Consolidated Statements of Comprehensive Income
(unaudited)
| | Three months ended | | Six months ended | ||||
($ millions) | | 2026 | | 2025 | | 2026 | | 2025 |
Revenues and Other Income |
| | | | | |
| |
Gross revenues (note 3) |
| 19 009 | | 12 749 | | 34 431 |
| 26 079 |
Less: royalties |
| (1 513) | | (758) | | (2 454) | | (1 765) |
Other income (loss) (note 4) |
| 38 | | (97) | | 220 |
| 33 |
|
| 17 534 |
| 11 894 | | 32 197 |
| 24 347 |
Expenses |
| | | | | | | |
Purchases of crude oil and products |
| 6 379 | | 5 101 | | 11 597 |
| 9 401 |
Operating, selling and general |
| 3 419 | | 3 163 | | 7 197 |
| 6 460 |
Transportation and distribution |
| 567 | | 489 | | 1 130 |
| 937 |
Depreciation, depletion and amortization |
| 1 714 | | 1 709 | | 3 445 |
| 3 372 |
Exploration |
| 17 | | 4 | | 153 |
| 126 |
Loss on disposal of assets |
| — | | — | | (13) |
| — |
Financing expenses (income) (note 6) |
| 459 | | (6) | | 883 |
| 327 |
|
| 12 555 |
| 10 460 | | 24 392 |
| 20 623 |
Earnings before Income Taxes |
| 4 979 |
| 1 434 | | 7 805 |
| 3 724 |
|
| | | | | | | |
Income Tax Expense (Recovery) |
| | | | | | | |
Current |
| 1 318 | | 412 | | 2 095 |
| 1 060 |
Deferred |
| (71) | | (112) | | (122) |
| (159) |
|
| 1 247 | | 300 | | 1 973 |
| 901 |
Net Earnings |
| 3 732 | | 1 134 | | 5 832 |
| 2 823 |
|
| | | | | | | |
Other Comprehensive Income |
| | | | | | | |
Items That May be Subsequently Reclassified to Earnings: |
| | | | | | | |
Foreign currency translation adjustment |
| 24 | | (159) | | 81 |
| (180) |
Items That Will Not be Reclassified to Earnings: |
| | | | | | | |
Actuarial gain on employee retirement benefit plans, net of income taxes |
| 357 | | 209 | | 430 | | 244 |
Other Comprehensive Income |
| 381 | | 50 | | 511 |
| 64 |
|
| | | | | | | |
Total Comprehensive Income |
| 4 113 | | 1 184 | | 6 343 |
| 2 887 |
|
| | | | | | | |
Per Common Share (dollars) (note 7) |
| | | | | | | |
Net earnings – basic and diluted |
| 3.17 | | 0.93 | | 4.93 |
| 2.29 |
Cash dividends |
| 0.60 | | 0.57 | | 1.20 |
| 1.14 |
See accompanying notes to the condensed interim consolidated financial statements.
Consolidated Balance Sheets
(unaudited)
| | June 30 | | December 31 |
($ millions) | | 2026 | | 2025 |
Assets |
| | | |
Current assets |
| | | |
Cash and cash equivalents |
| 5 372 |
| 3 650 |
Accounts receivable |
| 6 411 |
| 5 087 |
Inventories |
| 6 452 |
| 5 121 |
Income taxes receivable |
| 382 |
| 371 |
Total current assets |
| 18 617 |
| 14 229 |
Property, plant and equipment, net |
| 68 397 |
| 68 428 |
Exploration and evaluation |
| 1 742 |
| 1 742 |
Other assets |
| 2 593 |
| 1 977 |
Goodwill and other intangible assets |
| 3 334 |
| 3 455 |
Deferred income taxes |
| 65 |
| 82 |
Total assets |
| 94 748 |
| 89 913 |
|
| | | |
Liabilities and Shareholders’ Equity |
| | | |
Current liabilities |
| | | |
Current portion of long-term debt (note 6) |
| 656 |
| 973 |
Current portion of long-term lease liabilities |
| 725 | | 638 |
Accounts payable and accrued liabilities |
| 8 787 |
| 7 523 |
Current portion of provisions |
| 1 003 |
| 1 056 |
Income taxes payable |
| 87 |
| 20 |
Total current liabilities |
| 11 258 |
| 10 210 |
Long-term debt (note 9) |
| 9 197 |
| 9 014 |
Long-term lease liabilities |
| 4 102 | | 3 879 |
Other long-term liabilities |
| 1 522 |
| 1 416 |
Provisions |
| 12 338 |
| 12 108 |
Deferred income taxes |
| 8 168 |
| 8 162 |
Equity |
| 48 163 |
| 45 124 |
Total liabilities and shareholders’ equity |
| 94 748 |
| 89 913 |
See accompanying notes to the condensed interim consolidated financial statements.
