EX-99.2 3 su-20250930xex99d2.htm EX-99.2

​

Consolidated Statements of Comprehensive Income

(unaudited)

​

​	​	​	​	​	​	​	​	​
​	​	Three months ended September 30			​	Nine months ended September 30
($ millions)		2025	​	2024	​	2025	​	2024
Revenues and Other Income		​	​	​	​
Gross revenues (note 3)		13 565	​	13 905	​	39 644		41 224
Less: royalties		(1 013)	​	(1 017)	​	(2 778)	​	(3 066)
Other income (note 4)		115	​	174	​	148		473
​		12 667		13 062	​	37 014		38 631
Expenses		​	​	​	​	​	​	​
Purchases of crude oil and products		4 471	​	4 799	​	13 872		14 319
Operating, selling and general		3 270	​	3 055	​	9 730		9 648
Transportation and distribution		513	​	484	​	1 450		1 332
Depreciation, depletion, amortization and impairment		1 731	​	1 791	​	5 103		5 103
Exploration		6	​	8	​	132		82
Gain on disposal of assets		(17)	​	(11)	​	(17)		(13)
Financing expenses (note 6)		476	​	242	​	803		1 063
​		10 450		10 368	​	31 073		31 534
Earnings before Income Taxes		2 217		2 694	​	5 941		7 097
​		​	​	​	​	​	​	​
Income Tax Expense (Recovery)		​	​	​	​	​	​	​
Current		412	​	621	​	1 472		2 051
Deferred		186	​	53	​	27		(152)
​		598	​	674	​	1 499		1 899
Net Earnings		1 619	​	2 020	​	4 442		5 198
​		​	​	​	​	​	​	​
Other Comprehensive Income (Loss)		​	​	​	​	​	​	​
Items That May be Subsequently Reclassified to Earnings:		​	​	​	​	​	​	​
Foreign currency translation adjustment		33	​	(52)	​	(147)		(57)
Items That Will Not be Reclassified to Earnings:		​	​	​	​	​	​	​
Actuarial gain (loss) on employee retirement benefit plans, net of income taxes (note 11)		304	​	(10)	​	548	​	480
Other Comprehensive Income (Loss)		337	​	(62)	​	401		423
​		​	​	​	​	​	​	​
Total Comprehensive Income		1 956	​	1 958	​	4 843		5 621
​		​	​	​	​	​	​	​
Per Common Share (dollars) (note 7)		​	​	​	​	​	​	​
Net earnings – basic and diluted		1.34	​	1.59	​	3.63		4.06
Cash dividends		0.57	​	0.55	​	1.71		1.65

​

See accompanying notes to the condensed interim consolidated financial statements.

​

​

​

40   2025 Third Quarter   Suncor Energy Inc.

​

​

Consolidated Balance Sheets

(unaudited)

​

​	​	​	​	​
​	​	September 30	​	December 31
($ millions)		2025	​	2024
Assets		​	​	​
Current assets		​	​	​
Cash and cash equivalents		2 944		3 484
Accounts receivable		5 180		5 245
Inventories		5 137		5 041
Income taxes receivable		671		518
Total current assets		13 932		14 288
Property, plant and equipment, net		68 061		68 512
Exploration and evaluation		1 742		1 742
Other assets (note 11)		2 132		1 559
Goodwill and other intangible assets		3 468		3 503
Deferred income taxes		138		180
Total assets		89 473		89 784
​		​	​	​
Liabilities and Shareholders’ Equity		​	​	​
Current liabilities		​	​	​
Current portion of long-term debt		1 480		997
Current portion of long-term lease liabilities		556	​	599
Accounts payable and accrued liabilities		7 345		8 161
Current portion of provisions		871		958
Income taxes payable		85		32
Total current liabilities		10 337		10 747
Long-term debt		8 611		9 348
Long-term lease liabilities		3 805	​	3 745
Other long-term liabilities		1 513		1 502
Provisions (note 10)		11 901		11 931
Deferred income taxes		8 143		7 997
Equity		45 163		44 514
Total liabilities and shareholders’ equity		89 473		89 784

​

See accompanying notes to the condensed interim consolidated financial statements.

