal of assets		—		—		—		—		—		—		—		1		—		1
Financing expenses (income)		187		197		18		18		17		17		(228)		172		(6)		404
​		4 942		4 711		347		348		6 951		7 507		(1 780)		(1 709)		10 460		10 857
Earnings (Loss) before Income Taxes		844		1 792		165		196		377		593		48		(398)		1 434		2 183
Income Tax Expense (Recovery)		​		​				​				​				​				​
Current		—		—		—		—		—		—		—		—		412		781
Deferred		—		—		—		—		—		—		—		—		(112)		(166)
​		—		—		—		—		—		—		—		—		300		615
Net Earnings		—		—		—		—		—		—		—		—		1 134		1 568
Capital and Exploration Expenditures		1 109		1 437		229		229		362		375		8		6		1 708		2 047

​

​

2025 Second Quarter   Suncor Energy Inc.   45

​

​

Notes to the Consolidated Financial Statements

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Six months ended June 30	​	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		9 796		10 257		1 394		1 438		14 889		15 625		—		(1)		26 079		27 319
Intersegment revenues		3 785		4 097		—		—		49		45		(3 834)		(4 142)		—		—
Less: Royalties		(1 411)		(1 783)		(354)		(266)		—		—		—		—		(1 765)		(2 049)
Operating revenues, net of royalties		12 170		12 571		1 040		1 172		14 938		15 670		(3 834)		(4 143)		24 314		25 270
Other income (loss)		40		127		14		1		6		117		(27)		54		33		299
​		12 210		12 698		1 054		1 173		14 944		15 787		(3 861)		(4 089)		24 347		25 569
Expenses				​				​		​		​		​		​				​
Purchases of crude oil and products		1 422		1 325		—		—		11 891		12 107		(3 912)		(3 912)		9 401		9 520
Operating, selling and general		4 748		4 760		245		261		1 187		1 221		280		351		6 460		6 593
Transportation and distribution		631		584		58		49		266		235		(18)		(20)		937		848
Depreciation, depletion, amortization and impairment		2 447		2 420		338		354		517		480		70		58		3 372		3 312
Exploration		71		70		55		4		—		—		—		—		126		74
Gain on disposal of assets		—		—		—		—		—		—		—		(2)		—		(2)
Financing expenses (income)		372		376		35		35		34		37		(114)		373		327		821
​		9 691		9 535		731		703		13 895		14 080		(3 694)		(3 152)		20 623		21 166
Earnings (Loss) before Income Taxes		2 519		3 163		323		470		1 049		1 707		(167)		(937)		3 724		4 403
Income Tax Expense (Recovery)				​				​		​		​		​		​				​
Current		—		—		—		—		—		—		—		—		1 060		1 430
Deferred		—		—		—		—		—		—		—		—		(159)		(205)
​		—	​	—	​	—	​	—	​	—	​	—	​	—	​	—	​	901	​	1 225
Net Earnings		—		—		—		—		—		—		—		—		2 823		3 178
Capital and Exploration Expenditures		1 858		2 432		438		371		542		543		15		12		2 853		3 358

​

​

46 2025 Second Quarter   Suncor Energy Inc.

​

​

Disaggregation of Revenue from Contracts with Customers and Intersegment Revenue

The company’s revenues are from the following major commodities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended June 30

​

2025

​

2024

($ millions)

​

North America

​

International

​

Total

​

North America

​

International

​

Total

Oil Sands

​

​

​

​

​

​

​

​

​

​

​

Synthetic crude oil and diesel

3 722

​

—

​

3 722

​

4 614

​

—

​

4 614

Bitumen

2 718

​

—

​

2 718

​

2 818

​

—

​

2 818

​

​

6 440

​

—

​

6 440

​

7 432

​

—

​

7 432

Exploration and Production

​

​

​

​

​

​

​

​

​

​

​

​

Crude oil and natural gas liquids

​

545

​

120

​

665

​

437

​

236

​

673

​

​

545

​

120

​

665

​

437

​

236

​

673

Refining and Marketing

​

​

​

​

​

​

​

​

​

​

​

​

Gasoline

​

3 286

​

—

​

3 286

​

3 519

​

—

​

3 519

Distillate

​

3 440

​

—

​

3 440

​

3 813

​

—

​

3 813

Other

​

584

​

—

​

584

​

725

​

—

​

725

​

​

7 310

​

—

​

7 310

​

8 057

​

—

​

8 057

Corporate and Eliminations

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1 666)

