Interim Unaudited Financial Statements of Suncor Energy Inc. for the nine months ended September 30, 2008


		Third Quarter			Nine months ended September 30
		2008	2007		2008		2007
($ millions)			(restated) (note 2)				(restated) (note 2)

Revenues (note 3)		8 946	4 802		22 893		13 380

Expenses
	Purchases of crude oil and products (note 2)	2 301	1 714		5 499		4 304
	Operating, selling and general (notes 2, 3 and 7)	998	814		2 857		2 450
	Energy marketing and trading activities (note 3)	3 494	882		8 608		2 323
	Transportation and other costs	61	46		175		134
	Depreciation, depletion and amortization	263	216		763		610
	Accretion of asset retirement obligations	16	12		48		36
	Exploration	30	9		73		78
	Royalties (note 11)	301	170		804		490
	Taxes other than income taxes	170	165		487		487
	Loss (gain) on disposal of assets	4	(1	)	(14	)	—
	Project start-up costs	8	26		29		52
	Financing expenses (income) (note 5)	156	(100	)	241		(185	)

		7 802	3 953		19 570		10 779

Earnings Before Income Taxes		1 144	849		3 323		2 601

Provision for Income Taxes (notes 2 and 10)
	Current	192	69		406		314
	Future	137	153		565		346

		329	222		971		660

Net Earnings		815	627		2 352		1 941

	Other comprehensive income (loss) (note 13)	104	(76	)	91		(170	)

Comprehensive Income		919	551		2 443		1 771

Net Earnings per Common Share (dollars), (note 6)
	Basic	0.87	0.68		2.53		2.11

	Diluted	0.86	0.66		2.48		2.06

Cash dividends		0.05	0.05		0.15		0.14

Suncor Energy Inc.
Inquiries John Rogers (403) 269-8670 2008 Third Quarter 019

September 30
2008

December 31
2007

($ millions)

(restated)
(note 2)

Assets

Current assets

Cash and cash equivalents

1 315

569

Accounts receivable (note 3)

1 784

1 438

Inventories (note 2)

1 349

1 012

Income taxes receivable

Future income taxes

Total current assets

4 551

3 160

Property, plant and equipment, net

25 213

20 945

Deferred charges and other (note 3)

767

404

Total assets

30 531

24 509

Liabilities and Shareholders' Equity

Current liabilities

Short-term debt

Accounts payable and accrued liabilities (notes 2, 3 and 11)

3 148

2 797

Taxes other than income taxes

Income taxes payable

244

Future income taxes

177

Total current liabilities

3 464

3 156

Long-term debt (note 12)

6 568

3 811

Accrued liabilities and other (notes 3 and 8)

1 345

1 434

Future income taxes (notes 2, 3 and 10)

4 662

4 212

Shareholders' equity (see below)

14 492

11 896

Total liabilities and shareholders' equity

30 531

24 509

Suncor Energy Inc.
020 2008 Third Quarter For more information about Suncor Energy, visit our website www.suncor.com


		Third Quarter				Nine months ended September 30
		2008		2007		2008		2007
($ millions)				(restated) (note 2)				(restated) (note 2)

Operating Activities
Cash flow from operations		1 346		957		3 912		2 809
Decrease (increase) in operating working capital
	Accounts receivable	115		(136	)	(343	)	(211	)
	Inventories	255		19		(337	)	(154	)
	Accounts payable and accrued liabilities	(546	)	(165	)	136		29
	Taxes payable/receivable	59		(55	)	(125	)	152

Cash flow from operating activities		1 229		620		3 243		2 625

Cash Used in Investing Activities		(1 893	)	(1 256	)	(5 081	)	(3 678	)

Net Cash Deficiency Before Financing Activities		(664	)	(636	)	(1 838	)	(1 053	)

Financing Activities
Decrease in short-term debt		—		(1	)	(1	)	(2	)
Net proceeds from issuance of long-term debt		—		428		2 704		1 835
Net (decrease) increase in long-term debt		(152	)	18		(195	)	(469	)
Issuance of common shares under stock option plan		15		16		184		44
Dividends paid on common shares		(46	)	(42	)	(134	)	(120	)
Deferred revenue		—		1		—		4

Cash flow provided by financing activities		(183	)	420		2 558		1 292

Increase in Cash and Cash Equivalents		(847	)	(216	)	720		239
Effect of Foreign Exchange on Cash and Cash Equivalents		16		(20	)	26		(44	)
Cash and Cash Equivalents at Beginning of Period		2 146		952		569		521

Cash and Cash Equivalents at End of Period		1 315		716		1 315		716

Suncor Energy Inc.
Inquiries John Rogers (403) 269-8670 2008 Third Quarter 021


($ millions)	Share Capital	Contributed Surplus		Accumulated Other Comprehensive Income (AOCI)		Retained Earnings

At December 31, 2006, as previously reported	794	100		(71	)	8 129
Retroactive adjustment for change in accounting policy (note 2)	—	—		—		132

At December 31, 2006, as restated	794	100		(71	)	8 261
Net earnings	—	—		—		1 941
Dividends paid on common shares	—	—		—		(120	)
Issued for cash under stock option plan	53	(9	)	—		—
Issued under dividend reinvestment plan	9	—		—		(9	)
Stock-based compensation expense	—	62		—		—
Income tax benefit of stock option deduction in the U.S.	—	2		—		—
Adjustment to opening retained earnings arising from ineffective portion of cash flow hedges at January 1, 2007	—	—		—		5
Adjustment to opening AOCI arising from effective portion of cash flow hedges at January 1, 2007	—	—		8		—
Change in AOCI related to foreign currency translation	—	—		(186	)	—
Change in AOCI related to derivative hedging activities	—	—		16		—

At September 30, 2007, as restated	856	155		(233	)	10 078

At December 31, 2007, as previously reported	881	194		(253	)	10 791
Retroactive adjustment for change in accounting policy (note 2)	—	—		—		283

At December 31, 2007, as restated	881	194		(253	)	11 074
Net earnings	—	—		—		2 352
Dividends paid on common shares	—	—		—		(134	)
Issued for cash under stock option plan	218	(34	)	—		—
Issued under dividend reinvestment plan	5	—		—		(5	)
Stock-based compensation expense	—	94		—		—
Income tax benefit of stock option deduction in the U.S.	—	9		—		—
Change in AOCI related to foreign currency translation	—	—		93		—
Change in AOCI related to derivative hedging activities	—	—		(2	)	—

At September 30, 2008	1 104	263		(162	)	13 287

Suncor Energy Inc.
022 2008 Third Quarter For more information about Suncor Energy, visit our website www.suncor.com


Third Quarter
	Oil Sands				Natural Gas				Refining and Marketing				Corporate and Eliminations				Total
($ millions)	2008		2007		2008		2007		2008		2007		2008		2007		2008		2007