​

​

​

2025 Third Quarter   Suncor Energy Inc.   41

​

​

Consolidated Statements of Cash Flows

(unaudited)

​

​	​	​	​	​	​	​	​	​
​	​	Three months ended September 30			​	Nine months ended September 30
($ millions)		2025	​	2024	​	2025	​	2024
Operating Activities		​	​	​	​	​	​	​
Net Earnings		1 619	​	2 020	​	4 442		5 198
Adjustments for:		​	​	​	​	​	​	​
Depreciation, depletion, amortization and impairment		1 731	​	1 791	​	5 103		5 103
Deferred income tax expense (recovery)		186	​	53	​	27		(152)
Accretion (note 6)		145	​	150	​	432		444
Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt (note 6)		186	​	(123)	​	(289)		200
Change in fair value of financial instruments and trading inventory		(90)	​	(107)	​	40		(63)
Gain on disposal of assets		(17)	​	(11)	​	(17)		(13)
Loss on extinguishment of long-term debt (note 6)		—	​	26	​	—	​	26
Share-based compensation		181	​	65	​	(116)		(211)
Settlement of decommissioning and restoration liabilities		(147)	​	(114)	​	(353)		(349)
Other		37	​	37	​	296		170
(Increase) decrease in non-cash working capital		(46)	​	474	​	(705)		524
Cash flow provided by operating activities		3 785	​	4 261	​	8 860		10 877
Investing Activities		​	​	​	​	​	​	​
Capital and exploration expenditures		(1 484)	​	(1 555)	​	(4 337)		(4 913)
Proceeds from disposal of assets		18	​	13	​	18		36
Other investments		(8)	​	(22)	​	(15)		(25)
(Increase) decrease in non-cash working capital		(137)	​	(107)	​	(202)		108
Cash flow used in investing activities		(1 611)	​	(1 671)	​	(4 536)		(4 794)
Financing Activities		​	​	​	​	​	​	​
Net decrease in short-term debt		—	​	(36)	​	—		(503)
Repayment of long-term debt		—	​	(321)	​	—		(321)
Lease liability payments		(163)	​	(123)	​	(518)		(328)
Issuance of common shares under share option plans		65	​	37	​	152		344
Repurchase of common shares(1) (note 8)		(750)	​	(790)	​	(2 298)		(1 908)
Distributions relating to non-controlling interest		(4)	​	(4)	​	(12)	​	(12)
Dividends paid on common shares		(688)	​	(690)	​	(2 090)		(2 090)
Cash flow used in financing activities		(1 540)	​	(1 927)	​	(4 766)		(4 818)
Increase (Decrease) in Cash and Cash Equivalents		634	​	663	​	(442)		1 265
Effect of foreign exchange on cash and cash equivalents		41	​	(32)	​	(98)		11
Cash and cash equivalents at beginning of period		2 269	​	2 374	​	3 484		1 729
Cash and Cash Equivalents at End of Period		2 944	​	3 005	​	2 944		3 005
Supplementary Cash Flow Information		​	​	​	​	​	​	​
Interest paid		158	​	133	​	599		585
Income taxes paid		439	​	538	​	1 436		1 522

​

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

​

See accompanying notes to the condensed interim consolidated financial statements.

​

42   2025 Third 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		—	​	—	​	—	​	5 198	​	5 198		—
Foreign currency translation adjustment		—	​	—	​	(57)	​	—	​	(57)		—
Actuarial gain on employee retirement benefit plans, net of income taxes of $151		—	​	—	​	—	​	480	​	480		—
Total comprehensive income		—		—		(57)		5 678		5 621		—
Issued under share option plans		386	​	(52)	​	—	​	—	​	334		8 488
Repurchase of common shares for cancellation(1) (note 8)		(628)	​	—	​	—	​	(1 309)	​	(1 937)		(37 043)
Change in liability for share repurchase commitment		(37)	​	—	​	—	​	(98)	​	(135)		—
Share-based compensation		—	​	10	​	—	​	—	​	10		—
Dividends paid on common shares		—	​	—	​	—	​	(2 090)	​	(2 090)		—
At September 30, 2024		21 382	​	527	​	991	​	22 182	​	45 082	​	1 261 545
At December 31, 2024		21 121		520		1 201		21 672		44 514		1 244 332
Net earnings		—	​	—	​	—	​	4 442	​	4 442		—
Foreign currency translation adjustment		—	​	—	​	(147)	​	—	​	(147)		—
Actuarial gain on employee retirement benefit plans, net of income taxes of $172 (note 11)		—	​	—	​	—	​	548	​	548	​	—
Total comprehensive income		—	​	—	​	(147)	​	4 990	​	4 843		—
Issued under share option plans		178	​	(26)	​	—	​	—	​	152		3 775
Repurchase of common shares for cancellation(1) (note 8)		(720)	​	—	​	—	​	(1 571)	​	(2 291)		(42 193)
Change in liability for share repurchase commitment (note 8)		19	​	—	​	—	​	6	​	25		—
Share-based compensation (note 5)		—	​	10	​	—	​	—	​	10		—
Dividends paid on common shares		—	​	—	​	—	​	(2 090)	​	(2 090)		—
At September 30, 2025		20 598		504		1 054		23 007		45 163		1 205 914

​

(1) Includes $41 million of taxes on share repurchases for the nine months ended September 30, 2025 (September 30, 2024 – $29 million).

​

​

See accompanying notes to the condensed interim consolidated financial statements.

​

2025 Third 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 (the “IFRS Accounting Standards”) 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 Third 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 September 30	​	Oil Sands			​	Production			​	Marketing			​	Eliminations			​	Total
($ millions)		2025		2024		2025		2024		2025		2024		2025		2024		2025		2024
​		​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Revenues and Other Income		​	​	​	​	​	​	​	​	​		​	​	​		​	​	​	​	​
Gross revenues		4 822		5 083		665		718		8 077		8 104		1		—		13 565		13 905
Intersegment revenues		2 228		2 162		—		—		8		20		(2 236)		(2 182)		—		—
Less: Royalties		(880)		(923)		(133)		(94)		—		—		—		—		(1 013)		(1 017)
Operating revenues, net of royalties		6 170		6 322		532		624		8 085		8 124		(2 235)		(2 182)		12 552		12 888
Other income (loss)		106		15		(31)		14		25		80		15		65		115		174
​		6 276		6 337		501		638		8 110		8 204		(2 220)		(2 117)		12 667		13 062
Expenses				​				​				​				​				​
Purchases of crude oil and products		518		486		—		—		6 208		6 685		(2 255)		(2 372)		4 471		4 799
Operating, selling and general		2 329		2 223		149		139		602		592		190		101		3 270		3 055
Transportation and distribution		353		291		32		14		138		189		(10)		(10)		513		484
Depreciation, depletion, amortization and impairment		1 261		1 324		161		191		275		247		34		29		1 731		1 791
Exploration		6		7		—		1		—		—		—		—		6		8
(Gain) loss on disposal of assets		—		(9)		—		—		(16)		(3)		(1)		1		(17)		(11)
Financing expenses		171		196		17		21		25		15		263		10		476		242
​		4 638		4 518		359		366		7 232		7 725		(1 779)		(2 241)		10 450		10 368
Earnings (Loss) before Income Taxes		1 638		1 819		142		272		878		479		(441)		124		2 217		2 694
Income Tax Expense		​		​				​				​				​				​
Current		—		—		—		—		—		—		—		—		412		621
Deferred		—		—		—		—		—		—		—		—		186		53
​		—		—		—		—		—		—		—		—		598		674
Net Earnings		—		—		—		—		—		—		—		—		1 619		2 020
Capital and Exploration Expenditures		998		967		182		281		290		295		14		12		1 484		1 555

​

​

2025 Third Quarter   Suncor Energy Inc.   45

​

​

Notes to the Consolidated Financial Statements

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Nine months ended September 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		14 618		15 340		2 059		2 156		22 966		23 729		1		(1)		39 644		41 224
Intersegment revenues		6 013		6 259		—		—		57		65		(6 070)		(6 324)		—		—
Less: Royalties		(2 291)		(2 706)		(487)		(360)		—		—		—		—		(2 778)		(3 066)
Operating revenues, net of royalties		18 340		18 893		1 572		1 796		23 023		23 794		(6 069)		(6 325)		36 866		38 158
Other income (loss)		146		142		(17)		15		31		197		(12)		119		148		473
​		18 486		19 035		1 555		1 811		23 054		23 991		(6 081)		(6 206)		37 014		38 631
Expenses				​				​		​		​		​		​				​
Purchases of crude oil and products		1 940		1 811		—		—		18 099		18 792		(6 167)		(6 284)		13 872		14 319
Operating, selling and general		7 077		6 983		394		400		1 789		1 813		470		452		9 730		9 648
Transportation and distribution		984		875		90		63		404		424		(28)		(30)		1 450		1 332
Depreciation, depletion, amortization and impairment		3 708		3 744		499		545		792		727		104		87		5 103		5 103
Exploration		77		77		55		5		—		—		—		—		132		82
(Gain) loss on disposal of assets		—		(9)		—		—		(16)		(3)		(1)		(1)		(17)		(13)
Financing expenses		543		572		52		56		59		52		149		383		803		1 063
​		14 329		14 053		1 090		1 069		21 127		21 805		(5 473)		(5 393)		31 073		31 534
Earnings (Loss) before Income Taxes		4 157		4 982		465		742		1 927		2 186		(608)		(813)		5 941		7 097
Income Tax Expense (Recovery)				​				​		​		​		​		​				​
Current		—		—		—		—		—		—		—		—		1 472		2 051
Deferred		—		—		—		—		—		—		—		—		27		(152)
​		—	​	—	​	—	​	—	​	—	​	—	​	—	​	—	​	1 499	​	1 899
Net Earnings		—		—		—		—		—		—		—		—		4 442		5 198
Capital and Exploration Expenditures		2 856		3 399		620		652		832		838		29		24		4 337		4 913

