Suncor Energy (SU) 6-K Current report (foreign)

 Exhibit 99.2​

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

​	Three months ended June 30				Six months ended June 30
($ millions)	2024		2023		2024		2023
Revenues and Other Income	​	​	​	​	​	​	​	​
Gross revenues (note 4)	​	14 014	​	12 434	​	27 319	​	24 706
Less: royalties	​	(1 125)	​	(715)	​	(2 049)	​	(1 073)
Other income (loss) (note 5)	​	151	​	(3)	​	299	​	339
​	​	13 040	​	11 716	​	25 569	​	23 972
Expenses	​	​	​	​	​	​	​	​
Purchases of crude oil and products	​	5 162	​	4 377	​	9 520	​	8 446
Operating, selling and general	​	3 153	​	3 440	​	6 593	​	6 864
Transportation and distribution	​	438	​	441	​	848	​	832
Depreciation, depletion, amortization and impairment	​	1 684	​	1 577	​	3 312	​	3 093
Exploration	​	15	​	7	​	74	​	49
Loss (gain) on disposal of assets (note 11)	​	1	​	(632)	​	(2)	​	(946)
Financing expenses (note 7)	​	404	​	155	​	821	​	569
​	​	10 857	​	9 365	​	21 166	​	18 907
Earnings before Income Taxes	​	2 183	​	2 351	​	4 403	​	5 065
Income Tax Expense (Recovery)	​	​	​	​	​	​	​	​
Current	​	781	​	549	​	1 430	​	1 287
Deferred	​	(166)	​	(77)	​	(205)	​	(153)
​	​	615	​	472	​	1 225	​	1 134
Net Earnings	​	1 568	​	1 879	​	3 178	​	3 931
Other Comprehensive Income	​	​	​	​	​	​	​	​
Items That May be Subsequently Reclassified to Earnings:	​	​	​	​	​	​	​	​
Foreign currency translation adjustment	​	11	​	30	​	(5)	​	82
Items That Will Not be Reclassified to Earnings:	​	​	​	​	​	​	​	​
Actuarial gain (loss) on employee retirement benefit plans, net of income taxes (note 13)	​	91	​	(17)	​	490	​	25
Other Comprehensive Income	​	102	​	13	​	485	​	107
Total Comprehensive Income	​	1 670	​	1 892	​	3 663	​	4 038
Per Common Share (dollars) (note 8)	​	​	​	​	​	​	​	​
Net earnings – basic	​	1.22	​	1.44	​	2.47	​	2.98
Net earnings – diluted	​	1.22	​	1.43	​	2.47	​	2.98
Cash dividends	​	0.55	​	0.52	​	1.10	​	1.04

See accompanying notes to the condensed interim consolidated financial statements.

2024 Second Quarter   Suncor Energy Inc.   41

CONSOLIDATED BALANCE SHEETS

(unaudited)

($ millions)	June 30 2024		December 31 2023
Assets	​	​	​	​
Current assets	​	​	​	​
Cash and cash equivalents	​	2 374	​	1 729
Accounts receivable	​	6 749	​	5 735
Inventories	​	5 530	​	5 365
Income taxes receivable	​	667	​	980
Total current assets	​	15 320	​	13 809
Property, plant and equipment, net	​	67 710	​	67 650
Exploration and evaluation	​	1 742	​	1 758
Other assets	​	2 009	​	1 710
Goodwill and other intangible assets	​	3 498	​	3 528
Deferred income taxes	​	109	​	84
Total assets	​	90 388	​	88 539
Liabilities and Shareholders’ Equity	​	​	​	​
Current liabilities	​	​	​	​
Short-term debt	​	38	​	494
Current portion of long-term lease liabilities	​	435	​	348
Accounts payable and accrued liabilities	​	9 121	​	7 731
Current portion of provisions	​	904	​	983
Income taxes payable	​	19	​	41
Total current liabilities	​	10 517	​	9 597
Long-term debt	​	11 390	​	11 087
Long-term lease liabilities	​	3 703	​	3 478
Other long-term liabilities	​	1 224	​	1 488
Provisions (note 12)	​	11 068	​	11 610
Deferred income taxes	​	7 985	​	8 000
Equity	​	44 501	​	43 279
Total liabilities and shareholders’ equity	​	90 388	​	88 539

See accompanying notes to the condensed interim consolidated financial statements.