Consolidated Statements of Cash Flows
(unaudited)
| | Three months ended | | Six months ended | ||||
($ millions) | | 2026 | | 2025 | | 2026 | | 2025 |
Operating Activities |
| | | | | | | |
Net Earnings |
| 3 732 | | 1 134 | | 5 832 |
| 2 823 |
Adjustments for: |
| | | | | | | |
Depreciation, depletion and amortization |
| 1 714 | | 1 709 | | 3 445 |
| 3 372 |
Deferred income tax recovery |
| (71) | | (112) | | (122) |
| (159) |
Accretion (note 6) |
| 153 | | 144 | | 306 |
| 287 |
Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt (note 6) |
| 132 | | (461) | | 271 |
| (475) |
Change in fair value of financial instruments and trading inventory |
| (231) | | 187 | | (42) |
| 130 |
Loss on disposal of assets |
| — | | — | | (13) |
| — |
Share-based compensation |
| (60) | | 6 | | (180) |
| (297) |
Settlement of decommissioning and restoration liabilities |
| (132) | | (112) | | (290) |
| (206) |
Other |
| 92 | | 194 | | 152 |
| 259 |
Decrease (increase) in non-cash working capital |
| 326 | | 230 | | (1 269) |
| (659) |
Cash flow provided by operating activities |
| 5 655 | | 2 919 | | 8 090 |
| 5 075 |
Investing Activities |
| | | | | | | |
Capital expenditures |
| (1 349) | | (1 708) | | (2 466) |
| (2 853) |
Proceeds from disposal of assets |
| 14 | | — | | 27 |
| — |
Other investments and acquisitions |
| 1 | | (1) | | (6) |
| (7) |
Decrease (increase) in non-cash working capital |
| 30 | | 39 | | (61) |
| (65) |
Cash flow used in investing activities |
| (1 304) | | (1 670) | | (2 506) |
| (2 925) |
Financing Activities |
| | | | | | | |
Repayment of long-term debt (note 6) |
| (378) | | — | | (378) |
| — |
Lease liability payments |
| (178) | | (175) | | (354) |
| (355) |
Issuance of common shares under share option plans |
| 30 | | 12 | | 99 |
| 87 |
Repurchase of common shares(1) (note 8) |
| (1 050) | | (750) | | (1 875) |
| (1 548) |
Distributions relating to non-controlling interest |
| (4) | | (4) | | (8) | | (8) |
Dividends paid on common shares |
| (706) | | (697) | | (1 418) |
| (1 402) |
Cash flow used in financing activities |
| (2 286) | | (1 614) | | (3 934) |
| (3 226) |
Increase (Decrease) in Cash and Cash Equivalents |
| 2 065 | | (365) | | 1 650 |
| (1 076) |
Effect of foreign exchange on cash and cash equivalents |
| 36 | | (139) | | 72 |
| (139) |
Cash and cash equivalents at beginning of period |
| 3 271 | | 2 773 | | 3 650 |
| 3 484 |
Cash and Cash Equivalents at End of Period |
| 5 372 | | 2 269 | | 5 372 |
| 2 269 |
Supplementary Cash Flow Information |
| | | | | | | |
Interest paid |
| 283 | | 293 | | 442 |
| 441 |
Income taxes paid |
| 1 458 | | 393 | | 1 958 |
| 997 |
| (1) | Prior year six months ended June 30, 2025, includes $48 million of taxes paid on 2024 share repurchases. |
See accompanying notes to the condensed interim consolidated financial statements.
