Q3 2025 Suncor Energy Inc Earnings Call

November 5, 2025

See, no blood don't be on my man. You want to be better. Do what you can so baby.

But you want to be that just be there.

Operator: Good day, thank you for standing by. Welcome to the Suncor Energy Q3 2025 Financial Results Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Suncor Energy's Chief Financial Officer, Mr. Troy Little. Troy, please go ahead.

Good day and thank you for standing by. Welcome to the Suncor Energy. Third quarter 2025 Financial results call at this time. All participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session

To ask a question during the session, you will need to press star 1 1 on your telephone.

You will then hear an automated message. Advising your hand is raised to withdraw your question. Please press star 1 1 again.

Troy Little: Thank you, operator. Good morning. Welcome to Suncor Energy's Q3 Earnings Call. Please note that today's comments contain forward-looking information. Actual results may differ materially from the expected results because of various risk factors and assumptions that are described in our Q3 earnings release, as well as in our current annual information form, both of which are available on SEDAR, EDGAR, and our website, Suncor.com. Certain financial measures referred to in these comments are not prescribed by Canadian generally accepted accounting principles. For a description of these financial measures, please see our Q3 earnings release. We will start with comments from Rich Kruger, President and Chief Executive Officer, followed by Kris Smith, Executive Vice President.

Please be advised. That today's conference is being recorded, I would now like to hand the conference, over to your speaker, Suncor, Energy, Chief Financial Officer, Mr. Troy little Troy, please go ahead.

Thank you, operator, and good morning.

Welcome to Suncor Energy's third-quarter earnings call.

please note that today's comments contain forward-looking information,

actual results May differ materially from the expected results.

Because of various risk factors and assumptions that are described in our third quarter earnings release as well as in our current annual information form, both of which are available on Sedar, Edgar, and our website suncor.com.

Certain Financial measures referred to in these comments are not prescribed by Canadian generally accepted accounting principles.

For description of these Financial measures. Please see our third quarter earnings release.

We will start with comments from Rich Krueger president and chief executive officer, followed by Kris Smith.

Troy Little: Also on the call are Peter Zebedee, Executive Vice President, Oil Sands; Dave Oldreive, Executive Vice President, Downstream; Shelley Powell, Senior Vice President, Operational Improvement and Support Services; and Adam Albeldawi, Suncor's Senior Vice President of External Affairs. Following the formal remarks, we'll open the call up to questions. Now I'll hand it over to Rich to share his comments.

Executive Vice President.

Also on the call are Peter zebedy Executive Vice President of oil sands Dave, Aldridge Executive Vice President Downstream Shelley Powell senior vice president, operational Improvement and support services and Adam albo dawi Suncor, senior vice president of external affairs.

Rich Kruger: Our Q3 was about completing this year's major maintenance and building momentum for a strong finish to the year. We accomplished both. I'll highlight operational performance. Kris will cover financial. First, I'd like to make a few comments on safety. I've shared before that 2023 and 2024 were the safest years in Suncor's history. Well, the first 9 months of 2025 have been even safer. Across the board, fewer incidents, lower severity, both personnel safety and process safety. I strongly believe that being a great company in oil and gas starts with being a safe company. Our performance now places us among the safest oil and gas companies in North America. Upstream production, 870,000 barrels a day in Q3, far and away our best Q3 ever.

Following the formal remarks, we'll open the call up to questions now, I'll hands it over to Rich to share his comments.

Our third quarter was about completing this year's major maintenance in building momentum, for a strong finish to the year. We accomplished both I'll highlight operational performance. Crystal cover. Financial first, I'd like to make a few comments on safety.

I've shared before that 2023 and 2024 were the safest years in Suncor, history, for the first 9 months of 2025 have been eaten safer, AC, the board, fewer incidents, lower severity, both Personnel, safety and process safety.

Strongly believe that being a great company in oil and gas starts with being a Safe Company. Our performance. Now, places us among the safest oil and gas companies in North America.

Upstream production.

Rich Kruger: In fact, 41,000 barrels a day higher than our previous best, which was achieved last year. Also, within 5,000 barrels a day of our best quarter of any quarter ever. This was accomplished despite turnaround activity at both Firebag and Syncrude. A bit of context. Over the past 2 years, our Q3 has averaged 850,000 barrels a day, 145 higher than the prior 3-year average. I'll comment more on this performance shortly. Upgrader utilization, 102% for the quarter, with Base Plant following the successful coke drum replacement project at 106%.

870,000 barrels a day in the third quarter, Far and Away our best third quarter ever. In fact, 41,000 barrels, a day higher than our previous best, which was achieved last year.

Also within 5,000 barrels a day of our best quarter of any quarter ever. This was accomplished, despite turnaround activity at both firebag and sin crude

a bit of context over the past 2 years. Our third quarter has averaged 850,000 barrels a day, 145 higher than the prior 3 year average, I'll comment more on this performance shortly.

Rich Kruger: Year-to-date utilization at 96%, with both Base Plant and Syncrude exactly at that level. Refining throughput, 492,000 barrels a day in Q3, our best quarter of any quarter ever, exceeded our previous best, Q3 of last year. Q3 is typically the highest throughput quarter each year. That said, with back-to-back records in 2024 and now 2025, we've averaged 27,000 barrels a day or 6% higher than the prior 3-year period. Our Q3 results were achieved with an industry-leading 106% utilization. All refineries were effectively at 100% or higher, with records set at Sarnia and Montreal. Overall, year-to-date, we're at 101% on pace to beat our annual record of 100% set last year.

Upgrade our utilization 102% for the quarter with base plant, following the successful coat, drum replacement project, at a 106% year to date utilization at 96 with both base plant and sink crude, exactly at that level.

Refining throughput reached 492,000 barrels a day in the third quarter, our best quarter ever, exceeding our previous best from the third quarter of last year.

The third quarter is typically the highest throughput quarter each year. That said, with back-to-back records in 2024 and now 2025, we've averaged 27,000 barrels a day, which is 6% higher than the prior three-year period.

Our third quarter results were achieved with an industry-leading 106% utilization.

All refineries were effectively at 100% or higher, with records set at Sarnia and Montreal.

Rich Kruger: Product sales, 647,000 barrels a day in Q3. Our highest quarter of any quarter ever. 34,000 barrels a day or 6% higher than our previous best quarter, which was Q4 of last year. Recognizing all sales are not created equal, our highest-margin retail sales are up 8% year-over-year, while lower-margin export sales are down 11% year-over-year. Our strategy is to achieve both volumes and value growth. Operating costs. Year-to-date OSNG, CAD 9.7 billion, essentially flat with year-to-date 2024, despite 32,000 barrels a day higher upstream production, 14,000 barrels a day higher refining throughput, and 21,000 barrels a day higher product sales. Higher volumes, lower unit costs. Turnarounds. On our Q2 call, we shared Q2 turnarounds were completed at historically low cost and best ever durations.

Overall year to date. We're at 101%, on Pace to beat our annual record of 100% that last year.

Product sales, 400 6477 barrels a day in the third quarter. Again, our highest quarter of any quarter ever 34,000 barrels a day or 6% higher than our previous best quarter, which was the fourth quarter of last year.

Lower margin, export sales are down 11% year on year. Our strategy is to achieve both volumes and value growth.

Operating costs, year-to-date OS and G, 9.7 billion dollars, essentially flat with year to date, 24, despite 32,000 barrels a day, higher Upstream production.

14,000 barrels, a day, higher refining, throughput and 21,000 barrels. A day in higher products sales, higher volumes, lower unit costs,

Rich Kruger: Our Q3 turnarounds were completed equally well. A couple examples. Montreal Refinery, our hydrocracker and hydrogen plants. Previously, 55 days to complete the work, we budgeted it at 50, we completed it in 40. Going from industry fourth quartile to second quartile. Previously, it cost us CAD 80 million. We budgeted it at CAD 71 million. We completed it for CAD 62 million, again, going from industry fourth to second quartile. I'm really pleased to say it was completed without so much as a cut finger or a spilt barrel. Edmonton Refinery, synthetic crude unit, completed at an industry first quartile level. Firebag, Plant 92 in July, similar story, under budget, ahead of schedule. Syncrude, 8-1 coker, completed early in Q4 at best ever performance, cost, and schedule. Historically, this work took us 72 days. We had a very aggressive budget of 50, and we did it in 48.

Turnarounds on our second quarter. Call we shared second quarter, turnarounds were completed at historically low cost and best ever durations. Our third quarter, turnarounds were completed equally well, a couple of examples, Montreal Refinery, our hydrocracker and hydrogen plants. Previously, 55 days to complete the work. We budgeted it at 50, we completed it in 40 going from industry, fourth quartile to second quarter. Previously it cost us 800 million. We budgeted it at 71, we completed it for 62. Again, going from industry 4 to Second quartile and I'm really pleased to say it was completed without so much as a cut finger or a spilt Barrel.

Edmonton refineries synthetic crude unit. Completed at an industry first. Quartile level.

Rich Kruger: Literally, every single turnaround in 25 has been completed at lower cost and best ever durations. In aggregate, our 25 turnaround program is approaching industry second quartile in North America, with second quartile in North America representing best-in-class in Canada. The best news, we aren't done yet. We have tangible plans and a pathway to further improvement. 2025 is the second consecutive year our annual turnaround program was completed at under CAD 1 billion. Under CAD 1 billion is now Suncor's new norm versus CAD one and a quarter billion historically. Here, I'd like to kind of pause and make a comment or two on the context on our performance. For 2+ years, the past 8 or 9 quarters, we have announced performance records, safety, production, throughput, product sales, asset utilization, turnarounds, and so on.

Firebag plant 92 in July similar story. Under budget ahead of schedule sin crude 81 Coker completed early in the fourth quarter at best ever. Performance cost and schedule. Historically, this work took us 72 days. We had a very aggressive budget of 50 and we did it in 48.

Literally every single turnaround in 25 has been completed at lower costs and best ever durations in aggregate. Our 25 Tern program is a poetry approaching industry, second quartile in North America with second quartile and North America representing best-in-class in Canada and the best news we aren't done yet. We have tangible plans and a pathway to further Improvement 2025 is the second consecutive year. Our annual turnaround program was completed at under a billion dollars, under a billion dollars is now sor's new Norm versus 1 and a quarter billion historically.

To here, I'd like to kind of pause and make a comment or 2 on the a context on our Prof.

Rich Kruger: We've dramatically reduced our WTI breakeven and at the same time, reduced our net debt. We've materially grown free funds flow, fueling higher return of capital to shareholders. We've strengthened an already uniquely integrated high-quality asset base, consolidating ownership and achieving full control at Fort Hills, debottlenecking upstream and downstream capacities at little to no cost, expanding bitumen transfer capabilities between Base Plant upgraders and other assets, and capturing downstream synergies during and outside of turnarounds. The impact of our actions is most notably seen in our volumes, which are historically the lowest in the Q2 or Q3 of each year. However, starting in 2024 and now again in 2025, our Q2 and Q3 volumes have been higher, much higher, with significantly less variation versus historic Q1 and Q4. How? By design.

Performance for 2 plus years. The last, the past 8 or 9 quarters, we have announced performance, records safety production, throughput product, sales asset utilization turnarounds, and so on. We've dramatically reduced our WTI break even and at the same time, reduced our net debt, We materially Grown free funds flow, fueling higher return of capital to shareholders.

with strengthened and already uniquely integrated high-quality asset base consolidate and ownership and achieving full control of Port Hills, deep bond, lacking upstream, and downstream capacities at little to, no cost expanding expanding Benjamin, transfer capabilities between base, plant, upgraders, and other assets and capturing Downstream synergies during, and outside of turnarounds,

Rich Kruger: We are systematically reducing variation and elevating overall performance, embracing an industrial engineering mindset, improving systems, processes, practices, and tools, delivering higher, more predictable, more ratable results quarter after quarter. In turn, delivering higher, more predictable, more ratable cash flow quarter after quarter. A few illustrations. Q3 2025 AFFO, CAD 3.8 billion with WTI at $65 a barrel. Last time we had CAD 3.8 billion AFFO was Q3 2024 with WTI at $75 a barrel. Q3 free funds flow, CAD 2.3 billion, the highest operationally since Q4 2022 when WTI averaged $83 a barrel, $18 higher. Year-to-date free funds, CAD 5.2 billion, within CAD 200 million of 2024, despite oil prices being $11 a barrel lower.

The impact of our actions is most notably seen in our volumes, which are historically the lowest in the second, or third quarters of each year. However, starting in 24, and now again in 25, our second and third quarter volumes have been higher much higher with significantly less variation versus historic first, and fourth quarters, how by Design we are systematically reducing variation, and elevating overall performance, embracing an industrial engineering mindset, improving systems processes and tools.

Delivering higher more predictable, more readable results. Quarter after quarter in turn, delivering higher more predictable. More readable cash flow quarter after quarter. A few illustrations, third quarter, 2025 affo 3.8 billion dollars with WTI at 65 bucks. A barrel. Last time we had 3.8 billion, affo was a third quarter of 24 with WTI at 75 a barrel.