42   2024 Second Quarter   Suncor Energy Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

​	Three months ended June 30				Six months ended June 30
($ millions)	2024		2023		2024		2023
Operating Activities	​	​	​	​	​	​	​	​
Net Earnings	​	1 568	​	1 879	​	3 178	​	3 931
Adjustments for:	​	​	​	​	​	​	​	​
Depreciation, depletion, amortization and impairment	​	1 684	​	1 577	​	3 312	​	3 093
Deferred income tax recovery	​	(166)	​	(77)	​	(205)	​	(153)
Accretion (note 7)	​	149	​	134	​	294	​	267
Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt (note 7)	​	103	​	(244)	​	323	​	(241)
Change in fair value of financial instruments and trading inventory	​	14	​	46	​	44	​	76
Loss (gain) on disposal of assets (note 11)	​	1	​	(632)	​	(2)	​	(946)
Share-based compensation	​	98	​	19	​	(276)	​	(184)
Settlement of decommissioning and restoration liabilities	​	(112)	​	(72)	​	(235)	​	(205)
Other	​	58	​	25	​	133	​	19
Decrease (increase) in non-cash working capital	​	432	​	148	​	50	​	(1 815)
Cash flow provided by operating activities	​	3 829	​	2 803	​	6 616	​	3 842
Investing Activities	​	​	​	​	​	​	​	​
Capital and exploration expenditures	​	(2 047)	​	(1 613)	​	(3 358)	​	(2 699)
Capital expenditures on assets held for sale	​	—	​	(66)	​	—	​	(108)
Acquisitions, net of cash acquired (note 11)	​	—	​	—	​	—	​	(712)
Proceeds from disposal of assets (note 11)	​	15	​	1 092	​	23	​	1 829
Other investments	​	(2)	​	(28)	​	(3)	​	(47)
Decrease in non-cash working capital	​	246	​	348	​	215	​	229
Cash flow used in investing activities	​	(1 788)	​	(267)	​	(3 123)	​	(1 508)
Financing Activities	​	​	​	​	​	​	​	​
Net (decrease) increase in short-term debt	​	(688)	​	446	​	(467)	​	1 408
Repayment of long-term debt	​	—	​	—	​	—	​	(5)
Lease liability payments	​	(107)	​	(82)	​	(205)	​	(164)
Issuance of common shares under share option plans	​	177	​	20	​	307	​	56
Repurchase of common shares (note 9)	​	(825)	​	(684)	​	(1 118)	​	(1 558)
Distributions relating to non-controlling interest	​	(4)	​	(4)	​	(8)	​	(8)
Dividends paid on common shares	​	(698)	​	(679)	​	(1 400)	​	(1 369)
Cash flow used in financing activities	​	(2 145)	​	(983)	​	(2 891)	​	(1 640)
(Decrease) Increase in Cash and Cash Equivalents	​	(104)	​	1 553	​	602	​	694
Effect of foreign exchange on cash and cash equivalents	​	14	​	(71)	​	43	​	(64)
Cash and cash equivalents at beginning of period	​	2 464	​	1 128	​	1 729	​	1 980
Cash and Cash Equivalents at End of Period	​	2 374	​	2 610	​	2 374	​	2 610
Supplementary Cash Flow Information	​	​	​	​	​	​	​	​
Interest paid	​	316	​	303	​	452	​	462
Income taxes paid	​	959	​	645	​	984	​	1 876

See accompanying notes to the condensed interim consolidated financial statements.

2024 Second Quarter   Suncor Energy Inc.   43

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(unaudited)