Consolidated Statements of Changes In Equity
(unaudited)
| | | | | | Accumulated | | | | | | Number of |
| | | | | | Other | | | | | | Common |
| | Share | | Contributed | | Comprehensive | | Retained | | | | Shares |
($ millions) | | Capital | | Surplus | | Income | | Earnings | | Total | | (thousands) |
At December 31, 2024 |
| 21 121 |
| 520 |
| 1 201 |
| 21 672 |
| 44 514 |
| 1 244 332 |
Net earnings |
| — | | — | | — | | 2 823 | | 2 823 |
| — |
Foreign currency translation adjustment |
| — | | — | | (180) | | — | | (180) |
| — |
Actuarial gain on employee retirement benefit plans, |
| — | | — | | — | | 244 | | 244 |
| — |
Total comprehensive income |
| — |
| — |
| (180) |
| 3 067 |
| 2 887 |
| — |
Issued under share option plans |
| 101 | | (14) | | — | | — | | 87 |
| 2 145 |
Repurchase of common shares for cancellation(1) |
| (488) | | — | | — | | (1 040) | | (1 528) |
| (28 593) |
Change in liability for share repurchase commitment |
| 4 | | — | | — | | 11 | | 15 |
| — |
Share-based compensation |
| — | | 7 | | — | | — | | 7 |
| — |
Dividends paid on common shares |
| — | | — | | — | | (1 402) | | (1 402) |
| — |
At June 30, 2025 |
| 20 738 | | 513 | | 1 021 | | 22 308 | | 44 580 | | 1 217 884 |
At December 31, 2025 |
| 20 402 |
| 502 |
| 999 |
| 23 221 |
| 45 124 |
| 1 193 520 |
Net earnings |
| — | | — | | — | | 5 832 | | 5 832 |
| — |
Foreign currency translation adjustment |
| — | | — | | 81 | | — | | 81 |
| — |
Actuarial gain on employee retirement benefit plans, |
| — | | — | | — | | 430 | | 430 | | — |
Total comprehensive income |
| — | | — | | 81 | | 6 262 | | 6 343 |
| — |
Issued under share option plans |
| 121 | | (22) | | — | | — | | 99 |
| 2 400 |
Repurchase of common shares for cancellation(1) |
| (397) | | — | | — | | (1 512) | | (1 909) |
| (23 090) |
Change in liability for share repurchase commitment |
| — | | — | | — | | (81) | | (81) |
| — |
Share-based compensation (note 5) |
| — | | 5 | | — | | — | | 5 |
| — |
Dividends paid on common shares |
| — | | — | | — | | (1 418) | | (1 418) |
| — |
At June 30, 2026 |
| 20 126 |
| 485 |
| 1 080 |
| 26 472 |
| 48 163 |
| 1 172 830 |
| (1) | Includes $34 million of taxes on share repurchases for the six months ended June 30, 2026 (June 30, 2025 – $28 million). |
See accompanying notes to the condensed interim consolidated financial statements.
Notes to the Consolidated Financial Statements
(unaudited)
1. Reporting Entity and Description Of The Business
Suncor Energy is Canada’s leading integrated energy company. Suncor’s operations span the full energy value chain, including oil sands mining and in situ operations, upgrading, offshore production, petroleum refining in Canada and the U.S., marketing and trading, and nationwide Petro-Canada™ retail and wholesale networks – delivering reliable energy that fuels economic growth and meets the needs of customers across Canada and globally. With an unwavering focus on safety, operational excellence, and profitability, Suncor is committed to delivering industry-leading performance and long-term shareholder value. Suncor’s common shares (symbol: SU) are listed on the Toronto and New York stock exchanges.
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 (the “IFRS Accounting Standards”) and have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting. The accounting policies and methods of computation applied in these condensed interim consolidated financial statements are consistent with those applied in the company’s audited consolidated financial statements as at and for the year ended December 31, 2025. These condensed interim consolidated financial statements 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, 2025.
(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, 2025.
(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, 2025.
(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.
(f) Adoption of New IFRS Standards
The IASB issued amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures that are effective January 1, 2026, with early adoption permitted. There was no impact to the interim consolidated financial statements as a result of the initial application.