Third quarter, free funds flow 2.3 billion, the highest operationally since fourth quarter of 22, when WTI averaged 83 dollars a barrel, $18 higher.

Rich Kruger: Buybacks, CAD 250 million a month in 2025 every month, independent of oil price. CAD 250 million when WTI was $75 in January, CAD 250 million when WTI was $61 in May. Year-to-date, we bought back more than 42 million shares, 3.4% of our float at an average cost of CAD 53. Year-over-year, CAD 340 million more in buybacks despite oil prices being down $9 a barrel. At today's oil price, I strongly believe buying our stock is our best investment, and we intend to keep buying it month after month after month. The fact is, our business model and uniquely integrated asset base, now coupled with much higher performance, offers investors a unique, and I believe a premium value proposition. High performance with more predictable, more ratable cash flow, delivered with less relative dependence on oil price.

50 million a month in 2025, every month, independent of oil price. 250, when WTI was 75 in January, 250, when WTI was 61 in May.

Year to date, we bought back more than 43 42 million shares, 3.4% of our float and an average cost of 53 dollars.

Year on year 340 million more in BuyBacks despite oil prices being down 9 dollars a barrel. At today's oil price I strongly believe buying our stock is our best investment and we intend to keep buying it month after month. After month. The fact is our business model in uniquely integrated asset base.

Rich Kruger: With any large industrial complex, the highest performance occurs when systems and capabilities align in sync. What you are seeing is Suncor's unique integrated cash generation capabilities increasingly aligned and in sync with fundamental attributes that cannot be readily replicated. 2025 guidance. On our Q2 call, we revised capital guidance down, dropping the range midpoint by CAD 400 million to CAD 5.7 to 5.9 billion. Today, we believe we will come in at the low end of the revised range. Now, based on Q3 performance, we're revising 2025 volumes guidance up across the board. Production, revised range, 845,000 to 855,000, with our midpoint up 25,000 barrels a day. Refining, revised range, 470,000 to 475,000 barrels a day. The midpoint up 30,000 barrels a day.

Now coupled with much higher, performance offers investors a unique and I believe a premium value proposition high performance with more predictable, more rateable cash flow delivered with less relative dependence on oil price.

With any large industrial complex, the highest performance occurs when systems and capabilities aligned in sync. What you are seeing is Sun Kors unique integrated cast generation capabilities, increasingly aligned and in sync with fundamental attributes, that cannot be readily rep replicated.

2025 guidance on our second quarter. Call we revised Capital guidance, down, dropping the range midpoint by 400 million to 57 to 5.9 billion. Today, we we, we believe we will come in at the low end of the revised range.

Rich Kruger: Refined product sales, revised range, 610 to 620, midpoint up 45,000 barrels a day. We expect to exceed the high end of our original guidance for the second consecutive year. Now, I recognize the temptation to conclude, Well, we must have been conservative. Let me remind you, every single turnaround was completed at its shortest duration ever. Our massive coke drum replacement project was executed flawlessly. Upstream and downstream asset utilizations are once again at record levels. The result, every volume category in 2025 is expected to be a new annual best ever. Was our original guidance conservative or is today's Suncor simply continuing to outperform? I've said before, we are institutionalizing a culture that every barrel and every dollar matter. With that, I'll turn it to Kris.

Now based on third quarter performance, we're revising 20225 volumes guidance up across the board production revised range 845 to 855 with our midpoint up, 25,000 barrels, a day refining, revised range, 4770 to 475,000 barrels a day. The midpoint up, 30,000 barrels, a day, refined products, sales revised range 6. 10 to 620 midpoint up 45,000 barrels a day. We expect to exceed the high end of our original guidance for the second consecutive year. Now I recognize the temptation to conclude what we must have been conservative.

But let me remind you. Every single turnaround was completed at its shortest duration, ever our massive Coke drum replacement project was executed flawlessly and upstream and downstream asset. Utilizations are once again at record levels, the result every volume category in 2025 is expected to be a new annual best ever. So was our original guidance conservative

What is today's Suncor simply continuing to outperform?

Kris Smith: All right. Thanks, Rich. Good morning, everyone. Well, since this will be my final earnings call, I do wanna start by first thanking the investment community for your engagement, your questions, your partnership over these last three years. It's certainly been a privilege to engage with all of you during my time here at Suncor. I'll have a bit more to say on my retirement in a moment, but before I do, let's first talk about what is an exceptionally strong quarter. To begin with, I'm pleased to announce that the board of directors has approved a 5% dividend raise for an annualized dividend of CAD 2.40 per share, which is in keeping with our commitment to reliably and sustainably grow the dividend. This dividend increase is a direct result of the great progress our team has made in sustainably growing incremental free funds flow.

I've said before, we are institutionalizing a culture that every Barrel in every dollar matter with that, I'll turn it to Chris. All right. Thanks Rich. Good morning everyone.

Well, since this will be my final earnings call. I do want to start by first thanking the investment Community for your engagement, your questions, your partnership over these last 3 years.

And it's certainly been a privilege to engage with all of you during my time here at Suncor.

All the bit more to say my retirement in a moment. But before I do, let's first talk about what is an exceptionally strong quarter.

To begin with, I'm pleased to announce that the board of directors has approved a 5% dividend raise, for an annualized dividend of $2.40 per share, which is in keeping with our commitment to reliably and sustainably grow the dividend.

Kris Smith: Because of our steady return of cash to shareholders through our share buyback program, this increase in our dividend does not affect our WTI breakeven price. Our buyback program continues to be a key driver of per share dividend growth, creating a reliable flywheel for shareholder returns. It's yet another proof point that we are doing what we said we would do, delivering reliable, growing cash returns to our shareholders. The Q3 is also another strong quarter for shareholder returns, consistent with our disciplined capital allocation framework. We returned just over $1.4 billion to shareholders, including $688 million in dividends and $750 million in share buybacks. At the end of the Q3, we'd repurchased 3.4% of our equity float, supporting future dividend and free funds flow per share growth.

This dividend increase is a direct result of the great progress. Our team has made in sustainably, growing incremental, free funds flow

And because of our steady return of cash to shareholders, through our share buyback program. This increase in our dividend does not affect our WTI Break Even price.

Our buyback program continues to be a key driver of per per share dividend growth, creating a reliable flywheel for shareholder returns.

It's yet another proof point that we are doing. What we said, we would do, delivering reliable growing cash, returns to our shareholders.

The third quarter is also another strong quarter for shareholder returns, consistent with our disciplined capital allocation framework.

We returned just over $1.4 billion to shareholders, including $688 million in dividends and $750 million in share buybacks.

Kris Smith: Our approach remains unchanged. Drive growing free funds flow and returning 100% of excess funds to our shareholders on a full year basis. As Rich mentioned, our buybacks have been consistent despite commodity movements in 2025, a testament to the predictability and quality of this company's cash flows. Turning to the business environment in Q3, it was marked by slightly higher commodity prices with WTI averaging US $64.95 per barrel, which was up $1.25 per barrel versus the prior quarter. Notably, we saw an improvement in our Downstream 5-2-2-1 custom index of US $3.35 per barrel with improved cracking margins, averaging 31.20 in the quarter versus 27.85 in the prior quarter, and contributing to strong financial performance in our Downstream.

At the end of the quarter, we'd repurchased 3.4% of our Equity float supporting future dividend and free funds flow per share growth.

Our approach remains unchanged.

On a full year basis.

As Rich mentioned, our BuyBacks have been consistent, despite commodity movements in 2025 a testament to the predictability and quality of this company's cash flows.

Turning to the business environment in Q3, it was marked by slightly higher commodity prices with WTI averaging us 6495 per barrel, which is which was up. A125 per barrel versus the prior quarter.

Notably, we saw an improvement in our Downstream 5221 custom index.

Kris Smith: This improvement in commodity prices was partly offset by a stronger Canadian dollar, moving from $0.72 US to $0.73. We have seen some weakening of crude price as we moved into Q4, but our strong operations, coupled with our integrated business model, ensures the continued resiliency of our free funds flow through a lower commodity price environment, supporting continued strong cash returns to shareholders. Now, Rich talked a lot about records in his opening remarks. I do wanna highlight another one of those. This quarter, AFFO was CAD 3.8 billion or CAD 3.16 per share, and it was the second-highest Q3 AFFO in Suncor's history, despite much lower crude prices. You'd have to go back to Q3 2022 for the record, which was in a commodity price environment over $90.

Of us. 3.35 per barrel with improved cracking. Margins, averaging, 31.20 in the quarter versus 27.85 in the prior quarter and contributing to strong financial performance in our Downstream.

This Improvement in commodity prices was partly offset by a stronger Canadian dollar moving from 72 cents us to 73.

We have seen some weakening of crude prices as we moved into the fourth quarter, but our strong operations coupled, with our integrated business model ensures, the continued resiliency of our free funds flow through a lower commodity price environment supporting continued strong cash returns to shareholders.

Kris Smith: Operating earnings were CAD 1.8 billion or CAD 1.48 per share. How did we generate CAD 3.8 billion of AFFO with average WTI at $65? Well, to begin with, a number of those records that Rich was just talking about. Record Q3 upstream production of 870,000 barrels per day, including oil sands at 812,000, and E&P at 58,000. Record total bitumen production of 958,000 barrels per day. Record quarterly downstream with refining throughput at a whopping 492,000 barrels per day and utilization of 106%. Record quarterly refined product sales of 647,000 barrels per day. That's a lot of records.

Now, Rich talked a lot about records in his opening remarks. I do want to highlight another one of those: this quarter, AFFO was $3.8 billion, or $3.16 per share, and it was the second-highest Q3 AFFO in Suncor history, despite much lower crude prices. You'd have to go back to Q3 of 2022 for the record, which was in a commodity price environment over $90.

Operating earnings were 1.8 billion or a dollar 48%. Share.

How did we generate 3.8 billion dollars of afo with average WTI at 65?

Well, to begin with the number of those records, Rich was just talking about record Third Quarter upstream production of 870,000 barrels per day, including oil sands at 812,000 and E&P at 58,000.

Record total daily production of 90,958 thousand barrels per day, record quarterly downstream refining throughput at a whopping 492,000 barrels per day, and utilization of 106%. Additionally, we reported a record quarterly refined product sales of 647,000 barrels per day.

Kris Smith: Total OSNG expense in the quarter of CAD 3.3 billion is consistent with the first six months of the year, further demonstrating our operating leverage with higher volumes and flat absolute costs. Capital expenditures in the quarter totaled CAD 1.4 billion, including CAD 565 million of economic investments and CAD 874 million of sustaining and maintenance capital as we execute our fall turnaround schedule. Working capital use was CAD 183 million in the quarter, primarily reflecting the timing of payments. Net debt at quarter-end was CAD 7.1 billion, with net debt to trailing twelve-month AFFO at 0.5x. This is all about managing our balance sheet in the best interest of our shareholders while continuing to steadily return significant cash to them.

That's a lot of Records.

Total OS and G expense. In the quarter of 3.3 billion is consistent with the first 6 Months of the Year. Further demonstrating our operating, leverage with higher volumes and flat, absolute costs.

Capital expenditures in the quarter totaled $1.4 billion, including $565 million of economic investments and $874 million of sustaining and maintenance capital. As we execute our fall turnaround schedule,

Working capital use was 183 million in the quarter, primarily reflecting the time of payments and net debt. Quarter end was 7.1 billion with net debt to trailing 12-month afo at 0.5 times.

This is all about managing our balance sheet in the best interest of our shareholders. While, continuing to steadily return significant cash to them.

Kris Smith: I do want to spend a moment on what I believe is an underappreciated part of the Suncor story, our ability to consistently generate industry-leading margins across the value chain. We often emphasize the strength of our integrated model, allowing us to capture margin at every step, from extraction out of the ground, to the upgrader, to the refinery, and finally, to customers all along the value chain. Like our peers, we make bitumen, we transform those barrels into high-value products. Rich has previously described this as our ability to make craft cocktails for our customers. It's this competitive advantage, coupled with our strong logistics and trading capabilities, that enabled us to sell our oil sands barrels at 96% of average WTI over the quarter. Our downstream margin capture is consistently above industry benchmarks.

I do want to spend a moment on what I believe is an underappreciated part of the Suncor story: our ability to consistently generate industry-leading margins across the valley.

We often emphasize the strength of our integrated model allowing us to capture margin at every step, from extraction, out of the ground, to the upgrader to the refinery. And finally, to customers all along the value chain.

Like our peers, we make Benjamin, but then we transform those barrels into high-value products Rich's, previously described this, as our ability to make craft cocktails for our customers.

Kris Smith: This quarter was no exception, with margin capture at 92% of our custom 5-2-2-1 index, an index which represents the margin power of our downstream business. LIFO gross margin was US $28.87 versus an average New York Harbor and Chicago 3-2-1 crack of $26.39. Suncor is quite simply a margin machine, and this should be recognized as a core driver of this company's value proposition. Now, this is my last quarterly call with Suncor, and I do wanna take a moment to express what a privilege it's been to work at this company for the last 25 years, and to be part of this executive team for the last 13. Over my 25 years, I've worked in almost every part of this company, and I've seen its tremendous growth over that time to become Canada's premier integrated oil sands company.