($ millions)	Share Capital		Contributed Surplus		Accumulated Other Comprehensive Income		Retained Earnings		Total		Number of Common Shares (thousands)
At December 31, 2022	​	22 257	​	571	​	974	​	15 565	​	39 367	​	1 337 471
Net earnings	​	—	​	—	​	—	​	3 931	​	3 931	​	—
Foreign currency translation adjustment	​	—	​	—	​	82	​	—	​	82	​	—
Actuarial gain on employee retirement benefit plans, net of income taxes of $9	​	—	​	—	​	—	​	25	​	25	​	—
Total comprehensive income	​	—	​	—	​	82	​	3 956	​	4 038	​	—
Issued under share option plans	​	56	​	—	​	—	​	—	​	56	​	1 386
Repurchase of common shares for cancellation (note 9)	​	(615)	​	—	​	—	​	(943)	​	(1 558)	​	(36 740)
Change in liability for share repurchase commitment	​	104	​	—	​	—	​	172	​	276	​	—
Share-based compensation	​	—	​	9	​	—	​	—	​	9	​	—
Dividends paid on common shares	​	—	​	—	​	—	​	(1 369)	​	(1 369)	​	—
At June 30, 2023	​	21 802	​	580	​	1 056	​	17 381	​	40 819	​	1 302 117
At December 31, 2023	​	21 661	​	569	​	1 048	​	20 001	​	43 279	​	1 290 100
Net earnings	​	—	​	—	​	—	​	3 178	​	3 178	​	—
Foreign currency translation adjustment	​	—	​	—	​	(5)	​	—	​	(5)	​	—
Actuarial gain on employee retirement benefit plans, net of income taxes of $155 (note 13)	​	—	​	—	​	—	​	490	​	490	​	—
Total comprehensive income	​	—	​	—	​	(5)	​	3 668	​	3 663	​	—
Issued under share option plans	​	351	​	(48)	​	—	​	—	​	303	​	7 728
Repurchase of common shares for cancellation(1) (note 9)	​	(372)	​	—	​	—	​	(761)	​	(1 133)	​	(21 999)
Change in liability for share repurchase commitment (note 9)	​	(60)	​	—	​	—	​	(158)	​	(218)	​	—
Share-based compensation (note 6)	​	—	​	7	​	—	​	—	​	7	​	—
Dividends paid on common shares	​	—	​	—	​	—	​	(1 400)	​	(1 400)	​	—
At June 30, 2024	​	21 580	​	528	​	1 043	​	21 350	​	44 501	​	1 275 829

(1)

Includes $15 million of taxes on share repurchases for the six months ended June 30, 2024.

See accompanying notes to the condensed interim consolidated financial statements.

44   2024 Second Quarter   Suncor Energy Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. REPORTING ENTITY AND DESCRIPTION OF THE BUSINESS

Suncor is an integrated energy company headquartered in Calgary, Alberta, Canada. Suncor’s operations include oil sands development, production and upgrading; offshore oil production; petroleum refining in Canada and the U.S.; and the company’s Petro-Canada™ retail and wholesale distribution networks (including Canada’s Electric Highway™, a coast-to-coast network of fast-charging electric vehicle stations). Suncor is developing petroleum resources while advancing the transition to a low-emissions future through investments in power and renewable fuels. Suncor also conducts energy trading activities focused primarily on the marketing and trading of crude oil, natural gas, byproducts, refined products and power. Suncor’s common shares (symbol: SU) are listed on the TSX and NYSE.

The address of the company’s registered office is 150 – 6th Avenue S.W., Calgary, Alberta, Canada, T2P 3E3.

2. BASIS OF PREPARATION

(a) Statement of Compliance

These condensed interim consolidated financial statements are based on International Financial Reporting Standards as issued by the International Accounting Standards Board, and have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting. They are condensed as they do not include all of the information required for full annual financial statements, and they should be read in conjunction with the audited consolidated financial statements of the company for the year ended December 31, 2023.

(b) Basis of Measurement

The consolidated financial statements are prepared on a historical cost basis except as detailed in the accounting policies disclosed in the company’s audited consolidated financial statements for the year ended December 31, 2023.

(c) Functional Currency and Presentation Currency

These consolidated financial statements are presented in Canadian dollars, which is the company’s functional currency.

(d) Use of Estimates, Assumptions and Judgments

The timely preparation of financial statements requires that management make estimates and assumptions and use judgment. Accordingly, actual results may differ from estimated amounts as future confirming events occur. Significant estimates and judgment used in the preparation of the financial statements are described in the company’s audited consolidated financial statements for the year ended December 31, 2023.

(e) Income Taxes

The company recognizes the impacts of income tax rate changes in earnings in the period that the applicable rate change is enacted or substantively enacted.

