Suncor Energy Q4 Earnings & Sales Beat Estimates, Expenses Up 6%

Suncor Energy Inc. SU reported fourth-quarter 2024 adjusted operating earnings of 89 Canadian cents per share, which beat the Zacks Consensus Estimate of 82 Canadian cents. This outperformance can be attributed to strong production growth in its upstream segment. However, the bottom line declined from the year-ago quarter’s reported figure of 93 Canadian cents, due to lower adjusted operating earnings in the downstream segment and higher year-over-year expenses.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Operating revenues of $8.9 billion beat the Zacks Consensus Estimate by 4.3%. However, the top line decreased approximately 14% year over year. This decrease was caused by lower commodity prices.Suncor Energy’s board of directors declared a quarterly dividend of 57 Canadian cents per share for its common shareholders of record as of March 4, 2024. The payout, which is unchanged from the previous quarter, will be made on March 25.Alberta-based integrated energy company distributed a total of C$1.7 billion to its shareholders, including C$1 billion in share repurchases and C$700 million in dividends in the fourth quarter. The company generated C$3.5 billion in adjusted funds from operations and C$1.9 billion in free cash flow in the quarter.In the fourth quarter of 2024, the company set a new record for upstream production, reaching 875,000 barrels per day (bbls/d) with upgrader utilization at 103%. Refining throughput was also near-record, totaling 486,200 bbls/d, with refinery utilization at 104%. Refined product sales hit a record 613,300 bbls/d, surpassing the previous record set in the third quarter.Suncor Energy has increased its shareholder capital allocation by moving to a 100% return of excess funds through share repurchases, following the achievement of C$8 billion net debt target.Suncor Energy Inc. Price, Consensus and EPS Surprise Suncor Energy Inc. price-consensus-eps-surprise-chart | Suncor Energy Inc. QuoteSegmental Performance of SUUpstream: Total production in this segment increased 20% year over year to 875,000 bbls/d from 808,100 bbls/d. Additionally, the figure beat the consensus estimate of 846,000 bbls/d.In the fourth quarter of 2024, total oil sands bitumen production hit a record 951,500 bbls/d compared with 866,200 bbls/d in the previous-year quarter. This growth was primarily due to record output at Firebag, an increased working interest at Fort Hills and strong mining performance.The company’s E&P volume (international, offshore and natural gas) increased 18.5% to 57,500 barrels of oil equivalent per day (boe/d) from 50,700 boe/d in the year-ago quarter, due to the addition of production from Terra Nova and increased production at Hebron. Additionally, the figure beat the consensus estimate of 54,000 boe/d.Operating earnings totaled C$1.6 billion, indicating a 4.2% decrease from the year-ago quarter.Operating cost per barrel decreased to C$26.55 from C$30.8 in the corresponding period of 2023. Total oil sands bitumen production rose to 817,500 bbls/d in the fourth quarter of 2024, up from 757,400 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 817,000 bbls/d.Non-upgraded bitumen production declined to 273,900 boe/d from 281,900 boe/d in the previous year.The figure was in line with the consensus estimate. Net SCO and diesel production increased to 543,600 boe/d from 475,700 boe/d a year earlier. Additionally, the number surpassed the consensus estimate of 543,000 boe/d. Fort Hills reported an average fourth-quarter volume of 161,700 barrels per day (bpd), higher than the year-ago quarter’s level of 154,100 bpd. Additionally, the figure beat the consensus estimate of 161,000 boe/d.  The cash operating cost per barrel increased to C$34.25 from C$28.10 in the prior-year period. This was due to lower overall production volumes and increased mining activity in line with the Fort Hills mine plan. Additionally, the cash operating costs per barrel for oil sands operations dropped to C$26.55 from C$30.80 in the same quarter last year. This decrease was mainly because of higher production and lower commodity costs.Furthermore, Syncrude’s cash operating costs per barrel decreased to C$32.80 from C$33.85 in the same quarter last year. This decrease was mainly caused by higher production volumes, reduced contractor tonnage, workforce optimizations and lower natural gas prices.The oil sands base upgrader operated at 94% capacity and Syncrude achieved a record 104% compared with 83% and 97%, respectively, in the prior-year quarter.  