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Suncor(SU) - 2024 Q4 - Annual Report

Financial Performance - Suncor generated adjusted funds from operations of 13.846billionin2024,or13.846 billion in 2024, or 10.87 per common share, compared to 13.325billion,or13.325 billion, or 10.19 per common share, in the prior year [75]. - Net earnings for 2024 were 6.016billion,or6.016 billion, or 4.72 per common share, down from 8.295billion,or8.295 billion, or 6.34 per common share in 2023 [76]. - The company reported a cash flow from operating activities of 15.960billionin2024,comparedto15.960 billion in 2024, compared to 12.344 billion in 2023 [76]. - Adjusted operating earnings increased to 6.884billionin2024,comparedto6.884 billion in 2024, compared to 6.677 billion in 2023, reflecting a growth of 3.1% [93]. - Corporate loss before income taxes was (1,883)millionin2024,comparedto(1,883) million in 2024, compared to (1,296) million in 2023, influenced by unrealized foreign exchange losses and asset impairments [188]. - Adjusted funds from operations were 3.493billion(3.493 billion (2.78 per common share) in Q4 2024, down from 4.034billion(4.034 billion (3.12 per common share) in Q4 2023 [199]. - Net earnings for Q4 2024 were 818million,significantlylowerthan818 million, significantly lower than 2.820 billion in Q4 2023, influenced by lower refined product realizations and increased royalties [198]. - The effective tax rate increased to 26.5% in 2024 from 21.7% in 2023, influenced by non-taxable gains and foreign exchange losses [195]. Production and Sales - Total Oil Sands production volumes increased to 773.8 mbbls/d in 2024, up from 689.6 mbbls/d in 2023, representing a 12.6% increase [67]. - Suncor achieved record upstream production of 827,600 bbls/d in 2024, up from 745,700 bbls/d in 2023, representing an increase of approximately 11.5% [84]. - Total Oil Sands bitumen production increased to 907,000 bbls/d in 2024, up from 819,800 bbls/d in 2023, primarily due to increased working interest in Fort Hills and strong mining performance [132]. - Total refined product sales reached a record of 600,400 bbls/d in 2024, up from 553,100 bbls/d in 2023, driven by higher refinery throughput [182]. - Total production averaged 53,800 mboe/d in 2024, a decrease from 56,100 mboe/d in 2023, with E&P Canada production increasing to 49,700 bbls/d [165]. Capital Expenditures and Investments - Capital expenditures for 2024 were 6.166billion,anincreasefrom6.166 billion, an increase from 5.573 billion in 2023 [64]. - The company plans to allocate 6.1billionto6.1 billion to 6.3 billion for capital spending in 2025 [251]. - Economic investment expenditures in Oil Sands Base were 1.852billionin2024,focusingontheUpgrader1cokedrumreplacementandanewcogenerationfacility[227].RefiningandMarketingcapitalexpenditureswere1.852 billion in 2024, focusing on the Upgrader 1 coke drum replacement and a new cogeneration facility [227]. - Refining and Marketing capital expenditures were 1.186 billion in 2024, primarily for asset sustainment and maintenance activities [233]. - Exploration and Production capital expenditures were 862millionin2024,mainlyfortheWestWhiteRoseProjectandSeaRoseAssetLifeExtensionProject[232].DebtandFinancialPositionSuncorsnetdebtdecreasedto862 million in 2024, mainly for the West White Rose Project and SeaRose Asset Life Extension Project [232]. Debt and Financial Position - Suncor's net debt decreased to 6.861 billion in 2024 from 9.852billionin2023,reflectingimprovedfinancialcondition[64].Totaldebttototaldebtplusshareholdersequitydecreasedto18.99.852 billion in 2023, reflecting improved financial condition [64]. - Total debt to total debt plus shareholders' equity decreased to 18.9% in 2024 from 21.1% in 2023 [243]. - The company reported a net debt to adjusted funds from operations ratio of 0.5 times in 2024, down from 0.7 times in 2023 [243]. - Cash and cash equivalents at the end of 2024 were 3.484 billion, compared to 1.729billionattheendof2023[243].Availablecreditfacilitiesincreasedto1.729 billion at the end of 2023 [243]. - Available credit facilities increased to 5.475 billion at the end of 2024, up from 4.957billionattheendof2023[255].OperationalEfficiencyThecompanyachievedarefiningandmarketinggrossmarginof4.957 billion at the end of 2023 [255]. Operational Efficiency - The company achieved a refining and marketing gross margin of 36.40 per barrel in 2024, down from 45.00perbarrelin2023[67].Suncorsupgraderutilizationreached9845.00 per barrel in 2023 [67]. - Suncor's upgrader utilization reached 98% in 2024, up from 92% in 2023, indicating improved operational efficiency [84]. - Oil Sands operations cash operating costs per barrel decreased to 26.90 in 2024 from 29.70in2023,duetoincreasedproductionandcostoptimizations[148].FortHillscashoperatingcostsperbarreldecreasedto29.70 in 2023, due to increased production and cost optimizations [148]. - Fort Hills cash operating costs per barrel decreased to 32.80 in 2024 from 34.40in2023,primarilyduetoincreasedproductionvolumes[149].Syncrudecashoperatingcostsperbarreldecreasedto34.40 in 2023, primarily due to increased production volumes [149]. - Syncrude cash operating costs per barrel decreased to 35.15 in 2024 from 37.15in2023,drivenbyincreasedproductionandworkforceoptimizations[150].MarketConditionsTheaveragepricerealizationforupgradednetSCOanddieselwas37.15 in 2023, driven by increased production and workforce optimizations [150]. Market Conditions - The average price realization for upgraded net SCO and diesel was 97.91 per barrel in 2024, slightly down from 99.40perbarrelin2023[67].TheaverageWTIcrudeoilpricewas99.40 per barrel in 2023 [67]. - The average WTI crude oil price was 75.70/bbl in 2024, down from 77.60/bblin2023,reflectingadecreaseof2.977.60/bbl in 2023, reflecting a decrease of 2.9% [101]. - The average AECO natural gas benchmark price decreased to 1.35/GJ in 2024 from 2.50/GJin2023[110].TheAlbertapowerpoolpriceaveraged2.50/GJ in 2023 [110]. - The Alberta power pool price averaged 62.80/MWh in 2024, down from 133.65/MWhinthepreviousyear[111].TheaverageWTIcrudeoilpriceinQ42024was133.65/MWh in the previous year [111]. - The average WTI crude oil price in Q4 2024 was 70.30 per barrel, down from $78.35 per barrel in Q4 2023, indicating a decrease of approximately 10.5% [219].