Q2 2026 Suncor Energy Inc Earnings Call

Speaker #1: Then answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised.

Speaker #2: 'Cause we're unstoppable. We're unstoppable. We're unstoppable. Every spotlight, every soundbite, everybody who gave up is just a fuel for wanting him more than anybody again.

Speaker #1: To withdraw your question, press star 11 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 Senior Vice President of External Affairs, Mr. Adam Albeldawi.

Speaker #1: Please go ahead.

Speaker #2: They can say what they want now, 'cause we'll be screaming out, "We can be heroes everywhere we go!" We can have all that we—.

Speaker #2: Thank you, Operator, and good morning. Welcome to Suncor Energy's second 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 second quarter earnings release as well as in our current annual information form.

Speaker #1: Good day, and thank you for standing by. Welcome to the Suncor Energy Q2 2026 financial results call. At this time, all participants are in listen-only mode.

Speaker #2: Both of which are available on Cedar Plus Edgar and our website, suncor.com. Certain financial measures referred to in these comments are not prescribed by Canadian Generally Accepted Accounting Principles.

Speaker #1: 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 *11 on your telephone.

Speaker #1: You will then hear an automated message advising your hand is raised. To withdraw your question, press star 11 again. Please be advised that today's conference is being recorded.

Speaker #2: For a description of these financial measures, please see our second quarter earnings release. We will start with comments from Rich Kruger. President and Chief Executive Officer.

Speaker #1: I will now hand the conference over to your speaker, Suncor Energy Senior Vice President of External Affairs, Mr. Adam Alveldawi. Please go ahead.

Speaker #2: Followed by Troy Little, Suncor's Chief Financial Officer. Also on the call are Peter Zebedee, Executive Vice President Upstream; Dave Oldreive, Executive Vice President Downstream; and Shelley Powell, Senior Vice President Operational Improvement and Support Services.

Speaker #2: Thank you, Operator, and good morning. Welcome to Suncor Energy Q2 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 Q2 earnings release as well as in our current annual information form.

Speaker #2: Following the formal remarks, we'll open the call up to questions. Now I'll hand it over to Rich to share his comments.

Speaker #3: Thanks, Adam. Our second quarter involved completing major maintenance and positioning for a strong second half. And that's exactly what we did. Troy will cover a financial performance.

Speaker #2: Both of which are available on Cedar Plus EDGAR and our website suncor.com. Certain financial measures referred to in these comments are not prescribed by Canadian Generally Accepted Accounting Principles.

Speaker #3: I'll first discuss operational, starting with safety. I'm pleased to report that our base plant mining received an industry safety award, the John T. Ryan Award, for best-in-class safety performance as recognized by the Canadian Institute of Mining.

Speaker #2: For a description of these financial measures, please see our Q2 earnings release. We will start with comments from Rich Kruger, President and Chief Executive Officer.

Speaker #3: This marks the second consecutive year a Suncor mining team received this award. Extremely proud of our team for this well-deserved recognition for excellence in an area that represents our highest overall priority.

Speaker #2: Followed by Troy Little, Suncor's Chief Financial Officer. Also on the call are Peter Zebide, Executive Vice President Upstream, Dave Oldreef, Executive Vice President Downstream, and Shelley Powell, Senior Vice President Operational Improvement and Support Services.

Speaker #3: Moving upstream production, 761,000 barrels a day in the second quarter. Before I continue though, a pop quiz. What's the difference between the story of Noah's Ark told in the book at Genesis and the Fort McMurray region in the second quarter of 2026?

Speaker #2: Following the formal remarks, we'll open the call up to questions. Now I'll hand it over to Rich to share his comments.

Speaker #3: Thanks, Adam. Our Q2 involved completing major maintenance and positioning for a strong second half. And that's exactly what we did. Troy will cover a financial performance.

Speaker #3: In Noah's Ark, the torrential rains stopped after 40 days and 40 nights. In Fort Mac, record rain and snowmelt continued throughout the quarter. With total precipitation the highest in more than 30 years, 50% higher than the 10-year average, and unfortunately a materially affected mining productivity and quarterly production with an estimated 50 to 60 thousand barrels a day impact in the second quarter.

Speaker #3: I'll first discuss operational, starting with safety. I'm pleased to report that our base plant mining received an industry safety award, the John T. Ryan Award, for best-in-class safety performance as recognized by the Canadian Institute of Mining.

Speaker #3: This marks the second consecutive year a Suncor mining team received this award. Extremely proud of our team for this well-deserved recognition for excellence in an area that represents our highest overall priority.

Speaker #3: Clearly, this was an unusual one-off event, but we learned from it to build resilience for future events. By improving our planning and preparation, with new 48 and 72-hour weather outlooks, by stockpiling mine in the most or, excuse me, in the most vulnerable areas within each mine, by pre-securing critical minerals and equipment such as gravel and graders, by using technology such as drones to monitor mine conditions real-time, the takeaway is we can't eliminate weather risk, but we can better mitigate the impact.

Speaker #3: Moving to Upstream Production, 761,000 barrels a day in the second quarter. Before I continue, though, a pop quiz. What's the difference between the story of Noah's Ark told in the book at Genesis and the Fort McMurray region in the second quarter of 2026?

Speaker #3: In Noah's Ark, the torrential rains stop after 40 days and 40 nights. In Fort Mac, record rain and snowmelt continued throughout the quarter. With total precipitation the highest in more than 30 years, 50% higher than the 10-year average, and unfortunately, it materially affected mining productivity and quarterly production with an estimated 50% to 60,000 barrels a day impact in the second quarter.

Speaker #3: The good news, since late, second quarter, things are back to normal with production at expected rates; in fact, July's preliminary production is on the order of 870,000 barrels a day, which would be our second highest July ever.

Speaker #3: Despite this year's weather, over the last three years, second quarter production has averaged 59,000 barrels a day, higher than the second quarter of the prior three years, with better turnarounds and higher asset performance driving the results.

Speaker #3: Clearly, this was an unusual one-off event, but we learned from it to build resilience for future events. By improving our planning and preparation, with new 48 and 72-hour weather outlooks, by stockpiling mine in the most or, excuse me, in the most vulnerable areas within each mine, by pre-securing critical minerals and equipment such as gravel and graders, by using technology such as drones to monitor mine conditions real-time, the takeaway is we can't eliminate weather risk, but we can better mitigate the impact.

Speaker #3: Upgrader utilization. 93% in Q2, with our spring turnaround at base plant now complete. Year to date, we're at 94%, a new record, 1% higher than the first half of last year.

Speaker #3: Refining throughput, 471,000 barrels a day in the quarter, our second highest Q2 ever, 28,000 barrels a day higher than our previous best Q2, which was last year.

Speaker #3: The good news, since late, second quarter, things are back to normal with production at expected rates; in in fact, July's preliminary production is on the order of 870,000 barrels a day, which would be our second highest July ever.

Speaker #3: Montreal and Edmonton, our largest refineries, led the way at 151 and 161,000 barrels a day respectively, and a combined utilization of 99%. Overall, Q2 network utilization 92% on our new, higher re-rated capacity of 511,000 barrels a day.

Speaker #3: Despite this year's weather, over the last three years, second quarter production has averaged 59,000 barrels a day, higher than the second quarter of the prior three years, with better turnarounds and higher asset performance driving the results.

Speaker #3: With major maintenance activities completed at both Commerce City and Sarnia, year to date utilization is 95%, a new record, 4% higher than the first half of last year.

Speaker #3: Upgrader utilization: 93% in Q2, with our spring turnaround at base plant now complete. Year-to-date, we're at 94%, a new record, 1% higher than the first half of last year.

Speaker #3: Here again, over the last three years, 24 through 26, Q2 throughput has increased every year averaging 78,000 barrels a day higher than the Q2 of the prior three years, continuing to raise the bar and improve performance.

Speaker #3: Refining throughput was 471,000 barrels a day in the quarter, our second highest Q2 ever—28,000 barrels a day higher than our previous best Q2, which was last year.

Speaker #3: Product sales. 655,000 barrels a day, light refining throughput, our highest second quarter ever, 54,000 barrels a day higher than the previous best second quarter, which was last year.

Speaker #3: Montreal and Edmonton are largest refineries, led the way at 151 and 161,000 barrels a day, respectively, and a combined utilization of 99%. Overall, Q2 network utilization: 92% on our new, higher re-rated capacity, a 511,000 barrels a day.

Speaker #3: Our eighth quarter in a row now with sales greater than 600,000 barrels a day, after never achieving 600,000 barrels a day in any quarter over our history.

Speaker #3: A note of interest, jet sales were a record 51,000 barrels a day. 90% higher than our previous record of 27,000 barrels a day in the first quarter.

Speaker #3: With major maintenance activities completed at both Commerce City and Sarnia, year-to-date utilization is 95%, a new record, 4% higher than the first half of last year.

Speaker #3: Achieved by fine-tuning our products late to maximize global market value. Over the last three years, 24 through 26, Q2 sales have increased every year averaging 101,000 barrels a day, higher than the Q2 of the prior three years.

Speaker #3: Here again, over the last three years, 24 through 26, Q2 throughput has increased every year averaging 78,000 barrels a day higher than the Q2 of the prior three years, continuing to raise the bar and improve performance.

Speaker #3: Here again, raising the bar, improving performance. Over the last several years, we've talked a lot about turnaround performance. Improving cost and schedule as a reminder, historically, greater than 20% of our capital roughly one and a quarter billion dollars per year was spent on turnarounds.

Speaker #3: Product sales: 655,000 barrels a day, light refining throughput, our highest second quarter ever, 54,000 barrels a day.

Speaker #3: During our I-Day in May 2024, we committed to reduce turnaround costs by 250 million dollars per year over three years. We achieved that objective in two years versus three.

Speaker #3: In mid-25, we increased our ambition to 350 million per year in capital reductions. We now expect to achieve that in 2026, again earlier than expected, and this year on March 31st, we upped our goal to 400 million dollars a year.

Speaker #3: With that context, I'll highlight Q2 performance focusing on Firebag, illustrating ways in which we continue to improve performance. Our Firebag turnaround involved major maintenance of the two largest of our four plants, 93 and 94, combined the two plants' process roughly two-thirds of the field's 250,000 barrels a day capacity.

Speaker #3: In our guidance for the year, we included an estimated impact of 85,000 barrels a day in the second quarter. This was our longest duration biggest volumetric impact event of the year.

Speaker #3: The last turnaround of similar scope was completed in 2022, four years ago. It took 58 days at a cost of 150 million dollars. This year, with a slightly larger scope, we completed the work in 44 days for 118 million dollars, 24% reduction in duration, 21% reduction in cost.

Speaker #3: This work, to achieve this, started more than two years ago included innovations in equipment inspections and work practices. Examples, using ROVs for internally inspecting long steam line sections.

Speaker #3: Using drones for inspections inside large diameter pipes and vessels. Circulating mineral oil inside process vessels to accelerate cleaning cycles. An idea by Firebag coordinators Max Bombardier and Samantha Snow, Max literally observed a contractor years ago using Johnson & Johnson baby oil to clean equipment.