​

​

46   2025 Third 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 September 30

​

2025

​

2024

($ millions)

North America

​

International

​

Total

​

North America

​

International

​

Total

Oil Sands

​

​

​

​

​

​

​

​

​

​

​

Synthetic crude oil and diesel

4 704

​

—

​

4 704

​

4 883

​

—

​

4 883

Bitumen

2 346

​

—

​

2 346

​

2 362

​

—

​

2 362

​

7 050

​

—

​

7 050

​

7 245

​

—

​

7 245

Exploration and Production

​

​

​

​

​

​

​

​

​

​

​

Crude oil and natural gas liquids

588

​

77

​

665

​

718

​

—

​

718

​

588

​

77

​

665

​

718

​

—

​

718

Refining and Marketing

​

​

​

​

​

​

​

​

​

​

​

Gasoline

3 452

​

—

​

3 452

​

3 645

​

—

​

3 645

Distillate

3 911

​

—

​

3 911

​

3 726

​

—

​

3 726

Other

722

​

—

​

722

​

753

​

—

​

753

​

8 085

​

—

​

8 085

​

8 124

​

—

​

8 124

Corporate and Eliminations

​

​

​

​

​

​

​

​

​

​

​

​

(2 235)

​

—

​

(2 235)

​

(2 182)

​

—

​

(2 182)

Total Revenue from Contracts with Customers

13 488

​

77

​

13 565

​

13 905

​

—

​

13 905

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine months ended September 30

​

2025

​

2024

($ millions)

North America

​

International

​

Total

​

North America

​

International

​

Total

Oil Sands

​

​

​

​

​

​

​

​

​

​

​

Synthetic crude oil and diesel

13 282

​

—

​

13 282

​

14 357

​

—

​

14 357

Bitumen

7 349

​

—

​

7 349

​

7 242

​

—

​

7 242

​

20 631

​

—

​

20 631

​

21 599

​

—

​

21 599

Exploration and Production

​

​

​

​

​

​

​

​

​

​

​

Crude oil and natural gas liquids

1 603

​

456

​

2 059

​

1 764

​

392

​

2 156

​

1 603

​

456

​

2 059

​

1 764

​

392

​

2 156

Refining and Marketing

​

​

​

​

​

​

​

​

​

​

​

Gasoline

9 986

​

—

​

9 986

​

10 154

​

—

​

10 154

Distillate

11 098

​

—

​

11 098

​

11 500

​

—

​

11 500

Other

1 939

​

—

​

1 939

​

2 140

​

—

​

2 140

​

23 023

​

—

​

23 023

​

23 794

​

—

​

23 794

Corporate and Eliminations

​

​

​

​

​

​

​

​

​

​

​

​

(6 069)

​

—

​

(6 069)

​

(6 325)

​

—

​

(6 325)

Total Revenue from Contracts with Customers

39 188

​

456

​

39 644

​

40 832

​

392

​

41 224

​

​

2025 Third Quarter   Suncor Energy Inc.   47

​

​

Notes to the Consolidated Financial Statements

4. Other Income

Other income consists of the following:

​

​	​	​	​	​	​	​	​	​
​		Three months ended September 30			​	Nine months ended September 30
($ millions)		2025	​	2024	​	2025	​	2024
Energy trading and risk management		12	​	68	​	39	​	207
Investment and interest income (1)		71	​	111	​	65	​	218
Insurance proceeds and other		32		(5)	​	44	​	48
​		115		174	​	148		473

​

​

(1) The nine months ended September 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 September 30			​	Nine months ended September 30
($ millions)		2025	​	2024	​	2025	​	2024
Equity-settled plans		3		3	​	10	​	10
Cash-settled plans		180		73	​	338	​	353
​		183	​	76	​	348	​	363

​

​

​

48   2025 Third Quarter   Suncor Energy Inc.

