Suncor Energy Reports Fourth Quarter 2024 Results
Suncor Energy (TSX: SU) (NYSE: SU) reported strong Q4 2024 results with several operational records. The company generated $3.5 billion in adjusted funds from operations and $1.9 billion in free funds flow. Notable achievements include record upstream production of 875,000 barrels per day, near-record refining throughput of 486,200 bbls/d, and record refined product sales of 613,300 bbls/d.
The company returned $1.7 billion to shareholders through $1 billion in share repurchases and $700 million in dividends. For the full year 2024, Suncor achieved $13.8 billion in adjusted funds from operations and returned $5.7 billion to shareholders. The company increased its quarterly dividend by 5% to $0.57 per share and reduced debt by $1.1 billion.
Q4 net earnings were $818 million ($0.65 per share), compared to $2.82 billion ($2.18 per share) in Q4 2023. The company has shifted to 100% return of excess funds to shareholders via share repurchases after achieving its $8 billion net debt target.
Suncor Energy (TSX: SU) (NYSE: SU) ha riportato risultati eccellenti per il quarto trimestre del 2024, con diversi record operativi. L'azienda ha generato 3,5 miliardi di dollari in fondi rettificati da operazioni e 1,9 miliardi di dollari in flusso di fondi gratuito. Tra i risultati notevoli, ci sono la produzione upstream record di 875.000 barili al giorno, un throughput di raffinazione quasi record di 486.200 bbls/giorno e vendite di prodotti raffinati record di 613.300 bbls/giorno.
L'azienda ha restituito 1,7 miliardi di dollari agli azionisti attraverso 1 miliardo di dollari in riacquisti di azioni e 700 milioni di dollari in dividendi. Per l'intero anno 2024, Suncor ha raggiunto 13,8 miliardi di dollari in fondi rettificati da operazioni e ha restituito 5,7 miliardi di dollari agli azionisti. L'azienda ha aumentato il dividendo trimestrale del 5% a 0,57 dollari per azione e ha ridotto il debito di 1,1 miliardi di dollari.
Gli utili netti del quarto trimestre sono stati di 818 milioni di dollari (0,65 dollari per azione), rispetto ai 2,82 miliardi di dollari (2,18 dollari per azione) del quarto trimestre del 2023. L'azienda ha cambiato strategia, passando a un ritorno del 100% dei fondi in eccesso agli azionisti tramite riacquisti di azioni, dopo aver raggiunto il suo obiettivo di debito netto di 8 miliardi di dollari.
Suncor Energy (TSX: SU) (NYSE: SU) reportó sólidos resultados en el cuarto trimestre de 2024, estableciendo varios récords operativos. La compañía generó 3.5 mil millones de dólares en fondos ajustados de operaciones y 1.9 mil millones de dólares en flujo de fondos libre. Logros notables incluyen una producción upstream récord de 875,000 barriles por día, un rendimiento de refinación casi récord de 486,200 bbls/d, y ventas de productos refinados récord de 613,300 bbls/d.
La empresa devolvió 1.7 mil millones de dólares a los accionistas mediante 1,000 millones de dólares en recompra de acciones y 700 millones de dólares en dividendos. Para todo el año 2024, Suncor alcanzó 13.8 mil millones de dólares en fondos ajustados de operaciones y devolvió 5.7 mil millones de dólares a los accionistas. La compañía aumentó su dividendo trimestral en un 5% a 0.57 dólares por acción y redujo su deuda en 1.1 mil millones de dólares.
Las ganancias netas del cuarto trimestre fueron de 818 millones de dólares (0.65 dólares por acción), en comparación con 2.82 mil millones de dólares (2.18 dólares por acción) en el cuarto trimestre de 2023. La compañía ha cambiado a un retorno del 100% de los fondos excedentes a los accionistas a través de recompra de acciones después de alcanzar su objetivo de deuda neta de 8 mil millones de dólares.