Dollars per year was spent on turnarounds. During our, I Day in May 2024 we committed to reduce turnaround costs by 250 million dollars per year. Over 3 years, we achieved that objective in 2 years versus 3 in mid 255, we increased our ambition to 350 million per year in capital, reductions. We now expect to achieve that in 2026 again earlier than expected. And this year on March 31st, we upped our goal to 400 million dollars a year. With that context, I'll highlight 2 Q performance focusing on firebag illustrating ways in which we continue to improve performance.

Our Firebag turnaround involved major maintenance of the two largest of our four plants, 93 and 94 combined. The two plants process roughly two-thirds of the field’s 250,000 barrels-a-day capacity.

In our guidance for the year.

Speaker #3: He contacted Samantha, the process engineer at the time, to research it. Samantha identified a petrocanada lube product. We tested it over time, and this year we applied it at scale in plants 93 and 94, cutting two full days off of vessel cleaning by one simple idea.

We included an estimated impact of 85,000 barrels a day in the second quarter. This was our longest duration, biggest volumetric.

Impact event of the year.

The last turnaround of similar scope was completed in 2022, four years ago.

It took 58 days at a cost of $150 million.

Speaker #3: Saved time, saved money, kept people safer. This is one of a litany of examples of what Suncor people are doing today company-wide. Firebag results, lower cost, lower duration, and faster production restoration.

This year with a slightly larger scope. We completed the work in 44 days for 118 million dollars, 24%, reduction, in duration.

21%, reduction in cost.

Speaker #3: The second quarter impact was 60,000 barrels a day, from the turnaround work, a 25,000 barrel a day improvement versus the plan. We also completed prep work for future tie-ins and further planned the bottlenecking, working smarter today and smarter for tomorrow.

This work to achieve this started more than two years ago. It included innovations in equipment, inspections, and work practices.

Speaker #3: The final prize is with the work we did, we will now be extending plant 93 and 94's next turnaround cycle to five years versus the historic four years.

Speaker #3: A total team accomplishment complements the Jaffri and his regional turnaround team, Miles Fleming and his operational management team, and Jason Godet and his central support team.

Examples using rov's for internally inspecting Long Street esteem line sections, using drones for inspections inside. Large diameter, pipes and vessels circulating mineral oil inside, processed vessels to accelerate cleaning cycles and idea by firebag coordinators maximum Bombardier and Samantha snow Max. Literally observed a contractor years ago using Johnson and Johnson baby oil to clean equipment,

Speaker #3: Working together, focused, collaborative, results-oriented. I've highlighted Firebag, but we also completed other second quarter work successfully. Base plant U2 Coker, completed in 46 days versus 60 days in 2021.

Speaker #3: 203 million dollar cost, 10% less than the last event at 225 million dollars. Commerce City Refinery, completed in 50 days versus 74 days in 2021.

Speaker #3: We've got more work to do in the third quarter, but our second quarter results position us well for a strong second half. My overriding message, Suncor remains focused like a laser.

Speaker #3: To perform, compete and win. High operating standards, best-in-class performance ambitions, clear definitive plans, priorities, short-term and long-term, a deep team-based results-oriented high performance culture, focused on what we can control, and what we can execute.

Contacted Samantha, the process engineer at the time to research it, Samantha identified, a Petro-Canada Lube product. We tested it over time. And this year, we applied it at scale, in Plants, 93, and 94, cutting 2. Full days off of vessel cleaning by 1. Simple idea. Save time, save money, kept people safer. This is 1 of a Litany of examples of what suncorp people are doing today, companywide firebag results. Lower cost, lower duration, and faster, production restoration, the second quarter impact was 60,000 barrels. A day from the turnaround work. A 25,000 Barrel a day Improvement versus the plan. We also completed prep work for future tie-ins and further plan be bottlenecking, working smarter today and smarter, for tomorrow, the final prize is with the work we did. We will now be extending

Speaker #3: We believe we offer a compelling value proposition, reliable rateable high performance, reliable rateable high cash flow. A literal machine built to deliver in all business environments.

Speaker #3: With that, I'll turn it to Troy.

Speaker #2: Thanks, Rich, and good morning, everyone. This quarter was a powerful demonstration of just how much Suncor's ability to generate cash has changed in the past four years.

Cleaning Plant 93 and 94. Next, turnaround cycle—25 years versus the historic 4 years—a total team accomplishment. Compliments to Nibhil Jaffrey and his Regional turnaround team, Miles Fleming and his operational management team, and Jason Gadjit and his Central support team. Working together, focused, collaborative, results oriented.

Speaker #2: You may recall in our Q1 conference call that I highlighted that not only has our resilience improved, through the lowering of our corporate break-even by $10 per barrel, the earnings power of today's Suncor at higher prices has been improved by an even greater measure.

I've highlighted Firebag, but we also completed other second quarter work successfully. Base Plant U2 Coker was completed in 46 days versus 60 days in 2021, at a cost of $203 million—10% less than the last event at $225 million.

Speaker #2: Proving this point, we finished the second quarter of 2026 with 5.3 billion dollars in adjusted funds from operations. Nearly double that of a year ago.

The Commerce City Refinery was completed in 50 days, compared to 74 days in 2021. We've got more work to do in the third quarter, but our second quarter results position us well for a strong second half.

Speaker #2: And tying our all-time quarterly record set in the second quarter of 2022. The difference is that this time, WTI averaged $93 per barrel for the quarter, roughly $15 per barrel lower than in the second quarter of 2022, when it averaged $108 per barrel.

My overriding message.

Suncor remains focused like a laser to perform compete in Wynne High operating standards best-in-class performance Ambitions. Clear definitive plans. Priorities

Speaker #2: Even more meaningfully, on a per share basis, AFFO in the second quarter of 2026 of $4.52 per share is nearly 20% higher than the AFFO per share in that same historical quarter of 2022.

Speaker #2: We're delivering more cash flow and more value per share with less help from commodity prices. That's the result of building a stronger, more reliable, and more profitable business over the last few years.

A literal machine built to deliver in all business environments with that. I'll turn it to Troy.

Thanks, Rich, and good morning, everyone.

Speaker #2: And what's important to remember, this wasn't a perfect quarter. Unprecedented weather conditions impacted production and left value on the table. Even so, we matched our all-time AFFO record and delivered our highest ever AFFO and free funds flow per share.

This quarter was a powerful demonstration of just how much Suncor's ability to generate cash has changed in the past four years.

Speaker #2: As we continue to advance our investor Dave plan, we see further opportunities to improve, and grow earnings power from an already record level of performance.

You may recall in our q1 conference call that I highlighted that not only has our resilience improved through the lower lowering of our corporate break. Even by ten dollars per barrel. The earnings power of today's Sun course, higher prices has been improved by an even greater measure.

Proving this point, we finished the second quarter of 2026 with 5.3 billion dollars in adjusted funds from operations.

Speaker #2: Now I want to highlight our downstream business, which is again taken advantage of a strong margin environment to generate record segment AFFO. Suncor generated record downstream AFFO of 2.3 billion dollars this quarter.

Nearly double that of a year ago, and tying our all-time quarterly record set in the second quarter of 2022.

Speaker #2: Nearly 200 million dollars above our previous record in the second quarter of 2022. And we did that with a New York Harbor 211 crack margin net of the renewable volume obligation, or RVO, more than $10 per barrel lower than in the second quarter of 2022.

The difference is that this time WTI averaged $93 per barrel for the quarter, roughly $15 per barrel lower than in the second quarter of 2022, when it averaged $108 per barrel.

Speaker #2: Margin capture this quarter came in at 89%. Not bad, but that number. The underlying strength. This is because unlike many of our peers, our benchmark does not deduct RVO, even though the gross margin we compare it to nets out our own RVO compliance costs.

Even more meaningfully, on a per share basis, AFFO in the second quarter of 2026 at $4.52 per share is nearly 20% higher than the AFFO per share in that same historical quarter of 2022.

We're delivering more cash flow and more value per share, with less help from commodity prices.

That's the result of building a stronger more reliable and more profitable business over the last few years.

And what's important to remember, this wasn't a perfect quarter.

Speaker #2: With average RVO pricing jumping $5 per barrel from the first quarter to the second, the single factor drove a variance of 10 percentage points of capture.

Unprecedented weather conditions impacted production and left value on the table.

Speaker #2: Excluding this increase, we saw a very strong margin capture of 99% for the quarter. How did we achieve such strong margin capture? Our sales and marketing and supply and trading teams again turned market dislocations into value and particular in export markets.

Even so we matched, our all-time afo record and delivered our highest ever afo and free funds flow per share.

as we continue to advance our investor day plan, we see further opportunities to improve

and grow earnings power from an already record level of performance.

Speaker #2: Through ports and barrage in Montreal, we exported 56 cargos in the first half of the year, nearly matching the 58 cargos shipped in all of 2025.

Now I want to highlight our Downstream business, which is again taking advantage of a strong margin environment to generate record segment AFO.

Speaker #2: That's our integrated model at work, providing flexibility, capturing stronger netbacks, and turning market volatility into value. Years of logistics and commercial build-up paid off once again this quarter.

Suncore generated record Downstream afo of 2.3 billion dollars? This quarter nearly million dollars above our previous record in the second quarter of 2022.

Speaker #2: Now let me spend a minute on our balance sheet, as well as capital allocation. Suncor ended the quarter with 4.5 million dollars in net debt, 75% lower than where we started this decade, and placing us at less than half of our guardrail of one times net debt to cash flow at $50 per barrel WTI.

And we did that with a New York Harbor 211. Crack margin. Net of the renewable, volume obligation or rvo, more than 10 dollars per barrel lower than in the second quarter of 2022.

Margin capture, this quarter came in at 89%.

The underlying strength.

Speaker #2: Just like our low corporate break-even, this amount of net debt gives the company a level of resilience that it has never had in its history.

This is because unlike many of our peers, our Benchmark does not deduct our even though the gross margin, we compare it to next out. Our own rvo compliance costs.

Speaker #2: With our balance sheet in excellent shape, backed by a business that is able to generate meaningful excess funds across the commodity cycle, our focus is then on getting funds back to shareholders in a reliable and predictable way.

With average rvo pricing jumping, 5 dollars per barrel from the first quarter to the second. The single Factor drove a variance of 10 percentage points of capture.

Excluding this increase. We saw a very strong margin capture of 99% for the quarter.

Speaker #2: From a shareholder return perspective, in the second quarter we returned 1.8 billion dollars to shareholders, in the form of 1.1 billion dollars in buybacks, and 706 million dollars in dividends.

How did we achieve such strong margin capture? Our sales and marketing and supply and trading teams, again, turned market dislocations into value, in particular, in export markets.

Speaker #2: And starting this week, those buybacks will increase to 500 million dollars per month, or 1.5 billion dollars per quarter, reflecting the substantial growth in excess funds this business has generating in the current environment, as well as the benefits of the improvements we detailed in our recent investor day.