​

​

6. Financing Expenses

​

​	​	​	​	​	​	​	​	​
​		Three months ended September 30			​	Nine months ended September 30
($ millions)		2025	​	2024	​	2025	​	2024
Interest on debt		163	​	151	​	462	​	516
Interest on lease liabilities		66	​	64	​	204	​	189
Capitalized interest		(45)	​	(88)	​	(162)	​	(245)
Interest expense		184	​	127	​	504	​	460
Interest on partnership liability		11	​	12	​	34	​	36
Interest on pension and other post-retirement benefits		(1)	​	6	​	(2)	​	17
Accretion		145	​	150	​	432	​	444
Foreign exchange loss (gain) on U.S. dollar denominated debt and leases		186	​	(123)	​	(289)	​	200
Operational foreign exchange and other		(49)	​	44	​	124	​	(120)
Loss on extinguishment of long-term debt		—	​	26	​	—	​	26
​		476		242	​	803	​	1 063

​

​

In the third quarter of 2024, the company completed two partial redemptions, for US$196.0 million of its outstanding US$1.15 billion 6.50% notes due 2038, and for US$18.9 million of its outstanding US$900.0 million 6.80% notes due 2038, resulting in a debt extinguishment loss of $26 million ($23 million after tax).

7. Earnings Per Common Share

​

​	​	​	​	​	​	​	​	​
​		Three months ended September 30			​	Nine months ended September 30
($ millions)		2025	​	2024	​	2025	​	2024
Net earnings		1 619		2 020	​	4 442	​	5 198
​		​	​	​	​	​	​	​
(millions of common shares)		​	​	​	​	​	​	​
Weighted average number of common shares		1 211		1 269	​	1 225	​	1 280
Dilutive securities:		​	​	​	​	​	​	​
Effect of share options		1		2	​	1	​	2
Weighted average number of diluted common shares		1 212		1 271	​	1 226		1 282
​		​	​	​	​	​	​	​
(dollars per common share)		​	​	​	​	​	​	​
Basic and diluted earnings per share		1.34		1.59	​	3.63	​	4.06

​

​

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	​	33 243

​

​

2025 Third 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 September 30			​	Nine months ended September 30
($ millions, except as noted)	​	2025	​	2024	​	2025	​	2024
Share repurchase activities (thousands of common shares)					​	​	​	​
Shares repurchased		13 600		15 044	​	42 193	​	37 043
Amounts charged to:		​	​	​	​	​	​	​
Share capital		232		255	​	720	​	628
Retained earnings		518	​	535	​	1 530	​	1 280
Share repurchase cost before tax		750	​	790	​	2 250	​	1 908
Retained earnings - share buyback tax payable		13		14	​	41	​	29
Share repurchase cost		763		804	​	2 291		1 937

​

Under an automatic repurchase plan agreement with an independent broker, the company has recorded the following liability for share repurchases under its normal course issuer bid that may take place during its internal blackout periods:

​

​	​	​	​	​
​	​	September 30	​	December 31
($ millions)		2025		2024
Amounts charged to:		​	​	​
Share capital		85		104
Retained earnings		203		209
Liability for share purchase commitment		288		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		83
Contracts realized during the period - (gain)		(111)
Fair value outstanding at September 30, 2025		54

​

​

50   2025 Third 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 September 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 September 30, 2025:

​	​	​	​	​	​	​	​	​
($ millions)		Level 1		Level 2		Level 3		Total Fair Value
Accounts receivable		113	​	49		—		162
Accounts payable		(75)	​	(33)		—		(108)
​		38		16		—		54

​

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

Non-Derivative Financial Instruments

At September 30, 2025, the carrying value of fixed-term debt accounted for under amortized cost was $10.1 billion (December 31, 2024 – $10.3 billion) and the fair value was $10.0 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 $66 million for the nine months ended September 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 nine months ended September 30, 2025, the actuarial gain on employee retirement benefit plans was $548 million (net of taxes of $172 million), due to asset performance and an increase in the discount rate to 4.80% (December 31, 2024 – 4.60%).

​

2025 Third Quarter   Suncor Energy Inc.   51

​