Margin captures, consistently above industry benchmarks. This quarter was no exception with margin capture at 92% of our custom, 5221 index, an index, which represents the margin power of our Downstream business.

Lifo. Gross margin was US, 28.87 versus an average New York. Harbor in Chicago, 321 crack of 2639.

Sankar is quite simply a margin machine and this should be recognized as a core driver of this company's value proposition.

Now, this is my last quarterly call with Suncor. I do want to take a moment to express what a privilege it has been to work at this company for the last 25 years and to be part of this executive team for the last 13.

Kris Smith: I deeply believe in the strategic importance of the oil sands to the long-term prosperity of Canada and Alberta and as a source of long-term value for our shareholders. Know that Suncor will play a significant role in that future as it continues to grow its competitive advantage of maximizing value of this world-scale, long-life resource through its unmatched integrated value chain. I wanna thank the board, Rich, all my colleagues for their support over the years, and a thank you to all our employees for their dedication and drive to deliver results each and every day. As I said, it's been a real privilege to be a part of this team. I also wanna congratulate Troy on his appointment to the CFO chair and know that his experience and leadership will be critical in the years ahead. This company is so very well positioned for the future.

Over my 25 years. I've worked in almost every part of this company and I've seen its tremendous growth over that time to become Canada's. Premier integrated oil sands company.

I deeply believe in the Strategic importance of the oil, sands to the long-term prosperity of Canada and Alberta. And as a source of long-term value for our shareholders and know that Suncor will play a significant role in that future as it continues to grow. Its competitive advantage of maximizing value of this world scale, Long Life Resource through its unmatched, integrated value chain.

I want to thank the board Rich, all my colleagues for their support over the years, and to thank you to all our employees, for their dedication and drive to deliver results, each and every day.

As I said, it's been a real privilege to be a part of this team.

I also want to congratulate Troy on his appointment to the CFO chair and know that his experience in leadership will be critical in the years ahead.

Kris Smith: As I move on, I'm confident that Suncor will continue to deliver exceptional value to our shareholders through operational excellence, capital discipline, and a relentless focus on value creation. With that, for a final time, I'll turn it back over to Rich.

This company is so very well positioned for the future, and as I move on, I'm confident that Suncor will continue to deliver exceptional value to our shareholders through operational excellence, capital discipline, and a relentless focus on value creation.

Rich Kruger: Thanks, Kris. You know, first of all, I wanna thank you and congratulate you. You have been an integral part of our turnaround over the past few years. Your timing couldn't be better, wrapping up with the quarterly results. You know, for those on the phone, I've gotten to know Kris quite well. Outstanding executive, a class act, and I am proud to say a close friend. Kris, you'll be missed but not forgotten. We all wish you, Sandra, Ethan, and Katherine, I was gonna add Maisie, your golden lab, or golden retriever that I see walk by the house, the best in your future endeavors. I also wanna thank or congratulate Troy, our new CFO, and Adam, our new Senior VP of External Affairs, which includes investor relations.

Rich Kruger: Gentlemen, it was high performance that earned you these roles, and as you've heard me say, high performance results in even higher expectations. I look forward to continuing to work with you as we create shareholder value. With that, I'll turn it over to Troy.

And with that for our final time, I'll turn it back over to Rich. Thanks. Chris. You know, first of all, I want to thank thank you. And congratulate, you, you have been an integral part of our turnaround over the past few years. Uh, your timing couldn't be better wrapping up with a, uh, the quarterly results and, you know, and I'll for those on the phone. I've got to know Chris quite well, outstanding executive Class Act, and I am proud to say a close friend. Chris, you'll be missed, but not forgotten. We all wish you Sandra Ethan and Katherine. I was going to add Maisie, your gold, your golden lab, our golden retriever that I see walk by the house, uh, the best in your future endeavors. I also want to thank uh, our congratulate Troy, our new CFO, and Adam, our new uh, senior VP of external Affairs, which includes investor relations gentlemen, who is high performance that earned you these roles and as you've heard me say high performance results in even higher

Kris Smith: Thank you, Rich. I'll turn the call back to the operator to take some questions.

Troy Little: Thank you, Rich. I'll turn the call back to the operator to take some questions.

Higher expectations. I look forward to continuing to work with you as we create a shareholder value with that, I'll turn it over to Troy.

Thank you. Thank you Rich. I'll turn the call back to the operator, to take some questions.

Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster.

Thank you as a reminder, to ask a question. Please press star 1, 1 on your telephone, and wait, for your name to be announced.

To withdraw your question. Please press star 1 1, again please, stand by while we compile the Q&A roster.

Dave Oldreive: The first question comes from the line of Greg Pardy of RBC Capital Markets. Greg, please go ahead.

Greg Pardy: Yeah. Thanks. Good morning, I'd probably put your conference call commentary right up in that 1st quartile. Great rundown. First off, Kris, just all the very best. I sure hope our paths cross again soon. Big congratulations, I think, to Troy, and looking forward to working with Adam. Questions-wise, there are a couple of things kind of going through my head. Rich, I wanted to come back to maybe what the prevailing narrative was on Suncor before you got there, to some extent, which was, "Hey, old assets can't be fixed." I'd heard that from, you know, multiple quarters. How do you put that together perhaps with the maintenance interval extension that we're now seeing at U1, but also just the planning and turnaround and improved turnaround performance?

The first question comes from the line of Greg party of RBC Market or Capital markets. Greg, please go ahead.

Yeah. Thanks. Good morning. And, and I probably put your, uh, conference call commentary right up in that first quartile. So, so great, great rundown. So, first off Chris just all the very best. Uh, I sure. Hope our paths cross again soon and and big, congratulations. I think Detroit and looking forward to working with, um,

With Adam. So questions. Wise there are a couple of things kind of going through my head but but rich I wanted to come back to maybe what the prevailing narrative was on Suncor before he got there.

To some extent which was hey, old assets, can't be fixed and and I'd heard that from, you know, multiple quarters.

How do you?

Greg Pardy: It's a very broad question by definition, but I just wanted to get a better understanding as to how all those pieces fit together.

Rich Kruger: Well, two things, Greg. First of all, start it off, you know, I appreciate you saying first quartile 'cause that gives us room to improve. Our goal is best in class. Second thing, I think I'm living proof that age shouldn't directly correlate with performance in a negative way. But I'm gonna turn this over to the team to my left here in a moment because the entire way we're approaching our business, the depth, the analytics upon which we plan and perform our work is fundamentally different. Shelley, maybe I'll start with you, but then I'll ask, perhaps Peter and Dave to give a quick example in the business. But Shelley's kind of at the central point of how we've redesigned our entire approach to operational excellence.

Put that together, perhaps with, um, the maintenance interval extension that we're now seeing at U1, but also, just the planning and, and, and turnaround and improved turnaround performance. So, just, it's a very broad question by definition. But I, I just wanted to get a better understanding as to how all those pieces fit together.

Shelley Powell: Yeah. The first thing I would say on that, like, the intervals as well as just across performance, for us, it really starts with benchmarks. We wanna look and see what does global performance look like, and then we wanna be the best of the best in that bunch. We look at the best intervals that are being achieved across similar units in the globe, and then we do the work to understand what would it take for us to hit that benchmark. The work is really about making the right decision at the right time. Peter?

Living proof that age shouldn't directly correlate with performance in a negative way. So uh um but but I'm going to turn this over to a team until I left here in a moment because the the entire away we're approaching our business, the depth, the analytics upon, which we plan and perform our work is fundamentally different, so Shelley, maybe, again, I'll start with you, but then I'll ask, uh, perhaps, Peter. And Dave, to give a a quick example in the business but Shelley's kind of at the central point of how we've redesigned our entire approach to operational excellence. Yeah. And and the first thing I, I would say on that like the, the intervals as well as just a car.

Performance it for us. It really starts with benchmarks. We want to look in and see what does global performance look like. And then we want to be the best of the best in that Bunch. So we look at the best intervals that are being achieved across 7 will uh units in the globe and then we do the work to understand what would it take for us to hit that Benchmark? So the work is really about making the right decision at the right time.

Peter Zebedee: Yeah. I would also say, Greg, and you mentioned U1 there. We're moving the intervals at U1 to 6 years. That's really a function of the upgraded metallurgy on the drums, the investment that we put in with the coke drum replacement project this year, and coupled with some work on the coker frack section. That has enabled us, and we're confident in our ability to extend it to 6 years. It's a real success story, and you see that replicated across a broad variety of our upstream oil sands assets, both at Syncrude, Firebag, as well as at Fort Hills.

Peter. Yeah, I would also say Greg and you mentioned you won. There were were moving the intervals that you wanted to 6 years. That's really a function of the uh, upgraded Metallurgy on the drums, the investment that we put in with the coke drum replacement project this year and coupled with some work on the the Coker uh Frac section that has enabled us.

Dave Oldreive: Yeah, for the downstream, I'll use Edmonton as an example, but we're applying the same principles and the same logic across all of our assets. The downstream, it also starts with benchmarking. You know, for Edmonton, we just completed a sweet crude and hydrocracker turnaround block. That was an interval increase from 4 years to 5 years. Going forward, that unit will be on a 6-year interval, so that's a 50% increase over 2 cycles. In the spring of this year, we did a sour crude and hydrocracker block. That was an increase from 3 years to 4 years due to some improved catalysts we put in back in 2021. In this turnaround, we made some modifications to the distribution of flow over that catalyst, and we're planning on a 5-year interval going forward.

Confident, uh, and our, and our ability to extend it to 6 years. So it's, it's a real success story and you see that replicated across a broad a variety of our Upstream oil sands assets both at the same crude, uh, firebag as well as oils, yeah. For the downstream oil, use Edmonton as an example, but we're applying the same, uh, principles in the same, uh, logic across all of our assets. Uh, the downstream it also starts with benchmarking, you know, for Edmonton we just completed a sweet crude and hydrocracker turnaround block. Uh, that was already that was an interval increase from 4 years to 5 years and going forward that unit will be on a 6 year interval. So that's a 50% increase of

Dave Oldreive: That's 3 years to 5 years, a 65% improvement in turnaround interval over two cycles. We're applying that same logic across all the units at Edmonton, we're also applying that same principles across all of our refineries. Grounded in solid work selection and benchmarking, we're applying that same approach everywhere. We're not done yet.

Rich Kruger: Greg, I'd just add, to close this one out, there is not a new refinery in North America. The entire refinery network has some, you know, some age to it. I would say just candidly, I don't know where it all came from, it doesn't really matter, but the statement or narrative that old assets couldn't perform, that was an excuse for a subpar performance, and this company doesn't make excuses anymore.

In the spring of this year, we did a sour crude and hydrocracker block, uh, and that was an increase from 3 years to 4 years due to some improved catalysts, we put in back in 2021, in this turnaround, we made some modifications to the, uh, distribution of flow over that Catalyst. And we're, and we're planning on a 5-year interval going forward. So that's 3 years to 5 years. Uh, 65% Improvement, and turnaround interval over 2 Cycles. We're applying that same logic across all the units in Edmonton, but we're also applying that same principles, uh, across all of our refineries grounded in solid, work selection and benchmarking. Uh, we're applying that same approach everywhere, we're not done yet.

And Greg, I I just added to close this 1 out, there is not a new refinery in North America. The entire Refinery network has some, you know, agent, uh, some age to it. And I, I would say just candidly the

Greg Pardy: Yeah. Okay. No, I think you've captured it. Let me, let me relate this then to your share price relative valuation and then just your trajectory. The trajectory that you're on right now would suggest that your outperformance is gonna continue. There's this gap between your relative valuation and others. The market is either impatient, just hasn't recognized it, what have you. If you look at your $8 billion net debt target in the context of improvement cycle cash flows plus the trajectory, does that not suggest either moving the $8 billion, you know, up, number one, or secondly, maybe taking a more aggressive stance with respect to share buybacks, like doing an SIB or what have you?

And I don't know where it all came from, it doesn't really matter, but the statement or narrative that old assets couldn't perform, that was an excuse for sub subpar performance. And this company doesn't make excuses anymore.

Yeah. Okay. Now I think you've captured it. So let me relate this then to...

Um, your share price relative valuation and then just your trajectory. So, the trajectory that you're on right now would suggest that your outperformance is going to continue.

but there's this gap between your relative valuation and another, so the market is either in patient just has recognized at what have you

If you look at your 8 billion dollar, net debt Target in the context of improvement cycle cash flows. Plus the trajectory does that not suggest either moving the 8 billion you know up number 1 or secondly maybe taking a more aggressive stance with respect to to share BuyBacks like doing an sib or what have you

Rich Kruger: You know, I'll start it out, and then I'll ask both our new and departing CFOs to comment on it. You know, as we put that target in place, it was, you know, about a little less than 2 years ago now, it was on the assumption of a rate of improvement in 2024, 2025, and 2026. We've accelerated. We've improved faster than we anticipated in that. You guys have heard us. We talked about this 3-year plan. Are we gonna achieve 3 and 2? You know, that's a kind of a separate question. The examining of how we manage the balance sheet, looking at the business environment, the return of capital to shareholders, these are very active dialogues. These are not where we set something in stone, and that's just the way it is.