3. NEW IFRS STANDARDS

(a) Adoption of New IFRS Standards

In October 2022, the IASB issued Non-current Liabilities with Covenants (Amendments to IAS 1). The amendments improved the information an entity provides when its right to defer settlement of a liability for at least twelve months is subject to compliance with covenants. The company adopted the amendments on the effective date January 1, 2024, and there was no material impact to the consolidated financial statements as a result of the initial application.

In September 2022, the IASB issued Lease Liability in a Sale and Leaseback (Amendments to IFRS 16). The amendments add subsequent measurement requirements for sale and leaseback transactions. The company adopted the amendments on the effective date January 1, 2024, and there was no impact to the consolidated financial statements as a result of the initial application.

2024 Second Quarter   Suncor Energy Inc.   45

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(b) Recently Announced Accounting Pronouncements

In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements which will replace IAS 1 Presentation of Financial Statements. The new standard will establish a revised structure for the consolidated statements of comprehensive income and improve comparability across entities and reporting periods. IFRS 18 is effective for annual periods beginning on or after January 1, 2027. The standard will be applied retroactively, with certain transition provisions. The company is currently evaluating the impact of adopting IFRS 18 on the consolidated financial statements.

4. SEGMENTED INFORMATION

The company’s operating segments are reported based on the nature of their products and services and management responsibility.

Intersegment sales of crude oil and natural gas are accounted for at market values and are included, for segmented reporting, in revenues of the segment making the transfer and expenses of the segment receiving the transfer. Intersegment amounts are eliminated on consolidation.

Three months ended June 30	Oil Sands				Exploration and Production				Refining and Marketing				Corporate and Eliminations				Total
($ millions)	2024		2023		2024		2023		2024		2023		2024		2023		2024		2023
Revenues and Other Income	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Gross revenues	​	5 319	​	4 365	​	673	​	813	​	8 022	​	7 258	​	—	​	(2)	​	14 014	​	12 434
Intersegment revenues	​	2 113	​	1 813	​	—	​	—	​	35	​	14	​	(2 148)	​	(1 827)	​	—	​	—
Less: Royalties	​	(1 001)	​	(599)	​	(124)	​	(116)	​	—	​	—	​	—	​	—	​	(1 125)	​	(715)
Operating revenues, net of royalties	​	6 431	​	5 579	​	549	​	697	​	8 057	​	7 272	​	(2 148)	​	(1 829)	​	12 889	​	11 719
Other income (loss)	​	72	​	(5)	​	(5)	​	(22)	​	43	​	13	​	41	​	11	​	151	​	(3)
​	​	6 503	​	5 574	​	544	​	675	​	8 100	​	7 285	​	(2 107)	​	(1 818)	​	13 040	​	11 716
Expenses	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Purchases of crude oil and products	​	696	​	361	​	—	​	—	​	6 519	​	5 797	​	(2 053)	​	(1 781)	​	5 162	​	4 377
Operating, selling and general	​	2 278	​	2 299	​	120	​	143	​	603	​	604	​	152	​	394	​	3 153	​	3 440
Transportation and distribution	​	292	​	295	​	24	​	21	​	132	​	135	​	(10)	​	(10)	​	438	​	441
Depreciation, depletion, amortization and impairment	​	1 235	​	1 183	​	184	​	142	​	236	​	224	​	29	​	28	​	1 684	​	1 577
Exploration	​	13	​	4	​	2	​	3	​	—	​	—	​	—	​	—	​	15	​	7
(Gain) loss on disposal of assets	​	—	​	—	​	—	​	(607)	​	—	​	(7)	​	1	​	(18)	​	1	​	(632)
Financing expenses (income)	​	197	​	165	​	18	​	17	​	17	​	14	​	172	​	(41)	​	404	​	155
​	​	4 711	​	4 307	​	348	​	(281)	​	7 507	​	6 767	​	(1 709)	​	(1 428)	​	10 857	​	9 365
Earnings (Loss) before Income Taxes	​	1 792	​	1 267	​	196	​	956	​	593	​	518	​	(398)	​	(390)	​	2 183	​	2 351
Income Tax Expense (Recovery)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Current	​	—	​	—	​	—	​	—	​	—	​	—	​	—	​	—	​	781	​	549
Deferred	​	—	​	—	​	—	​	—	​	—	​	—	​	—	​	—	​	(166)	​	(77)
​	​	—	​	—	​	—	​	—	​	—	​	—	​	—	​	—	​	615	​	472
Net Earnings	​	—	​	—	​	—	​	—	​	—	​	—	​	—	​	—	​	1 568	​	1 879
Capital and Exploration Expenditures(1)	​	1 437	​	1 043	​	229	​	182	​	375	​	377	​	6	​	11	​	2 047	​	1 613

(1)

Excludes capital expenditures related to assets previously held for sale of  $66 million for the three months ended June 30, 2023.

