Q1 2026 Suncor Energy Inc Earnings Call

May 6, 2026

Speaker #1: Results call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 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 #1: I would now like to hand the conference over to your speaker, Suncor Energy Senior Vice President of External Affairs, Mr. Adam Albeldawi. Please go ahead.

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

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

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.

Speaker #2: And Shelley Powell, Senior Vice President, Operational Improvement and Support Services. 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 first quarter was about maintaining momentum following a very strong 2025, and that is exactly what we did. Troy will cover financial performance, and I will focus on what we can control operational performance, starting with a quick comment on safety.

Speaker #3: Our highest priority—I'm pleased to report the first quarter represented best-ever performance in process safety as our teams navigated the often harsh conditions of a Canadian winter.

Speaker #3: Moving on, Upstream Production. 875,000 barrels a day, our highest first quarter ever, and our second highest quarter overall on record, only exceeded by the fourth quarter of last year.

Speaker #3: 22,000 barrels a day, higher than our previous best first quarter, which was last year. Achieved with four hills at a record 187,000 barrels a day.

Speaker #3: Higher than the quarter a year ago. ENP at 76,000 barrels a day, was 14,000 barrels a day higher year on year, and our highest quarter since our North Sea asset sale in 2022.

Speaker #3: Lastly, Firebag, our large, high-value in-situ continued near-record rates at 247,000 barrels a day. Despite these results, it could have been better. We were negatively impacted by 14 to 15 thousand barrels a day due to a natural gas curtailment, from a third-party unplanned outage.

Speaker #3: Fortunately, the issue was resolved with production restored by the end of the quarter. Upgrader utilization: 96%. Here again, good, but it could have been better.

Speaker #3: Sincrews 83 Coker following the discovery of cracked valves on the reactor with temperatures approaching minus 40 degrees C. At an abundance of caution, we shut down the unit, completed repairs, and had it back online in March.

Speaker #3: Reflecting back over the last three years, first quarter production is up 133,000 barrels a day. No costly acquisitions. No major new startups. Simply performance.

Speaker #3: Refining throughput: 498,000 barrels a day in the quarter. Again, our highest first quarter ever, and our second highest quarter overall, only exceeded by the fourth quarter of last year.

Speaker #3: 15,000 barrels a day, higher than our previous best first quarter, which was in 2025. All four refineries exceeded last year's quarterly throughput. Edmonton, our number one moneymaker, maximized distillate and achieved best-ever throughput of 160,000 barrels a day.

Speaker #3: And Montreal, introduced much-needed jet fuel into the market and also achieved a best-ever quarter at 155,000 barrels a day. Refining utilization: 107% on our previous 466,000 barrel a day capacity.

Operator: Financial results call. I would now like to hand the conference over to your speaker, Suncor Energy Senior Vice President of External Affairs, Mr. Adam Albeldawi. Please go ahead.

Rich Kruger: 9 in March. Reflecting back over the last 3 years, Q1 production is up 133,000 barrels a day. No costly acquisitions, no major new startups, simply performance. Refining throughput, 498,000 barrels a day in the quarter. Again, our highest Q1 ever and our second-highest quarter overall, only exceeded by the Q4 of last year. 15,000 barrels a day higher than our previous best Q1, which was in 2025. All 4 refineries exceeded last year's quarterly throughput. Edmonton, our number 1 moneymaker, maximized distillate and achieved best ever throughput of 160,000 barrels a day. Montreal introduced much-needed jet fuel into the market and also achieved a best ever quarter at 155,000 barrels a day.

Speaker #3: Or 97% on our new 10% higher re-rated capacity of 511,000 barrels a day as communicated at our recent I-Day. Excluding our Commerce City refinery, which undertook its spring turnaround, our network averaged 100% on the higher re-rated capacity led by Edmonton at 101% of its new capacity.

Adam Albeldawi: Thank you, operator, and good morning. Welcome to Suncor Energy's Q1 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 Q1 earnings release, as well as in our current annual information form, both of which are available on SEDAR+, EDGAR, and our website, suncor.com. Certain financial measures referred to in these comments are not prescribed by Canadian Generally Accepted Accounting Principles. For a description of these financial measures, please see our Q1 earnings release. We'll start with comments from Rich Kruger, President and Chief Executive Officer, 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 #3: Over the last three years, first quarter throughput is up 130,000 barrels a day. No costly acquisitions. No expensive new projects. Performance. Product sales: 681,000 barrels a day.

Speaker #3: Our highest quarter of any quarter ever. 34,000 barrels a day, higher than our previous best. The third quarter of 2025. And 76,000 barrels a day, higher than our previous best first quarter, which was last year.

Rich Kruger: Refining utilization, 107% on our previous 466,000 barrel a day capacity, or 97 on our new 10% higher re-rated capacity of 511,000 barrels a day, as communicated at our recent I Day. Excluding our Commerce City refinery, which undertook its spring turnaround, our network averaged 100% on the higher re-rated capacity, led by Edmonton at 101% of its new capacity. Over the last 3 years, Q1 throughput is up 130,000 barrels a day. No costly acquisitions, no expensive new projects, performance.

Speaker #3: Achieved through a strategic shift starting in the second half of 2023. Previously, we were value over volume. Now we're value and volume. Challenging ourselves to not only place more total barrels into the market but also place more barrels in the highest-value change within the market.

Speaker #3: To illustrate, PetroCanada retail volumes, Canada's number one brand, were up 9% year on year. After never achieving 600,000 barrels a day sales in any quarter, we've now exceeded 600 seven quarters in a row.

Adam Albeldawi: Following the formal remarks, we will open the call up to questions. Now, I will hand it over to Rich to share his comments.

Rich Kruger: Product sales, 681,000 barrels a day, our highest quarter of any quarter ever, 34,000 barrels a day higher than our previous best, the Q3 2025, and 76,000 barrels a day higher than our previous best Q1, which was last year. Achieved through a strategic shift starting in the H2 2023. Previously, we were value over volume. Now we're value and volume. Challenging ourselves to not only place more total barrels into the market, but also place more barrels in the highest value chain within the market. To illustrate, Petro-Canada retail volumes, Canada's number 1 brand, were up 9% year on year. After never achieving 600,000 barrels a day sales in any quarter, we've now exceeded 600,000 7 quarters in a row.

Rich Kruger: Thanks, Adam. Our Q1 was about maintaining momentum following a very strong 2025, and that is exactly what we did. Troy will cover financial performance, and I will focus on what we can control, operational performance, starting with a quick comment on safety, our highest priority. I am pleased to report the Q1 represented best ever performance in process safety as our teams navigated the often harsh conditions of a Canadian winter. Moving on, upstream production. 875,000 barrels a day, our highest Q1 ever, and our second-highest quarter overall on record, only exceeded by the Q4 of last year. 22,000 barrels a day higher than our previous best Q1, which was last year. Achieved with Fort Hills at a record 187,000 barrels a day, higher than the quarter a year ago.

Speaker #3: Over the last three years, first quarter product sales are up 166,000 barrels a day, or 32%. No costly acquisitions. No expensive new projects. Again, performance.

Speaker #3: So how are we continuing to establish record results period after period? Through crystal clear priorities. Ambitious daily weekly monthly quarterly performance targets. Collaboration and teamwork.

681,000 barrels. A day, our highest order of any quarter ever 34,000, barrels a day higher than our previous best, the third quarter of 2025 and 76,000 barrels a day higher than our previous best first quarter, which was last year.

Speaker #3: Applying best practices. Focusing on value. And by recognizing and rewarding our teams when they deliver. Our continuous improvement is not limited to a select area or two.

Speaker #3: It's across the board. Systematically raising the bar. Delivering higher, more reliable, more rateable operational performance. And with that, higher, more reliable, more rateable cash flow.

Achieved through a strategic shift, starting in the second half of 2023. Previously, we were value over volume. Now, we're value and volume challenging ourselves, to not only place more total barrels into the market, but also Place more Barrels in change within the market 200, central Canada, retail volumes Canada's number 1 brand. We're up 9% year on year.

Rich Kruger: Over the last three years, Q1 product sales are up 166,000 barrels a day or 32%. No costly acquisitions, no expensive new projects. Again, performance. How are we continuing to establish record results period after period? Through crystal-clear priorities, ambitious daily, weekly, monthly, quarterly performance targets, collaboration and teamwork, applying best practices, focusing on value, and by recognizing and rewarding our teams when they deliver. Our continuous improvement is not limited to a select area or two. It's across the board, systematically raising the bar, delivering higher, more reliable, more ratable operational performance, and with that, higher, more reliable, more ratable cash flow. I'll share an example, a recent example of our teams adding value.

Rich Kruger: E&P at 76,000 barrels a day was 14,000 barrels a day higher year on year and our highest quarter since our North Sea asset sale in 2022. Lastly, Firebag, our large high-value in situ, continued near record rates at 247,000 barrels a day. Despite these results, it could have been better. We were negatively impacted by 14,000 to 15,000 barrels a day due to a natural gas curtailment from a third-party unplanned outage. Fortunately, the issue was resolved with production restored by the end of the quarter. Upgrader utilization, 96%. Here again, good, but it could have been better. An unplanned decoke of Syncrude's A3 coker following the discovery of cracked valves on the reactor with temperatures approaching -40 degrees Celsius.

Speaker #3: I'll share an example. A recent example of our teams adding value. We've described how our Fort Hills plant has capacity above its nameplate. With stream day capacity of about 220,000 barrels a day, versus an original design basis of 194,000 barrels a day.

After never achieving 600,000 barrels A Day sales in any quarter. We've now exceeded 6007 quarters in a row. Over the last 3 years first quarter product sales are up 166,000 barrels a day or 32%.

No costly Acquisitions. No expensive. New projects again, performance.

Speaker #3: During our recent I-Day, we detailed how we will monetize this capacity over time, increasing annual production from 175,000 barrels a day in 2025 to 200 in 2028.

Speaker #3: However, for our teams, that timing wasn't good enough. As a result, in late April, we negotiated a commercial agreement with Sincrews owners. Whereby Fort Hills purchases ore from Sincrews Aurora Mine, and processes it at spare Fort Hills plant capacity.

Rich Kruger: Out an abundance of caution, we shut down the unit, completed repairs, and had it back online in March. Reflecting back over the last 3 years, Q1 production is up 133,000 barrels a day. No costly acquisitions, no major new startups, simply performance. Refining throughput, 498,000 barrels a day in the quarter. Again, our highest Q1 ever and our second-highest quarter overall, only exceeded by the Q4 of last year. 15,000 barrels a day higher than our previous best Q1, which was in 2025. All 4 refineries exceeded last year's quarterly throughput. Edmonton, our number 1 money maker, maximized distillate and achieved best ever throughput of 160,000 barrels a day.

Speaker #3: Everybody wins. Fort Hills, Sincrews, the province of Alberta through royalties, and with Suncor on both sides of the deal, we win twice. Incremental volumes, incremental value.

Rich Kruger: We've described how our Fort Hills plant has capacity above its nameplate with stream day capacity of about 220,000 barrels a day versus an original design basis of 194,000 barrels a day. During our recent I Day, we detailed how we will monetize this capacity over time, increasing annual production from 175,000 barrels a day in 2025 to 200 in 2028. However, for our teams, that timing wasn't good enough. As a result, in late April, we negotiated a commercial agreement with Syncrude's owners, whereby Fort Hills purchases ore from Syncrude's Aurora mine and processes it at spare Fort Hills plant capacity. Everybody wins. Fort Hills, Syncrude, the province of Alberta through royalties, and with Suncor on both sides of the deal, we win twice. Incremental volumes, incremental value in today's price environment.

Speaker #3: In today's price environment, we moved the first load of ore literally before the Inquis dry on April 29th. An example of today's Suncor. Operationally excellent.

So how are we continuing to establish record results period after period through Crystal Clear priorities, ambitious daily, weekly, monthly quarterly, performance targets, collaboration and teamwork applying best practices focusing on value and by recognizing and rewarding our teams. When they deliver, our continuous Improvement is not limited to a select area or 2. It's a cross. The board systematically, raising the bar to win higher more reliable, more rateable, operational performance. And with that higher more reliable, more rateable, cash flow. I'll share an example, a recent example of our teams adding value. We've described how our Fort Hills plant has capacity of its name plate with stream, a capacity of about 220,000 barrels a day versus an original design basis of 194,000, barrels a day.

Speaker #3: And commercially opportunistic. The non-operational highlight of 1Q was on March 31st, our I-Day in Toronto. With the agenda as follows. First, we talked about today's Suncor.

Speaker #3: How the company has been rebuilt to compete and win. With superior performance in safety, reliability, cost management, and volumes. And the delivery of our 2024 I-Day commitments in two years versus a plan of three.

Rich Kruger: In Montreal, introduced much-needed jet fuel into the market and also achieved a best ever Q1 at 155,000 barrels a day. Refining utilization, 107% on our previous 466,000 barrel a day capacity, or 97% on our new 10% higher re-rated capacity of 511,000 barrels a day, as communicated at our recent I Day. Excluding our Commerce City refinery, which undertook its spring turnaround, our network averaged 100% on the higher re-rated capacity, led by Edmonton at 101% of its new capacity. Over the last 3 years, Q1 throughput is up 130,000 barrels a day. No costly acquisitions, no expensive new projects, performance.

During our recent, I day we detailed we will monetize this capacity over time, increasing annual production from 175,000 barrels. A Day in 2025, to 200 in 2028. However, for our teams that timing wasn't good enough. As a result in late April, negotiated a commercial agreement with sins, owners whereby Fort Hills purchases, or from sin Cruise, Aurora, mine and processes it as spare for Hills plant capacity.

Speaker #3: 114,000 barrels a day of upstream production growth over those two years. And a 10% higher refining capacity. $10 a barrel reduction in our corporate break-even.

Speaker #3: And more than $3.3 billion per year in incremental refunds flow. The day continued with the theme of, "We're not done yet." Outlining an ambitious set of new commitments over the next three years.

Rich Kruger: We moved the first load of ore literally before the ink was dry on 29 April. An example of today's Suncor, operationally excellent and commercially opportunistic. The non-operational highlight of Q1 was on 31 March, our I Day in Toronto, with the agenda as follows. We talked about today's Suncor, how the company has been rebuilt to compete and win with superior performance in safety, reliability, cost management, and volumes, and the delivery of our 2024 I Day commitments in 2 years versus a plan of 3. 114,000 barrels a day of upstream production growth over those 2 years and a 10% higher refining capacity. CAD 10 a barrel reduction in our corporate breakeven and more than CAD 3.3 billion per year in incremental free funds flow.

Speaker #3: Another 100,000 barrels a day of upstream production growth. A further $5 a barrel reduction in enterprise break-even. And an additional $2 billion a year in free funds flow.

For literally, before the ink was dry on April 29th, an example of today's Suncor operationally, excellent, and commercially opportunistic.

Speaker #3: Then the long-anticipated topic of our long-term oil sands outlook. Where we detailed our large long-life high-quality reserves and resource base. 2P reserves of 7 billion barrels.

Rich Kruger: Product sales, 681,000 barrels a day, our highest quarter of any quarter ever, 34,000 barrels a day higher than our previous best, the Q3 of 2025, and 76,000 barrels a day higher than our previous best Q1, which was last year. Achieved through a strategic shift starting in the H2 of 2023. Previously, we were value over volume. Now we're value and volume. Challenging ourselves to not only place more total barrels into the market, but also place more barrels in the highest value change within the market. To illustrate, Petro-Canada retail volumes, Canada's number one brand, were up 9% year on year. After never achieving 600,000 barrels a day sales in any quarter, we've now exceeded 607 quarters in a row.

Speaker #3: The longevity with a 25-year reserve life. Contingent resources of 30 billion barrels. Literally a century of development opportunities. And 11 billion barrels or 60% higher than our last assessment a decade ago.

The non-operational highlight of 1 Cube was on March 31st. Our eye day in Toronto with the agenda as follows first, we talked about today's Suncor, how the company has been rebuilt to compete in win with Superior performance and safety reliability cost management and volumes and the delivery of our 2024 ID commitments in 2 years versus a plan of 3 114,000 barrels a day of Upstream production growth over those 2 years and a 10% higher refining capacity.

10 dollar a barrel.

Speaker #3: Contained within 22 billion barrels of high-quality in situ. Adjacent to existing assets. Commercial with today's technology. And expected future prices. With the entire assessment validated by third-party independent experts.

Rich Kruger: The day continued with the theme of we're not done yet, outlining an ambitious set of new commitments over the next 3 years. Another 100,000 barrels a day of upstream production growth. A further CAD 5 a barrel reduction in enterprise break-even and an additional CAD 2 billion a year in free funds flow. The long-anticipated topic of our long-term oil sands outlook, where we detailed our large, long life, high-quality reserves in resource base. 2P reserves of 7 billion barrels, the longevity with a 25-year reserve life, contingent resources of 30 billion barrels, only 11 billion barrels or 60% higher than our last assessment a decade ago, contained within 22 billion barrels of high quality in situ adjacent to existing assets, commercial with today's technology and expected future prices, with the entire assessment validated by third-party independent experts. Development plans.

A reduction in our corporate break even and more than 3.3 billion dollars per year in incremental free funds flow.

That they continued with the theme of 'we're not done yet,' outlining an ambitious set of new commitments over the next three years. Another 100,000 barrels a day of upstream production growth.

Speaker #3: Development plans. We discussed standardized modules. Design one build many. Focus in the resource-rich corridor south of Firebag and east of our base plant. All 100% Suncor owned.

8 further 5 Dollar up Arrow reduction in Enterprise break even and an additional 2 billion dollars a year funds. Well

Speaker #3: With regulatory approvals in place. We highlighted extensive regional synergies. Synergies unique to Suncor. Providing lower capital costs. Well below Greenfield development. Sequence to maximize efficiency.

