Suncor trims budget and projects increased oil and gas production in 2026

Suncor Energy forecast lower spending for 2026, despite increased oil and gas production. The company will tighten?costs, and increase shareholder returns through an expanded buyback plan.

Suncor's outlook is similar to that of Canadian Natural Resources, Cenovus Energy and other oil sands producers in Canada. After years of investment, Canada's oil-sands producers have become among North America's low-cost operators and outperformed global competitors amid an oil?recession.

Suncor, based in Calgary, Alberta, expects to produce between 840,000 and 875,000 barrels of oil per day (bpd) next year. This is an increase from its estimate for 2025 which was 810,000-840,000 bpd.

Suncor forecasts a slight increase in the refinery's throughput volume to between?460,000?bpd and?475,000?bpd by 2026. Suncor expects a refining utilization between 99% and 100%.

Suncor expects its capital expenditure to be between C$5.6billion ($4.06billion) and C$5.8billion in 2026. This is down from the C$6.1billion to C$6.3billion forecast for 2025.

The major investments include the in-situ drilling of well pads and oil sands projects Mildred Lake East and Fort 'Hills North pit, as well as offshore oilfield West White Rose and the ongoing Petro Canada?retail network optimisation plan.

Rich Kruger, CEO of the company, said that it will continue to return 100% of its excess funds?to shareholders.

Suncor's monthly share repurchases increased by 10% to C$275 millions in December, and are expected to reach C$3.3 billion next year.

Suncor will provide an update to its Investor Day goals for the next three years in early January. (1 Canadian dollar = $1) (Reporting and editing by Sriraj Kalluvila, Sahal Muhammed and Dharna Baffna in Bengaluru)

(source: Reuters)