You know, I'll, uh, I'll start it out and then I'll ask both our, uh, uh, new and departing CFOs to comment on it, you know, as we put that Target in place and it was, you know, about about a little less than 2 years ago. Now, it was on the Assumption of a rate of improvement in 2425 and 26. We've accelerated, we've improved faster than we anticipated in that. In fact you've heard us, uh, we talked about this 3 year plan. Are we going to achieve 3 and 2? You know, that's, that's a kind of a separate question, but the examining of how we manage the balance sheet,

Rich Kruger: We wanna be outstanding technical and operational executives, and we want to be astute and outstanding money managers. Maybe I'll just give that, but, you know, Kris or Troy-

Kris Smith: I'll maybe just a few comments and ask if Troy wants to add anything as well. I mean, Greg, you know, on the back of Rich's comments, you know, we've set ourselves up in this company to ensure that we're really managing the balance sheet well, but we're driving that free funds flow growth, and we're returning that excess cash to shareholders. We set that debt target, couple years ago now, when we kind of reset the company. We're obviously ahead of schedule on just the level of improvement this company continues to drive.

Kris Smith: I expect that Troy and Rich are gonna continue to look at what the appropriate level of leverage is for the company, but prudently manage this balance sheet for the long term and have that underscore a ratable, consistent buybacks to our shareholders and return of cash. You know, right now, we've been at a very consistent level for the last number of quarters. We think there's a ton of value in that consistency. I know that's something that Troy and I have talked about is really it's the brand of the new Suncor, is the ability to deliver consistently, ratably, reliably to our shareholders. Will that change over time and be managed prudently? Obviously, looking at how we view a near term and medium-term commodity price? Of course.

And we want to be astute and outstanding money managers, so maybe I'll just give that but you know, Chris or maybe just a few comments and and ask of Troy wants to to add anything as well. I mean, Greg, you know, on the back of of Rich's comments, uh, you know, we've set ourselves up in this company, to ensure that we're we're really managing the balance sheet, well, but we're driving that refunds blow growth and we're returning that excess cash to shareholders. We set that debt Target, uh, couple years ago now, um, when we kind of reset the company, um, we're obviously ahead of of schedule on just the level of improvement this company continues to drive. I expect that, uh, Troy and Rich are going to continue to look at what the appropriate level of leverages, for the company. But prudently manage this balance sheet for the long term and really, and have that underscore of rateable, consistent BuyBacks to our shareholders and return of cash. So, you know, right now we've been at a very consistent level for the last number of

Rich Kruger: Yeah.

Troy Little: I think your question is our net debt target or how we view debt, is it static? You know, really, the level of debt that a company carries or should hold depends on a few things. It depends on the company's underlying cash flows, the consistency of the performance of our assets, the quality of the leadership team that's managing those assets, and also the external environment. I think everyone would agree on those first three things. Suncor has made an enormous amount of progress in the last few years. My intent is to manage the balance sheet just like my colleagues in operations manage their assets, and it's to deliver consistent returns to the shareholders.

Orders. We think there's a ton of value in that consistency, and I know that's something that Troy and I have talked about is really, it's the sun, it's the brand of the new Sun Core is the ability to deliver consistently relatively reliably to our shareholders. Will that change over time and be managed prudently. And, and obviously looking at how we view, uh, uh, near-term and medium-term commodity price. Of course,

yeah, I I think I would just, I think your question is, is our net debt Target or how we view debt, is it static, you know, really the level of debt that a company carries or should hold

depends on a few things. It depends on the company's underlying.

Cash flows, the consistency of the performance of our assets, the quality of the leadership team that's managing those assets and also the external environment.

I think everyone would agree on the those first 3 things Suncor is made an enormous amount of progress in the last few years. So my intent is to manage the balance sheet, just like my colleagues in operations, manage their assets and it's to deliver consistent returns to the shareholders.

Rich Kruger: Perfect. Yeah. Thanks very much.

Greg Pardy: Perfect. Yeah. Thanks very much.

Perfect. Yeah. Thanks very much.

Operator: One moment for your next question. The next question comes from the line of Dev Legate of Wolfe Research. Dev, please go ahead.

1 moment for your next question.

The next question comes from the line of Dev. Legate of wolf research Doug. Please go ahead.

Dev Legate: Thank you. Good morning, everyone. I would also like to add my congratulations to everyone. Kris, it's been a real pleasure. And, as you'll see in a second, I'm gonna challenge you on one last question, if I may, and Troy, many congratulations.

Doug Leggate: Thank you. Good morning, everyone. I would also like to add my congratulations to everyone. Kris, it's been a real pleasure. And, as you'll see in a second, I'm gonna challenge you on one last question, if I may, and Troy, many congratulations.

Kris Smith: I've got Troy here.

Kris Smith: I've got Troy here. See you all.

Dev Legate: See you all. All right. Let me, if I may, Rich, I'm probably front running a little bit 2026, but I want to try and hit the capital outlook. Obviously, there is one substantial project still in your portfolio, which is West White Rose. That obviously is 2026, as we understand it, and a fairly large slug of capital. I guess my question is that as you start to think about the use of discretionary cash flow going forward, as some of these bigger projects, one-off projects roll off, how are you thinking about the absolute level of discretionary spending versus that sort of almost CAD 6 billion number? Does that go lower, or does the capital get reallocated to other things?

Doug Leggate: All right. Let me, if I may, Rich, I'm probably front running a little bit 2026, but I want to try and hit the capital outlook. Obviously, there is one substantial project still in your portfolio, which is West White Rose. That obviously is 2026, as we understand it, and a fairly large slug of capital. I guess my question is that as you start to think about the use of discretionary cash flow going forward, as some of these bigger projects, one-off projects roll off, how are you thinking about the absolute level of discretionary spending versus that sort of almost CAD 6 billion number? Does that go lower, or does the capital get reallocated to other things?

Uh thank you. Good morning everyone. I would also like to add my congratulations to everyone. Chris it's been a real pleasure and uh as you'll see in a second I'm going to I I'm going to challenge you on 1. Last question. If I may try I've got Troy here to see you all

Rich Kruger: Thanks, Dev. You know, as we've looked at it, one of the things that, you know, I heard early on our market, you know, we spend a lot of money. We generate a lot of money, but we spend a lot of money. We have had a very concerted effort at exhibiting discipline on all of our operating costs, our capital costs. I think turnarounds are a vivid example of our maintenance or our sustaining capital has been driven down and will continue to do so. That was all so we could open up headroom for economic capital, for growth and quality investments. We don't have a hard cap. We had set internally that we wanna have a year on year on year capital expenditure at less than CAD 6 billion a year.

Um, all right, so let me let me, let me if I may, uh, I uh, Rich. I'm I'm probably front running a little bit 2026, but I want to try and hit the capital uh Outlook. So obviously there's 1 um substantial uh, project still in your portfolio, which is West White Rose that obviously is 2026 as we understand it and, um, a fairly large slug of capital. And I guess my question is that, as you as you start to think about the use of discretionary cash flow, going forward, as some of these bigger projects, 1-off projects, roll off. How are you thinking about the absolute level of discretionary spending versus that sort of almost 6 billion dollar number? Does that go lower? Or does the capital get reallocated to other things?

Yeah. Uh, thanks Jackie. The, you know, as we've looked at it, 1 of the things that that, you know, I heard early on our Market, you know, we spend a lot of money. We we generate a lot of money, but we spend a lot of money. So we have had a, a very concerted effort at exhibiting discipline on all of our operating costs our Capital costs, I think turnarounds are a vivid example of our our maintenance, or our sustaining capital is being has been driven down and will continue to do so. And that was all. So we could open up Headroom for economic capital for growth and quality Investments. We don't have a hard cap but we have we had set internally that we want to have a year on year on year capital expenditure at

Rich Kruger: That was a core, you know, tenet in our 3-year plan. We're achieving that now this year. If anybody's anticipating waking up on guidance and seeing a bigger number next year, stay in bed, don't get up early. We're gonna deliver that. What that does is it allows us to be very judicious about quality. At a capital construct of less than 6, you can pick your oil price world. Is it, you know, $50, $55, $60 a barrel? We believe we can continue to pay a reliable and growing dividend, fund our full capital program, and buy back shares. We want to thread the needle where we can do all of that in most any business environment.

Less than 6 billion dollars a year. That was a, a core, you know, tenant in our 3 year plan, we're achieving that now this year, if anybody's anticipating waking up on guidance and seeing a bigger number next year.

Stay in bed, don't get up early. Uh, we're going to, we're going to deliver that. And and what that does is it allows us to be very judicious about quality and at a capital construct of less than 6, you can pick your oil price world. Is it, you know, 50 55, UH, 60 bucks, a barrel. We believe we can continue to pay a reliable and growing dividend.

Rich Kruger: The unique level of our integration and the kind of the natural hedges that are within our construct, upstream, downstream, all the way to the customer now, gives us less volatility, less dependent on what the external world is. We wanna be a cash machine that invests wisely and returns capital to shareholders predictably and reliably. It's taken us a couple of years to get all the, you know, bells and whistles in place to improve fundamental performance. I think that's what you're seeing now, and to me, that's quite exciting. We put a high bar to justify new economic capital because it really needs to be tested against an alternate use of returning that capital to shareholders. I think at our current share price, as I said, I think we're in an extremely good buy.

And we want to thread the needle where we can do all of that, in most any business environment, and the unique level of our integration and the kind of the natural Hedges that are within our construct Upstream Downstream all the way to the customer. Now, gives us less volatility.

Depend independ less dependent on what the external world is. We want to be a cash machine that invest wisely in returns Capital to shareholders, predictably and reliably, it's taken us a couple years to get all the, you know, the, the bells and whistles in place to improve fundamental performance. But I think that's what you're seeing now, and to me, that's quite exciting. So, the um, we put a high

Rich Kruger: That will be the, you know, the push and pull we will have internally, and we have quite rigorous discussions and debates on that, but they're all centered on how can we increase shareholder value, you know, the highest, fastest, and best.

A bar to justify new economic capital because it really needs to be tested against an alternate, use of returning that Capital to shareholders. And I think at our current share price, as I said, I think we're in an extremely good buy.

And so that will be the, you know, the push and pull, we will have internally and we have quite rigorous discussions and debates on that, but they're all centered on. How can we increase shareholder value, you know, the the highest the highest fastest and best

Dev Legate: I appreciate the answer, and I guess we'll have to wait on 2026 for the actual capital number. Thank you, Rich, for that. Okay. My follow-up, I'm hoping this is for Kris, but Rich, I'm sure you're gonna wanna have an input to this. You've just reiterated, reiterated again, I apologize, that you think Suncor is a great buy here, as you put it. We certainly concur. It's been a tremendous stock, obviously, and the turnaround's been extraordinary. But you are an oil company, and oil prices are subjective. Value, therefore, if your free cash flow is a function of the oil price, is also subjective. When you say you are a great buy, you're implicitly saying, I have an oil price view, which is not necessarily gonna be right.

Doug Leggate: I appreciate the answer, and I guess we'll have to wait on 2026 for the actual capital number. Thank you, Rich, for that. Okay. My follow-up, I'm hoping this is for Kris, but Rich, I'm sure you're gonna wanna have an input to this. You've just reiterated, reiterated again, I apologize, that you think Suncor is a great buy here, as you put it. We certainly concur. It's been a tremendous stock, obviously, and the turnaround's been extraordinary. But you are an oil company, and oil prices are subjective. Value, therefore, if your free cash flow is a function of the oil price, is also subjective. When you say you are a great buy, you're implicitly saying, I have an oil price view, which is not necessarily gonna be right.

Dev Legate: My question is this. When you look at your relative performance to your closest peer, which is probably Imperial Oil Limited, the big difference has been the rate of dividend growth. Your dividend growth remains somewhat glacial despite all the improvements. My question to you is, why emphasize the buyback with a pedestrian dividend growth and not, if the improvements are flowing through to the bottom line, pivot to a more aggressive rate of dividend growth?

Doug Leggate: My question is this. When you look at your relative performance to your closest peer, which is probably Imperial Oil Limited, the big difference has been the rate of dividend growth. Your dividend growth remains somewhat glacial despite all the improvements. My question to you is, why emphasize the buyback with a pedestrian dividend growth and not, if the improvements are flowing through to the bottom line, pivot to a more aggressive rate of dividend growth?