Rich Kruger: Over the last 3 years, Q1 product sales are up 166,000 barrels a day, or 32%. No costly acquisitions, no expensive new projects, again, performance. How are we continuing to establish record results period after period? Through crystal clear priorities, ambitious daily, weekly, monthly, quarterly performance targets, collaboration and teamwork, applying best practices, focusing on value, and by recognizing and rewarding our teams when they deliver. Our continuous improvement is not limited to a select area or two. It is across the board, systematically raising the bar, delivering higher, more reliable, more ratable operational performance, and with that, higher, more reliable, more ratable cash flow. I will share an example, a recent example of our teams adding value.

Speaker #3: And capture lessons learned. A 400,000 barrels a day portfolio. At an average capital cost of about $30,000 per flowing barrel. But the best part?

Speaker #3: We described how all barrels are not created equal. Quantifying the structural shift over time. From mining barrels to in situ. With cash flow per barrel of in situ roughly two times mining's current level.

Then the long anticipated topic of our long-term oil sands Outlook where we detailed our large long life. High quality reserves in resource, base, 2p reserves of 7 billion, barrels, the longevity with the 25-year Reserve. Life contingent resources of 30 billion barrels, the essential 11 million barrels or 60% higher than our last assessment. A decade ago, contained within 22 billion barrels of high quality in situ adjacent to existing assets.

Commercial with today's technology and expected future prices with the entire assessment validated by third-party independent experts.

Rich Kruger: We discussed standardized modules, design 1, build many, focused in the resource-rich corridor south of Firebag and east of our base plant, all 100% Suncor-owned with regulatory approvals in place. We highlighted extensive regional synergies unique to Suncor, providing lower capital costs well below greenfield development. Sequenced to maximize efficiency and capture lessons learned. A 400,000 barrels a day portfolio at an average capital cost of about CAD 30,000 per flowing barrel. The best part, we described how all barrels are not created equal, quantifying the structural shift over time from mining barrels to in-situ, with cash flow per barrel of in-situ roughly 2 times mining's current level. Finally, we detail what's in it for our shareholders.

Speaker #3: A resulting outlook of long-term value growth. With moderate volume growth. Finally, we detailed what's in it for our shareholders. Double-digit annual growth rates in free funds flow.

development plans, we discussed standardized modules, designed 1, build many

Speaker #3: And free funds flow per share. Increasing cash returns via dividend growth. And rateable buybacks. And importantly, achievable in a 65 a barrel WTI environment.

Focus in the resource-rich corridor, south of Firebag and east of our base plan. All 100% Suncor-owned, with regulatory approvals in place. We highlighted extensive regional synergies—synergies unique to Suncor, providing lower capital costs well below greenfield development.

Rich Kruger: We've described how our Fort Hills plant has capacity above its nameplate, with stream day capacity of about 220,000 barrels a day versus an original design basis of 194,000 barrels a day. During our recent Investor Day, we detailed how we will monetize this capacity over time, increasing annual production from 175,000 barrels a day in 2025 to 200,000 in 2028. For our teams, that timing wasn't good enough. As a result, in late April, we negotiated a commercial agreement with Syncrude's owners, whereby Fort Hills purchases ore from Syncrude's Aurora mine and processes it at spare Fort Hills plant capacity. Everybody wins. Fort Hills, Syncrude, and the province of Alberta through royalties, and with Suncor on both sides of the deal, we win twice. Incremental volumes, incremental value in today's price environment.

Speaker #3: With upside if prices are higher. Bottom line, we have a clear definitive plan to compete and win short-term and long-term. Plan built around what we can control.

Speaker #3: And what we can confidently execute. And a plan coupled with high performance that we believe offers a compelling value proposition. Ensuring Suncor will stand on the podium in any and all business environments.

Speaker #3: Delivering reliable superior shareholder value. A must-own oil and gas stock. Or a foundational building block for any investment portfolio. With that, I'll turn it over to Troy.

Rich Kruger: Double-digit annual growth rates in free funds flow and free funds flow per share, increasing cash returns via dividend growth and ratable buybacks. Importantly, achievable in a CAD 65 a barrel WTI environment with upside if prices are higher. Bottom line, we have a clear definitive plan to compete and win short-term and long-term. A plan built around what we can control and what we can confidently execute, and a plan coupled with high performance that we believe offers a compelling value proposition, ensuring Suncor will stand on the podium in any and all business environments, delivering reliable, superior shareholder value, a must-own oil and gas stock or a foundational building block for any investment portfolio. With that, I'll turn it over to Troy.

Speaker #2: Thanks, Rich. We ended the first quarter in a very different place than where we started. With March's average WTI price being 50% higher than January.

Sequence to maximize efficiency and capture Lessons. Learned a 400,000 barrels, a day portfolio at an average Capital cost of about flowing Barrel but the best part, we described how how all barrels are not created. Equal, quantifying the structural shift over time, from mining barrels to insitu with cash flow per barrel of insitu roughly 2 times mining's, current level. A resulting Outlook of long-term, value growth with moderate volume growth. Uh, finally, we detail what's in it for our shareholders double-digit, annual growth rates in free funds flow and and free funds flow per share.

Increase in cash returns via dividend growth and rateable buybacks.

Speaker #2: For Suncor, this is exactly the environment we're built for. Our integrated model was constructed to capture opportunity when others cannot. Our Q1 financial results reflect that.

Speaker #2: $4 billion in adjusted funds from operations. Of $1 billion or 32% year over year. $2.9 billion in free funds flow. Up $1 billion or 53% year over year.

Rich Kruger: We moved the first load of ore literally before the ink was dry on 29 April. An example of today's Suncor, operationally excellent and commercially opportunistic. The non-operational highlight of Q1 was on 31 March, our Investor Day in Toronto, with the agenda as follows. First, we talked about today's Suncor, how the company has been rebuilt to compete and win with superior performance and safety, reliability, cost management, and volumes. The delivery of our 2024 Investor Day commitments in 2 years versus a plan of 3. 114,000 barrels a day of upstream production growth over those 2 years and a 10% higher refining capacity. CAD 10 a barrel reduction in our corporate breakeven and more than CAD 3.3 billion per year in incremental Free Funds Flow.

And importantly, achievable in a 65, a barrel, WTI environment. With upside, if prices are higher bottom line, we have a clear definitive plan to compete and win short-term, and long-term plan built around what we can control and what we confidently, execute

Speaker #2: And we returned 1.5 billion to shareholders. $825 million in buybacks. And $712 million in dividends. And that doesn't reflect the increase in our buyback on April 1st to $350 million per month.

Speaker #2: The second increase since last November. Rather than walking through our quarterly report, I will focus on a few specific items. Let me start with downstream margin capture.

Troy Little: Thanks, Rich. We ended Q1 in a very different place than where we started, with March's average WTI price being 50% higher than January. For Suncor, this is exactly the environment we're built for. Our integrated model was constructed to capture opportunity when others cannot. Our Q1 financial results reflect that. CAD 4 billion in adjusted funds from operations of CAD 1 billion or 32% year-over-year. CAD 2.9 billion in free funds flow, up CAD 1 billion or 53% year-over-year. We returned CAD 1.5 billion to shareholders, CAD 825 million in buybacks and CAD 712 million in dividends. That doesn't reflect the increase in our buyback on 1 April to CAD 350 million per month, the second increase since last November.

And a plan coupled with high performance that we believe offers a compelling value proposition. Ensuring Suncor will stand on the podium in any and all business environments delivering reliable. Superior shareholder value, a must-own oil and gas stock or a foundational building block for any Investment Portfolio with that. I'll turn it over to Troy.

Speaker #2: An area where our business results are differentiated this quarter. Our 99% capture will likely be a surprise to many in a rising crack environment.

Thanks, Rich. We ended the first quarter in a very different place than where we started with March's average WTI price being 50% higher than January.

Speaker #2: Where it's often difficult to fully capture increases in real-time. Because of lags in market pricing response. The strong margin capture this quarter is a testament to the great work by our sales and marketing and supply and trading teams.

This is Suncor. This is exactly the environment we're built for. Our integrated model was constructed to capture opportunity when others cannot.

Our Q1 financial results reflect that.

4 billion dollars in adjusted funds from operations of 1 billion dollars or 32% year-over-year.

Rich Kruger: The day continued with the theme of we're not done yet, outlining an ambitious set of new commitments over the next 3 years. Another 100,000 barrels a day of Upstream production growth, a further CAD 5 a barrel reduction in enterprise breakeven, and an additional CAD 2 billion a year in Free Funds Flow. The long-anticipated topic of our long-term oil sands outlook, where we detailed our large, long-life, high-quality reserves and resource base. 2P reserves of 7 billion barrels, the longevity with a 25-year reserve life, contingent resources of 30 billion barrels, literally a century of development opportunities, and 11 billion barrels or 60% higher than our last assessment a decade ago, contained within 22 billion barrels of high-quality in situ adjacent to existing assets, commercial with today's technology and expected future prices, with the entire assessment validated by third-party independent experts. Development plans.

Speaker #2: Who took advantage of market dislocations in real-time. In particular, in export markets. In March, for instance, we were able to capitalize on our existing trading relationships in 45 countries.

In free funds flow, up $1 billion, or 53% year-over-year.

Speaker #2: To send diesel and jet to places like the Philippines. And Puerto Rico. Both at significant premiums to market pricing. We have spent years building out the logistics and commercial capabilities to act on opportunities just like these.

Reflect the increase in our buyback on April 1st to 350 million per month.

Troy Little: Rather than walking through our quarterly report, I will focus on a few specific items. Let me start with downstream margin capture, an area where our business results are differentiated this quarter. Our 99% capture will likely be a surprise to many in a rising crack environment, where it's often difficult to fully capture increases in real-time because of lags in market pricing response. The strong margin capture this quarter is a testament to the great work by our sales and marketing and supply and trade, and trading teams who took advantage of market dislocations in real-time, in particular in export markets. In March, for instance, we were able to capitalize on our existing trading relationships in 45 countries to send diesel and jet to places like the Philippines and Puerto Rico, both at significant premiums to market pricing.

Second increase since last November.

Speaker #2: And that investment paid off meaningfully this past quarter. Moving to our balance sheet for a moment. As you would have seen, Q1 included a working capital build of 1.7 billion dollars.

Rather than walking through our quarterly report. I will focus on a few specific items.

Let me capture an area where our business results are differentiated this quarter.

Speaker #2: Almost all of which was directly related to the strong positive move upwards in the business environment in March. At the end of Q1, our accounts receivable and inventory balances stored significant amounts of cash from higher prices.

Our 99% capture will likely be a surprise to many in a rise in crack environment. Where it's often difficult to fully capture increases in real time because of lags and market pricing response,

Speaker #2: A lot of which has already been released to us in the past two weeks through the normal industry settlement cycle. Recall that working capital is a tool that Suncor uses to drive returns in our downstream.

The strong merchant capture this quarter is a testament to the great work by our sales and marketing, and supply and trading teams, who market dislocations in real time, in particular, in export markets.

Speaker #2: Sufficient inventories in the right place and at the right time can provide opportunities for our supply and trading colleagues to take advantage of margin opportunities that others cannot.

Rich Kruger: We discussed standardized modules, design 1, build many, focused in the resource-rich corridor south of Firebag and east of our base plant, all 100% Suncor-owned with regulatory approvals in place. We highlighted extensive regional synergies unique to Suncor, providing lower capital costs well below greenfield development. Sequenced to maximize efficiency and capture lessons learned, a 400,000 barrels a day portfolio at an average capital cost of about CAD 30,000 per flowing barrel. The best part, we described how all barrels are not created equal, quantifying the structural shift over time from mining barrels to in situ, with cash flow per barrel of in situ roughly 2 times mining's current level. A resulting outlook of long-term value growth with moderate volume growth. Finally, we detailed what's in it for our shareholders.

Troy Little: We have spent years building out the logistics and commercial capabilities to act on opportunities just like these. That investment paid off meaningfully this past quarter. Moving to our balance sheet for a moment. As you would have seen, Q1 included a working capital build of CAD 1.7 billion, almost all of which was directly related to the strong positive move upwards in the business environment in March. At the end of Q1, our accounts receivable and inventory balances stored significant amounts of cash from higher prices, a lot of which has already been released to us in the past two weeks through the normal industry settlement cycle. Recall that working capital is a tool that Suncor uses to drive returns in our downstream.

In March, for instance, we were able to capitalize on our existing trading relationships, in 45 countries to send Diesel and jet to places like Puerto Rico, both at significant premiums to market pricing.

Speaker #2: So we manage our working capital very tightly. But with a view that we don't want to miss solid business opportunities. This working capital increase contributed to a temporary increase in our net debt of $500 million.

We have spent years building out the logistics and Commercial capabilities to access and that investment paid off meaningfully this past quarter.

Speaker #2: Versus Q4 2025. Despite much higher free funds flow. Again, driven by the timing of the normal settlement cycle. We remain very pleased with the current state of our balance sheet.

Moving to our balance sheet for a moment. As you would have seen q1 included a working capital build of 1.7 billion.

Almost all of which was directly related to the strong positive move upwards in the business environment in March.

Speaker #2: Continuing to be significantly within our guardrail of one times net debt to cash flow at $50 per barrel WTI. Turning to capital allocation, let me be clear about how we think about returning cash to shareholders.

At the end of Q1, our accounts receivable and inventory balances stored significant amounts of cash from higher prices.

Speaker #2: We believe that a steady growing base dividend plus consistent rateable buybacks provides long-term investors with a predictable framework they can count on through the cycle.

A lot of which has already been released to us in the past 2 weeks through the normal industry settlement cycle.

Troy Little: Sufficient inventories in the right place and at the right time can provide opportunities for our supply and trading colleagues to take advantage of margin opportunities that others cannot. We manage our working capital very tightly, but with a view that we don't wanna miss solid business opportunities. This working capital increase contributed to a temporary increase in our net debt of CAD 500 million versus Q4 2025, despite much higher free funds flow, again, driven by the timing of the normal settlement cycle. We remain very pleased with the current state of our balance sheet, continuing to be significantly within our guardrail of 1x net debt to cash flow at CAD 50 per barrel WTI. Turning to capital allocation, let me be clear about how we think about returning cash to shareholders.

Recall that working capital is a tool that Suncor uses to drive returns in our Downstream.

Speaker #2: Supporting this ability to deliver consistent cash returns to shareholders. Is a world-scale long-life high-quality resource base with no expiration risk. An integrated model that delivers through all cycles.

sufficient inventories in the right place and at the right time can provide opportunities for our supply and trading colleagues to take advantage of Market opportunities that others cannot

Rich Kruger: Double-digit annual growth rates in free funds flow and free funds flow per share, increasing cash returns via dividend growth and ratable buybacks, and importantly, achievable in a CAD 65 a barrel WTI environment with upside if prices are higher. Bottom line, we have a clear, definitive plan to compete and win short-term and long-term, plan built around what we can control and what we can confidently execute, and a plan coupled with high performance that we believe offers a compelling value proposition, ensuring Suncor will stand on the podium in any and all business environments, delivering reliable, superior shareholder value, a must-own oil and gas stock, or a foundational building block for any investment portfolio. With that, I'll turn it over to Troy.

so we manage our working capital very tightly, but with a view that we don't want to miss solid business opportunities,

Speaker #2: And a clear phased plan to develop our assets and grow value while maintaining capital discipline. The recent increase in our buybacks to $350 million per month wasn't a short-term reaction to recently improved market conditions.

this working capital increase contributed to a temporary increase in our. Net debt of

$500 million versus Q4 2025, despite much higher free funds flow. Again, driven by the timing of the normal settlement cycle.

Speaker #2: It reflected our confidence in the business plan that we put forward in our investor day. Let me close with a discussion around profitability and long-term repeatable earnings power.

We remain very pleased with the current state of our balance sheet, continuing to be significantly within our guard rate of 1 times. Net debt to cash flow at $50 per barrel. WTI

Speaker #2: You were all familiar with the reduction in our break-even of the last two years. Of $10 per barrel. These reductions make Suncor highly resilient in lower commodity price environments.

Troy Little: We believe that a steady growing base dividend plus consistent ratable buybacks provides long-term investors with a predictable framework they can count on through the cycle. Supporting this ability to deliver consistent cash returns to shareholders is a world-scale, long-life, high-quality resource base with no exploration risk, an integrated model that delivers through all cycles, and a clear phased plan to develop our assets and grow value while maintaining capital discipline. The recent increase in our buybacks to CAD 350 million per month wasn't a short-term reaction to recently improved market conditions. It reflected our confidence in the business plan that we put forward in our Investor Day. Let me close with a discussion around profitability and long-term repeatable earnings power. You are all familiar with the reduction in our breakeven of the last two years of CAD 10 per barrel.

Turning to Capital allocation, let me be clear about how we think about returning cash to shareholders.

Speaker #2: What is perhaps not as well understood is how the improvements we have already made have even more impact in a high commodity price environment.

We believe that a steady growing base dividend plus consistent, rateable BuyBacks provides. Long-term investors with a predictable framework. They can count on through the cycle.

Speaker #2: As an example, if we applied the business environment of 2022. When we last saw a strong commodity price environment. To an annualized Q1 2026.

Supporting this ability to deliver consistent cash returns to shareholders. Is a world-scale long life high-quality resource base with no, expiration risk.

An integrated model that delivers through all Cycles.

Troy Little: Thanks, Rich. We ended Q1 in a very different place than where we started, with March's average WTI price being 50% higher than January. For Suncor, this is exactly the environment we're built for. Our integrated model was constructed to capture opportunity when others cannot. Our Q1 financial results reflect that. CAD 4 billion in Adjusted Funds from Operations, up CAD 1 billion or 32% year-over-year. CAD 2.9 billion in Free Funds Flow, up CAD 1 billion or 53% year-over-year. We returned CAD 1.5 billion to shareholders, CAD 825 million in buybacks and CAD 712 million in dividends. That doesn't reflect the increase in our buyback on 1 April to CAD 350 million per month, the second increase since last November.

Speaker #2: Today's Suncor would generate the same AFFO or higher at oil prices that are over $15 per barrel lower than 2022. Assuming all other pricing was consistent with that year.

And a clear phased plan to develop our assets and grow value while maintaining Capital discipline.

