Suncor Energy Investor Information Published October 25, 2017 Fort Hills haul trucks
2 Canadas leading integrated energy company 86B Enterprise value1 September 30, 2017 35+ years 2P Reserve life index2 as at Dec. 31, 2016 668mboepd 99% Oil production YTD 2017 462mbpd Refining capacity Product sales…
3 Investment proposition growing shareholder returns Growth Cash generation Strong production1 increase from projects in flight Significant upside FFO3 sensitivity to WTI, based on TTM4 actuals US49 WTI, 0.76 C/US, US16.39 NYH crack…
4 The foundation of our strategy Operational excellence Optimizing the base business Suncors upgrader reliability journey Multi year journey to reach 90% reliability Safety as a core value 91% 90% 90% Excluding Disciplined cost…
5 Growing production Suncors production growth forecast1,2 (mbpd) 10% Hebron 2016-2019 planned CAGR3 per share 800 E&P 700 Fort Hills 600 Syncrude 500 400 Base Mine 300 U1 U2 200 Base 100 In situ FB 0 2015 2016 2017 2018…
637.05 R&M Cost reductions across the corporation E&P 37.05 R&M Oil 37.05 Sands E&P Poly. R&M (R&M) 37.05 Company OS&G below 2014 levels while production increases 30% Consistent reductions in operating costs C/bbl R&M Oil…
7 Generating discretionary free cash flow1 FFO2 consistently exceeds sustaining capital, associated 2017 sustaining capital and dividend capitalized interest and dividends (C billions) break-even8 8 US 40.00 WTI 6.8 6…
8 Near-term flexible capital allocation plan1 Production Production growth Balance sheet Capital 1 growth Dividend3 Buybacks3 post 2019 leverage metrics to 20192 Defer 40 WTI 4.0B debottlenecking and Upper range None USD…
9 Returning cash to shareholders 15 consecutive years of dividend increases plus opportunistic share buybacks 120 Buyback per share1,2,3,5 2.50 Dividend per share1 WTI US 100 2.00 80 (C/share) 1.50 (US/bbl) Actual…
10 Meaningful, growing and sustainable dividend Dividend growth leader Sustainable dividend growth Five year dividend growth relative to global peers 1 (Q3 2012 Q3 2017) Dividend growth since 2010 200% 200% 120 100 94.90 97.95…
11 Strong balance sheet Conservative debt targets Debt metrics - as at September 30,…
12 Suncor offers growth comparable to tight oil Sustainable production growth through the downturn Year-over-year change, oil sands only for Suncor 60% Capital discipline allowed Suncor to 40% consistently grow production through…
13 Returning cash in line with supermajors Total cash (dividends + buybacks) returned to shareholders US/bbl 20 15 Continued focus on capital discipline 16 13 allows sustainable cash returns for 11 12 shareholders through the…
14 Typical attributes1 of North American oil plays Initial Decline Sustaining Operating Reservoir Recovery Illustrative annual cash flow profiles2 capital rate costs cost risk factor Mining High Very low Very low Medium Very…
15 Regional synergies for existing assets 100% WI Fort Joint ownership Hills Regional synergy opportunities1 T Upgrader feedstock optionality Syncrude Turnaround planning optimization Joslyn C T Unplanned outage impact…
16 Agile capital deployment next generation SAGD development Well pads - saving today CPF - redesigning tomorrow Simplified sustaining well pads, at existing assets, designed with Complete redesign of Central Processing Facility…
17 Replication1 next phase of oil sands organic growth First energy company to receive approval for multiple in situ development phases under the Alberta Energy Regulators trial submission process for Meadow Creek East Phases of 40…
18 Syncrude cost management and collaboration underway Operations Suncor secondee, Doreen Cole, appointed as Managing Director replacing the CEO/President Fire learnings addressed with enhanced winterization processes 125M/year…
19 Fort Hills transitioning to operations December 2017 Operations First oil1 50.8% 5 of 6 Major project areas operating Suncor working interest 98% Staff hired 98.5 mbpd 20% Secondary extraction turned over to operations Suncor…
20 Fort Hills designed for safe, reliable, low-cost ramp-up and operations Based on regional benchmarking, Suncor has invested significant capital to meet or exceed ramp-up and performance targets Investments included in…
21 Fort Hills de-risking startup and production Fort Hills froth production 5 of 6 major project areas transitioned to operations Early commissioning of mine, primary extraction and utilities plants Froth production test runs…
22 Technology development collaboration is key Accelerating technology development and commercialization by leveraging external expertise and solutions Venture capital Evok Innovations - cofounder with 100M of available capital Emerald…
23 ESG leadership Environment Social Governance Resilience through strategy Advancing relations with Leading governance Aboriginal Peoples Stress test carbon strategy against three 500 million equity partnership with First 10 of…
24 Appendix
25 2017 Capital and production guidance1 2017 Capital2 Growth capital3 Production4 millions percent boepd Upstream5 4,735 4,875 60% 420,000 450,000 Oil Sands operations Downstream 625 675 0% 130,000 145,000 Syncrude Corporate 40 50…
26 Track record of counter-cyclical acquisitions ( ) and divestments ( ) 100 WTI US/bbl 80 Non-core UK offshore Rosebank 60 Total E&P Canada 30% WI Petro-Canada 10% Fort Hills WI 40 Canadian Oil Sands Murphy Oil 20 37% Syncrude…
27 Vast portfolio of high quality opportunities1 Continued growth and margin opportunities post 2019 In situ Mining Upgrading/Refining E&P Syncrude upgrading reliability Growth, Meadow Creek Fort Hills secondary beyond 90% Oda…
28 High quality mining, in situ and upgrading portfolio1 Base Plant Syncrude 350,000 bpd capacity Syncrude operated Suncor working interest 100% 188,000 bpd coking capacity (SU WI) 1,619 mmbbls 2P reserves Suncor working interest…
29 Market access for Oil Sands production Suncor currently has approximately 750 mbpd of near-term market access1 Proposed projects would provide Suncor with expanded pipeline connectivity to markets Pipeline Current and forecasted…
30 Canadas largest Refining & Marketing business Edmonton refinery Sarnia refinery 142,000 bpd capacity 85,000 bpd capacity 100% oil sands feedstock1 75% oil sands feedstock1 Commerce City refinery Montreal refinery 98,000…
31 Refining & Marketing the value of integration R&M annual net earnings1 Suncor peers1 Refinery utilization vs. US average Suncor US/bbl of capacity Percent of refining capacity High US Average2 15 Average Low 100% 10 90%…
32 1 Offshore with 410 million barrels of 2P reserves Terra Nova Hibernia Suncor Energy operated ExxonMobil operated Suncor working interest 37.675% Suncor working interest 20.0%2 43 mmboe 2P reserves (SU WI) 88 mmboe 2P reserves…
33 E&P value over volume 1.3B of FFO1, 515M of operating earnings1 and 487M of capex YTD 2017 2016 East Coast oil production2 mboe/d Largest East Coast oil producer 60 Owner in all regional assets 50 11.20/bbl YTD 2017 operating…
35 Slide Notes Slide 2------------------------------------------------------------- at the discretion of Suncors Board of Directors. Actual results Q3 2017 Quarterly Report to Shareholders and Annual Report for (1) Market…
38 Notes
39 Notes
Investor Relations contacts Steve Douglas David Burdziuk Valerie Roberts Ever Motis Vice President IR Manager IR Senior Analyst IR Associate IR sdouglassuncor.com dburdziuksuncor.com vrobertssuncor.com emotissuncor.com Visit us at…
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