Through ports and bar to Montreal, we exported 56 carros. In the first half of the Year, nearly matching, the 58 cargo shipped in all of 2025.

That's our integrated model at work. Providing flexibility, capturing stronger, net backs and turning Market volatility into value.

Speaker #2: This marks our second increase in shareholder returns this year. As a reminder, we entered 2026 with a buyback of 275 million dollars per month.

Years of logistics and commercial buildout paid off once again this quarter.

Now, let me spend a minute on our balance sheet as well as our as capital allocation.

Speaker #2: We then increased it to 350 million dollars per month in April, and now are increasing it again to 500 million dollars per month. Put simply, the better this business performs, the more shareholders should expect to share in that success.

Suncor ended the quarter with 4.5 million in net debt.

75% lower than where we started this decade and placing us at less than half of our guardrail of 1x net debt to cash flow at $50 per barrel WTI.

Speaker #2: And while we will always retain the flexibility to respond to material changes in market conditions, we believe that predictable and ratable shareholder returns can be achieved even as commodity prices inevitably move around.

Just like our low corporate Break. Even this amount of net deck is the company a level of resilience that it, it has never had in its history.

Speaker #2: With that, I will turn the call back over so that we can take some questions.

Speaker #3: Thank you, Troy. I'll turn the call back to the operators to take some questions.

With our balance sheet in excellent shape. Backed by a business that is able to generate meaningful excess funds across the commodity cycle. Our focus is then on getting funds back to shareholders in a reliable and predictable way

Speaker #4: Thank you. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, press star 11 again.

From a shareholder return perspective. In the second quarter, we returned 1.8 billion dollars to shareholders in the form of 1.1 billion in BuyBacks.

7066 million in dividends.

Speaker #4: Please stand by while we compile the Q&A roster. And our first question will come from the line of Greg Pardy with RBC Capital Markets.

Speaker #4: Your line is open.

Speaker #5: Yeah, thanks. Good morning. Thanks for the rundown. You know, probably the most obvious question is just, you know, with the increase in the buyback now to 500 million per month, is that sort of a forever number?

In the current environment, as well as the benefits of the improvements, we detailed in our recent Investor Day.

This marks our second increase in shareholder returns this year.

As a reminder, we entered 2026 with a buyback of $275 million per month.

Speaker #5: It certainly has good legs as you move into 2027, just given, you know, free cash flow generation, the balance sheet. And let's just say the 500 million level, you still have net debt kind of trending down to zero, which would be an incredibly good problem to have.

We then increased it to $350 million per month in April, and now are increasing it again to $500 million per month.

Put simply the better this business performs, the more shareholders should expect to share in that success.

Speaker #5: But are there other levers that you could pull, you know, in terms of returning cash to shareholders?

And while we will always retain the flexibility to respond to material changes in market conditions,

Speaker #3: Troy?

Speaker #2: Yeah, sure. Thanks, Greg. You know, I think you should look at our action to answer that question. Recall that in 2025, the crude price moved between the low 70s and the high 50s per barrel.

We believe that predictable and reliable shareholder returns can be achieved, even as commodity prices inevitably move around.

With that, I will turn the call back over so that we can take some questions.

Speaker #2: Throughout that entire time, we kept our buyback constant. At 250 million dollars a month, until we actually increased it in December by 10%. And that increase came at the lower part of that year's commodity cycle.

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

Speaker #2: More recently, look at Q2. We started the quarter with WTI at over $100 per barrel, and ended the quarter with it under $70 per barrel.

Thank you as a reminder, to ask a question. Please press star, 1, 1 1 on your telephone, and wait for your name to be in now. So withdraw, your question, press star, 1 1 1, again please, stand by while we compile the Q&A roster,

Speaker #2: Yet our buyback continued ratably and predictably at 350 million dollars per month. So like any company, we have to maintain some flexibility for extreme events.

And our first question will come from the line of Greg Pardy with RBC Capital Markets. Your line is open.

Yeah. Thanks. Goodbye.

Thanks for the uh, for the rundown.

Speaker #2: But it should be clear by now that we want to deliver something that's unique and has value to investors. And that is predictable and ratable shareholder returns through the commodity cycle.

You know, probably the most obvious question is just, you know, we can increase in the buyback, you know, by $500 million per month.

Speaker #2: And that's not the only thing we're doing that we think is unique. We also do not have an absolute dollar net debt target, that includes thresholds for when we pay shareholder returns.

Speaker #2: We don't, because we don't think shareholder returns should be driven by what our debt is. But rather, should be driven by what our performance is.

Speaker #2: That is why we instead have a guardrail of one times net debt to cash flow at $50 per barrel WTI. That allows us to manage our leverage alongside how our underlying business evolves.

Is that sort of a forever number? It certainly has good legs as you move into, uh, into '27 just given, you know, free cash flow generation, the balance sheet, and—let's just say that at the $500 million level—you still have net debt kind of trending down to zero, which would be an incredibly good problem to have. But are there other, um, levers that you could pull, you know, in terms of return of cash to shareholders?

Sure. Yeah sure. Thanks Greg. You know I I think you should look at our actions.

To answer that question.

Speaker #2: So as to specific timing, I would recommend you all take your view of commodity prices, even if it's a low one, and run it through your models for the foreseeable future, with a 500 million dollar a month buyback, and see how long that would last.

Recall that in 2025, the crude price moved between the low $70s and the high $50s per barrel. Throughout that entire time, we kept our buyback constant at $250 million a month until we actually increased it in December by 10%.

Speaker #2: That duration is what a rocket-solid balance sheet and a top-quality business can offer.

And that increase came at the lower part of that year's commodity cycle.

Speaker #5: Okay, well, I'm glad I asked that question. I think we got the answer. Rich, love the reflection, you know, with like a multitude of things you've already kind of come up with in terms of mitigation and how you'll prepare for this.

More recently. Look at Q2 we started the quarter with WTI at over a hundred dollars per barrel and ended the quarter was it under seventy dollars per barrel.

In our buyback, continued, ra bleed and predictably at 350 million per month.

So, like any company, we have to maintain some flexibility for extreme events.

Speaker #5: I know you're always thinking through things. Are there any other, you know, just observations, learnings from the quarter operationally, whether it's upstream or downstream, you know, in terms of how you're continuing to shape the company for resilience that you'd like to share?

But it should be clear by now that we want to deliver something that's unique and a value to investors. And that is predictable and rateable shareholder returns through the commodity cycle.

Speaker #3: Hey, Greg, you're cracking up quite a bit, but I think I got the gist of it. And I'm going to turn it over to Peter in just a second to use an upstream example or something.

And that's not the only thing we're doing that. We think is unique. We also do not have an absolute dollar net debt Target that includes thresholds for when we pay shareholder returns.

Speaker #3: You know, what we're seeing as we've institutionalized a high-performance culture in the organization, we can't always stop things from happening or things we can't control, but we can very much control how we respond and recover when things off plan happen.

We don't because we don't think shareholder returns should be driven by what our debt is. But rather should be driven by what our performance is.

That is why we instead have a guardrail of 1x net debt to cash flow at $50 per barrel WTI.

that allows us to manage our leverage alongside how our underlying business evolves.

Speaker #3: And I think the example of the, you know, the rainfall is a good example in it that we step back and learn from that and just didn't accept what we were given, but said, how can we change this outcome in the future?

So, as to specific timing, I would recommend you all take your view of commodity prices—even if it's a low one—and run it through your models for the foreseeable future, with a $500 million-a-month buyback, and see how long that would last.

That duration is what a rock-solid, solid balance sheet and a top-quality business can offer.

Speaker #3: And Peter, you know, you and I were talking yesterday. Why don't you share a further example of what we're doing to learn as we go on?

Okay, well, I'm glad I asked that question. I think we got the answer. Yes, love the, um,

Speaker #2: Yeah, thanks for the question, Greg. I would say we've really taken the time to step back and understand what the learnings are from the significant rainfall events that we saw through the first quarter and really start to proceduralize even more our response to adverse weather conditions.

Speaker #2: Rich mentioned a couple of them in his comments there, but strategically, you know, placing stockpiles of ore in and around the mines, strategically placing materials for road construction and support equipment to make sure our road networks come up quicker are just a couple examples of that.

Reflection, uh, you know, with like a multitude of things, you've already kind of come up with, in terms of mitigation and how you're prepared for this. I know you're always thinking through things. Are there any other, you know, just observations learnings from the quarter operationally, whether it's upstream or Downstream and, you know, and here's how you're continuing to shape the, uh, the company for resilience that you're you'd like to share

Hey Greg, you're cracking up quite a bit, but I think I got the gist of it, and I'm going to turn it over to Peter in just a second to use an upstream example of some of what we're seeing as we've...

As we've.

Speaker #2: We've also looked at implementing technologies such as drone technologies and overlaying that on some maps to look at where are we most vulnerable and where do we have to deploy our equipment more rapidly.

Speaker #2: And we've seen some success post-Q2. In recent rainfall events, where our response times are much quicker, our ability to ramp back up to full production capacity has increased significantly.

Speaker #2: And maybe one more example, Greg, we talked about on previous calls, implementation of a mud mode in our AHS system at base plant. In fact, we've now moved to mud mode 2.0 and seen a lot of success in reducing the slippage events on the trucks.

Just just didn't accept what we were given that said, how can we change this outcome in the future and Peter, you know, you and I were talking yesterday. Why don't you share, you know, a further example of of what we're doing to to learn as we go on.

Yeah, thanks for the question, Greg. I would say we really take the time to step back and

Speaker #2: As a result, in fact, the slippage events are down 80% relative to the initial version of this software. And that's you know, I think that's a good example of a continuous improvement mindset that our teams have working collaboratively with our vendors to be able to do that and deploying that at scale.

Speaker #2: So lots of learnings and, yeah, pleased with the results in with recent performance.

Speaker #3: One other thing, I'll just add to that. You know, thanks, Peter. We have a the ELT, I'm looking around the room, we have a text thread that we're we communicate with continuously.

Speaker #3: We'll talk about everything from, you know, flames draft picks to movie quotes to performance. And looking at Dave, as I say this, Dave will share with us a particular unit at a refinery that went down in about the time I catch up with the text thread.

Understand what the learnings are from the significant rainfall events that we saw through the first quarter, and really start to procedure lines, even more our response to adverse weather conditions, Branch mentioned, a couple of them in his, uh, comments there. But strategically, uh, you know, placing stock piles of ore in around the mines. Strategically placing materials for road construction and support equipment to make sure our road networks, come up quicker or just a couple examples of that. We've also looked at implementing Technologies such as drone Technologies and overlaying that on some

Speaker #3: He's already put another note in there and we fixed it and we're back on at full rates again. It's just an organizational capability that rallies and focuses when something goes off plan to correct and rectify it ASAP.

Speaker #3: And we can give you dozens of examples of that that are different today than they were at points in time in the past.

