Suncor Energy Q3 Earnings & Sales Beat Estimates, Expenses Down 1%

Suncor Energy Inc. SU reported third-quarter 2024 adjusted earnings of $1.08 per share, which beat the Zacks Consensus Estimate of 88 cents. This outperformance can be attributed to higher production from its oil sands, strong refining performance and efficient cost management. However, the bottom line declined from the year-ago quarter’s reported figure of $1.13, due to lower realized crude oil prices and refined product realizations.Operating revenues of $9.6 billion beat the Zacks Consensus Estimate by 11.7%. The top line also increased approximately 1.6% year over year.Suncor Energy Inc. Price, Consensus and EPS Surprise Suncor Energy Inc. price-consensus-eps-surprise-chart | Suncor Energy Inc. QuoteSuncor Energy’s board of directors declared a quarterly dividend of 57 Canadian cents per share for its common shareholders of record as of Dec. 3, 2024. The payout, which represents a 5% sequential increase, will be payable on Dec. 24.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Alberta-based integrated energy company distributed a total of C$1.5 billion to its shareholders, including C$800 million in share repurchases and C$700 million in dividends in the third quarter. The company generated C$3.8 billion in adjusted funds from operations and C$2.2 billion in free cash flow in the quarter.In the reported quarter, the company reached a record-high refining throughput of 488,000 barrels per day (bbls/d), achieving 105% overall utilization. Refined product sales also set a new milestone, totaling 612,000 bbls/d, marking the third consecutive quarter of record sales.On the other hand, SU’s Upstream production totaled 829,000 bbls/d with 99% upgrader utilization, representing the best third-quarter performance to date.Additionally, SU achieved its C$8 billion net debt target, generating a return of 100% of excess funds to the company’s shareholders.Segmental Performance of SUUpstream: Total production in this segment increased 20% year over year to 828,600 bbls/d from 690,500 bbls/d. The company’s E&P volume (international, offshore and natural gas) increased 18.5% to 52,600 barrels of oil equivalent per day (boe/d) from 44,400 boe/d in the year-ago quarter due to the addition of production from Terra Nova and increased production at Hebron. However, the figure missed the consensus estimate of 55,000 boe/d.Operating earnings totaled C$1.88 billion compared with C$1.98 billion in the year-ago quarter.Operating cost per barrel decreased to C$25.75 from C$29.15 in the corresponding period of 2023. Total oil sands bitumen production rose to 776,000 bbls/d in the third quarter of 2024, up from 646,100 bbls/d in the previous year.  This growth was mainly driven by the company’s higher working interest in Fort Hills and strong performance from its mining operations. Moreover, the figure exceeded the consensus estimate of 748,000 bbls/d.Non-upgraded bitumen production rose to 262,200 boe/d from 176,800 boe/d in the previous year. This growth was driven by the acquisition of Fort Hills and continued strong production at Firebag. Additionally, the figure surpassed the consensus estimate of 241,000 boe/d.Net SCO and diesel production increased to 513,800 boe/d from 469,300 boe/d a year earlier. Additionally, the number surpassed the consensus estimate of 506,000 boe/d.Fort Hills reported an average third-quarter volume of 166,000 barrels per day (bpd), higher than the year-ago quarter’s level of 86,100 bpd. The cash operating cost per barrel decreased to C$30.4 from C$43.4 in the prior-year period, due to higher overall production volumes.Oil Sands Base upgrader utilization reached 94% in the third quarter, while Syncrude achieved a record 104%, compared with 83% and 97%, respectively, in the prior-year quarter. This significant improvement highlights enhanced operational efficiency and capacity utilization across both assets.Downstream: Adjusted operating earnings from the unit decreased to C$484 million from the year-ago quarter’s reported figure of C$1,277 million. The decline in adjusted operating earnings was due to lower benchmark crack spreads and a first-in, first-out (FIFO) inventory valuation loss in the third quarter of 2024.Refined product sales totaled 612,300 bpd, up from the prior-year quarter’s level of 574,100 bpd. This growth was driven by strong refinery output, effective use of the company’s extensive domestic sales network and the impact of restart activities at the Commerce City refinery. The figure also surpassed the consensus estimate of 567,000 bpd.Refinery crude throughput totaled 487,600 bpd compared with 463,200 bpd in the year-ago period.   