선코어 에너지 (TSX: SU) (NYSE: SU)는 2024년 4분기 강력한 실적을 발표하며 여러 운영 기록을 세웠습니다. 이 회사는 35억 달러의 조정 운영 자금을 생성하였으며 19억 달러의 자유 자금 흐름을 기록했습니다. 주목할 만한 성과로는 하루 87만 5천 배럴의 기록적인 상류 생산, 하루 48만 6천 200 배럴에 가까운 정유 처리량, 그리고 하루 61만 3천 300 배럴의 기록적인 정제 제품 판매가 있습니다.
회사는 17억 달러를 주주에게 환원했으며, 이 중 10억 달러는 자사주 매입에, 7억 달러는 배당금으로 지급되었습니다. 2024 전체 연간 기준으로 선코어는 138억 달러의 조정 운영 자금을 달성하였고 57억 달러를 주주에게 환원했습니다. 이 회사는 분기 배당금을 5% 인상하여 주당 0.57 달러로 조정하였으며, 11억 달러의 부채를 줄였습니다.
4분기의 순익은 8억 1천 8백만 달러(주당 0.65 달러)였으며, 2023년 4분기의 28억 2천만 달러(주당 2.18 달러)와 비교됩니다. 이 회사는 80억 달러의 순 부채 목표를 달성한 후 주주들에게 초과 자금의 100%를 자사주 매입 방식으로 환원하는 전략으로 전환하였습니다.
Suncor Energy (TSX: SU) (NYSE: SU) a reporté de solides résultats pour le quatrième trimestre 2024 avec plusieurs records opérationnels. La société a généré 3,5 milliards de dollars de fonds ajustés d'exploitation et 1,9 milliard de dollars de flux de fonds libre. Parmi les réalisations notables, on trouve une production en amont record de 875 000 barils par jour, un débit de raffinage presque record de 486 200 bbls/jour, et des ventes de produits raffinés record de 613 300 bbls/jour.
La société a retourné 1,7 milliard de dollars aux actionnaires via 1 milliard de dollars en rachats d'actions et 700 millions de dollars en dividendes. Pour l'année entière 2024, Suncor a atteint 13,8 milliards de dollars de fonds ajustés d'exploitation et a retourné 5,7 milliards de dollars aux actionnaires. L'entreprise a augmenté son dividende trimestriel de 5 % à 0,57 dollar par action et a réduit sa dette de 1,1 milliard de dollars.
Le bénéfice net du quatrième trimestre était de 818 millions de dollars (0,65 dollar par action), contre 2,82 milliards de dollars (2,18 dollars par action) au quatrième trimestre 2023. L'entreprise a opéré un changement vers un retour de 100 % des fonds excédentaires aux actionnaires par le biais de rachats d'actions après avoir atteint son objectif de dette nette de 8 milliards de dollars.
Suncor Energy (TSX: SU) (NYSE: SU) hat starke Ergebnisse für das 4. Quartal 2024 mit mehreren Betriebsrekorden gemeldet. Das Unternehmen generierte 3,5 Milliarden Dollar an bereinigten Betriebsfonds und 1,9 Milliarden Dollar an freiem Geldfluss. Zu den bemerkenswerten Leistungen gehören eine rekordverdächtige Produktion im Upstream von 875.000 Barrel pro Tag, eine beinahe rekordverdächtige Raffinerieauslastung von 486.200 bbls/d und rekordverdächtige Verkäufe von Raffinadeprodukten von 613.300 bbls/d.
Das Unternehmen gab 1,7 Milliarden Dollar an die Aktionäre zurück durch 1 Milliarde Dollar in Aktienrückkäufen und 700 Millionen Dollar in Dividenden. Für das gesamte Jahr 2024 erzielte Suncor 13,8 Milliarden Dollar an bereinigten Betriebsfonds und gab 5,7 Milliarden Dollar an die Aktionäre zurück. Das Unternehmen erhöhte seine vierteljährliche Dividende um 5 % auf 0,57 Dollar pro Aktie und reduzierte die Schulden um 1,1 Milliarden Dollar.
Der Nettogewinn im 4. Quartal betrug 818 Millionen Dollar (0,65 Dollar pro Aktie), verglichen mit 2,82 Milliarden Dollar (2,18 Dollar pro Aktie) im 4. Quartal 2023. Das Unternehmen hat sich entschieden, nach Erreichung seines Ziels von 8 Milliarden Dollar Nettoverschuldung 100 % der überschüssigen Mittel an die Aktionäre in Form von Aktienrückkäufen zurückzugeben.