I I appreciate the answer and I guess we'll have to wait on 2026 for the the the actual Capital number. But thank you Rich for that. Uh, okay, my my follow-up. Um, I'm I'm hoping this is for Chris, but Rich I'm sure you're going to want to have an input to this. Um, like you, you've just reiterated reiterated again, I apologize. Um, that you think Suncor is a great buy here as you put it. Uh, we certainly concur, it's been a tremendous stock. Obviously in the turnarounds, been extraordinary, but you are an oil company, and oil prices are subjective and value. Therefore, if you're free cash flow, as a function of the oil price is also subjective. So, when you say you are at a great buy, you're implicitly saying, I have an oil price for you, which is not necessarily going to be. Alright. So, my question is this, um, when you look at your relative performance to your closest peer, which is probably Imperial, the big difference has been the rate of dividend growth.

And your dividend growth remains somewhat glacial despite all the improvements. So my question to you is

Why emphasize the buyback with a pedestrian dividend growth and not if the improvements are slowly through to the bottom line.

Pivot to a more aggressive rate of dividend growth.

Rich Kruger: Doug, I'm gonna turn it to Kris Smith. The next time we're together, we'll have a couple of beers, and we'll go through this as well. Kris Smith, go ahead, comment on that.

Doug, I'm gonna turn it to Chris. Uh, the next time we're together we'll have a couple of

Kris Smith: Yeah. No, thanks. Again, if Troy wants to add anything here to the answer. I mean, thanks, Doug. Like, first of all, you know, our company, obviously, we're an oil company, and commodity price makes a big difference. This company also is differentially positioned in terms of our integrated business model and how we drive value and sustainable free cash flow and growing that. Start there. In terms of the dividend, you know, our commitment is to reliably and sustainably grow that dividend and position this company so that we have a strong WTI breakeven that can weather through the commodity price cycle. You've seen us over the last two years reduce that WTI breakeven by we're on our way to CAD 10 a barrel.

beers and we'll go through this as well, but

Kris Smith: We've repositioned the sustainability of the company, which makes us more resilient in the lower end of the commodity price cycle. We're not betting on oil price in this company. What we're betting on is sustainably and reliably generating free cash flow and having a resilient company that does that. In terms of the dividend to the investors, we view that as a commitment and a promise. Going forward, this is a commitment and a promise to our shareholders. We will grow it reliably. We have what we view or is a competitive yield, but the share price is actually low, and that yield needs to be lower, and we'll continue to grow the dividend appropriately over the years.

No, thanks. And and again, if Troy wants to add anything here to the answer, I mean, thanks Doug, like, first of all, uh, you know, our company, obviously, we're, we're an oil company and commodity price makes a big difference, but this company also is differentially positioned in terms of our integrated business model and how we drive value in. Sustainable free, cash flow and and growing that. So start there in terms of the dividend, you know, our commitment is is to reliably and sustainably grow that dividend and position this company. So that we have a strong WTI break, even that can weather through the commodity price cycle. And you've seen us over the last 2 years reduce that WTI break. Even by we're on our way to 10 bucks a barrel. So we've repositioned the sustainability of the company which makes us more resilient in the lower end of the commodity price cycle. So we're not taking we're not betting on oil price in this company, what we're betting on is sustainably and reliably generating free cash flow and having a resilient company that does that.

Kris Smith: The cash return strategy, though, of buybacks, our view, it is one of the best mechanisms to get cash back to our shareholders and really drive that per share value to our shareholders. We think we've got a winning formula in our capital allocation strategy, Doug. Maybe I'll just turn it over to Troy for any other comments.

Troy Little: Yeah. I'll just add this from a perspective, point of view. You know, as a management team, our focus is on maximizing the free cash flow per share from our assets so that we can generate returns for our shareholders. We really look to our shareholders, though, to guide us on how they want those returns delivered to them. The almost constant feedback we get is that our investors want a reliable and growing dividend, as Kris referred to, and they want the excess to be used for share buyback. Until they really tell us something different, that's gonna be our focus.

In terms of the dividend to the the investors we view that as a commitment, and a promise. And uh, and this company is going going forward. This is a commitment and a promise to our shareholders. Uh, we will grow it. Reliably, we have what we view is a competitive yield, but the share price is actually low and that yield needs to be lower and will continue to grow the dividend appropriately. Over the years. The cash return strategy though, of BuyBacks our view, it is 1 of the best mechanisms to get cash, back to our shareholders, and really drive that per share value to our shareholders. So we think we've got a, a winning formula in our Capital allocation strategy that. Um, and maybe I'll just turn it over to uh to Troy for any other comments. Yeah, I'll just add this from a prospective uh point of view, you know, as a management team, our focus is on maximizing the free cash flow per share from our assets.

So that we can generate returns for our shareholders.

We really look to our shareholders though to guide us on how they want those returns delivered to them.

Rich Kruger: Doug, I wanna make 1 comment on this too. You know, I run the risk 'cause I'm just thinking about it on the fly, and sometimes I get in trouble when I do this, but what the hell, we're gonna go for it. You talk about a peer or peers. I honestly don't think we have a true Canadian peer. I think the unique assembly of our assets, upstream, downstream, the differentiated value proposition we have, I think we have an ability over a much wider range of market conditions to deliver predictable, reliable cash flow. Now, at any point in time, whether it's oil price, gas price, low differential, high differential, downstream cracks or whatever, there can be parties that might stand out.

Viable and growing dividend is Chris referred to. And they want the access to be used for share BuyBacks. And until they really tell us something different that's going to be our Focus.

I want to make 1 comment on this too. And, you know, I I run the risk because I I'm just thinking about it on the Fly and I sometimes I get in trouble when I do this, but what they have, we're going to go for the, um, you talk, you talk about a peer or peers.

I honestly don't think we have a True Canadian peer. I think the unique assembly of our assets. Upstream Downstream, the differentiated value proposition. We have, I think we have an ability under over a much wider range of market conditions to deliver predictable, reliable cash flow. Now, at any point in time, whether it's oil, price, gas price, low differential High, differential Downstream cracks or whatever. There can be

Rich Kruger: I think if you look over the test of time, who has been assembled to compete and win for the long term, I increasingly don't think that, you know, looking around Calgary is the right lens to look at us on. I'm probably gonna get in trouble for that. I'm probably gonna be challenged on that and stuff. You know, you ask me a question, you know, you get the answer I feel, and that's how I feel.

parties that might stand out, but I think if you look over the test of time who has been assembled to compete in win for the long term,

I increasingly don't think that, you know, looking around Calgary is the right is the right lens to look at us on. So I'm probably going to get in trouble for that. I'm probably going to be challenged on that and stuff but, you know, yeah, you asked me a question. You you get what I you, you know, you get the answer I feel and that's how I feel.

Dev Legate: We'll get a chance to talk about it in a couple of weeks. Thanks so much.

Doug Leggate: We'll get a chance to talk about it in a couple of weeks. Thanks so much.

Kris Smith: Thanks, Doug.

We'll get a chance to talk about it. A couple of weeks, thanks so much.

Thanks Doug.

Operator: One moment for your next question. The next question comes from the line of Dennis Fong of CIBC WM. Dennis, please go ahead.

1 moment for your next question.

Operator: Hi. Good morning.

Dennis Fong: Hi. Good morning. Thank you for taking my questions. First off, I'd just like to echo Greg and Doug's congratulations to the team on the quarter, and specifically to Kris, Troy, and Adam for their, I guess, new roles or extending your existing role. My first question really focuses on Fort Hills, Q3 operations and production was quite strong. From our observations of the mine plan, it seems like you've opened up potentially the first cut and should have turned that maybe over to operations. Can you maybe talk towards the progress on the second cut and maybe, as you're kind of progressing through the plan, what that means for optimization of the asset?

C. I d c w n Dennis please go ahead.

Dennis Fong: Thank you for taking my questions. First off, I'd just like to echo Greg and Doug's congratulations to the team on the quarter, and specifically to Kris, Troy, and Adam for their, I guess, new roles or extending your existing role. My first question really focuses on Fort Hills, Q3 operations and production was quite strong. From our observations of the mine plan, it seems like you've opened up potentially the first cut and should have turned that maybe over to operations. Can you maybe talk towards the progress on the second cut and maybe, as you're kind of progressing through the plan, what that means for optimization of the asset?

Hi, good morning, and thank you for taking my questions. Uh, first off, I just like to Echo, Greg and Doug's, congratulations to the team on the quarter, um, and the specifically to Chris, uh, Troy and Adam for their, uh, I guess new roles or, or exiting your existing role. Um, my, my first question really focuses on Fort Hills, uh, Q3 operations, and, and production was, uh, quite strong, um, from our observations of the Mind plan, it seems like you've opened up potentially the first cut and should have turned that maybe over to operations. Can you maybe talk towards the progress on the second cut and maybe, um, as you're kind of progressing through the plan, what that means for optimization of the asset.

Rich Kruger: Peter, why don't you take that?

Peter Zebedee: Yeah. Thanks, Dennis Fong. You're absolutely right. We are actively producing ore from the first cut, the first pit in the North Pit One now. That's going exceptionally well, blending off that ore with ore from Center Pit. You have seen, as you saw in Q3, our production volumes start to increase. We've also just started opening up the second pit in the North Pit, which will be an active blending pit. We're just kind of in the top cut of that now and we'll develop that over the remaining months here in 2025 and into 2026. Our drive is really to take the Fort Hills volumes up to nameplate and potentially beyond in the next couple of years. It really

Once you take that, yeah, thanks. Dennis and you're absolutely right. We are actively producing or from the uh, the first cut that the first pit in the North Pitt 1. Uh, now and that's going exceptionally. Well, blending off that or with with or from Center pit. Uh, and you have seen as you saw in the third quarter, our production volumes start to increase. Uh, We've also uh just started open opening up the the second pit in the North Pitt, which will be an active blending pit. So we're just kind of in the, in the top cut of that now, and we'll develop that over the remaining months here in 25 2025 and into 26.

Rich Kruger: Potentially.

Peter Zebedee: See lots of opportunity. We're, we're trying to get up into that 195,000 barrel a day, 200,000 barrel per day range in the next couple of years. That's the goal. North Pit Two is gonna be a big part of that, and we're just in the top stripping of that area of the mine right now.

and our drive is really to take the Ford, Hills volumes up to, uh, name plate and potentially Beyond, uh, in the, in the next couple of years, and it really potentially

See, lots of opportunities.

Rich Kruger: You continue to test and evaluate the plant. I think there, Peter, you know, I don't know if you have any specific comments on that, but we have a lot of capability and capacity with that plant. The focus on the or the bitumen delivery is the key because we do have a really, a stellar facility there.

So we're we're trying to get up into that 195,000 Barrel a day. 200,000 Barrel per day range, in the next couple of years. Uh, that's the goal. North Pitt 2 is going to be a big part of that uh and we're just in the top stripping of that uh, battery in the mind right now.

Peter Zebedee: Yeah, we really have proven that out, especially through 2025. We've taken the opportunity to really test the range on the fixed plant to really put some high throughput in it from the mine. It delivered better than what we expected even. Our confidence in the ability of the fixed plant to take the ore from the mine is extremely high. Right now it's all about getting that mine set up to deliver those high production volumes here into the future.

You continue to, um, test and evaluate the plant and I think their Peter, you know, I don't know if you have any specific comments on that, but we, we have a lot of capability and capacity with that plant. So, the focus on the, the, the Benjamin delivery is the key because we do have a really, a stellar facility there. Yeah. And we, we really have proven that out, especially, uh, through 2025. We've taken the opportunity to really test the range on the, on the fixed plant to, to really put some high throughput in it from the mine. It delivered, uh, better than what we expected even. And so our confidence in the ability of the fixed plant to, to take the ore from the mine. Uh, is extremely high. And so right now, it's all, it's all about getting that mindset up to deliver those high production volumes here into the future.

Dennis Fong: Great. Really, really, really appreciate that context there, Peter and Rich. My second question, and maybe it's addressed to Dave. Rich, in your opening comments, you highlighted record of refined product sales through the quarter. I was hoping you could touch on, and maybe highlight what you found in your opportunity to visit a variety of the retail, logistics, and distribution terminals across Suncor's Canadian operations and how that feels or derives comfort level or an ability to kind of press throughput on downstream and market those volumes in the most, we'll call it, profitable channels.

um and and maybe highlight what you found in um your opportunity to visit a variety of the retail logistics and distribution terminals across

Rich Kruger: Dave, you wanna go?

Uh, Suncor is Canadian operations and, and how that feels, or, or drives Comfort level or an ability to kind of press throughput on Downstream and Market. Those volumes, um, in the most, we'll call it profitable channels.

Dave Oldreive: Yeah, for sure. Dennis, as Rich mentioned, we changed our philosophy about a year or so ago to focus on value versus volume, but value and volume. Our plan is we run our refineries full, and we sell full, and then we improve our channel mix over time. What's really great about what we've seen so far in that philosophy is it's all working. You've seen the records, but what you may not see in the numbers is the work that's happening to grow our most profitable channels. And that's our retail growth plans, our wholesale growth, and really reducing the volume of exports that we make.

Yeah, for sure. Um,

Dennis. We uh, as Rich mentioned, we we changed our philosophy about a year or so ago. To focus on, volume value, versus volume value, value and volume.