​

—

​

(1 666)

​

(2 148)

​

—

​

(2 148)

Total Revenue from Contracts with Customers

12 629

​

120

​

12 749

​

13 778

​

236

​

14 014

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six months ended June 30

​

2025

​

2024

($ millions)

North America

​

International

​

Total

​

North America

​

International

​

Total

Oil Sands

​

​

​

​

​

​

​

​

​

​

​

Synthetic crude oil and diesel

8 578

​

—

​

8 578

​

9 474

​

—

​

9 474

Bitumen

5 003

​

—

​

5 003

​

4 880

​

—

​

4 880

​

​

13 581

​

—

​

13 581

​

14 354

​

—

​

14 354

Exploration and Production

​

​

​

​

​

​

​

​

​

​

​

​

Crude oil and natural gas liquids

​

1 015

​

379

​

1 394

​

1 046

​

392

​

1 438

​

​

1 015

​

379

​

1 394

​

1 046

​

392

​

1 438

Refining and Marketing

​

​

​

​

​

​

​

​

​

​

​

​

Gasoline

​

6 534

​

—

​

6 534

​

6 509

​

—

​

6 509

Distillate

​

7 187

​

—

​

7 187

​

7 774

​

—

​

7 774

Other

​

1 217

​

—

​

1 217

​

1 387

​

—

​

1 387

​

​

14 938

​

—

​

14 938

​

15 670

​

—

​

15 670

Corporate and Eliminations

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(3 834)

​

—

​

(3 834)

​

(4 143)

​

—

​

(4 143)

Total Revenue from Contracts with Customers

25 700

​

379

​

26 079

​

26 927

​

392

​

27 319

​

​

2025 Second Quarter   Suncor Energy Inc.   47

​

​

Notes to the Consolidated Financial Statements

4. Other (Loss) Income

Other (loss) income consists of the following:

​

​	​	​	​	​	​	​	​	​
​		Three months ended June 30			​	Six months ended June 30
($ millions)		2025	​	2024	​	2025	​	2024
Energy trading and risk management	​	(42)	​	83	​	27	​	139
Investment and interest income (1)	​	(62)	​	68	​	(6)	​	107
Insurance proceeds and other		7		—	​	12	​	53
​		(97)		151	​	33		299

​

​

(1) The three and six months ended June 30, 2025, includes a $95 million write-down of an equity investment, within the Corporate segment and a $41 million write-down of an equity investment, within the Refining and Marketing segment.

​

​

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 June 30			​	Six months ended June 30
($ millions)		2025	​	2024	​	2025	​	2024
Equity-settled plans		3		4	​	7	​	7
Cash-settled plans		17		124	​	158	​	280
​		20	​	128	​	165	​	287

​

​

​

48 2025 Second Quarter   Suncor Energy Inc.

​

​

6. Financing Expenses

​

​	​	​	​	​	​	​	​	​
​		Three months ended June 30			​	Six months ended June 30
($ millions)		2025	​	2024	​	2025	​	2024
Interest on debt		151	​	184	​	299	​	365
Interest on lease liabilities	​	65	​	69	​	138	​	125
Capitalized interest		(59)	​	(83)	​	(117)	​	(157)
Interest expense		157	​	170	​	320	​	333
Interest on partnership liability	​	11	​	12	​	23	​	24
Interest on pension and other post-retirement benefits		—	​	5	​	(1)	​	11
Accretion		144	​	149	​	287	​	294
Foreign exchange (gain) loss on U.S. dollar denominated debt and leases		(461)	​	103	​	(475)	​	323
Operational foreign exchange and other	​	143	​	(35)	​	173	​	(164)
​		(6)		404	​	327	​	821

