Fort Hills first PFT oil Suncor Energy Investor Information Published May 31, 2018
2 Canadas leading integrated energy company 88B Enterprise value1 March 31, 2018 31+ years 2P Reserve life index2 as at Dec. 31, 2017 689mboepd 100% Oil production Q1 2018 462mbpd Refining capacity Product sales Retail…
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) US53.69 WTI, 0.78…
4 The Suncor advantage Financial flexibility Long life & low decline Strong balance sheet Cost and carbon competitive Financial 1.7x A low 36yrs 34.50 Oil Sands 2P 2017 sustaining capex Net debt to FFO1 Baa1 Reserve Life Index2…
5 FFO1 protection and growth through pricing cycles Upstream leveraged to crude price, while R&M protects FFO1 in the down cycle 98 94 93 Minimizing volatility WTI in all price cycles (US/bbl) Optimizing value of all barrels…
6 Structural FFO1 growth & capital allocation levers Growth Opportunistic share buybacks Sustain the business and Increasing FFO continually grow the dividend 2018 2019 2024 forward2 Production growth Structural FFO…
7 Medium-term investment proposition free funds flow growth1 Free funds flow2 improvement potential for years 2020 to 2023 inclusive3 Excluding commodity price changes Potential to deliver incremental free funds 2.0B flow2 of…
8 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 & adding more layers of safety…
9 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 26.85…
10 Generating discretionary free funds flow1 FFO2 consistently exceeds sustaining capital, associated capitalized interest and dividends (C billions) 12 Expected Impacts to 2018 FFO2 10 Fort Hills & Hebron ramp-up 9.1 Full opex…
11 Capital discipline near-term flexible capital allocation plan1 Sustained Production Growth Balance sheet price Capital 1 growth Dividend3 Buybacks3 post 2019 leverage metrics outlook to 20202 Defer 40 WTI 4.0B…
12 Returning cash to shareholders 16 consecutive years of dividend increases1 & opportunistic share buybacks with renewed NCIB2 6% Dividend + buyback yield3 70% 5-year TSR4 1.8B Shares repurchased Trailing twelve months as of March…
13 Strong balance sheet Conservative debt targets Debt metrics - as at March 31,…
14 Suncor stacks up well versus oil sands peers and supermajors Suncor delivers strong production growth while offering shareholder returns and balance sheet strength in line with the supermajors Production growth Strong balance…
15 Track record of superior shareholder returns Suncors cumulative total shareholder returns have outperformed the E&P1, majors2 and oil sands3 peer groups on a one, three and five year basis4 One year Three year Five year 20%…
16 Resilient to Western Canadian L/H1 differential Widening WTI-WCS differential from Q4 2017 had no impact on FFO2 in Q1 2018 2018 full year sensitivity remains 25 million decrease in FFO for +1 WTI-WCS differential3 Royalty paid…
17 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…
18 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…
19 Syncrude near term focus areas to meet targets Suncors Baseplant upgrader reliability Multi year journey to reach 90% reliability 91% 90% 91% 83% Reliability step-change after 4 years 80% 81% Not a gradual profile 79%…
20 Fort Hills operational update 54.11% 2018 guidance6 (Net to Suncor) Suncor working interest1 Metric Q1 Q2 Q3 Q4 105 mbpd Production (mbpd) 20-40 30-50 60-70 80-90 Nameplate capacity at Suncor working interest2 Opex5 70-80…
22 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…
23 Fort Hills leading edge extraction technologies Primary Extraction Built for high reliability and low cost operations Preparation of mined ore to create bitumen froth Redundancies designed into higher risk processes 60% bitumen…
24 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…
25 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 and 5…
26 ESG leadership Environment World class regulation GHG reduction Meaningful disclosure Alberta has some of the most stringent, 60% reduction in Oil Sands base plant GHG Issued first sustainability report in 1995 transparent,…
27 ESG highlights Environment Social Governance Innovation in water technology East Tank Farm partnership Support for voluntary climate-related financial disclosures 9100 Water Technology Development Centre Largest business…
28 Appendix
29 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…
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 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 Average US Average2 15 Low 100% 10 90%…
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 E&P delivering strong upstream value High quality assets High margin capture High value projects Low cost operations that produce Access to tidewater resulting in Upside potential with high return significant FFO1 significant…
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
38 Notes
40 Slide Notes Slide 2------------------------------------------------------------- Advisories. during that period. (1) Market capitalization + debt - cash and cash equivalents. (8) Refers to average WTI crude prices for 2017 and…
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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