Suncor Energy Q4 2018 Investor Information Published February 5, 2019
2 Canadas leading integrated energy company 76B 940 mbpd 600 mbpd 31+ years 460 mbpd 1750 Enterprise value1 Oil production Heavy upgrading 2P Reserve life Refining nameplate Retail sites4 As at December 31, 2018 nameplate…
3 Suncor A resilient business focused on shareholder returns Cash flow growth Cash generation Strong potential FFO1 increase largely independent of market conditions Significant upside FFO1 sensitivity to WTI, based on TTM5 actuals…
4 Multi-year focus on structural free funds flow growth1,2 Production growth5 Growth Free funds In situ replication flow growth projects1,5 Opportunistic Production share buybacks Debottlenecks, cost growth reductions &…
5 The Suncor business advantage Financial strength Unique business Long life, low decline through market cycles integration and low cost 800 mbpd 2019 production guidance4 Resilient free funds flow1 1000 mbpd of conversion…
6 The foundation of our business Operational excellence Reliability Seeking to significantly improve the reliability of our business Personal and process safety Journey to Zero goal to eliminate all workplace incidents Cost…
7 Capital discipline flexible capital allocation plan1 10/bbl increase in Brent price would generate approximately 2.4 billion of additional FFO2 Capital commitment Discretionary capital Balance Sustained Production sheet price…
8 Medium-term investment proposition1 free funds flow2 growth Free funds flow2 improvement potential for years 2020 - 2023 inclusive3 Examples of high return investment opportunities3 Excluding commodity price changes & independent of…
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 submitted for regulatory approval 7 2…
10 Disciplined cost management History of structural cost reductions Medium-term cost reduction Consistent reduction in oil sands cash operating costs (C/bbl) targets4 (C/bbl) 40 Oil sands1 Oil sands 20/bbl 37.00 Fort Hills…
12 Returning value to shareholders 17 consecutive years of dividend increases1 & opportunistic share buybacks with increased share repurchase program2 17% 0.42 5 billion 2 billion New share Q1 2019 dividend Q1 2019 dividend NCIB…
13 Strong balance sheet Net debt to FFO1 1.5x Net debt to FFO1 Target < 3x Has remained within target range throughout all price cycles 28% Total debt to capitalization 97.95 Target 20-30% 94.20 93.00 WTI (US/bbl) 5.8B…
14 Generating industry-leading FFO1 per barrel and shareholder returns Delivering leading FFO1 per barrel2 and shareholder returns despite Canadian oil differential headwinds, demonstrating the value of our integrated business model…
15 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 Focusing on near-term…
16 Minimizing impacts of oil differential volatility Reliable cash flow from the value of Suncors unique integrated model NOT Exposed 100 % E&P production attracting Brent based pricing All offshore production with access to…
17 IMO1 2020 Positive FFO2 impact expected for Suncor Expect IMO1 regulatory change will enhance demand for middle distillates used in new marine fuel Projected impacts Suncor advantages Decreasing global demand for bunker fuel3…
18 Regional synergies for existing assets Regional synergy opportunities1 Upgrader feedstock optionality from multiple oil sands assets Crude feedstock optionality for Edmonton refinery Unplanned outage impact mitigations…
19 Market access for Suncors oil sands production Suncor has made strategic investments in refineries and current/proposed logistics infrastructure to mitigate Alberta egress limitations and market disconnects Fort McMurray 750…
20 Fort Hills Delivering on commitments Exceeded ramp-up expectations Leading edge technology Production Guidance vs. Actual OPEX Guidance1 vs. Actual Autonomous Haul Systems ready (mbpd) (/bbl) Trucks and operations are ready for…
21 Syncrude Following Suncors 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 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 emissions 400M in technology investments in…
23 Suncors tailings reclamation PASS PASS technology aims to rapidly dewater and treat tailings to accelerate reclamation and lower our environmental footprint at a lower cost Advancing execution, with regulatory approval received…
24 Appendix
25 2019 Capital and production guidance1 2019 Capital2 Economic Investment3 Production4 millions percent boepd Oil Sands 3,050 3,400 17% 410,000 440,000 Oil Sands operations E&P 1,000 1,200 97% 85,000 95,000 Fort Hills Downstream…
26 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 interest…
27 Typical attributes1 of North American oil plays Suncors business is focused on a long life, low decline reserves base Initial Decline Sustaining Operating Reservoir Recovery Illustrative annual FFO2 profiles3 capital rate costs…
28 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…
29 Refining & Marketing the value of integration R&M Funds from operations1 WTI WCS (US/bbl) Refinery utilization vs. US average Suncor Capturing the value of widening differentials FFO (CAD billions) Percent of refining capacity US…
30 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 reserves1 (Suncor WI) 73 mmboe 2P…
31 E&P Investing in high value, low risk projects Recent performance Sanctioned projects1 mboe/d Oda (Norway) 120 30% working interest 100 Hebron 11 mbbls/d anticipated net peak production 80 White Rose First oil expected Q2…
32 Track record of counter-cyclical acquisitions and divestments Non-core UK offshore 10% Fort Hills WI 100 WTI US/bbl 1 Total E&P Canada 80 37% Syncrude WI 2 Canadian Oil Sands 60 7 Petro -Canada 6 1 5 2 3 4 Rosebank 40…
33 Notes
34 Notes
Investor Relations contacts Trevor Bell David Burdziuk Valerie Roberts Kinga Uto Ben Harris Vice President IR Director IR Senior Analyst IR Senior ESG Analyst IR Analyst IR tgbellsuncor.com dburdziuksuncor.com vrobertssuncor.com…
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