Canadian Natural Q2 Earnings Beat Estimates, Expenses Decrease Y/Y

Pembina Pipeline Corporation PBA reported second-quarter 2025 earnings per share of 47 cents. The figure was in line with the Zacks Consensus Estimate. The bottom line decreased from the year-ago quarter’s level of 55 cents. This decrease was primarily due to an asset retirement at the Redwater Complex, lower profit from PGI and lower other income.

Quarterly revenues of $1.3 billion decreased about 4.5% year over year. The metric also missed the Zacks Consensus Estimate of $1.6 billion significantly.

Pembina Pipeline Corp. Price, Consensus and EPS Surprise

Pembina Pipeline Corp. price-consensus-eps-surprise-chart | Pembina Pipeline Corp. Quote

In the second quarter, the oil and gas storage and transportation company witnessed volumes of 3,896 mboe/d compared with 3,890 mboe/d reported in the prior-year quarter.

The Canada-based company’s operating cash flow decreased approximately 17.2% to C$790 million. Adjusted EBITDA was C$1 billion compared with C$1.1 billion in the year-ago period.

Pembina’s board of directors declared a quarterly cash dividend of 71 Canadian cents per share to its common shareholders of record as of Sept. 15, 2025. The payout, which remains flat sequentially, will be paid on Sept. 29, 2025.

PBA’s Segmental Information

Pipelines: Adjusted EBITDA of C$646 million decreased about 1.4% from the year-ago quarter’s level. However, the figure beat our projection of C$631.3 million. This year-over-year decline was primarily attributed to lower firm tolls on the Cochin Pipeline due to recontracting in July of 2024, lower revenues at the Edmonton Terminals, largely related to the decommissioning of the Edmonton South Rail Terminal in the second quarter of 2024, lower interruptible volumes and lower tolls on the Vantage Pipeline.

However, volumes of 2,768 mboe/d in this segment saw an increase of about 2% compared with the year-ago quarter’s level.

Facilities: Adjusted EBITDA of C$331 million decreased from the year-ago quarter’s C$340 million, primarily due to lower volumes caused by planned outages at certain PGI assets and ongoing third-party egress restrictions impacting the Dawson assets. The figure slightly missed our prediction of C$331.3 million. 

Volumes of 826 mboe/d decreased about 3.4% year over year.

Marketing & New Ventures: Adjusted EBITDA of C$74 million decreased 48.3% from the year-ago quarter’s C$143 million. This decrease was primarily fueled by the net impact of lower net revenues due to a decline in NGL margins as a result of lower butane and propane prices, coupled with lower volumes resulting from third-party restrictions at the Channahon Facility and planned outages at both the Channahon Facility and the Redwater Complex, as well as lower realized gains on crude oil-based derivatives. The figure also missed our projection of C$117.8 million.

Volumes of 302 mboe/d decreased about 5.3% year over year.

PBA’s Capital Expenditure & Balance Sheet

Pembina spent C$197 million as capital expenditure in the quarter under review compared with C$265 million a year ago.

As of June 30, 2025, PBA had cash and cash equivalents worth C$210 million and C$12.7 billion in long-term debt. Debt-to-capitalization was 42.8%.

PBA’s 2025 Guidance

This Zacks Rank #3 (Hold) company expects its 2025 adjusted EBITDA to be in the range of C$4.2 billion to C$4.4 billion. Pembina has revised its outlook for the 2025 capital investment program to $1.3 billion, indicating continued progression of proposed conventional pipeline expansions to serve growing customer demand, approval of new projects and acquisitions at PGI.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Earnings at a Glance

While we have discussed PBA’s second-quarter results in detail, let us take a look at three other key reports in this space.

Coterra Energy Inc. CTRA reported second-quarter 2025 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 43 cents. The bottom line also outperformed the year-ago quarter’s 37 cents. This was largely attributed to stronger-than-expected operational performance, particularly in oil and natural gas production volumes.