To look at, where are we most vulnerable? And where do we have to deploy? Our equipment more rapidly. Um, and we've seen some success, uh, post Q2, uh, in recent rainfall events where our response times are much quicker, our ability to ramp back up to full production capacity has increased significantly, uh, and maybe 1 more example of, right? We, we talked about on previous calls, uh, implementation of a, a mud mode and our AHS system at base plans. Uh, in fact, we've now

We've moved to My Mode 2.0 and are seeing a lot of success in reducing the slippage events on the trucks.

Speaker #5: Terrific. Thanks very much.

Speaker #1: Thank you. One moment for our next question. And that will come from the line of Dennis Fong with CIBC World Markets. Your line is open.

As a result, in fact, the slippage events were down 80% relative to the initial.

Speaker #6: Hi, good morning. Thanks for taking my questions and appreciate the prepared remarks there. Just around how you were managing through a very tough quarter.

Speaker #6: My first question, harking back to the investor day, where you've discussed thoughts around near-term growth as well as long-term resource development, but with like a large focus on value and volume.

Speaker #6: As we look towards scenarios where egress out of Western Canada have the potential to increase quite significantly, how does that necessarily maybe shift or shape your thoughts around managing options to either accelerate development from some of your in-situ opportunities that Lewis and Firebag, or how have your teams maybe found opportunities to showcase that same amount of growth, but maybe with like lower capital or more efficient deployment of that capital?

Version of this, uh, software. And that's, uh, you know, I think that's a good example of a continuous Improvement mindset that our teams have working collaboratively collaboratively with our vendors to be able to do that and deploying that at scale. So so lots of learning and uh yeah pleased with the results in uh uh with recent performance 1 of the thing. I'll just add to that, you know. Thanks Peter. We have a big deal. I'm looking around the room, we have a text thread that we're, we communicate with pretty continuously. We'll talk about everything from, you know, Flames draft picks to movie quotes to Performance. And looking at Dave, as I say this, Dave will share with us, uh, a particular unit at a Refinery that went down and about the time I catch up with the the text thread. He's already put another note in there and we fix it. We're back on at full rates again. It's just an organizational capability that rallies and focuses when something goes off plan to correct and rectify.

Speaker #3: Thanks, Dennis. It's like you sat in on our board meeting last week. You recall in on May or, excuse me, March 31st, we defined or described that plan as largely within our control.

It’s ASAP, and we can give you dozens of examples of that.

That are different today than they were at points in time in the past.

Terrific. Thanks very much.

Thank you. One moment for our next question.

Speaker #3: It didn't need fiscal and regulatory reform. It didn't need new pipelines. This is something we had confidence that we could deliver and execute. Of course, it was underpinned by the large high-quality resource base predominantly in situ, that gives us a lot of optionality.

And that will come from the line of Dennis Fong with CIBC World Markets. Your line is open.

Hi. Good morning. Uh, thanks for taking my questions and and uh, appreciate the uh, the prepared remarks there um surround how you are managing through a very a very tough quarter.

Speaker #3: We were very much embracing this design one, build multiple strategy approach for a whole host of reasons. But today, we're also looking at what's the right pace cadence of that.

Speaker #3: We have optionality to accelerate that if growth were to be valued by us and our shareholders. We're not we've not shifted to that mode at all, but we have that flexibility.

Speaker #3: Certainly, things in Canada have been more encouraging over the last year or so than the prior decade. But the beauty with us is we have the optionality to go at a quicker pace at a ramped-up growth if and when market conditions would say that is the right strategy.

Um my first question uh Harkens back to the investor day where you discussed um thoughts around near-term growth as well as long-term resource development but with like a large focus on value and volume. Um as we look towards scenarios where e-grass out of western Canada have the potential to uh increase and increase quite significantly. How does that necessarily maybe shift or shape, your thoughts around managing options to either accelerate development um from some of your Institute opportunities that Lewis and firebag or, um, how have your team maybe found opportunities to Showcase that same amount to growth? But maybe with small, like lower capital or more efficient, uh, the deployment of that capital,

Speaker #3: We're not there yet. But we're playing very close attention to the signposts and doing some pre-work that would preserve our options to do that if we selected it.

Speaker #6: Great. Appreciate that background. And I promise I was not sitting in your board meeting.

Speaker #3: You're welcome. You're welcome anytime, Dennis.

Thanks. Dennis. You you it's like you sat in on our board meeting last week. You you recall in on May? Excuse me March 31st we defined or described that plan as largely within our control. It didn't need fiscal and Regulatory reform. It didn't need new pipelines. This is something we had confidence that we could deliver and execute. Of course, it was underpinned by the large high-quality resource base.

Speaker #6: Appreciate that. I want to ask a sector question just on regional integration. Clearly, through the second quarter, that benefited a lot of situations in, we'll call it avoiding, we'll call it the worst outcomes associated with the unprecedented weather conditions that you guys experienced in the second quarter.

Predominantly in situ, that gives us a lot of optionality. We are very much embracing this design-one, build-multiple strategy approach for a whole host of reasons.

Speaker #6: Can you talk towards, again, I know that's frankly a backbone and a staple of the way that you think about operating your assets, but can you talk towards, again, in light of the potential growth optionality and even maybe the increased demand for diligent or even solvent for some of the technologies you're planning to employ?

to accelerate that, if growth were to be valued by us and our shareholders,

We’re not—we’ve not shifted to that mode at all, but we have that flexibility. Certainly, things in Canada have been more encouraging over the last year or so than the prior decade.

Speaker #6: Can you talk towards how that regional integration really helps drive we'll call it confidence in terms of your ability to execute on some of those operations?

Speaker #3: You know, I've been known to say corny slogans now and then. You know, there's integration, there's Suncor integration. And you've hit right on it.

Speaker #3: And of course, it's the unique level of fiscal. If I'm looking down the table and really, you know, Peter, Shelley, Dave, you all can comment on this because it's how you're operating committee, how you work day in, day out to maximize value.

But the beauty with us is we have the optionality to go at a quicker Pace at a ramped up growth. If and when market conditions would say, that is the right strategy, we're not there yet, but we're paying very close attention to the signposts and doing some pre-work that would preserve our options to do that. If we if we selected it,

Speaker #3: Peter, do you want to start?

Speaker #2: Yeah, maybe I'll start by saying, yes, you're right, Dennis. We did move a large amount, over $90,000 barrels around the region in the quarter.

Great. I appreciate that. That background and I, I promise I was not sitting in your, your board meeting. Um, you're you're welcome, you're welcome anytime. Dennis.

Speaker #2: That certainly helped to make sure we got the bitumen to those upgraders and maintain high upgrader utilization. Suncord was a classic example of that, where we saw impacts due to wet weather conditions in the Suncord mines.

Speaker #2: We moved Firebag bitumen over and kept the upgraders running full. And that's really the name of the game. You know, we having that operational flexibility for us, we know is a competitive differentiator moving lots of four-hills barrels into the base plants as well.

Um, appreciate that. Um, I want to ask a check for a question, just on, on regional integration. Um, clearly through the second quarter, that benefited a lot of situations in, in— we'll call it avoiding, we'll call it the worst outcomes associated with the untrusted weather conditions that you guys experienced in the second quarter. Can you talk to us again? Um, I know that's, that's frankly a backbone and a staple of the way that you think about operating your assets. But can you talk to us again in light of the...

Speaker #2: Just to touch on the diluent side, we are fully integrated. We make our diluent at a base plant upgrader. We can ship it up to Firebag via a pipeline that's in place and operating today.

Potential growth, optionality, and even maybe the increased demand for diluent, or even solvent for some of the technologies you're planning to employ. Can you talk to us about how that regional integration really helps drive, we'll call it, confidence in terms of your ability to execute on some of those operations?

Speaker #2: We actually have a spared line in the ground as well today, should we choose to scale up. And that will be one of our in-situ development projects that we're going to bring on here in the next couple of years.

Speaker #2: And so it's one thing being integrated on the bitumen side, being integrated on the upgrading side between upgrader products, but also on the diluent side, which will help our in-situ operations.

Speaker #2: So yeah, it's a very handy to have as an operator when things don't quite go as expected.

You know, I I've been known to say courney slogans now and then you know there's integration there's suncore integration and you've hit right on it. And of course, it's the unique level of physical from looking down the table and, uh, really, you know, Peter Shelley. Dave, you all can, uh, comment on this because it's how you, your operating committee, how you work day in day out to maximize value Peter. Do you want to start? Yeah, maybe I'll I'll uh start by saying yes. You're right. Dennis we did move up a large amount of over 90,000 barrels. Uh

around the um,

Speaker #3: Just, you know, and just to double down on that, the flexibility that provides us and the resiliency market conditions, reduces our reliance on third-party providers and any operational upsets they may have.

Speaker #3: That flexibility is just, you know, it's tremendous. And you see it in our results. Dave, why don't you make a comment a little bit too as well?

Speaker #3: And I'm thinking in terms of the integration of the upstream with Edmonton and the flexibility it provides.

Region in the quarter that certainly helped to make sure we got the Benjamin to those upgraders and maintain High upgrade or utilization. Uh St. Crude was a a classic example of that where we saw impacts due to wet weather conditions in the Synchro Minds, we moved firebag been over and cut the under upgraders running, uh, full, uh, and that's really the name of the game, you know? We we having that operational flexibility for us, we

Speaker #4: Yeah, absolutely. So we integrate our Edmonton refinery directly with our oil sands operations. We run a single what we call linear programming model to optimize that.

Speaker #4: Think of that as a big AI tool that optimizes the region with the Edmonton refinery and all the way to our markets and to our export sales globally and our domestic markets.

Speaker #4: With that capability, we can do a lot of interesting things. One of those things is if there's an upset in the region, we can adjust the creeds slate in Edmonton, take some special streams to help keep the base plant upgrader full, for example, while Edmonton refinery is optimized.

Speaker #4: We also have diluent processing capability. So for short diluent, we can send some diluent up north. But more interestingly, we can run intermediate streams, special blended crudes to fill at the Edmonton pots and pans.

Speaker #4: And you'll see that in this quarter. You know, Rich mentioned we had record throughput. We also had record sales. And you'll note that the record sales are much bigger gap than the record throughput.

Speaker #4: And the difference, large part of that difference is these intermediate streams that we ran to Edmonton refinery. Over the quarter. 10 to 15,000 barrels a day is our capability.

We know as a competitive differentiator moving lots of 4 Hills barrels into the base plants as well. Um just to touch on the diluent side, we are fully integrated, we make our our diluent at the base plan upgrader. We can ship it up to flyer bag by a pipeline that's in place. And operating today, we actually have a spared line in the ground as well. Today should we uh choose to scale up and that will be 1 of our uh Institute development uh projects that we're going to bring on here in the next couple of years. And so it's it's 1 thing being integrated on the bench side, being integrated on the upgrading side between uh upgrader products. But also on the dillian side which will help our insights you operations. So uh, yeah. It's a it's a very handy to have as an operator when things don't quite go as expected just, you know, and, and just to double down on that, the flexibility that provides Us in the resiliency Arielle, market conditions, reduces our reliance

Speaker #4: We continue to grow that. And that really translates into pure diesel production that we sell really globally to our export markets around the world.

