Core Insights - Imperial Oil Limited (IMO) reported second-quarter 2025 adjusted earnings per share of $1.34, exceeding the Zacks Consensus Estimate of $1.22, but down from $1.54 in the same quarter last year due to lower upstream price realizations, partially offset by higher production volumes [1][11] - Revenues for the quarter were $8.1 billion, missing the Zacks Consensus Estimate of $10.5 billion and down from $9.8 billion year-over-year, primarily due to weak performance in the Chemical segment [2][11] - The company returned C$367 million to shareholders through dividend payments and announced a quarterly dividend of 72 Canadian cents per share [2][3] Financial Performance - Upstream revenues were C$3.8 billion, down from C$4.6 billion year-over-year and missing expectations of C$4.8 billion, with net income of C$664 million compared to C$799 million in the prior year [4][11] - Average upstream production increased to 427,000 gross oil-equivalent barrels per day (boe/d) from 404,000 boe/d year-over-year, surpassing expectations of 416,000 boe/d [5][11] - Total gross bitumen production at Kearl averaged 275,000 barrels per day, up from 255,000 barrels per day in the second quarter of 2024, attributed to improved mine productivity [6][11] Segment Performance - Cold Lake's gross bitumen production averaged 145,000 barrels per day, a slight decrease from 147,000 barrels per day in the prior year, due to production timing and turnaround impacts [7] - The Leming SAGD project is on track, with steam injection started and first oil expected in late 2025, ramping up to a peak of around 9,000 barrels per day [8] - Chemical segment revenues were C$356 million, down from C$418 million year-over-year, with net income of C$21 million compared to C$65 million in the prior year [13] Cost and Capital Expenditures - Total expenses decreased to C$10 billion from C$11.9 billion year-over-year, also below expectations of C$13.2 billion [14] - Capital and exploration expenditures totaled C$473 million, slightly up from C$462 million in the previous year [14] Cash Flow and Debt - Cash flow from operating activities was C$1.5 billion, down from C$1.6 billion year-over-year, with cash and cash equivalents of C$2.4 billion as of June 30 [15] - Total debt amounted to C$4 billion, with a debt-to-capitalization ratio of 13.8% [15]

Core Viewpoint - Suncor Energy Inc. is expected to report a decline in earnings and revenues for the second quarter of 2025, with earnings estimated at 50 cents per share and revenues at $7.6 billion, reflecting significant year-over-year decreases [1][8]. Group 1: Previous Performance - In the first quarter of 2025, Suncor Energy reported earnings of 91 cents per share, surpassing the Zacks Consensus Estimate of 86 cents, driven by strong production growth in its upstream segment [2]. - The company's operating revenues for Q1 2025 were $8.7 billion, exceeding the Zacks Consensus Estimate by 3.9% [2]. - Suncor has consistently beaten earnings estimates in the past four quarters, with an average surprise of 14.9% [3]. Group 2: Production Expectations - The consensus estimate for Suncor's daily oil sands production in Q2 2025 is projected to reach 731 thousand barrels, an increase of 15 thousand barrels from Q2 2024 [5]. - Daily syncrude production is expected to rise to 213 thousand barrels of oil equivalent, up 42 thousand barrels from the same period last year [5]. - The first quarter of 2025 showed continued improvement in performance, which is anticipated to carry into the second quarter [5]. Group 3: Revenue and Market Challenges - Suncor's Q2 revenues are expected to decline by 19.7% year-over-year to $7.6 billion, influenced by higher production being offset by tariffs, outages, and pipeline constraints [8]. - The company faces potential execution risks from large-scale turnarounds, including a 91-day outage for Upgrader 1, which could impact throughput, margins, and cash flows [6]. - Trade disruptions, including U.S. tariffs on Canadian crude, may affect Suncor's export market, potentially lowering realized prices despite a strong domestic presence [6][8]. Group 4: Earnings Prediction - The Zacks model does not predict an earnings beat for Suncor this quarter, as the Earnings ESP is 0.00% and the company holds a Zacks Rank of 3 [9][10].