(g) Recently Announced Accounting Pronouncements
The standards, amendments and interpretations that are issued, but not yet effective up to the date of authorization of the company’s interim consolidated financial statements, and that may have an impact on the disclosures and financial position of the company, are disclosed below. The company intends to adopt these standards, amendments and interpretations when they become effective.
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 retrospectively with certain transition provisions. The company is currently evaluating the impact of adopting IFRS 18 on the consolidated financial statements.
3. 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 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.
| | | | | | Exploration and | | Refining and | | Corporate and | | | | | ||||||
Three months ended June 30 | | Oil Sands | | Production | | Marketing | | Eliminations | | Total | ||||||||||
($ millions) | | 2026 | | 2025 | | 2026 | | 2025 | | 2026 | | 2025 | | 2026 | | 2025 | | 2026 | | 2025 |
|
| | | | | | | | | | | | | | | | | | | |
Revenues and Other Income |
| | | | | | | | | |
| | | |
| | | | | |
Gross revenues |
| 6 051 |
| 4 806 |
| 1 147 |
| 665 |
| 11 811 |
| 7 278 |
| — |
| — |
| 19 009 |
| 12 749 |
Intersegment revenues |
| 2 992 |
| 1 634 |
| — |
| — |
| 79 |
| 32 |
| (3 071) |
| (1 666) |
| — |
| — |
Less: Royalties |
| (1 222) |
| (596) |
| (291) |
| (162) |
| — |
| — |
| — |
| — |
| (1 513) |
| (758) |
Operating revenues, net of royalties |
| 7 821 |
| 5 844 |
| 856 |
| 503 |
| 11 890 |
| 7 310 |
| (3 071) |
| (1 666) |
| 17 496 |
| 11 991 |
Other (loss) income |
| (61) |
| (58) |
| (12) |
| 9 |
| 58 |
| 18 |
| 53 |
| (66) |
| 38 |
| (97) |
|
| 7 760 |
| 5 786 |
| 844 |
| 512 |
| 11 948 |
| 7 328 |
| (3 018) |
| (1 732) |
| 17 534 |
| 11 894 |
Expenses |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Purchases of crude oil and products |
| 762 |
| 813 |
| — |
| — |
| 8 719 |
| 5 969 |
| (3 102) |
| (1 681) |
| 6 379 |
| 5 101 |
Operating, selling and general |
| 2 558 |
| 2 356 |
| 144 |
| 125 |
| 591 |
| 578 |
| 126 |
| 104 |
| 3 419 |
| 3 163 |
Transportation and distribution |
| 295 |
| 335 |
| 46 |
| 36 |
| 235 |
| 127 |
| (9) |
| (9) |
| 567 |
| 489 |
Depreciation, depletion and amortization |
| 1 241 |
| 1 248 |
| 167 |
| 167 |
| 275 |
| 260 |
| 31 |
| 34 |
| 1 714 |
| 1 709 |
Exploration |
| 17 |
| 3 |
| — |
| 1 |
| — |
| — |
| — |
| — |
| 17 |
| 4 |
Loss (gain) on disposal of assets |
| 5 |
| — |
| — |
| — |
| (2) |
| — |
| (3) |
| — |
| — |
| — |
Financing expenses (income) |
| 191 |
| 187 |
| 22 |
| 18 |
| 30 |
| 17 |
| 216 |
| (228) |
| 459 |
| (6) |
|
| 5 069 |
| 4 942 |
| 379 |
| 347 |
| 9 848 |
| 6 951 |
| (2 741) |
| (1 780) |
| 12 555 |
| 10 460 |
Earnings (Loss) before Income Taxes |
| 2 691 |
| 844 |
| 465 |
| 165 |
| 2 100 |
| 377 |
| (277) |
| 48 |
| 4 979 |
| 1 434 |
Income Tax Expense (Recovery) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Current |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 1 318 |
| 412 |
Deferred |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| (71) |
| (112) |
|
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 1 247 |
| 300 |
Net Earnings |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 3 732 |
| 1 134 |
Capital Expenditures |
| 914 |
| 1 109 |
| 126 |
| 229 |
| 300 |
| 362 |
| 9 |
| 8 |
| 1 349 |
| 1 708 |
Notes to the Consolidated Financial Statements
