Suncor Energy Investor Information Published October 31, 2018
2 Canadas leading integrated energy company 95B Enterprise value as at Sept. 30, 2018 1 940mbpd Oil production capacity 550mbpd Upgrading capacity nameplate2 capacity as at Sept. 30, 2018 nameplate2 capacity as at Sept. 30,…
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) US63.92 WTI, 0.78…
4 The Suncor advantage Financial flexibility Long life & low decline Strong balance sheet Financial Cost and carbon competitive 1.3x A low 36yrs 34.50 Oil Sands 2P 2017 sustaining capex Net debt to FFO1 Baa1 Reserve Life Index2…
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 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 Capital discipline flexible capital allocation plan1 10/bbl increase in Brent price would generate approximately 2.2 billion of additional FFO 2 Capital commitment Discretionary capital Balance Sustained Production sheet price…
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 Longer term organic growth - Replication1 Targeting less than 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…
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 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 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…
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…
14 Returning cash to shareholders 16 consecutive years of dividend increases1 & opportunistic share buybacks with renewed NCIB2 Dividend increase Shares repurchased3 Dividend + buyback yield5 12.5% Q1 2018 3.3B From May 1, 2017…
15 Strong balance sheet Conservative debt targets Debt metrics - as at Sept. 30,…
16 Generating industry-leading FFO1 per barrel Suncor delivers leading FFO1 per barrel2 despite Canadian oil differential headwinds, demonstrating the value of our integrated business and global competitiveness Oil sands…
17 Return on capital employed1 past the 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…
18 Suncors integrated model Minimal YTD impact of differentials1 at < 1% of FFO2 as at September 30, 2018 (-22/bbl USD YTD L/H3 differential & -1/bbl USD YTD Synthetic4 benchmark differential) Revenue made on NOT Exposed the…
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 Regional synergies for existing assets 100% WI Fort Joint ownership Hills Regional synergy opportunities1 P Upgrader feedstock optionality Syncrude Joslyn Turnaround planning optimization C Unplanned outage impact…
21 Syncrude Following a proven reliability journey Suncors base plant upgrader reliability 91% 91% Multi year journey to reach 90% reliability 90%1 Reliability step-change after 4 years 83% Not a gradual profile 81%…
22 Fort Hills 54.11% Advantages Suncor working interest1 17/bbl Q3 price realization vs. OSO bitumen4 (location and quality benefits) 194 mbpd 20% Condensate blending ratio Nameplate capacity tested and proven in Q2 20182 Trucks…
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…
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 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 Suncors tailings reclamation PASS fines/clay PASS technology aims to rapidly dewater and treat tailings to accelerate 3% sand Produced reclamation and lower our environmental footprint water 76% 20% tailings bitumen…
28 Appendix
29 2018 Capital and production guidance1 2018 Capital2 Growth capital3 Production4 millions percent boepd Upstream 4,300 4,500 30% 415,000 430,000 Oil Sands operations Downstream 850 900 0% 60,000 70,000 Fort Hills Corporate 50…
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 reserves1 Suncor working…
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 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 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 Median US Average2 15 Low 100% 10 90%…
34 Offshore with 415 million barrels of 2P reserves1 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 E&P Investing in high value, low risk projects Current offshore performance Sanctioned projects1 mboe/d 120 Oda (Norway) 30% working interest 100 Hebron 11 mbbls/d anticipated net peak production 80 White Rose First oil…
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 Notes
39 Slide Notes Slide 2------------------------------------------------------------- (8) Refers to average WTI crude prices for 2017 and estimated (10) Capacity refers to nameplate capacity as at September 30, (1) Market…
Investor Relations contacts Trevor Bell David Burdziuk Valerie Roberts Kinga Uto Vice President IR Director IR Senior Analyst IR Senior ESG Analyst IR tgbellsuncor.com dburdziuksuncor.com vrobertssuncor.com kutosuncor.com Visit us…
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