EARNINGS
Revenues
Operating revenues	2 339		1 618		201		120		2 841		2 169		3		1		5 384		3 908
Energy marketing and trading activities	—		—		—		—		3 594		907		(44	)	(23	)	3 550		884
Intersegment revenues	315		94		15		1		—		—		(330	)	(95	)	—		—
Interest	—		—		—		—		—		—		12		10		12		10

	2 654		1 712		216		121		6 435		3 076		(359	)	(107	)	8 946		4 802

Expenses
Purchases of crude oil and products	175		68		—		—		2 516		1 715		(390	)	(69	)	2 301		1 714
Operating, selling and general	799		604		44		35		170		160		(15	)	15		998		814
Energy marketing and trading activities	—		—		—		—		3 495		906		(1	)	(24	)	3 494		882
Transportation and other costs	48		32		6		6		7		8		—		—		61		46
Depreciation, depletion and amortization	151		126		59		43		40		38		13		9		263		216
Accretion of asset retirement obligations	14		10		2		2		—		—		—		—		16		12
Exploration	7		—		23		9		—		—		—		—		30		9
Royalties (note 11)	249		145		52		25		—		—		—		—		301		170
Taxes other than income taxes	28		24		2		1		140		140		—		—		170		165
Loss (gain) on disposal of assets	11		—		2		(1	)	(2	)	—		(7	)	—		4		(1	)
Project start-up costs	8		24		—		—		—		2		—		—		8		26
Financing expenses (income)	—		—		—		—		—		—		156		(100	)	156		(100	)

	1 490		1 033		190		120		6 366		2 969		(244	)	(169	)	7 802		3 953

Earnings (loss) before income taxes	1 164		679		26		1		69		107		(115	)	62		1 144		849
Income taxes	(310	)	(185	)	(8	)	(1	)	(23	)	(38	)	12		2		(329	)	(222	)

Net earnings (loss)	854		494		18		—		46		69		(103	)	64		815		627

Suncor Energy Inc.
Inquiries John Rogers (403) 269-8670 2008 Third Quarter 023


Third Quarter
				Oil Sands				Natural Gas				Refining and Marketing				Corporate and Eliminations				Total
($ millions)				2008		2007		2008		2007		2008		2007		2008		2007		2008		2007

CASH FLOW BEFORE FINANCING ACTIVITIES
Cash flow from (used in) operating activities:
	Cash flow from (used in) operations
		Net earnings (loss)		854		494		18		—		46		69		(103	)	64		815		627
		Exploration expenses		—		—		19		2		—		—		—		—		19		2
		Non-cash items included in earnings
			Depreciation, depletion and amortization	151		126		59		43		40		38		13		9		263		216
			Future income taxes	149		140		4		—		(8	)	13		(8	)	—		137		153
			Loss (gain) on disposal of assets	11		—		2		(1	)	(2	)	—		(7	)	—		4		(1	)
			Stock-based compensation expense	12		12		1		1		4		7		8		4		25		24
			Other	(13	)	—		—		2		4		—		145		(122	)	136		(120	)
		Increase (decrease) in deferred credits and other		(55	)	57		—		—		1		(1	)	1		—		(53	)	56

Total cash flow from (used in) operations				1 109		829		103		47		85		126		49		(45	)	1 346		957
Decrease (increase) in operating working capital				647		75		105		1		(706	)	(169	)	(163	)	(244	)	(117	)	(337	)

Total cash flow from (used in) operating activities				1 756		904		208		48		(621	)	(43	)	(114	)	(289	)	1 229		620

Cash from (used in) investing activities:
	Capital and exploration expenditures			(1 732	)	(1 227	)	(77	)	(67	)	(49	)	(101	)	(11	)	(22	)	(1 869	)	(1 417	)
	Deferred maintenance shutdown expenditures			(59	)	(42	)	(3	)	—		(28	)	(16	)	—		—		(90	)	(58	)
	Deferred outlays and other investments			(6	)	—		—		—		—		2		3		(16	)	(3	)	(14	)
	Proceeds from disposals			—		—		1		5		—		—		7		—		8		5
	Decrease (increase) in investing working capital			69		224		—		—		(1	)	4		(7	)	—		61		228

Total cash (used in) investing activities				(1 728	)	(1 045	)	(79	)	(62	)	(78	)	(111	)	(8	)	(38	)	(1 893	)	(1 256	)

Net cash surplus (deficiency) before financing activities				28		(141	)	129		(14	)	(699	)	(154	)	(122	)	(327	)	(664	)	(636	)

Suncor Energy Inc.
024 2008 Third Quarter For more information about Suncor Energy, visit our website www.suncor.com


Nine months ended September 30
	Oil Sands				Natural Gas				Refining and Marketing				Corporate and Eliminations				Total
($ millions)	2008		2007		2008		2007		2008		2007		2008		2007		2008		2007

EARNINGS
Revenues
Operating revenues	6 022		4 395		572		400		7 642		6 206		13		4		14 249		11 005
Energy marketing and trading activities	—		—		—		—		8 728		2 376		(109	)	(25	)	8 619		2 351
Intersegment revenues	1 045		388		45		9		—		—		(1 090	)	(397	)	—		—
Interest	—		—		—		—		—		4		25		20		25		24

	7 067		4 783		617		409		16 370		8 586		(1 161	)	(398	)	22 893		13 380

Expenses
Purchases of crude oil and products	336		137		—		—		6 311		4 534		(1 148	)	(367	)	5 499		4 304
Operating, selling and general	2 156		1 769		123		112		527		511		51		58		2 857		2 450
Energy marketing and trading activities	—		—		—		—		8 612		2 350		(4	)	(27	)	8 608		2 323
Transportation and other costs	140		96		13		15		22		23		—		—		175		134
Depreciation, depletion and amortization	412		334		169		128		148		117		34		31		763		610
Accretion of asset retirement obligations	41		30		6		5		1		1		—		—		48		36
Exploration	16		13		57		65		—		—		—		—		73		78
Royalties (note 11)	661		401		143		89		—		—		—		—		804		490
Taxes other than income taxes	81		65		5		4		400		417		1		1		487		487
Loss (gain) on disposal of assets	13		—		(22	)	(1	)	2		1		(7	)	—		(14	)	—
Project start-up costs	29		47		—		—		—		5		—		—		29		52
Financing expenses (income)	—		—		—		—		—		—		241		(185	)	241		(185	)

	3 885		2 892		494		417		16 023		7 959		(832	)	(489	)	19 570		10 779

Earnings (loss) before income taxes	3 182		1 891		123		(8	)	347		627		(329	)	91		3 323		2 601
Income taxes	(882	)	(453	)	(34	)	8		(115	)	(214	)	60		(1	)	(971	)	(660	)

Net earnings (loss)	2 300		1 438		89		—		232		413		(269	)	90		2 352		1 941

As at September 30
TOTAL ASSETS	23 161		16 739		1 807		1 724		5 681		4 545		(118	)	(229	)	30 531		22 779

Suncor Energy Inc.
Inquiries John Rogers (403) 269-8670 2008 Third Quarter 025


Nine months ended September 30
				Oil Sands				Natural Gas				Refining and Marketing				Corporate and Eliminations				Total
($ millions)				2008		2007		2008		2007		2008		2007		2008		2007		2008		2007