Speaker #4: So really, you know, from the oil sands all the way to diesel sales in Europe and Panama and Asia, we integrate this business.

On third-party providers. And any operational upsets. They may have that flexibility is just is tremendous. And you see it in our results. They want you to make a comment a little bit too, as well, of the and I'm thinking in terms of the integration of the Upstream with with Edmonton and the flexibility, it provides absolutely. Um, so

Speaker #3: So if we invited you inside our tent, what you'd see is operations teams driving the safety, integrity, reliability at an asset-specific level. But we've added as our performance has reduced variation, elevated, integrated teams that are continually looking at maximum value.

Speaker #3: We're molecules move. How do they compensate when we have an operational upset? Again, the whole goal is maximize value. And an operational level, you can't always see that.

We, we integrate our inventory directly with, uh, with our oil fans operations. We run a single what we call linear programming model to optimize that think of that as a big AI tool that optimizes the, uh, the region with the Edmonton Refinery and all the way to, to our markets and to our export sales globally and our domestic markets with that. With that capability, we can do a lot of, a lot of interesting things. 1 of those things is if there's an upside in in the region,

Speaker #3: But when you rise above it, you see the interconnectedness. And that is a different today than the past. And you see it in our results.

We can adjust the crude slated for Edmonton. Take some special streams to help keep the base plan up, greater fill, for example. While Edmonton refineries optimize, we also have delivery processing capability. So for a short duration, we can send some volume up north.

Speaker #3: I thought Troy described it very well. The ratable predictable nature that has less reliance on underlying market conditions. It's how we work.

Speaker #6: Great. Really appreciate that color from all of you, I'll turn it back.

Speaker #5: Thank you. One moment for our next question. That will come from the line of Menno Hulshof with TD Cowan. Your line is open.

Speaker #7: Thanks. And good morning, everyone. I'll start with a question on global product sales, which were clearly very strong and continued to increase. Where do you stand in terms of building out access to global markets?

Quarter, You Know, Rich mentioned, we had record throughput. We also had record sales and you'll note that the record sales are much a much bigger Gap than the record, throughput and the difference, large part of that difference is these intermediate streams that we ran to Edmonton Refinery, uh, over the over the quarter, uh, 10 to 15,000 barrels of days. Our capability, we continue to grow that. And that really translates into pure diesel production that we, we sell, uh, really globally to, uh, to our export markets around the world. So really, you know, from from the oil, sands all the way to to uh, to diesel sales and Europe and Panama and Asia. Uh we

Integrate this business. So, if we invited you inside our tent, what you would see is operations teams driving the safety, integrity, and reliability at an asset-specific level.

Speaker #7: And would you frame this as a more sustainable improvement to the business? Or would you characterize it as being more transitory and largely driven by ongoing volatility and pricing for global refined products?

Speaker #3: Thanks, Menno. I'll start and then Dave will comment further. The strategy we put in place didn't just start with the recent volatility in global markets.

Speaker #3: We had a vision a few years ago of a broader presence that could open up markets and open up avenues of value for us.

Speaker #3: So in our investor day, we talked about how a few years ago, we could sell in 20-some countries around the world. And now that's in the mid-40s.

But what we've added as our performance has improved is reduced variation and elevated integrated teams that are continually looking at maximum value—where molecules move, how do they compensate when we have an operational, uh, upset? Again, the whole goal is to maximize value, and at an operational level you can't always see that, but when you rise above it, you see the interconnectedness—and that is different today than in the past. You see it in our results. I thought Troy described it very well: the rateable, predictable nature that has less reliance.

On underlying market conditions, it's how we work.

Speaker #3: We have described how we've expanded our logistical capabilities with time charters on vessels so we could move products and crude off of the West Coast, products off of the East Coast.

Great. Really appreciate that. Caller from from all of you, I'll turn it back.

Speaker #3: So it has been a several-year in creation in what you've seen now most recently. You've seen the benefits of that. Dave, you want to comment a little bit about particularly this kind of, do we think there's a structural benefit here versus is this a, you know, a one-off transient?

Thank you, 1 moment for our next question. That will come from the line of meno hole shaft with TD cow when your line is open,

Thanks, and good morning, everyone. I'll start with a question on global product sales, which were...

Speaker #3: And I'll tell you what the right answer is, but go ahead.

Speaker #4: I think I know. Yeah, Menno, I'll comment a little bit on our Rich commented on how we've been building out our trading platform over the last number of years, selling into multiple countries around the world.

Speaker #4: And I've commented before how we have unique capacity and capabilities to export off both coasts. So I'll talk about each coast separately. Off the West Coast, we've been you know, that is our terminal in Berard.

Clearly, very strong and continued to to increase. Where where do you stand in terms of building out access to to Global markets and would you frame this as a more sustainable Improvement to the business or would you characterize it as being more transitory and largely driven by ongoing volatility and and pricing for uh Global refined products?

Speaker #4: We rail and pipeline those molecules almost all diesel. From our Edmonton refinery highly competitive asset that can sell globally at competitive netbacks. We've been growing that logistic just through attention to detail, constraint-busting mindset, the integrated team, kind of optimizes our rail loading, our rail movements, our rail offloading.

Speaker #4: We blend that with the pipeline shipments that come in on TMX. We optimize vessel loading windows. And we maximize the sufficient logistic. And with that, you know, last year we could do three to four cargoes a month on a good month.

Thanks man, I'll start and then Dave will comment further the the strategy we put in place. Didn't just start with the recent volatility in global markets. We had a vision a few years ago of a broader presence that could open up markets and open up Avenues of value for us. So like and I'm Dez we talked about how uh a few years ago we could sell in 20, some countries around the world and now that's in the mid 40s. We have described how we've expanded. Our logistical capabilities with time charters on vessels

Speaker #4: You know, the end of last year and into early '26, through that constraint-busting activity, we've moved that up to five cargoes a month. And in May, we actually achieved in the calendar month of May, we achieved for the first time six cargoes a month.

Speaker #4: So yes, it is structural. We can continue to do more from that efficient logistic and that competitive asset base. And then we market that through our trading organization off the West Coast.

So we can move products and crude off of the West Coast Products off of the East Coast. So it it has been a several year in creation and what you've seen. Now most recently, you've seen the benefits of that. Dave, you want to comment a little bit about particularly this kind of do we think there's a structural benefit here versus is this a, you know, a 1-off transient and I'll tell you what the right answer is. But go ahead. I think, I think I know

Speaker #4: On the East Coast, we have similar capabilities. We have our new parachem asset, which we can rail supply. We also have our Montreal refinery, which we can what I call orbit shift.

Speaker #4: We can decide how much of Montreal refinery supplies domestically, versus exports. And the big story for Montreal in this quarter is our ability to export jet.

Speaker #4: Jet fuel as you you know, as you know, blew up in the kind of late first quarter into the second quarter. And we've recently started making jet fuel in Montreal really in the fourth quarter of last year and continued into the first quarter.

Yeah, man. I'll comment a little bit on our rich. Rich commented on how we've been building out our trading platform over the last number of years selling into multiple countries around the world. Uh, and I've commented before how we have unique capacity and capabilities to export off both coasts. So I'll talk about each Coast separately uh off the West Coast we've been um you know that is our terminal in Berard. We we

Rail and pipeline. Uh those molecules almost all diesel uh from from our Edmonton Refinery uh and highly competitive asset that can can sell globally and

Speaker #4: That was meant to be you know, less than 5 KBD domestic sale opportunity that we would ultimately grow. In the first quarter in the second quarter, Nelson Cotu from Montreal, he's production control coordinator in Montreal.

competitive, net bags, we've been growing that logistic um,

just to

Speaker #4: He went out boots on the ground, walked the lines, looked around and said, I need to figure out how to export jet. What's the logistic that can do that?

Speaker #4: And found a zero-cost opportunity to go export jet fuel out of Montreal. And we were able to then take a number one diesel stream, which also meets jet qualities, convert it to jet qualities and continue to export.

tension to detail a constraint busting mindset, the integrated team kind of optimizes our rail. Loading, our rail movements, our rail offloading, we blend that with the pipeline shipments that come in on TMX. We optimize vessel loading windows and we maximize the sufficient logistic. And with that, you know, last year, we could do 3 to 4 carros a month on a good month. You know, the end of last year and into early, uh, 26 through that constraint bus activity, we've moved that up to 5 paragraphs a month.

Speaker #4: So we exported 22,000 barrels a day of jet fuel out of Montreal. That's a structural capability that we can continue to do if the market is there.

Uh and in may we actually achieved in the calendar month of May we achieved for the first time 6 cargo a month. So yes it is structural we can we can continue to do more from that efficient logistic and that competitive

Speaker #4: The market.

Asset base. And then we we Market that through our trading organization off the West Coast

Speaker #3: This time last year, that was zero.

Speaker #4: Zero. And our vision was less was 5 KBD. So we can now do 25,000 barrels a day of jet fuel out of Montreal. So lots of opportunities there to continue that further.

Speaker #3: So that's a long answer for both of us. This says this is structural change that will add value on an ongoing basis, long term.

From Montreal in this quarters, our ability to uh, to export jet.

Speaker #7: Terrific. Yeah, thanks. Thanks for that. And maybe second question is on the commerce city refinery. In the past, you've suggested that you may not necessarily be married to it, but more recently you've suggested that the asset is performing at a higher level.

Speaker #7: And holding its own so there's a couple of questions here. How much of that is stronger regional cracks versus fundamental improvements to how the asset is operated?

Speaker #7: And then just in terms of refined product egress out of the Rockies, we're seeing some initiatives that point to improved egress from the Rockies to the West Coast.

Speaker #7: And how is that all dovetailing into how you're thinking about the longer-term fit for that asset?

Speaker #3: Just for clarity, I've never used the word married. And on any asset, that's a very high bar. But we've talked about do certain assets fit in the family photo.

Uh, jet fuel, uh, as you uh, you know, as you know, blue in the kind of late first quarter into the, into the second quarter and we recently started making jet fuel Montreal, uh really in the in the fourth quarter of last year and and continued into the first quarter that was meant to be you know both of less than 5 kbd domestic sale opportunity. That we would ultimately grow uh in the in the in the in the first or in the second quarter uh Nelson. CO2 from Montreal's production control coordinator in Montreal, he went out boots on the ground walked, the lines looked around and said I need to figure out how to export jet. What's the logistic that can do that and found a zero cost opportunity to go to go export jet fuel out of out of Montreal. Uh and we were able to then take a D's. Number 1 diesel stream which also meets jet qualities converted to Jet uh qualities and and continue to export. So we exported 22,000 barrels a day of jet fuel out of Montreal. That's a structural capability that we can continue to do if the market is there. The market this time last year, that was

Speaker #3: And make no mistake, Dave and I a few years ago went to commerce city and we took a photo and showed it landscape and portrait.

Zero zero and and our vision was less was 5 KB. So we're we can now do 25,000 barrels a day of jet fuel out of Montreal.

Speaker #3: And said, if you want to stay in it, here's what you need to do. And what you need to deliver. And that facility and that team has delivered.

So, lots of opportunities there to, uh, continue that program. So that's a long answer to for all for both of us. It says, this is structural change that will add value.

On an ongoing basis, long term.

Speaker #3: Improving their performance, fundamental safety, operational integrity, reliability, cost discipline, still work to do, but they have changed their fate in a material way. Now, we also have some market benefits in our favor.

Speaker #3: But as we look at it, we'll differentiate from that. You know, we'll take the market. We can get it. But we really want to look at our underlying performance and that facility's value to us has grown materially based on their performance.

Terrific. Yeah, thanks. Thanks for that. And maybe second question is on the the Commerce City refinery in the past, you've suggested that you may not necessarily be married to it, but more recently, you suggested that the asset is performing at a at a higher level and

Speaker #3: And we think that is also sustainable. I don't know, Dave, if you have anything specific on egress or the Rockies to add to that.

Speaker #4: Maybe just a couple quick comments. So yeah, Menno, you're absolutely correct. We've seen some with a growing short in California, particularly the Los Angeles area, we're seeing refiners in that mid-continent, kind of West Texas, and into the mid-continent find ways to move product towards markets that had historically been supplied by California refineries.

Holding its own. Uh, so there's there's a couple of questions here. How, how much of that is stronger, Regional cracks versus fundamental improvements to how the asset is operated in them, just in terms of refined product egress out of the Rockies? Um, we're seeing some initiatives that that point to improve egress from the Rockies, to the West Coast. And how is that all dovetailing into how you're thinking about the longer term fit for that that asset

Just for clarity. I've never used the word married on, uh, on on any asset. That's a, that's a very high bar, but we've talked about does do, do certain assets fit in the family photo?

Speaker #4: We see that as constructive for commerce city margins over time, as that as those opportunities present themselves. We've also started our own ability to move product out of the region.

Speaker #4: We started rail loading gasoline. And we can move that to other markets outside. And with that, we're seeing Rich mentioned we've seen commerce city turnaround performance.

and make no mistake Dave and I a few years ago went to Commerce City and we took a photo and showed it landscape and portrait and said, if you want to stay in it, here's what you need to do and what you need to deliver and that

Speaker #4: The first couple of years was really focused on safety and reliability. We had to get that right. And then in recent months, we've been focused on profitability and pleased to say we set a record all-time rate at commerce city back in June.

Speaker #4: And we think we beat that again in July. So commerce city is looking like a pretty good asset at the moment.

Speaker #3: Thanks, Dave.

Speaker #7: Thanks to you both. I'll turn it back.

Speaker #2: Thank you. One moment for our next question. And that will come from the line of Manav Gupta with UBS. Your line is open.

Speaker #6: Good morning. It's great to see that despite all the weather challenges that were thrown at you, you did not change your upstream guidance. And given your track record in the last two or three years, then most likely you'll still come in at the top end of the guide.

That facility and that team has delivered improving their performance. Fundamental safety. Operational Integrity, reliability, cost discipline still work to do but they have they have changed their fate in a material way. Now we also have some Market benefits in our favor, but as we look at and we'll differentiate from that we, you know, we'll take the market, we can get it. But we really want to look at our underlying performance and that facilities, um, value to us has grown materially based on their performance. And we think that is also sustainable. I don't know. Dave, if you have anything specific on egress or the Rockies to to add to that, maybe maybe just a couple

So yeah.

Speaker #6: So help us understand a little bit. Should we model a very strong rebound in upstream volumes for the third quarter, given that you did not change your guide at all?

Man, you're you're absolutely correct. Uh, we've seen some, you know, with, with the growing short, in the, in California in particularly the Los Angeles area. Uh, we're seeing refiners in that Midcontinent, kind of West Texas and uh into the the Midcontinent find ways to move product uh towards towards uh markets at a historically been supplied by California refineries

Speaker #3: Our second half is typically when you get outside a turnarounds, the strongest time of the year. And there's a host of reasons, major, maintenance tends to get behind us.

Um, we see that as constructive for Commerce City margins over time as that, uh, as those, uh,

As those opportunities present themselves, we've also started our own ability to...

Speaker #3: You know, weather, the so we expect a much stronger second half than first half. That's built into our plans. And you know, in terms of guidance and stuff, I you know, I'm a broken-down old athlete.

Speaker #3: You know, at halftime, I've never given up on anything. And there's no reason that we should well, we fully expect that we will meet our guidance this year.

Product out of the region, we started rail-loading the gasoline. And we can move that to other markets, uh, of the outside. Uh, and with that we're seeing, you know, Rich mentioned we, we've seen Commerce City. Uh, turnaround performance. The first couple years was really focused on safety and reliability and had to get that, right? And then in recent months, we've been focused on profitability and pleased to say, we set a record all-time rate of Commerce City back in, in June, and we think we beat that again in July. So Commerce City is, uh, is looking like a pretty good asset at the moment.

Speaker #3: And you've noted the last few years on the higher end of it, we have high expectations. So we expect a very strong second half.

Thanks Dave.

Thanks, Steve. I'll turn it back.

Speaker #6: We are absolutely confident you'll hit the top end. My second question is I always appreciate your outlook on the refining macro. You have in the North America, you report strongest margins because you have an integrated business model.

Thank you, 1 moment for our next question. And that will come from the line of manav Gupta with UBS. Your line is open.

Speaker #6: So can you help us understand what you're seeing in terms of refining macro out there and the sustainability of these cracks and how Suncor benefits from them?

Speaker #3: Go ahead, Dave.

Speaker #4: Yeah, thanks, Manav. You know, you've said you've mentioned sustainability. We've seen record cracks. We've seen sustained cracks. And we're seeing the refined product market really be much more resilient than the crude market to geopolitical news.

Upstream volumes uh for the third quarter given that you did not change your guide at all.

Speaker #4: It's largely a distant story. Diesel and jet, we've talked about how we've sold diesel and jet to markets around the world. Hormuz is a big piece of that, but also Russia.

Speaker #4: We're seeing Ukraine as continuing to be a very proficient at taking out Russian infrastructure. And Russian refineries are at greater than 20-year lows in output and we took they took about a million to barrels per day of diesel off the market with an export ban.

Our second half is typically, when you get outside of turnarounds the strongest time of the year and there's a host of reasons, major maintenance tends to get behind us, you know, whether the so we expect a much stronger second half than first half that's built into our plans. And, you know, in terms of guidance and stuff, I, you know, I'm a broken down old athlete and, you know, at halftime. I've never given up on anything and there's no reason that we should, uh,

Well, we fully expect that we will meet our guidance this year.

Speaker #4: So we'd see that continuing to be resilient for at least the medium term. For Suncor, that, you know, our downstream business, we're designed to win in any environment, but we sure like good diesel cracks.

And you noted the last few years on the higher end of it, we have high expectations. So we expect a very strong second half of them.

Speaker #4: This is set up for our success. Our integrated model, as you talked about, can deliver the full value all the way to the customer.

Speaker #4: And we continue to grow diesel production preferentially over gasoline, which is also a good fit in this market. So we'll continue to leverage our trading platform to be flexible and sell globally around the world, as well as domestically.

Speaker #4: And we're not done yet.

Speaker #6: Thank you so much. And we appreciate you raising the buyback. Again, this year, investors really appreciate that. Thank you.

We are absolutely confident. You will hit the top end. Um, our my second question is I always appreciate your outlook on the refining. Macro, uh, you have uh, on in the North America, you report strongest uh, margins because you have an integrated business model, so can you uh, help us understand what you're seeing in terms of refining, macro out there and the sustainability of these cracks and how suncore benefits from them.

Speaker #3: Thanks, Manav.

Speaker #2: Thank you. One moment for our next question. And that will come from the line of Doug Leggate ate with Wolf Research. Your line is open.

Speaker #5: Hello. Thank you. Good morning. Rich, I got two things perhaps that some of one topic has already been hit already, which is growth. But if I tried to frame it like this, some of your peers appear to be at least considering an acceleration in growth projects you've obviously laid out your 100,000 barrel a day you know, organic thesis through 2028.

Go ahead. Dave, thank you, brother. Um, you know, you you've said, you've mentioned sustainability. We've seen record cracks. We've seen sustained cracks, uh, and we're seeing the, the, the refined product Market, really be much more resilient than the crude Market to, uh, to geopolitical, uh, news. Uh, it's largely just a story Diesel and Jet. We've talked about how we've sold Diesel and Jet uh um to to markets around the world. Hormuz is a big piece of that, but also Russia, uh, we're seeing Ukraine as a continuing to be a very proficient at taking out, Russian infrastructure, uh, and Russian, uh, refiner and our refineries are at greater than 20 year lows in, uh,

Speaker #5: But I guess my question is, not so much about individual projects or your appetite, but it's really more about the reinvestment rate. When you think about the appropriate level of sustaining capital and then growth capital on top of that, how the reinvestment rate as the macro environment changes perhaps over time?

In output and, and, and we took, they took about a million to, uh, barrels per day of diesel off the market with an export ban. So we'd see that continuing to, uh, uh, to be resilient, uh, for for at least the medium term for Suncor that, you know, our Downstream business were designed to win in any environment, but we sure like good diesel cracks. Uh, this is set up for our success. Our integrated model as we talked about, can can deliver both a full value all the way to the customer. And we continue to grow diesel production preferentially over gasoline, which is

Speaker #3: On growth, Doug, the way I would describe the things we're doing because of this resource base we've described, because of our design one, build multiple, strategy, we're doing preparatory work, whether that's shooting seismic, drilling delineation wells, so we have optionality.

market. So, uh, we'll continue to leverage our trading platform to be flexible and sell globally around the world as well as domestically and we're not done yet.

Thank you so much, and we appreciate you raising the buyback again this year. Investors really appreciate that. Thank you.

1 moment for our next question.

Speaker #3: And that we were doing that candidly before the market disruptions of this spring. We were just doing that because we think that's good business.

And that will come from the line of Doug legit with wolf research. Your line is open,

Speaker #3: And when it gets then to capital allocation, I hope we've increasingly demonstrated that we very much believe in a measure once, cut twice. We are not only frugal, but very thoughtful on what we spend.

Uh thank you, good morning. Um, rich. I got 2 things, perhaps some of 1 topics already been hit already, which is growth. But if I tried to frame it like this, um,

Some of your peers, um, appear to be at least considering an acceleration in growth projects.

Speaker #3: And the model we've described, how we see ourselves when we look in the mirror, this industrial machine-like that has incredible resilience in kind of any and all business environments, the ability to deliver so you could become a foundational part of an investment portfolio.

Speaker #3: That's who we are. So it's hard to see us maneuvering around reinvestment rates or capital year to year to chase a rabbit. We just we don't see that.

You've obviously laid out your 100,000 Barrel a day. Um, you, you know, or or organic, um, you know, thesis through 2028. But I guess my question is not not so much about individual projects or your appetite, but it's really more about the reinvestment rate when you think about the appropriate level of sustaining capital and growth capital on top of that, how should we think about the, um, the reinvestment rate as the macro environment, you know, changes perhaps over time

Speaker #3: We look longer term. We are you're talking to our I'm going to there's a few people that'll hear this that I don't mean this.

Speaker #3: What it is, you're talking to our corporate planning department right here. We look at oil prices over the last 25 years. They've averaged about 65 bucks a barrel.

Speaker #3: We say, what are they going to average the next 25? 65 sounds like a reasonable number. We plan our business on that. If we have more than that, we certainly enjoy it.

Speaker #3: We share it with shareholders. And if we have less than that, which we do, we're strong, resilient, and we don't have to slam on the brakes.

On on growth dog. The way I would describe the things we're doing because of this resource base. We've described because of our Design, 1 build multiple strategy, we're doing Preparatory work whether that's shooting seismic drilling delineation, Wells. So we have optionality and that we were doing that candidly before the market, you know, disruptions of this spring. We're just doing that because we think that's good business and when it gets then to Capital allocation,

Speaker #3: So we just we really spend a lot of time thinking about the business we're in and not trying to overreact or pursue the flavor of the day.

I hope we've increasingly demonstrated that, you know, we very much believe in a uh measure once cut twice. We are.

Speaker #3: Not sure if I got at your question a little bit, Doug, but I think it's important that when you think about capital allocation, you understand how we see our business because there'll be a direct correlation between that vision and capital allocation.

Speaker #5: I guess we'll wait on the strategy update or the investor delay for the year. But it's a good it's a great answer. Thank you for that, Rich.

Speaker #5: My follow-up is look, there's a lot of products about share buybacks. And we know that share buybacks are a means to an end. What we care quite honestly more about on a business like yours is dividend growth per share.

Around reinvestment rates or or Capital year-to-year to to chase a rabbit. We, we just, we don't that's we don't see that we're look longer term. We uh, are uh, you're talking to our

Speaker #5: Where buybacks obviously play a role. My question really is, therefore, when you think about cash returns, you're really targeting that $38 break-even number by 2028.

Speaker #5: What's the split in your thinking between the role of buybacks and the potential to raise that dividend more aggressively in the context of cash returns as opposed to just opining on whether buybacks are good or bad?

You know, I'm gonna I'm gonna there's a few people that will hear this, that I don't mean this. It is you're talking to our corporate planning department right here. Uh, we look at oil prices over the last 25 years. They've averaged about 65 bucks a barrel. We say what are they going to average? The next 25, 65 sounds like a reasonable number. We plan our business on that. If we have more than that we you know certainly enjoy it. We share it with shareholders and if we have less than that, which we do. We're strong resilient and we don't have to slam on the brakes. So we just

Speaker #3: You know, a fair question. And I'll ask Troy to expand we start as we went over the last three years from a low to mid $50 a break-even to a low to mid 40s, we feel very comfortable where we are now that we are strong, resilient, the integration gives us level of less volatility in market conditions.

We really spend a lot of time thinking about the business we're in and not trying to overreact or, uh, pursue the flavor of the day. Not sure if I got at your question a little bit Doug. But I, I, I think it's important that when you think about Capital allocation

to understand how we see our

business because there'll be a direct correlation between that that vision and capital allocation.

Speaker #3: So it becomes less about a specific number targeting. In the investor day, we kept with the same kind of vernacular to describe $2 billion increase in free funds flow, $5 a barrel reduction.

Speaker #3: But we're not wed to we're going to get to $38 or $39. We are wed to creating value in it. So the balance between how we return to shareholders dividends or buybacks, it's not like it's absolute.

I, uh, I guess we'll wait on the strategy update or the the investor daily for the year, but but it's a good. Uh, it's a great answer. Thank you, uh, for that rich. My my, my follow-up is, um, look, there's a lot of plotters about share BuyBacks and we know that share BuyBacks are a means to an end.

Um, what we care quite honestly more about on a business, like, yours is dividend growth per share. Whereby Banks obviously play a role

um,

my question really is therefore

Speaker #3: But let me ask Troy to comment. Because we talk a lot about this. Troy, you want to offer some additional insight?

when you think about cash returns,

Speaker #4: Yeah. Thanks, Rich. We do talk a lot about it. I mean, our shareholders really have a diverse set of objectives. While the vast majority favor buybacks as their preferred method of receiving shareholder returns, some others have a preference for dividends or a balance of both.

you're really um Power getting that 38 dollar break even number by, you know, by 2028.

Speaker #4: Now, my career, I've found that keeping the most shareholders happy is generally the best path to success. So you can count on us monitoring both methods of returning cash to shareholders.

Was the split in your thinking between the role of buybacks and the, uh, the potential to raise that dividend more aggressively in the context of cash returns, as opposed to just all paying me on whether buybacks are good or bad?

You know, if there a question and I'll ask Troy to expand upon it here in a second. When when we start as we went over the

Speaker #4: To ensure that each is optimized. Including from a competitiveness point of view. So as to create the greatest demand for our stock.

Speaker #3: And we like Doug to be happy too.

Speaker #5: Guys, thanks for the answer. We really appreciate it. I think you know where we stand on this topic. But I appreciate the time. Thanks so much.

Speaker #3: Yeah. And I think just one last comment on that. We don't have we're not governed by hard and fast targets, thresholds, rules. We want to be outstanding, operational executives and outstanding financial executives.

From a low to mid $50, a break. Even to the low to mid 40s. We feel very comfortable where we are now that we are strong resilient, the integration gives us level of of um, you know, less volatility in market conditions. So it becomes less about a specific number targeting in the investor day. We kept with the same kind of inaccurate to describe 2 billion dollar increase in free funds flow. 5, Dollar a barrel.

Speaker #3: So we look holistically. We talk holistically. We engage our board. And again, this is one of these kind of behind-the-scenes that you don't see.

Speaker #3: But it's not when we get to X, this happens. When we get to Y, that happens. We really we think we're we can be better than that, looking at market conditions, our unique financial position, our competitive strength, and Troy said it well.

Production, but we're not led to, we're going to get to 38 or 39. We are a web to creating value in it. So the, the balance between, how we returned to the shareholders dividends or BuyBacks it. It's not, it's not like it's absolute but let me ask Troy to come in because we talk. We talk a lot about this. Troy you want to offer some additional Insight? Yeah, thanks Rich. We we do talk a lot about it. I mean our our shareholders really have a diverse set of objectives.

Speaker #3: We're we're trying to appeal to a very broad set because we think we can and should be that foundational investment from almost any investor.

While the vast majority favored BuyBacks is their preferred method of receiving shareholder. Returns some others have a preference for dividends or a balance of both.

Speaker #5: Again, thanks for the comments, guys. Really appreciate it, Rich.

Speaker #3: Yeah. Thanks, Doug.

Speaker #1: Thank you. One moment for our next question. And that will come from the line of Patrick O'Rourke with ATB Core Mar Capital. Your line is open.

Now my career, I found that keeping the most shareholders. Happy is generally the best path to success. So you can count on us monitoring both methods of returning, cash to shareholders to ensure that each is optimized including from a competitiveness point of view.

so, as to create the greatest demand for our stock

And we like Doug to be happy too. Yeah, thanks for the answer. We really appreciate it.

Speaker #6: Hey, good morning, guys. And thanks for taking my questions. Congratulations on the strong quarter there. Just wondering, I guess you have a little bit of turnaround activity in the downstream unit in the third quarter here.

I think, you know, where we stand on this topic but I I appreciate the time. Thanks so much.

yeah, and I I think just 1 1 last comment on that we don't have

Speaker #6: Obviously, with the second quarter, we saw a bit of a push to strike while the iron's hot. And despite challenging conditions, maximized to the extent possible output from the mines.

Speaker #6: I'm wondering when you think about the scale and the scope of the turnarounds here in the third quarter and where cracks are presently, what your flexibility around sort of your approach to that is in this environment.

Speaker #3: I'll make a comment, then I'm going to look down the table at Dave and Peter. One of the things we have talked about from day one, the importance of safety and operational integrity.

Speaker #3: And so we want to do the work we need to do to maintain our assets in the right condition. We don't want to do more.

We're not governed by hard and fast targets thresholds rules, we want to be outstanding, operational, Executives, and outstanding Financial Executives. So we we, we look holistically, we talk holistically, we engage our board. And again, this is 1 of these kind of behind the scenes That You Don't See. But it's not, you know, when we get to X, this happens when we get to why that happens. We really we think we're, uh, you know, we can be better than that. Looking at market conditions, our unique Financial, uh, position our competitive strength and, you know, twice that it well, we're, uh, you know, we're we're trying to appeal to a very broad set because we think we can and should be that foundational investment almost any investor.

Speaker #3: And we certainly don't want to do less. But we're also not looking at, OK, margins are high. Can we slide this a year? Can we slide this six months?

Again, thanks for the comments guys. I really appreciate it. Rich.

Yeah, thanks Doug.

Speaker #3: That introduces risk that we just don't think is prudent. Are we looking at optimizing things? Certainly. But not any material movements because, wow, the crude price is high or cracks are high.

And that will come from the line of Patrick oor with ATB core Mark. Capital, your line is open.

Speaker #3: So we won't change the oil in the Chevy this month. We'll wait till next month. That's just not how we do things. Dave, Peter, comment quickly on the third quarter.

Speaker #3: Particularly in a frame of reference to, OK, the work we did in the second quarter, we had some pretty material things. How do you see the third quarter in terms of either scope and/or complexity relative to what we just accomplished?

Speaker #4: Troy, I can start. So Dave here, for the downstream, we have two turnarounds planned, Montreal has some crude units offline. In the third quarter, we would expect that to be a fairly minor scope of work, pretty typical turnaround activity.

Hey, good morning guys. And thanks for taking my questions. Congratulations on the strong quarter there. Um, just wondering I guess, uh, you have a little bit of turnaround activity in the downstream unit in third quarter here. Obviously, with the second quarter, we saw a bit of a push to strike while the iron's hot. And uh, despite challenging conditions maximized to the extent possible, uh, output from the mines. I'm wondering when you think about the scale and the scope of the turnarounds here in the third quarter and where cracks are presently. What your flexibility around, uh, sort of your approach to that is in this environment.

I'll make a comment, then I'm going to look down the table at Dave and Peter.

Speaker #4: And I'd expect to do that unless duration than prior events. And we would set ourselves up for longer intervals going forward. On the Edmonton turnaround, that's a cat cracker turnaround.

1 of the things, we we have talked about from day 1, the importance of safety and operational integrity and so we

Speaker #4: Those are typically fairly complex turnarounds. But the team is well prepared. They've met their turnaround planning milestones well ahead of schedule. And have been optimizing that plan for the last six months.

Speaker #4: So we're in pretty good shape to execute that. We're going for flawless on that one.

Speaker #3: OK. Peter?

