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1Q 2019 Earnings Presentation – Suncor Energy Inc.

Suncor Energy Inc. · May 1, 2019 · 35 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. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 1
    INVESTOR INFORMATION Q1 2019 Published May 1, 2019
  2. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 2
    2 Canadas leading integrated energy company 85B 940 mbpd 600 mbpd 28+ years 460 mbpd 1750 Enterprise value1 Oil production Heavy upgrading 2P Reserve life Refining nameplate Retail sites4 As at March 31, 2019 nameplate capacity2…
  3. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 3
    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. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 4
    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. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 5
    5 The Suncor business advantage Long life, low decline Unique business Financial strength and low cost integration through market cycles 800 mbpd 2019 production guidance midpoint5 1000 mbpd of conversion capacity6 Resilient free…
  6. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 6
    6 The foundation of our business Operational excellence Reliability Continuously improve the reliability of our business Personal and process safety Journey to Zero goal to eliminate all workplace incidents Cost management…
  7. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 7
    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. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 8
    8 Medium-term investment proposition1 free funds flow2 growth Free funds flow2 improvement potential for years 2020 - 2023 inclusive3 Examples of anticipated high return investment opportunities3 Excluding commodity price changes &…
  9. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 9
    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. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 10
    10 Disciplined cost management History of structural cost reductions Medium-term cash operating Consistent reduction in Oil Sands operations cash operating costs (C/bbl) (Fort Hills and Syncrude cash operating costs are not…
  11. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 11
    11 Generating discretionary free funds flow1 FFO2 consistently exceeds sustaining capital, associated capitalized interest and dividends (C billions) 12 10 10.2 8 9.1 6 6.8 6.0 2.3 4 2.1 1.6 1.9 2 3.9 2.7 3.0 2.3…
  12. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 12
    12 Returning value to shareholders 17 consecutive years of dividend increases1 & opportunistic share buybacks with increased share repurchase program2 17% 0.42 5 billion 514 million 2 billion Share repurchases Share repurchase…
  13. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 13
    13 Strong balance sheet 1.6x Net debt to FFO1 Net debt to FFO1 1.5x under the previous leasing standard2 Has remained within target range throughout all price cycles Target < 3x 30% Total debt to capitalization 97.95 28% under the…
  14. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 14
    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. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 15
    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. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 16
    16 The value of Suncors integrated business Benefiting from our crude and product strategy through all market cycles Exposure to high value product pricing provides significant cash flow upside potential BRENT E&P production…
  17. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 17
    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. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 18
    18 Regional synergy opportunities1 for existing assets Crude logistics Upgrader feedstock optionality from multiple oil sands assets Crude feedstock optionality for Edmonton refinery Supply chain Sparing, warehousing and supply…
  19. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 19
    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. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 20
    20 Fort Hills Leading deployment of mining technologies Higher quality, fungible product Enhanced reliability & efficiency Secondary extraction Paraffinic Froth Treatment Autonomous Haul Systems Bitumen froth mixed with solvents to…
  21. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 21
    21 Syncrude Following Suncors proven reliability journey Suncor 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. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 22
    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 635M in technology investments in…
  23. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 23
    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. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 24
    24 Appendix
  25. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 25
    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. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 26
    26 High quality mining, in situ and upgrading portfolio1 In Situ Mining Firebag Base Plant 203,000 bpd capacity 350,000 bpd capacity Suncor working interest 100% Suncor working interest 100% 2,553 mmbbls 2P reserves1 1,418 mmbbls…
  27. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 27
    27 Focused on long life, low decline reserves base Typical attributes1 of North American oil plays Initial Decline Sustaining Operating Reservoir Recovery Illustrative annual FFO2 profiles3 capital rate costs cost risk factor…
  28. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 28
    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. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 29
    29 Refining & Marketing Demonstrating cash flow resilience 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…
  30. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 30
    30 Offshore with 390 million barrels of 2P reserves1 East Coast Canada North Sea Hibernia ExxonMobil operated Buzzard Suncor working interest 20% CNOOC Petroleum Europe Limited operated 63 mmboe 2P reserves1 (Suncor WI) Suncor…
  31. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 31
    31 E&P Investing in high value, low risk projects Recent performance Sanctioned projects1 mboe/d Fenja (Norway) 120 17.5% working interest 6 mbbls/d anticipated net peak production 100 Hebron First oil expected 2021 80 White…
  32. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 32
    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 2 37% Syncrude WI Canadian Oil Sands 60 7 Petro -Canada 6 1 5 2 3 4 3 Rosebank 40…
  33. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 33
    33 Notes
  34. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 34
    34 Notes
  35. 1Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 35
    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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