Dave Oldreive: On the retail side, just maybe a few numbers, because folks probably have seen some of this as you drive around the major cities across Canada. We've enhanced 23 sites this year, including rebuilding two new sites. We're on track to rebrand from other competitor brands, 75 sites across the country this year. Each of those operators, as they rebrand to the Petro-Canada canopy above their site, are seeing significant increases in volumes. We see the strong brand that we have in Petro-Canada continuing to grow. In fact, our share market is up 1.5% this year. Our retail sales, as Rich mentioned, are up 8% year-on-year and 10% over the last couple of years. We're growing our most profitable channels.

So our plan is, we run our refineries full and we sell full and then we improve our Channel mix over time. Um, and, and what's really great about what we've seen so far in that philosophy is, is it's all working. You've seen the records, but what you may not see in, in the, in the numbers is, is the work that's happening to grow our most profitable channels. Uh, and that's our retail growth plans, our wholesale growth, uh, and and and, and, and really reducing the volume of exports that we make. So, on the retail side, just maybe a few, a few numbers because folks probably have seen some of this, as you drive around the major cities across Canada. Uh, We've enhanced 23 sites this year, including rebuilding 2 new sites. Um, we're on track to Rebrand from other competitor Brands. Uh, 75 sites, uh, across the country, uh, this year,

Dave Oldreive: Our distribution network is solid. You know, as we do need to export, we can do that incredibly profitably through our trading organization, who sell direct to customer with a, you know, minimizing that, the profit that's taken by the, by the folks in the middle. We can sell off both coasts. We can sell off Vancouver, and we can sell out of Montreal. We can optimize our network in between to go anywhere, pretty much anywhere in the world with largely diesel is what we see exporting out of Canada. Our network is strong. We're growing the highest profitable channels, and we have lots of flexibility to continue to grow.

And each of those operators as they Rebrand to the Petra Canada canopy uh above their site are seeing significant increases in volumes. So we're we see the the strong brand that we have in Petra Canada uh continuing to grow. In fact our share market is up 1 and a half percent uh this year. Uh and our retail sales is Rich. Mentioned are up 8% year on year and 10% over the last couple years. So we're growing our most profitable channels. Our distribution network is solid and you know, as we do need to export, we can do that incredibly profitable through our trading organization, uh, who who sell direct to customer with a, you know, minimizing that uh, the the prophet that's taken by the by the folks in the middle. Uh, and we can sell off both coasts, so we can sell off Vancouver and we can sell out of Montreal and we can optimize our Network in between to go anywhere. Pretty much anywhere in the world with largely diesel is what we see exporting out of Canada. So our our network is strong. Um, we're growing the highest profitable channels uh, and we have lots of

Rich Kruger: I'm looking at Adam as I say this. In late 2022, the company had a retail growth plan that it communicated to the market and had a series of commitments through 2027 and stuff on it. I would say in the Investor Day, we need to give a good recap of where we stand on that. Just kind of a headline is we, it's going quite well. We're delivering everything and more that in late 2022 we said we were going to do. I think, Dennis, one other little added point I'd make, a nuance on it. In today's world of commodity price uncertainty and volatility, owning all the way through the customer is a competitive advantage. That can move around, whether it's the customer has the leverage or the manufacturer has the leverage or the producer does.

Flexibility to continue to grow. I'm, I'm looking at Adam as I say this in in late 2022, the company had a retail growth plan that had communicated to the market and and had a series of commitments, through 27 and stuff on it. I would say in the investor day, we need to give a good good, uh, recap of where we stand on that, and it just kind of a headline, is we? Uh, it's going quite well. We're, we're delivering everything and more that in late 22. We said we were going to do and I think Dennis 1 other little

Rich Kruger: This is a key part of that uniqueness of our value chain that all integration is not created equal. In fact, it's quite different. Our unparalleled integration is a part of our story and a part of our performance.

Added point. I'd make a Nuance on it in today's world, of, of commodity price, uncertainty and volatility owning all the way through the customer is a competitive Advantage because that can move around whether it's the customer has the The Leverage or the manufacturer has the leverage or the producer does. But this is a, a key part of that uniqueness of our

Value chain that all integration is not created equal. It's quite effective. It's quite different. And our

Unparalleled integration is a part of our story and a part of our performance.

Dave Oldreive: Great. Really appreciate that. Thank you. I'll turn it back.

Dennis Fong: Great. Really appreciate that. Thank you. I'll turn it back.

Great, really appreciate that. Thank you. And I'll I'll turn it back.

Operator: Thank you. One moment for our next question. The next question comes from the line of Neil Mehta of Goldman Sachs. Neil, please go ahead.

Thank you. 1 moment, sir.

Questions.

The next question comes from the line of Neil Mehta of Goldman Sachs.

Neil Mehta: Yeah. Good morning, Rich Kruger. Congratulations, Troy Little. Congratulations, Adam Albeldawi and Kris Smith. It's been a real pleasure. I just two questions. The first is just on the Investor Day. When have you put a date out for that? I'm guessing it's gonna be May like you did in 2021 and 2024, but I might have missed that. As you think about that Investor Day, what are the kind of tangible KPIs or targets you wanna educate the market on, and what's the right time horizon? Are you thinking 3-year targets or going out further? Just give us a little bit of a preview for that.

Can you please go ahead? Yeah, good. Good morning Rich. Congratulations Troy. Congratulations, Adam. And Chris has been been a real pleasure. Uh I I um, I guess 2 questions, but first just on the investor day. Um when when is the have you put a date out for that? And I'm I'm guessing it's going to be may like you you did in 2124. Um but I might have missed that but as you think about that investor day, what are the kind of the tangible kpis or targets you want to to educate the market on?

Rich Kruger: Neil, as I answer you, I have a room full of people that are really, really curious as to what I'm going to say. Let's have some fun with this. Our original plan was sometime, you know, before mid-year next year. That's not gonna work. We're gonna need to come out earlier than that. We're looking at something earlier. We're looking at calendars when all you good folks are available. Those of you that have kids, when your kids are on spring break and all that. We're gonna pull that earlier. It won't be January or February, but it will be earlier than we had originally anticipated.

And how what's the right time Horizon? Are you thinking you 3 year targets are going out further? Just give give us a little bit of preview for that.

Annual as I?

I have a room full of people that are really, really curious as to what I'm going to say. So let's have some fun with this. Our, our original plan was sometime, you know, before mid-year next year

Rich Kruger: The second thing, you know, the one area that periodically, and I read everything you guys write, every now and then when, you know, things are going really, really well, you guys look for, you know, what's the, what's the thing we can say as to why we have to justify to our bosses, we haven't all bought Suncor. Everybody wants to say, Well, what the hell is gonna happen when the base mine depletes? We owe you, and we'll present a very compelling long-term value proposition on bitumen development and replacement. That, you know, that's longer term. We've said in the last Investor Day that don't anticipate a whole bunch of, you know, expenditures in the next 5 years on it. I think we're gonna have to do both.

Something earlier, we're looking at calendars, when all you good, folks are available. Those of you that have kids, when your kids are on spring break and all that, but we're going to pull that earlier. It won't be January, or February, but it will be earlier than we had originally anticipated. And the second thing, you know, the, the 1 area, that periodically and I read everything, you guys write every now. And then, when, you know, things are going really, really well, you guys look for you know, what's what's the what's the thing we can say as to why we have to justify to our bosses, we haven't all bought Suncor. So everybody wants to say, well what the hell is going to happen when the base mine depletes stuff? So we owe you and we'll present a very compelling long-term value proposition on bumin, development and replacement. But

Rich Kruger: We're gonna have to give you what that long-term plan looks like. We're gonna have to give you kind of what is that next, you know, for fun sake, we'll say, what's that next three-year plan also gonna deliver? I think we're gonna have to give you both. Longer term and a new set of targets short term that will be, you know, compelling and inspiring and create the case for, "Man, this is a stock I just have to own." A little bit earlier than we originally thought, two-prong, short-term and long-term. I'll tell you, I'm gonna be there that day. I wouldn't miss it.

That you know, that's longer term. And we've said in the last investor day that don't anticipate a whole bunch of, you know, expenditures in the next 5 years on it. So I think we're going to have to do both, we're going to have to give you what that long-term plan looks like. But we're going to have to give you kind of what is that next? I you know for for for fun sake we'll say what's that? Next 3 year plan also going to deliver, so I think we're going to have to give you both longer term and a new set of targets short term that will be you know, compelling and uh inspiring and create the case for man, this is a stock. I just have to own

So a little bit earlier than we originally, thought 2-prong, short-term and long-term. Uh, I'll tell you I'm going to be there that day. I wouldn't miss it.

Neil Mehta: Well, I have to have good pump up music before you get on stage. The follow up is just on downstream. It does seem like we're in a good refining environment. Certainly, refining equities have done okay and downstream margins continue to do well up in Canada as well. Rich, I would just love your perspective on the sustainability of the Canadian refining advantage, and if you think that we're gonna sustain in a healthy environment. Utilization averaging 101% for a system that was running low to mid-90s for a long time, you know, do you feel like you've got some, you know, momentum here to be able to sustain at these type of levels as you go into next year as well?

Well, I have to have a good pump up music before you get on stage. They

Rich Kruger: Dave, let me take the second part, and then I'll turn it over to you on that. On the utilization and things, the teams across the company, facility by facility, have undertaken a very concerted, okay, what's the limiter? What's the bottleneck? What's the last increment that if we make small, you know, changes can add incremental capacity? When you now see, and I literally think it's since mid 2023. I think we're 2 years if you average over all that. I think we're at more than 100% utilization for that long period, and you get 106. What is it really saying? The underlying capacity has grown. We need to, and maybe that'll be Investor Day. I'm not... It needs to be soon.

The the followup is just on Downstream. It does seem like we're in a good refinement, certainly. We're finding equities have done, okay? And and, uh, Downstream margins, uh, continue to do well up in Canada as well. So, rich would just love your perspective on the sustainability at the Canadian refining Advantage. Um, and if you think that, uh, we we're going to sustain in a healthy environment and then utilization averaging 100 101% for a system that was running low to mid 90s for a long time, you know? Do you, do you feel like you've got some, uh, you know, uh, momentum here to be able to sustain at these type of levels? Um, as you go into next year as well? Dave, let me take the second part and then I'll turn it over to you on that, on the, the utilization and things the the the teams across the company, Facility by Facility have undertaken, a very concerted. Okay. What's the limiter? What's the bottleneck? What's the last in?

Rich Kruger: We will rerate our downstream because it has more capacity than it previously had due to really smart, thoughtful, frugal work site by site by site. There's still things, you know, coming there. Is it sustainable? I think that gets right back to the turnaround discussions or commitment to operational excellence on maintenance practices. The answer is absolutely, is it sustainable. Now, year-on-year, we'll have, you know, more turnarounds here, less turnarounds there and things. You'll get a little variation year-on-year. At the high performance levels you've become accustomed to this year and last year, our business plan, our guidance that you're soon gonna see is very consistent with continuing to deliver that. Dave and Neil, I'll flip it to you on kinda, you know, the value that you're gonna create in that enterprise.

Increment that if we make small, you know, changes can add incremental capacity. And when you now see, and I literally think it's since mid 23, I think we're 2 years. If you average over all that, I think we're at more than 100% utilization for that long period and you get 106. So so, what does it really saying the underlying capacity has grown? So, we need to and maybe that'll be investor day. I'm not. It needs to be soon. We will rewrite our Downstream because it has more capacity than it previously had due, to really smart thoughtful Frugal work site by sight by sight. So there there's, there's something, you know, coming there, is it? Sustainable? I think that gets right back to the turnaround discussions, or commitment to operational excellence on maintenance practices. The answer is absolutely, is it sustainable? Know you're on year? We'll have, you know, more turnarounds here, more less turnarounds there and things.

Dave Oldreive: Yeah, for sure. I'll just build, Rich, on your comments. On the downstream, not only do we see that sustaining, we believe we can continue to incrementally creep capacity with all of the little ideas that are coming from the grassroots of the organization as folks are aligned to drive growth. Yeah, you mentioned the markets are strong. You know, we're seeing, particularly on the diesel side, low inventories, the geopolitical risks, some lagging renewables in the US and a growing short in California that's really starting to drive diesel as well as some local gasoline cracks in certain parts of the continent. We see in the short term some really strong cracking spreads going into Q4 through Q4.

You, you'll get a little variation year on year, but at the high performance levels, you've become accustomed to this year and last year, our business plan, our guidance that you're soon going to see is very consistent with continuing to deliver that. So Dave Mill, flip it to you on kind of, you know, the value that you're going to create in that Enterprise? Yeah, for sure. And I'll just build rich on on your comments on the, on the downstream. Not only do we see that sustaining we we believe we can continue to incrementally creep capacity,

With, with all of the little ideas that are coming from the Grassroots of the organization. As folks are aligned to to drive growth, you know, you mentioned the markets are strong. You know, we're seeing particularly on the diesel side, low inventories the geopolitical risks.