Speaker #2: Yeah. On the upstream, we have one major event left. In the third quarter. And that is the synchro coke outage. It's I characterize it as a routine outage planned to start here August 20th.

We want to do the work, we need to do to maintain our Assets in the right condition. We don't want to do more and we certainly don't want to do less but we're also not looking at. Okay, margins are high, can we slide this a year? Can we slide this 6 months? That introduces risk that we just don't think is prudent? Are we looking at optimizing things? Certainly but not any material movements because wow, the whole

Speaker #2: Planned for 50 days. And it's extremely well planned event. All of our turnaround preparations have been going on for many months now. So we're confident that we're ready to execute that.

Or crude price is high or cracks are high. So, you know, we— you know, we won't change the oil in the Chevy this month; we'll wait till next month. That's just not how we do things.

Speaker #2: And the team's obviously got some stretch targets that they're shooting for in that event. So looking forward to that.

Speaker #3: More work to do in the third quarter, less overall than the second quarter. Confidence in our preparation and expectations on execution and success. Extremely high.

Uh, Dave, Peter kind of quickly on the third quarter and particularly in a frame of reference, okay? The work we did in the second quarter we had some pretty material things. How do you see the third quarter in terms of either a scope and or complexity relative to what we just accomplished?

Speaker #3: And that positions us for what we believe will be a sprint in the second half of the year to deliver outstanding results.

Speaker #6: OK. Great. Thanks. And then maybe this is a broader strategic question. You kind of touched on this a little bit. But in terms of the growth opportunity the MOU, the trilateral MOU, what needs to happen there?

Speaker #6: And then if this opens an opportunity, whether you need to underwrite a pipeline to access growth or something of that nature, how prepared would you be to sort of push forward or accelerate some of this future growth if it's sort of a window of opportunity there for Suncor?

Speaker #3: You know, for those that aren't as familiar here, month or so ago, 5.0 sans companies, the Alliance, we signed this non-binding MOU with the federal and provincial government.

So I can start. Um, so Dave here for the for the Dallas team we have 2 tour rounds planned, Montreal has 3 units offline. Uh in in the third quarter uh we would expect that to be a fairly fairly minor scope of work. Pretty typical turnaround activity and I'd expect to do that unless duration, uh, then then prior events and uh, we would set ourselves up for longer intervals. Going forward, uh, on the Edmonton turnaround. That's a cat cracker turn around. Those are typically fairly complex turnarounds, but the team is well prepared. They've met their turnaround planning Milestones while ahead of schedule and have been optimizing that uh, that plan for the last 6 months. So we're in pretty good shape to execute that. Uh uh, we're going for flawless on that 1. Okay, Peter. Yeah. On the Upstream, we have 1 uh, major event left uh, in the third quarter and that is the uh synchrome Cooper outage. It's a, a characterized it as a routine outage plan to start here. Uh, August 20th planned for 50 days and it's extremely well planned event, all of our turnaround preparations.

Speaker #3: It outlined kind of shared ambitions around carbon policy expanded market access and the fiscal and regulatory conditions that would be required to attract capital and incent growth.

Speaker #3: There's a lot of work to do to turn this 9 non-binding set of ambitions into definitive agreements. As I said earlier, it's a very different mood and tenure today than it has been in the past.

Speaker #3: So we're encouraged by that. But in terms of how it may or how it has or may affect our plans, that's still to be determined.

Something going on for many months now. So what we're confident that we're ready to execute that? And the teams obviously, got some stretch targets, they're shooting for, uh, uh, in that, uh, event. So, look forward to that more work to do in the third quarter less overall than the than the second quarter. I'll confidence in our preparation and expectations on execution, and success are extremely high. And that positions us for, uh, what we believe will be a, a Sprint in the second half of the year to deliver outstanding results.

Okay, great, thanks. And and then

This is a a broader strategic.

Speaker #3: I would just echo Patrick a little bit of some of the comments I said before is we look at the business long term. We want to be very thoughtful on long-term commitments.

I'm trying to touch on this a little bit, but in terms of the growth opportunity, uh, the mou, the trilateral mou, um, what needs

To happen there. And then, you know, if this

Is a?

Speaker #3: And capital allocation. If there's opportunity for selective high-quality globally competitive growth, our shareholders value it. We see it. We have the ability to pursue it.

Speaker #3: But it our position today isn't materially different than it would have been six months ago on the outlook. We're still in the well, let's just see where things go.

Underwrite a pipeline to assess growth or um, something of that nature, how prepared would you be to sort of push forward or accelerate some of the future growth? If, if it's sort of a, a window of opportunity there for Suncor

Speaker #6: OK. Thank you very much.

Speaker #1: Thank you. One moment for our next question. That will come from the line of Neil Mehta with Goldman Sachs. Your line is open.

You know, for those that aren't as familiar here, a month or so ago, 50 Sands companies the alliance. We signed this non-binding mou, with the federal and provincial government, it outlined kind of shared Ambitions around. Um,

Speaker #5: Yeah. Rachel and team, thanks for taking the time. The offshore results were really good this quarter, Rich. And it's not something we tend to spend a lot of time on these calls talking about the E&P business.

Speaker #5: But I was just curious on your thoughts around the sustainability of sort of that strength in production. And you got West White Rose kicking in.

Carbon policy expanded Market access in the fiscal and Regulatory conditions that would be required to attract capital and incent growth. There's a lot of work to do to turn this 9 nonbonding.

Speaker #5: Anything that stands out to you in the E&P side?

Speaker #3: Certainly have seen the benefit from the market environment. Those assets generally are pretty as an aggregate, are relatively low cost overall. Certainly Hebron and Hibernia.

Speaker #3: You've seen much like the Commerce City story. You've seen tremendous turnaround in our performance at Terra Nova. And the contribution that it has. So they have been a big part on a relative volume basis.

Speaker #3: They've been a big part of the contribution. We expect that to continue. There's at West White Rose, there's still drilling activity and what the resulting production is to be determined on it.

Permit. I I would just Echo Patrick a little bit of some of the comments I said before. Is we? We look at the business long term. We want to be very thoughtful on long-term commitments and capital allocation. If there's opportunity for Selective high quality globally, competitive growth, our shareholders value it, we see it. We have the ability to pursue it, but it, uh, our position today isn't materially different than it would have been 6 months ago on the Outlook. We're still in the well, let let's just see where things where things go.

Okay, thank you very much.

Speaker #3: But although they're a smaller part of our percentage in terms of upstream production, we've been quite pleased with how that East Coast, that overall set of assets has delivered, particularly in the current business environment.

Thank you, 1 moment for our next question. That will come from the line of Neil Mehta with Goldman Sachs, your line is open.

Speaker #5: Thanks, Rich. Another one is just on Petro Canada. I know that there was a there's a retail growth focus here as we think about other economic investment in your capital, budget.

Speaker #5: So just your update on how you're thinking about that business, how would you characterize it as something that has synergies with the rest of the company and how do you see it scaling over time?

Yeah, reaching team. Thanks. Thanks for taking the time, the, um, the offshore results were really good this quarter rich and it's not something we tend to spend a lot of time on, uh, on these calls talking about the EMP business, but, you know, I'm just curious on your thoughts around the sustainability. If so did that strength and production and you got West, White Rose kicking in any anything that stands out to you in the NP set.

Speaker #3: You know, several years ago, the plan was put together for the retail side. And we believe in delivering on commitments when we establish plans.

Speaker #3: So Dave and I rigorously steward that plan. And that team has been delivering on it. And one of the things I'm excited is they have been delivering on it in the last particularly about a year, year and a half at lower capital.

Certainly certainly have seen the benefit from the market environment. So those assets generally are pretty uh as aggregate or relatively low cost overall. Certainly everyone and Iberia. You've seen it much like the Commerce City Story. You've seen tremendous turnaround.

In our performance at teranova in the contribution that it has. So they have been a you know, a big part on a

Speaker #3: And we originally had envisioned they're just finding new and creative ways to deliver value through partnerships. Other people's money. And as we've asked the entire organization to bring about more capital discipline and rigor focus on things, they've been subject to the same scrutiny.

Speaker #3: And nobody gets blank checks around here just because it has been put in place. At a point in time. In the market, we've seen this year in particular, the ability to run our facilities at full capacities knowing in the vast majority of scenarios we have a comfortable homes for those volumes.

On a relative volume basis. They've been a big part of the contribution, we expect that to continue. There's uh, at West, White Rose, they're still drilling activity. And what the resulting production is to be determined on it, but although they're a smaller part of our percentage. In terms of Upstream production, you know, we've been quite pleased with how that East Coast that overall set of assets has delivered particularly in the current business environment

Speaker #3: Whether those are retail our retail now, Dave, and remind me, it's above the pre-COVID levels. Our retail sales that is our most profitable product.

Thanks Rich and the other 1 is just on, Petrol Canada. I know there there was a, there's a retail growth Focus here and as we think about other economic investment in your capital budget, and so just your, you know, update on how you're thinking about that business, how would you characterize it as, as something that has synergies with the rest of the company and uh how do you see it scaling over time?

Speaker #3: So they are you know, they're in that family photo. I got my wife on one side, my grandson Tommy on the other. You know, Petro Canada is pretty clearly in that photo.

Speaker #3: And as long as they keep delivering, they'll be right there with their you know, big grin and smile.

Speaker #6: Good. Thanks, Rich. Appreciate it.

Speaker #1: Thank you. I'm showing no further questions in the queue at this time. I would now like to turn the conference back to Mr. Adam Albeldawi for closing remarks.

The, you know, several years ago, the plan was put together for the retail side and we, uh, you know, we believe in delivering on commitments when we established plans. So, Dave, and I rigorously stewards, that plan and that team has been delivering on it. And 1 of the things I'm excited is they have been delivering on it in the last particularly about a year year and a half at lower Capital than we originally had.

Speaker #3: Thank you, everyone, for joining our call this morning. If you have any follow-up questions, please don't hesitate to reach out to our team. Operator, you can end the call.

Envision, they're just finding new and creative ways to deliver value through Partnerships other people's money.

And as we've asked the entire organization to bring about more Capital discipline and rigor focus on things. They they've been subject to the same scrutiny. It it uh you know nobody gets a blank checks around here just because it has been put in place at a point in time in the market. We've seen this year in particular, the

the ability to run our facilities at full capacities, knowing in the vast majority of scenarios. We have a comfortable homes for those volumes, whether those are retail our retail. Now, Dave and remind me, it's above the preco levels, our retail sales. That is our most profitable product. So they are, you know, they're in that family photo. I got my wife on 1 side, my grandson, Tommy on the other, you know, Petrol Canada is pretty clearly in that photo and uh as long as they keep delivering, they'll be, they'll be right there with their, you know, big grin and smile.

Appreciate it.

Thank you. I'm showing no further questions in the queue at this time. I would now like to turn the conference back to Mr. Adam Al baldawi for closing remarks.

Thank you everyone, for joining our. Call this morning. If you have any follow-up questions, please don't hesitate to reach out to our team. Operator. You can end the call.

Thank you for participating.

Is.