The recent increase in our BuyBacks to 350 million per month. Wasn't a short-term reaction to recently improved market conditions.

Speaker #2: So we are not just well-suited amongst our competitors in a lower commodity price scenario. We are also positioned to capture significant value at higher prices also.

It reflected our confidence in the business plan that we put forward in our investor day.

Let me close with a discussion around profitability and long-term, repeatable earnings power.

Speaker #2: And this will only grow as we continue to improve further in the years ahead. In part driven by our structural move towards higher margins since you production.

Troy Little: These reductions make Suncor highly resilient in lower commodity price environments. What is perhaps not as well understood is how the improvements we have already made have even more impact in a high commodity price environment. As an example, if we apply the business environment of 2022, when we last saw a strong commodity price environment, to an annualized Q1 2026, today's Suncor would generate the same AFFO or higher at oil prices that are over CAD 15 per barrel lower than 2022, assuming all other pricing was consistent with that year. We are not just well-suited amongst our competitors in a lower commodity price scenario. We are also positioned to capture significant value at higher prices also.

You are all familiar with the reduction in our break, even of the last 2 years of ten dollars per barrel.

Speaker #2: Bottom line, this quarter again demonstrates the strength of Suncor's uniquely integrated model. Strong operating and financial performance. Delivering reliable value to our shareholders. With that, I will turn the call back over to Adam so that we can take some questions.

These reductions make uncore, highly resilient in lower commodity price environments.

What is perhaps not as well? Understood is how the improvements we have already made. Have even more impact in a high commodity price environment.

Troy Little: Rather than walking through our quarterly report, I will focus on a few specific items. Let me start with downstream margin capture, an area where our business results are differentiated this quarter. Our 99% capture will likely be a surprise to many in a rising crack environment, where it's often difficult to fully capture increases in real-time because of lags in market pricing response. The strong margin capture this quarter is a testament to the great work by our sales and marketing, supply and trade, and trading teams who took advantage of market dislocations in real-time, in particular in export markets. In March, for instance, we were able to capitalize on our existing trading relationships in 45 countries to send diesel and jet to places like the Philippines and Puerto Rico, both at significant premiums to market pricing.

Speaker #1: Thank you, Troy. I'll turn the call back to the operator to take some questions.

As an example, if we applied the business environment of 2022, when we last saw a strong commodity price environment,

To an annualized, q1 2026.

Speaker #3: 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.

Today's Suncor would generate the same AFO, or higher, at oil prices that are over $15 per barrel lower than 2022.

Speaker #3: Due to time restraints, we ask that you please limit yourself to one question and one follow-up question. Please stand by while we compile the Q&A roster.

Assuming all other pricing was consistent with that year.

So, we are not just well suited amongst our competitors in a lower commodity price scenario.

Troy Little: This will only grow as we continue to improve further in the years ahead, in part driven by our structural move towards higher-margin in situ production. Bottom line, this quarter again demonstrates the strength of Suncor's uniquely integrated model. Strong operating and financial performance, delivering reliable value to our shareholders. With that, I will turn the call back over to Adam so that we can take some questions.

We are also positioned to capture significant value at higher prices also.

Speaker #3: And our first question will come from the line of Greg Pardy with RBC Capital Markets. Your line is open.

Speaker #4: Yeah, thanks. Thanks. Good morning. And thanks for the rundown as always. Rich and Troy, you've both delved into the downstream. How the dynamics are changing and how you're running that business.

And this will only grow as we continue to improve further in the years ahead, in part driven by our structural move towards higher margins. That you production

Bottom line. This quarter again, demonstrates the strength of sun course, uniquely integrated model

Speaker #4: So the question's almost like twofold. One is if is $680,000 in the first quarter in terms of refined product sales, that certainly looks very conservative vis-à-vis what your annual guidance looks like.

Strong operating and financial performance, delivering reliable value to our shareholders.

Troy Little: We have spent years building out the logistics and commercial capabilities to act on opportunities just like these, and that investment paid off meaningfully this past quarter. Moving to our balance sheet for a moment, as you would have seen, Q1 included a working capital build of CAD 1.7 billion, almost all of which was directly related to the strong positive move upwards in the business environment in March. At the end of Q1, our accounts receivable and inventory balances stored significant amounts of cash from higher prices, a lot of which has already been released to us in the past two weeks through the normal industry settlement cycle. Recall that working capital is a tool that Suncor uses to drive returns in our downstream.

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

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

Thank you, Troy.

Operator: Thank you. As a reminder to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, press star one one again. Due to time restraints, we ask that you please limit yourself to 1 question and 1 follow-up question. Please stand by while we compile the Q&A roster. Our first question will come from the line of Greg Pardy with RBC Capital Markets. Your line is open.

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

Speaker #4: But perhaps more important questions are around what's going on in terms of maybe your how much market share are you capturing domestically, do you think?

Question. Please press star, 1, 1 on your telephone, and wait for your name to be announced.

Speaker #4: And then does the international hold that much more promise? I'm just trying to get a better understanding. What's the dimensions of that refined product sale number could look like going forward?

To withdraw your question, press star one one again. Due to time restraints, we ask that you please limit yourself to one question and one follow-up question. Please stand by while we compile the Q&A roster.

Speaker #1: Yeah, Greg, I'll offer this Rich. I'll give you a quick comment or two, and then I'll ask Dave to comment more fully. As we've evolved this kind of I refer to it as a strategic shift over the last few years.

Greg Pardy: Thanks. Thanks. Good morning, and thanks for the rundown as always. You know, Rich and Troy, you've both, you know, delved into the Downstream, how the dynamics are changing and how you're running that business. The question's almost like twofold. One is, if, you know, is 680,000 in Q1 in terms of refined product sales, that certainly looks very conservative vis-a-vis what your annual guidance looks like. Perhaps more important questions are around what's going on in terms of how much market share are you capturing domestically, do you think? Then, does the international hold that much more promise? I'm just trying to get a better understanding as what the dimensions of that refined product sale number could look like going forward.

Our first question will come from the line of Greg party with RBC Capital markets, your line is open.

Speaker #1: It's still a work in progress. We are continuing to find ways to add and create value in its underpinned obviously by refining performance. But it further integrates into the distribution, logistics, and investor day we talked about how a couple of years ago we had reached into 20-some countries around the globe.

Troy Little: Sufficient inventories in the right place and at the right time can provide opportunities for our supply and trading colleagues to take advantage of margin opportunities that others cannot. We manage our Working Capital very tightly, but with a view that we don't wanna miss solid business opportunities. This Working Capital increase contributed to a temporary increase in our Net Debt of CAD 500 million versus Q4 2025, despite much higher Free Funds Flow, again, driven by the timing of the normal settlement cycle. We remain very pleased with the current state of our balance sheet, continuing to be significantly within our guardrail of 1 times Net Debt to cash flow at CAD 50 per barrel WTI. Turning to capital allocation, let me be clear about how we think about returning cash to shareholders.

Yeah, thanks. Thanks. Good morning and thanks for the rundown, as always, um, You Know, Rich and Troy you both, you know, delved into the downstream, how the Dynamics are changing and how you're running that business. So the

the, the questions almost like 2 241 is is

Speaker #1: Now that's 45 countries. So this is a strategy that continues to develop and unfold. And with it, you're seeing the higher sales volumes. Clearly, there were opportunities in the market that also created value for us to the point of, for example, we were able to buy competitors' volumes on the dock or at a tailgate and then turn around and because of our unique capabilities deliver it with material uplifts.

Rich Kruger: Yeah, Greg, I'll offer this, Rich. I'll give you a quick comment or two, and then I'll ask Dave to comment more fully. You know, as we've evolved this kind of, I refer to it as a strategic shift over the last few years, it's still a work in progress. We are continuing to find ways to add and create value, and it's underpinned, obviously, by refining performance, but it further integrates into the distribution logistics. On Investor Day, we talked about how a couple of years ago, we had reach into 20 some countries around the globe. Now that's 45 countries. This is a strategy that continues to develop and unfold. With it, you're seeing the higher sales volumes.

If you know, is 680,000 in the first quarter inches of refined product sales, that certainly looks very conservative. These are what your annual guidance looks like. But perhaps the more important questions are around what's going on in terms of maybe how much market share you're capturing domestically, do you think? And then, does the international hold that much more promise? I'm just trying to get a better understanding of what the dimensions of that refined product sales number could look like going forward.

Troy Little: We believe that a steady, growing base dividend plus consistent ratable buybacks provides long-term investors with a predictable framework they can count on through the cycle. Supporting this ability to deliver consistent cash returns to shareholders is a world-scale, long-life, high-quality resource base with no exploration risk, an integrated model that delivers through all cycles, and a clear, phased plan to develop our assets and grow value while maintaining capital discipline. The recent increase in our buybacks to CAD 350 million per month wasn't a short-term reaction to recently improved market conditions. It reflected our confidence in the business plan that we put forward in our Investor Day. Let me close with a discussion around profitability and long-term repeatable earnings power. You are all familiar with the reduction in our breakeven of the last 2 years of CAD 10 per barrel.

Speaker #1: So I think it's a little bit less of characterizing that outlook as conservative. And really, it's more about our teams continue to aggressively pursue and capture value and that is resulting in higher volumes.

Speaker #1: Dave, any comments you'd add on to that? I know I gave a mouthful there.

Speaker #2: You had quite a bit of it. Greg, maybe I'll just comment on the sales number specifically. When I think about the sales is where did the volume come from and where did it go?

Speaker #2: Because you got to produce it to sell it, and then we have to find the right channels to sell it. So where did it come from in the first quarter?

Speaker #2: Because we did hit a record plus throughput. Throughput was up versus first quarter prior year. That's pretty obvious. We also had some non-crewed inputs, custom blends, particularly into our Edmonton refinery, which created more products for us to sell.

Rich Kruger: Clearly, there were opportunities in the market that also created, you know, value for us, to the point of, for example, we were able to buy competitors' volumes on the dock or at a tailgate and then turn around and because of our unique capabilities, deliver it with material uplifts. I think it's a little bit less of characterizing that outlook as conservative, and really it's more about our teams continue to aggressively pursue and capture value, and that is resulting in higher volumes. Dave, any comments you'd add on to that? I know I gave a mouthful there.

Speaker #2: We'll continue to do that going forward. So I think there's some good news on that. We drew some inventory, and that's really as Troy talked about, we had a pretty unique market present itself in March, and we took the opportunity to scale up our logistics systems on export to capture margins that were uniquely more profitable than Canadian alternatives.

Yeah, Greg I'll just I'll offer this Rich, I'll give you a quick comment or 2 and then I'll ask Dave to comment more fully you know, as we've evolved this kind of I refer to it as a strategic shift over the last few years. We're uh it's still a a work in progress. We are continuing to find ways to add and create value. And it it's it's underpinned. Obviously by refining performance but it further integrates into the distribution Logistics uh an investor day, we talked about how a couple years ago. We had reach into 20 some countries around the globe. Now that's 45 countries. So this is a strategy that continues to develop and unfold and with it. You are seeing the higher sales volumes, clearly the opportunities in the market that also created up, uh, you know, value for us. Uh, to the point of, for example, we were able to buy competitors volumes on the dock, or at a tailgate and then turn around and because of our unique cap,

Troy Little: These reductions make Suncor highly resilient in lower commodity price environments. What is perhaps not as well understood is how the improvements we have already made have even more impact in a high commodity price environment. As an example, if we applied the business environment of 2022, when we last saw a strong commodity price environment, to an annualized Q1 2026, today's Suncor would generate the same AFFO or higher at oil prices that are over CAD 15 per barrel lower than 2022, assuming all other pricing was consistent with that year. We are not just well suited amongst our competitors in a lower commodity price scenario. We are also positioned to capture significant value at higher prices also.

Speaker #2: And that's kind of our commercial intensity, our ability to be flexible in our superior trading skills allowed our team to do that. And just as an example, our Berard Vancouver dock is where we do most of our West Coast diesel exports.

Dave Oldreive: You did quite a bit of it. Greg, maybe I'll just comment on the, on the sales numbers specifically. You know, when I think about the sales is where did the volume come from and where did it go? 'Cause you got to produce it to sell it, and then we have to find the right channels to sell it. Where did it come from in Q1? 'Cause we did hit a record plus throughput. Throughput was up versus Q1 prior year. That's pretty obvious. We also had some non-crude inputs, custom blends, particularly into our Edmonton refinery, which created more products for us to sell. We'll continue to do that going forward. I think there's some good news on that.

Capabilities deliver it with material uplifts. So I I think it's a little bit less of characterizing that Outlook as conservative and and really it's more about our teams continue to aggressively pursue and capture value and that is resulting in higher volumes. Save any, any comments you'd add on to that. I know I gave a mouthful there gave quite a bit of it. Um,

Greg, maybe I'll just comment on the sales numbers. Specifically, you know, I think about the sales as, where did the volume come from? And where did it go?

Speaker #2: And that's our most profitable logistics and lowest cost logistics option for exports. We did 14 cargoes in the first quarter. That's compared to 28 cargoes in the full year of last year.

Speaker #2: So we've been able to scale that up to capture pretty unique opportunity. I'd expect us, depending on where the market goes, to have that ability going forward.

Speaker #1: Thanks, Dave.

Speaker #4: Yeah, that's terrific. Thanks very much for that. Maybe just to shift into the upstream and Rich, I know there's a big, big focus obviously moving ahead in terms of the shift towards in situ and the better netbacks and so on.

Troy Little: We drew some inventory. That's really, you know, as Troy talked about, we had a pretty unique market present itself in March. We took the opportunity through it to scale up our logistics systems on export to capture margins that were uniquely more profitable than Canadian alternatives. That's kind of our commercial intensity, our ability to be flexible in our superior trading skills allowed our team to do that. Just as an example, our Burrard, Vancouver dock is where we do most of our West Coast diesel exports.

Troy Little: This will only grow as we continue to improve further in the years ahead, in part driven by our structural move towards higher-margin in-situ production. Bottom line, this quarter again demonstrates the strength of Suncor's uniquely integrated model.

Speaker #4: But if you come back to Fort Hills, you're through the remediation plan. I hear you in terms of what you're saying around increased volumes and higher plant utilization.

Rich Kruger: Strong operating and financial performance, delivering reliable value to our shareholders. With that, I will turn the call back over to Adam so that we can take some questions.

Troy Little: Strong operating and financial performance, delivering reliable value to our shareholders. With that, I will turn the call back over to Adam so that we can take some questions.

Speaker #4: But with the streamlined move into the north pit then, is there a unit cost reduction story that'll begin to take shape potentially in '27, '28 beyond the volumetric numbers you're talking about simply with the plant?

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

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

Dave Oldreive: That's our most profitable logistics and lowest cost logistics option for exports. We did 14 cargoes in Q1. That's compared to 28 cargoes in the full year of last year. We've been able to scale that up to capture a pretty unique opportunity. I expect us, depending on where the market goes, to have that ability going forward.

Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, press star one one again. Due to time restraints, we ask that you please limit yourself to 1 question and 1 follow-up question. Please stand by while we compile the Q&A roster. Our first question will come from the line of Greg Pardy with RBC Capital Markets. Your line is open.

Um, because you got to produce it to sell it and then we have to find the right channels to sell it. So where did it come from in the first quarter? Because we did hit a record plus throughput. Uh, throughput was up versus, uh, versus first quarter prior year. That's pretty obvious. We also had some non crude inputs Custom Blends, uh, particularly into our Edmonton Refinery, which created more products for us to sell. Um, we'll continue to do that going forward. So I think there's some, some good news on that, we drew some inventory. And that's really, you know, as Troy talked about, we had a pretty unique Market presented itself in in March. And we took the opportunity through, to scale up our Logistics systems on on export to capture margins. That were uniquely more profitable than Canadian Alternatives and that's kind of our commercial commercial. Intensity, our ability to be flexible in our Superior, trading skills allowed our team to do that. And just as an example, our Berard uh Vancouver, uh Doc is where we do most of our West CO Coast diesel exports and that's our most profitable Logistics uh and lowest cost Logistics um option for

Speaker #1: No doubt about it. Again, I'll have Peter comment a little bit more fully. If you dial the clock back, and I guess it was about two years ago now when we had the three-year, we called it the recovery plan at Fort Hills.

Rich Kruger: Thanks, Dave.

Exports. We did 14 Cargo in the in the first quarter uh about compared to 28 Cargo in the full year of last year. So we've been able to scale that up to capture pretty unique opportunity. I expect us to depending on where the market goes to have that that ability going forward.

Greg Pardy: Yeah, that's terrific. Thanks very much for that. Maybe just to shift into the upstream. Rich, I know there's a big focus obviously moving ahead in terms of the shift towards in situ and the better net backs and so on. If you come back to Fort Hills, you're, you know, you're through the remediation plan. I hear you in terms of what you're saying around increased volumes and higher plant utilization. With the streamline move into the north pit then, is there a unit cost reduction story that'll begin to take shape potentially in, you know, 2027, 2028 beyond the volumetric numbers you're talking about simply, you know, with the plant?

Thanks Dave.

Speaker #1: It had a premise of getting up to 175. But it changed we made in that was not explicitly to the recovery plan years one through three, but it was years four through 44 where we said opening two pits in the north will make will create more value over the long term.

Greg Pardy: Yeah, thanks. Good morning, and thanks for the rundown, as always. You know, Rich and Troy, you've both, you know, delved into the downstream, how the dynamics are changing and how you're running that business. The question's almost, like, twofold. One is, if, you know, is 680,000 in Q1 in terms of refined product sales, that certainly looks very conservative vis-a-vis what your annual guidance looks like. Perhaps more important questions are around what's going on in terms of maybe your how much market share are you capturing domestically, do you think? Does the international hold that much more promise? I'm just trying to get a better understanding as what the dimensions of that refined product sale number could look like going forward.

Speaker #1: And so what we shared with the market, there were some incremental capital costs as we bought some new equipment, trucks and shovels. And then we said we appreciate your patience because you won't see that bend in the unit operating cost until we put that those two mines in play.