Six months ended June 30 | | Oil Sands | | Exploration and | | Refining and | | Corporate and | | Total | ||||||||||
($ millions) | | 2026 | | 2025 | | 2026 | | 2025 | | 2026 | | 2025 | | 2026 | | 2025 | | 2026 | | 2025 |
|
| | | | | | | | | | | | | | | | | | | |
Revenues and Other Income |
| | | | | | | | | |
| | | |
| | | | | |
Gross revenues |
| 11 386 |
| 9 796 |
| 2 108 |
| 1 394 |
| 20 937 |
| 14 889 |
| — |
| — |
| 34 431 |
| 26 079 |
Intersegment revenues |
| 5 171 |
| 3 785 |
| — |
| — |
| 82 |
| 49 |
| (5 253) |
| (3 834) |
| — |
| — |
Less: Royalties |
| (1 934) |
| (1 411) |
| (520) |
| (354) |
| — |
| — |
| — |
| — |
| (2 454) |
| (1 765) |
Operating revenues, net of royalties |
| 14 623 |
| 12 170 |
| 1 588 |
| 1 040 |
| 21 019 |
| 14 938 |
| (5 253) |
| (3 834) |
| 31 977 |
| 24 314 |
Other income (loss) |
| 118 |
| 40 |
| 24 |
| 14 |
| (28) |
| 6 |
| 106 |
| (27) |
| 220 |
| 33 |
|
| 14 741 |
| 12 210 |
| 1 612 |
| 1 054 |
| 20 991 |
| 14 944 |
| (5 147) |
| (3 861) |
| 32 197 |
| 24 347 |
Expenses |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Purchases of crude oil and products |
| 1 613 |
| 1 422 |
| — |
| — |
| 14 975 |
| 11 891 |
| (4 991) |
| (3 912) |
| 11 597 |
| 9 401 |
Operating, selling and general |
| 5 270 |
| 4 748 |
| 277 |
| 245 |
| 1 264 |
| 1 187 |
| 386 |
| 280 |
| 7 197 |
| 6 460 |
Transportation and distribution |
| 638 |
| 631 |
| 101 |
| 58 |
| 409 |
| 266 |
| (18) |
| (18) |
| 1 130 |
| 937 |
Depreciation, depletion and amortization |
| 2 476 |
| 2 447 |
| 342 |
| 338 |
| 551 |
| 517 |
| 76 |
| 70 |
| 3 445 |
| 3 372 |
Exploration |
| 151 |
| 71 |
| 2 |
| 55 |
| — |
| — |
| — |
| — |
| 153 |
| 126 |
Loss (gain) on disposal of assets |
| 5 |
| — |
| — |
| — |
| (8) |
| — |
| (10) |
| — |
| (13) |
| — |
Financing expenses (income) |
| 381 |
| 372 |
| 43 |
| 35 |
| 50 |
| 34 |
| 409 |
| (114) |
| 883 |
| 327 |
|
| 10 534 |
| 9 691 |
| 765 |
| 731 |
| 17 241 |
| 13 895 |
| (4 148) |
| (3 694) |
| 24 392 |
| 20 623 |
Earnings (Loss) before Income Taxes |
| 4 207 |
| 2 519 |
| 847 |
| 323 |
| 3 750 |
| 1 049 |
| (999) |
| (167) |
| 7 805 |
| 3 724 |
Income Tax Expense (Recovery) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Current |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 2 095 |
| 1 060 |
Deferred |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| (122) |
| (159) |
|
| — | | — | | — | | — | | — | | — | | — | | — | | 1 973 | | 901 |
Net Earnings |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 5 832 |
| 2 823 |
Capital Expenditures |
| 1 660 |
| 1 858 |
| 254 |
| 438 |
| 532 |
| 542 |
| 20 |
| 15 |
| 2 466 |
| 2 853 |
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 | | 2026 | | 2025 | ||||||||
($ millions) |
| North America | | International | | Total | | North America | | International | | Total |
Oil Sands |
| | | | | | | | | | | |
Synthetic crude oil and diesel |
| 6 492 | | — | | 6 492 | | 3 722 | | — | | 3 722 |
Bitumen |
| 2 551 | | — | | 2 551 | | 2 718 | | — | | 2 718 |
|
| 9 043 | | — | | 9 043 | | 6 440 | | — | | 6 440 |
Exploration and Production |
| | | | | | | | | | | |
Crude oil and natural gas liquids |
| 1 019 | | 128 | | 1 147 | | 545 | | 120 | | 665 |
|
| 1 019 | | 128 | | 1 147 | | 545 | | 120 | | 665 |
Refining and Marketing |
| | | | | | | | | | | |
Gasoline |
| 4 692 | | — | | 4 692 | | 3 286 | | — | | 3 286 |
Distillate(1) |
| 5 828 | | 493 | | 6 321 | | 3 429 | | 11 | | 3 440 |
Other |
| 877 | | — | | 877 | | 584 | | — | | 584 |
|
| 11 397 | | 493 | | 11 890 | | 7 299 | | 11 | | 7 310 |