46   2024 Second Quarter   Suncor Energy Inc.

Six months ended June 30	Oil Sands				Exploration and Production				Refining and Marketing				Corporate and Eliminations				Total
($ millions)	2024		2023		2024		2023		2024		2023		2024		2023		2024		2023
Revenues and Other Income	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Gross revenues	​	10 257	​	8 749	​	1 438	​	1 547	​	15 625	​	14 414	​	(1)	​	(4)	​	27 319	​	24 706
Intersegment revenues	​	4 097	​	3 496	​	—	​	—	​	45	​	31	​	(4 142)	​	(3 527)	​	—	​	—
Less: Royalties	​	(1 783)	​	(871)	​	(266)	​	(202)	​	—	​	—	​	—	​	—	​	(2 049)	​	(1 073)
Operating revenues, net of royalties	​	12 571	​	11 374	​	1 172	​	1 345	​	15 670	​	14 445	​	(4 143)	​	(3 531)	​	25 270	​	23 633
Other income	​	127	​	110	​	1	​	10	​	117	​	169	​	54	​	50	​	299	​	339
​	​	12 698	​	11 484	​	1 173	​	1 355	​	15 787	​	14 614	​	(4 089)	​	(3 481)	​	25 569	​	23 972
Expenses	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Purchases of crude oil and products	​	1 325	​	769	​	—	​	—	​	12 107	​	11 151	​	(3 912)	​	(3 474)	​	9 520	​	8 446
Operating, selling and general	​	4 760	​	4 720	​	261	​	276	​	1 221	​	1 254	​	351	​	614	​	6 593	​	6 864
Transportation and distribution	​	584	​	565	​	49	​	42	​	235	​	244	​	(20)	​	(19)	​	848	​	832
Depreciation, depletion, amortization and impairment	​	2 420	​	2 321	​	354	​	269	​	480	​	444	​	58	​	59	​	3 312	​	3 093
Exploration	​	70	​	39	​	4	​	10	​	—	​	—	​	—	​	—	​	74	​	49
Gain on disposal of assets	​	—	​	—	​	—	​	(608)	​	—	​	(18)	​	(2)	​	(320)	​	(2)	​	(946)
Financing expenses	​	376	​	326	​	35	​	35	​	37	​	28	​	373	​	180	​	821	​	569
​	​	9 535	​	8 740	​	703	​	24	​	14 080	​	13 103	​	(3 152)	​	(2 960)	​	21 166	​	18 907
Earnings (Loss) before Income Taxes	​	3 163	​	2 744	​	470	​	1 331	​	1 707	​	1 511	​	(937)	​	(521)	​	4 403	​	5 065
Income Tax Expense (Recovery)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Current	​	—	​	—	​	—	​	—	​	—	​	—	​	—	​	—	​	1 430	​	1 287
Deferred	​	—	​	—	​	—	​	—	​	—	​	—	​	—	​	—	​	(205)	​	(153)
​	​	—	​	—	​	—	​	—	​	—	​	—	​	—	​	—	​	1 225	​	1 134
Net Earnings	​	—	​	—	​	—	​	—	​	—	​	—	​	—	​	—	​	3 178	​	3 931
Capital and Exploration Expenditures(1)	​	2 432	​	1 853	​	371	​	320	​	543	​	502	​	12	​	24	​	3 358	​	2 699

(1)

Excludes capital expenditures related to assets previously held for sale of  $108 million for the six months ended June 30, 2023.