Speaker #1: So I think that outlook remains the same. It was a bit deferred from what we would have earlier characterized in the recovery plan. Peter, though, you want to comment more generally about Fort Hills, your progress priorities?

Rich Kruger: You know, no doubt about it. Now, you know, again, I'll have Peter comment a little bit more fully. If you dial the clock back, I guess it was about 2 years ago now, when we had the 3-year, we called it the recovery plan at Fort Hills. It had a premise of getting up to 175. A change we made in that was not explicitly to the recovery plan years 1 through 3, but it was years 4 through 44, where we said opening 2 pits in the north will create more value over the long term. What we shared with the market, there were some incremental capital costs as we bought some new equipment, trucks and shovels.

Yeah, that that's terrific, thanks very much for that. Maybe just to to shift into the upstream and and Rich. I know there's a big, big Focus obviously moving ahead in terms of the shift towards in situ and the better, net backs and so on. But if you if you come back to Fort Hills you're you know you're through the remediation plan. I hear you in terms of what you're saying around increased volumes and higher plant utilization. But with the Streamline movement to the North Pitt, then it is there a unit cost reduction story, that'll begin to take attention, you know, 2728 beyond the volume volumetric numbers you're talking about simply, you know, with the uh, with the plant

Speaker #3: Yeah, I would say our short-term focus, Greg, is to fill out the Fort Hills plant through the use of these incremental volumes that we're getting from Saint Krug Aurora that will also directionally support reducing unit costs.

Rich Kruger: Yeah, Greg, I'll offer this, Rich. I'll give you a quick comment or two, and then I'll ask Dave to comment more fully. You know, as we've evolved this kind of, I refer to it as a strategic shift over the last few years, we're, it's still a work in progress. We are continuing to find ways to add and create value, and it's underpinned obviously by refining performance, but it further integrates into the distribution, logistics. On Investor Day, we talked about how a couple years ago we had reach into 20 some countries around the globe. Now that's 45 countries. This is a strategy that continues to develop and unfold. With it, you're seeing the higher sales volumes.

Speaker #3: Given the denominator is going to increase. Longer term, as you said, our focus is opening up north pit two. We expect the first ore from north pit two to come in the first quarter of 2027.

Speaker #3: And as that north pit opens up and the mining volumes reduce due to reduced stripping, we do expect improvement in unit cost in that '27, '28 timeframe.

Rich Kruger: We said, you know, we appreciate your patience because you won't see that bend in the unit operating costs until we put those, you know, 2 mines in play. I think that outlook remains the same. It was a bit deferred from what we would have earlier characterized in the recovery plan. Peter, though, you wanna comment more generally about, you know, Fort Hills, your progress, priorities?

Speaker #1: So Greg, between the two of us, those that was a long answer to yes. We expect to be driving down unit costs as we put all the building blocks in place at Fort Hills.

Rich Kruger: Clearly, there were opportunities in the market that also created, you know, value for us, to the point of, for example, we were able to buy competitors' volumes on the dock or at a tailgate and then turn around and, because of our unique capabilities, deliver it with material uplifts. I think it's a little bit less of characterizing that outlook as conservative. Really it's more about our teams continue to aggressively pursue and capture value, and that is resulting in higher volumes. Dave, any comments you'd add on to that? I know I gave a mouthful there.

Speaker #4: All right. Thank you very much.

Speaker #5: One moment, for our next question. And that will come from the line of Dennis Fong with CIBC. Your line is open.

Peter Zebedee: I would say our short-term focus, Greg, is to fill out the Fort Hills plant through the use of these incremental volumes that we're getting from Syncrude Aurora that will also directionally support reducing unit costs, given the denominator is going to increase. Longer term, as you said, our focus is opening up North Pit 2. We expect the first ore from North Pit 2 to come in Q1 2027. As that North Pit opens up and the mining volume is reduced due to reduced stripping, we do expect improvement in unit cost in that 2027, 2028 timeframe.

Speaker #6: Hi, good morning. And thanks for taking my questions. The first one for me, Rich, is you've alluded in the past to the flexibility around your base plant upgraders as providing "craft cocktails" to some of your customers.

Plan at Fort Hills. It had a premise of getting up to 175 but but a change we made in that was not explicitly to the recovery plan years, 1 through 3, but it was years 4 through 44, where we said opening 2 pits in the north will make, will create more value over the long term. And so what we shared with the market, there were some incremental Capital costs as we bought some new equipment, trucks and shovels. And then we said you know we appreciate your patience because you won't see that bend in the unit operating costs until we put that those you know, 2 mines in play. So I think that that Outlook Remains the Same, it just it was a bit deferred from what we would have earlier characterized in the recovery. Plan, Peter though, you want to comment more generally about, you know, Fort Hills your progress priorities. Yeah. I would say, you know, our, our short-term Focus, Greg is to uh, fill out the form Hills plant through the use of these incremental volumes that we're getting, uh,

From syncrude Aurora that will also, you know, directionally support uh reducing uh unit costs.

Speaker #6: And differentiating your offerings versus other peers or competitors. Can you talk you and the team talk about the opportunities this affords you in terms of improving profitability, especially in this obviously very tumultuous commodity price environment?

Dave Oldreive: You gave quite a bit of it. Greg, maybe I'll just comment on the, on the sales numbers specifically. You know, when I think about the sales is where did the volume come from and where did it go? Because you gotta produce it to sell it, and then we have to find the right channels to sell it. Where did it come from in Q1? Because we did hit a record plus throughput. Throughput was up versus Q1 prior year. That's pretty obvious. We also had some non-crude inputs, custom blends, particularly into our Edmonton refinery, which created more products for us to sell. We'll continue to do that going forward, so I think there's some good news on that.

Rich Kruger: Greg, between the two of us, that was a long answer to yes. We expect to be driving down unit costs as we put all the building blocks in place at Fort Hills.

Given the denominator it is going to increase uh longer term as you as you said our focus is opening up uh North Pitt 2. We expect the first or from North to come in the first quarter of 2027 and as that uh North pit opens up and the mining volumes reduced due to reduced strep pain. We do expect Improvement unit cost in that 2728 time frame, so

Speaker #6: And that's mostly from the upstream, but I also recognize that there's opportunities in the downstream as well.

Speaker #1: Thanks, Dennis. It's a good question in that because we actually benefited from that materially in the first quarter with the unplanned decope at Sincrude and then being able to move product across to the base plant.

Greg Pardy: All right. Thank you very much.

Greg between the 2 of us was that was a long answer to yes. We expect to be driving down unit costs, as we put all the building blocks in place at Fort Hills

All right. Thank you very much.

Operator: One moment for our next question. That will come from the line of Dennis Fong with CIBC. Your line is open.

1 moment for our next question.

Speaker #1: But Dave, I'd really why don't you even comment explicitly about our ability to continue to feed, for example, our Edmonton refinery with had a record refining result and yet it works off of its appetite is pretty heavy synthetic crudes.

Dennis Fong: Hi, good morning, and thanks for taking my questions. The first one for me, Rich, is you've alluded in the past to the flexibility around your base plant upgraders as providing quote-unquote, "craft cocktails" to some of your customers and differentiating your offerings versus other peers or competitors. Can you and the team talk about the opportunities this affords you in terms of improving profitability, especially in this obviously very tumultuous commodity price environment? That's mostly from the upstream, but I also recognize that there's opportunities in the downstream as well.

And that will come from the line of Dennis Fong with CIBC your line is open.

Dave Oldreive: We drew some inventory, that's really, you know, as Troy Little talked about, we had a pretty unique market present itself in March. We took the opportunity through it to scale up our logistics systems on export to capture margins that were uniquely more profitable than Canadian alternatives. That's kind of our commercial intensity, our ability to be flexible, and our superior trading skills allowed our team to do that. Just as an example, our Burrard, Vancouver dock is where we do most of our West Coast diesel exports, that's our most profitable logistics and lowest cost logistics option for exports. We did 14 cargos in the Q1. That's compared to 28 cargos in the full year of last year. We've been able to scale that up to capture a pretty unique opportunity.

Hi, good morning and thanks for taking my questions.

Speaker #1: And despite disruptions in our upstream, how we kept that thing full and that craft cocktail concept, how we're putting it in practice.

Speaker #2: Yeah, absolutely. I think Edmonton's a great example. And I alluded to this in the last question around the non-crude feedstocks into Edmonton refinery. These are these craft cocktails that Rich likes to talk about.

Rich Kruger: Thanks, Dennis. You know, it's a good question in that because we actually benefited from that materially in Q1 with the unplanned decoke at Syncrude and then being able to move product across to the base plant. Dave, why don't you even comment explicitly about, you know, our ability to continue to feed, for example, our Edmonton refinery, which had a record refining result, and yet it works off of, you know, its appetite is pretty heavy, you know, synthetic crudes. Despite disruptions in our upstream, how we kept that thing full and that craft cocktail concept, how we're putting it in practice.

Um, the first 1 for me, um, uh, rich is, you've alluded in the past to the flexibility around your base client upgraders, as, as providing, uh, quote unquote, craft cocktails to some of your customers, and, and differentiating your offerings versus other, uh, peers or competitors. Can you talk, uh, you and the team talk about the opportunities to support you in terms of improving profitability? Um, especially in this, uh, obviously very tumultuous commodity price environment, um, and that's mostly from the Upstream, but I also recognize that there's opportunities in the downstream as well.

Speaker #2: Edmonton was a clear example of the value of our integration in the past quarter. We highlighted an investor day that we made some changes at Edmonton to improve diesel yields.

Dave Oldreive: I'd expect us, depending on where the market goes, to have that ability going forward.

Speaker #2: Small investment, $100,000 to move to add piping to modify gas oil hydro treater. So we could pull diesel off the gas oil hydro treater.

Rich Kruger: Thanks, Dave.

Greg Pardy: Yeah, that's terrific. Thanks very much for that. Maybe just to shift into the Upstream. Rich, I know there's a big focus obviously moving ahead in terms of the shift towards in situ and the better net backs and so on. If you come back to Fort Hills, you're, you know, you're through the remediation plan. I hear you in terms of what you're saying around increased volumes and higher plant utilization. With the streamlined move into the North Pit then, is there a unit cost reduction story that'll begin to take shape potentially in, you know, 2027, 2028 beyond the volumetric numbers you're talking about simply, you know, with the plant?

Speaker #2: What that did is gave us a $16,000 barrel a day diesel yield increase but it also allowed us to have spare capacity in our gasoline producing assets.

Thanks. Dennis, you know, it's a good question in that, because we actually benefited from that materially in the first quarter with the unplanned decoupe at Syncrude, and then being able to move, uh, move product across to the Base Plant. But Dave, I'd really want—why don't you even comment explicitly about, you know, our ability to continue to feed, for example, our Edmonton Refinery, which had a record refining result. And yet it, uh,

Speaker #2: With that, we were able to take these craft cocktails from the base plant run those directly into the secondary units at Edmonton and not only get the diesel yield up from the first part of that project but we were able to incrementally run more rate at Edmonton of non-crude inputs, these craft cocktails of 9,000 barrels a day.

Dave Oldreive: Yeah, absolutely. I think Edmonton is a great example. I alluded to this in the last question around the non-crude feedstocks into Edmonton Refinery. These are these craft cocktails that Rich likes to talk about. Edmonton was a clear example of the value of our integration in the past quarter. You know, we highlighted in Investor Day that we made some changes at Edmonton to improve diesel yields. Small investment, CAD 100,000, moves to add piping, to modify gas oil hydrotreater, so we could pull diesel off the gas oil hydrotreater. What that did, it gave us a 16,000 barrel a day diesel yield increase, but it also allowed us to have spare capacity in our gasoline-producing assets.

Speaker #2: So 160 record rate at Edmonton, we actually were about 169 of inputs and that allowed us to have great yields as well as improved volumes.

Rich Kruger: You know, no doubt about it. You know, again, I'll have Peter comment a little bit more fully. If you dial the clock back, I guess it was about 2 years ago now, when we had the 3-year, we called it the recovery plan at Fort Hills, it had a premise of getting up to 175. A change we made in that was not explicitly to the recovery plan, years 1 through 3, it was years 4 through 44, where we said opening 2 pits in the north will create more value over the long term. What we shared with the market, there were some incremental capital costs as we bought some new equipment, trucks and shovels.

It works off of a, you know, its appetite is pretty heavy, you know, synthetic Croods and uh, despite disruptions in our Upstream how we kept that thing full and and uh, that that craft cocktail concept our our putting it in practice. Yeah, absolutely. I think Edmonton's a great example and and I alluded to this in the last question around the, the non crude beat Socks in in Edmonton Refinery. These These are these craft cocktails that rich rich likes to talk about. Um, Edmonton was a clear, clear example of the value of our integration and the

Speaker #2: So it's just a great example of Suncor Integration coming together to improve not only reliability volumes as well as yields in our refineries.

Speaker #1: One other comment I'd make too is much like the downstream Dave refinery by refinery and the re-rate we had last year. We've been working hard to determine what are the physical capabilities of our upgraders and last year we ended up at 99% for the year.

Dave Oldreive: With that, we were able to take these craft cocktails from the base plant, run those directly into the secondary units at Edmonton, and not only get the diesel yield uplift from the first part of that project, but we were able to incrementally run more rate at Edmonton of non-crude inputs, these craft cocktails of about 9,000 barrels a day. 160 record rate at Edmonton, we actually were about 169 of inputs, and that allowed us to have great yields as well as improved volumes. It's just a great example of, you know, Suncor integration coming together to improve not only reliability

Quarter. Um, you know, we highlighted an investor day that we made some changes at Edmonton to improve diesel yields. Small investment $100,000 that moves uh to add piping to modify uh, soil, hydrotreater. So we could pull these off the gas oil. Hydrotreater what that did is gave us a 16,000 Barrel a day, diesel yield increase, but it also allowed us to have spare capacity in our gasoline producing assets.

Speaker #1: And I'm smiling over at my partner over here, Peter, because if he'd have been 99.5 or higher, I would have said, "Okay, it's time to re-rate those beasts." So even though we ended up 96% for the quarter overall and we've described that as something that we left something on the table, we were disappointing in that.

Rich Kruger: We said, you know, We appreciate your patience because you won't see that bend in the unit operating cost until we put those, you know, two mines in play. I think that outlook remains the same. It just, it was a bit deferred from what we would have earlier characterized in the recovery plan. Peter, though, you wanna comment more generally about, you know, Fort Hills, your progress, priorities?

Speaker #1: The base plant was well over 100%. And so we have capacity there. And the same philosophy we've applied to all of our facilities is determining that limit.

Um, with that, we were able to take these craft cocktails from the base plant. Run those directly into the secondary unit. So Edmonton and not only get the diesel yield up with, from the first part of that project. But we were able to incrementally, run more rate, uh, at Edmonton of non crude inputs, these craft cocktails of about 9,000 barrels a day. So 160 record rate at Edmonton. We actually were about 169 of, of, of inputs, uh, and that allowed us to have great yields as well as. Um,

Speaker #1: What can we do to further extend that limit? Safely, reliably. We're doing the exact same thing in the across the upstream and seeing similar results.

Rich Kruger: volumes as well as yields in our refinery suite. One other comment I'd make too is much like the downstream Dave refinery by refinery and the re-rate we had last year, you know, we've been working hard to determine what are the, you know, physical capabilities of our upgraders. Last year, we ended up at 99% for the year. I'm smiling over at my partner over here, Peter, because if he'd have been 99.5 or higher, I would've said, Okay, it's time to re-rate those pieces. Even though we ended up 96% for the quarter overall, and we described that as something that, you know, we left something on the table, we were disappointed in that, the base plant was well over 100%. We have capacity there.

Dave Oldreive: Yeah. I would say, you know, our short-term focus, Greg, is to fill out the Fort Hills plant through the use of these incremental volumes that we're getting from Syncrude Aurora that will also, you know, directionally support reducing unit costs. Given the denominator is going to increase. Longer term, as you said, our focus is opening up North Pit 2. We expect the first ore from North Pit 2 to come in Q1 2027. As that North Pit opens up and the mining volume's reduced due to reduced stripping, we do expect improvement in unit cost in that 2027, 2028 timeframe.

Peter Zebedee: Yeah. I would say, you know, our short-term focus, Greg, is to fill out the Fort Hills plant through the use of these incremental volumes that we're getting from Syncrude Aurora that will also, you know, directionally support reducing unit costs. Given the denominator is going to increase. Longer term, as you said, our focus is opening up North Pit 2. We expect the first ore from North Pit 2 to come in Q1 2027. As that North Pit opens up and the mining volume's reduced due to reduced stripping, we do expect improvement in unit cost in that 2027, 2028 timeframe.

Approved volumes. Uh, so it's just a great example of, you know, Suncor integration coming together to improve not only liability.

Speaker #4: Great. Really appreciate that color and context from the entire team. My follow-on is on Fort Hills here. As you kind of answered my question about the or my question on the upgrader throughput for the quarter.

Speaker #4: At Fort Hills and appreciate the context around we'll call it regional integration with the proximity to Aurora North Mines site. How does this opportunity set help maybe adjust mine progression, mine plan, and the ability to manage both obviously the higher fines content resource to the western edge as well as the opportunities to we'll call it optimize and push beyond the 220,000 barrel a day productive capacity at the facility?

Rich Kruger: Greg, between the two of us, that was a long answer to yes. We expect to be driving down unit costs as we put all the building blocks in place at Fort Hills.

Rich Kruger: The same philosophy we've applied to all of our facilities is determining that limit. What can we do to further extend that limit, you know, safely, reliably? We're doing the exact same thing across the upstream and seeing similar results.

Greg Pardy: All right. Thank you very much.

Operator: One moment for our next question. That will come from the line of Dennis Fong with CIBC. Your line is open.

Speaker #1: Peter.

Speaker #3: Yeah. Thanks, Dennis. And obviously, this gives the Fort Hills team and the Aurora team, frankly, more degrees of operating freedom in terms of blend management, as you said, managing out the right blends into the Fort Hills plant to optimize bitumen recovery.