Dave Oldreive: The longer-term view on Canada is we're gonna continue, as I mentioned before, our retail growth plans. We have some plans on the wholesale side to do something similar. Even in a market that is maybe growing slowly at 2% per year, we believe our strategy is we can take market share on the most profitable channels. We'll continue to do that. As I mentioned, on the balance, we can run our refineries full. We have some of the lowest cost crude advantages in the globe. We can export profitably pretty much anywhere in the world and continue to grow our refining capacity through that mechanism as well. We're just.

Rich Kruger: Just one last thing, kind of a related point. You know, our downstream, I think historically folks have said, Well, you know, you guys are good downstream, high-performing downstream, et cetera, et cetera. All of that's true, but we've taken it from good to great, and our belief is it can be even greater. It is so key to our financial resilience in uncertain times and the contribution to keeping our overall corporate break-even at a low and very competitive level. I think what we've seen, the more we do in the downstream, and I'm smiling as I look at Dave. The more we do, the more potential we see. This is a...

Market share on the most profitable channels and will continue to do that. And as I mentioned on the balance, we can run our refineries full. Uh we have some of the lowest cost crew advantages in in the globe and we can export profitably. Pretty much anywhere in the world and continue to grow our refining capacity through that mechanism as well. So just 1 last 1, last thing kind of a related point, you know, our Downstream I think. Historically, folks have said, well, you know, you guys are good. Good Downstream High performing Downstream, etc, etc. All of that is true but we've taken it, we've taken it from good to great. And our belief is it can be even greater and it is so key to our financial resilience and uncertain times and the contribution to keeping our overall corporate break, even at a very, very, ah, a low, and very competitive level. And I think what we've seen the, the more we do in the downstream and I'm smiling. As I look at Dave, the more we do,

Rich Kruger: You know, I've used this phrase now for several quarters in a row, we are not done yet. That applies either equally or disproportionately to the downstream. There's a lot more value we believe we can continue to create. When you look at us, it may not always be straight, you know, plotting volume points, either upstream or downstream, may no longer be the best way to gauge, are these guys improving? Keep looking at the dollars and where they're coming from and the dollars. Now, volumes, we're gonna keep doing things to grow that. Increasingly, our mindset is in the value dimensions. The downstream is gonna be a big part of that.

The more potential we see. So this is a, you know, I've used this phrase now for several quarters in a row, we are not done yet and that applies either equally or disproportionately to the downstream. Well, there's a lot more value, we believe we can continue to create and and so when you look at us, it may not always be straight, you know? Uh, plotting volume points either upstream or Downstream May no longer be. The best way to gauge. Are these guys improving, keep looking at the dollars.

And where they're coming from in the dollars now, volumes— we're going to keep doing things to grow that, but increasingly our mindset is in the value dimensions. And the downstream is going to be a big part of that.

Operator: Thanks, Rich. Thanks, team. One moment for your next question. The next question comes from the line of Manav Gupta of UBS. Manav, please go ahead.

Neil Mehta: Thanks, Rich. Thanks, team.

Operator: One moment for your next question. The next question comes from the line of Manav Gupta of UBS. Manav, please go ahead.

Thanks Rich. Thanks Steve.

1 moment for your next question.

Manav Gupta: I actually wanted to start on a lighter note. As you get into the earnings call of Suncor, you know, you're playing that Michael Jackson song, Beat It and Beat It, and every 30 seconds you were hearing Beat It and Beat It. It kind of struck me, that's what Suncor has become, right? Keep raising expectations and then beat it. Whoever chose that song thought through it very carefully.

The next question comes from the line of manav. Gupta of UVS Monopoly. Please go ahead.

Rich Kruger: Hey, Manav, a quick one. A quick one for you. You know, we started that some time ago now, and it is one of the, the secrets of the crown, what our earnings call is gonna be. There are only three people who know it ahead of time: me, my wife, and Troy. My wife and Troy have way better sense in music than I. Now we're gonna bring Adam into the inner circle on it. We do spend a little bit of time thinking, what is the appropriate call for the quarter? So thank you for noticing it. Troy is smiling 'cause he picked this one.

Um, I actually wanted to start on a lighter note, as you get into the earnings, call of sore, you know, you're playing that Michael Jackson song, Beat It and beat it. And every 30 seconds you were hearing beat it and beat it and then send it kind of struck me. That's why suncore has become, right? Keep raising expectations, and then beat it. So whoever chose that song. Thought through it very carefully. Hey man, I have a quick 1. This is a quick 1 for you. You know, we started that song.

Some time ago.

It's a it is 1 of the the the secrets of the crown what our earnings call is going to be, there are only 3 people who know it ahead of time me my wife and Troy and my wife and Troy have way better uh sense of music than I. So now we're going to bring Adam into the inner circle on it, but we do spend a little bit of time thinking what is the appropriate call for the quarter? So so thank you for noticing that Troy.

Manav Gupta: I kind of figured it out because a couple of quarters ago, Rich, you were playing either, Eye of the Tiger from Rocky. It's kind of, you know, your focus exactly was showing what your song was playing. I kind of figured that out. That's why I wanted to talk about it. My quick one question here is, sir, when we look at Fort Hills and Syncrude cash operating costs, absolutely going in the right direction. Every quarter, we are seeing an improvement. I'm just trying to understand what further improvements can happen over here and how much lower can you think you can take this, both at Fort Hills and Syncrude, and I'll turn it over. Thank you.

Smiling because he picked this 1, I I kind of figured it out because a couple of quarters ago, Rich you were playing either eye of the tiger from Rocky. So it's kind of you know, your focus exactly was showing what your song was playing. So I kind of figured that out, that's why I want to talk about it.

Rich Kruger: I'm gonna turn it over to my operators here in a minute. I think this gets at the very culture of the organization of spending, how we look at spending money, whether capital or operating it. I'll give you a little glimpse of my childhood. My dad would give me CAD 2 to go to the store and get a, you know, a pop and a candy bar. I'd spend, you know, CAD 1.84. I'd come back, he'd say, "Where's my CAD 0.16?" It's a philosophy and it's a culture of we're not spending our money. We need to manage risk, be very thoughtful and frugal. I think our progress on operating costs is probably one of the best barometers of, is our culture permeating deeply? Capital is allocated around this table. We can add or subtract.

Um my quick 1 question here is Sir, when we look at 4 Hills and S crude, cash operating cost absolutely going in the right direction. Every quarter we are seeing an improvement and just trying to understand uh, what further, improvements can happen over here and and and how much lower can you think? You can take this both at 4 Hills and crude and I'll turn it over. Thank you.

Rich Kruger: Operating costs are the decisions of literally thousands of people every day. That is what each month when I see the numbers, that's where I get my best sense of, yeah, okay, the organization has it. On a, you know, what continued improvements or, you know, Peter, do you have any comments, particularly? You've done the bulk of it.

I'm going to turn it over to my operators here in a minute, but I think this gets at the very culture of the organization of spending how we look at spending money, whether a capital or operating it, I'll give you a little glimpse of my childhood. My dad would give me 2 bucks to go to the store and get a, you know, a pop and a candy bar and I'd spend, you know, a buck 84 and I'd come back and he'd say, where's my 16 cents? And so it it's it's a philosophy and it's a culture of, we're not spending our money. We need to manage risk to be very thoughtful and Frugal. And the, I think our progress on operating costs is probably 1 of the best. Barometers of is our culture. Permeating deeply capital is allocated around this table, we can add or subtract but operating costs are the decisions of literally thousands of people.

Dave Oldreive: Yeah. I would say it really does start with building that culture right from the front line. We've put a lot of time and effort into building the transparency and an understanding with our frontline leadership and operators around the decisions they make on a given shift and what the cost implications of that are. That has proven to be really effective. You start to see that flow through at the bottom line now. We are working, as I've said in multiple calls, mining productivity, where we spend the bulk of our money in the mines and getting more out of what we have from our mining equipment is a really big part of this cost journey.

Peter Zebedee: Yeah. I would say it really does start with building that culture right from the front line. We've put a lot of time and effort into building the transparency and an understanding with our frontline leadership and operators around the decisions they make on a given shift and what the cost implications of that are. That has proven to be really effective. You start to see that flow through at the bottom line now. We are working, as I've said in multiple calls, mining productivity, where we spend the bulk of our money in the mines and getting more out of what we have from our mining equipment is a really big part of this cost journey.

People every day. And that is what each each month when I see the numbers. That's where I get my best sense of yeah. Okay. The organization has it but but on a, you know what continued Improvement or you know, uh Peter you have any comments, particularly you. You you keep on the bulk of it. Yeah.

Peter Zebedee: We haven't stopped there. We've been working broadly across the rest of our operations, specifically in maintenance efficiencies on integrated activity and planning and ensuring that we're doing the right work at the right time in the most efficient way, and building out that capability and knowledge of our front line, the folks that are making the decisions each and every day on what cost implications that have, and then getting their creative decisions and driving efficiencies higher. That's really what you're seeing flow through.

In that culture, right? Right from the front line and we've put a lot of time and effort into building the transparency and an understanding with her Frontline leadership and operators around the decisions they make on a given shift and what the cost implications of of that are and that has proven to be really effective, you start to see that flow through at the bottom line. Now, we are working, as I said, in multiple calls, uh, mining productivity, where we spend the the bulk of our money in the minds and getting more out of what we have. From our mining equipment is a really big part of this, uh, cost Journey but we haven't stopped there. We've been working, broadly across the rest of our operations, specifically in, uh, maintenance facil, um, efficiencies on, uh, integrated activity and planning and ensuring that we're doing the right work at the right time in the most efficient way, and building out that capability and knowledge of our Frontline, the folks that are making the decisions each and every day on.

Rich Kruger: You know, I think some of the philosophical, you know, we benchmark. Shelley mentioned earlier, we do competitively benchmark. We look at where gaps are, what actions can we take. That was a part of our mining strategy on, you know, bigger trucks, fewer trucks, operated better, and maintained cheaper. You know, that was all part of that philosophy. The, we have an internal philosophy around, you know, there's inflationary pressures in our business. Well, the market doesn't necessarily give us inflation on our products. Our business plans to get, you know, to walk in the door, you have to bring business plans to us that have fully offset inflation. Then we wanna talk about how do we improve upon that. It's just a real deep recognition. We are in a commodity business, and cost, managing cost is so absolutely essential.

On uh what cost implications that have and then getting their creative decisions and driving efficiencies higher. And that's really what you're seeing flow through. You know, I think some of the philosophical you know, we we Benchmark Shelley mentioned earlier, we do competitively Benchmark. We look at where gaps are. What actions can we take? So that was a part of our mining strategy on, you know, bigger trucks, fewer trucks, uh operated better maintained cheaper. You know, that was all part of that philosophy. The um we have an internal

Rich Kruger: I say cost, I mean every dollar we spend, whether it's capital or operating.

Philosophy around, you know, there's inflationary pressures in our business. Well, the market doesn't necessarily give us inflation on our products. So our business plans to get, you know, to walk in the door. You have to bring business plans to us that have fully offset inflation. And then we want to talk about how to improve upon that. So it's just a real deep recognition. We are in a commodity business and managing costs is so absolutely essential. And I say costs; I mean every dollar we spend, whether it's capital or operating.

Operator: One moment for our next question. The next question comes from the line of Menno Hulshof of TD Securities. Menno, please go ahead.

1 moment for our next question.

Menno Hulshof: Thanks, and good morning, everyone, and congrats to everyone on the call on the changes. Most of my questions have been answered, but I'll maybe follow up with a question on nameplate capacity. You touched on this already for the downstream in particular, but with certain upstream assets like Firebag also performing well above nameplate, like, what are your thoughts on rerate potential? I think the last time you talked about this, I think I suggested you were still working through a discovery process on how each asset could perform on a sustained basis. On balance, and it's more of a philosophical question, but what's the real benefits of rerating? I could make the argument either way, but curious as to how you're thinking about this.

The next question comes from the line of mono. Hosaf of TD security mono. Please go ahead.

Thanks and good. Good morning everyone and and congrats to everyone on the call on the changes. Most of my questions have been answered but I'll I'll maybe follow up with a a question on name plate capacity. You you touched on this already for the downstream in particular but with certain Upstream assets like firebag also performing well above name plate. Like what are your thoughts on rewrite potential? And I I think the last time you talked about this I think you suggested you were still

Rich Kruger: Yeah. You know, I think it's a fair question, Menno, on the what's the benefit on it. It's probably as much as anything is credibility. How do you repeatedly extract more than 100% of something? I'll tell you right now, we internally, we have 2 things. We steward to you the historic external utilizations, but that is not at all internal. When you come into our executive meetings and we look at assets, we look at their performance relative to their best 30-day average consecutively. We run 2 sets of numbers, and the goal is to always improve based on historical performance.

Working through a discovery process on how each asset could perform on a sustained basis but on balance and it's more of a philosophical question. But what's the, what's the real benefits of reradiating? I could make the argument either way, but curious as to as to how you're thinking about this?