​

​

7. Earnings Per Common Share

​

​	​	​	​	​	​	​	​	​
​		Three months ended June 30			​	Six months ended June 30
($ millions)		2025	​	2024	​	2025	​	2024
Net earnings		1 134		1 568	​	2 823	​	3 178
​	​	​	​	​	​	​	​	​
(millions of common shares)	​	​	​	​	​	​	​	​
Weighted average number of common shares		1 225		1 283	​	1 232	​	1 286
Dilutive securities:	​	​	​	​	​	​	​	​
Effect of share options		1		2	​	1	​	2
Weighted average number of diluted common shares		1 226		1 285	​	1 233		1 288
​	​	​	​	​	​	​	​	​
(dollars per common share)	​	​	​	​	​	​	​	​
Basic and diluted earnings per share		0.93		1.22	​	2.29	​	2.47

​

​

8. Normal Course Issuer Bid

Share Repurchase Programs

​

​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	Maximum	​	Maximum	​	Number of
​		Commencement	​	​		Shares for		Shares for		Shares
(thousands of common shares)	​	Date	​	Expiry	​	Repurchase	​	Repurchase (%)	​	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	​	19 643

​

​

2025 Second Quarter   Suncor Energy Inc.   49

​

​

Notes to the Consolidated Financial Statements

The following table summarizes the share repurchase activities during the period:

​

​	​	​	​	​	​	​	​	​
​		Three months ended June 30			​	Six months ended June 30
($ millions, except as noted)	​	2025	​	2024	​	2025	​	2024
Share repurchase activities (thousands of common shares)					​	​	​	​
Shares repurchased		14 993		15 561	​	28 593	​	21 999
Amounts charged to:	​	​	​	​	​	​	​	​
Share capital		256		264	​	488	​	372
Retained earnings	​	494	​	561	​	1 012	​	746
Share repurchase cost before tax	​	750	​	825	​	1 500	​	1 118
Retained earnings - share buyback tax payable		15		15	​	28	​	15
Share repurchase cost		765		840	​	1 528		1 133

​

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:

​

​	​	​	​	​
​	​	June 30	​	December 31
($ millions)		2025		2024
Amounts charged to:	​	​	​	​
Share capital		100		104
Retained earnings		198		209
Liability for share purchase commitment		298		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	​	71
Contracts realized during the period - (gain)	​	(205)
Fair value outstanding at June 30, 2025	​	(52)

​

​

50 2025 Second 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 June 30, 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 June 30, 2025:

​	​	​	​	​	​	​	​	​
($ millions)		Level 1		Level 2		Level 3		Total Fair Value
Accounts receivable		59	​	58		—		117
Accounts payable		(119)	​	(50)		—		(169)
​		(60)		8		—		(52)

​

During the second quarter of 2025, there were no transfers between Level 1 and Level 2 fair value measurements.

Non-Derivative Financial Instruments

At June 30, 2025, the carrying value of fixed-term debt accounted for under amortized cost was $9.9 billion (December 31, 2024 – $10.3 billion) and the fair value was $9.7 billion (December 31, 2024 – $10.1 billion). The estimated fair value of long-term debt is based on pricing sourced from market data.

​

10. Provisions

Suncor’s decommissioning and restoration provision decreased by $67 million for the six months ended June 30, 2025. The decrease was primarily due to an increase in the credit-adjusted risk-free rate to 4.90% (December 31, 2024 – 4.80%).

​

11. Pensions and Other Post-Retirement Benefits

For the six months ended June 30, 2025, the actuarial gain on employee retirement benefit plans was $244 million (net of taxes of $77 million), due to an increase in the discount rate to 4.80% (December 31, 2024 – 4.60%) and strong asset performance.

​

2025 Second Quarter   Suncor Energy Inc.   51

​