% for the year. And I'm smiling over at my partner over here Peter because if he'd have been 99.5 or higher, I would have, I would have said, okay, it's time to rewrite those beasts. So even though we end up 96% for the quarter overall, and we describe that as something that, you know, we left something on the table, we were disappointing it in that the base plan was well over 100%. And so we have capacity there and the same philosophy. We've applied to all of our facilities is determining that limit. What can we do to further? Extend that limit, you know, safely, reliably, we're doing the exact same thing in the across the upstream and seeing similar results.

Dennis Fong: Great. Really appreciate that color and context from the entire team. My follow-on is on Fort Hills here. As you kinda answered my question about the or my question on the upgrader throughput for the quarter. At Fort Hills, and appreciate the context around, we'll call it regional integration with the proximity to Aurora North mine site. How does this opportunity set help maybe adjust mine progression, mine plan, and the ability to manage both obviously the higher fines content, resource to the Western Edge, as well as the opportunities to, we'll call it optimize and push beyond the 220,000 barrel a day productive capacity at the facility?

Dennis Fong: Hi, good morning, and thanks for taking my questions. The first one for me, Rich, is you've alluded in the past to the flexibility around your base plant Upgraders as providing craft cocktails to some of your customers and differentiating your offerings versus other peers or competitors. Can you and the team talk about the opportunities this affords you in terms of improving profitability, especially in this obviously very tumultuous commodity price environment? That's mostly from the Upstream, but I also recognize that there's opportunities in the Downstream as well.

Speaker #3: I would say we are our mine plans for the development of the Fort Hills mine remain the same today. This is essentially a shorter-term opportunity that we're taking to fill out the Fort Hills plant.

Speaker #3: And then we are going to transition to full Fort Hills volumes in the coming years. We will obviously look for opportunities to reduce operating costs, stripping volumes, etc.

Rich Kruger: Yeah. Thanks, Dennis. You know, it's a good question in that because we actually benefited from that materially in Q1 with the unplanned decoke at Syncrude, and then being able to move product across to the base plant. Dave, why don't you even comment explicitly about, you know, our ability to continue to feed, for example, our Edmonton refinery with a record refining result and yet it works off of, you know, its appetite is pretty heavy, you know, synthetic crudes. Despite disruptions in our upstream, how we kept that thing full and that craft cocktail concept, how we're putting it in practice.

Speaker #3: should those be warranted by the use of these incremental volumes. But for now, the Fort Hills mine plan remains as intended.

Great, really appreciate that. That color and context from the entire team. Uh, my follow on is on on Fort Hills here. Um, as you kind of answered my question about the uh or my my question on on the upgrade or throughput for for the quarter, um, at Fort Hills, um, and appreciate the context around. Uh, we'll call it Regional integration with the proximity to Aurora and North mine, mine site. How does this opportunity set help? Um, maybe adjust mind, progression, mind plan, and the ability to manage, uh, both obviously. Bye content, um, resources to the Western Edge, um, as well as the opportunities to we'll call it optimized. And uh, push beyond the 220,000 Barrel a day. Uh,

Rich Kruger: Peter?

Productive capacity at the facility.

Peter Zebedee: Thanks, Dennis. Obviously this gives the Fort Hills team and the Aurora team, frankly, more degrees of operating freedom in terms of blend management, as you said, managing out the right blends into the Fort Hills plant to optimize bitumen recovery. I would say our mine plans for the development of the Fort Hills mine remain the same today. This is essentially a shorter term opportunity that we're taking to fill out the Fort Hills plant, and then we're going to transition to full Fort Hills volumes in the coming years. We will obviously look for opportunities to reduce operating costs, stripping volumes, et cetera, should those be warranted by the, you know, the use of these incremental volumes.

Speaker #1: I'd just add to that. The vast majority of our assets in the region are certainly operated in 100% owned. Sincrude is the exception in that.

Speaker #1: But how we look at it is we look at it as what's the economic maximization or optimum across it? And we try not to get fussed with that ownership.

Speaker #1: And then when we see an opportunity we work it with the partners via a commercial solution. And this ore transfer is an example of that where there can be more value created by doing that than if we each just stuck with our them separately.

Dave Oldreive: Yeah, absolutely. I think Edmonton's a great example and it's I alluded to this in the last question around the non-crude feedstocks into Edmonton Refinery. These are these craft cocktails that Rich likes to talk about. Edmonton was a clear example of the value of our integration in the past quarter. You know, we highlighted in Investor Day that we made some changes at Edmonton to improve diesel yields. Small investment, CAD 100,000. Moves to add piping, to modify Gas Oil Hydrotreater so we could pull diesel off the Gas Oil Hydrotreater. What that did, it gave us a 16,000 barrel a day diesel yield increase, but it also allowed us to have spare capacity in our gasoline-producing assets.

Speaker #1: And that mindset has been a huge part of our story over the last few years of optimizing Suncor, the whole, and not a series of individual assets.

Peter Zebedee: For now, the Fort Hills mine plan remains, as intended.

Speaker #4: Great. I appreciate that color alternate back.

Rich Kruger: I'll just add to that. You know, the vast majority of our assets in the region are certainly, you know, operated and 100% owned. Syncrude is, you know, the exception in that. How we look at it is we look at it as, you know, what's the economic maximization or optimum across it? We try not to get fussed with that ownership. When we see an opportunity, we work it with the partners via a commercial solution. This ore transfer is an example of that, where we, you know, there can be more value created by doing that than if we each just stuck with our own individual assets and kept them separately.

Speaker #5: One moment for our next question. That will come from the line of Neil Mehta with Goldman Sachs. Your line is open.

Yeah, uh, thanks Dennis. And obviously, this gives the 4 Hills team, uh, and the Aurora team, frankly, uh, more degrees of operating Freedom, uh, in terms of, uh, blend management as you said managing out, uh, the right Blends into the Ford Hills, plant to optimize, uh, Benjamin recovery. I would say we are our mind plans for the development of the fort Hills. Mine remain the same today. This is essentially a shorter term opportunity that we're taking to fill out. The Ford Hills plant, uh, and then we are going to transition to full Ford Hills volumes in the, in the coming years, we will obviously look for opportunities to reduce operating costs. Uh, stripping volumes Etc. Uh, should those be warranted by, uh, you know, the use of these incremental volumes, uh, but for now, the portal is my plan remains, uh, as uh, as intended, I'll just add to that, you know, the vast majority of our Assets in the region.

Speaker #6: Yeah. Thanks so much. Rich, one micro question and one macro question. So the micro question is can we spend some time talking about your favorite child, Firebag, and specifically what are the things that you're watching here over the course of this year to see if it stays in your good graces?

Dave Oldreive: With that, we were able to take these craft cocktails from the base plant, run those directly into the secondary units at Edmonton, and not only get the diesel yield uplift from the first part of that project, but we were able to incrementally run more rate at Edmonton of non-crude inputs, these craft cocktails of about 9,000 barrels a day. A 160 record rate at Edmonton. We actually were about 169 of inputs. That allowed us to have great yields as well as improved volumes. It's just a great example of, you know, Suncor integration coming together to improve not only reliability, volumes, as well as yields in our refineries.

Are are certainly, you know, operated in a 100% owned s crude is, you know, the exception of that. But but how we look at it is we look at it as you know, what's the economic maximization or Optimum across it, and we try not to get fussed with that ownership. And then when we see an opportunity, we work it with the partners via a commercial solution in this. Or transfer is an example of that. Where the, you know, there can be more of

Speaker #2: Well, it is. It's got a place in my heart that lasts a long time, decades, decades, I'm sure. Peter just literally got back from there yesterday.

Rich Kruger: That mindset has been a huge part of our story over the last few years of optimizing Suncor, the whole, and not a series of individual assets.

Speaker #2: We're in the middle of our spring turnaround and we've described that as that's a pretty big event for us this year. It's the biggest turnaround Firebag's had for a while.

Value created by doing that. Then if we each just stuck with our own um individual assets and kept them separately, and that mindset has been a huge, a huge part of our story. Over the last few years of optimizing Suncor. The whole and not a series of individual assets.

Speaker #2: It's a key part of the volume story and where what Peter a few weeks in right now. And we never declare victory until the whistle blows.

Dennis Fong: Great. I appreciate that color. I will turn it back.

Rich Kruger: One other comment I'd make too is much like the downstream Dave refinery by refinery and the re-rate we had last year, you know, we've been working hard to determine what are the, you know, physical capabilities of our upgraders. Last year, we ended up at 99% for the year. I'm smiling over at my partner over here, Peter, because if he'd have been 99.5 or higher, I would've, I would've said, "Okay, it's time to rerate those beasts." Even though we ended up 96% for the quarter overall, and we've described that as something that, you know, we left something on the table, we were disappointed in that. The base plant was well over 100%. We have capacity there. The same philosophy we've applied to all of our facilities is determining that limit.

Great, I appreciate that color. I'll turn it back.

Operator: One moment for our next question. That will come from the line of Neil Mehta with Goldman Sachs. Your line is open.

1 moment for our next question.

Speaker #2: But things are going quite well. And that asset in particular, its size, its quality, the expertise we have on the technical and operational personnel, whether that's looking at improved drilling techniques, whether that's looking at expanded solvent applications, steam reliability, it just it's literally a playground of opportunities.

Neil Mehta: Yeah. Thanks so much, Rich. One micro question and one macro question. The micro question is, you know, can we spend some time talking about your favorite child, Firebag? Specifically, you know, what are the things that you're watching here over the course of this year, to see if it stays in your good graces?

Speaker #2: And with the quality of the people we have and the focus they've been providing, we keep seeing ways to make it better. An investor day we talked about growth from some of the near-term priorities infield drilling, the ultimate use of non-condensable natural gas, but it doesn't stop there.

Rich Kruger: Well, it is. It's got a place in my heart that lasts a long time, decades, I'm sure. Peter just literally got back from there yesterday. We're in the middle of our spring turnaround. We've described that as, you know, that's a pretty big event for us this year. It's the biggest turnaround Firebag's had for a while. It's a key part of the volume story. We're what, Peter, a few weeks in right now?

That will come from the line of Neil Mehta with Goldman Sachs, your line is open. Yeah, thanks so much. Uh, Rich 1 micro question and 1 macro question. So the the the micro question is, you know, can we spend some time talking about your favorite child to firebag? And, uh, you know, specifically, um, you know, where where are the things that you're watching here over the the course of this year, uh, to see, um, to see if it stays in your good graces.

Well.

Rich Kruger: What can we do to further extend that limit, you know, safely, reliably? We're doing the exact same thing across the upstream and seeing similar results.

Speaker #2: We're looking at what are the limiters in any particular piece of equipment or ongoing debottlenecking? And even though it was just literally a month ago or five weeks ago, that we put out an investor day plan, that just is a point in time.

Peter Zebedee: Yeah.

Rich Kruger: You know, we never declare victory until the whistle blows, but things are going quite well. You know, that asset in particular, its size, its quality, the expertise we have on the technical and operational personnel, whether that's looking at improved drilling techniques, whether that's looking at expanded solvent applications, steam reliability, it's literally a playground of opportunities. With the quality of the people we have and the focus they've been providing, we keep seeing ways to make it better. You know, in Investor Day, we talked about growth from some of the near-term priorities, infill drilling, the ultimate use of non-condensable natural gas. It doesn't stop there. We're looking at what are the limiters in any particular piece of equipment or ongoing debottlenecking.

Dennis Fong: Great. Really appreciate that color and context from the entire team. My follow-on is on Fort Hills here. As you kinda answered my question about the, or my question on the upgrader throughput for the quarter. At Fort Hills, and appreciate the context around, we'll call it regional integration with the proximity to Aurora North mine site. How does this opportunity set help, maybe adjust mine progression, mine plan, and the ability to manage, both obviously the higher fines content, resource to the Western Edge, as well as the opportunities to, we'll call it optimize and push beyond the 220,000 barrel a day productive capacity at the facility?

It's a long time decades decades, I'm sure. Um, Peter just literally got back from there yesterday. We're in the middle of our spring turnaround and we've described that as, you know, that's a pretty big event for us this year. So, this turnaround fire bags had for a while. It's a, it's a key part of the volume story and we're what Peter, a few weeks in right now, and, uh, you know, we never declare victory until the whistle blows but things are going quite well and, you know, it that asset in

Speaker #2: And we're already looking at avenues to go above and beyond and add value. And those are things we'll talk about over time. But I really, really love all my kids.

Speaker #2: Just happen to love a few of them, maybe a little bit more at times. And Firebag's sitting there right on my knee getting all my attention.

Speaker #6: Yeah. That's great. Peter, was there anything you wanted to add from your recent trip?

Speaker #2: Well, yeah, sure. A couple of things. I spent some time with the Firebag team yesterday. We're right in the midst of our spring turnaround as Rich mentioned.

Rich Kruger: Peter?

Speaker #2: It is our single biggest opportunity this year to deliver above our plans. The team is laser-focused on bringing that turnaround in on schedule, on budget, and it's going extremely well.

Dave Oldreive: Yeah. Thanks, Dennis. Obviously this gives the Fort Hills team and the Aurora team, frankly, more degrees of operating freedom in terms of blend management, as you said, managing out the right blends into the Fort Hills plant to optimize bitumen recovery. I would say our mine plans for the development of the Fort Hills mine remain the same today. This is essentially a shorter-term opportunity that we're taking to fill out the Fort Hills plant, and then we're going to transition

Peter Zebedee: Yeah. Thanks, Dennis. Obviously this gives the Fort Hills team and the Aurora team, frankly, more degrees of operating freedom in terms of blend management, as you said, managing out the right blends into the Fort Hills plant to optimize bitumen recovery. I would say our mine plans for the development of the Fort Hills mine remain the same today. This is essentially a shorter-term opportunity that we're taking to fill out the Fort Hills plant, and then we're going to transition

Rich Kruger: Even though, you know, it was just literally a month ago or five weeks ago that we put out an Investor Day plan, that just is a point in time, and we're already looking at avenues to go above and beyond and add value. Those are things we'll talk about over time, but I really, really, you know, love all my kids, just happen to love a few of them maybe a little bit more at times. You know, and Firebag's sitting there right on my knee, getting all my attention.

Speaker #2: So that's kind of job one at the moment. And then secondary to that and to the second biggest opportunity for us is to continue drilling out these sidetrack wells that we have in inventory at the Firebag site.

Speaker #2: We plan to do 20 of them this year. Again, these are just producing wells. So high return wells, quick returns for us. And the pads team is out there actively working to bring these online.

The people we have and the focus, they've been providing. We keep seeing ways to make it better. You know, an investor day. We talked about growth from some of the near-term, priorities, infill drilling. The ultimate use of non-condensable, natural gas. Um, but it doesn't stop there. We're looking at. What are the limiters in in any particular piece of equipment or ongoing debottlenecking? And even though you know it was just literally a month ago or 5 weeks ago that we put out an investor day plan that just is a point in time and we're already looking at avenues to go above and beyond and add value. And those are things we'll talk about over time but I'm really, really, you know, love all my kids. Uh, just happen to love a few of them, maybe a little bit more at times and uh, you know, and and fly back sitting there right on my right eye on my knee, getting all my attention.

Neil Mehta: Yeah, that's great. Peter, was there anything you wanted to add from your recent trip?

Peter Zebedee: To full Fort Hills volumes in the coming years. We will obviously look for opportunities to reduce operating costs, stripping volumes, et cetera, should those be warranted by the, you know, the use of these incremental volumes. For now, the Fort Hills mine plan remains as intended.

Peter Zebedee: Well, yeah, sure. A couple things. Spent some time with the Firebag team yesterday. We're right in the midst of our spring turnaround as Rich mentioned. It is our single biggest opportunity this year to deliver above our plans. The team is laser-focused on bringing that turnaround in on schedule, on budget. It's going extremely well. That's kind of job one at the moment. Secondary to that, to the second biggest opportunity for us is to continue drilling out these sidetrack wells that we have in inventory at the Firebag site. We plan to do 20 of them this year.

Yeah, that that that's great. And what was their Peter was there any thing you want to add from from your recent trip?

Speaker #1: Wayne, we haven't talked a lot about it, but on this call, but we're in the midst of kind of the two big upstream turnarounds for the early part of the year at the base mine and Firebag.

Rich Kruger: I'd just add to that, you know, the vast majority of our assets in the region are certainly, you know, operated and 100% owned. Syncrude is, you know, the exception to that. How we look at it is we look at it as, you know, what's the economic maximization or optimum across it? We try not to get fussed with that ownership. When we see an opportunity, we work it with the partners via a commercial solution. This ore transfer is an example of that, where we, you know, there can be more value created by doing that than if we each just stuck with our own individual assets and kept them separately.

Speaker #1: And we anticipate that those should be wrapped up before the end of the second quarter. And that'll position us for the kind of the typical second half of the year sprint that we do in our business.

Well, yeah, sure, a couple things, uh, you know, and spent some time with the firebag team. Yesterday, we're we're right in the midst of our spring, turnaround, as Rich mentioned. Uh, it is our single biggest opportunity this year to, uh, deliver, uh, above our plans. Uh, is Razor focused on bringing that turnaround in, uh, on on schedule on budget.

Speaker #1: And then if I flip to the downstream, Dave has had in the first quarter he had work at both Sarnia and Commerce City which are now largely behind us.

Speaker #1: And he's got pretty clear sailing till late in the third quarter before we do some work in Edmonton and Montreal. So we it's focused on getting that planned work done over the next several it's getting it's that sprint that really delivers in the second half of the year.

Peter Zebedee: These are just producing wells, so high return wells, quick returns for us and, you know, the pads team is out there actively working to bring these online.

Rich Kruger: That mindset has been a huge part of our story over the last few years of optimizing Suncor, the whole, and not a series of individual assets.

