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2Q 2018 Investor Presentation – Suncor Energy Inc.

Suncor Energy Inc. · Jul 25, 2018 · 40 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 1
    Suncor Energy Investor Information Published July 25, 2018
  2. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 2
    2 Canadas leading integrated energy company 103B Enterprise value1 as at June 30, 2018 940mbpd Oil production capacity 550mbpd Upgrading capacity nameplate2 capacity as at June 30, 2018 nameplate2 capacity as at June 30, 2018…
  3. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 3
    3 Near-term 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 (mbpd) US58.59 WTI, 0.79…
  4. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 4
    4 The Suncor advantage Financial flexibility Long life & low decline Strong balance sheet Cost and carbon competitive Financial 1.5x A low 36yrs 34.50 Oil Sands 2P 2017 sustaining capex Net debt to FFO1 Baa1 Reserve Life Index2…
  5. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 5
    5 The value of Suncors integrated model Example of our ability to optimize operations & achieve incremental margins under changing market conditions Positive FFO1 impact under IMO2 2020 Expect IMO2 regulatory change will enhance…
  6. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 6
    6 Multiyear focus on structural free funds flow growth1,2 Production growth4 Growth Free funds In situ replication flow growth projects1,4 Opportunistic Production share buybacks Debottlenecks, cost growth reductions &…
  7. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 7
    7 Capital discipline flexible capital allocation plan1 Share buybacks and discretionary capital investments planned to be tailored to the business environment 10/bbl increase in Brent price would generate approximately 2.2 billion…
  8. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 8
    8 Medium-term investment proposition free funds flow growth1 Free funds flow2 improvement potential for years 2020 to 2023 inclusive 3 Excluding commodity price changes & independent of production growth 2.0B Potential to…
  9. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 9
    9 Longer term organic growth - Replication1 Targeting 50 WTI (USD) cost of capital breakeven1 Planned phases of 40 mbpd next 10 generation in situ facilities (replication) Phases in regulatory process 7 2 approved and 5…
  10. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 10
    10 In situ cost reduction history and enhanced future designs Structural cost savings Next generation well pad design /bbl SOR Simplified sustaining well pad design currently being deployed 26 4 New in situ well pad compared to…
  11. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 11
    11 Disciplined cost management Total OS&G 5% below 2014 levels while production increased 30% Consistent reductions in unit operating costs C/bbl 40% Oil Sands1 Driven by seasonal planned maintenance 685 mbpd 37.05 30% 37.00…
  12. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 12
    12 The foundation of our strategy Operational excellence Optimizing the base business Autonomous Haul Trucks operationalizing technology Safety as a core value Less equipment, reduced human exposure & more layers of safety Industry…
  13. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 13
    13 Generating discretionary free funds flow1 FFO2 consistently exceeds sustaining capital, associated capitalized interest and dividends (C billions) 12 Expected Impacts to 2018 FFO2 Fort Hills & Hebron ramp-up 10 Full opex costs…
  14. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 14
    14 Returning cash to shareholders 16 consecutive years of dividend increases1 & opportunistic share buybacks with renewed NCIB2 Shares repurchased3 Increase to NCIB4 Board approved NCIB program4 2.4B From May 1, 2017 June 30, 2018…
  15. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 15
    15 Strong balance sheet Conservative debt targets Debt metrics - as at June 30,…
  16. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 16
    16 Suncor stacks up well versus supermajors Suncor delivers strong production growth while offering shareholder returns and balance sheet strength in line with the supermajors Production growth Strong balance sheet Shareholder…
  17. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 17
    17 Return on capital employed1 at inflection point Suncor's spending on major capital projects Fort Hills and Hebron completed The 50 year long life, low decline production profile of Fort Hills has begun Return on capital employed…
  18. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 18
    18 Resilient to Western Canadian L/H1 differential Widening WTI-WCS differential YTD had a minimal impact on FFO2 as at June 30, 2018 Royalty paid on bitumen Revenue made on the value of Suncors Minimizing exposure to production…
  19. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 19
    19 Market access for Oil Sands production Logistical flexibility to move production to market including Fort Hills barrels Pipeline Current and forecasted gross pipeline capacity1 Feeder lines 750 TMPL Fort McMurray 300 mbpd…
