Canada's ExxonMobil

Chevron for Canadian oil sands

• Crude Oil and Bitumen: Suncor extracts and produces crude oil and bitumen from various onshore and offshore operations.
• Refined Petroleum Products: The company refines crude oil into a wide range of petroleum products, including gasoline, diesel, and jet fuel, for various customers.
• Petrochemical Products: Suncor also produces and markets petrochemicals, which are derived from petroleum and used in various industries.
• Oil and Gas Exploration & Production: Suncor engages in the exploration, acquisition, development, and production of petroleum resources globally.
• Oil Refining: The company operates refineries that process crude oil and intermediate feedstocks into diverse petroleum and petrochemical products.
• Petroleum Product Marketing: Suncor markets its refined petroleum and petrochemical products to retail, commercial, and industrial customers, notably under the Petro-Canada brand.
• Wind Power Generation: The company operates wind farms to generate and market renewable electricity.
• Energy Trading: Suncor actively markets and trades in crude oil, natural gas, byproducts, refined products, and power commodities.

Suncor Energy Inc. serves a diverse customer base, primarily through its Refining and Marketing segment. While it sells crude oil and other energy products to a variety of commercial and industrial entities, its direct customer engagement can be categorized into the following three main groups:

1. Individual Consumers (Retail): Suncor markets refined petroleum products, such as gasoline and diesel, directly to individual consumers primarily under its Petro-Canada brand through its extensive network of retail service stations across Canada. These customers purchase fuel for personal vehicles and convenience store items.
2. Commercial Customers: Suncor supplies refined products, including various fuels and lubricants, to a wide range of commercial businesses. These customers typically operate fleets (e.g., trucking, aviation, marine, public transit), use fuel for agricultural machinery, or require petroleum products for their daily business operations.
3. Industrial Customers: The company provides refined petroleum products, such as fuels and feedstock, to large industrial operations. These customers include various manufacturing plants, mining operations, and other heavy industries that require significant quantities of energy products for power generation, heating, or as raw materials in their production processes.

Rich Kruger, President and Chief Executive Officer

Rich Kruger is the President and Chief Executive Officer of Suncor, a position he assumed in April 2023. He brings nearly 40 years of experience in the energy industry, including extensive work in the Canadian oil sands. Prior to joining Suncor, he served as Chairman, President, and CEO of Imperial Oil Limited from 2013 until his retirement in December 2019. Kruger also spent 39 years with ExxonMobil Corporation and its predecessor companies, holding various upstream and downstream assignments with responsibilities across the United States, the former Soviet Union, the Middle East, Africa, and Southeast Asia. He was previously Vice President of ExxonMobil Corporation and president of ExxonMobil Production Company. He was recruited out of retirement to lead Suncor, prioritizing safety, reliability, and cost discipline, and implementing measures that included workforce reductions. He holds a mechanical engineering degree from the University of Minnesota and a Master of Business Administration from the University of Houston.

Troy Little, Chief Financial Officer

Troy Little is the Chief Financial Officer of Suncor, effective November 1, 2025. He was previously the Senior Vice President, External Affairs. In his role as CFO, he is responsible for all financial functions, including controllers, treasury, tax, internal audit, enterprise risk management, and information technology. Little holds Chartered Professional Accountant and Chartered Financial Analyst designations and possesses over 25 years of financial experience in investment banking, equity research, accounting, and financial management.

Peter Zebedee, Executive Vice President, Upstream

Peter Zebedee serves as the Executive Vice President, Upstream (also referred to as Oil Sands). He is responsible for all oil sands operations, including mining, in situ, drilling, upgrading, and East Coast operations. Zebedee has a strong background in engineering and operations management, having held leadership roles across various aspects of the oil and gas industry.

Dave Oldreive, Executive Vice President, Downstream

Dave Oldreive is the Executive Vice President, Downstream, having joined Suncor on June 19, 2023. He brings nearly 30 years of energy industry experience, including extensive expertise in Canadian refining and a deep understanding of the Canadian market. Oldreive is recognized for driving operational excellence and enhancing competitiveness, as well as for transforming culture and leadership. His career includes various roles in engineering, operations, supply, and corporate functions with ExxonMobil and Imperial Oil in Canada, the United States, and Singapore. Prior to Suncor, he was the head of ExxonMobil's Baton Rouge refinery and previously the refinery manager for Imperial Oil's Strathcona refinery. He holds a mechanical engineering degree from Dalhousie University and a Master of Business Administration from Saint Mary's University.

Shelley Powell, Senior Vice President, Operational Improvement & Support Services

Shelley Powell is the Senior Vice President, Operational Improvement & Support Services. Her responsibilities include corporate environmental, health & safety, supply chain, operational risk management, technical & operations support, major capital projects, central development, technology development, governance, and sustainability. Powell has over two decades of experience in the energy sector, with extensive background in operations and leadership roles, and a foundation in chemical engineering.

The key risks to Suncor Energy (SU) are:

1. Commodity Price Volatility: Suncor Energy's profitability is highly susceptible to fluctuations in global crude oil and natural gas prices. Despite its integrated business model, which includes refining and marketing, significant drops in commodity prices directly impact its upstream oil sands segment, a core part of its operations. The capital-intensive nature of oil sands production means these operations are particularly sensitive to sustained periods of low oil prices.
2. Climate Change Policy and Environmental Regulations: As a major producer in the carbon-intensive oil sands, Suncor faces substantial risks from evolving climate change policies and environmental regulations. Oil sands extraction generates higher greenhouse gas emissions compared to conventional oil production. Stricter environmental policies, carbon pricing mechanisms, and increasing ESG-driven capital constraints could lead to higher operating costs, limit expansion opportunities, and potentially result in "stranded assets" if global decarbonization accelerates and reduces long-term oil demand.
3. Operational Risks, Reliability, and Safety: Suncor's extensive oil sands mining, in-situ operations, and refining processes inherently carry significant operational risks. Historically, the company has faced challenges with operational reliability and its safety record. While management has focused on improvements, the complexity of these operations can lead to production shortfalls, increased costs from maintenance and incidents, and damage to its reputation. Furthermore, climate-related extreme weather events pose a direct operational threat, potentially forcing shutdowns and causing substantial revenue losses.

The accelerating global energy transition, characterized by the rapid adoption of electric vehicles and increasing deployment of renewable energy sources, poses a clear threat by significantly diminishing long-term demand for Suncor's core fossil fuel products (crude oil, refined petroleum). This shift, supported by evolving government policies and decreasing alternative energy costs, risks rendering a substantial portion of Suncor's high-carbon intensity oil sands reserves and refining infrastructure as stranded assets.

Addressable Markets for Suncor Energy's Main Products and Services:

For Suncor Energy (SU), the following are expected drivers of future revenue growth over the next 2-3 years:

1. Increased Upstream Production: Suncor Energy anticipates growth in its upstream production, with a target to increase output by approximately 100,000 barrels per day (bbls/d) from 2023 to 2026. This growth is driven by continued strong performance from existing assets, 100% ownership of Fort Hills, and a full year of production from Terra Nova. Additionally, increased Synthetic Crude Oil (SCO) production at Base Plant is expected due to a shorter maintenance schedule.
2. Enhanced Refining and Marketing Performance: Suncor aims for high refining utilization, with 2024 corporate guidance indicating 92% to 96% utilization. The company's integrated structure, which includes extracting, refining, and retailing crude oil, enables optimized operations and reduced breakeven costs. Higher utilization rates and improved margin capture across its downstream assets are expected to contribute to revenue growth.
3. Operational Efficiency and Cost Reductions: A key priority for Suncor is delivering improved shareholder returns through focused cost reductions and increased operational efficiency. The company has demonstrated success in reducing its breakeven cost, with a US$10/barrel reduction in 2025 compared to 2023. These efficiency gains and cost controls are anticipated to translate into stronger cash flow generation and improved profitability, thereby boosting revenue.
4. Strategic Capital Investments: Suncor's disciplined capital investment program is designed to enhance competitiveness and deliver long-term value. Planned investments for 2024 include mining fleet upgrades at Fort Hills and Base Mine, the replacement of Upgrader 1 coke drums at Base Plant, and the completion of the Base Plant co-generation project. Further development of the West White Rose and Syncrude Mildred Lake West Mine Extension projects are also part of these strategic investments, contributing to future production capacity and efficiency.

Share Repurchases

• Suncor Energy plans to repurchase C$3.3 billion in 2026, with monthly repurchases set at C$275 million.
• Between March 3, 2025, and February 27, 2026, Suncor repurchased 54,150,911 shares for approximately C$3.075 billion under its Normal Course Issuer Bid (NCIB).
• The company renewed its NCIB to purchase up to 118,700,000 common shares, representing about 10% of its public float, between March 3, 2026, and March 2, 2027.

Inbound Investments

• BlackRock acquired a 5.20% stake in Suncor, totaling 63.6 million shares for approximately $2.3 billion, in 2024 and 2025.
• AIMCo (Alberta Investment Management Corporation) increased its stake by 43.3%, holding nearly 4 million shares, in 2024 and 2025.

Outbound Investments

• In October 2022, Suncor sold its entire wind and solar portfolio to ATCO for C$730 million, marking a strategic pivot away from distributed energy resources.
• Suncor formed the Pathways Alliance with five other major energy firms to develop large-scale carbon capture projects.
• The company has committed C$2.1 billion towards carbon capture technologies.

Capital Expenditures

• Expected capital expenditures for 2026 are between C$5.6 billion and C$5.8 billion (US$4.1 billion and US$4.24 billion), which is a decrease from the 2025 forecast of C$6.1 billion to C$6.3 billion.
• Major economic investments planned for 2026 include in situ well pads, Mildred Lake East, West White Rose, Fort Hills North Pit development, and the Petro-Canada retail network optimization plan.
• Capital spending in 2025 was C$5.7 billion, outperforming the midpoint of the original guidance by C$540 million.