This oil and gas exploration and production firm’s operating revenues of $2 billion beat the Zacks Consensus Estimate of $1.7 billion. Moreover, the figure was outstandingly higher than the year-ago figure of $1.3 billion. This can be attributed to higher natural gas price realizations.

As of June 30, 2025, the company had $192 million in cash and cash equivalents with no debt outstanding under its $2 billion revolving credit facility. This resulted in the company’s total liquidity of about $2.2 billion. Coterra Energy had a long-term debt (net) of $4.2 billion as of the same date, indicating a debt-to-capitalization of 22.3%.

Imperial Oil Limited IMO reported second-quarter 2025 adjusted earnings per share of $1.34, which beat the Zacks Consensus Estimate of $1.22. However, the bottom line decreased from the year-ago quarter’s $1.54. This decrease was due to lower upstream price realizations, partly offset by higher production volumes.

Revenues of $8.1 billion missed the Zacks Consensus Estimate of $10.5 billion. The top line also decreased from the year-ago quarter’s level of $9.8 billion, primarily due to weak performance in the Chemical segment.

As of June 30, 2025, Imperial Oil had cash and cash equivalents of C$2.4 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 13.8%.

TC Energy Corporation TRP reported second-quarter 2025 adjusted earnings of 59 cents per share, which beat the Zacks Consensus Estimate of 56 cents. This can be attributed to the better performance of all four segments of the company. However, the bottom line decreased from 69 cents in the year-ago period.

This energy infrastructure provider's quarterly revenues of $2.7 billion also beat the Zacks Consensus Estimate of $2.5 billion. However, the figure decreased 9.4% year over year.

As of June 30, 2025, TC Energy’s capital investments amounted to C$1.4 billion. TRP had cash and cash equivalents worth C$1.4 billion and long-term debt of C$43.3 billion, with a debt-to-capitalization of 59% as of the same date.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Civitas Resources, Inc. CIVI reported second-quarter 2025 adjusted earnings per share of 99 cents, which missed the Zacks Consensus Estimate of $1.12. Moreover, the bottom line declined from the year-ago adjusted profit of $2.06. The underperformance was due to lower oil price realizations.

However, Civitas’ revenues of $1.1 billion dropped 19.5% from the year-ago figure of $1.3 billion and missed the Zacks Consensus Estimate by 5.2%. This was primarily due to a decline in oil and natural gas sales volume.

Civitas Resources, Inc. Price, Consensus and EPS Surprise

Civitas Resources, Inc. price-consensus-eps-surprise-chart | Civitas Resources, Inc. Quote

The company has signed agreements to sell non-core DJ Basin assets for $435 million, surpassing its full-year 2025 asset sale target and achieving a valuation of more than 4x estimated EBITDAX. The transactions, anticipated to close by the end of third-quarter 2025, will have the proceeds directed toward debt reduction.

On Aug. 6, 2025, the company announced authorization for reinstating its capital return strategy, allocating 50% of free cash flow, after the base dividend, to share buybacks and the remaining 50% to annual debt reduction. The board has raised the share repurchase authorization to $750 million and Civitas intends to launch a $250 million accelerated share repurchase program.

CIVI’s Production & Price Realizations

The average second-quarter sales volume (comprising 72% liquids) fell 7.5% from the year-ago level to 317 thousand barrels of oil equivalent per day (Mboe/d) and missed the Zacks Consensus Estimate of 324.4 Mboe/d. Oil volume for the period was 149 thousand barrels per day (MBbls/d), down 3.9% year over year. The consensus mark was pegged at 150 MBbls/d of crude. CIVI’s natural gas production was 524 thousand cubic feet per day, while NGL output totaled 80 MBbls/d.

The average sales price for oil during the second quarter was $63.87 per barrel, down 20% from the prior-year realization of $80 and slightly above the consensus mark of $63. The average realized natural gas price was $1 per thousand cubic feet compared with 17 cents in the year-earlier period and the Zacks Consensus Estimate of $1.53. Meanwhile, the average realized NGL price fell to $18.99 per barrel from $20.94 in the second quarter of 2024.

