Generated $3.4 billion in adjusted funds from operations and $1.4 billion in free funds flow.
Returned over $1.5 billion to shareholders via $825 million in share repurchases and $698 million in dividends.
Strong upstream production of 771,000 barrels per day (bbls/d) and refinery throughput of 431,000 bbls/d.
Successfully executed approximately $800 million in second quarter turnaround activity safely, efficiently and ahead of schedule.
Record first half upstream production of 803,000 bbls/d and refinery throughput of 443,000 bbls/d.
First half upgrader utilization of 94% and refinery utilization of 95%, including the impacts of major turnaround activity.
"Following a strong first quarter, the second quarter was about execution and momentum. High quality execution of major upstream and downstream turnaround activities and maintaining momentum in targeted improvement priorities, including operational reliability and cost management," said Rich Kruger, Suncor's President and Chief Executive Officer. "With these clear priorities and a determination to consistently achieve the highest levels of performance, the organization delivered on its commitments; operating safely, cost-effectively, reliably and profitably. With the majority of 2024's planned maintenance complete, the company is very well positioned for a strong second half of the year."
Financial Results
Suncor's adjusted operating earnings increased to $1.626 billion ($1.27 per common share) in the second quarter of 2024, compared to $1.253 billion ($0.96 per common share) in the prior year quarter, primarily due to higher realized crude oil prices and increased Oil Sands sales volumes, as well as higher refinery production in Refining and Marketing (R&M), partially offset by higher royalties, lower Exploration and Production (E&P) volumes and lower refined product realizations.
Net earnings were $1.568 billion ($1.22 per common share) in the second quarter of 2024, compared to $1.879 billion ($1.44 per common share) in the prior year quarter. In addition to the factors impacting adjusted operating earnings, net earnings for the second quarter of 2024 and the prior year quarter were impacted by the reconciling items shown in the table above.
Adjusted funds from operations were $3.397 billion ($2.65 per common share) in the second quarter of 2024, compared to $2.655 billion ($2.03 per common share) in the prior year quarter, and were influenced by the same factors impacting adjusted operating earnings.
Cash flow provided by operating activities, which includes changes in non-cash working capital, was $3.829 billion ($2.98 per common share) in the second quarter of 2024, compared to $2.803 billion ($2.14 per common share) in the prior year quarter.
Suncor's total operating, selling and general (OS&G) expenses were $3.153 billion in the second quarter of 2024, compared to $3.440 billion in the prior year quarter, with the decrease primarily due to the restructuring charge of $275 million in the prior year quarter related to the company's workforce reductions, decreased operations and maintenance costs, and lower commodity costs, partially offset by the company's increased working interest in Fort Hills and higher share-based compensation expenses.
As at June 30, 2024, Suncor's net debt was $9.054 billion, a decrease of $498 million compared to March 31, 2024.
Operating Results
Total Oil Sands bitumen production increased to 834,400 bbls/d in the second quarter of 2024, compared to 814,300 bbls/d in the prior year quarter, primarily due to the company's increased working interest in Fort Hills, in addition to record second quarter gross bitumen production at Fort Hills, and record quarterly production at Firebag, partially offset by lower production at Oil Sands Base as a result of planned turnaround and maintenance activities.
The company's net synthetic crude oil (SCO) production was 461,700 bbls/d in the second quarter of 2024, representing combined upgrader utilization of 86%, compared to 505,000 bbls/d and 92% in the prior year quarter, reflecting higher planned maintenance in the current period and strong upgrader utilizations outside of planned maintenance activities.
The company leveraged its unparalleled regional integration to generate incremental value and maximize SCO production, through second highest ever quarterly SCO and bitumen inter-asset transfers of 62,500 bbls/d.
Non-upgraded bitumen production increased to 254,300 bbls/d in the second quarter of 2024, compared to 174,100 bbls/d in the prior year quarter, primarily due to the company's increased working interest in Fort Hills, lower demand for upgrader feedstock due to planned maintenance in the quarter and record production at Firebag.
E&P production during the second quarter of 2024 decreased compared to the prior year quarter, primarily due to the divestment of the company's U.K. portfolio, the absence of production from White Rose and lower production from Hebron, partially offset by the addition of production from Terra Nova.
Refinery crude throughput increased to 430,500 bbls/d and refinery utilization was 92% in the second quarter of 2024, compared to 394,400 bbls/d and 85% in the prior year quarter, reflecting strong utilizations at all refineries outside of planned turnaround activities in the current quarter, including a new quarterly utilization record at the company's Edmonton refinery of 108% and improved reliability at the company's Commerce City refinery compared to the prior year quarter. Following the completion of planned turnaround activities, the company's refineries finished the quarter strong, with average utilization of over 100% through June and into July.
Record quarterly refined product sales of 594,700 bbls/d in the second quarter of 2024, compared to 547,000 bbls/d in the prior year quarter, with the increase primarily due to the company leveraging its extensive domestic sales network and export channels in the current quarter, as well as the impacts of restart activities at the company's Commerce City refinery in the prior year quarter.
Corporate and Strategy Updates
Investor day was held May 21st. For further details, including the full transcript and presentation, see www.suncor.com. Highlights of the update include:
Free funds flow improvement of $3.3 billion per year. Suncor highlighted plans to grow free funds flow by $3.3 billion per year by 2026 compared to 2023 by lowering costs and capital, growing upstream production and improving downstream reliability and margins.
Grow upstream production by approximately 100,000 bbls/d. Suncor also detailed its plan to grow Upstream production by approximately 100,000 bbls/d from 2023 to 2026.
Share buybacks increased to 75% of excess funds. Suncor has increased share buybacks to approximately 75% of excess funds and will increase buybacks further to at or near 100% of excess funds when the revised net debt target of $8 billion is achieved.
Corporate Guidance Updates
There have been no changes to the corporate guidance ranges previously issued on December 5, 2023.
For further details and advisories regarding Suncor's 2024 corporate guidance, see www.suncor.com/guidance.