CASH FLOW BEFORE FINANCING ACTIVITIES
Cash flow from (used in) operating activities:
	Cash flow from (used in) operations
		Net earnings (loss)		2 300		1 438		89		—		232		413		(269	)	90		2 352		1 941
		Exploration expenses		—		—		48		54		—		—		—		—		48		54
		Non-cash items included in earnings
			Depreciation, depletion and amortization	412		334		169		128		148		117		34		31		763		610
			Future income taxes	515		252		20		(8	)	72		106		(42	)	(4	)	565		346
			Loss (gain) on disposal of assets	13		—		(22	)	(1	)	2		1		(7	)	—		(14	)	—
			Stock-based compensation expense	47		30		3		3		15		15		29		14		94		62
			Other	(29	)	(13	)	(3	)	6		14		—		185		(237	)	167		(244	)
		Increase (decrease) in deferred credits and other		(65	)	45		—		(1	)	2		(4	)	—		—		(63	)	40

Total cash flow from (used in) operations				3 193		2 086		304		181		485		648		(70	)	(106	)	3 912		2 809
Decrease (increase) in operating working capital				183		422		41		12		(542	)	(239	)	(351	)	(379	)	(669	)	(184	)

Total cash flow from (used in) operating activities				3 376		2 508		345		193		(57	)	409		(421	)	(485	)	3 243		2 625

Cash from (used in) investing activities:
	Capital and exploration expenditures			(4 581	)	(3 138	)	(241	)	(425	)	(103	)	(224	)	(20	)	(42	)	(4 945	)	(3 829	)
	Deferred maintenance shutdown expenditures			(318	)	(98	)	(5	)	(1	)	(49	)	(28	)	—		—		(372	)	(127	)
	Deferred outlays and other investments			(37	)	1				—				—		1		(16	)	(36	)	(15	)
	Proceeds from disposals			—		—		26		5		—		1		7		—		33		6
	Decrease (increase) in investing working capital			260		314		—		—		(14	)	(27	)	(7	)	—		239		287

Total cash (used in) investing activities				(4 676	)	(2 921	)	(220	)	(421	)	(166	)	(278	)	(19	)	(58	)	(5 081	)	(3 678	)

Net cash surplus (deficiency) before financing activities				(1 300	)	(413	)	125		(228	)	(223	)	131		(440	)	(543	)	(1 838	)	(1 053	)

Suncor Energy Inc.
026 2008 Third Quarter For more information about Suncor Energy, visit our website www.suncor.com

These interim consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles and follow the same accounting policies and methods of computation as, and should be read in conjunction with, the most recent annual financial statements, except for the accounting policy changes as described in note 2, Changes in Accounting Policies. Certain information and disclosures normally required to be included in notes to the annual consolidated financial statements have been condensed or omitted.

In the opinion of management, these interim consolidated financial statements contain all adjustments of a normal and recurring nature necessary to present fairly Suncor Energy Inc.'s (Suncor) financial position at September 30, 2008 and the results of its operations and cash flows for the three and nine month periods ended September 30, 2008 and 2007.

Certain prior period comparative figures have been reclassified to conform to the current period presentation.

On January 1, 2008, the company retroactively adopted the Canadian Institute of Chartered Accountants (CICA) Handbook section 3031 "Inventories". Under the new standard, the use of a LIFO (last-in-first-out) based valuation approach for inventory has been eliminated. The standard also required any impairment to net realizable value of inventory to be written down at each reporting period, with subsequent reversals when applicable. The company transitioned to a FIFO (first-in-first-out) based valuation approach for inventory effective January 1, 2008. The impact of adopting this accounting standard is as follows:

Suncor Energy Inc.
Inquiries John Rogers (403) 269-8670 2008 Third Quarter 027

On January 1, 2008, the company adopted CICA Handbook section 1535 "Capital Disclosures". This section establishes disclosure requirements for management's policies and processes in defining and managing its capital. There was no financial impact to previously reported financial statements as a result of the implementation of this new standard.

On January 1, 2008, the company adopted CICA Handbook sections 3862 "Financial Instruments – Disclosures" and 3863 "Financial Instruments – Presentation", which enhance existing disclosures for financial instruments. In particular, section 3862 focuses on the identification of risk exposures and the company's approach to management of these risks. There was no financial impact to previously reported financial statements as a result of the implementation of this new standard.

Derivatives are financial instruments that either imitate or counter the price movements of stocks, bonds, currencies, commodities and interest rates. Suncor uses derivatives to reduce (hedge) its exposure to fluctuations in commodity prices and foreign currency exchange rates and to manage interest rate or currency-sensitive assets and liabilities. Suncor also uses derivatives for trading purposes. When used in a trading activity, the company is attempting to realize a gain on the fluctuations in the market value of the derivative.

Forwards and futures are contracts to purchase or sell a specific item at a specified date and price. When used as hedges, forwards and futures help to manage the exposure to losses that could result if commodity prices, foreign currency exchange rates, or interest rates change adversely.

An option is a contract where its holder, for a fee, has purchased the right (but not the obligation) to buy or sell a specified item at a fixed price during a specified period. Options used as hedges help to protect against adverse changes in commodity prices, interest rates, or foreign currency exchange rates.

A costless collar is a combination of two option contracts that limit the holder's exposure to changes in prices to within a specific range. The "costless" nature of this derivative is achieved by buying a put option (the right to sell) for consideration equal to the premium received from selling a call option (the right to purchase).

A swap is a contract where two parties exchange commodity, currency, interest or other payments in order to alter the nature of the payments. For example, fixed interest rate payments on debt may be converted to payments based on a floating interest rate, or vice versa; a domestic currency debt may be converted to a foreign currency debt.

Hedge accounting is a method for recognizing the gains, losses, revenues and expenses associated with the items in a hedging relationship at the time when the underlying transaction impacts earnings. Suncor has elected to use hedge accounting on certain derivatives linked to future commodity and financial transactions.

The company's financial instruments in the Consolidated Balance Sheets consist of cash and cash equivalents, accounts receivable, derivative contracts, substantially all current liabilities (except for the current portions of asset retirement and pension obligations), and long-term debt. Unless otherwise noted, carrying values reflect the current fair value of the company's financial instruments.

The estimated fair values of recognized financial instruments have been determined based on the company's assessment of available market information and appropriate valuation methodologies based on industry accepted third-party models; however, these estimates may not necessarily be indicative of the amounts that could be realized or settled in a current market transaction.

The company's fixed-term debt is accounted for under the amortized cost method. Upon initial recognition, the cost of the debt is its fair value, adjusted for any associated transaction costs. We do not recognize gains or losses arising from changes in the fair value of this debt until the gains or losses are realized. Gains or losses on our U.S. dollar denominated long-term debt resulting from changes in the exchange rate are recognized in the period in which they occur. At September 30, 2008, the carrying value of our fixed-term debt accounted for under the amortized cost method was $5.8 billion (fair value – $4.9 billion).