Yeah, you know, I think it's a fair question. Middle on the, what's the benefit on it? It's probably

credibility, do you?

Rich Kruger: You know, the rerating is a bit of a philosophical question on it, but the same approach that has been taken in the downstream has been applied to the upstream. What is so uniquely similar in our business is our upstream has large plant operations, whereas many upstream around the world don't have that, offshore platforms or whatever. The same approaches and principles have applied. You flagged Firebag. In 2022, Firebag averaged 199,000 barrels a day. In 2024, it averaged 234, and in the Q4, it was 250, all without growth investment. Now what Peter and his team are scrambling to do is be sure we have the well capacity to feed.

100% of something. So, uh, but our our I'll tell you right now, we internally, we have 2 things, we Steward to use the historic external, um, utilizations. But that is not at all internal when you come into our executive meetings and we look at assets, we look at their performance relative to their best 30-day average consecutively. So so we have we Run 2 sets of numbers and the goal is to always improve based on historical performance. So, you know, the, the reradiating is, is a bit of a philosophical question on it, but, um, the the same approach that has been taken in the downstream has been applied to the upstream and what is so uniquely similar in our business is our Upstream has large plant operations, whereas many Upstream around the world don't have that Offshore platforms or whatever. So, the same approaches and principals have applied and you've, you flagged firebag,

in 2022 firebag averaged, 199,000 barrels a day in 2024, it averaged 234 and in the fourth quarter was 250

Rich Kruger: We would rather be a barrel short on the facility than a barrel short on the wells. Peter has been doing an extensive infill drilling program, which are extremely lucrative. He's been looking at the expansion of non-condensable natural gas, so we can redeploy steam. It's a continual chasing of the limiter, the last limiter, and saying, "How do we unlock potential? Is that well? Is that facility?" The principles apply across our business, upstream and downstream. I give kudos to our operating teams 'cause they've embraced this challenge, and they are repeatedly, continually finding ways to unlock capacity. When you're a capital-intensive business, return on capital, that, you know, many cases I came from a company where for decades that was the holy grail, and I believe that. We've spent a lot of money.

Rich Kruger: It's our job to maximize the return on that money we've spent. I think our Suncor teams, upstream and downstream, are doing a very good job on that. I think, you know, my guys remind me, we're not done yet.

Natural gas so we can redeploy steam. So it's a continual chasing of the, the limiter, the last limiter and saying, how do we unlock potential is that? Well, is that facility, but the principles apply across our business upstream and downstream. And I, I give kudos to our operating teams because they've embraced this Challenge and they are repeatedly continually finding ways to unlock capacity. And when you're a capital intensive business return on Capital that, you know, many cases, I came from a company where for decades, that was the Holy Grail and I, I, I believe that we've spent a lot of money. It's our job to maximize the return on that money. We've spent and I think our Suncor teams upstream and downstream are doing a very good job on that. And I think, you know, my guys remind me, we're not done yet.

Menno Hulshof: Thanks for that, Rich. That's really helpful. Maybe my second question is on your incremental free funds flow target and WTI breakeven target as well. Last I didn't see it in the release, but I believe the last time we were updated, you were guiding to achievement of both targets by the end of the year, which would be roughly a 1-year acceleration. Where do you stand on those targets today? Is year-end still a reasonable guideline? Is there upside to those targets over time?

Thanks for that rich, that's that's really helpful. Maybe my my second question is on your incremental, free funds flow Target and WTI break. Even a Target as well. And last, we were I I didn't see it in the release but I, I believe the last time we were updated, you were guiding to achievement of both targets by the end of the year, which would have, which would be roughly a 1 year acceleration. Where do you stand on those targets? Today is year end, still a reasonable

Rich Kruger: You know, Menno, the, we did the first year of the three-year plan. We achieved nearly 2 years. We've kind of suggested and insinuated that, you know, we could achieve a 3 and 2. We've got, you know, a month and a half, 2 months left in the year. I gotta tell you real quick. Quick story. I'm reminded of the 2015 Super Bowl. The Seattle Seahawks were on the 1-yard line, losing by 4 against the Patriots, about to punch it in with a battering ram of a fullback named Marshawn Lynch. They had victory. They were high-fiving and celebrating. For some unknown reason, they passed through an interception, and they literally snatched defeat from the jaws of victory. They were celebrating before the game was over. We still got 2 more months left.

A guideline and um, is there is there upside to those targets over time?

Rich Kruger: I want this team focused like a laser to finish strong. I think it is very fair and reasonable that you will get a comprehensive update on our 3-year plan and how we're doing on that quite early in the new year. Right now, home team's looking pretty good.

You know, meno the uh, we did the first year of the 3-year plan. We we achieved nearly 2 years, we've kind of suggested and insinuated that you know, we could achieve a 3 and 2. We've got you know, a month and a half 2 months left in the year. But I got to tell you real quick. Quick story, I'm reminded of the 2015 Super Bowl. The Seattle Seahawks were on the 1 yard line, losing by 4 against the Patriots, about to punch it in with a battering ram of a fullback named Marshawn Lynch. They had Victory. They were a high-fiving and celebrating and for some unknown reason they passed through an intercept interception and they literally snatched defeat from the jaws of Victory. They were celebrating before the game was over. We still got 2 more months left. I want this team focused like a laser to finish strong, but I think it is very fair and reasonable that. You will get a comprehensive update on our 3-year plan and how we're doing on that uh, quite early in the new year.

and, and right now,

Home teams looking pretty good.

Menno Hulshof: You're gonna be giving the ball to Marshawn then? Thanks for that, Rich.

Sure, you're going to be giving the ball to uh to Marshawn then.

Rich Kruger: I got a lot of battering rams on this team, so I could give it to a number of folks.

Thanks for that. I got a lot of. I got a lot of

Menno Hulshof: That's good to hear. Thank you.

I could give it to a number of folks.

It's good to hear. Thank you.

Operator: One moment for your last question. The last question comes from the line of Patrick O'Rourke of ATB Capital Markets. Patrick, please go ahead.

1 moment for your last question.

The last question comes from the line of Patrick. Oo of ATB Capital markets, Patrick, please go ahead.

Patrick O'Rourke: Hey, good morning, guys. Thanks for taking my question. Of course, congratulations to Kris Smith, Troy Little, and Adam Albeldawi there. First question here. With respect to the extension that you guys have done on the turnarounds here, and you've obviously been very thoughtful about planning and benchmarking these things, but what are the signposts, and I'm sure you have them, but maybe you can articulate them to us, around reliability, particularly later, in the cycle with the assets where you've extended the turnarounds there? If you're thinking about this, and I know every asset has sort of a different turnaround cycle, but what's the quantification of the volumes to date that you've done through these extensions?

Hey, good morning guys. Thanks for taking my question. Of course uh, congratulations to uh, Chris Troy Madame there. Um,

uh, sir, first question here with respect to the extension that you guys have done on the turnarounds here

Uh, and you've obviously been very thoughtful about planning and and benchmarking these things. But what what are the signposts? And I'm sure you have them, but maybe you can articulate them to us around, reliability, particularly later, uh, in the cycle with the assets where you've extended the turnarounds there and then if you're thinking about this and I know every asset has sort of a different turnaround cycle but what's the quantification of the volumes to date that you've done through these extensions?

Rich Kruger: Hey, team, do you want to take a comment on the... I think on the first one, the way I'd phrase it is, it's about managing risk, and it's about looking at, as we extend intervals, the confidence that we can do that without, you know, having anything go boom in the night and/or cost us more. Why don't you comment on that, and then maybe I'll come back on the volumetric impact.

Dave Oldreive: Yeah. I mean, we're really employing a risk-based inspection methodology to see the state of our current units and then applying the appropriate engineering fix to be able to assure ourselves that we're able to get these units kind of to the next interval. As Shelley said at the start, we start with benchmarking. We see where other units of a similar nature are elsewhere in the world, and we set our North Star at or above that and then kind of back out, okay, what needs to be true to make that happen? We apply this risk-based inspection methodology, and we do the work that's necessary to give ourselves the confidence to achieve it.

Peter Zebedee: Yeah. I mean, we're really employing a risk-based inspection methodology to see the state of our current units and then applying the appropriate engineering fix to be able to assure ourselves that we're able to get these units kind of to the next interval. As Shelley said at the start, we start with benchmarking. We see where other units of a similar nature are elsewhere in the world, and we set our North Star at or above that and then kind of back out, okay, what needs to be true to make that happen? We apply this risk-based inspection methodology, and we do the work that's necessary to give ourselves the confidence to achieve it.

Thank you team. Do you want to take a, take, a comment on the and I think on the first 1, it's where I'd phrase it is. It's about managing risk and it's about looking at. As we extend intervals, the the confidence that we can do that without, you know, having anything go boom in the night or and or cost us more. Why don't you comment on that? And then maybe I'll come back on the the volumetric impact.

Rich Kruger: I think the key, one thing I'd just add to it too is your interim inspection techniques, is you're monitoring things. We don't arbitrarily say, "Okay, we're going to a 6-year interval," and then just wake up 5 years from now and start preparing. You are monitoring technical and operational data as we go. I like that you're using more sophisticated techniques. You're using drones in our business. You're using a number of things that help us ensure that those intervals are indeed the right intervals. What I think we keep finding is opportunities to further extend. Dave, do you have anything you'd add to it?

Dave Oldreive: Thanks, Rich. I would just build on what Peter said is, when we started our turnaround journey, we really focused on work selection. What that did is allow us to do the right work at the right time and have a much better understanding to do that, you have to have a better understanding of the condition of the equipment. The natural outcome of that was, hey, looks like the equipment can go longer. Now that we really understand it better from a work selection perspective, we think it can go longer from a duration or interval perspective. It really was an outcome of the work that we've done, grounded in benchmarking. We know what the best of the best do for each technology that we operate, and that's really our target.

Methodology and we do the work. That's necessary to give ourselves the confidence to achieve it. And I think the key 1 thing, I just add to it too. Is is your, your interim is inspection techniques, is your monitoring things? So we don't arbitrarily say, okay, we're going to a 6 year interval and then just wake up 5 years from now and start preparing. You are monitoring Technical and operational data as we go. I like that. You're using more sophisticated techniques. You're using drones in our business. You're using a number of things that help us ensure that those intervals are indeed the right intervals. And what I think we keep finding is, is opportunities to further extend Dave, do you have anything you'd add to it? Yeah. Thanks Rich. And I would just build on what Peter said is when we started our turnaround Journey, we really focused on on work selection and what that did is allow us to do the right work at the right time and have a much better understanding of to, to do that. You have to have a better understanding of the condition of the equipment, and then the natural

Rich Kruger: Shelley?

Shelley Powell: Yeah. I just wanna maybe underline what Peter said, that when we talk about interval extensions, this is really a detailed technical engineering exercise. We follow a very rigorous management of change process that is embedded in our management system. This isn't a what does the benchmark say and let's go make it happen. This is a very detailed technical evaluation to make sure that we're very confident in the long-term reliability and safety of these assets.

Outcome of that was hey, looks like the equipment can go longer. Now that we really understand it better from a work selection perspective, we think it can go longer, uh, from a duration or interval perspective. So, it really was an outcome of the, of the work that we've done grounded in benchmarking. We know what the best of the best do for each technology that we operate. Uh, and that's, that's really our Target, shall we? Yeah, I just I just want to maybe underline what Peter said that when we talk about the interval extensions, this is really a detailed technical engine.

Rich Kruger: If I go back to your first question, this is not a third-party certified, but the increase in volumes this year, revising guidance upward in both production and refining throughput, the bulk of those revisions up are exceptional turnaround performance related.

Engineering exercise, we follow a very rigorous management of change process that is embedded in our management system. So this isn't a what is the Benchmark say? And and let's go make it happen. This is a very detailed technical evaluation to make sure that we're very confident in the long-term, reliability and safety of these assets.

And if, if I go back to your first question, this is not a third-party certified, but the increase in volume the this year, the uh, revising guidance upward in both production and refining. Throughput, the bulk of those revisions up are exceptional, turnaround performance related.

Patrick O'Rourke: Okay. Thank you very much.

Okay, thank you very much.

Operator: I am showing no further questions. I will now turn the call back over to Troy Little for closing remarks.

Dave Oldreive: Thank you everyone for joining our call this morning. I look forward to continuing to work with you all in the future. I also wanna sincerely thank you for all your support these past several years. If you have any follow-up questions, please don't hesitate to reach out to our team. Operator, you can end the call.

Troy Little: Thank you everyone for joining our call this morning. I look forward to continuing to work with you all in the future. I also wanna sincerely thank you for all your support these past several years. If you have any follow-up questions, please don't hesitate to reach out to our team. Operator, you can end the call.

I am showing no further questions. I will now turn the call back over to Troy little for closing remarks.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

Hello everyone, for joining our. Call this morning. I look forward to continuing to work with you all in the future and I also want to sincerely thank you for all your support these past several years. If you have any follow-up questions, please don't hesitate to reach out to our team operator. You can end the call.

This concludes today's conference call, thank you for participating. You may now disconnect

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