Suncor Energy 6K Current report | SU 12 Nov 24

Exhibit 99.2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

	Three months ended September 30				Nine months ended September 30
($ millions)	2024		2023		2024		2023
Revenues and Other Income

Gross revenues (note 4)		13 905		13 911		41 224		38 617

Less: royalties		(1 017)		(1 262)		(3 066)		(2 335)

Other income (loss) (note 5)		174		(13)		473		326
		13 062		12 636		38 631		36 608
Expenses

Purchases of crude oil and products		4 799		4 701		14 319		13 147

Operating, selling and general		3 055		3 124		9 648		9 988

Transportation and distribution		484		412		1 332		1 244

Depreciation, depletion, amortization and impairment		1 791		1 744		5 103		4 837

Exploration		8		10		82		59

Gain on disposal of assets (note 11)		(11)		(49)		(13)		(995)

Financing expenses (note 7)		242		560		1 063		1 129
		10 368		10 502		31 534		29 409
Earnings before Income Taxes		2 694		2 134		7 097		7 199
Income Tax Expense (Recovery)

Current		621		781		2 051		2 068

Deferred		53		(191)		(152)		(344)
		674		590		1 899		1 724
Net Earnings		2 020		1 544		5 198		5 475
Other Comprehensive (Loss) Income

Items That May be Subsequently Reclassified to Earnings:

Foreign currency translation adjustment		(52)		76		(57)		158

Items That Will Not be Reclassified to Earnings:

Actuarial (loss) gain on employee retirement benefit plans, net of income taxes (note 13)		(10)		296		480		321
Other Comprehensive (Loss) Income		(62)		372		423		479
Total Comprehensive Income		1 958		1 916		5 621		5 954
Per Common Share (dollars) (note 8)

Net earnings – basic and diluted		1.59		1.19		4.06		4.17

Cash dividends		0.55		0.52		1.65		1.56

See accompanying notes to the condensed interim consolidated financial statements.

2024 Third Quarter Suncor Energy Inc. 41

CONSOLIDATED BALANCE SHEETS

(unaudited)

($ millions)	September 30 2024		December 31 2023
Assets

Current assets

Cash and cash equivalents		3 005		1 729

Accounts receivable		6 115		5 735

Inventories		5 213		5 365

Income taxes receivable		621		980
Total current assets		14 954		13 809

Property, plant and equipment, net		68 530		67 650

Exploration and evaluation		1 742		1 758

Other assets		1 756		1 710

Goodwill and other intangible assets		3 482		3 528

Deferred income taxes		198		84
Total assets		90 662		88 539
Liabilities and Shareholders’ Equity

Current liabilities

Short-term debt		—		494

Current portion of long-term lease liabilities		458		348

Accounts payable and accrued liabilities		7 990		7 731

Current portion of provisions		904		983

Income taxes payable		51		41
Total current liabilities		9 403		9 597

Long-term debt (note 7)		10 973		11 087

Long-term lease liabilities		3 606		3 478

Other long-term liabilities		1 387		1 488

Provisions (note 12)		12 108		11 610

Deferred income taxes		8 103		8 000

Equity		45 082		43 279
Total liabilities and shareholders’ equity		90 662		88 539

See accompanying notes to the condensed interim consolidated financial statements.

42 2024 Third Quarter Suncor Energy Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	Three months ended September 30				Nine months ended September 30
($ millions)	2024		2023		2024		2023
Operating Activities

Net Earnings		2 020		1 544		5 198		5 475

Adjustments for:

Depreciation, depletion, amortization and impairment		1 791		1 744		5 103		4 837

Deferred income tax expense (recovery)		53		(191)		(152)		(344)

Accretion (note 7)		150		132		444		399

Unrealized foreign exchange (gain) loss on U.S. dollar denominated debt (note 7)		(123)		256		200		15

Change in fair value of financial instruments and trading inventory		(107)		15		(63)		91

Gain on disposal of assets (note 11)		(11)		(49)		(13)		(995)

Loss on extinguishment of long-term debt (note 7)		26		—		26		—

Share-based compensation		65		224		(211)		40

Settlement of decommissioning and restoration liabilities		(114)		(75)		(349)		(280)

Other		37		34		170		53

Decrease (increase) in non-cash working capital		474		550		524		(1 265)
Cash flow provided by operating activities		4 261		4 184		10 877		8 026
Investing Activities

Capital and exploration expenditures		(1 555)		(1 577)		(4 913)		(4 276)

Capital expenditures on assets held for sale		—		—		—		(108)

Acquisitions, net of cash acquired (note 11)		—		—		—		(712)

Proceeds from disposal of assets (note 11)		13		51		36		1 880

Other investments		(22)		(12)		(25)		(59)

(Increase) decrease in non-cash working capital		(107)		(109)		108		120
Cash flow used in investing activities		(1 671)		(1 647)		(4 794)		(3 155)
Financing Activities

Net decrease in short-term debt		(36)		(1 761)		(503)		(353)

Repayment of long-term debt		(321)		—		(321)		(5)

Lease liability payments		(123)		(84)		(328)		(248)

Issuance of common shares under share option plans		37		99		344		155

Repurchase of common shares (note 9)		(790)		(300)		(1 908)		(1 858)

Distributions relating to non-controlling interest		(4)		(4)		(12)		(12)

Dividends paid on common shares		(690)		(676)		(2 090)		(2 045)
Cash flow used in financing activities		(1 927)		(2 726)		(4 818)		(4 366)
Increase (Decrease) in Cash and Cash Equivalents		663		(189)		1 265		505

Effect of foreign exchange on cash and cash equivalents		(32)		11		11		(53)

Cash and cash equivalents at beginning of period		2 374		2 610		1 729		1 980
Cash and Cash Equivalents at End of Period		3 005		2 432		3 005		2 432
Supplementary Cash Flow Information

Interest paid		133		162		585		624

Income taxes paid		538		539		1 522		2 415

See accompanying notes to the condensed interim consolidated financial statements.

2024 Third 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		—		—		—		5 475		5 475		—

Foreign currency translation adjustment		—		—		158		—		158		—

Actuarial gain on employee retirement benefit plans, net of income taxes of $103		—		—		—		321		321		—
Total comprehensive income		—		—		158		5 796		5 954		—

Issued under share option plans		166		(11)		—		—		155		3 856

Repurchase of common shares for cancellation (note 9)		(729)		—		—		(1 129)		(1 858)		(43 529)

Change in liability for share repurchase commitment		77		—		—		108		185		—

Share-based compensation		—		12		—		—		12		—

Dividends paid on common shares		—		—		—		(2 045)		(2 045)		—
At September 30, 2023		21 771		572		1 132		18 295		41 770		1 297 798
At December 31, 2023		21 661		569		1 048		20 001		43 279		1 290 100
Net earnings		—		—		—		5 198		5 198		—

Foreign currency translation adjustment		—		—		(57)		—		(57)		—

Actuarial gain on employee retirement benefit plans, net of income taxes of $151 (note 13)		—		—		—		480		480		—
Total comprehensive income		—		—		(57)		5 678		5 621		—

Issued under share option plans		386		(52)		—		—		334		8 488

Repurchase of common shares for cancellation(1) (note 9)		(628)		—		—		(1 309)		(1 937)		(37 043)

Change in liability for share repurchase commitment (note 9)		(37)		—		—		(98)		(135)		—

Share-based compensation (note 6)		—		10		—		—		10		—

Dividends paid on common shares		—		—		—		(2 090)		(2 090)		—
At September 30, 2024		21 382		527		991		22 182		45 082		1 261 545

(1)

Includes $29 million of taxes on share repurchases for the nine months ended September 30, 2024.

See accompanying notes to the condensed interim consolidated financial statements.

44 2024 Third Quarter Suncor Energy Inc.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. REPORTING ENTITY AND DESCRIPTION OF THE BUSINESS

Suncor is Canada’s leading integrated energy company. 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 EV stations). Suncor is developing petroleum resources while advancing the transition to a lower-emissions future through investments in lower emissions intensity power, renewable feedstock fuels and projects targeting emissions intensity. 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.

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 Third 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 September 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		5 083		4 725		718		647		8 104		8 543		—		(4)		13 905		13 911

Intersegment revenues		2 162		2 078		—		—		20		27		(2 182)		(2 105)		—		—

Less: Royalties		(923)		(1 111)		(94)		(151)		—		—		—		—		(1 017)		(1 262)
Operating revenues, net of royalties		6 322		5 692		624		496		8 124		8 570		(2 182)		(2 109)		12 888		12 649

Other income (loss)		15		(4)		14		(21)		80		(26)		65		38		174		(13)
		6 337		5 688		638		475		8 204		8 544		(2 117)		(2 071)		13 062		12 636
Expenses

Purchases of crude oil and products		486		317		—		—		6 685		6 268		(2 372)		(1 884)		4 799		4 701

Operating, selling and general		2 223		2 213		139		102		592		610		101		199		3 055		3 124

Transportation and distribution		291		254		14		12		189		154		(10)		(8)		484		412

Depreciation, depletion, amortization and impairment		1 324		1 367		191		115		247		234		29		28		1 791		1 744

Exploration		7		7		1		3		—		—		—		—		8		10

(Gain) loss on disposal of assets		(9)		(39)		—		—		(3)		(8)		1		(2)		(11)		(49)

Financing expenses		196		162		21		16		15		12		10		370		242		560
		4 518		4 281		366		248		7 725		7 270		(2 241)		(1 297)		10 368		10 502
Earnings (Loss) before Income Taxes		1 819		1 407		272		227		479		1 274		124		(774)		2 694		2 134

Income Tax Expense (Recovery)

Current		—		—		—		—		—		—		—		—		621		781

Deferred		—		—		—		—		—		—		—		—		53		(191)
		—		—		—		—		—		—		—		—		674		590
Net Earnings		—		—		—		—		—		—		—		—		2 020		1 544
Capital and Exploration Expenditures		967		1 175		281		187		295		195		12		20		1 555		1 577

46 2024 Third Quarter Suncor Energy Inc.

Nine months ended September 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		15 340		13 474		2 156		2 194		23 729		22 957		(1)		(8)		41 224		38 617

Intersegment revenues		6 259		5 574		—		—		65		58		(6 324)		(5 632)		—		—

Less: Royalties		(2 706)		(1 982)		(360)		(353)		—		—		—		—		(3 066)		(2 335)
Operating revenues, net of royalties		18 893		17 066		1 796		1 841		23 794		23 015		(6 325)		(5 640)		38 158		36 282

Other income (loss)		142		106		15		(11)		197		143		119		88		473		326
		19 035		17 172		1 811		1 830		23 991		23 158		(6 206)		(5 552)		38 631		36 608
Expenses

Purchases of crude oil and products		1 811		1 086		—		—		18 792		17 419		(6 284)		(5 358)		14 319		13 147

Operating, selling and general		6 983		6 933		400		378		1 813		1 864		452		813		9 648		9 988

Transportation and distribution		875		819		63		54		424		398		(30)		(27)		1 332		1 244

Depreciation, depletion, amortization and impairment		3 744		3 688		545		384		727		678		87		87		5 103		4 837

Exploration		77		46		5		13		—		—		—		—		82		59

Gain on disposal of assets		(9)		(39)		—		(608)		(3)		(26)		(1)		(322)		(13)		(995)

Financing expenses		572		488		56		51		52		40		383		550		1 063		1 129
		14 053		13 021		1 069		272		21 805		20 373		(5 393)		(4 257)		31 534		29 409
Earnings (Loss) before Income Taxes		4 982		4 151		742		1 558		2 186		2 785		(813)		(1 295)		7 097		7 199

