Positioning for Long-Term Growth Investor Information November 2010
Suncor Energy World class growth opportunities: 10-12% in oil sands, 7-8% overall* C53 billion market capitalization** 27 billion barrels of oil equivalent of remaining recoverable resources*** 23 billion barrels of oil sands 4…
Operational Update Highlights Progress on merger integration has met or exceeded plan 1. Divestiture of non-core assets essentially complete Signed PSAs* for 3.5 billion in proceeds, prior to closing adjustments, out of a target…
Operational Update Merger timeline Announced sale of Competition Ontario retail stations Bureau approval Announced sale of New organization Announced sale of The Netherlands and structure and U.S. Rockies assets…
Strategy The Suncor strategy To provide greater reliability and We produce natural gas as flexibility to our feedstock supplies, A staged approach to increasing a natural price hedge we produce bitumen through mining against the…
Strategy Significant oil sands resources Largest resource position in the Athabasca oil sands Attractive assets provide portfolio options and capital synergies 2009 remaining recoverable resources 23 billion barrels* 2P…
Strategy Attractive growth profile underpinned by oil sands Strategic objective to grow oil sands capacity by th 10 12% per annum to 2020* grow e Projects sequenced to deliver highest rates of futur d return, near-term cash…
Strategy Upstream businesses support oil sands growth Natural gas Divesting substantial number of assets to improve efficiency and profitability Strategic review underway for natural gas portfolio East Coast Canada and North Sea…
Strategy Strategic low cost offshore resources Q3/10 Cash Operating Costs per Barrel 40 A balanced portfolio includes maintaining a component of low weighted average 30 cost International & Offshore cash operating cost…
Strategy Downstream integration Approximately 443,000 bpd of refining capacity Higher than average complexity Current and future potential oil sands integration volumes Over 20% of the Canadian downstream market High margin…
Environment Environmental stewardship Water use By 2015, we are targeting to *: More than 90% of water recycled at In Situ operations Reduce fresh water consumption by 12% River water use is now the lowest since 1998 despite…
Environment Tailings Pond 1 reclamation progress Summer 2007 Fall 2008 Fall 2010 Projected 2020 13
Environment Tailings Reduction Operations Reduces need to build additional tailings ponds Anticipate reclaimable surface 10 years after initial disturbance as compared to 30-40 years with consolidated tailings…
Environment Full cycle greenhouse gas emissions GHG emissions range of common U.S. imported crude oils On a life cycle basis, oil 120 sands have similar GHG emissions to other 100 sources of oil g CO2e / MJ gasoline 80…
Financial Financial objectives Targeted ROCE* of 15% in Oil Sands division at US70 WTI Grow long-life oil sands assets and divest non-core assets Strong balance sheet Manage net debt to 2x cash flow from operations through asset…
Financial Current financial position Net debt at Q3/10 11.5 billion Debt rating Investment Grade Near-term debt maturity Cdn 500 million in August 2011 US 300 million in 2013 US 400 million in 2014 17
Financial Planned asset divestitures 104 retail sites in Ontario target 2010 close Natural gas assets U.S. Rockies assets sold to Noble Energy closed March 2010 Non-core northeast B.C. assets sold to Progress Energy closed March…
Financial Operating synergies from merger* Initial forecasts: 300 million per year, later updated to 400 million Final forecast: 800 million run rate per year Operating synergies identified and triggered Workforce rationalization…
Outlook 2010 capital budget 5.5 billion Get started on growth 1.5 billion Optimize sustaining capital 4 billion Spend profile is consistent with key priorities for cost reduction, improved environmental performance, debt repayment…
Outlook Upstream planned turnarounds SU Operated Assets * Start Date Duration Planned Non-Operated Assets * Duration Impact ** Q4/10 U2 1 coker, diluent heaters, gasoil 9-Sep 6 wks 35 kbpd White Rose 3 wks hydrotreater Buzzard…
Delivering value 8,000 Return on investment 7,000 Based on 100 invested March 18, 1992 assuming reinvestment of dividends 6,000 4,970 5,000 4,000 3,142 3,000 2,000 1,000 - 1992 1993 1994 1995 1996 1997…
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