Suncor Energy Inc.
028 2008 Third Quarter For more information about Suncor Energy, visit our website www.suncor.com

Suncor periodically enters into derivative financial instrument contracts such as interest rate swaps as part of its risk management strategy to manage its exposure to benchmark interest rate fluctuations. The interest rate swap contracts involve an exchange of floating rate versus fixed rate interest payments between the company and investment grade counterparties. The differentials on the exchange of periodic interest payments are recognized in the accounts as an adjustment to interest expense. The fair value of the underlying debt is adjusted by the fair value change in the derivative financial instrument with the offset to interest expense. At September 30, 2008, the company had interest rate derivatives classified as fair value hedges outstanding for up to 3 years relating to fixed-rate debt. There was no ineffectiveness recognized on interest rate swaps designated as fair value hedges during the three and nine month periods ended September 30, 2008 (no ineffectiveness during the three and nine month periods ended September 30, 2007). The fair value of interest rate swap contracts outstanding at September 30, 2008 is detailed in note 12, Long-term debt.

The company periodically enters into derivative contracts to hedge risks specific to individual transactions. The differentials between the fair value of the hedged transactions and the fair value of the derivative contracts are recognized in the accounts as an adjustment to operating revenues. The earnings impact associated with hedge ineffectiveness on derivative contracts to hedge risks specific to individual transactions during the three month period ended September 30, 2008 was a loss of $1 million, net of income taxes of $1 million (2007 – nil). During the nine month period ended September 30, 2008, the earnings impact was a loss of $4 million, net of income taxes of $2 million (2007 – nil).

Suncor operates in a global industry where the market price of its petroleum and natural gas products is largely determined based on floating benchmark indices. The company periodically enters into derivative financial instrument contracts such as forwards, futures, swaps, options and costless collars to hedge against the potential adverse impact of changing market prices due to changes in the underlying indices. Specifically, the company manages crude sales price variability by entering into West Texas Intermediate (WTI) derivative transactions, and manages variability in market interest rates and foreign exchange rates during periods of debt issuance through the use of interest rate locks and foreign exchange forward contracts.

At September 30, 2008, the company had hedged a portion of its forecasted U.S. dollar denominated cash flows subject to U.S. dollar WTI commodity risk for 2008, as well as cash flows related to natural gas production in 2008.

There was no earnings impact associated with realized and unrealized hedge ineffectiveness on derivative contracts designated as cash flow hedges during the three month period ended September 30, 2008 (2007 – gain of $2 million), and there was also no earnings impact during the nine month period ended September 30, 2008 (2007 – loss of $4 million, net of income taxes of $2 million).

Certain derivative contracts do not require the payment of premiums or cash margin deposits prior to settlement. On settlement, these contracts result in cash receipts or payments by the company for the difference between the contract and market rates for the applicable dollars and volumes hedged during the contract term. Such cash receipts or payments offset corresponding decreases or increases in the company's sales revenues or crude oil purchase costs. For collars, if market rates are not different than, or are within the range of contract prices, the options contracts making up the collar will expire with no exchange of cash.

Suncor Energy Inc.
Inquiries John Rogers (403) 269-8670 2008 Third Quarter 029

The fair value of hedging derivative financial instruments as recorded, is the estimated amount that the company would receive (pay) to terminate the hedging derivative contracts. Such amounts, which also represent the unrealized gain (loss) on the contracts, were as follows:

A reconciliation of changes in AOCI attributable to derivative hedging activities for the nine month period ending September 30, 2008 is as follows:

Suncor also periodically enters into derivative financial instruments such as options, basis swaps, and heat rate swaps that either do not qualify for hedge accounting treatment or hedges that Suncor has not elected to document as part of a qualifying hedge relationship. These financial instruments are accounted for using the mark-to-market method and, as such, these derivative instruments are recorded at fair value at each balance sheet date. The earnings impact associated with these contracts for the three month period ended September 30, 2008, was a gain of $54 million, net of income taxes of $22 million (2007 – a gain of less than $1 million, net of income taxes of less than $1 million). During the nine month period ended September 30, 2008, the earnings impact was a loss of $6 million net of income taxes of $2 million (2007 – a loss of $2 million, net of income taxes of $1 million).

In addition to the financial derivatives used for hedging activities, the company uses physical and financial energy contracts, including swaps, forwards and options to earn trading and marketing revenues. These energy contracts are comprised of crude oil, natural gas, heating oil and gasoline contracts. Financial energy trading activities are accounted for using the mark-to-market method. Physical energy marketing contracts involve activities intended to enhance prices and satisfy physical deliveries to customers. The results of these activities are reported as revenue and as energy marketing and trading expenses in the Consolidated Statements of Earnings

Suncor Energy Inc.
030 2008 Third Quarter For more information about Suncor Energy, visit our website www.suncor.com

and Comprehensive Income. Net pretax earnings (loss) for the three and nine month periods ended September 30 for our energy and trading activities in our refining and marketing segment were as follows:

The fair value of unsettled (unrealized) energy derivative assets and liabilities, which includes all financial contracts referenced in section (c) & (d) above are as follows:

The company is exposed to a number of different financial risks arising from normal course business exposures, as well as the company's use of financial instruments. These risk factors include market risks relating to commodity prices, foreign currency risk and interest rate risk, as well as liquidity risk and credit risk.

The company maintains a formal governance process to manage its financial risks. Our Risk Management Committee (RMC) is charged with the oversight of the company's risk management for trading risk management activities which are defined as strategic hedging, optimization trading, marketing and speculative trading. The RMC, acting under board authority, meets regularly to monitor limits on risk exposures, review policy compliance and validate risk-related methodologies and procedures. All risk management activity is carried out by specialist teams that have the appropriate skills, experience and supervision with the appropriate financial and management controls, and is unchanged from the prior year.

Market risk is the risk or uncertainty arising from possible market price movements and their impact on the future performance of the business. The market price movements that could adversely affect the value of the company's financial assets, liabilities and expected future cash flows include commodity price risk (crude oil, natural gas and electricity price), foreign currency exchange risk and interest rate risk.

Suncor Energy Inc.
Inquiries John Rogers (403) 269-8670 2008 Third Quarter 031

The company's financial performance is closely linked to crude oil prices (including pricing differentials for various product types), and to a lesser extent, natural gas and electricity prices. The company's policies permit the use of various financial instruments in managing these price exposures. Our strategic crude oil hedging program gives management approval to fix a price or range of prices for approximately 30% of the total crude oil planned production for specified periods of time. Historically, the company has leveraged hedging instruments to stabilize cash flows during periods of growth and expansion. The company will consider additional strategic hedging opportunities as they become available.

A key component of our overall business strategy is to produce sufficient natural gas to meet or exceed internal demands for natural gas purchased for consumption in our oil sands operation, thus creating a price hedge which reduces our exposure to natural gas price volatility. In addition, existing corporate policies also permit the hedging of natural gas exposures to manage regional price differentials and pricing indexes as identified.

