Suncor Energy Inc.

Good day, and thank you for standing by. Welcome to the Suncor Energy fourth quarter 2025 financial results call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Suncor Energy Senior Vice President of External Affairs, Mr. Adam Albeldawi. Please go ahead.

Thank you, Operator, and good morning. Welcome to Suncor Energy's fourth quarter earnings call. Please note that today's comments contain forward-looking information. Actual results may differ materially from the expected results because of various risk factors and assumptions that are described in our fourth quarter earnings release, as well as in our current annual information form, both of which are available on CDAR+, EDGAR, and our website, Suncor.com. Certain financial measures referred to in these comments are not prescribed by Canadian generally accepted accounting principles. For a description of these financial measures, please see our fourth quarter earnings release. We will start with comments from Rich Krueger, President and Chief Executive Officer, followed by Troy Little, Suncor's Chief Financial Officer. Also on the call are Peter Zebedee, Executive Vice President, Oil Sands, Dave Oldreve, Executive Vice President, Downstream, and Shelly Powell, Senior Vice President, Operational Improvement and Support Services. Following the formal remarks, we'll open the call up to questions. Now, I'll hand it over to Rich to share his comments.

Thanks, Adam. Our fourth quarter of 2025 was about finishing a very good year on a very strong note, and that is exactly what we did. I'll review operational performance. Troy will cover financial. Let me start with safety. 2025 was the safest year in company history, our third consecutive safest ever. across the board. Fewer incidents, lower severity, both personnel and process safety. Relative to 2022, injuries and incidents are down 70% in three years. This is a credit to our people, our priorities, and our processes. Now, I recognize we put out an operational update earlier in the year, so I'll be relatively brief in summarizing some operational performance. Upstream production, 909,000 barrels a day in the fourth quarter, our best quarter of any quarter ever. 34,000 barrels a day higher than our previous best, which was the fourth quarter of 24th. Full year at 860 KBD, again, best ever by 32,000 barrels a day versus 24, our previous best, and 20,000 barrels a day above the high end of our original guidance. Over the last two years, we've increased production 114,000 barrels a day with the same asset base. No costly acquisitions, no major capital-intensive projects, growth from within. Upgrader utilization, an outstanding 106% for the quarter and 99% for the year. Again, best evers. Refining throughput, 504 KBD in the fourth quarter, our best quarter of any quarter, again, ever. 12,000 barrels a day higher than our previous best, which was literally the prior quarter. Full year at 480, best ever. by 15,000 barrels a day versus 2024, our previous best, and 30,000 barrels a day above the high end of original guidance. Over the last two years, we've increased throughput 60,000 barrels a day with the same asset base. No costly acquisitions, no major capital-intensive projects, growth from within. Refining utilization, 108% for the quarter, 103% full year. both best ever. All four refineries operated at 100% or higher for the second consecutive quarter. Product sales, 640,000 barrels a day in the quarter, our best fourth quarter ever, 27,000 barrels a day higher than our previous best, which was last year. Full year at 623 KBD, also best ever, by 23,000 barrels a day versus 24, our previous high. And 38,000 barrels a day above the high end of our original guidance. Over the last two years, product sales have increased 70,000 barrels a day supported by the same assets. After never having achieved 600,000 barrels a day sales in any quarter ever, we've now exceeded 600,000 barrels a day in six consecutive quarters. Capital and costs, OS&G, full year, $13.2 billion, within 1.5% of 2024, despite nearly 4% higher upstream production, more than 3% higher refining throughput, and nearly 4% higher refined product sales. Higher absolute volumes, lower unit costs. Capital, full year at 5.66 billion, down 510 million versus 24, and 540 below original guidance. Yet we executed our business plan as designed. We simply delivered it at a lower cost. How? Through rigorous value testing, challenging design bases, quality job planning, disciplined cost stewardship, and superior execution once in the field. To institutionalize, we now perform detailed readiness reviews before we spend money and comprehensive post-execution reappraisals after we spend money. Simply put, we are increasingly better stewards of our shareholders' capital. Final reflections on 2025. Best ever in most all regards, safety, operational integrity, reliability, et cetera. With volumes, every category, upstream and downstream, quarterly and full year was best ever. Breaking records largely set a year ago. For more than two years, Peter's upstream team, Dave's downstream team, and Shelly's central support team have not only been breaking records, they have been shattering records. All above the high end of guidance for two years in a row. how through crystal clear priorities, establishing ambitious daily, weekly, monthly performance targets, embracing industry best practices, promoting collaboration and teamwork, and by rewarding our teams when they deliver with performance-based incentives. we continue to systematically raise the bar, delivering higher, more reliable, more rateable operational results, and consequently higher, more reliable, more rateable cash flow. Now I'll turn the clock back two years. Suncor's Investor Day in the spring of 2024. We outlined a series of commitments for a three-year period, 2024 through 2026, including upstream production growth Reduction in WTI breakeven, increase in annual free funds flow, reduction in annual capital spend, and a net debt target with 100% of excess funds to buybacks thereafter. One year ago, February 25, we detailed progress after the first year of the plan. Recall we achieved nearly two full years of progress in one year. At the time, I hinted at the possibility of perhaps achieving a three-year plan in two years. However, behind the scenes, I challenged our team to do exactly that. Now, two years into an ambitious three-year plan, very pleased to report, we indeed achieved three years of performance improvement commitments in two years, three and two. 114,000 barrels a day of production growth in two years versus a target of 108,000 barrels a day in three. Greater than $10 a barrel reduction in breakeven in two years versus a target of $10 a barrel in three. Greater than $3.3 billion increase in annual refunds flow in two years versus a target of 3.3 in three years. Capital reduced to $5.7 billion in two years versus a target reduction of three years. Net debt of $8 billion achieved in the third quarter of 2024, nine months early, and at $6.3 billion today, our lowest in more than a decade. Bottom line, we met or exceeded every single target a full year or more early. In life, trust and credibility are earned by delivering on commitments, and today's Suncor delivers. So what does all this mean? We're bigger, better, higher performing, more reliable, more rateable, financially stronger and more resilient, better equipped to compete and win. We were previously a high-cost producer. Now we are a low-cost producer. Our balance sheet is rock solid, with net debt nearly half of what it was three years ago. In fact, the lowest level since explicitly 2014, with tremendous flexibility and optionality. Like an industrial machine, increasingly generating cash with less relative dependence on oil prices. Proof? Year on year. WTI was down 15%. Our AFFO was down 8%. and our free funds flow down six. In 2025, share buybacks of more than $3 billion were $250 million per month throughout the year, increasing to 275 in December. We were 250 million a month in January of 25 with WTI at $75 a barrel, and we were $275 million in December with WTI at $58 a barrel. We previously announced our plan to continue at this 10% higher level in 2026. Buybacks were independent of oil price in 2025, despite low oil price in 2026. Over the past three years, we've repurchased 163 million shares, more than 12% of our float, at an average price of $50 a share. Along with dividends, buybacks are a fundamental tenant of our shareholder value proposition. So now, what's next? 2026 and beyond, that's the exciting part. We are far from done yet. We know that you don't make the Hall of Fame with a few good seasons, or in Bill Belichick's case, by deflating footballs before a championship game. It takes sustained excellence, high performance, exceptional and consistent delivery of results, So we will detail a new value improvement plan on March 31st in Toronto, two horizons, short term, the next three years, longer term, the next 15 years. The longer term horizon will focus on bitumen supply and development options. We know it needs to be bold and ambitious, clear and compelling, to keep your interest and support. So stay tuned. I wouldn't miss it. I can't wait to hear what we have to say. With that, I'll turn it over to Troy.