  20. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 20
    20 Regional synergies for existing assets 100% WI Fort Joint ownership Hills Regional synergy opportunities1 P Upgrader feedstock optionality Syncrude Turnaround planning optimization Joslyn C Unplanned outage impact…
  21. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 21
    21 Syncrude Journey to reliability Suncors Baseplant upgrader reliability Multi year journey to reach 90% reliability 91% 91% 90% Reliability step-change after 4 years 83% Not a gradual profile 80% 81% 79% interconnect…
  22. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 22
    22 Fort Hills 54.11% Advantages Suncor working interest1 9/bbl Q2 price realization vs. OSO bitumen4 194 mbpd 20% Condensate blending ratio Nameplate capacity tested and proven in Q2 20182 Trucks and operations are AHS ready 105…
  23. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 23
    23 Fort Hills ramp-up exceeding expectations Secondary extraction Mining FSU* Train 1 (Jan 27 start-up) Ore preparation SRU** Train 1 (Jan 27 start-up) Primary extraction FSU* Train 2 (Mar 23 start-up) Bitumen Bitumen shipped…
  24. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 24
    24 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 pre-sanction…
  25. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 25
    25 Fort Hills leading edge extraction technologies Secondary extraction Paraffinic Froth Treatment (PFT) Bitumen froth mixed with solvents to remove water and minerals Partially upgraded Reduced carbon due to reduced asphaltenes…
  26. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 26
    26 ESG leadership Environment Regulatory & policy leadership GHG & water performance Technology & innovation Operate under one of the most stringent, 60% reduction in Oil Sands Base GHG 350M in technology investments in 2017…
  27. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 27
    27 ESG spotlight Annual Disclosure Builds on over two decades of sustainability reporting and transparency 2018 update available for download at sustainability.suncor.com Report on Sustainability 2018 In-depth materiality…
  28. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 28
    28 Appendix
  29. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 29
    29 2018 Capital and production guidance1 2018 Capital2 Growth capital3 Production4 millions percent boepd Upstream 4,300 4,500 33% 415,000 430,000 Oil Sands operations Downstream 850 900 0% 60,000 70,000 Fort Hills Corporate 50 100…
  30. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 30
    30 High quality mining, in situ and upgrading portfolio1 Base Plant Syncrude 350,000 bpd capacity Syncrude operated Suncor working interest 100% 205,600 bpd coking capacity (SU WI) 1,488 mmbbls 2P reserves Suncor working interest…
  31. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 31
    31 Typical attributes1 of North American oil plays Initial Decline Sustaining Operating Reservoir Recovery Illustrative annual FFO2 profiles3 capital rate costs cost risk factor Mining High Very low Very low Medium Very low…
  32. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 32
    32 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…
  33. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 33
    33 Refining & Marketing the value of integration R&M annual net earnings1 Suncor peers1 Refinery utilization vs. US average Suncor US/bbl of capacity High Percent of refining capacity Average US Average2 15 Low 100% 10 90%…
  34. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 34
    34 1 Offshore with 415 million barrels of 2P reserves Terra Nova Hibernia Suncor Energy operated ExxonMobil operated Suncor working interest 37.675% Suncor working interest 20%2 41 mmboe 2P reserves (SU WI) 73 mmboe 2P reserves (SU…
  35. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 35
    35 Hebron strengthening the East Coast portfolio 21.034% Operations update Suncor working interest Free funds flow3 positive in Q2 2018 31.6 mboepd Strong drilling performance & production ramp-up Nameplate capacity1,2 Achieved…
  36. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 36
    36 Track record of counter-cyclical acquisitions ( ) and divestments ( ) Total E&P Canada 100 WTI US/bbl 1 10% Fort Hills WI 80 Non -core UK offshore Canadian Oil Sands 2 37% Syncrude WI 60 7 Petro -Canada 6 1 5 2 3 4…
  37. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 37
    37 Notes
  38. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 38
    38 Notes
  39. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 39
    40 Slide Notes Slide 2------------------------------------------------------------- assumption. See Forward-Looking Statements in the operations is calculated as cash flow provided by operating (1) Market capitalization + debt - cash…
  40. 2Q 2018 Investor Presentation – Suncor Energy Inc. – slide 40
    Investor Relations contacts Trevor Bell David Burdziuk Valerie Roberts Kinga Uto Ever Motis Vice President IR Director IR Senior Analyst IR Senior ESG Analyst IR Associate IR tgbellsuncor.com dburdziuksuncor.com vrobertssuncor.com…

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