Changes in commodity prices on our financial contracts would have the following impact on our net earnings and other comprehensive income for the three months ended September 30, 2008:

The company is exposed to changes in foreign exchange rates as revenues, capital expenditures, or financial instruments may fluctuate due to changing rates. As crude oil, the company's primary product, is priced in U.S. dollars, fluctuations in US$/Cdn$ exchange rates may have a significant impact on revenues. The company's exposure is partially offset through the issuance of U.S. dollar denominated long-term debt (refer to note 12) and by sourcing capital projects in U.S. dollars. The company does not currently hedge foreign currency risk on estimated revenues. The effect of a $0.01 change in the US$/Cdn$ exchange rate on our U.S. dollar denominated long-term debt would change after-tax earnings by approximately $40 million.

Where an operating unit has substantial exposure to capital expenditures in currencies other than the U.S. dollar, the company may hedge these risks through a combination of forward and option instruments. Transactions in the applicable financial market are executed consistent with established risk management policies.

The company is exposed to interest rate risk as changes in interest rates may affect future cash flows and the fair values of its financial instruments. The primary exposure is related to notes and commercial paper. The company seeks to optimize this risk through the use of interest rate swaps by swapping fixed rates of interest for variable rates (see – fair value hedges) and other derivative instruments.

To optimize the company's position with respect to interest expense, the company targets 30% to 50% of interest should be based on floating rates. Over time this floating/fixed rate mix will fluctuate based on prevailing market conditions and management's assessment of overall risk.

The proportion of floating interest rate exposure inclusive of interest rate swaps at September 30, 2008 was 8% of total debt outstanding. The weighted average interest rate on total debt for the quarter ending September 30, 2008 was 6.2%.

Suncor Energy Inc.
032 2008 Third Quarter For more information about Suncor Energy, visit our website www.suncor.com

The company's cash flows are sensitive to changes in interest rates on the floating rate portion of the company's debt. Given our current growth and expansion plans, all interest is currently being capitalized and therefore there is no earnings impact. If the interest rates applicable to floating rate instruments were to have increased by 1%, it is estimated that the company's cash flow for the quarter would decrease by approximately $1 million. This assumes that the amount and mix of fixed and floating rate debt remains unchanged from September 30, 2008, and that the change in interest rates is effective from the beginning of the period.

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company believes that it has access to sufficient capital through internally generated cash flows and external sources (bank credit markets and debt capital markets), and to undrawn committed borrowing facilities to meet current spending forecasts.

Surplus cash is invested into a range of short-dated money market securities and the company seeks to ensure the security and liquidity of those investments. Investments are only permitted in high credit quality government or corporate securities. Diversification of these investments is supported through maintaining counterparty credit limits.

The following table shows the timing of cash outflows relating to trade and other payables and finance debt.

Credit risk is the risk that a customer or counterparty will fail to perform an obligation or fail to pay amounts due causing a financial loss. We have a credit policy that is designed to ensure there is a standard credit practice throughout the company to measure and monitor credit risk. The policy outlines delegation of authority, the due diligence process required to approve a new customer or counterparty and the maximum amount of credit exposure per single entity. Before transactions begin with a new customer or counterparty, its creditworthiness is assessed, a credit rating is assigned and a maximum credit limit is allocated. The assessment process is outlined in the credit policy and considers both quantitative and qualitative factors. The company constantly monitors the exposure to any single customer or counterparty along with the financial position of the customer or counterparty. If it is deemed that a customer or counterparty has become materially weaker, the company will work to reduce the credit exposure and lower the credit limit allocated. Regular reports are generated to monitor credit risk and the Credit Committee meets quarterly to ensure compliance with the credit policy and review the exposures.

A substantial portion of the company's accounts receivable are with customers in the oil and gas industry and are subject to normal industry credit risk. At September 30, 2008, substantially all of the company's trade receivables were current, and there were no counterparties that individually constituted more than 10% of the outstanding balance.

The company may be exposed to certain losses in the event that counterparties to derivative financial instruments are unable to meet the terms of the contracts. The company's exposure is limited to those counterparties holding derivative contracts with positive fair values at the reporting date. At September 30, 2008, the company's exposure was $165 million (December 31, 2007 – $38 million).

Suncor Energy Inc.
Inquiries John Rogers (403) 269-8670 2008 Third Quarter 033

Suncor's primary capital management objective is to maintain a solid investment-grade credit rating profile. This objective affords the company the financial flexibility and access to the capital it requires to execute on its growth objectives.

Suncor monitors capital through two key ratios: net debt to cash flow from operations and total debt to total debt plus shareholders' equity.

Net debt to cash flow from operations is calculated as short-term debt plus long-term debt less cash and cash equivalents divided by 12 month trailing cash flow from operations.

Total debt to total debt plus shareholders' equity is calculated as short term-debt plus long-term debt divided by short-term debt plus long-term debt plus shareholders' equity.

Suncor's strategy during Q3 2008, which was unchanged from 2007, was to maintain the measure set out in the following schedule. Suncor believes that maintaining our capital target helps to provide the company access to capital at a reasonable cost by maintaining solid investment-grade credit ratings.

At September 30, ($ millions)

Capital Measure
Target

2008

2007

Components of ratios

Short-term debt

Long-term debt

6 568

3 468

Total debt

6 575

3 473

Cash and equivalents

1 315

716

Net debt

5 260

2 757

Shareholders' equity

14 492

10 856

Total capitalization (total debt + shareholders' equity)

21 067

14 329

Cash flow from operations (trailing 12 months)

5 112

3 521

Net debt/cash flow from operations

<2.0 times

1.0

0.8

Total debt/total debt plus shareholders' equity

31%

24%

Suncor Energy Inc.
034 2008 Third Quarter For more information about Suncor Energy, visit our website www.suncor.com

Third quarter

Nine months ended
September 30

($ millions)

2008

2007
(restated)

2008

2007
(restated)

Net earnings

815

627

2 352

1 941

(millions of common shares)

Weighted-average number of common shares

935

923

930

922

Dilutive securities:

Options issued under stock-based compensation plans

Weighted-average number of diluted common shares

953

943

948

942

(dollars per common share)

Basic earnings per share ^(a)

0.87

0.68

2.53

2.11

Diluted earnings per share ^(b)

0.86

0.66

2.48

2.06

A common share option gives the holder the right, but not the obligation, to purchase common shares at a predetermined price over a specified period of time.

After the date of grant, employees and non-employee directors that hold options must earn the right to exercise them. This is done by the holder fulfilling a time requirement for service to the company, and with respect to certain options, is subject to accelerated vesting should the company meet predetermined performance criteria. Once this right has been earned, these options are considered vested.

The predetermined price at which an option can be exercised is equal to or greater than the market price of the common shares on the date the option is granted.

A performance vesting share unit is an award entitling employees to receive cash to varying degrees contingent upon Suncor's shareholder return relative to a peer group of companies.

