All financial figures are unaudited and in Canadian dollars unless noted otherwise. Certain financial measures referred to in this document are not prescribed by Canadian generally accepted accounting principles (GAAP). For a description of these measures, see Non-GAAP Financial Measures on pages 29 to 31. This document makes reference to barrels of oil equivalent (boe). A boe conversion ratio of six thousand cubic feet of natural gas: one barrel of crude oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Accordingly, boe measures may be misleading, particularly if used in isolation.

On August 1, 2009, Suncor Energy Inc. completed its merger with Petro-Canada. As such, the results for the three months ended March 31, 2010 reflect the results of the post-merger Suncor and the comparative figures for the three months ended March 31, 2009 reflect solely the results of legacy Suncor prior to the merger.

Suncor Energy Inc. recorded first quarter 2010 net earnings of $716 million ($0.46 per common share), compared to a net loss of $189 million ($0.20 per common share) for the first quarter of 2009. Operating earnings⁽¹⁾ in the first quarter of 2010 were $287 million ($0.18 per common share), compared to $380 million ($0.41 per common share) in the first quarter of 2009.

The decreased operating earnings were primarily due to reduced production volumes at our oil sands operations, as the company recovered from the impact of two upgrader fires. This was partially offset by additional upstream production, as a result of the merger with Petro-Canada. The company also benefited from higher benchmark crude oil prices in the quarter, partially offset by the stronger Canadian dollar relative to the U.S. dollar.

Cash flow from operations⁽²⁾ was $1.124 billion ($0.72 per common share) in the first quarter of 2010, compared to $801 million ($0.86 per common share) in the first quarter of 2009. The increase in cash flow from operations was primarily due to the increased volumes added as a result of the merger.

Operating earnings is a non-GAAP measure that the company uses to evaluate operating performance, which management believes allows better comparability between periods. Operating earnings is calculated by adjusting net earnings for significant one-time items and items that are not indicative of operating performance. See pages 29 to 31 for a discussion of non-GAAP financial measures.




Three months ended March 31
($ millions, after-tax)		2010		2009

Net earnings (loss) as reported		716		(189	)
	Change in fair value of commodity derivatives used for risk management	(8	)	266
	Unrealized foreign exchange (gain) loss on U.S. dollar denominated long-term debt	(230	)	148
	Mark-to-market valuation of stock-based compensation	(51	)	19
	Project start-up costs	9		11
	Costs related to deferral of growth projects	30		125
	Merger and integration costs	16		—
	Gains on significant disposals	(195	)	—

Operating earnings		287		380

Suncor's total upstream production during the first quarter of 2010 averaged 564,600 barrels of oil equivalent (boe) per day, compared to 314,500 boe per day during the first quarter of 2009. The first quarter of 2010 reflects the results of additional upstream production volumes related to the merger with Petro-Canada, which were not included in the volumes for the first quarter of 2009.

Oil Sands production (excluding proportionate production share from the Syncrude joint venture) contributed an average 202,300 barrels per day (bpd) in the first quarter of 2010, compared to first quarter 2009 production of 278,000 bpd. Production was negatively impacted during the first quarter of 2010, due to unplanned maintenance activities following fires at upgraders in December 2009 and February 2010. Repairs were completed and oil sands upgrading facilities have since returned to full rates.

"While we were slower out of the gate than we'd hoped for this year due to upsets at our oil sands operations, the balance of the business performed well and oil sands production is firmly back on track," said Rick George, president and chief executive officer. "With both upgraders back to full production, we achieved an average oil sands production of approximately 333,000 barrels per day in April – our strongest month on record."

Cash operating costs for our oil sands operations (excluding Syncrude) increased to $54.85 per barrel in the first quarter of 2010, compared to $33.70 per barrel during the first quarter of 2009. The increase in cash operating costs per barrel was primarily a reflection of lower production levels.

Suncor's proportionate production share from the Syncrude joint venture contributed an average of 32,300 bpd of production during the first quarter of 2010.

Natural Gas production averaged 733 million cubic feet equivalent (mmcfe) per day in the first quarter of 2010, compared to 219 mmcfe per day during the first quarter of 2009, primarily due to the addition of Petro-Canada natural gas assets.

International and Offshore production contributed an average 207,800 boe per day during the first quarter of 2010. While production was negatively affected by minor unplanned outages at the company's North Sea operations, and by limitations on production quotas in Libya, all of the East Coast Canada assets exceeded management's production expectations during this quarter.

Total sales of refined petroleum products from Refining and Marketing averaged 82,200 cubic metres per day during the first quarter of 2010 compared to 31,400 cubic metres per day from the legacy Suncor business during the first quarter of 2009, reflecting the merger with Petro-Canada. Operating earnings increased over the same period last year due primarily to increased volumes as a result of the merger, despite a general decline in refining margins.

Suncor Energy Inc.
002 2010 First Quarter For more information about Suncor Energy, visit our website www.suncor.com

Construction was completed ahead of schedule and within budget on the $1.2 billion Ebla gas development in central Syria. Production from the Ebla gas project was introduced into the Syrian gas network in March 2010 and first commercial gas was delivered on April 19, 2010, following the successful completion of the performance testing period. The facility has a planned production capacity of 80 mmcf per day of natural gas in addition to related liquified petroleum gas and condensate volumes.

