Credit Suisse 20th Annual Energy Summit Vail, Colorado February 25-26, 2015 Ryan Kubik Chief Executive Officer
Syncrude: A High Quality Resource Established production base Fully upgraded light, sweet crude oil Proven operator and proven technology Predictable reservoir recovery over 90% Non-declining production profile 40+ year 2P…
2015 Outlook (1) millions /barrel /share Sales 2,387 63.08 Operating expenses 1,521 40.19 Development expenses 151 3.99 Crown royalties 119 3.14 Other expenses 2 163 4.31 Current taxes 65 1.72 Cash flow from operations 368…
Responding to Lower Oil Prices Syncrude cost reductions - Recent oil price decline intensified efforts already underway to achieve a lower cost structure - Potential cost reductions, net to COS of 260 million to 400 million in…
Adjusted Break-Even Costs Based on 2015 Outlook (1,2) CAD /barrel (approximate) Operating expenses 40 Regular maintenance capital expenditures 3 8 Crown royalties 3 Development expenses and reclamation 4 Syncrude break-even cost 55…
Significantly Lower Capex Requirements millions, net to Canadian Oil Sands 1400 Major Projects 1200 Regular Maintenance 1000 800 600 400 200 0 2011 2012 2013 2014 2015F After 2015, no major project spending expected…
Dividends Reflect Free Cash Flow Over Time (1,2) millions Annual Total Dividends Cumulative Dividends/FCF 1. Includes distributions on trust units prior to Dec. 31/10 2. Free cash flow (FCF) is cash flow from operations less…
Strong Liquidity Position Net debt 1.9 billion at the end of 2014 Bond portfolio of USD 1.5 billion - next maturity in 2019 - maintain debt-to-total capitalization of less than 55% - COS long-term debt-to-capitalization at December…
Focused on Operational Performance 2013-14 accomplishments: Replacing/rebuilding mine train equipment completed in Q4 2014 Retrofitting and reconfiguring centrifuges to improve bitumen feed to upgrader completed in Q1 2014…
2015: Focus on Cost and Production Growth Deliver targeted cost reductions and improve profitability Fewer major unplanned outages with more stable operations Fully commission new Mildred Lake Mine trains and demonstrate design…
High Value Syncrude Barrel 2 3 2 29 28 16 Syncrude barrel has larger cuts 37 37 48 of the premium priced 25 26 33 fractions 8 6 1 WTI Bakken Syncrude SCO LPG Naptha Distillate VGO Resid Value (as % of crude price) 65%…
Markets for COS Syncrude Production Kitimat Syncrude Edmonton Burnaby Hardisty Quebec City Montreal Sarnia Chicago Patoka Cushing Current synthetic crude oil markets Houston Potential new markets
COS Demonstrates Compelling Valuation Per flowing bbl of capacity 140,000 COS enterprise value 120,000 reflects mine infrastructure PLUS: 100,000 Upgrader producing light, 80,000 sweet crude oil 60,000 All of our reserves and…
Positioned for Oil Upside Cash flow from operations (per share) Current 2015 Outlook 1 1.36 0.76 0.16 2015F 2015F 2015F USD 45/bbl WTI USD 55/bbl WTI USD 65/bbl WTI Approximately 20% change in oil prices = 80% change in cash…
COS: A Premier Pure-play Oil Sands Investment Ticker: COS on Toronto Stock Exchange Shares outstanding: 484.6 million1 52 week high / low / close1: 24.68/ 6.01 / 11.88 Market cap: 5.8 billion1 Enterprise value: 7.6 billion2…
Syncrude Joint Venture Structure Canadian Oil Sands Imperial Oil 25% (COS) 36.74% Suncor 12% 5% 7.23% Murphy Oil Sinopec Nexen Mocal (CNOOC) (JX Nippon) ExxonMobil and Imperial provide global best practices,…
Mildred Lake Extension (MLX)
Syncrude Crown Royalty Terms* All figures gross to Syncrude Greater of 25% net bitumen revenue less capital and operating costs, or 1% of gross bitumen revenue* Previously based on Synthetic Crude Oil (upgraded from bitumen) revenues…
2015 Crown Royalty Calculation Based on 2015 Outlook provided January 29, 2015 SCO % Mining Bitumen Revenue1 2,387 1,792 Operating expenses (1,521) 85% (1,293) Development expense (151) 70% (106) Capital expenditures3 (419) 60%…
New Royalty Framework Effective January 1, 2016, Syncrude will be subject to the generic Crown royalty framework that applies to most of Albertas oil sands industry Greater of: Gross deemed bitumen revenues less capital and operating…
Quality and Location Differentials Cdn /bbl
Canadian & US Crude Oil Pipeline Proposals Source: CAPP
Canadian Pipeline Capacity vs 2014 Supply Forecast Enbridge Mainline PADD IV Trans Mountain Express Source: CAPP
Syncrude: A Leader in Responsible Oil Sands Development Reflects industry best practices Aboriginal relations Mining Association Toward Sustainable Mining Recognized with Gold Level accreditation by the Canadian Council of Aboriginal…
Wells-to-Wheels CO2 Emissions Average oil sands is only 9% more GHG intensive than average U.S. barrel Source: IHS CERA Special Report Oil Sands Dialogue: Oil Sands, Greenhouse Gases, and US Oil Supply: Getting the Numbers…
Loading...