2024 Second Quarter   Suncor Energy Inc.   47

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Disaggregation of Revenue from Contracts with Customers and Intersegment Revenue

The company’s revenues are from the following major commodities:

Three months ended June 30

2024

2023

($ millions)

North America

International

Total

North America

International

Total

Oil Sands

​

​

​

​

​

​

​

​

​

​

​

​

Synthetic crude oil and diesel

​

4 614

​

—

​

4 614

​

4 732

​

—

​

4 732

Bitumen

​

2 818

​

—

​

2 818

​

1 446

​

—

​

1 446

​

​

7 432

​

—

​

7 432

​

6 178

​

—

​

6 178

Exploration and Production

​

​

​

​

​

​

​

​

​

​

​

​

Crude oil and natural gas liquids

​

437

​

236

​

673

​

549

​

263

​

812

Natural gas

​

—

​

—

​

—

​

—

​

1

​

1

​

​

437

​

236

​

673

​

549

​

264

​

813

Refining and Marketing

​

​

​

​

​

​

​

​

​

​

​

​

Gasoline

​

3 519

​

—

​

3 519

​

3 343

​

—

​

3 343

Distillate

​

3 813

​

—

​

3 813

​

3 223

​

—

​

3 223

Other

​

725

​

—

​

725

​

706

​

—

​

706

​

​

8 057

​

—

​

8 057

​

7 272

​

—

​

7 272

Corporate and Eliminations

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(2 148)

​

—

​

(2 148)

​

(1 829)

​

—

​

(1 829)

Total Revenue from Contracts with Customers

​

13 778

​

236

​

14 014

​

12 170

​

264

​

12 434

Six months ended June 30

2024

2023

($ millions)

North America

International

Total

North America

International

Total

Oil Sands

​

​

​

​

​

​

​

​

​

​

​

​

Synthetic crude oil and diesel

​

9 474

​

—

​

9 474

​

9 564

​

—

​

9 564

Bitumen

​

4 880

​

—

​

4 880

​

2 681

​

—

​

2 681

​

​

14 354

​

—

​

14 354

​

12 245

​

—

​

12 245

Exploration and Production

​

​

​

​

​

​

​

​

​

​

​

​

Crude oil and natural gas liquids

​

1 046

​

392

​

1 438

​

1 007

​

534

​

1 541

Natural gas

​

—

​

—

​

—

​

—

​

6

​

6

​

​

1 046

​

392

​

1 438

​

1 007

​

540

​

1 547

Refining and Marketing

​

​

​

​

​

​

​

​

​

​

​

​

Gasoline

​

6 509

​

—

​

6 509

​

6 161

​

—

​

6 161

Distillate

​

7 774

​

—

​

7 774

​

7 009

​

—

​

7 009

Other

​

1 387

​

—

​

1 387

​

1 275

​

—

​

1 275

​

​

15 670

​

—

​

15 670

​

14 445

​

—

​

14 445

Corporate and Eliminations

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(4 143)

​

—

​

(4 143)

​

(3 531)

​

—

​

(3 531)

Total Revenue from Contracts with Customers

​

26 927

​

392

​

27 319

​

24 166

​

540

​

24 706

48   2024 Second Quarter   Suncor Energy Inc.

5. OTHER INCOME (LOSS)

Other income (loss) consists of the following:

​	Three months ended June 30				Six months ended June 30
($ millions)	2024		2023		2024		2023
Energy trading and risk management	​	83	​	(12)	​	139	​	267
Investment and interest income	​	68	​	9	​	107	​	68
Insurance proceeds and other	​	—	​	—	​	53	​	4
​	​	151	​	(3)	​	299	​	339

6. SHARE-BASED COMPENSATION

The following table summarizes the share-based compensation expense for all plans recorded within operating, selling and general expense:

​	Three months ended June 30				Six months ended June 30
($ millions)	2024		2023		2024		2023
Equity-settled plans	​	4	​	4	​	7	​	9
Cash-settled plans	​	124	​	18	​	280	​	114
​	​	128	​	22	​	287	​	123

7. FINANCING EXPENSES

​	Three months ended June 30				Six months ended June 30
($ millions)	2024		2023		2024		2023
Interest on debt	​	184	​	191	​	365	​	388
Interest on lease liabilities	​	69	​	50	​	125	​	96
Capitalized interest	​	(83)	​	(62)	​	(157)	​	(120)
Interest expense	​	170	​	179	​	333	​	364
Interest on partnership liability	​	12	​	13	​	24	​	25
Interest on pension and other post-retirement benefits	​	5	​	(3)	​	11	​	3
Accretion	​	149	​	134	​	294	​	267
Foreign exchange loss (gain) on U.S. dollar denominated debt	​	103	​	(244)	​	323	​	(241)
Operational foreign exchange and other	​	(35)	​	76	​	(164)	​	151
​	​	404	​	155	​	821	​	569

In the second quarter of 2023, the company extended the maturity of its syndicated credit facilities from June 2024 and June 2025 to June 2026, and reduced the size of its $3.0 billion tranche by $200 million, to $2.8 billion.

2024 Second Quarter   Suncor Energy Inc.   49

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

8. EARNINGS PER COMMON SHARE

​	Three months ended June 30				Six months ended June 30
($ millions)	2024		2023		2024		2023
Net earnings	​	1 568	​	1 879	​	3 178	​	3 931
(millions of common shares)	​	​	​	​	​	​	​	​
Weighted average number of common shares	​	1 283	​	1 309	​	1 286	​	1 319
Dilutive securities:	​	​	​	​	​	​	​	​
Effect of share options	​	2	​	1	​	2	​	2
Weighted average number of diluted common shares	​	1 285	​	1 310	​	1 288	​	1 321
(dollars per common share)	​	​	​	​	​	​	​	​
Basic earnings per share	​	1.22	​	1.44	​	2.47	​	2.98
Diluted earnings per share	​	1.22	​	1.43	​	2.47	​	2.98

9. NORMAL COURSE ISSUER BID

During the first quarter of 2024, the TSX accepted a notice filed by Suncor to renew its normal course issuer bid (NCIB) to purchase the company’s common shares through the facilities of the TSX, NYSE and/or alternative trading systems. The notice provided that, beginning February 26, 2024, and ending February 25, 2025, Suncor may purchase for cancellation up to 128,700,000 common shares, which is equal to approximately 10% of Suncor’s public float as of February 12, 2024. As at February 12, 2024, Suncor had 1,287,461,183 common shares issued and outstanding.

A share buyback tax was substantively enacted during the second quarter of 2024, with an effective date of January 1, 2024, and the company has prospectively applied this tax on its share repurchase activities.

For the three months ended June 30, 2024, the company repurchased 15.6 million common shares under the 2024 renewed NCIB at an average price of $53.00 per share, for a total repurchase cost of $0.8 billion, including taxes. For the six months ended June 30, 2024, the company repurchased 3.4 million common shares under the previous 2023 NCIB and 18.6 million under the 2024 renewed NCIB at an average price of $50.81 per share, for a total repurchase cost of $1.1 billion, including taxes.

For the three months ended June 30, 2023, the company repurchased 16.8 million common shares under the 2023 renewed NCIB at an average price of $40.71 per share, for a total repurchase cost of $0.7 billion. For the six months ended June 30, 2023, the company repurchased 8.3 million common shares under the previous 2022 NCIB and 28.4 million under the 2023 renewed NCIB at an average price of $42.41 per share, for a total repurchase cost of $1.6 billion.

The following table summarizes the share repurchase activities during the period:

​	Three months ended June 30				Six months ended June 30
($ millions, except as noted)	2024		2023		2024		2023
Share repurchase activities (thousands of common shares)	​	​	​	​	​	​	​	​
Shares repurchased	​	15 561	​	16 804	​	21 999	​	36 740
Amounts charged to:	​	​	​	​	​	​	​	​
Share capital	​	264	​	281	​	372	​	615
Retained earnings(1)	​	576	​	403	​	761	​	943
Share repurchase cost	​	840	​	684	​	1 133	​	1 558

(1)

Includes $15 million of taxes on share repurchases for the three and six months ended June 30, 2024.

50   2024 Second Quarter   Suncor Energy Inc.

Under an automatic repurchase plan agreement with an independent broker, the company has recorded the following liability for share repurchases that may take place during its internal blackout period:

($ millions)	June 30 2024		December 31 2023
Amounts charged to:	​	​	​	​
Share capital	​	120	​	60
Retained earnings	​	248	​	90
Liability for share purchase commitment	​	368	​	150

10. FINANCIAL INSTRUMENTS

Derivative Financial Instruments

(a) Non-Designated Derivative Financial Instruments

The company uses derivative financial instruments, such as physical and financial contracts, to manage certain exposures to fluctuations in interest rates, commodity prices and foreign currency exchange rates, as part of its overall risk management program, as well as for trading purposes.