Income Tax Expense (Recovery)

Current		—		—		—		—		—		—		—		—		2 051		2 068

Deferred		—		—		—		—		—		—		—		—		(152)		(344)
		—		—		—		—		—		—		—		—		1 899		1 724
Net Earnings		—		—		—		—		—		—		—		—		5 198		5 475
Capital and Exploration Expenditures(1)		3 399		3 028		652		507		838		697		24		44		4 913		4 276

(1)

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

2024 Third 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 September 30	2024						2023
($ millions)	North America		International		Total		North America		International		Total
Oil Sands

Synthetic crude oil and diesel		4 883		—		4 883		4 912		—		4 912

Bitumen		2 362		—		2 362		1 891		—		1 891
		7 245		—		7 245		6 803		—		6 803
Exploration and Production

Crude oil and natural gas liquids		718		—		718		423		224		647

Natural gas		—		—		—		—		—		—
		718		—		718		423		224		647
Refining and Marketing

Gasoline		3 645		—		3 645		3 779		—		3 779

Distillate		3 726		—		3 726		4 030		—		4 030

Other		753		—		753		761		—		761
		8 124		—		8 124		8 570		—		8 570
Corporate and Eliminations
		(2 182)		—		(2 182)		(2 109)		—		(2 109)
Total Revenue from Contracts with Customers		13 905		—		13 905		13 687		224		13 911

Nine months ended September 30	2024						2023
($ millions)	North America		International		Total		North America		International		Total
Oil Sands

Synthetic crude oil and diesel		14 357		—		14 357		14 476		—		14 476

Bitumen		7 242		—		7 242		4 572		—		4 572
		21 599		—		21 599		19 048		—		19 048
Exploration and Production

Crude oil and natural gas liquids		1 764		392		2 156		1 430		758		2 188

Natural gas		—		—		—		—		6		6
		1 764		392		2 156		1 430		764		2 194
Refining and Marketing

Gasoline		10 154		—		10 154		9 940		—		9 940

Distillate		11 500		—		11 500		11 039		—		11 039

Other		2 140		—		2 140		2 036		—		2 036
		23 794		—		23 794		23 015		—		23 015
Corporate and Eliminations
		(6 325)		—		(6 325)		(5 640)		—		(5 640)
Total Revenue from Contracts with Customers		40 832		392		41 224		37 853		764		38 617

48 2024 Third Quarter Suncor Energy Inc.

5. OTHER INCOME (LOSS)

Other income (loss) consists of the following:

	Three months ended September 30				Nine months ended September 30
($ millions)	2024		2023		2024		2023
Energy trading and risk management		68		(84)		207		183

Investment and interest income		111		71		218		139

Insurance proceeds and other		(5)		—		48		4
		174		(13)		473		326

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 September 30				Nine months ended September 30
($ millions)	2024		2023		2024		2023
Equity-settled plans		3		3		10		12

Cash-settled plans		73		228		353		342
		76		231		363		354

7. FINANCING EXPENSES

	Three months ended September 30				Nine months ended September 30
($ millions)	2024		2023		2024		2023
Interest on debt		151		205		516		593

Interest on lease liabilities		64		41		189		137

Capitalized interest		(88)		(65)		(245)		(185)
Interest expense		127		181		460		545

Interest on partnership liability		12		12		36		37

Interest on pension and other post-retirement benefits		6		4		17		7

Accretion		150		132		444		399

Foreign exchange (gain) loss on U.S. dollar denominated debt		(123)		256		200		15

Operational foreign exchange and other		44		(25)		(120)		126

Loss on extinguishment of long-term debt		26		—		26		—
		242		560		1 063		1 129

In the third quarter of 2024, the company completed two partial redemptions, for US$196.0 million of its outstanding US$1.15 billion 6.50% notes due 2038, and for US$18.9 million of its outstanding US$900.0 million 6.80% notes due 2038, resulting in a debt extinguishment loss of $26 million ($23 million after tax).