Costs & Expenses of CIVI

Total operating expenses in the quarter fell to $887 million from the year-ago quarter’s $926 million. This was mainly on account of lower taxes and depreciation outgo, even as lease operating expenses rose 24.4% year over year to $158 million. Unit cash operating cost was $10.19 per BOE.

CIVI’s Financial Position

Cash flow from operations totaled $298 million, while Civitas’ capital expenditure totaled $506 million, leading to adjusted free cash flow of $123 million. The company approved a quarterly dividend of 50 cents per share, payable on Sept. 25 to its shareholders of record as of Sept. 11, 2025.

As of June 30, the company had $69 million in cash and cash equivalents. Civitas had a long-term debt of $5.4 billion, reflecting a debt-to-capitalization of 44.2%.

Guidance of CIVI

This Zacks Rank #3 (Hold) company has maintained its previously announced full-year 2025 guidance. For the third quarter, CIVI is targeting an average sales volume in the range of 327-338 Mboe/d, with oil output between 154 MBbls/d and 160 MBbls/d. The company has guided its capital spending within $460 million and $500 million for the upcoming quarter, while unit cash operating outgo is expected to be $9.80-$10.30 per BOE.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Earnings at a Glance

While we have discussed CIVI’s second-quarter results in detail, let us take a look at three other key reports in this space.

Coterra Energy Inc. CTRA reported second-quarter 2025 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 43 cents. The bottom line also outperformed the year-ago quarter’s 37 cents. This was largely attributed to stronger-than-expected operational performance, particularly in oil and natural gas production volumes.

This oil and gas exploration and production firm’s operating revenues of $2 billion beat the Zacks Consensus Estimate of $1.7 billion. Moreover, the figure was outstandingly higher than the year-ago figure of $1.3 billion. This can be attributed to higher natural gas price realizations.

As of June 30, 2025, the company had $192 million in cash and cash equivalents with no debt outstanding under its $2 billion revolving credit facility. This resulted in the company’s total liquidity of about $2.2 billion. Coterra Energy had a long-term debt (net) of $4.2 billion as of the same date, indicating a debt-to-capitalization of 22.3%.

Imperial Oil Limited IMO reported second-quarter 2025 adjusted earnings per share of $1.34, which beat the Zacks Consensus Estimate of $1.22. However, the bottom line decreased from the year-ago quarter’s $1.54. This decrease was due to lower upstream price realizations, partly offset by higher production volumes.

Revenues of $8.1 billion missed the Zacks Consensus Estimate of $10.5 billion. The top line also decreased from the year-ago quarter’s level of $9.8 billion, primarily due to weak performance in the Chemical segment.

As of June 30, 2025, Imperial Oil had cash and cash equivalents of C$2.4 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 13.8%.

TC Energy Corporation TRP reported second-quarter 2025 adjusted earnings of 59 cents per share, which beat the Zacks Consensus Estimate of 56 cents. This can be attributed to the better performance of all four segments of the company. However, the bottom line decreased from 69 cents in the year-ago period.

This energy infrastructure provider's quarterly revenues of $2.7 billion also beat the Zacks Consensus Estimate of $2.5 billion. However, the figure decreased 9.4% year over year.

As of June 30, 2025, TC Energy’s capital investments amounted to C$1.4 billion. TRP had cash and cash equivalents worth C$1.4 billion and long-term debt of C$43.3 billion, with a debt-to-capitalization of 59% as of the same date.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Helmerich & Payne, Inc. HP reported a fiscal third-quarter 2025 adjusted net income of 22 cents per share, which beat the Zacks Consensus Estimate of 20 cents. However, the bottom line decreased considerably from the year-ago quarter’s reported figure of 92 cents. This was due to a weakness in the company's International Solutions segment.

Operating revenues of $1 billion beat the Zacks Consensus Estimate by $42 million. In particular, sales from Drilling Services beat the consensus mark by 3.4%. Moreover, the figure increased 49.1% from the year-ago quarter’s level.