Corporate and Eliminations |
| | | | | | | | | | | |
|
| (3 071) | | — | | (3 071) | | (1 666) | | — | | (1 666) |
Total Revenue from Contracts with Customers |
| 18 388 | | 621 | | 19 009 | | 12 618 | | 131 | | 12 749 |
Six months ended June 30 | | 2026 | | 2025 | ||||||||
($ millions) | | North America | | International | | Total | | North America | | International | | Total |
Oil Sands | | | | | | | | | | | | |
Synthetic crude oil and diesel | | 11 369 | | — | | 11 369 | | 8 578 | | — | | 8 578 |
Bitumen | | 5 188 | | — | | 5 188 | | 5 003 | | — | | 5 003 |
| | 16 557 | | — | | 16 557 | | 13 581 | | — | | 13 581 |
Exploration and Production | | | | | | | | | | | | |
Crude oil and natural gas liquids | | 1 737 | | 371 | | 2 108 | | 1 015 | | 379 | | 1 394 |
| | 1 737 | | 371 | | 2 108 | | 1 015 | | 379 | | 1 394 |
Refining and Marketing | | | | | | | | | | | | |
Gasoline | | 8 156 | | — | | 8 156 | | 6 534 | | — | | 6 534 |
Distillate(1) | | 10 687 | | 639 | | 11 326 | | 7 099 | | 88 | | 7 187 |
Other | | 1 537 | | — | | 1 537 | | 1 217 | | — | | 1 217 |
| | 20 380 | | 639 | | 21 019 | | 14 850 | | 88 | | 14 938 |
Corporate and Eliminations | | | | | | | | | | | | |
| | (5 253) | | — | | (5 253) | | (3 834) | | — | | (3 834) |
Total Revenue from Contracts with Customers | | 33 421 | | 1 010 | | 34 431 | | 25 612 | | 467 | | 26 079 |
| (1) | International revenues for comparative period were previously reported under North America. |
Notes to the Consolidated Financial Statements
4. Other Income
Other income (loss) consists of the following:
| | Three months ended | | Six months ended | ||||
($ millions) | | 2026 | | 2025 | | 2026 | | 2025 |
Risk management and energy trading |
| (75) | | (42) | | 37 | | 27 |
Investment and interest income(1) |
| 95 | | (62) | | 169 | | (6) |
Insurance proceeds and other |
| 18 |
| 7 | | 14 | | 12 |
|
| 38 |
| (97) | | 220 |
| 33 |
| (1) | The three and six months ended June 30, 2025, includes a $95 million write-down of an equity investment within the Corporate segment and a $41 million write-down of an equity investment within the Refining and Marketing segment. |
5. Share-Based Compensation
The following table summarizes the share-based compensation expense for all plans recorded within operating, selling and general expense:
| | Three months ended | | Six months ended | ||||
($ millions) | | 2026 | | 2025 | | 2026 | | 2025 |
Equity-settled plans | | 3 |
| 3 | | 5 | | 7 |
Cash-settled plans | | (44) |
| 17 | | 274 | | 158 |
| | (41) | | 20 | | 279 | | 165 |
6. Financing Expenses
Financing expenses (income) consists of the following:
| | Three months ended | | Six months ended | ||||
($ millions) | | 2026 | | 2025 | | 2026 | | 2025 |
Interest on debt |
| 155 | | 151 | | 314 | | 299 |
Interest on lease liabilities |
| 73 | | 65 | | 142 | | 138 |
Capitalized interest |
| (39) | | (59) | | (80) | | (117) |
Interest expense |
| 189 | | 157 | | 376 | | 320 |
Interest on partnership liability |
| 11 | | 11 | | 22 | | 23 |
Interest on pension and other post-retirement benefits |
| (4) | | — | | (9) | | (1) |
Accretion |
| 153 | | 144 | | 306 | | 287 |
Foreign exchange loss (gain) on U.S. dollar denominated debt and leases |
| 132 | | (461) | | 271 | | (475) |
Operational foreign exchange and other |
| (22) | | 143 | | (83) | | 173 |
|
| 459 |
| (6) | | 883 | | 327 |
During the second quarter of 2026, the company fully repaid its US$275 million 7.875% Debentures upon maturity in June 2026.