Subsequent to the third quarter of 2024, the company completed a debt tender offer and, as a result, repaid approximately $1.1 billion CAD equivalent of its various notes on October 7, 2024.

2024 Third Quarter Suncor Energy Inc. 49

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

8. EARNINGS PER COMMON SHARE

	Three months ended September 30				Nine months ended September 30
($ millions)	2024		2023		2024		2023
Net earnings		2 020		1 544		5 198		5 475
(millions of common shares)
Weighted average number of common shares		1 269		1 300		1 280		1 313

Dilutive securities:

Effect of share options		2		2		2		2
Weighted average number of diluted common shares		1 271		1 302		1 282		1 315
(dollars per common share)
Basic and diluted earnings per share		1.59		1.19		4.06		4.17

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 defined in the TSX Company Manual) 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 September 30, 2024, the company repurchased 15.0 million common shares under the 2024 renewed NCIB at an average price of $52.51 per share, for a total repurchase cost of $0.8 billion, including taxes. For the nine months ended September 30, 2024, the company repurchased 3.4 million common shares under the previous 2023 NCIB and 33.6 million under the 2024 renewed NCIB at an average price of $51.50 per share, for a total repurchase cost of $1.9 billion, including taxes.

For the three months ended September 30, 2023, the company repurchased 6.8 million common shares under the 2023 renewed NCIB at an average price of $44.20 per share, for a total repurchase cost of $0.3 billion. For the nine months ended September 30, 2023, the company repurchased 8.3 million common shares under the previous 2022 NCIB and 35.2 million under the 2023 renewed NCIB at an average price of $42.69 per share, for a total repurchase cost of $1.9 billion.

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

	Three months ended September 30				Nine months ended September 30
($ millions, except as noted)	2024		2023		2024		2023
Share repurchase activities (thousands of common shares)

Shares repurchased		15 044		6 789		37 043		43 529
Amounts charged to:

Share capital		255		114		628		729

Retained earnings(1)		549		186		1 309		1 129
Share repurchase cost		804		300		1 937		1 858

(1)

Includes $14 million and $29 million of taxes on share repurchases for the three and nine months ended September 30, 2024, respectively.

50 2024 Third 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 periods:

($ millions)	September 30 2024		December 31 2023
Amounts charged to:

Share capital		97		60

Retained earnings		188		90
Liability for share purchase commitment		285		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		97

Cash settlements – paid (received) during the year		(10)
Fair value outstanding at September 30, 2024		67

(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 September 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 Third 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 September 30, 2024:

($ millions)	Level 1		Level 2		Level 3		Total Fair Value
Accounts receivable		59		57		—		116

Accounts payable		(38)		(11)		—		(49)
		21		46		—		67

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

Non-Derivative Financial Instruments

At September 30, 2024, the carrying value of fixed-term debt accounted for under amortized cost was $11.0 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.

Meadow Creek:

During the third quarter of 2023, the company recorded after-tax derecognition charges of $192 million ($253 million before-tax) on its Meadow Creek development properties as these properties no longer aligned with the company’s future development plans.

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).

Corporate

Sale of Wind and Solar Assets:

During the first quarter of 2023, the company completed the sale of its wind and solar assets for gross proceeds of $730 million, before closing adjustments and other closing costs, resulting in an after-tax gain on sale of approximately $260 million ($302 million before-tax).

12. PROVISIONS

Suncor’s decommissioning and restoration provision increased by $506 million for the nine months ended September 30, 2024. The increase was primarily due to a decrease in the credit-adjusted risk-free interest rate to 5.00% (December 31, 2023 – 5.20%).

13. PENSIONS AND OTHER POST-RETIREMENT BENEFITS

For the nine months ended September 30, 2024, the actuarial gain on employee retirement benefit plans was $480 million (net of taxes of $151 million), mainly due to strong plan assets performance while discount rates were unchanged at 4.60% (December 31, 2023 – 4.60%).

52 2024 Third Quarter Suncor Energy Inc.

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