Construction continued on the Firebag Stage 3 in-situ oil sands project. The planned $3.6 billion expansion is expected to achieve first production during the second quarter of 2011, with volumes ramping up over an estimated 18-month period toward a planned production capacity of approximately 62,500 bpd of bitumen per day.

In March, the Alberta Energy Resources Conservation Board approved Suncor's application to develop three additional stages of its Firebag project. Firebag Stages 4, 5 and 6 each have a planned production capacity of approximately 62,500 bpd. Engineering and planning activities related to Firebag Stage 4 continued during the first quarter to support a target of first bitumen production in the fourth quarter of 2012.

"Regulatory approval for Firebag Stages 4 to 6 provides additional depth to an already substantial portfolio of growth projects," said George. "We'll continue to review that portfolio and expect to outline the next stages of our growth strategy by the end of the year."

In addition to work on expansion of the Firebag project, work is also underway on an extension to the East Coast Canada White Rose field (of which Suncor has a 26.125% interest); expansion of the company's St. Clair ethanol plant; and construction of a naphtha unit, designed to increase the value of the company's Oil Sands product mix.

"We have confirmed our capital synergy target of $1 billion per year through improved sequencing and timing of our projects, a larger pool of high-quality projects to pick from, and capital savings realized as a result of our two companies coming together," said George.

As part of its strategic business alignment, Suncor continued with plans to divest of a number of non-core assets. To date, Suncor has disposed of, or reached agreements to dispose of, assets for aggregate consideration of approximately $1.5 billion.

Remaining proposed divestments include certain natural gas assets in Western Canada and non-core North Sea assets, including all assets in The Netherlands. While the timeline for the divestment of assets remains flexible, Suncor expects most of the remaining sales to occur during 2010. The proceeds of these, and previous sales, are planned to go towards reducing the company's debt.

"From refocusing our asset base and reducing debt, to realizing synergies and aligning processes and platforms across the company – merger integration is on plan and proceeding well," said George.

Suncor's outlook provides management's targets for 2010 in certain key areas of the company's business. Users of this forward-looking information are cautioned that actual results may vary materially from the targets disclosed. Readers are cautioned against placing undue reliance on this outlook.

The following operational outlook has been revised from the operational outlook, previously issued by management on February 2, 2010. The revisions are principally as follows:

Suncor Energy Inc.
Inquiries John Rogers (403) 269-8670 2010 First Quarter 003

The foregoing changes have also had a corresponding impact on the total production outlook which has been adjusted to 608,000 boe per day (+/-5%) from 644,000 boe per day (+/-5%) and total production related to remaining targeted divestures, which has been adjusted to 70,000 boe per day from 75,000 boe per day.


		Three Month Actuals Ended March 31, 2010	2010 Full Year Outlook

Total production (boe per day) – before remaining targeted divestitures ⁽¹⁾		564,600	608,000 (+/-5%)
Total production (boe per day) – related to remaining targeted divestitures ⁽¹⁾		N/A	70,000

Oil Sands ⁽²⁾
Production (bpd)		202,300	280,000 (+/-5%)
Sales ⁽³⁾
	Diesel	7%	9%
	Sweet	31%	36%
	Sour	41%	46%
	Bitumen	21%	9%
Realization on crude sales basket ^(3), ⁽⁴⁾		WTI @ Cushing less Cdn$8.86 per barrel	WTI @ Cushing less Cdn$7.00 to Cdn$8.00 per barrel
Cash operating costs ⁽⁵⁾		$54.85 per barrel	$38 to $42 per barrel

Syncrude production (bpd)		32,300	38,000 (+/-5%)

Natural Gas
	Production ⁽⁶⁾ (mmcfe per day) – before remaining targeted divestitures ⁽¹⁾	733	580 (+/-5%)
	Production ⁽⁶⁾ (mmcfe per day) – related to remaining targeted divestitures ⁽¹⁾	N/A	180
	Natural gas	89%	91%
	Crude oil and liquids	11%	9%

East Coast Canada
	Production (bpd)	74,600	60,000 (+/-5%)

International
	Production (boe per day) – before targeted divestitures ⁽¹⁾	133,200	133,000 (+/-5%)
	Production (boe per day) – related to targeted divestitures ⁽¹⁾	N/A	40,000
	Crude oil and liquids ⁽¹⁾	85%	84%
	Natural gas ⁽⁷⁾	15%	16%

Suncor Energy Inc.
004 2010 First Quarter For more information about Suncor Energy, visit our website www.suncor.com

This outlook is based on Suncor's current estimates, projections and assumptions for the 2010 fiscal year and is subject to change. Assumptions are based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be relevant. Assumptions for the Oil Sands 2010 full year outlook include reliability and operational efficiency initiatives which we expect to minimize further unplanned maintenance in 2010. Assumptions for the Natural Gas, East Coast Canada and International 2010 full year outlook include reservoir performance, drilling results, facility reliability, changes in production quotas and successful execution of planned turnarounds.

Factors that could potentially impact Suncor's operational and financial performance for 2010 include, but are not limited to:

The preceding paragraphs and tables contain forward-looking information that is subject to a number of risks and uncertainties, many of which are beyond the company's control. For additional information on risks, uncertainties and other factors that could cause actual results to differ, please see page 31.

Suncor Energy Inc.
Inquiries John Rogers (403) 269-8670 2010 First Quarter 005


FIRST QUARTER 2010
Report to shareholders for the period ended March 31, 2010