Helmerich & Payne, Inc. Price, Consensus and EPS Surprise

Helmerich & Payne, Inc. price-consensus-eps-surprise-chart | Helmerich & Payne, Inc. Quote

The company distributed approximately $25 million to shareholders as part of its ongoing dividend program.

As of the end of July, the company repaid $120 million on its existing $400 million term loan, which was originally funded at the close of the acquisition. The company expects to repay an additional $200 million by the end of calendar year 2025, up from the prior expectation of $175 million.

This was the first quarter to include the full impact of the acquisition of KCA Deutag (KCAD). During the quarter, the company made substantial headway toward achieving its goal of realizing $50-$75 million in cost synergies from the KCAD transaction, having already identified about $50 million to date, with further gains anticipated.

HP’s Segmental Performance

North America Solutions: Operating revenues of $592.2 million were down 4.5% year over year on lower activity levels, with 141 average active rigs. The top line beat our projection of $527.6 million.

Operating profit totaled $157.6 million compared with $163.4 million in the prior-year period. However, the reported figure beat our estimate of $103.9 million.

International Solutions: Operating revenues of $265.8 million increased 455.1% from the year-ago quarter’s level of $47.9 million. However, the top line missed our projection of $318.1 million.

Operating loss reached $166.5 million compared unfavorably with the prior-year period loss of $2.7 million. This segment’s results include a one-time goodwill impairment loss of $128 million directly impacting its profitability. The figure also missed our projection of a profit of $8.4 million.

Offshore Solutions: Revenues of $161.8 million increased 494.4% from the year-ago quarter’s level of $27.2 million. Additionally, the top line beat our projection of $135 million.

Operating profit totaled $8.8 million compared with $5 million in the year-ago quarter. The figure missed our estimate of $22.2 million.

HP’s Financial Position

In the reported quarter, this Zacks Rank #3 (hold) company spent $362.2 million on capital programs. As of June 30, 2025, the company had $166.1 million in cash and cash equivalents, while the long-term debt totaled $2.2 billion (debt-to-capitalization of 43.3%).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

HP’s Guidance for Fiscal Q4 and 2025

The company expects direct margin for the North America Solutions segment to be between $230 million and $250 million during the fourth quarter of fiscal 2025. The average rig count is expected to range from approximately 138-144 contracted rigs.

For the International Solutions segment, direct margin is expected to be between $22 million and $32 million, excluding any foreign exchange gains or losses. The average rig count is predicted to be around 62-66 contracted rigs.

In the Offshore Solutions segment, direct margin is anticipated to be between $22 million and $30 million. The average number of management contracts and contracted platform rigs is expected to range from 30 to 35.

The company expects its other operations segment to contribute a direct margin of up to $3 million.

HP’s gross capital expenditures are expected to range from $380 million to $395 million for fiscal 2025, partially offset by about $45 million in proceeds from asset sales, including reimbursements for lost and damaged tubulars and the sale of used drilling equipment. Depreciation for the year is predicted to be approximately $595 million.

Research and development expenses are still expected to be roughly $32 million, and general and administrative expenses are anticipated to be approximately $280 million. Cash taxes to be paid in fiscal 2025 are expected to range from $190 million to $220 million. Interest expense for the fiscal fourth quarter is expected to be approximately $25 million.

Important Earnings at a Glance

While we have discussed HP’s third-quarter results in detail, let us take a look at three other key reports in this space.

Coterra Energy Inc. CTRA reported second-quarter 2025 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 43 cents. The bottom line also outperformed the year-ago quarter’s 37 cents. This was largely attributed to stronger-than-expected operational performance, particularly in oil and natural gas production volumes.

This oil and gas exploration and production firm’s operating revenues of $2 billion beat the Zacks Consensus Estimate of $1.7 billion. Moreover, the figure was outstandingly higher than the year-ago figure of $1.3 billion. This can be attributed to higher natural gas price realizations.