The changes in the fair value of non-designated derivatives are as follows:

($ millions)	Total
Fair value outstanding at December 31, 2023	​	(20)
Changes in fair value recognized in earnings during the year	​	(46)
Cash settlements – paid (received) during the year	​	34
Fair value outstanding at June 30, 2024	​	(32)

(b) Fair Value Hierarchy

To estimate the fair value of derivatives, the company uses quoted market prices when available, or third-party models and valuation methodologies that utilize observable market data. In addition to market information, the company incorporates transaction-specific details that market participants would utilize in a fair value measurement, including the impact of non-performance risk. However, these fair value estimates may not necessarily be indicative of the amounts that could be realized or settled in a current market transaction. The company characterizes inputs used in determining fair value using a hierarchy that prioritizes inputs depending on the degree to which they are observable. The three levels of the fair value hierarchy are as follows:

•

Level 1 consists of instruments with a fair value determined by an unadjusted quoted price in an active market for identical assets or liabilities. An active market is characterized by readily and regularly available quoted prices where the prices are representative of actual and regularly occurring market transactions to assure liquidity.

•

Level 2 consists of instruments with a fair value that is determined by quoted prices in an inactive market, prices with observable inputs or prices with insignificant non-observable inputs. The fair value of these positions is determined using observable inputs from exchanges, pricing services, third-party independent broker quotes and published transportation tolls. The observable inputs may be adjusted using certain methods, which include extrapolation over the quoted price term and quotes for comparable assets and liabilities.

•

Level 3 consists of instruments with a fair value that is determined by prices with significant unobservable inputs. As at June 30, 2024, the company does not have any derivative instruments measured at fair value Level 3.

In forming estimates, the company utilizes the most observable inputs available for valuation purposes. If a fair value measurement reflects inputs of different levels within the hierarchy, the measurement is categorized based upon the lowest level of input that is significant to the fair value measurement.

2024 Second Quarter   Suncor Energy Inc.   51

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The following table presents the company’s derivative financial instruments measured at fair value for each hierarchy level as at June 30, 2024:

($ millions)	Level 1		Level 2		Level 3		Total Fair Value
Accounts receivable	​	56	​	48	​	—	​	104
Accounts payable	​	(101)	​	(35)	​	—	​	(136)
​	​	(45)	​	13	​	—	​	(32)

During the second quarter of 2024, there were no transfers between Level 1 and Level 2 fair value measurements.

Non-Derivative Financial Instruments

At June 30, 2024, the carrying value of fixed-term debt accounted for under amortized cost was $11.4 billion (December 31, 2023 – $11.1 billion) and the fair value was $11.2 billion (December 31, 2023 – $11.1 billion). The estimated fair value of long-term debt is based on pricing sourced from market data.

11. ASSET TRANSACTIONS AND VALUATIONS

Oil Sands

Fort Hills:

During the first quarter of 2023, the company completed the acquisition of an additional 14.65% working interest in Fort Hills from Teck Resources Limited for $712 million, bringing the company’s working interest in Fort Hills to 68.76%.

During the fourth quarter of 2023, the company completed the acquisition of TotalEnergies Canada, which held the remaining 31.23% working interest in Fort Hills, for $1.468 billion before closing adjustments and other closing costs, making Suncor the sole owner of Fort Hills.

Exploration and Production

Sale of United Kingdom Operations:

During the second quarter of 2023, the company completed the sale of its United Kingdom (U.K.) operations, including its interests in Buzzard and Rosebank located in the U.K. sector of the North Sea, for gross proceeds of $1.1 billion, before closing adjustments and other closing costs, resulting in an after-tax gain on sale of $607 million ($607 million before-tax).

12. PROVISIONS

Suncor’s decommissioning and restoration provision decreased by $519 million for the six months ended June 30, 2024. The decrease was primarily due to an increase in the credit-adjusted risk-free interest rate to 5.50% (December 31, 2023 – 5.20%).

13. PENSIONS AND OTHER POST-RETIREMENT BENEFITS

For the six months ended June 30, 2024, the actuarial gain on employee retirement benefit plans was $490 million (net of taxes of $155 million), mainly due to an increase in the discount rate to 5.00% (December 31, 2023 – 4.60%).

52   2024 Second Quarter   Suncor Energy Inc.