Suncor Energy Q1 Earnings Miss Estimates, Revenues Beat, Both Up Y/YMay 11, 2026
Suncor Energy Inc. SU reported first-quarter 2026 adjusted operating earnings of $1.41 per share, which missed the Zacks Consensus Estimate of $1.45 by 3%. This underperformance can be attributed to a 16.5% increase in total expenses and higher commodity input costs during the quarter. However, the bottom line increased from the year-ago quarter’s reported figure of 91 cents due to stronger downstream margins, higher upstream price realizations and increased sales volumes.
Calgary-based integrated oil and gas company’s operating revenues of $10.7 billion beat the Zacks Consensus Estimate of $8.9 billion by 19.53%. The top line increased approximately 23.2% year over year, aided by record refined product sales, higher refinery production and stronger benchmark crack spreads.
Suncor Energy Inc. Price, Consensus and EPS SurpriseSuncor Energy Inc. Price, Consensus and EPS Surprise
Suncor Energy Inc. price-consensus-eps-surprise-chart | Suncor Energy Inc. Quote
Suncor delivered a strong operating quarter, with record first-quarter upstream production of 875,200 barrels per day (bbls/d), up from 853,200 bbls/d in the year-ago quarter. Refining throughput also reached a first-quarter record of 497,800 bbls/d, compared with 482,700 bbls/d a year earlier, while refined product sales rose to a quarterly record of 680,900 bbls/d from 604,900 bbls/d in the prior-year period.
Management highlighted that the quarter reflected continued momentum from 2025, supported by record first-quarter upstream output, strong refinery performance and expanded product sales through domestic retail growth and global export opportunities.
Q1 Segmental Performance
Upstream: Suncor delivered a strong operating quarter, with record first-quarter upstream production of 875,200 bbls/d, up from 853,200 bbls/d in the year-ago quarter. Moreover, the figure beat the consensus estimate of 868,000 bbls/d.
Total Oil Sands production was 798,800 bbls/d, up from 790,900 bbls/d in the year-ago quarter. Total Oil Sands bitumen production was 933,900 bbls/d, broadly comparable with 937,300 bbls/d in the prior-year period, and featured record quarterly production at Fort Hills. However, Syncrude maintenance and a third-party natural gas input pipeline curtailment weighed on production.
Net synthetic crude oil and diesel production declined to 519,300 bbls/d from 536,600 bbls/d a year earlier due to lower Syncrude upgrader availability. Non-upgraded bitumen production increased to 279,500 bbls/d from 254,300 bbls/d, primarily due to decreased upgrader availability.
Oil Sands adjusted operating earnings were C$1.57 billion, down from C$1.62 billion in the prior-year quarter, as higher operating expenses, share-based compensation, commodity input costs and asset advancement expenses more than offset improved price realizations and sales volumes.
Story Continues
Exploration and Production (E&P) production rose to 76,400 bbls/d from 62,300 bbls/d in the year-ago period, driven by strong production across assets. Adjusted operating earnings in the segment increased to C$382 million from C$158 million, primarily due to higher sales volumes and stronger price realizations.
Downstream: The segment was the key driver of the quarter’s strength. Adjusted operating earnings surged to C$1.68 billion from C$667 million in the prior-year quarter, primarily due to a significant FIFO inventory valuation gain, higher benchmark crack spreads and increased refinery production. Refinery utilization was 97%, up from 94% in the prior-year quarter, reflecting Suncor’s increased refining network nameplate capacity of 511,000 bbls/d.
Refined product sales climbed to 680,900 bbls/d, a 12.6% increase from 604,900 bbls/d in the prior-year quarter, supported by global export opportunities, retail growth and strategic partnerships. Moreover, the figure beat the consensus estimate of 594,000 bbls/d. On the earnings call, management noted that Suncor used its export capabilities and trading relationships to capture attractive margins in markets such as the Philippines and Puerto Rico.
SU’s Financial Position
Total expenses increased 16.5% to C$118 billion from the prior-year quarter. Cost of purchases of crude oil and products increased to C$5.2 billion in the first quarter of 2026, compared with C$4.3 billion in the prior-year quarter. Cost and operating, selling and general increased 14.6% to C$3.8 billion from the prior-year quarter.