As of June 30, 2025, the company had $192 million in cash and cash equivalents with no debt outstanding under its $2 billion revolving credit facility. This resulted in the company’s total liquidity of about $2.2 billion. Coterra Energy had a long-term debt (net) of $4.2 billion as of the same date, indicating a debt-to-capitalization of 22.3%.

Imperial Oil Limited IMO reported second-quarter 2025 adjusted earnings per share of $1.34, which beat the Zacks Consensus Estimate of $1.22. However, the bottom line decreased from the year-ago quarter’s $1.54. This decrease was due to lower upstream price realizations, partly offset by higher production volumes.

Revenues of $8.1 billion missed the Zacks Consensus Estimate of $10.5 billion. The top line also decreased from the year-ago quarter’s level of $9.8 billion, primarily due to weak performance in the Chemical segment.

As of June 30, 2025, Imperial Oil had cash and cash equivalents of C$2.4 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 13.8%.

TC Energy Corporation TRP reported second-quarter 2025 adjusted earnings of 59 cents per share, which beat the Zacks Consensus Estimate of 56 cents. This can be attributed to the better performance of all four segments of the company. However, the bottom line decreased from 69 cents in the year-ago period.

This energy infrastructure provider's quarterly revenues of $2.7 billion also beat the Zacks Consensus Estimate of $2.5 billion. However, the figure decreased 9.4% year over year.

As of June 30, 2025, TC Energy’s capital investments amounted to C$1.4 billion. TRP had cash and cash equivalents worth C$1.4 billion and long-term debt of C$43.3 billion, with a debt-to-capitalization of 59% as of the same date.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Permian Resources Corporation PR reported second-quarter 2025 adjusted net income per share of 27 cents, in line with the Zacks Consensus Estimate. However, the bottom line declined from the year-ago quarter’s reported figure of 39 cents. This underperformance was due to a year-over-year increase in operating expenses and lower commodity prices.

Meanwhile, Permian Resources’ oil and gas sales of $1.2 billion declined 3.8% year over year and missed the Zacks Consensus Estimate by 2.4%.

Permian Resources Corporation Price, Consensus and EPS Surprise

Permian Resources Corporation price-consensus-eps-surprise-chart | Permian Resources Corporation Quote

PR’s board of directors declared a quarterly cash dividend of 15 cents per share of common stock, equivalent to 60 cents on an annual basis. The dividend will be paid on Sept. 30 to its shareholders of record as of Sept. 16, 2025.

During the quarter, the Midland, TX-based oil and gas exploration and production company closed the previously announced APA New Mexico bolt-onacquisition that added 13,000 net acres directly.

PR’s Production & Price Realizations

The average daily second-quarter production (comprising 46% oil) was up 13.7% from the year-ago level to 385,118 barrels of oil equivalent (Boe) and beat the Zacks Consensus Estimate of 376,103 Boe.

Oil volume for the period was 176,533 barrels per day (Bbls/d), up 15.5% year over year. The consensus mark was pegged at 175,688 Bbls/d. PR’s natural gas production was 664,686 thousand cubic feet (Mcf) per day, while NGL output totaled 97,804 Bbls/d.

The average sales price for oil during the second quarter was $62.71 per barrel, down 21.7% from the prior-year realization of $80.10. The figure was in line with the consensus mark.

The average realized natural gas price in the second quarter was 50 cents per Mcf compared with negative 42 cents in the year-earlier period. The figure slightly missed the Zacks Consensus Estimate of 51 cents.

Meanwhile, the average realized NGL price was $17.75 per barrel, down from $20.07 realized in the second quarter of 2024.

Costs & Expenses for PR

Total operating expenses in the quarter rose to $900.1 million from $791 million in the year-ago quarter. This was primarily due to a 17.7% year-over-year increase in lease operating costs, which rose to $188 million, a 27.5% year-over year increase in Gathering, processing and transportation expenses and an 18.8% rise in depreciation, depletion and amortization, which totaled $506.4 million.

PR’s Financial Position

Adjusted cash flow from operations decreased 3.8% to $816.8 million, while Permian Resources’ capital expenditure totaled $505 million, leading to adjusted free cash flow of $311.8 million.

During the quarter, the company repurchased 4.1 million shares at a weighted average price of $10.52 per share.

As of June 30, the company had $451 million in cash and cash equivalents. Permian Resources had a long-term debt of $3.7 billion, reflecting a debt-to-capitalization of 25.4%.

PR’s Guidance for 2025

Permian Resources has raised its 2025 oil production target by 6 MBbls/d to 178.5 MBbls/d and increased its total production target by 15 MBoe/d to 385 MBoe/d, both based on the mid-point of guidance. This upward revision reflects a strong well performance and the recently completed APA bolt-on acquisition. The company has also adjusted its 2025 cash capital expenditure in the range of $1,920-$2,020 million, incorporating $20 million in additional capex related to the APA acquisition during the second half of the year, in line with prior disclosures.

Following the passage of the One Big Beautiful Bill Act, this Zacks Rank #3 (Hold) company has lowered its 2025 current income tax forecast to under $5 million, down from the prior estimate of under $10 million. The company also anticipates paying less than $50 million in cumulative current income taxes over 2026 and 2027, assuming current strip pricing holds.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Earnings at a Glance

While we have discussed PR’s second-quarter results in detail, let us take a look at three other key reports in this space.

Coterra Energy Inc. CTRA reported second-quarter 2025 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 43 cents. The bottom line also outperformed the year-ago quarter’s 37 cents. This was largely attributed to stronger-than-expected operational performance, particularly in oil and natural gas production volumes.

This oil and gas exploration and production firm’s operating revenues of $2 billion beat the Zacks Consensus Estimate of $1.7 billion. Moreover, the figure was outstandingly higher than the year-ago figure of $1.3 billion. This can be attributed to higher natural gas price realizations.

As of June 30, 2025, the company had $192 million in cash and cash equivalents with no debt outstanding under its $2 billion revolving credit facility. This resulted in the company’s total liquidity of about $2.2 billion. Coterra Energy had a long-term debt (net) of $4.2 billion as of the same date, indicating a debt-to-capitalization of 22.3%.

Imperial Oil Limited IMO reported second-quarter 2025 adjusted earnings per share of $1.34, which beat the Zacks Consensus Estimate of $1.22. However, the bottom line decreased from the year-ago quarter’s $1.54. This decrease was due to lower upstream price realizations, partly offset by higher production volumes.

Revenues of $8.1 billion missed the Zacks Consensus Estimate of $10.5 billion. The top line also decreased from the year-ago quarter’s level of $9.8 billion, primarily due to weak performance in the Chemical segment.

As of June 30, 2025, Imperial Oil had cash and cash equivalents of C$2.4 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 13.8%.

TC Energy Corporation TRP reported second-quarter 2025 adjusted earnings of 59 cents per share, which beat the Zacks Consensus Estimate of 56 cents. This can be attributed to the better performance of all four segments of the company. However, the bottom line decreased from 69 cents in the year-ago period.

This energy infrastructure provider's quarterly revenues of $2.7 billion also beat the Zacks Consensus Estimate of $2.5 billion. However, the figure decreased 9.4% year over year.

As of June 30, 2025, TC Energy’s capital investments amounted to C$1.4 billion. TRP had cash and cash equivalents worth C$1.4 billion and long-term debt of C$43.3 billion, with a debt-to-capitalization of 59% as of the same date.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Suncor Energy Inc. SU reported second-quarter 2025 adjusted operating earnings of 51 cents per share, which marginally beat the Zacks Consensus Estimate of 50 cents. This outperformance can be attributed to strong production growth in its upstream segment. However, the bottom line declined considerably from the year-ago quarter’s reported figure of 93 cents due to lower adjusted operating earnings in the downstream segment.

Operating revenues of $8.6 billion beat the Zacks Consensus Estimate by 11.3% primarily due to increased sales volumes in both the upstream and downstream segments. However, the top line decreased approximately 9.8% year over year.

Suncor Energy Inc. Price, Consensus and EPS Surprise

Suncor Energy Inc. price-consensus-eps-surprise-chart | Suncor Energy Inc. Quote

Suncor Energy’s board of directors declared a quarterly dividend of 57 Canadian cents per share for its common shareholders of record as of Sept. 4, 2025. The payout, which is unchanged from the previous quarter, will be made on Sept. 25.

During the quarter, the Alberta-based integrated energy company distributed a total of C$1.45 billion to its shareholders, including C$750 million in share repurchases and C$700 million in dividends. The company generated C$2.7 billion in adjusted funds from operations and C$1 billion in free cash flow in the quarter.

In the quarter under discussion, the company achieved a record upstream production of 808,100 barrels per day (bbls/d). Refining throughput was also near-record, totaling 442,000 bbls/d with refinery utilization at 95%. The company recorded the refined product sales of 600,500 bbls/d, increasing from the prior-year sales of 594,700 bbls/d.

Segmental Performance of SU

Upstream: Total production in this segment increased 4.9% year over year from 770,600 bbls/d. Moreover, the figure beat the consensus estimate of 791,000 bbls/d.

In the second quarter of 2025, total oil sands bitumen production increased to 860,800 bbls/d compared with 834,400 bbls/d in the previous-year quarter. This growth was primarily fueled by record output at Firebag.

The company’s E&P volume (international, offshore and natural gas) increased 9.3% to 59,700 bbls/d from 54,600 bbls/d in the year-ago quarter, driven by increased production at Hebron and the addition of production at White Rose, which restarted in the first quarter of 2025. Additionally, the figure beat the consensus estimate of 54,000 bbls/d.

Operating earnings totaled C$873 million, indicating a 46.3% decrease from the year-ago quarter’s C$1.6 billion due to lower upstream price realizations.

Operating costs from Oil Sands operations decreased to C$27.95 per barrel from C$28.45 in the corresponding period of 2024. This decrease was mainly due to a lower proportion of Fort Hills bitumen being directed to upgrading at Oil Sands Base due to planned maintenance and increased power sales volumes. Total oil sands production rose to 748,400 bbls/d in the second quarter of 2025, up from 716,000 bbls/d in the previous year. Moreover, the figure beat the consensus estimate of 731,000 bbls/d.

Non-upgraded bitumen production rose to 310,200 bbls/d from 254,300 bbls/d in the previous year. Moreover, the figure beat the consensus estimate of 266,000 bbls/d. Net SCO and diesel production decreased to 438,200 bbls/d from 461,700 bbls/d a year earlier. Additionally, the number missed the consensus estimate of 465,000 bbls/d.

Fort Hills reported an average second-quarter volume of 162,900 barrels per day (bpd), lower than the year-ago quarter’s level of 166,900 bpd. However, the figure beat the consensus estimate of 157,000 bpd. The Fort Hills cash operating cost per barrel increased to C$36.75 from C$30.60 in the prior-year period. This was due to increased mining activities and commodity costs, and decreased production volumes due to a longer planned maintenance program in the current year.

Furthermore, Syncrude’s cash operating costs per barrel decreased to C$36.50 from C$40.15 in the same quarter last year. This decrease was mainly caused by increased production volumes.

The oil sands base upgrader operated at 80% capacity and Syncrude achieved a record 91%, compared with 92% and 81%, respectively, in the prior-year quarter. This was primarily due to increased upgrader-related maintenance activities in the current period, including the Upgrader 1 coke drum replacement project and turnaround.

Downstream: Refining and Marketing adjusted operating earnings for the second quarter of 2025 were C$404 million, down from C$588 million in the same quarter last year. The decline in adjusted operating earnings was mainly due to a first-in, first-out inventory valuation loss and a one-time emissions compliance charge in the reported quarter.

Refined product sales totaled 600,500 bpd, up from the prior-year quarter’s level of 594,700 bpd. This growth was driven by higher refinery throughput and the execution of the previously announced retail growth plan.

Refinery crude throughput totaled 442,300 bpd compared with 430,500 bpd in the year-ago period. Additionally, the number beat the consensus estimate of 397,000 bpd.

Refinery utilization was 95% compared with 92% a year ago. This increase in refinery crude throughput was due to strong operating performance.

SU’s Financial Position

Total expenses decreased 3.7% to C$10.5 billion from the prior-year quarter. Operating, selling and general expenses almost remained consistent at C$3.163 billion in the second quarter of 2025, compared with C$3.153 billion in the prior-year quarter, as higher commodity input costs and increased mining costs were largely offset by decreased share-based compensation expense.

Cash flow from operating activities amounted to C$2.9 billion, down from the prior-year quarter’s level of C$3.8 billion. Suncor Energy incurred capital expenditures worth C$1.6 billion in the second quarter of 2025.

As of June 30, 2025, the company had cash and cash equivalents of C$2.3 billion and long-term debt of C$8.6 billion. Its debt-to-capitalization was 16.1%.

2025 Guidance of Suncor Energy

On Aug. 5, SU issued an updated guidance for 2025 by reducing full-year estimated capital spend from C$6.1-C$6.3 billion to C$5.7-C$5.9 billion. Estimated ranges for current income taxes, royalties and business environment have also been adjusted to reflect the current business environment.

The company expects the other guidance previously released on Dec. 12, 2024, to remain unchanged as follows:

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 in the band of 165,000 boe/d to 175,000 boe/d and Syncrude (58.74% working interest) expected to produce between 190,000 boe/d and 200,000 boe/d. Additionally, E&P production is forecasted in 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.

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 far

While we have discussed Suncor Energy’s second-quarter results in detail, let us take a look at some other key energy reports of this season.

Coterra Energy Inc. CTRA reported second-quarter 2025 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 43 cents. The bottom line also outperformed the year-ago quarter’s 37 cents. This was largely attributed to stronger-than-expected operational performance, particularly in oil and natural gas production volumes.

This oil and gas exploration and production firm’s operating revenues of $2 billion beat the Zacks Consensus Estimate of $1.7 billion. Moreover, the figure was outstandingly higher than the year-ago figure of $1.3 billion. This can be attributed to higher natural gas price realizations.

As of June 30, 2025, the company had $192 million in cash and cash equivalents with no debt outstanding under its $2 billion revolving credit facility. This resulted in the company’s total liquidity of about $2.2 billion. Coterra Energy had a long-term debt (net) of $4.2 billion as of the same date, indicating a debt-to-capitalization of 22.3%.

Imperial Oil Limited IMO reported second-quarter 2025 adjusted earnings per share of $1.34, which beat the Zacks Consensus Estimate of $1.22. However, the bottom line decreased from the year-ago quarter’s $1.54. This decrease was due to lower upstream price realizations, partly offset by higher production volumes.

Revenues of $8.1 billion missed the Zacks Consensus Estimate of $10.5 billion. The top line also decreased from the year-ago quarter’s level of $9.8 billion, primarily due to weak performance in the Chemical segment.

As of June 30, 2025, Imperial Oil had cash and cash equivalents of C$2.4 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 13.8%.

TC Energy Corporation TRP reported second-quarter 2025 adjusted earnings of 59 cents per share, which beat the Zacks Consensus Estimate of 56 cents. This can be attributed to the better performance of all four segments of the company. However, the bottom line decreased from 69 cents in the year-ago period.

This energy infrastructure provider's quarterly revenues of $2.7 billion also beat the Zacks Consensus Estimate of $2.5 billion. However, the figure decreased 9.4% year over year.

As of June 30, 2025, TC Energy’s capital investments amounted to C$1.4 billion. TRP had cash and cash equivalents worth C$1.4 billion and long-term debt of C$43.3 billion, with a debt-to-capitalization of 59% as of the same date.

This article originally published on Zacks Investment Research (zacks.com).

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(16:33 GMT) Imperial Oil Ltd. Is Maintained at Sector Perform by RBC Capital

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