This significant improvement highlighted enhanced operational efficiency and capacity utilization across both assets.Downstream: Refining and Marketing adjusted operating earnings for the fourth quarter of 2024 were C$410 million, down from C$598 million in the same quarter last year. The decline in adjusted operating earnings was mainly due to lower benchmark crack spreads.Refined product sales totaled 613,300 bpd, up from the prior-year quarter’s level of 575,500 bpd. This growth was driven by higher refinery throughput and the advantages of the company’s ongoing investments in its extensive retail and sales network.Refinery crude throughput totaled 486,200 bpd compared with 455,900 bpd in the year-ago period.   The number missed the consensus estimate of 487,000 bpd.Refinery utilization was 104% compared with 98% 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 increased 6.2% to C$11.4 billion from the prior-year quarter. Operating, selling and general expenses in the fourth quarter of 2024 were similar to the same quarter last year. This was mainly due to lower operations and maintenance costs, along with reduced commodity costs, which were offset by the company’s higher working interest in Fort Hills and increased share-based compensation.Cash flow from operating activities amounted to C$5.1 billion, up from the prior-year quarter’s level of C$4.3 billion.Suncor Energy incurred capital expenditures worth C$1.6 billion in the fourth quarter of 2024.As of Dec. 31, 2024, the company had cash and cash equivalents of C$3.5 billion and long-term debt of C$9.3 billion. Its total debt to total capital was 17.4%.Guidance of Suncor EnergySU has already released its guidance for 2025. It expects upstream production to range from 810,000 boe/d to 840,000 boe/d for 2025. This includes upgraded net SCO and diesel production, which is predicted to be between 485,000 boe/d and 495,000 boe/d, along with non-upgraded bitumen production expected to fall between 280,000 boe/d and 290,000 boe/d.Oil Sands Operations production is anticipated to range from 445,000 boe/d to 470,000 boe/d, with Fort Hills contributing between 165,000 boe/d and 175,000 boe/d, and Syncrude (58.74% WI) expected to produce between 190,000 boe/d and 200,000 boe/d. Additionally, E&P production is forecasted to be within the range of 45,000-55,000 boe/d.On the other hand, the company expects cash operating costs for its Oil Sands operations in the range of C$26-C$29 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$34-C$37.The company expects refinery throughput to be between 435,000 bpd and 50,000 bpd, refinery utilization in the band of 93-97% and refined product sales in the range of 555,000-585,000 barrels per day.Suncor Energy expects its total capital expenditures for 2025 to be between C$6.1 billion and C$6.3 billion.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 fourth-quarter results in detail, let us take a look at some other key energy reports of this season.Oil and gas equipment and services provider Liberty Energy LBRT reported a fourth-quarter 2024 adjusted net income of 10 cents per share, which marginally beat the Zacks Consensus Estimate of 9 cents, due to a year-over-year decrease in costs and expenses.  However, the bottom line underperformed the year-ago quarter’s reported figure of 54 cents, due to poor equipment and service execution, along with lower activity.As of Dec. 31, Liberty had approximately $20 million in cash and cash equivalents. The pressure pumper’s long-term debt of $190.5 million represented a debt-to-capitalization of 8.8%.Another oil and gas equipment and services provider Halliburton Company HAL posted a fourth-quarter 2024 adjusted net income per share of 70 cents, same as the Zacks Consensus Estimate but below the year-ago quarter’s profit of 86 cents (adjusted). The numbers indicated softer activity in the region of North America, partly offset by improved fluid work in the Gulf of Mexico.As of Dec. 31, 2024, the company had approximately $2.6 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.4. The company generated $1.5 billion of cash flow from operations in the fourth quarter, leading to a free cash flow of $1.1 billion. Energy infrastructure provider Kinder Morgan KMI reported fourth-quarter adjusted earnings per share of 32 cents, shy of the Zacks Consensus Estimate of 33 cents. The lower-than-expected quarterly earnings were primarily due to decreased volumes on certain systems, asset divestitures and lower crude, CO2 and NGL volumes. KMI’s fourth-quarter DCF was $1.3 billion, up from $1.2 billion a year ago.As of Dec. 31, 2024, Kinder Morgan reported $88 million in cash and cash equivalents. Its long-term debt amounted to $29.8 billion at the quarter-end. For 2025, Kinder Morgan anticipates a net income of $2.8 billion, up 8% from the prior-year level, and an adjusted EPS of $1.27, up 10%. The company expects to declare dividends of $1.17 per share, up 2% from the prior-year figure. It also anticipates budgeted adjusted EBITDA of $8.3 billion, up 4% from the previous-year level.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 +24.3% 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 Halliburton Company (HAL): 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