Suncor generated C$4.03 billion in adjusted funds from operations, up from C$3.05 billion in the prior-year quarter. Free funds flow increased to C$2.91 billion from C$1.90 billion. The company returned more than C$1.5 billion to its shareholders, including C$825 million in share repurchases and over C$700 million in dividends.
Capital expenditures totaled C$1.08 billion, broadly flat with the year-ago quarter. As of March 31, 2026, Suncor had cash and cash equivalents of C$3.27 billion and long-term debt of C$10.1 billion. Its debt-to-capitalization was 18.1%.
SU’s Guidance and Shareholder Returns
Suncor updated its 2026 corporate guidance to reflect the 10% increase in refining network nameplate capacity to 511,000 bbls/d. Refinery throughput guidance has remained unchanged at 460,000-475,000 bbls/d, while refinery utilization guidance has been revised to 90-93% due to the larger capacity base.
This Zacks Rank #1 (Strong Buy) company has also increased its planned monthly share repurchases from C$275 million to C$350 million, implying nearly C$4 billion in total 2026 buybacks, more than 30% up from 2025 repurchases. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company expects 2026 corporate guidance to reflect strong operational performance across its integrated energy portfolio. Total upstream production is projected between 840,000 bbls/d and 870,000 bbls/d, supported by Oil Sands output of 785,000-810,000 bbls/d and E&P production of 55,000-60,000 bbls/d.
Refinery throughput is anticipated to range from 460,000 bbls/d to 475,000 bbls/d, with utilization between 90% and 93%, and refined product sales of 600,000-620,000 bbls/d.
Cash operating costs are forecasted to remain competitive, with Oil Sands Operations at $26-$29 per barrel, Fort Hills at $33-$36 and Syncrude at $34-$37, reflecting continued efficiency improvements and disciplined cost management.
The company expects total capital expenditures in 2026 to be between $5.6 billion and $5.8 billion. Of this, approximately $2.6-$2.7 billion will be directed toward economic investment capital, funding projects that enhance efficiency, flexibility and resilience. Key allocations include $425-$475 million for Exploration & Production, $430-$460 million for new In Situ well pads and $1.74-$1.76 billion for other economic investments.
In addition, $3-$3.1 billion will be dedicated to asset sustainment and maintenance capital, supporting the base business and regular upkeep. This includes $2.1-$2.15 billion for Oil Sands, $875-$925 million for Downstream operations and $25 million for Corporate. Notable projects within this budget include West White Rose, Firebag and MacKay River well pads, Fort Hills North Pit, Petro-Canada retail growth and Mildred Lake East.
Important Earnings at a Glance
While we have discussed SU’s first-quarter results in detail, let us take a look at three other key reports in this space.
Halliburton Company HAL, a Houston, TX-based oil and gas equipment and services provider, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Kinder Morgan Inc. KMI, a Houston, TX-based oil and gas storage and transportation company,posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Range Resources Corporation RRC, a Fort Worth, TX-based oil and gas exploration and production company, posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.
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Is It Time To Reconsider Suncor Energy (TSX:SU) After Its Recent Share Price PullbackMay 8, 2026
Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge.
If you are wondering whether Suncor Energy stock still offers value at current levels, the key is understanding what the recent price action and fundamentals are really saying about the price you see on screen. The stock last closed at C$87.05, after a 6.5% decline over the past week and a 6.2% decline over the last month, while the year to date return sits at 39.0% and the 1 year return at 89.8%, with a 155.0% return over 3 years and a very large 5 year return. Recent coverage has focused on Suncor Energy in the context of broad energy sector interest and investor attention on large integrated producers, which helps frame how sentiment can shift quickly around the stock. That backdrop is important context when looking at performance numbers like an 89.8% 1 year return and a 39.0% year to date move. On Simply Wall St's 6 point valuation framework, Suncor Energy earns a value score of 5/6. The next sections will compare different valuation methods before finishing with a broader way to think about what that score really means for you.
Suncor Energy delivered 89.8% returns over the last year. See how this stacks up to the rest of the Oil and Gas industry.