- Record upstream production of 875,000 bbls/d with 103% upgrader utilization
- Record refined product sales of 613,300 bbls/d
- Generated $3.5 billion in adjusted funds from operations
- Increased quarterly dividend by 5% to $0.57 per share
- Reduced debt by $1.1 billion
- Achieved $2.3 billion increase in normalized free funds flow vs 2023
- Net earnings decreased to $818 million from $2.82 billion in Q4 2023
- Adjusted operating earnings declined to $1.566 billion from $1.635 billion year-over-year
- $212 million impairment charge against equity investment
Insights
Suncor's Q4 2024 results reveal a company firing on all cylinders, with operational excellence translating into robust financial performance. The standout achievement is the $2.3 billion increase in normalized free funds flow for 2024, demonstrating significant progress toward their three-year growth target of $3.3 billion.
Several operational records merit attention: the 875,000 bbls/d upstream production and 104% refinery utilization showcase exceptional asset optimization. This operational efficiency is particularly impressive given that total operating expenses decreased by
The company's strategic moves are equally noteworthy. The
The new cogeneration facility at Oil Sands Base Plant represents a strategic investment that should deliver dual benefits: lower operating costs through more efficient steam generation and reduced carbon intensity for Alberta's power grid. This positions Suncor favorably in an increasingly ESG-conscious market while maintaining operational efficiency.
Unless otherwise noted, all financial figures are unaudited, presented in Canadian dollars (Cdn$), 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 interest in Fort Hills and Syncrude.
Calgary, Alberta--(Newsfile Corp. - February 5, 2025) - Suncor Energy Inc. (TSX: SU) (NYSE: SU)
Fourth Quarter Highlights
- Generated
$3.5 billion in adjusted funds from operations and$1.9 billion in free funds flow. - Returned
$1.7 billion to shareholders, with$1 billion in share repurchases and$700 million in dividends. - Record upstream production of 875,000 barrels per day (bbls/d) with upgrader utilization of
103% . - Near record refining throughput of 486,200 bbls/d with refinery utilization of
104% . - Record refined product sales of 613,300 bbls/d, exceeding the previous record set in the third quarter.
- Shifted to
100% return of excess funds to shareholders via share repurchases in the fourth quarter.
"Suncor's fourth quarter was about finishing an exceptional year strong and building momentum for 2025," said Rich Kruger, Suncor's President and Chief Executive Officer. "Performance records were set across the company in both the quarter and for the full year, including records in upstream production, refining throughput, refined product sales and asset utilization. In addition, personnel safety and operational integrity were at or near best-ever annual performance levels. Suncor's people, company-wide, delivered by working in a team-based, results-oriented manner. Looking ahead in 2025, we remain committed to continuing to deliver high performance results with safe, reliable and cost-effective operations to achieve our free cash flow targets and create superior shareholder value."
Annual 2024 Highlights
- Increased normalized free funds flow by
$2.3 billion , relative to 2023. - Generated
$13.8 billion in adjusted funds from operations and$7.4 billion in free funds flow. - Returned
$5.7 billion to shareholders, with$2.9 billion in share repurchases and$2.8 billion in dividends. - Record upstream production of 827,600 bbls/d with record upgrader utilization of
98% . - Record refining throughput of 465,000 bbls/d with refinery utilization of
100% . - Record refined product sales of 600,400 bbls/d, with all four quarters in 2024 the highest-ever.
- Total operating, selling and general expenses down more than
$300 million versus 2023 despite significantly higher volumes.
Fourth Quarter Results
| Financial Highlights | Q4 | Q3 | Q4 |
| ($ millions, unless otherwise noted) | 2024 | 2024 | 2023 |
| Net earnings | 818 | 2 020 | 2 820 |
| Per common share(1) (dollars) | 0.65 | 1.59 | 2.18 |
| Adjusted operating earnings(2) | 1 566 | 1 875 | 1 635 |
| Per common share(1)(2) (dollars) | 1.25 | 1.48 | 1.26 |
| Adjusted funds from operations(2) | 3 493 | 3 787 | 4 034 |
| Per common share(1)(2) (dollars) | 2.78 | 2.98 | 3.12 |
| Cash flow provided by operating activities | 5 083 | 4 261 | 4 318 |
| Per common share(1) (dollars) | 4.05 | 3.36 | 3.34 |
| Capital and exploration expenditures | 1 498 | 1 467 | 1 482 |
| Free funds flow(2) | 1 923 | 2 232 | 2 482 |
| Dividend per common share(1) (dollars) | 0.57 | 0.55 | 0.55 |
| Share repurchases per common share(3) (dollars) | 0.80 | 0.62 | 0.29 |
| Returns to shareholders(4) | 1 713 | 1 480 | 1 079 |
| Net debt(2)(5) | 6 861 | 7 968 | 9 852 |
| Q4 | Q3 | Q4 | |
| Operating Highlights | 2024 | 2024 | 2023 |
| Total upstream production (mbbls/d) | 875.0 | 828.6 | 808.1 |
| Refinery utilization (%) | 104 | 105 | 98 |
(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 total cost of share repurchases divided by the weighted average number of shares outstanding for the applicable period.
(4) Includes dividends paid on common shares and repurchases of common shares.
(5) Beginning in the second quarter of 2024, the company revised the definition of net debt to exclude lease liabilities to better align with how management and industry monitor capital structure. Prior period comparatives have been restated to reflect this change.
Financial Results
Adjusted Operating Earnings Reconciliation(1)
| Q4 | Q3 | Q4 | |
| ($ millions) | 2024 | 2024 | 2023 |
| Net earnings | 818 | 2 020 | 2 820 |
| Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt | 514 | (123) | (199) |
| Unrealized gain on risk management activities | (16) | (28) | (9) |
| Loss on early repayment of long-term debt(2) | 144 | - | - |
| Asset impairment and derecognition(3) | 212 | - | 158 |
| Gain on significant acquisition | - | - | (1 125) |
| Income tax (recovery) expense on adjusted operating earnings adjustments | (106) | 6 | (10) |
| Adjusted operating earnings(1) | 1 566 | 1 875 | 1 635 |
(1) Non-GAAP financial measure. All reconciling items are presented on a before-tax basis and adjusted for income taxes in the income tax (recovery) expense on adjusted operating earnings adjustments line. See the Non GAAP Financial Measures section of this news release.
(2) During the fourth quarter of 2024, the company recorded a loss on extinguishment of long-term debt of
(3) During the fourth quarter of 2024, Suncor recorded an impairment of
- Suncor's adjusted operating earnings were
$1.56 6 billion ($1.25 per common share) in the fourth quarter of 2024, compared to$1.63 5 billion ($1.26 per common share) in the prior year quarter, with the decrease primarily due to lower refined product realizations, increased royalties due to higher heavy crude price realizations, and increased depreciation, depletion and amortization (DD&A) expense, partially offset by higher sales volumes. - Net earnings were
$818 million ($0.65 per common share) in the fourth quarter of 2024, compared to$2.82 0 billion ($2.18 per common share) in the prior year quarter. In addition to the factors impacting adjusted operating earnings, net earnings for the fourth quarter of 2024 and the prior year quarter were impacted by the reconciling items shown in the table above. - Adjusted funds from operations were
$3.49 3 billion ($2.78 per common share) in the fourth quarter of 2024, compared to$4.03 4 billion ($3.12 per common share) in the prior year quarter, and were primarily influenced by the same factors impacting adjusted operating earnings, as well as a larger tax benefit relating to the acquisition of TotalEnergies EP Canada Ltd. in the prior year quarter compared to the current quarter. - Cash flow provided by operating activities, which includes changes in non-cash working capital, increased to
$5.08 3 billion ($4.05 per common share) in the fourth quarter of 2024, compared to$4.31 8 billion ($3.34 per common share) in the prior year quarter. - Operating, selling and general (OS&G) expenses in the fourth quarter of 2024 were comparable to the prior year quarter, primarily due to decreased operations and maintenance costs and lower commodity costs being offset by the company's increased working interest in Fort Hills and increased share-based compensation.
Operating Results
| Q4 | Q3 | Q4 | |
| (mbbls/d, unless otherwise noted) | 2024 | 2024 | 2023 |
| Total Oil Sands bitumen production | 951.5 | 909.6 | 866.2 |
| SCO and diesel production | 572.5 | 543.2 | 495.6 |
| Inter-asset transfers and consumption | (28.9) | (29.4) | (19.9) |
| Upgraded production – net SCO and diesel | 543.6 | 513.8 | 475.7 |
| Bitumen production | 342.6 | 294.6 | 327.0 |
| Inter-asset transfers | (68.7) | (32.4) | (45.3) |
| Non-upgraded bitumen production | 273.9 | 262.2 | 281.7 |
| Total Oil Sands production | 817.5 | 776.0 | 757.4 |
| Exploration and Production | 57.5 | 52.6 | 50.7 |
| Total upstream production | 875.0 | 828.6 | 808.1 |
| Refinery utilization (%) | 104 | 105 | 98 |
| Refinery crude oil processed | 486.2 | 487.6 | 455.9 |
- Total Oil Sands bitumen production increased to a record 951,500 bbls/d in the fourth quarter of 2024, compared to 866,200 bbls/d in the prior year quarter, primarily due to record production at Firebag, the company's increased working interest at Fort Hills and strong mining performance.
- The company's net synthetic crude oil (SCO) production increased to a fourth quarter record of 543,600 bbls/d, compared to 475,700 bbls/d in the prior year quarter as the company leveraged its unparalleled regional integration and high reliability, and included record quarterly upgrader utilization of
105% at Syncrude and fourth quarter record upgrader utilization of102% at Oil Sands Base, compared to101% and83% , respectively, in the prior year quarter. The increase was also due to fewer planned maintenance activities at Oil Sands Base in the current quarter compared to the prior year quarter. - Non-upgraded bitumen production decreased to 273,900 bbls/d in the fourth quarter of 2024, compared to 281,700 bbls/d in the prior year quarter, due to higher upgrader availability more than offsetting increased bitumen production.
- Exploration and Production (E&P) production increased to 57,500 bbls/d in the fourth quarter of 2024, compared to 50,700 bbls/d in the prior year quarter, primarily due to the addition of production from Terra Nova, and increased production at Hibernia, partially offset by the absence of production from White Rose due to the asset life extension project.
- Strong operating performance resulted in utilization rates above
100% at all refineries for the second consecutive quarter. Overall utilization was104% and throughput was 486,200 bbls/d, compared to98% and 455,900 bbls/d, respectively, in the prior year quarter. - Achieved record refined product sales of 613,300 bbls/d in the fourth quarter of 2024, compared to 575,500 bbls/d in the prior year quarter, with the increase primarily due to higher refinery throughput and the benefit of the company's continued investment in its extensive retail and broader sales network.
Corporate and Strategy Updates
- Normalized free funds flow growth update. When adjusted for a US
$75 WTI Business Environment, 2024 normalized free funds flow was$7.37 3 billion,$2.3 billion higher than 2023 normalized free funds flow, demonstrating significant progress towards the three-year growth target of$3.3 billion . - New cogeneration facility begins operating. The company began operating a cogeneration facility to replace the coke-fired boilers at Oil Sands Base Plant, which provides the steam generation required for extraction and upgrading activities at a lower cost. The cogeneration facility also generates lower-carbon-intensive power for Alberta's power grid.
- Quarterly dividend increase. Suncor increased its quarterly dividend by approximately
5% to$0.57 per share. - Debt reduction of
$1.1 billion . Suncor repaid approximately$1.1 billion aggregate principal amount of certain series of the company's outstanding notes, capturing significant economic value and reducing future interest obligations. - Increase in shareholder capital allocation. With achievement of its
$8 billion net debt target, Suncor has moved to100% return of excess funds to shareholders via share repurchases.
Corporate Guidance Updates
There have been no changes to the 2025 corporate guidance ranges previously issued on December 12, 2024.
For further details and advisories regarding Suncor's 2025 corporate guidance, see www.suncor.com/guidance.
