Fort Hills first PFT oil Suncor Energy Investor Information Published February 21, 2018
2 Canadas leading integrated energy company 89B Enterprise value1 December 31, 2017 35+ years 2P Reserve life index2 as at Dec. 31, 2016 685mboepd 100% Oil production FY 2017 462mbpd Refining capacity Product sales Retail…
3 The Suncor advantage Financial flexibility Long life & low decline Strong balance sheet Cost and carbon competitive Financial 1.4x A low 40yrs 34.50 Oil Sands 2P 2017 sustaining capex Net debt to FFO1 Baa1 Reserve Life Index2…
4 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 US50.95 WTI, 0.77 C/US,…
6 The foundation of our strategy Operational excellence Optimizing the base business Suncor and Syncrude upgrader reliabilities Multi year journey to reach 90% reliability Safety as a core value Baseplant Syncrude 91% 91% 90%…
7 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 E&P2 685 mbpd 37.05 30% 37.00 R&M3 33.80 20% Production 27.85 26.50…
8 Generating discretionary free funds flow1 FFO2 consistently exceeds sustaining capital, associated capitalized interest and dividends (C billions) 10 9.1 Expected Impacts to 2018 FFO 8 Fort Hills & Hebron ramp-up Full opex…
9 Capital discipline near-term flexible capital allocation plan1 Production Growth Balance sheet Capital 1 growth Dividend3 Buybacks3 post 2019 leverage metrics to 20202 Defer 40 WTI 4.0B debottlenecking and Upper range None…
10 Returning cash to shareholders 16 consecutive years of dividend increases 1 & opportunistic share buybacks with planned NCIB renewal2 5% Dividend + buyback yield3 84% 5-year TSR4 1.4B Share repurchases in 2017 As of December 31,…
11 Strong balance sheet Conservative debt targets Debt metrics - as at December 31,…
12 Returns & balance sheet superior to oil sands peers Only oil sands company delivering on both shareholder returns and balance sheet commitments Grow the dividend with sustainable funds Maintain a strong balance sheet as a flow…
13 Performance in line with supermajors Suncor delivers strong production growth while offering shareholder returns and balance sheet strength in line with the supermajors Production growth Shareholder returns Strong balance…
14 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…
15 Resilient to Western Canadian L/H1 differential 1.00/bbl widening of WTI-WCS differential expected to result in 25 million decrease in FFO2 in 2018 Royalty paid on bitumen Revenue made on the value of Suncors Minimizing exposure…
16 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…
17 Replication1 longer term organic growth Targeting 50 WTI (USD) breakeven cost of capital1 Planned phases of 40 mbpd next 10 generation in situ facilities (replication) Phases in regulatory process 7 2 approved, 1 submitted…
18 Syncrude increasing ownership of an improving asset 36.74% COS WI transaction Effective March 21, 2016 58.74% Suncor WI As at January 1, 2018 5% Murphy WI transaction Effective April 1, 2016 53 k/bpd Capital intensity 5%…
19 Syncrude realized and near-term synergies Response and recovery following the Syncrude incident in March 2017 Suncor collaborated with Syncrude by: trucking untreated product from Syncrude to baseplant, avoiding complete shutdown…
20 Fort Hills transitioned to continuous operation January 2018 2018 guidance First PFT1 oil Metric Q1 Q2 Q3 Q4 6,000 bbl/d Production (mbpd) 20-40 30-50 60-70 80-90 FH bitumen2 processed at baseplant in Q4 2017 Opex7 70-80 40-50…
21 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…
22 Fort Hills safe, staged approach to secondary extraction ramp-up Secondary extraction process by which water and fine solids are removed from bitumen froth using hydrocarbon-based gravity separation Secondary extraction is…
23 Autonomous Haul Trucks operationalizing technology Four year evaluation followed by six year phased implementation starting in 2018 Truck evaluation 1 year (2014) 6 truck commercial evaluation optimizing mine operations &…
24 ESG leadership Environment Resilience through strategy GHG reduction Meaningful disclosure Stress test carbon strategy against three Regulatory submission to replace coke-fired boilers with Issued first sustainability report…
25 Appendix
26 2018 Capital and production guidance1 2018 Capital2 Growth capital3 Production4 millions percent boepd Upstream 3,650 4,050 30% 425,000 455,000 Oil Sands operations Downstream 800 850 0% 50,000 60,000 Fort Hills Corporate 50 100…
27 Typical attributes1 of North American oil plays Initial Decline Sustaining Operating Reservoir Recovery Illustrative annual funds flow profiles2 capital rate costs cost risk factor Mining High Very low Very low Medium Very…
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 High Percent of refining capacity Average US Average2 15 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 High value projects & upside potential 1.7B of FFO1, 645M of capex and 746M of operating earnings1 in 2017 High return investment opportunities Maximizing value of existing assets 50% Within discovered resources Average…
34 Track record of counter-cyclical acquisitions ( ) and divestments ( ) 100 WTI US/bbl Total E&P Canada 1 10% Fort Hills WI 80 Non-core UK offshore Canadian Oil Sands 2 37% Syncrude WI 60 Petro-Canada 6 1 5 2 4 Rosebank…
35 Notes
37 Slide Notes Slide 2------------------------------------------------------------- and 2016 full year liquids production and planned volumes for 2020. environment, which are subject to change. Actual results may differ (1) Market…
Investor Relations contacts Steve Douglas David Burdziuk Valerie Roberts Ever Motis Vice President IR Director IR Senior Analyst IR Associate IR sdouglassuncor.com dburdziuksuncor.com vrobertssuncor.com emotissuncor.com Visit us…
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