A restricted share unit is a time-vested award with a three-year term entitling employees to receive cash.

In May 2008, the Company implemented a two-for-one stock split of its issued and outstanding common shares. Information related to common shares, stock-based compensation, and earnings per share has been restated to reflect the impact of the Company's two-for-one stock split.

The company granted 730,000 options in the third quarter of 2008 under its new employee stock-based compensation plan ("SunShare 2012"), for a total of 1,786,000 options granted in the nine months ended September 30, 2008 (15,392,000 options granted in the three and nine months ended September 30, 2007). During the second quarter, in connection with the achievement of a predetermined performance criterion, 25% of the outstanding options vested under the SunShare 2012 plan and will become exercisable on January 1, 2010. The remaining 75% of outstanding options may vest on January 1, 2013 if further specified performance targets are met. All unvested options at January 1, 2013, which have not previously expired or been cancelled, will automatically expire.

Suncor Energy Inc.
Inquiries John Rogers (403) 269-8670 2008 Third Quarter 035

Granting of options under the company's previous employee stock option incentive plan ("SunShare") ended in December 2007. During the third quarter of 2007, 546,000 options were granted to eligible full-time and part-time employees under the SunShare plan (2,066,000 options granted in the first nine months of 2007). Final vesting of all unvested SunShare options occurred on April 30, 2008.

Under this plan, the company granted 42,000 common share options in the third quarter of 2008, for a total of 870,000 options granted in the nine months ended September 30, 2008 (44,000 options granted during the third quarter of 2007; 958,000 granted in the nine months ended September 30, 2007) to non-employee directors and certain executives and other senior members of the company. Options granted have a ten-year life and vest annually over a three-year period.

Under this plan, the company granted 11,000 common share options in the third quarter of 2008, for a total of 2,373,000 options granted in the nine months ended September 30, 2008 (12,000 options granted during the third quarter of 2007; 2,364,000 granted in the nine months ended September 30, 2007) to non-insider senior managers and key employees. Options granted have a ten-year life and vest annually over a three-year period.

The fair values of all common share options granted during the period are estimated as at the grant date using the Monte Carlo simulation approach for the SunShare 2012 option plan and the Black-Scholes option-pricing model for all other option plans. The weighted-average fair values of the options granted during the various periods and the weighted-average assumptions used in their determination are as noted below:

Stock-based compensation expense recognized in the third quarter of 2008 related to stock option plans was $25 million (2007 – $24 million). For the nine months ended September 30, 2008 stock-based compensation expense recognized was $94 million (2007 – $62 million).

Suncor Energy Inc.
036 2008 Third Quarter For more information about Suncor Energy, visit our website www.suncor.com

Common share options granted prior to January 1, 2003 are not recognized as compensation expense in the Consolidated Statements of Earnings. The company's reported net earnings attributable to common shareholders and earnings per share prepared in accordance with the fair value method of accounting for stock-based compensation would have been reduced for all common share options granted prior to 2003 to the pro forma amounts stated below:

Third quarter

Nine months ended
September 30

($ millions, except per share amounts)

2008

2007
(restated)

2008

2007
(restated)

Net earnings – as reported

815

627

2 352

1 941

Less: compensation cost under the fair value method for pre-2003 options

—

Pro forma net earnings

815

624

2 348

1 933

Basic earnings per share

As reported

0.87

0.68

2.53

2.11

Pro forma

0.87

0.68

2.52

2.10

Diluted earnings per share

As reported

0.86

0.66

2.48

2.06

Pro forma

0.86

0.66

2.48

2.05

In the third quarter of 2008, the company issued 2,000 PSUs (2007 – 2,000). For the nine months ended September 30, 2008, the company issued 782,000 PSUs (2007 – 830,000). Recovery recognized in the third quarter of 2008 was $13 million (2007 – $10 million in expense). Recovery recognized for the nine months ended September 30, 2008 was $3 million (2007 – $46 million in expense).

In the third quarter of 2008, the company issued 49,000 RSUs under its new employee stock-based compensation plan. For the nine months ended September 30, 2008, the company issued 1,025,000 RSUs. Expense recognized in the third quarter of 2008 was $1 million and expense recognized for the nine months ended September 30, 2008 was $10 million.

The company's pension plans and other post-retirement benefits programs are described in note 9 of the company's 2007 Annual Report. The following is the status of the net periodic benefit cost for the three and nine months ended September 30.

Suncor Energy Inc.
Inquiries John Rogers (403) 269-8670 2008 Third Quarter 037

During the fourth quarter of 2007, the federal government substantively enacted a 3.5% reduction to its federal corporate tax rates. Accordingly, the company recognized a reduction in future income tax expense of $360 million related to the revaluation of its opening future income tax balances.

During the second quarter of 2007, the federal government substantively enacted a 0.5% reduction to its federal corporate tax rates. Accordingly, the company recognized a reduction in future income tax expense of $67 million related to the revaluation of its opening future income tax balances.

Our current estimation of Alberta Crown royalties is based on regulations currently in effect. Alberta Crown royalties in effect for each oil sands project require payments to the Government of Alberta based on annual gross revenues less related transportation costs (R) less allowable costs (C), including the deduction of certain capital expenditures (the 25% R-C royalty), subject to a minimum payment of 1% of R.

Oil Sands royalties payable in 2008 are highly sensitive to, among other factors, changes in crude oil and natural gas pricing, foreign exchange rates and total capital and operating costs for each project. The oil sands pretax royalty estimate was $661 million for the first nine months of 2008, compared to $401 million for the first nine months of 2007. The balance of the consolidated royalty expense is in respect of natural gas royalties of $143 million (2007 – $89 million).

In 2008, the estimation process for calculating the quarterly royalty provision was changed from being based on an annual estimate to being based on the actual eligible revenues and costs recorded in the period. If the annualized approach was used for 2008, pretax royalties would have been $86 million higher for the first nine months of 2008.

During 2008, the company's $2 billion committed syndicated credit facility was increased to $3.75 billion and its term was extended to 2013, while our $410 million committed bilateral credit facility was reduced to $370 million and had its term extended to 2009.

In May 2008, the company issued 5.80% Medium Term Notes with a principal amount of $700 million under an outstanding $2 billion debt shelf prospectus. These notes bear interest, which is paid semi-annually, and mature on May 22, 2018. The net proceeds received were added to our general funds to repay outstanding commercial paper, which originally funded our working capital needs, sustaining capital expenditures and growth capital expenditures.

In June 2008, the company issued 6.10% Notes with a principal amount of US$1.25 billion and 6.85% Notes with a principal amount of US$750 million under an amended US$3.65 billion debt shelf prospectus. These notes bear interest, which is paid semi-annually, and mature on June 1, 2018, and June 1, 2039, respectively. The net proceeds received were added to our general

Suncor Energy Inc.
038 2008 Third Quarter For more information about Suncor Energy, visit our website www.suncor.com

funds, which are used for our working capital needs, sustaining capital expenditures, growth capital expenditures and to repay outstanding commercial paper borrowings.


