Canadian Oil Sands Limited Investor Presentation September 2015
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,…
Syncrude: a high quality asset Established production base Non-declining production profile Current period of low sustaining capital Fully upgraded light, sweet crude oil Proven operator and proven technology Predictable reservoir…
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%…
Outlook has not been updated since August 29 H1 results and 2015 Outlook process incident. See press releases at www.cdnoilsands.com H1 2015 2015 Actual 1 Outlook 2 Sales volume (bbl/d) 92,113 103,700 WTI (US/bbl) 53.34…
Cash flow from operations sensitivities1, 2 Syncrude experienced a process incident on August 29, 2015 No injuries and no damage to major upgrading units Expect return to normalized production rates by end of September COS…
Strong liquidity position Net debt1 was 2.4 billion at June 30 Long-term debt-to-total capitalization1 at 37% No debt maturities until 2019 Credit facilities totalling 1.5 billion, extended to 2019 Recent dividend reduction…
Targeting cost reductions Achieving good progress Operating expenses down 17% from last year1 Capital expenditures down 58% from last year1 Cost savings being realized through Deferral of activity that doesnt impact production,…
Focused on operational performance Rebuild, redesign and expand mine trains Bitumen Production Retrofit, reconfigure and debottleneck bitumen froth treatment Modifications to Flue Gas Desulphurizer Upgrading Improvements to CO…
Major Projects successfully completed On Time Under Budget Under Budget (millions) Aurora Mine Train Relocation 200 Aurora Tailings Management 50 Mildred Lake Mine Train Replacement 400 Centrifuge Tailings Management 50 Savings of…
Mildred Lake Mine Train Replacement
2015 Outlook has not been Significantly lower capex updated since August 29 process incident. See requirements press releases at www.cdnoilsands.com millions, net to Canadian Oil Sands 1,2 1400 Major Projects 1200 Regular…
Dividends reflect free cash flow over time (1,2) millions Annual Total Dividends Cumulative Dividends/FCF 3,4 8,000 2,400 7,000 2,100 Dividends 6,000 1,800 5,000 1,500 Cumulative 4,000 1,200 Dividends 900 3,000 600…
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 share price correlated to oil price 350 300 250 200 COS WTI 150 100 50 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Bloomberg
2015 Outlook has not been updated since August 29 Positioned for oil upside process incident. See press releases at www.cdnoilsands.com Cash flow from operations per share Current 2015 Outlook 1,2 1.58 0.98 0.38 2015F…
COS offers compelling valuation 120,000 Plus, COS offers: Upgrader producing light, sweet crude oil 100,000 All of our reserves and resources 80,000 Producing today 60,000 40,000 20,000 0 Cost to build new COS…
COS highlights 1. Largest ownership in Syncrude, a world-class asset 2. High product quality, declining capex and cost reductions keep Syncrude competitive through the oil price cycle 3. COS well positioned for low oil prices 4. Highly…
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 July 30, 2015 SCO % Mining Bitumen Revenue1 2,488 1,836 Operating expenses (1,497) 80% (1,198) Development expense (138) 70% (97) Capital expenditures3 (381) 45% (171)…
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…
Existing and Proposed Canadian & U.S. Crude Oil Pipelines Source: CAPP, June 2015
WCSB takeaway capacity vs. supply forecast Enbridge Mainline PADD IV Trans Mountain Express Source: CAPP, June 2015
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…
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