Normal Course Issuer Bid (NCIB)
| (thousands of common shares) | Commencement Date | Expiry | Maximum Shares for Repurchase | Maximum Shares for Repurchase (%) | Number of Shares Repurchased |
| 2022 NCIB | February 8, 2022 | February 7, 2023 | 71 650 | 5 | 26 232 |
| Amended 2022 NCIB | May 11, 2022 | February 7, 2023 | 143 500 | 10 | 91 912 |
| 2023 NCIB | February 17, 2023 | February 16, 2024 | 132 900 | 10 | 47 107 |
| 2024 NCIB | February 26, 2024 | February 25, 2025 | 128 700 | 10 | 56 892 |
Suncor's current NCIB will terminate on February 25, 2025. The company intends to make an application to renew the NCIB program subsequent to the expiration of its current NCIB.
Between February 26, 2024, and February 3, 2025, pursuant to Suncor's NCIB, Suncor repurchased 56,891,592 common shares on the open market, representing the equivalent of
The actual number of common shares that may be purchased under the NCIB and the timing of any such purchases will be determined by Suncor. The company believes that, depending on the trading price of its common shares and other relevant factors, repurchasing its own shares represents an attractive investment opportunity and is in the best interests of the company and its shareholders. The company does not expect the decision to allocate cash to repurchase shares will affect its long-term strategy.
Non-GAAP Financial Measures
Certain financial measures in this news release – namely adjusted funds from operations, adjusted operating earnings, free funds flow and 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 believe reduces comparability between periods.
| Three months ended December 31 | Oil Sands | Exploration and Production | Refining and Marketing | Corporate and Eliminations | Income Taxes | Total | ||||||
| ($ millions) | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Earnings (loss) before income taxes | 1 625 | 2 660 | 125 | 133 | 410 | 598 | (1 070) | (1) | - | - | 1 090 | 3 390 |
| Adjustments for: | ||||||||||||
| Depreciation, depletion, amortization and impairment | 1 390 | 1 214 | 162 | 99 | 269 | 256 | 30 | 29 | - | - | 1 851 | 1 598 |
| Accretion | 128 | 116 | 17 | 15 | 3 | 2 | - | - | - | - | 148 | 133 |
| Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt | - | - | - | - | - | - | 514 | (199) | - | - | 514 | (199) |
| Change in fair value of financial instruments and trading inventory | 1 | (65) | (7) | (1) | (53) | (30) | - | - | - | - | (59) | (96) |
| Bargain purchase gain and revaluations | - | (1 125) | - | - | - | - | - | - | - | - | - | (1 125) |
| (Gain) loss on disposal of assets | (6) | - | - | 8 | (5) | (2) | (1) | (3) | - | - | (12) | 3 |
| Loss on extinguishment of long-term debt | - | - | - | - | - | - | 144 | - | - | - | 144 | - |
| Share-based compensation | 55 | 30 | 4 | 4 | 26 | 10 | 69 | 24 | - | - | 154 | 68 |
| Settlement of decommissioning and restoration liabilities | (95) | (70) | (24) | (24) | (20) | (16) | - | - | - | - | (139) | (110) |
| Other | 28 | (109) | (3) | (6) | 8 | (7) | 183 | 160 | - | - | 216 | 38 |
| Current income tax (expense) recovery | - | - | - | - | - | - | - | - | (414) | 334 | (414) | 334 |
| Adjusted funds from (used in) operations | 3 126 | 2 651 | 274 | 228 | 638 | 811 | (131) | 10 | (414) | 334 | 3 493 | 4 034 |
| Change in non-cash working capital | 1 590 | 284 | ||||||||||
| Cash flow provided by operating activities | 5 083 | 4 318 | ||||||||||
| Twelve months ended December 31 | Oil Sands | Exploration and Production | Refining and Marketing | Corporate and Eliminations | Income Taxes | Total | ||||||
| ($ millions) | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Earnings (loss) before income taxes | 6 607 | 6 811 | 867 | 1 691 | 2 596 | 3 383 | (1 883) | (1 296) | - | - | 8 187 | 10 589 |
| Adjustments for: | ||||||||||||