7. Earnings Per Common Share
| | Three months ended | | Six months ended | ||||
($ millions) | | 2026 | | 2025 | | 2026 | | 2025 |
Net earnings |
| 3 732 |
| 1 134 | | 5 832 | | 2 823 |
|
| | | | | | | |
(millions of common shares) |
| | | | | | | |
Weighted average number of common shares |
| 1 179 |
| 1 225 | | 1 184 | | 1 232 |
Dilutive securities: |
| | | | | | | |
Effect of share options |
| — |
| 1 | | — | | 1 |
Weighted average number of diluted common shares |
| 1 179 |
| 1 226 | | 1 184 |
| 1 233 |
|
| | | | | | | |
(dollars per common share) |
| | | | | | | |
Basic and diluted earnings per share |
| 3.17 |
| 0.93 | | 4.93 | | 2.29 |
Notes to the Consolidated Financial Statements
8. Share Repurchases
The following table summarizes the share repurchase activities during the period:
| | Three months ended | | Six months ended | ||||
($ millions, except as noted) | | 2026 | | 2025 | | 2026 | | 2025 |
Share repurchase activities (thousands of common shares) |
| |
| | | | | |
Shares repurchased |
| 12 018 |
| 14 993 | | 23 090 | | 28 593 |
Amounts charged to: |
| | | | | | | |
Share capital |
| 207 |
| 256 | | 397 | | 488 |
Retained earnings |
| 843 | | 494 | | 1 478 | | 1 012 |
Share repurchase cost before tax |
| 1 050 | | 750 | | 1 875 | | 1 500 |
Retained earnings - share buyback tax payable |
| 20 |
| 15 | | 34 | | 28 |
Share repurchase cost |
| 1 070 |
| 765 | | 1 909 |
| 1 528 |
Under an automatic repurchase plan agreement with an independent broker, the company has recorded the following liability for share repurchases under its normal course issuer bid that may take place during its internal blackout periods:
| | June 30 | | December 31 |
($ millions) | | 2026 | | 2025 |
Amounts charged to: |
| | | |
Share capital |
| 90 |
| 90 |
Retained earnings |
| 310 |
| 229 |
Liability for share purchase commitment |
| 400 |
| 319 |
9. 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 derivative assets (liabilities) are as follows:
($ millions) | | Total |
Fair value outstanding assets at December 31, 2025 |
| 193 |
Changes in fair value recognized in earnings during the period - (loss) |
| (163) |
Contracts realized during the period |
| 293 |
Fair value outstanding assets at June 30, 2026 |
| 323 |
(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, 2026, 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.
The following table presents the company’s derivative financial instruments measured at fair value for each hierarchy level as at June 30, 2026:
($ millions) | | Level 1 | | Level 2 | | Level 3 | | Total Fair Value |
Accounts receivable |
| 380 | | 211 |
| — |
| 591 |
Accounts payable |
| (123) | | (145) |
| — |
| (268) |
|
| 257 |
| 66 |
| — |
| 323 |
During the second quarter of 2026, there were no transfers between Level 1 and Level 2 fair value measurements.
Non-Derivative Financial Instruments
At June 30, 2026, the carrying value of fixed-term debt accounted for under amortized cost was $9.9 billion (December 31, 2025 – $10.0 billion) and the fair value was $9.7 billion (December 31, 2025 – $9.8 billion). The estimated fair value of long-term debt is based on pricing sourced from market data.