Skip to main content 4Q 2019 Earnings Presentation – Suncor Energy Inc. | Shale Experts
Loading...
Pm

4Q 2019 Earnings Presentation – Suncor Energy Inc.

Suncor Energy Inc. · Feb 5, 2020 · 36 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. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 1
    INVESTOR INFORMATION Q4 2019 Published February 5, 2020
  2. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 2
    2 A resilient business focused on shareholder returns Cash generation Free funds flow4 growth progress Significant upside FFO1 sensitivity to WTI, based on TTM2 actuals Strong potential FFO5 increase largely independent of market…
  3. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 3
    3 Integrated across the value chain Long life, low decline assets 100% oil production High margin barrels Strong downstream markets Iconic Canadian retail brand 28+ years 940 mbpd 600 mbpd 460 mbpd 1750 2P Reserve Oil production…
  4. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 4
    4 Generating discretionary free funds flow1 FFO2 consistently exceeds sustaining capital3, associated capitalized interest and dividends (C billions) 12 Growing free funds flow per share (/share)4 3.20/sh 2.70/sh 10.8 10 10.2…
  5. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 5
    5 Returning value to shareholders 9% shares Q1 2020 per cumulative 11% dividend increase to 0.465/share 9 share shareholder returns 2017 - 20191 repurchased since May 20172 14B returned 100 Buyback per share (Actual)3…
  6. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 6
    6 Free funds flow1 growth Medium-term investment proposition2 Free funds flow1 improvement potential for years 2020 - 2023 inclusive3 Excluding commodity price changes & largely independent of production growth structural,…
  7. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 7
    7 Disciplined capital allocation plan1 US10/bbl increase in Brent price would generate 2.55 billion of additional FFO2 Annual capital commitments Annual discretionary capital (CB) (CB) Sustained Balance sheet 2020 price outlook*…
  8. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 8
    8 Suncors competitive advantage Long life, low decline Unique business Financial strength and low cost integration through market cycles 820 mbpd 2020 production guidance midpoint5 1,000 mbpd of conversion capacity6 Resilient…
  9. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 9
    9 The foundation of our business Operational excellence Personal and Process Safety Journey to Zero goal to eliminate all workplace incidents RELIABLE Reliability Continuously improve the reliability of our business Cost…
  10. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 10
    10 Strong balance sheet 1.5x Net debt to FFO1 Net debt to FFO1 1.3x 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…
  11. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 11
    11 Strong return on capital employed1 20% ROCE1 comparison 100 Oil Sands Peers 80 15% 60 10% Suncor's spending on major capital projects 40 Fort Hills and Hebron completed 5% 20 0% 0 -5% -20 2014 2015 2016 2017 2018 Q3…
  12. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 12
    12 New Cogeneration Facility Sanctioning1 Heat required for mining operations Economically Robust %HIGH TEEN IRR2 independent of oil price & pipeline egress Natural gas INPUTS Water 1.4B Capital investment over 4 years…
  13. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 13
    13 Disciplined cost management History of structural cost reductions Consistent reduction in Oil Sands operations cash operating costs (C/bbl) (Fort Hills and Syncrude cash operating costs are not included) Heavy Reflects 2020…
  14. 4Q 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, demonstrating the value of our integrated business model and global competitiveness Quality funds…
  15. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 15
    15 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 PRICING 110 mbpd E&P…
  16. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 16
    16 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…
  17. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 17
    17 Suncors proven oil sands reliability journey Suncor Base Plant upgrader reliability Multi-year journey to reach 90% reliability 91% 90% 1 91% 90% 2 90% 83% 81% 79% Suncor began focusing on upgrader reliability initiatives…
  18. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 18
    18 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…
  19. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 19
    19 Leading deployment of mining technologies Autonomous Haul Systems (AHS) Fort Hills - Higher quality, fungible product Fully deployed at North Steepbank Mine Paraffinic Froth Treatment in secondary extraction Fort Hills &…
  20. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 20
    20 Sustainability leadership Improving GHG performance Investing in the energy transition Building Indigenous partnerships Goal to reduce corporate GHG emissions Investing in new technologies across our value Increasing the…
  21. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 21
    21 Tailings reclamation Reducing costs and footprint with PASS PASS technology aims to treat fluid tailings to accelerate reclamation & lower environmental footprint at a lower cost In 2019, PASS further increased tailings treatment…
  22. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 22
    22 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…
  23. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 23
    23 Notes
  24. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 24
    24 Appendix
  25. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 25
    25 2020 Capital and production guidance1 2020 Capital2 Economic Investment3 Production4 millions percent boepd Oil Sands 3,550 3,800 35% 420,000 455,000 Oil Sands operations E&P 1,000 1,150 95% 85,000 95,000 Fort Hills Downstream…
  26. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 26
    26 High quality mining, in situ and upgrading portfolio1 *All values net to Suncor In Situ Mining Firebag Base Plant 203,000 bpd capacity 350,000 bpd capacity Suncor WI 100% Suncor WI 100% 2,553 mmbbls 2P reserves1 1,418 mmbbls…
  27. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 27
    27 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 Mining High…
  28. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 28
    28 Canadas largest Refining & Marketing business Edmonton refinery Sarnia refinery 142,000 bpd capacity1 85,000 bpd capacity1 100% oil sands feedstock2 80% oil sands feedstock2 Commerce City refinery Montreal refinery 98,000…
  29. 4Q 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 at all differentials FFO (C billions) Percent of refining…
  30. 4Q 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. 4Q 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 100 6 mbbls/d anticipated net peak production Hebron First oil expected 2021 80 White…
  32. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 32
    32 Track record of counter-cyclical acquisitions and divestments 10% Fort Hills WI 100 WTI US/bbl Non-core UK offshore 1 Total E&P Canada 80 37% Syncrude WI 2 7 Canadian Oil Sands 60 6 Petro-Canada 5 1 4 2 3 3 Rosebank 40…
  33. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 33
    33 Notes
  34. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 34
    34 Notes
  35. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 35
    36 Slide Notes Slide 2------------------------------------------------------------- represents anticipated asset sustainment and maintenance capital Forward-Looking Statements in the Advisories. (1) Funds from operations (FFO) is a…
  36. 4Q 2019 Earnings Presentation – Suncor Energy Inc. – slide 36
    Investor Relations contacts Trevor Bell Kate Charlton Muhammad Usman Kinga Uto Ben Harris Vice President IR Director IR Senior Analyst IR Senior ESG Analyst IR Analyst IR tgbellsuncor.com kcharltonsuncor.com muusmansuncor.com…

From the store

Browse maps, data & reports in the Shale Experts store