Approach 1: Suncor Energy Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow model takes estimates of future cash flows, then discounts them back to today to arrive at an implied per share value for the stock.
For Suncor Energy, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow sits at about CA$6.9b. Analyst and extrapolated projections have free cash flow in the CA$8.9b to CA$11.4b range over the next decade, with a projected CA$8.9b in 2030 according to the current set of estimates and extensions.
When those projected cash flows are discounted back to today, Simply Wall St’s DCF output suggests an intrinsic value of about CA$189.14 per share. Compared with the recent share price of CA$87.05, the model indicates the stock is about 54.0% undervalued on this set of assumptions.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Suncor Energy is undervalued by 54.0%. Track this in your watchlist or portfolio, or discover 7 more high quality undervalued stocks.SU Discounted Cash Flow as at May 2026
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Suncor Energy.
Approach 2: Suncor Energy Price vs Earnings
For a profitable company, the P/E ratio is a straightforward way to connect what you pay for the stock with the earnings the business is producing today. Investors typically accept a higher P/E when they expect stronger earnings growth or see lower risk, and look for a lower P/E when growth expectations are more modest or risks are higher.
Story Continues
Suncor Energy’s current P/E is 16.2x. That sits below the Oil and Gas industry average of about 17.6x and below the peer group average of 20.5x, which places the stock at a discount on these simple comparisons.
Simply Wall St’s Fair Ratio for Suncor Energy is 21.0x. This is a proprietary estimate of what the P/E might be given the company’s earnings growth profile, industry, profit margins, market cap and risk factors. Because it blends these company specific inputs, the Fair Ratio can provide a more tailored reference point than broad industry or peer averages alone.
Comparing the Fair Ratio of 21.0x with the actual P/E of 16.2x suggests the stock is trading below that Fair Ratio based assessment.
Result: UNDERVALUEDTSX:SU P/E Ratio as at May 2026
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Upgrade Your Decision Making: Choose your Suncor Energy Narrative
Earlier it was mentioned that there is an even better way to understand valuation, so it is time to introduce Narratives. A Narrative is simply your story about a company, written in numbers, where your view on its future revenue, earnings and margins feeds into a forecast and then into your own fair value. Instead of only looking at a P/E or DCF output, you connect what you believe about Suncor Energy’s business to a financial model and see what that implies for value. Narratives on Simply Wall St are set up for you on the Community page, where millions of investors share their views in an easy, accessible format. Each Narrative compares fair value with the current share price, which can help you decide whether the stock looks attractive or stretched based on your assumptions. As new news, earnings or other data arrive, these Narratives refresh, so your story and valuation stay current. For example, one investor might see Suncor Energy’s fair value well above the current C$87.05 price, while another might place it well below that level, which shows how different views translate into very different valuations.
Do you think there's more to the story for Suncor Energy? Head over to our Community to see what others are saying!TSX:SU 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SU.TO.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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June 26th Options Now Available For Suncor Energy (SU)May 7, 2026
Investors in Suncor Energy Inc (Symbol: SU) saw new options begin trading today, for the June 26th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the SU options chain for the new June 26th contracts and identified one put and one call contract of particular interest.
The put contract at the $62.00 strike price has a current bid of 45 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $62.00, but will also collect the premium, putting the cost basis of the shares at $61.55 (before broker commissions). To an investor already interested in purchasing shares of SU, that could represent an attractive alternative to paying $62.89/share today.
Because the $62.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 58%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 0.73% return on the cash commitment, or 5.30% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Suncor Energy Inc, and highlighting in green where the $62.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $64.00 strike price has a current bid of 50 cents. If an investor was to purchase shares of SU stock at the current price level of $62.89/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $64.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 2.56% if the stock gets called away at the June 26th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if SU shares really soar, which is why looking at the trailing twelve month trading history for Suncor Energy Inc, as well as studying the business fundamentals becomes important. Below is a chart showing SU's trailing twelve month trading history, with the $64.00 strike highlighted in red:
Considering the fact that the $64.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 53%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 0.80% boost of extra return to the investor, or 5.80% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 31%, while the implied volatility in the call contract example is 32%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $62.89) to be 23%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
