Aug 6, 2026 earnings call — Record oil sands production and shareholder returns
Adjusted funds flow of $6.9 billion in Q2 were the strongest in the history of the company.
Revenue $10.4B (est $9.4B) · EPS $1.53 (est $1.43)
Key quotes
"we also achieved record quarterly total corporate production of approximately 1.68 million BOE per day in Q2 resulting in year over year growth of approximately 206 thousand BOE per day or 18% from Q2 25 levels."
"Totaling approximately $4 billion in the second quarter including direct returns of $2.4 billion comprised of $1.3 billion in dividends and $1.1 billion in share repurchases."
"Until we have completed these definitive agreements, development of our medium and long term projects remain on hold."
Analyst Q&A 4
Handling spring runoff and solvent pilot
Q (Dennis Fong · CIBC): He asked how teams managed the difficult spring runoff and heavy rain at the Oil Sands, and asked for details on the Kirby solvent (diluent) rollout and its scale.
A: They said teams have focused for years on road management, having materials ready, ore availability, and on-the-ground crews who make minute-by-minute judgments and anticipate forecasts. They said Kirby South will run a small pilot using diluent and they will introduce the diluent in Q1 and monitor results to understand full-cycle economics.
"In this case, we are going to deploy the diluent as it is a lower cost product to be able to use for solvents." — Scott G. Stauth (PRESIDENT)
Upgrader capacity and project timing
Q (Patrick O'Rourke · ATB): He asked whether the upgraders can be rerated above current levels and how close the company is to deciding on growth if the trilateral MOU meets expectations.
A: They said it is premature to reassess or rerate the capacity and that teams remain focused on optimization and getting incremental "creep" barrels, including the NRU project. They also said the immediate focus is on getting through the definitive agreements so details align with the MOU before moving on timing or FID for larger growth.
"The focus right now on getting through the definitive agreements is really important and very strategic for us." — Scott G. Stauth (PRESIDENT)
SCO pricing and Peace River M&A
Q (Menno Hulshof · TD Cowen): He asked what supply-demand looks like for SCO and what a reasonable premium to WTI is through year-end, and asked why the company is buying in Peace River and whether there is more consolidation opportunity.
A: They said diesel demand is strong and suggested SCO will probably be at par or slightly better than WTI by a few dollars per barrel on a go-forward basis, noting historical resilience. On Peace River, they said acquisitions capture synergies of size and infrastructure, reduce operating cost, and let them maximize liquids production and lower drilling and completion costs.
"I would suggest that we will probably be at par or, yeah, slightly better than WTI by a few dollars per barrel and I see that on a go forward basis." — Scott G. Stauth (PRESIDENT)
Pipeline MOU importance and leverage plan
Q (Neil Mehta · Goldman Sachs): He asked what the gating factors are for improving egress and pipelines under the trilateral MOU and asked about timing to reach the $13 billion net debt goal and what reaching it would unlock.
A: They said the MOU and Pathways are transformative for Canada and the oil sands, broadening customers, improving differentials, and capturing significant greenhouse gas emissions while supporting jobs and royalties; definitive agreements must be completed next. On leverage, they said pricing has reduced net debt and they target getting to the $13 billion level in early 26 (or 2027), and once there they would target "100% of free cash flow under the share buyback program."
"Neil, I think it is transformative for Canada and certainly for the oil sands." — Scott G. Stauth (PRESIDENT)