| Depreciation, depletion, amortization and impairment | 5 134 | 4 902 | 707 | 483 | 996 | 934 | 117 | 116 | - | - | 6 954 | 6 435 |
| Accretion | 514 | 460 | 67 | 64 | 11 | 8 | - | - | - | - | 592 | 532 |
| Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt | - | - | - | - | - | - | 714 | (184) | - | - | 714 | (184) |
| Change in fair value of financial instruments and trading inventory | (117) | 27 | 3 | (3) | (8) | (29) | - | - | - | - | (122) | (5) |
| Bargain purchase gain and revaluations | - | (1 125) | - | - | - | - | - | - | - | - | - | (1 125) |
| Gain on disposal of assets | (15) | (39) | - | (600) | (8) | (28) | (2) | (325) | - | - | (25) | (992) |
| Loss on extinguishment of long-term debt | - | - | - | - | - | - | 170 | - | - | - | 170 | - |
| Share-based compensation | (47) | 71 | 12 | 12 | (20) | 25 | (2) | - | - | - | (57) | 108 |
| Settlement of decommissioning and restoration liabilities | (385) | (326) | (47) | (29) | (56) | (35) | - | - | - | - | (488) | (390) |
| Other | 151 | (56) | 1 | (6) | 27 | 10 | 207 | 143 | - | - | 386 | 91 |
| Current income tax expense | - | - | - | - | - | - | - | - | (2 465) | (1 734) | (2 465) | (1 734) |
| Adjusted funds from (used in) operations | 11 842 | 10 725 | 1 610 | 1 612 | 3 538 | 4 268 | (679) | (1 546) | (2 465) | (1 734) | 13 846 | 13 325 |
| Change in non-cash working capital | 2 114 | (981) | ||||||||||
| Cash flow provided by operating activities | 15 960 | 12 344 | ||||||||||
Free Funds Flow
Free funds flow 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 December 31 | Oil Sands | Exploration and Production | Refining and Marketing | Corporate and Eliminations | Income Taxes | Total | ||||||
| ($ millions) | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Adjusted funds from (used in) operations | 3 126 | 2 651 | 274 | 228 | 638 | 811 | (131) | 10 | (414) | 334 | 3 493 | 4 034 |
| Capital expenditures including capitalized interest(1) | (941) | (1 068) | (255) | (161) | (352) | (305) | (22) | (18) | - | - | (1 570) | (1 552) |
| Free funds flow (deficit) | 2 185 | 1 583 | 19 | 67 | 286 | 506 | (153) | (8) | (414) | 334 | 1 923 | 2 482 |
| Twelve months ended December 31 | Oil Sands | Exploration and Production | Refining and Marketing | Corporate and Eliminations | Income Taxes | Total | ||||||
| ($ millions) | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Adjusted funds from (used in) operations | 11 842 | 10 725 | 1 610 | 1 612 | 3 538 | 4 268 | (679) | (1 546) | (2 465) | (1 734) | 13 846 | 13 325 |
| Capital expenditures including capitalized interest(1) | (4 340) | (4 096) | (907) | (668) | (1 190) | (1 002) | (46) | (62) | - | - | (6 483) | (5 828) |
| Free funds flow (deficit) | 7 502 | 6 629 | 703 | 944 | 2 348 | 3 266 | (725) | (1 608) | (2 465) | (1 734) | 7 363 | 7 497 |
(1) Excludes capital expenditures related to assets previously held for sale of nil in the fourth quarter and twelve months ended December 31, 2024, compared to nil and
Normalized Free Funds Flow
Normalized free funds flow is a non-GAAP financial measure that is calculated by taking free funds flow and normalizing it for a US
| Business Environment - 2024 | |||||
| US | Actual | Delta | Adjusted funds from operations sensitivity (Cdn$ millions) | Adjusted funds from operations impact (Cdn$ millions) | |
| WTI (US$/bbl) | 75.00 | 75.70 | (0.70) | 200 | (140) |
| SYN-WTI (US$/bbl) | 2.50 | (0.60) | 3.10 | 50 | 155 |
| WCS-WTI (US$/bbl) | (16.00) | (14.70) | (1.30) | 10 | (13) |
| NYH 2-1-1 (US$/bbl) | 27.00 | 22.90 | 4.10 | 150 | 615 |
| Natural gas at AECO | 3.00 | 1.35 | 1.65 | (150) | (247) |
| Exchange rate average (US$/Cdn$) | 0.74 | 0.73 | 0.01 | (230) | (230) |
| 2024 Adjusted funds from operations business environment impacts | 140 | ||||
| 2024 Fort Hills acquisition tax benefit | (130) | ||||
