(Calgary) Suncor Energy is ahead of its forecast for oil and gas production so far this year, although the company said Wednesday it was holding off on changing its full-year guidance.
President and CEO Rich Kruger said the company is making tangible improvements and exceeding its own forecasts on several metrics at this point in the year.
Suncor Energy is sticking to its previously announced annual production guidance of 770,000 to 810,000 barrels per day on average for the year.
Mr. Kruger said production at Fort Hills would likely decline in the second half of 2024 as the company focuses on opening a new pit on the north side of the mine.
“We know we have a second half left and we’re going to play it until the final whistle,” Kruger said on a conference call with analysts.
The Calgary-based company’s second-quarter results beat Wall Street expectations, with total production averaging 834,400 barrels per day, up from 814,300 barrels per day in the same quarter of 2023.
The company achieved record bitumen production at both its Fort Hills site (thanks in part to acquiring 100% ownership of the project last year) and its Firebag oil sands sites.
Its total downstream production averaged 770,600 barrels per day in the second quarter, beating Wall Street expectations by 5%.
Suncor Energy also posted record quarterly sales of refined products in the second quarter and set a quarterly production record at its Edmonton refinery, which produced 146,000 barrels per day.
RBC Capital Markets analyst Greg Pardy called the company’s second-quarter performance “solid” and “improved overall,” adding he believes it is “well positioned for a strong second half.”
Suncor Energy, which until recently had a reputation for underperforming its industry peers, is pursuing a major turnaround plan for the business under Kruger, who took the helm in April 2023.
The former Imperial executive, who was brought out of retirement to take the top job at Suncor, quickly cut the company’s workforce by 20 per cent, eliminating 1,500 jobs, in a bid to eliminate unnecessary or “unaffordable” work.
He also led efforts to automate the company’s truck fleet for oil sands operations.
Suncor Energy has 22 fully autonomous mining trucks in its fleet, up six from its last quarterly earnings call. Fifteen new autonomous trucks are expected to arrive at Fort Hills by the end of November, with another 18 to be in place at Base Plant mining operations by the first quarter of 2025.
In total, the 55 autonomous trucks are expected to reduce Suncor’s total operating costs by more than $300 million per year, Kruger said.