Rich Kruger: Well, we haven't talked a lot about it, but on this call, but we're in the midst of kind of the two big upstream turnarounds for the early part of the year at the Base Mine and Firebag, and we anticipate that those should be wrapped up before the end of Q2. That'll position us for the kind of the typical H2 of the year sprint that we do in our business. If I flip to the downstream, Dave has had in Q1, he had work at both Sarnia and Commerce City, which are now largely behind us. He's got pretty clear sailing till late in Q3 before we do some work in Edmonton and Montreal. You know, we, it's focused on getting that planned work done over the next several weeks.

Speaker #1: And we're right on target to do exactly that.

Speaker #6: Yeah. Rich, as a follow-up to the macro, I mean, you've been in this business since, what, 1981 when you started with Exxon? And so.

Dennis Fong: Great. I appreciate that color. I'll turn it back.

Speaker #1: Hey, hey, hey, hey. No age comments. Come on, Neil.

Operator: One moment for our next question. That will come from the line of Neil Mehta with Goldman Sachs.

Speaker #6: Hey, you still look younger than most of us. The question that I guess a lot of us would love to get your perspective on is put this moment in time in history where we're dealing with tremendous volatility and there's a lot of geopolitical risk.

Neil Mehta: Yeah, thanks so much. Rich, 1 micro question and 1 macro question. The micro question is, you know, can we spend some time talking about your favorite child, Firebag? You know, specifically, you know, what are the things that you're watching here over the course of this year, to see, to see if it stays in your good graces?

Uh, it's going extremely well. Um, so that's kind of job 1 at a moment and then, uh, secondary data to the second biggest opportunity for us is to continue drilling out these Sidetrack Wells that we have, uh, in inventory at the firebag site, we plan to do uh 20 of them. Uh, this year. Again, these are just producing Wells, so uh, High return Wells quick returns for us. And, um, you know, the, the pads team is out there actively uh, working to bring these online. Well, we haven't talked a lot about it, but, uh, on this call with the, we're in the midst of kind of the 2, big Upstream turnarounds for the early part of the year at the Baseline and firebag. And we anticipate that those should be wrapped up before the end of the second quarter and that'll position us for the kind of the typical second half of the Year Sprint that we we do in our business. And then if I flip to the downstream Dave has had in the first quarter.

Speaker #6: And we're moving headline to headline. What do you think are the long-term implications of the current conflict? And does that change the way that you think Big Oil should be thinking or running their business or stay the course?

Speaker #2: Well, one of the benefits one of the few benefits of getting older is you do see things in perspective a little bit. And obviously, just the fundamental nature of a global commodity, we've got ups and downs in the cycle.

Rich Kruger: Well, it is. It's got a place in my heart that'll last a long time, decades, I'm sure. Peter just literally got back from there yesterday. We're in the middle of our spring turnaround, and we've described that as, you know, that's a pretty big event for us this year. It's the biggest turnaround Firebag's had for a while. It's a key part of the volume story, and we're what, Peter, a few weeks in right now?

Rich Kruger: Then thereafter, it's getting, you know, it's that sprint that really delivers in H2 of the year, and we're right on target to do exactly that.

Speaker #2: And we've seen those before. I would say that each of them have a level of uniqueness. And this one has even more uniqueness. I think that the fundamental question is does it reset?

He had worked at both Sarnia and uh Commerce City which are now largely behind us and he's got pretty clear sailing till late in the third quarter. Before we do some work in in Edmonton and Montreal. So you know we uh it's focused on getting that planned work done over the next several weeks and then thereafter it's getting you know it's it's that Sprint that really delivers in the second half of the year and we're we're right on target to do exact

Neil Mehta: Yeah, Rich, as a follow-up to the macro, I mean, you've been in this business since, what, 1981 when you started with Exxon.

Exactly. That

Rich Kruger: Hey, hey. Hey, no age comments. Come on, Neil. Come on.

Peter Zebedee: Yeah.

Speaker #2: Does it become a geopolitical premium or something on security, security of supply? I would also say, though, that in our business, given the long-term capital-intensive nature that I think the best companies over time don't overreact to what could be short-term phenomena, either in the upside or the downside.

Neil Mehta: Yeah, you still look younger than most of us. The question that I guess a lot of us would love to get your perspective on is put this moment in time in history where we're dealing with tremendous volatility and there's a lot of geopolitical risk, and we're moving headline to headline, what do you think are the long-term implications of the current conflict? Does that change the way that you think big oil should be thinking or running their business or do you-

Yeah, Richard the follow-up to the macro. I mean, you've been in this business since what 1981 when you started with Exxon and so hey, hey, hey hey, hey, hey comments, come on. Yeah, you still look younger than most of us, the the question.

Speaker #2: And I think the plan we put out in an investor day gives us a rock-solid value-creating plan. And our vision today is that we will march along that plan and continue to deliver on it.

Rich Kruger: You know.

Neil Mehta: Do you stay the course?

Rich Kruger: Well, you know, one of the few benefits of getting older is you do see things in perspective a little bit. Obviously, this is just the fundamental nature of a global commodity. We've got ups and downs in the cycle, and we've seen those before. I would say that each of them have a level of uniqueness, and this one has even more uniqueness. I think that the fundamental question is, does it reset? Does it become a geopolitical premium or something on security, you know, security of supply? I would also say, though, that in our business, given the long-term capital intensive nature, that I think the best companies over time don't overreact to what could be short-term phenomena, either on the upside or the downside.

That I guess a lot of us would love to get your perspective on is put this moment in time in history where we're dealing with tremendous volatility and there's a lot of geopolitical risk and we're moving headline to headline. What do you think? Are the long-term implications of the current conflict and does that change the way that you think big oil should be thinking or running their business or or or do you say the course?

Speaker #2: If as time goes on, the dust settles, we determine that we're in a different world, in a more enduring basis, then we perhaps were a few months ago.

Speaker #2: We'll reexamine those. And I think what we shared with investor day, we have material upside potential to do more if the world calls for that.

Rich Kruger: Even though, you know, it was just literally a month ago or five weeks ago that we put out an Investor Day plan, that just is a point in time, and we're already looking at avenues to go above and beyond and add value. Those are things we'll talk about over time, but I'm really, you know, love all my kids, just happen to love a few of them maybe a little bit more at times. You know, and Firebag's sitting there right on my knee, getting all my attention.

Speaker #2: But I don't mean to make light of the current environment, but at Suncor, we are acutely focused on what we can control in delivering on it.

Well, you know, I the benefit 1 of the benefits, 1 of the few benefits of getting older is, you do see things in perspective a little bit. And obviously, this just a fundamental nature of a global commodity we've got ups and downs in the cycle. And we've seen those before, I would say that, each of them have a level of uniqueness and this 1 has even more uniqueness, I think that the fundamental question is, does it does it reset? Does it become a a geopolitical premium or something on security, you know, security of supply?

Speaker #2: And in times like this, I think Troy described it well. You really see the synergistic effects of the asset base and the organization we've built in times like this, whether prices are going up, whether they're going down, or whether they're stable.

Rich Kruger: I think the plan we put out in Investor Day gives us a rock solid value-creating plan, and our vision today is that we will march along that plan and continue to deliver on it. If as time goes on, the dust settles, you know, we determine that we're in a different world in a more enduring basis than we perhaps were a few months ago, we'll reexamine those. I think what we shared with Investor Day, we have material upside potential to do more if the world calls for that. I don't mean to make light of the current environment. At Suncor, we are acutely focused on what we can control and delivering on it. In times like this, I think Troy described it well.

Speaker #2: This company is built to deliver and generate cash in any and all of those environments. So kind of a long answer, Neil, to very, very interesting in it.

Neil Mehta: Yeah. That's great. Peter, was there anything you wanted to add from your recent trip?

Speaker #2: But we are continuing to focus on the plans we've already laid out.

Peter Zebedee: Well, yeah, sure. A couple things. Neil, I spent some time with the Firebag team yesterday. We're right in the midst of our spring turnaround, as Rich mentioned. It is our single biggest opportunity this year to deliver above our plans. The team is laser focused on bringing that turnaround in on schedule, on budget. It's going extremely well. That's kind of job one at the moment. Secondary to that or to the second biggest opportunity for us is to continue drilling out these sidetrack wells that we have in inventory at the Firebag site. We plan to do 20 of them this year. Again, these are just producing wells, so high return wells, quick returns for us.

Speaker #6: Thanks, Rich.

Speaker #7: One moment, for our next question. And that will come from the line of Patrick O'Rourke with ATB Coremark Capital Markets. Your line is open.

Speaker #6: Hey, good morning, guys. And congratulations on another strong quarter here. I've just going back to the refinery business downstream here. Just taking a look through some of the numbers.

Speaker #6: One thing that stood out to us was the sales to throughput ratio, the sales to refinery output ratio. And we've seen sort of a bit of progression of that over the past couple of years.

Rich Kruger: You really see the synergistic effects of the asset base and the organization we've built in times like this, whether prices are going up, whether they're going down, or whether they're stable. This company is built to deliver, generate cash in any and all of those environments. Kind of a long answer, Neil, to, you know, very, very interesting in it, but we are continuing to focus on the plans we've already laid out.

Speaker #6: And I realize it'll ebb and flow a bit. What's sort of the outlook for squeezing some incremental value out of this for the rest of the year?

Speaker #1: Patrick, this is a really cool question. And the reason it is, is we spend on these calls and things, we talk so much about crude unit throughput and utilization and that's kind of the barometer that we use.

Peter Zebedee: You know, the pads team is out there, actively working to bring these online.

Neil Mehta: Thanks, Rich. That's all for me.

Apps were a few months ago, we'll re-examine those. And I think what we shared with investor day we have material upside potential to do more if the world calls for that. But I but I uh I don't mean to make light of the current environment but uh at Suncor we are acutely focused on what we can control and delivering on it and uh and in times like this, I think Troy described it. Well you really see the the uh synergistic effects of the asset base and the organization we built in times like this or the prices are going up, whether they're going down or whether they're they're stable. This company is built to deliver generate cash in any and all those environments. So kind of a long answer Neil to, you know, very, very interesting in it but we are continuing to focus on the plans. We've already laid out

Rich Kruger: Well, we haven't talked a lot about it, but on this call, but we're in the midst of kind of the two big upstream turnarounds for the early part of the year at the base mine and Firebag, and we anticipate that those should be wrapped up before the end of Q2. That'll position us for the kind of the typical H2 of the year sprint that we do in our business. Then if I flip to the downstream, Dave Oldreive has in Q1, he had work at both Sarnia and Commerce City, which are now largely behind us. He's got pretty clear sailing till late in Q3 before we do some work in Edmonton and Montreal.

Thanks Chris, that's okay.

Operator: One moment for our next question. That will come from the line of Patrick O'Rourke with ATB Capital Markets. Your line is open.

One moment for our next question.

Speaker #1: But as we all know, there's more to it than that. There are other dimensions of ability to add value. So Dave, why don't you talk about as your team has maximized the utilization of the crude units, what you're also doing in some of the impacts you're having in other areas?

And that will come from the line of patch of work with ATB coremart Capital, markets, your line is open.

Patrick O'Rourke: Hey, good morning, guys, and congratulations on another strong quarter here. I'm just going back to the refinery business downstream here. Just taking a look through some of the numbers. One thing that sort of stood out to us was the sales to throughput ratio, the sales to refinery output ratio, and we've seen sort of a bit of progression of that over the past couple of years, and I realize it'll ebb and flow a bit. What's sort of the outlook for squeezing some incremental value of this for the rest of the year?

Speaker #8: Yeah, for sure. And we talked about a little bit this already. Retail growth is part of our sales story and where did the volume go.

Speaker #8: We talked about the export channel that we've maxed out to capture the market and the non-crude inputs. And it's into the refineries. All of that really does contribute to the growing sales, but not only growing sales, but growing sales to some of our best channels.

Hey, good morning guys. And congratulations on another strong quarter here. I've just, uh, going back to the refinery business Downstream here, just taking a look through. Some of the numbers 1 thing that stood out to us, was the the sales that throughput ratio the sales to Refinery output ratio. And we've seen

Rich Kruger: You know, it's focused on getting that planned work done over the next several weeks. Thereafter, it's getting, you know, it's that sprint that really delivers in H2, and we're right on target to do exactly that.

Rich Kruger: Patrick, this is a really cool question. The reason it is, you know, we spend on these calls and things, we talk so much about crude unit throughput and utilization, and that's kind of the barometer that we use. As we all know, there's more to it than that. There are other dimensions of ability to add value. Dave, why don't you talk about as your team has, you know, maximized the utilization of the crude units, what you're also doing and some of the impacts you're having in other areas.

Sort of a bit of progression of that over the past couple of years and I realized it'll EB and flow a bit. What's sort of the Outlook um for squeezing some incremental value to this uh, for the rest of the year.

Speaker #8: Maybe I'll give another example of what we've been doing in the last couple of quarters is jet fuel in Montreal. In December of last year, we started making jet fuel in Montreal as it turned out to be pretty good timing to start a jet fuel for the first time.

Neil Mehta: Yeah. Rich, as a follow-up to the macro, I mean, you've been in this business since, what, 1981 when you started with Exxon.

Speaker #8: But that we're at lower rates now, but that has the potential to grow it up to 16,000 barrels a day of jet fuel production.

Rich Kruger: Hey, hey. Hey, no age comments. Come on, Neil.

Neil Mehta: Hey, you still look younger than most of us. The question that I guess a lot of us would love to get your perspective on is put this moment in time in history where we're dealing with tremendous volatility and there's a lot of geopolitical risk, and we're moving headline to headline. What do you think are the long-term implications of the current conflict? Does that change the way that you think big oil should be thinking or running their business? Or do you stay the course?

Speaker #8: And the original plan was to sell that domestically into the airports in Montreal area a little bit into Ottawa. And then we saw this unique market blowout in the first quarter and continuing into the second quarter where jet fuel became pretty short in certain markets.

Dave Oldreive: Yeah, for sure. We talked about a little bit this already. Retail growth is part of our sales story of where did the volume go. We talked about the export channel that we've maxed out to capture the market and the non-crude inputs into the refineries. All of that really does contribute to the growing sales, but not only growing sales, but growing sales to some of our best channels. Maybe I'll give another example of what we've been doing in the last couple quarters is jet fuel in Montreal. In December of last year, we started making jet fuel in Montreal. That turned out to be pretty good timing to start a jet fuel.

Speaker #8: A team in Montreal was able to work across our really through our whole value chain. To come up with a logistics option and quality certification to export jet.

Rich Kruger: Well, you know, one of the few benefits of getting older is you do see things in perspective a little bit. Obviously, this is just the fundamental nature of a global commodity. We've got ups and downs in the cycle, and we've seen those before. I would say that each of them have a level of uniqueness, and this one has even more uniqueness. I think that the fundamental question is, does it reset? Does there become a geopolitical premium or something on security, you know, of supply? I would also say, though, that in our business, given the long-term capital intensive nature, that I think the best companies over time don't overreact to what could be short-term phenomena, either on the upside or the downside.

Speaker #8: And we were able to sell jet, as Troy mentioned, into the Caribbean. At 10 or $15 a barrel above our alternatives, which was pretty awesome.

Patrick, this is a really cool question in, in the reason it is, is, you know, we spend on these calls and things. We talk so much about crude unit throughput and utilization, and that that's kind of the barometer that we use, but as we all know, it's, there's more to it than that. There, there are other dimensions of ability to add value. So Dave, why don't you talk about as your team has, you know, maximized the utilization of the crude units, what you're also doing and some of the impacts you're having in other areas. Yeah. For sure. And, and we talked about a little bit this already. Um, retail growth is a, is is part of our sales story. Where does the volume go? We talked about the exports, uh, channel that we've, we've maxed out to capture the the, the market, and the, and the non-crew inputs and see the refineries all of that really does contribute to the growing sales. But not only growing sales, but growing sales, do some of our best channels 1 maybe. I'll maybe I'll give another example of of what we've been doing in the last. Uh,

Speaker #8: And then just last week, we certified our jet fuel to sell into Europe. And it has some pretty unique quality requirements. And we sold our first cargo into Rotterdam last week.

Last couple quarters is jet fuel in Montreal.

Rich Kruger: For the first time.

Dave Oldreive: For the first time.

Rich Kruger: For the first time.

Dave Oldreive: We're at lower rates now, but that has the potential to grow it up to 16,000 barrels a day of jet fuel production. The original plan was to sell that domestically into the airports in Montreal area, a little bit into Ottawa. We saw this unique market blow out in the Q1 and continuing into the Q2 where jet fuel became pretty short in certain markets. Team in Montreal was able to work across or through, really through our whole value chain, to come up with a logistics option and quality certification to export jet fuel.

Speaker #8: So that's where some of the sales are going, where we're upgrading the value chain. And using our unique logistics and flexibility to try to capture value.

Speaker #1: Could you just maybe come one other comment too on the what we refer to as more explicitly the secondary units? And I know you're kind of hitting on that, but I guess I'm asking, but I'm kind of answering.

Uh, in December of last year, we started making jet fuel in Montreal, was that turned out turned out to be pretty good timing to, to start for the first time for the first time, um, that we're, we're a lower rates now. But that is the potential to grow up to 16,000 barrels a day of of jet fuel production. And the original plan was to sell that domestically.

Courts and much.

Speaker #1: Is the same priority and focus Dave and Peter's teams have been putting on asset utilization where we've made investments? They don't stop at just the headline units.

Rich Kruger: I think the plan we put out in Investor Day gives us a rock solid value creating plan. Our vision today is that we will march along that plan and continue to deliver on it. If as time goes on, the dust settles, you know, we determine that we're in a different world for a more enduring basis than we perhaps were a few months ago, we'll reexamine those. I think what we shared with Investor Day, we have material upside potential to do more if the world calls for that. I don't mean to make light of the current environment, but at Suncor, we are acutely focused on what we can control and delivering on it. In times like this, I think Troy described it well.

Dave Oldreive: We were able to sell jet, as Troy mentioned, into the Caribbean, at CAD 10 or CAD 15 a barrel above our alternatives, which was pretty awesome. Just last week, we certified our jet fuel to sell into Europe. It has some pretty unique quality requirements, and we sold our first cargo into Rotterdam last week. That's where some of the sales are going, where we're upgrading the value chain and using our unique logistics and flexibility to try to capture value.