| 10 | |||||
| Add: Adjusted funds from operations - actual | 13 846 | ||||
| 2024 Adjusted funds from operations - normalized | 13 856 | ||||
| Deduct: Capital expenditures including capitalized interest | (6 483) | ||||
| 2024 Free funds flow - normalized | 7 373 | ||||
| Business Environment - 2023 | |||||
| US | Actual | Delta | Adjusted funds from operations sensitivity (Cdn$ millions) | Adjusted funds from operations impact (Cdn$ millions) | |
| WTI (US$/bbl) | 75.00 | 77.60 | (2.60) | 200 | (520) |
| SYN-WTI (US$/bbl) | 2.50 | 2.00 | 0.50 | 50 | 25 |
| WCS-WTI (US$/bbl) | (16.00) | (18.60) | 2.60 | 20 | 52 |
| NYH 2-1-1 (US$/bbl) | 27.00 | 34.40 | (7.40) | 140 | (1 036) |
| Natural gas at AECO | 3.00 | 2.50 | 0.50 | (160) | (80) |
| Exchange rate average (US$/Cdn$) | 0.74 | 0.74 | - | (200) | - |
| 2023 Adjusted funds from operations business environment impacts | (1 559) | ||||
| 2023 Fort Hills acquisition tax benefit | (880) | ||||
| (2 439) | |||||
| Add: Adjusted funds from operations - actual | 13 325 | ||||
| 2023 Adjusted funds from operations - normalized | 10 886 | ||||
| Deduct: Capital expenditures including capitalized interest(1) | (5 828) | ||||
| 2023 Free funds flow - normalized | 5 058 | ||||
(1) Excludes capital expenditures related to assets previously held for sale of nil in the fourth quarter and twelve months ended December 31, 2024, compared to nil and
Net 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).
| December 31 | December 31 | |
| ($ millions, except as noted) | 2024 | 2023 |
| Short-term debt | - | 494 |
| Current portion of long-term debt | 997 | - |
| Long-term debt | 9 348 | 11 087 |
| Total debt(1) | 10 345 | 11 581 |
| Less: Cash and cash equivalents | 3 484 | 1 729 |
| Net debt (1) | 6 861 | 9 852 |
| Shareholders' equity | 44 514 | 43 279 |
| Total debt plus shareholders' equity | 54 859 | 54 860 |
| Total debt to total debt plus shareholders' equity(1) (%) | 18.9 | 21.1 |
| Net debt to net debt plus shareholders' equity(1) (%) | 13.4 | 18.5 |
(1) Beginning in the second quarter of 2024, the company revised the definition of net debt and total debt to exclude lease liabilities to better align with how management and industry monitor capital structure. Prior period comparatives have been restated to reflect this change.
Legal 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;and Suncor's intention to return
Forward-looking statements are based on Suncor's current expectations, estimates, projections and assumptions that were made by the company in light of its 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; 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.
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, Annual Report to Shareholders and Form 40-F, each dated March 21, 2024, Suncor's Report to Shareholders for the Fourth Quarter of 2023 dated February 21, 2024, 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 without charge from Suncor at 150 6th Avenue S.W., Calgary, Alberta T2P 3E3; by email request to invest@suncor.com; or by referring to suncor.com/FinancialReports or to the company's profile 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 fourth quarter 2024 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 fourth quarter results, visit suncor.com/webcasts.
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-CanadaTM retail and wholesale distribution networks (including Canada's Electric HighwayTM, 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 Toronto and New York stock exchanges.
For more information about Suncor, visit our web site at suncor.com
Media inquiries:
833-296-4570
media@suncor.com
Investor inquiries:
invest@suncor.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/239796
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