The number also surpassed the consensus estimate of 450,000 bpd.Refinery utilization was 105% compared with 99% a year ago. This increase in refinery crude throughput was due to strong utilization rates across all refineries in the quarter under review.SU’s Financial PositionTotal expenses decreased 1.3% to C$10.4 billion from the prior-year quarter.Cash flow from operating activities amounted to C$4.3 billion, up from the prior-year quarter’s level of C$4.2 billion.Suncor Energy incurred capital expenditures worth C$4.9 billion in the third quarter of 2024.As of Sept. 30, 2024, the company had cash and cash equivalents of C$3 billion and long-term debt of C$11 billion. Its total debt to total capital was 19.6%.Guidance of Suncor EnergySU expects production in the range of 770,000-810,000 boe/d for 2024. Oil Sands operations yield is anticipated in the band of 430,000-460,000 bbls/d, while the same for Fort Hills is predicted in the 155,000-165,000 bbls/d range. Syncrude and Exploration and Production operations yield is expected in the range of 175,000-190,000 bpd and 45,000-55,000 boe/d, respectively. Similarly, the company expects cash operating costs for its Oil Sands operations in the range of C$28-C$31 per barrel. Specifically, cash operating costs for Fort Hills are expected in the band of C$33-C$36 per barrel, while costs for Syncrude are anticipated in the range of C$35-C$38 per barrel.The company expects refinery throughput to be between 430,000 bpd and 445,000 bpd, refinery utilization in the band of 92-96% and refined product sales in the range of 550,000-580,000 barrels per day.SU expects its total capital expenditures for 2024 to be between C$6.30 billion and C$6.50 billion, with the following breakdown:Economic investment is expected to be between C$2.90 billion and C$2.97 billion, which includes C$0.70 billion for exploration and production, C$0.35 billion to C$0.37 billion for situ well pads, and C$1.85-C$1.90 billion for other economic investments.Asset sustainment and maintenance capital expenditures are expected to range from C$3.40 billion to C$3.54 billion, including C$2.37-C$2.42 billion for oil sands, C$0.96-C$1.04 billion for downstream operations and approximately C$0.08 billion for corporate-related expenses.SU currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Important Energy Earnings So FarWhile we have discussed Suncor Energy’s third-quarter results in detail, let us take a look at some other key energy reports of this season.Liberty Energy LBRT, the Denver-CO-based oil and gas equipment company, announced an adjusted net income of 45 cents per share, which missed the Zacks Consensus Estimate of 55 cents. This was primarily due to poor equipment and services execution and lower activity in the reported quarter. Additionally, the bottom line declined from the year-ago quarter’s reported figure of 86 cents due to a year-over-year increase in costs and expenses.Ahead of the earnings release, LBRT’s board of directors announced a dividend of 8 cents per common share payable on Dec. 20, to its stockholders of record as of Dec. 6. This dividend represents a 14% increase from the prior regular quarterly dividend of 7 cents per share. In the quarter, Liberty returned $51 million to its shareholders through a combination of share repurchases and cash dividends.Energy infrastructure provider, Kinder Morgan, Inc. KMI reported third-quarter adjusted earnings per share of 25 cents, which missed the Zacks Consensus Estimate of 27 cents. The bottom line was flat year over year. The weakness in quarterly results was caused by lower contributions from the Products Pipelines and CO2 business segments.KMI also announced a quarterly cash dividend of 28.75 cents per share for the third quarter of 2024 (annualized dividend of $1.15), implying a 2% increase from the third-quarter 2023 level. The dividend is payable on Nov. 15, 2024, to its shareholders of record as of Oct. 31.Schlumberger Limited SLB, a Houston, TX-based oil and gas equipment and services provider announced third-quarter earnings of 89 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 88 cents. The bottom line also increased from the year-ago quarter’s 78 cents. The strong quarterly earnings were primarily driven by broad-based earnings growth and margin expansion, especially in the Middle East, Asia and offshore North America. Additionally, cost optimization, greater adoption of digital solutions and contributions from long-cycle deepwater and gas projects played significant roles.SLB reported a free cash flow of $1.81 billion in the third quarter. As of Sept. 30, the company had approximately $4.46 billion in cash and short-term investments. At the end of the quarter, it registered a long-term debt of $11.86 billion.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Schlumberger Limited (SLB): Free Stock Analysis Report Suncor Energy Inc. (SU): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report Liberty Energy Inc. (LBRT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks