Suncor projects higher 2026 oil and gas output, trims budget

The Suncor Energy Centre picture in downtown Calgary, Alta. THE CANADIAN PRESS/Jeff McIntosh

Suncor Energy on Thursday forecast lower spending in 2026 despite higher oil and gas production, as it ramps up output from its oil sands operations, tightens costs and boosts shareholder returns with an expanded buyback program.

Suncor’s outlook mirrors those of peers Canadian Natural Resources and Cenovus Energy, as Canada’s oil sands producers are now among North America’s lowest-cost operators after years of investment, and have outperformed many global rivals amid a broader oil downturn.

Calgary, Alberta-based Suncor expects upstream production between 840,000 and 870,000 barrels per day next year (bpd), up from its 2025 estimate of 810,000 to 840,000 bpd.

Suncor also forecast a slight rise in refinery throughput volumes to between 460,000 and 475,000 bpd in 2026. It expects refining utilization to be between 99% and 102 per cent.

Suncor said it expects capital expenditure to range between C$5.6 billion ($4.06 billion) and C$5.8 billion in 2026, down from its forecast of C$6.1 billion to C$6.3 billion for 2025.

Major investments include in-situ well pads, oil sands projects Mildred Lake East and Fort Hills North Pit, offshore oilfield West White Rose, and the ongoing Petro-Canada retail network optimization plan.

CEO Rich Kruger said the company will continue returning 100 per cent of excess funds to shareholders.

Suncor increased its monthly share buybacks by 10% in December to C$275 million, pointing to C$3.3 billion in repurchases next year.

Suncor plans to provide an update on its three-year Investor Day targets in early January.

(Reporting by Sumit Saha, Dharna Bafna and Varun Sahay in Bengaluru; Editing by Sriraj Kalluvila and Sahal Muhammed)