Speaker #1: The upgraders, the crude units, they apply into each and every asset. And when there is spare capacity, that can create value. We just don't talk about those smaller assets or smaller components as much, but they create value.

Speaker #1: And they give us optionality and flexibility, whether that's custom cocktails coming out of the base plant or whether that's creating value in the downstream.

Ottawa. Uh, and then we saw this, this unique Market, uh, blowout in uh, in the, in the first quarter. And continuing into the second quarter where jet fuel became, pretty short, in certain markets, uh, team in Montreal was able to work across, uh, or really through our whole value chain, uh, to, uh, to come up with a logistics, option and quality, uh, certification to export chat. And we were able to sell jet as Troy mentioned, uh, into, uh, into the Caribbean, uh, at 10 or 15 dollars a barrel above our, our Alternatives, which was pretty awesome. And then, just last week, um, we certified our jet fuel to sell into Europe and has some pretty unique, uh, quality requirements and we sold our first cargo into roterdam last week, so.

Speaker #1: And this is a part of why I think you see when for at least a few quarters in a row, you see, okay, they kind of they got a little bit of a beat on volumes, but they got more of a beat on value.

Rich Kruger: Just maybe comment, one other comment too on the, you know, what we refer to as more explicitly the secondary units. I know you're kinda hitting on that, but I guess I'm asking but I'm kind of answering, is the same, the same priority and focus Dave and Peter's teams have been putting on asset utilization where we've made investments. They don't stop at just the headline units, the upgraders, the crude units. They apply into each and every asset. When there is spare capacity that can create value, we just don't talk about those smaller assets or smaller components as much, but they create value, and they give us optionality and flexibility, whether that's custom cocktails coming out of the base plant or whether that's creating value in the downstream.

Speaker #1: And that is not done yet.

Speaker #8: Absolutely not.

That's where some of the sales are going where we're upgrading the value chain. And, and using our unique Logistics and flexibility to try to capture value. You just may become a 1, other comment too. On the, you know what we refer to? As more explicitly, the secondary units and I know you're, you're kind of hitting on that but uh, I guess I'm, I'm asking, but I'm kind of answering is the same.

Rich Kruger: You really see the synergistic effects of the asset base and the organization we've built in times like this, whether prices are going up, whether they're going down, or whether they're stable. This company is built to deliver, generate cash in any and all of those environments. Kind of a long answer, Neil, to, you know, very interesting in it. We are continuing to focus on the plans we've already laid out.

Speaker #6: Okay, great. And then I know you just sort of gave your philosophy there in terms of not overreacting to strengthen the price or weakness in the prices.

Speaker #6: But when we take a look at things, net debt in the quarter, even with some working capital bill that call it $6.8 billion, you've got the $10 billion net debt target.

Speaker #6: How do you think about timing and how you sort of release that to the equity shareholder? Or is this that spare capacity between where you are now and $10 billion just sort of a rainy day fund for now?

Neil Mehta: Thanks, Rich Kruger. That's all. Thank you.

The same priority and focus Dave and Peter's teams have been putting on asset utilization, where we've made investments. They don't stop at just the headline units—the upgraders, the crude units—they apply into each and every asset. And when there is spare capacity that can create value, we just don't talk about those smaller assets or smaller components as much.

Operator: One moment for our next question. That will come from the line of Patrick O'Rourke with ATB Capital Markets. Your line is open.

Rich Kruger: This is a part of why I think you see when, you know, for at least a few quarters in a row, you see, okay, they got a little bit of a beat on volumes, but they got more of a beat on value, and that is not done yet.

Patrick O'Rourke: Good morning, guys, congratulations on another strong quarter here. I'm just going back to the refinery business downstream here. Just taking a look through some of the numbers. One thing that stood out to us was the sales to throughput ratio, the sales to refinery output ratio. We've seen sort of a bit of progression of that over the past couple of years, and I realize it'll ebb and flow a bit. What's sort of the outlook for squeezing some incremental value out of this for the rest of the year?

Speaker #1: Troy, you want to comment on that?

Speaker #8: Yeah, sure. Patrick, so obviously, the first thing we're going to look at is what our expected cash flows are for the year. And obviously, those have been significantly impacted by the change in business environment.

Dave Oldreive: Absolutely not.

That you got a little bit of a beat on volumes, but they got more of a beat on value and that is not done yet. Absolutely not.

Speaker #8: But the second thing we do is we look at the sustainability of any change in our buyback. Wanting to offer something to shareholders that others can't replicate, which is consistency.

Patrick O'Rourke: Okay, great. Then, you know, I know you just sort of gave your philosophy there in terms of not overreacting to, you know, strength in the price or weakness in the prices. When we take a look at things, net debt in the quarter, even with some working capital build at, call it CAD 6.8 billion, you've got the CAD 10 billion net debt target. How do you think about timing and how you sort of release that to the equity shareholder? Or is this the, you know, that spare capacity between where you are now and CAD 10 billion just sort of a rainy day fund for now?

Okay, great. And then, you know, I know you just sort of um,

Speaker #8: So while we're absolutely going to be responsive to market events, we do actually want to remove as much variability as we can. Because we've actually removed a lot of variability from our business results.

Rich Kruger: Patrick, this is a really cool question. The reason it is, you know, we spend on these calls and things, we talk so much about crude unit throughput and utilization, and that's kind of the barometer that we use. As we all know, it's there's more to it than that. There are other dimensions of ability to add value. Dave, why don't you talk about as your team has, you know, maximized the utilization of the crude units, what you're also doing and some of the impacts you're having in other areas.

Speaker #8: So it's really just a question of timing and an attempt not to be procyclical.

Speaker #6: Okay. Thanks very much.

Speaker #9: Thank you. One moment for our next question. And that will come from the line of Manav Gupta with UBS. Your line is open.

Rich Kruger: Troy, you wanna comment on that?

Give your philosophy there in terms of not overreacting to to you know strengthen the price or weakness in the prices. But when we take a look at things uh that that in the quarter uh even with some working capital bill that call it 6.8 billion, you've got the 10 billion dollar net debt Target. How do you think about um timing and and how you sort of release that to the equity shareholder? Or is this, you know that spare capacity between where you are now and 10 billion? Just sort of a a rainy day fund for now?

Troy Little: Yeah, sure. Patrick, obviously, the first thing we're gonna look at is what our expected cash flows are for the year, and obviously those have been significantly impacted by the change in business environment. The second thing we do is we look at the sustainability of any change in our buyback, wanting to offer something to shareholders that others can't replicate, which is consistency. While we're absolutely going to be responsive to market events, we do actually want to remove as much variability as we can, because we've actually removed a lot of variability from our business results. It's really just a question of timing and an attempt not to be pro-cyclical.

Speaker #10: Good morning. I wanted to run on the theme of we are seeing a lot of interest from the US refining side on pipelines which are coming out of Canada given the current geopolitical situation.

Dave Oldreive: Yeah, for sure. We talked about a little bit this already. Retail growth is part of our sales story of where did the volume go. We talked about the exports channel that we've maxed out to capture the market and the non-crude inputs into the refineries. All of that really does contribute to the growing sales. Not only growing sales, but growing sales to some of our best channels. Maybe I'll give another example of what we've been doing in the last couple quarters is jet fuel in Montreal. In December of last year, we started making jet fuel in Montreal. As that turned out to be pretty good timing to start jet fuel.

Speaker #10: There is also a news article circulating that there's another pipe project which could have secured minimum level of commitments to move ahead. Can you talk a little bit about the incremental egress capacity that is coming out of Canada and why US refiners would really benefit from getting more Canadian crude into their refineries?

4. Do you want to comment on that? Yeah, sure. Patrick. So the obviously, the first thing we're going to look at is what our expected. Cash flows are for the year. And, and obviously, those have been significantly impacted by the, the change, in business environment. But, but the second thing we do is we look at the sustainability of any change in our buyback, wanting to offer, something to shareholders that others can't replicate, which is consistency.

Speaker #1: Yeah. Thank you. Fundamentally, the US, you just look back over the last 15 years or so, and the whole US energy situation has changed so dramatically, whether it's crude or gas.

So, while we're absolutely going to be responsive to market events, we do actually want to remove as much variability as we can, because we've actually removed a lot of variability from our business results.

So, it's really just a question of timing, and an attempt not to be so cyclical.

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

Rich Kruger: For the first time.

Dave Oldreive: For the first time.

Rich Kruger: For the first time.

Okay, thanks very much.

Operator: Thank you. One moment for our next question. That will come from the line of Manav Gupta with UBS. Your line is open.

Speaker #1: But there's a fundamentally a mismatch in the US of the crude they produce and the crude that they refine. Now, that's not everywhere, but there's a large mismatch.

Dave Oldreive: We're at lower rates now, that has the potential to grow it up to 16,000 barrels a day of jet fuel production. The original plan was to sell that domestically into the airports in Montreal area, a little bit into Ottawa. Then we saw this unique market blow out in the Q1 and continuing into the Q2, where jet fuel became pretty short in certain markets. Team in Montreal was able to work across really through our whole value chain to come up with a logistics option and quality certification to export jet.

For our next question.

And that will come from the line of manav Gupta with UBS. Your line is open.

Manav Gupta: Good morning. I wanted to run on the theme of we are seeing a lot of interest from the US refining side on pipelines which are coming out of Canada, given the current geopolitical situation. There is also news articles circulating that there's another pipe project which could have secured minimum level of commitments to move ahead. Can you talk a little bit about the incremental egress capacity that is coming out of Canada and why US refiners would really benefit from getting more Canadian crude into their refineries?

Speaker #1: A lot of the US refining network has been designed and geared and rebuilt over time for heavy crudes. And that's what we provide. And my personal belief is that North America is a better, safer, stronger, more prosperous region when we optimize across the energy network.

Speaker #1: And just like we've talked about how maximizing the utilization of existing assets, debottlenecking, low-cost expansions, the exact same philosophies apply on these logistics systems.

Dave Oldreive: We were able to sell jet, as Troy mentioned, into the Caribbean, at CAD 10 or 15 a barrel above our alternatives, which was pretty awesome. Just last week, we certified our jet fuel to sell into Europe. It has some pretty unique quality requirements, and we sold our first cargo into Rotterdam last week. That's where some of the sales are going, where we're upgrading the value chain and using our unique logistics and flexibility to try to capture value.

Rich Kruger: Yeah. Neil, thank you. The, you know, fundamentally, the US, you just look back over the last 15 years or so, and the whole US energy situation has changed so dramatically, whether it's crude or gas. There, there's a fundamentally a mismatch in the US of the crude they produce and the crude that they refine. Now, that's not, you know, everywhere, there's a large mismatch. A lot of the US refining network has been designed and geared and, you know, rebuilt over time for heavy crudes, that's what we provide. You know, my personal belief is that North America is a better, safer, stronger, more prosperous, you know, region when we optimize across the energy network.

Good morning. I want to run on the theme of your seeing a lot of interest from the US refining site on pipelines, which are coming out of Canada given the current geopolitical situation. There's also news articles circulating that there's another pipe project, which could have secured, minimum level of commitments, to move ahead. Uh, can you talk a little bit about the incremental? Aggress capacity that is coming out of Canada and why us refiners would really benefit from getting more Canadian crude into their refineries.

Speaker #1: When you can incrementally add a capacity on an existing pipeline, you can typically do that faster and much cheaper than building new. So I think this is a natural evolution.

Speaker #1: I think it's economically rational to keep looking at where we can expand existing capacities. In Canada, we also have that now increasingly to the west with TMX, how can that further debottleneck and get more capacity?

Rich Kruger: Just maybe comment, one other comment too on the, you know, what we refer to as more explicitly the secondary units. I know you're kind of hitting on that, but I guess I'm asking, but I'm kind of answering, is the same, the same priority and focus Dave Oldreive and Peter Zebedee's teams have been putting on asset utilization where we've made investments? They don't stop at just the headline units, the upgraders, the crude units. They apply into each and every asset, and when there is spare capacity that can create value, we just don't talk about those smaller assets or smaller components as much, but they create value and they give us optionality and flexibility, whether that's craft cocktails coming out of the base plant or whether that's creating value in the downstream.

Yeah, you know thank you the you know, fundamentally the the US you just look back over the last 15 years or so and the code of the whole US Energy situation has changed so dramatically whether it's crude or gas. But there's there's a a fundamentally a mismatch in the US of the crude. They produce and the crude that they refined now. That's not, you know everywhere but there's there's a large mismatch, a lot of the

Speaker #1: And those would be the fastest, cheapest ways to move more crude or more products to customers. So we're quite supportive of those initiatives.

Rich Kruger: Just like we've talked about how maximizing the utilization of existing assets, debottlenecking low-cost expansions, the exact same philosophies apply on these logistics systems. When you can incrementally add a capacity on an existing pipeline, you can typically do that faster and much cheaper than building new. I think this is a natural evolution. I think it's economically rational to keep looking at where we can expand existing capacities. In Canada, we also have that now increasingly to the west with like TMX, how can that, you know, further debottleneck and get more capacity? Those would be the fastest, cheapest ways to move more crude or more products to, you know, customers. We're quite supportive of those initiatives.

Speaker #10: Thank you, Mike. Quick follow-up is here on the capture, which was pretty strong. 99%, I think, was flat versus the same quarter last year and probably just like 100 bips or 200 bips lower than the last quarter.

Speaker #10: I'm just trying to understand, as the cracks spike, what are the challenges of keeping capture elevated at higher cracks level? If you could talk about the headwinds and tailwinds to the capture for you as a system.

Speaker #1: Troy briefly commented on that in his comments, but Dave and/or Troy, why don't you both take that one?

Speaker #8: Sure. And I think it's really Manav, it's a summation of some of the comments I've already made. We have been able to be nimble and move quickly to capture market opportunities, not just domestically in Canada, but really globally.

Us refining network is been designed and geared. And, you know, we built over time for heavy Crews and that's what we provide. And, and, you know, my, my personal belief is that North America is a better safer stronger, more prosperous, um, you know, region where we optimize across the energy Network and just like we've talked about how maximizing the, uh, utilization of existing assets debottlenecking lowcost. Expansions, the exact same philosophy is apply on these uh, Logistics systems. When you can incrementally add a capacity on an existing pipeline. You can typically do that faster and much cheaper than building new. So I think this is a natural Evolution. I think it's economically rational to keep looking at where we can expand existing capacities, uh, in Canada. We also have that now increasingly to the West with like TMX.

Dave Oldreive: Absolutely not.

Patrick O'Rourke: Okay, great. You know, I know you just sort of gave your philosophy there in terms of not overreacting to, you know, strength in the price or weakness in the prices. When we take a look at things, Net Debt in the quarter, even with some Working Capital build, call it CAD 6.8 billion, you've got the CAD 10 billion Net Debt target. How do you think about timing and how you sort of release that to the equity shareholder? Or is this, you know, that spare capacity between where you are now and CAD 10 billion just sort of a rainy day fund for now?

Speaker #8: And that is a unique advantage that we have in Suncor. So I see that continuing to be something that we can continue to do and not create a particular headwind.

How can that, you know, further de bottleneck and get more capacity and those would be the fastest cheapest ways to move more crude or more products to, you know, customers. So we're we're quite supportive of those initiatives.

Manav Gupta: Thank you. My quick follow-up is here on the capture, which was pretty strong, 99% I think it was flat versus same quarter last year and probably just like 100 bips or 200 bips lower than the last quarter. I'm just trying to understand as the cracks spike, what are the challenges of keeping capture elevated at higher cracks level? If you could talk about the headwinds and tailwinds to the capture, for you as a system.

Speaker #8: In terms of yields, we've improved our yields. We've improved our rates. I would see that continuing through the quarter. We'll see maybe a little bit of noise around turnarounds as we get in and out of turnarounds in the second quarter and into the third quarter.

Speaker #8: But our ability to capture the market, given our integrated nature, our strong supply and trading business, and our export logistics, I think continues to be really strong.

Rich Kruger: You know, Troy briefly commented on that in his comments. You know, Dave and/or Troy, why don't you both take that one?

Thank you, my quick. Follow-up is here on the capture, which was pretty strong. 99%, I think it was flat versus same quarter last year and probably just like 100 bits or 200 bits slower than the last quarter. I'm just trying to understand as the cracks Spike. What are the challenges of keeping capture elevated at higher cracks level? If you could talk about the headwinds and Tailwinds to the capture for you as a system?

Speaker #1: I would just add, Manav, with respect to pricing responsiveness, that's also where we see an impact. It differs depending on the region and the market we're in.

Rich Kruger: Troy, you wanna comment on that?

Dave Oldreive: Sure. I think it's really, Manav, it's a summation of some of the comments I've already made. We have been able to be nimble and move quickly to capture market opportunities, not just domestically in Canada, but really globally. That is a unique advantage that we have at Suncor. I see that continuing to be something that we can continue to do and not create a particular headwind. In terms of yields, we've improved our yields, we've improved our rates. I would see that continuing through the quarter. We'll see maybe a little bit of noise around turnarounds as we get in and out of turnarounds in Q2 and into Q3.

Dave Oldreive: Yeah, sure. Patrick, the first thing we're gonna look at is what our expected cash flows are for the year, and obviously those have been significantly impacted by the change in business environment. The second thing we do is we look at the sustainability of any change in our buyback. Wanting to offer something to shareholders that others can't replicate, which is consistency. While we're absolutely going to be responsive to market events, we do actually want to remove as much variability as we can, because we've actually removed a lot of variability from our business results. It's really just a question of timing and an attempt not to be pro-cyclical.

Troy Little: Yeah, sure. Patrick, the first thing we're gonna look at is what our expected cash flows are for the year, and obviously those have been significantly impacted by the change in business environment. The second thing we do is we look at the sustainability of any change in our buyback. Wanting to offer something to shareholders that others can't replicate, which is consistency. While we're absolutely going to be responsive to market events, we do actually want to remove as much variability as we can, because we've actually removed a lot of variability from our business results. It's really just a question of timing and an attempt not to be pro-cyclical.