($ millions)	September 30 2008		December 31 2007

Fixed-term debt, redeemable at the option of the Company
6.85% Notes, denominated in U.S. dollars, due in 2039 (US$750)	795		—
6.50% Notes, denominated in U.S. dollars, due in 2038 (US$1150)	1 219		1 137
5.95% Notes, denominated in U.S. dollars, due in 2034 (US$500)	530		494
7.15% Notes, denominated in U.S. dollars, due in 2032 (US$500)	530		494
6.10% Notes, denominated in U.S. dollars, due in 2018 (US$1250)	1 324		—
5.39% Series 4 Medium Term Notes, due in 2037	600		600
5.80% Series 4 Medium Term Notes, due in 2018	700		—
6.70% Series 2 Medium Term Notes, due in 2011	500		500

	6 198		3 225
Revolving-term debt, with interest at variable rates
Commercial Paper	318		522

Total unsecured long-term debt	6 516		3 747
Secured long-term debt	14		1
Capital Leases	102		102
Fair value of interest rate swaps	8		6
Deferred financing costs	(72	)	(45	)

Total long-term debt	6 568		3 811

At September 30, 2008, undrawn lines of credit were approximately $3,531 million, as follows:

The components of accumulated other comprehensive loss, net of income taxes, are as follows:

Suncor Energy Inc.
Inquiries John Rogers (403) 269-8670 2008 Third Quarter 039


		2008	2007 (restated)

Cash Flow from Operations
(dollars per common share – basic)
For the three months ended September 30
Cash flow from operations ⁽¹⁾		1.44	1.04

For the nine months ended September 30
Cash flow from operations ⁽¹⁾		4.20	3.05

Ratios
For the twelve months ended September 30
Return on capital employed (%) ⁽²⁾		28.7	24.0
Return on capital employed (%) ⁽³⁾		21.0	17.9

Net debt to cash flow from operations (times) ⁽⁴⁾		1.0	0.8

Interest coverage on long-term debt (times)
	Net earnings ⁽⁵⁾	14.2	18.4
	Cash flow from operations ⁽⁶⁾	18.6	22.9

As at September 30
Debt to debt plus shareholders' equity (%) ⁽⁷⁾		31.2	24.2

Common Share Information ⁽⁸⁾
As at September 30
Share price at end of trading
	Toronto Stock Exchange – Cdn$	44.00	47.23
	New York Stock Exchange – US$	42.14	47.41

Common share options outstanding (thousands)		46 829	55 743

For the nine months ended September 30
Average number outstanding, weighted monthly (thousands)		930 393	921 578

Refer to the Quarterly Operating Summary for a discussion of financial measures not prepared in accordance with Canadian generally accepted accounting principles (GAAP).

Suncor Energy Inc.
040 2008 Third Quarter For more information about Suncor Energy, visit our website www.suncor.com


	For the quarter ended					Nine months ended		Total year
	Sept 30 2008	June 30 2008	Mar 31 2008	Dec 31 2007	Sept 30 2007	Sept 30 2008	Sept 30 2007	Dec 31 2007

OIL SANDS
Production ^(1),(a)
Total production	245.6	174.6	248.0	252.5	239.1	222.6	229.8	235.6
Firebag	40.4	34.7	34.6	40.4	35.8	36.6	35.8	36.9
Sales ^(a)
Light sweet crude oil	48.1	68.2	96.2	102.2	99.3	70.7	101.6	101.7
Diesel	10.9	21.2	28.0	26.0	23.9	20.0	24.6	25.0
Light sour crude oil	157.4	91.8	120.8	118.2	94.1	123.4	96.9	102.3
Bitumen	2.6	0.3	0.1	5.4	6.6	1.0	5.7	5.7

Total sales	219.0	181.5	245.1	251.8	223.9	215.1	228.8	234.7

Average sales price ^{(2), (b)}
Light sweet crude oil	121.96	122.12	100.93	87.34	81.00	112.52	74.87	78.03
Other (diesel, light sour crude oil and bitumen)	114.74	120.52	93.09	78.48	73.76	108.83	67.84	70.86
Total	116.32	121.12	96.16	82.07	76.97	110.04	71.02	74.01
Total *	117.14	122.39	96.22	82.36	76.97	110.70	70.99	74.07
Cash operating costs and Total operating costs – Total operations ^(c)
Cash costs	27.80	40.10	25.10	24.10	23.00	30.00	24.15	24.15
Natural gas	4.30	8.75	5.00	3.60	2.10	5.70	3.55	3.55
Imported bitumen	1.90	2.00	1.45	0.20	—	1.75	0.05	0.10

Cash operating costs ⁽³⁾	34.00	50.85	31.55	27.90	25.10	37.45	27.75	27.80
Project start-up costs	0.35	0.90	0.30	0.55	1.10	0.50	0.75	0.95

Total cash operating costs ⁽⁴⁾	34.35	51.75	31.85	28.45	26.20	37.95	28.50	28.75
Depreciation, depletion and amortization	6.70	8.30	5.75	5.60	5.70	6.75	5.30	5.40

Total operating costs ⁽⁵⁾	41.05	60.05	37.60	34.05	31.90	44.70	33.80	34.15

Cash operating costs and Total operating costs – In-situ bitumen production only ^(c)
Cash costs	10.75	10.10	14.60	9.95	11.85	11.75	11.15	10.85
Natural gas	11.30	14.55	14.10	9.15	9.10	13.25	10.25	9.90

Cash operating costs ⁽⁶⁾	22.05	24.65	28.70	19.10	20.95	25.00	21.40	20.75
In-situ (Firebag) start-up costs	0.80	1.65	0.35	—	—	0.90	—	—

Total cash operating costs ⁽⁷⁾	22.85	26.30	29.05	19.10	20.95	25.90	21.40	20.75
Depreciation, depletion and amortization	5.40	6.70	6.75	6.80	6.70	6.30	5.95	6.20

Total operating costs ⁽⁸⁾	28.25	33.00	35.80	25.90	27.65	32.20	27.35	26.95

(for the period ended)
Capital employed ⁽ⁱ⁾	9 035	7 716	6 837	6 605	6 071
(for the twelve months ended)
Return on capital employed ^(j)	46.0	43.6	44.3	43.0	32.3
Return on capital employed ^(j)****	28.6	27.3	28.0	27.9	21.7

Suncor Energy Inc.
Inquiries John Rogers (403) 269-8670 2008 Third Quarter 041


	For the quarter ended						Nine months ended		Total year
	Sept 30 2008	June 30 2008	Mar 31 2008	Dec 31 2007	Sept 30 2007		Sept 30 2008	Sept 30 2007	Dec 31 2007