You know, Troy briefly commented on that in his comments. But, you know, Dave and oar Troy. Why don't you go take that 1?

Speaker #1: It also actually is somewhat driven by the speed at which the prices are changing. So if there's a very, very fast reset, then the impact of a delayed response is smaller.

Speaker #1: If there's more of a rateable increase over time or decrease, as can be the case, you'll actually find the impact is different. You also actually have a difference depending on what level of profitability you're at.

Continuing to be something that we can continue to do and not create a particular headwind with. Um,

Speaker #1: When you're at a very high level of profitability, we will find that we do find that our competitors are willing to give away margin to get volume.

Dave Oldreive: Our ability to capture the market, given our integrated nature, our strong supply and trading business, and our export logistics, I think continues to be really strong.

Speaker #1: At lower levels of profitability, they are less willing to do that. So that's where the duration aspect comes into it.

Patrick O'Rourke: Okay. Thanks very much.

Speaker #10: Thank you.

Operator: Thank you. One moment for our next question. That will come from the line of Manav Gupta with UBS. Your line is open.

Troy Little: I would just add, Manav, with respect to pricing responsiveness, that's also where we see an impact that differs depending on the region and the market we're in. It also actually is somewhat driven by the speed at which the prices are changing. If there's a very, very fast reset, then the impact of a delayed response is smaller. If there's more of a ratable increase over time or decrease, as can be the case, you'll actually find the impact is different. You also actually have a difference depending on what level of profitability you're at. When you're at a very high level of profitability, we do find that our competitors are willing to give away margin to get volume. At lower levels of profitability, they are less willing to do that.

Speaker #9: One moment. So our next question. And that will come from the line of Menno Hulshof with TD Cowan. Your line is open.

Speaker #11: Thanks. And good morning, everyone. I just have one follow-up question on your global marketing push, which you've addressed from a number of different angles already.

Speaker #11: But Rich, you mentioned that you moved. If I got the number right, 14 cargoes in Q1. How much of that uptake is repeatable versus slumpier and more opportunistic?

In terms of yields, we've improved our yields. We've improved our rates. Uh, I would see that continuing, uh, through the, uh, through the quarter. We'll see. Maybe a little bit of noise around turnarounds, as we get in and out of turnarounds, uh, in the second quarter and into the third quarter, uh, but our ability to capture the market, uh, given our, our integrated nature, our strong Supply, and trading business, and our export Logistics. I think continues to be really strong. I would, I would just add manav with respect to, uh, pricing responsiveness. That's also where we see an impact that differs depending on the region and the market we're in. It also actually is so much driven by the speed at which the prices are changing. So, if there's a very, very fast reset, then the impact of a delayed response to smaller. If there's there, if there's more of a ratable increase over time or decrease, this can can be the case. Uh, you'll actually find the the impact is different.

Speaker #11: And how would you frame the potential margin uplift from marketing this year relative to last year or even 2024?

Speaker #1: Mano, I think the repeatable question, I think the jury's still out on that. I think it depends on two parts, kind of what the current situation in the Middle East, how and when it resolves itself.

Rich Kruger: Yeah. You know, thank you. You know, fundamentally, the US, you just look back over the last 15 years or so, and the whole US energy situation has changed so dramatically, whether it's crude or gas. There's a fundamentally a mismatch in the US of the crude they produce and the crude that they refine. Now, that's not, you know, everywhere, there's a large mismatch. A lot of the US refining network has been designed and geared and, you know, rebuilt over time for heavy crudes, and that's what we provide. You know, my personal belief is that North America is a better, safer, stronger, more prosperous, you know, region when we optimize across the energy network.

Troy Little: You know, that's where the duration aspect comes into it.

Manav Gupta: Thank you.

You also have a difference depending on what level of profitability you're at. When you're at a very high level of profitability, we will find that our we do find that our competitors are willing to give away margin to get volume at lower levels of profitability. They are less willing to do that. So you know, that's where the duration aspect comes into it.

Thank you.

Speaker #1: That will be part of it. But I think the other thing is that as we've established these trade routes, and that when we can compete and relative to our alternatives or rather relative to a customer's alternatives, you create new markets.

Operator: One moment for our next question. That will come from the line of Menno Hulshof with TD Cowen. Your line is open.

One moment for our next question.

Menno Hulshof: Thanks, and good morning, everyone. I just have one follow-up question on your global marketing push, which you've addressed from a number of different angles already. Rich, you mentioned that you moved, if I got the number right, 14 cargoes in Q1. How much of that uptick is repeatable versus lumpier and more opportunistic? How would you frame the potential margin uplift from marketing this year relative to last year or even 2024?

And that will come from the line of Menow Holo with TD Cowen. Your line is open.

Speaker #1: Markets that we can increasingly or confidently supply. So I think the repeatability is, I don't know that we can answer that explicitly yet, but I do believe we are expanding our marketing reach and capabilities that will endure over a point in time.

Rich Kruger: Just like we've talked about how maximizing the utilization of existing assets, debottlenecking low-cost expansions, the exact same philosophies apply on these logistics systems. When you can incrementally add a capacity on an existing pipeline, you can typically do that faster and much cheaper than building new. I think this is a natural evolution. I think it's economically rational to keep looking at where we can expand existing capacities. In Canada, we also have that now increasingly to the West with like TMX. How can that, you know, further debottleneck and get more capacity? Those would be the fastest, cheapest ways to move more crude or more products to, you know, customers. We're quite supportive of those initiatives.

Speaker #1: Dave, you want to add anything to that?

Rich Kruger: You know, Menno, I think the repeatable question, I think the jury's still out a little on that. I think it depends on two parts, kind of what the current situation in the Middle East, you know, how and when it resolves itself, that will be part of it. I think the other thing is that as we've established these trade routes and that when we can compete and relative to our alternatives or rather relative to a customer's alternatives, you know, you create new markets that we can increasingly or confidently supply. I think the repeatability, it's I don't know that we can answer that explicitly yet, but I do believe we are expanding our marketing reach and capabilities that will endure over a point in time. Dave, you wanna add anything?

Speaker #8: Sure, Rich. I would first confirm that that's absolutely correct. It will depend on the market opportunity. That's where the repeatability may have some noise.

Thanks and good morning everyone. I just have 1 follow-up. Question on your Global Marketing push which you've addressed from a number of different angles already. But but Rich you mentioned that that you moved if I got the number right 14.

Speaker #8: But in terms of ability to capture. If the market opportunity presents itself, we have the logistics. We've actually been growing and debottlenecking our logistics in the same way we've been growing and debottlenecking our refining capacity.

you know, I I know I think the repeatable question, I think the jury is still out a little on that, I think it depends on uh it it 2 parts kind of what

Speaker #8: So we have the logistics. We're preferentially moving logistics particularly diesel exports to the West Coast and jet exports off the East Coast. We have that capability.

Speaker #8: That will only actually continue to grow in terms of capability. The question will be, is the market there to capture it or not? And if it is, we'll do that.

Speaker #1: Mano, maybe I'd add one other comment to that that I think is coming out in a lot of the answers today. An investor day, we had a chart really early in the deck.

The current situation in the Middle East, uh you know how and when it resolves itself that will be part of it. But but I think the other thing is that as we've established these trade routes and that when we can compete and uh relative to our Alternatives or rather to a relative to a customer's alternative, you know, you create new markets markets that we can increasingly or confidently Supply. So I think the repeatability I it's I don't know that we can answer that exclusively yet but I do believe. We are expanding our

Speaker #1: I believe it was titled Rebuilt to Win. And we talked about the integration of all the way kind of the leadership that we provide, the strategy or the strategic focus areas, the structure, and then kind of our organizational culture.

Manav Gupta: Thank you. My quick follow-up is here on the capture, which was pretty strong, 99%. I think it was flat versus the same quarter last year and probably just like 100 bps or 200 bps lower than the last quarter. I'm just trying to understand, as the cracks spike, what are the challenges of keeping capture elevated at higher cracks level? If you could talk about the headwinds and tailwinds to the capture for you as a system.

Dave Oldreive: Yeah.

Rich Kruger: To that?

Dave Oldreive: Sure, Rich. I would first confirm that that's absolutely correct. It will depend on the market opportunity. That's where the repeatability may have some noise. In terms of ability to capture as the market opportunity presents itself, we have the logistics. We've actually been growing and debottlenecking our logistics in the same way we've been growing and debottlenecking our refining capacity. We have the logistics. We're preferentially moving logistics, particularly diesel exports to the West Coast and jet exports off the East Coast. We have that capability. That will only actually continue to grow in terms of capability. The question will be, is the market there to capture it or not? If it is, we'll do that.

Our marketing reach and capabilities that will endure over a point in time. Dave, you want to add anything to that. Sure rich. I would first confirm that that that's absolutely correct. It will depend on the market opportunity.

Speaker #1: What you're seeing is, as all that continues to work together, that it's creating opportunities above and beyond what we could estimate at any point in time.

Rich Kruger: You know, Troy briefly commented on that in his comments. You know, Dave and/or Troy, why don't you both take that one?

Speaker #1: And so our own ambitions continue to rise. And I chuckle when I read some of the reports and things that Suncor is their conservative on this or conservative on that.

Dave Oldreive: Sure. I think it's really, Manav, it's a summation of some of the comments I've already made. We have been able to be nimble and move quickly to capture market opportunities, not just domestically in Canada, but really globally. That is a unique advantage that we have in Suncor. I see that continuing to be something that we can continue to do and not create a particular headwind. In terms of yields, we've improved our yields, we've improved our rates. I would see that continuing through the quarter. We'll see maybe a little bit of noise around turnarounds as we get in and out of turnarounds in Q2 and into Q3.

Speaker #1: That's not how we feel at points in time, but our organization with just crystal clear objectives continues to find ways to add and create more value.

Rich Kruger: You know, Menno, maybe I'd add one other comment to that I think is coming out in a lot of the answers today. On Investor Day, we had a chart really early in the deck, I believe it was titled Rebuilt to Win. We talked about the integration of all the way kind of the leadership that we provide, the strategy or the strategic focus areas, the structure, and then kind of our organizational culture. What you're seeing is, as all that continues to work together, that it's creating opportunities above and beyond what we could estimate at any point in time. Our own ambitions continue to rise. You know, I chuckle when I read some of the reports and things that, you know, Suncor is, you know, they're conservative on this or conservative on that.

Speaker #1: And as we've raised the bar on our operating performance, reduced this variability we've talked about, you can do that. You can talk to customers far afield because when they know you can confidently and consistently provide them product, they're willing to enter into agreements with you where previously you couldn't have entertained because you didn't know if you could hold up your end of the deal.

Dave Oldreive: Our ability to capture the market, given our integrated nature, our strong supply and trading business and our export logistics, I think continues to be really strong.

That's where the repeatability may have some noise, but in terms of ability to capture the market opportunity presents itself, uh we have we have the logistics. We've actually been growing and and debottlenecking our Logistics in the same way. We've been growing and developing like you know refining capacity. So we have the logistics for preferentially moving Logistics to particularly diesel exports to the West Coast and Jet exports off. The east coast, we have that capability that will only actually continue to grow in terms of capability. The question will be the market will, uh, will do that. You know, I just, maybe I'd add 1 other comment that, that, I think I think is coming out in a lot of the answers today, an investor day. We had a chart really early in the deck. I think, I believe it was titled rebuilt to win. And we talked about the the integration of all the way to the leadership that we provide the strategy or the Strategic Focus areas, the structure, and then kind of our organizational culture, what you're seeing is as all that continues to work together that

Speaker #1: So the interrelationship of our underlying operating performance and what that creates for us commercially is a big part of the story here. And I think you're going to continue to hear us share examples of how we're increasingly commercially astute to go along with operationally excellent.

Troy Little: I would just add, Manav, with respect to pricing responsiveness, that's also where we see an impact that differs.

Troy Little: Depending on the region and the market we're in. It also actually is somewhat driven by the speed at which the prices are changing. If there's a very, very fast reset, then the impact of a delayed response is smaller. If there's more of a ratable increase over time or decrease, as can be the case, you'll actually find the impact is different. You also actually have a difference depending on what level of profitability you're at. When you're at a very high level of profitability, we do find that our competitors are willing to give away margin to get volume. At lower levels of profitability, they are less willing to do that. You know, that's where the duration aspect comes into it.

Rich Kruger: That's not how we feel at points in time, but our organization with just crystal clear objectives continues to find ways to add and create more value. As we've raised the bar on our operating performance, reduced this variability we've talked about, you can do that. You can talk to customers far afield because when they know you can confidently and consistently provide them product, they're willing to enter into agreements with you where previously you couldn't have entertained because you didn't know if you could hold up your end of the deal. The interrelationship of our underlying operating performance and what that creates for us commercially, that is a big part of the story here. I think you're gonna continue to hear us share examples of how we're increasingly commercially astute to go along with operationally excellent.

It's creating opportunities above and beyond what we could estimate at any point in time, and so our own ambitions continue to rise. You know, I chuckle when I read some of the reports and things that, you know, Suncor is, you know, they're derivative on this or conservative on that. Um, I—

that's not how we feel at points in time. But our organization

Speaker #11: Thanks, you both. That was very helpful. I'll turn it back.

Speaker #9: I'm showing no further questions at this time. I would now like to turn the conference back to Mr. Adam Albeldawi for any closing remarks.

Speaker #1: 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.

Manav Gupta: Thank you.

Operator: One moment for our next question. That will come from the line of Menno Hulshof with TD Cowen.

Menno Hulshof: Thanks, and good morning, everyone. I just have 1 follow-up question on your global marketing push, which you've addressed from a number of different angles already. Rich, you mentioned that you moved, if I got the number right, 14 cargoes in Q1. How much of that uptake is repeatable versus lumpier and more opportunistic? How would you frame the potential margin uplift from marketing this year relative to last year or even 2024?

With you were previously, you couldn't have obtained because you didn't know if you could hold up your end of the deal. So the inner relationship of our underlying operating performance and what that creates for us, commercially, that is a big part of of the story here and I think you're going to continue to hear us share examples of how we're increasingly commercially astute.

To go along with operationally. Excellent.

Menno Hulshof: Thanks to you both. That was very helpful. I will turn it back.

Thanks to both. That was very helpful. I'll turn it back.

Operator: I'm showing no further questions at this time. I would now like to turn the conference back to Mr. Adam Albeldawi for any closing remarks.

Adam Albeldawi: 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.

I'm showing no further questions at this time. I would now like to turn the conference back to Mr. Adam albeu dawi for any closing remarks.

Rich Kruger: You know, Menno, I think the repeatable question, I think the jury is still out a little on that. I think it depends on two parts, kind of what the current situation in the Middle East, you know, how and when it resolves itself, that will be part of it. I think the other thing is that as we've established these trade routes and that when we can compete and relative to our alternatives or rather relative to a customer's alternatives, you know, you create new markets that we can increasingly or confidently supply. I think the repeatability, I don't know that we can answer that explicitly yet, but I do believe we are expanding our marketing reach and capabilities that will endure over a point in time.

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

Operator, you can end the call.

Thank you for participating, this concludes today's conference. You may now disconnect

[Analyst]: You get up every morning from the alarm clock's warning. Take the 8:15 into the city. Hear the whistle up above the people pushing, people shoving, and the girls who are trying to look pretty. If your train's on time, you can get to work by 9. Just lock your sleeve and jump to get your pay. If you ever get annoyed, look at me, I'm self-employed. I love to work at nothing all day. I'll be taking care of business every day. Taking care of business every way. I've been taking care of business, it's all right. Taking care of business and working overtime, what else? It was easy as fishing, you could be a musician. If you could make a sound watermelons. Get a second-hand guitar, chances are you'll go far. If you get in with the right mandrellos.

Rich Kruger: Dave, you wanna add anything?

Dave Oldreive: Yeah.

Rich Kruger: -to that?

To get up every morning from the long. Take the 81, 15 into the city. There's a little off above, the people, pushing people shoving at the girls. Boom, boom. Try to pretty

And at this reason, you can get to work by night.

If you ever get annoyed, you get me, I'm still employed. I love to work at not that all day, and I've been taking care of business. Every day, making care of business,

I've been taking care of business. It's over—taking care of business—and I'm working overtime. What else?

Rich Kruger: You know, Menno, maybe I'd add one other comment to that I think is coming out in a lot of the answers today. On Investor Day, we had a chart really early in the deck. I believe it was titled Rebuilt to Win. We talked about the integration of all the way, the leadership that we provide, the strategy or the strategic focus areas, the structure, then kind of our organizational culture. What you're seeing is as all that continues to work together, that it's creating opportunities above and beyond what we could estimate at any point in time. Our own ambitions continue to rise. You know, I chuckle when I read some of the reports and things that, you know, Suncor is, you know, they're conservative on this or conservative on that.

Yeah.

[Analyst]: People see you having fun, just a-lyin' in the sun. Tell them that you like it this way. It's the work that we avoid, and we're all self-employed. We love to work at nothing all day. We be taking care of-

Fine. Just a lying in the sun. Tell them that you like it this way, it's the work that we avoid and we're all self-employed. We love to work and not that all day.

And we make it.

Rich Kruger: That's not how we feel at points in time. Our organization, with just crystal clear objectives, continues to find ways to add and create more value. As we've raised the bar on our operating performance, reduced this variability we've talked about, you can do that. You can talk to customers far afield because when they know you can confidently and consistently provide them product, they're willing to enter into agreements with you, where previously you couldn't have entertained because you didn't know if you could hold up your end of the deal. The interrelationship of our underlying operating performance and what that creates for us commercially, that is a big part of the story here. I think you're gonna continue to hear us share examples of how we're increasingly commercially astute to go along with operationally excellent.

Menno Hulshof: Thanks to you both. That was very helpful. I'll turn it back.

Operator: I'm showing no further questions at this time. I would now like to turn the conference back to Mr. Adam Albeldawi for any closing remarks.

Adam Albeldawi: 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.

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

Mm.