NATURAL GAS
Gross production ^**
Natural gas ^(d)	197	205	209	210	193		204	192	196
Natural gas liquids and crude oil ^(a)	2.6	3.4	3.3	3.2	3.1		3.1	3.1	3.1
Total gross production ^(e)	35.4	37.7	38.2	38.2	35.2		37.1	35.0	35.8
Total gross production ^(f)	213	226	229	229	211		223	210	215
Average sales price ⁽²⁾
Natural gas ^(g)	9.10	9.62	7.30	6.08	5.39		8.66	6.41	6.32
Natural gas ^(g) ^*	9.14	9.68	7.31	6.02	5.14		8.70	6.37	6.27
Natural gas liquids and crude oil ^(b)	96.88	86.14	64.14	60.31	58.11		81.37	55.33	56.64
Net wells drilled
Conventional – exploratory ^***	4	2	2	6	1		8	7	14
– development	6	6	7	6	2		19	12	17

	10	8	9	12	3		27	19	31

(for the period ended)
Capital employed ⁽ⁱ⁾	1 120	1 226	1 175	1 153	1 090
(for the twelve months ended)
Return on capital employed ^(j)	10.3	8.3	3.5	2.5	(0.6	)

REFINING AND MARKETING
Refined product sales ^(h)
Transportation fuels
Gasoline – retail	4.5	4.5	4.6	4.9	5.1		4.6	5.3	5.2
– other	11.5	11.8	10.8	11.0	12.0		11.3	11.9	11.6
Distillate	10.6	11.5	10.4	11.0	10.8		10.8	10.5	10.6

Total transportation fuel sales	26.6	27.8	25.8	26.9	27.9		26.7	27.7	27.4
Petrochemicals	1.0	0.9	0.6	0.7	0.9		0.8	1.0	0.9
Asphalt	1.9	1.7	2.2	1.4	2.1		1.9	1.7	1.7
Other	2.5	2.7	1.9	3.8	4.2		2.3	3.4	3.5

Total refined product sales	32.0	33.1	30.5	32.8	35.1		31.7	33.8	33.5

Crude oil supply and refining
Processed at refineries ^(h)	25.1	26.0	23.0	22.1	25.9		24.7	26.1	25.1
Utilization of refining capacity ^(j)	99	102	90	87	102		97	102	98

(for the period ended)
Capital employed ⁽ⁱ⁾	3 289	2 534	2 837	2 489	2 332
(for the twelve months ended)
Return on capital employed ^(j)	9.3	12.6	18.3	20.0	20.9
Return on capital employed ^(j) ^****	9.0	11.6	16.5	17.4	17.9

Suncor Energy Inc.
042 2008 Third Quarter For more information about Suncor Energy, visit our website www.suncor.com

Certain financial measures referred to in the Highlights and Quarterly Operating Summary are not prescribed by Canadian generally accepted accounting principles (GAAP). Suncor includes cash flow from operations, return on capital employed and cash and total operating costs per barrel data because investors may use this information to analyze operating performance, leverage and liquidity. The additional information should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Suncor Energy Inc.
Inquiries John Rogers (403) 269-8670 2008 Third Quarter 043


($ millions)			2008

Facility that is fully revolving for 364 days, has a term period of one year and expires in 2009			370
Facility that is fully revolving for a period of five years and expires in 2013			3 750
Facilities that can be terminated at any time at the option of the lenders			53

Total available credit facilities			4 173

Credit facilities supporting outstanding commercial paper			318
Credit facilities supporting standby letters of credit			324

Total undrawn credit facilities			3 531


(1) Total operations production	–	Total operations production includes total production from both mining and in-situ operations.
(2) Average sales price	–	This operating statistic is calculated before royalties and net of related transportation costs (including or excluding the impact of hedging activities as noted).
(3) Cash operating costs – Total operations	–	Include cash costs that are defined as operating, selling and general expenses (excluding inventory changes), accretion expense, taxes other than income taxes and the cost of bitumen imported from third parties. Per barrel amounts are based on total production volumes. For a reconciliation of this non-GAAP financial measure see Management's Discussion and Analysis.
(4) Total cash operating costs – Total operations	–	Include cash operating costs – Total operations as defined above and cash start-up costs. Per barrel amounts are based on total production volumes.
(5) Total operating costs – Total operations	–	Include total cash operating costs – Total operations as defined above and non-cash operating costs. Per barrel amounts are based on total production volumes.
(6) Cash operating costs – In-situ bitumen production	–	Include cash costs that are defined as operating, selling and general expenses (excluding inventory changes), accretion expense and taxes other than income taxes. Per barrel amounts are based on in-situ production volumes only.
(7) Total cash operating costs – In-situ bitumen production	–	Include cash operating costs – In-situ bitumen production as defined above and cash start-up operating costs. Per barrel amounts are based on in-situ production volumes only.
(8) Total operating costs – In-situ bitumen production	–	Include total cash operating costs – In-situ bitumen production as defined above and non-cash operating costs. Per barrel amounts are based on in-situ production volumes only.


*		Excludes the impact of hedging activities.
**		Currently production is located in the Western Canada Sedimentary Basin.
***		Excludes exploratory wells in progress.
****		If capital employed were to include capitalized costs related to major projects in progress, the return on capital employed would be as stated on this line.


($ millions, increase/(decrease))	As at September 30 2008		As at December 31 2007

Inventories	473		404

Total assets	473		404

Accounts payable and accrued liabilities	(25	)	—
Future income taxes	157		121
Retained earnings	341		283

Total liabilities and shareholders' equity	473		404


($ millions)	2008

AOCI attributable to derivatives and hedging activities, at December 31, 2007, net of income taxes of $4	13
Current year net changes arising from cash flow hedges, net of income taxes of $3	(7	)
Net unrealized hedging losses at the beginning of the year reclassified to earnings during the period, net of income taxes of $2	5

AOCI attributable to derivatives and hedging activities, at September 30, 2008, net of income taxes of $3	11


($ millions)	2008

Fair value of contracts at December 31, 2007	(3	)
Fair value of contracts realized during the period	79
Fair value of contracts entered into during the period	64
Changes in values attributable to market price and other market changes during the period	(12	)

Fair value of contracts outstanding at September 30, 2008	128


	Pension Benefits
	Third Quarter				Nine months ended September 30
	2008		2007		2008		2007

Current service costs	14		13		42		39
Interest costs	12		12		36		34
Expected return on plan assets	(11	)	(11	)	(33	)	(32	)
Amortization of net actuarial loss	6		6		17		18

Net periodic benefit cost	21		20		62		59


	Other Post-Retirement Benefits
	Third Quarter		Nine months ended September 30
	2008	2007	2008	2007

Current service costs	1	1	3	3
Interest costs	2	2	7	6
Amortization of net actuarial loss	1	1	2	2

Net periodic benefit cost	4	4	12	11


(a)	thousands of barrels per day	(d)	millions of cubic feet per day	(g)	dollars per thousand cubic feet
(b)	dollars per barrel	(e)	thousands of barrels of oil equivalent per day	(h)	thousands of cubic metres per day
(c)	dollars per barrel rounded to the nearest $0.05	(f)	millions of cubic feet equivalent per day	(i)	$ millions
				(j)	percentage


Crude oil, refined products, etc.		1m ³ (cubic metre) = approx. 6.29 barrels