Agenda Operational excellence and outlook 1 Outline of key strategic objectives to maximize value-over-volume strategy and associated outlook 2 billion free funds flow1 initiatives deep dive 2 Complete breakdown of nine key…
Operational excellence & outlook 3
Value over volume - upstream production outlook1 OPERATIONAL EXCELLENCE & OUTLOOK Average production 2021 2025 of 800 kbpd Capital discipline focus on highly economic debottlenecks vs. mega projects Targeting to operate Base…
Value over volume - product outlook 1 OPERATIONAL EXCELLENCE & OUTLOOK Maximize margin capture by increasing SCO production Improving upgrader reliability increases higher margin SCO volume without growing top-line…
Priority keep the upgraders full 1 OPERATIONAL EXCELLENCE & OUTLOOK Targeting 90% upgrader utilization at Base Plant & Syncrude Maximizing upgrader throughput critical to maximizing margin capture Interconnecting pipelines…
Exploration & production OPERATIONAL EXCELLENCE & OUTLOOK High quality basins and geographic diversification Consistent free funds flow1 (FFF) generation Investment decisions based on accretive FFF and high returns, rather than…
Syncrude path to performance 1 OPERATIONAL EXCELLENCE & OUTLOOK Consistent improvement in Syncrude reliability with increased Suncor involvement Suncor operatorship transfer at end of Q3 20212 Operational and cost performance…
Syncrude structural cost synergies upon assumption of operatorship1,2 OPERATIONAL EXCELLENCE & OUTLOOK 300 million (gross) structural savings (in addition to Suncors 2 billion incremental free funds flow target) Fundamental…
Syncrude cash operating cost target 1,2 OPERATIONAL EXCELLENCE & OUTLOOK 30/bbl Syncrude cash operating cost target anticipated to be sustainably achieved by the end of 2023 SUNCOR ENERGY 1, 2, 3, 4 10
Midstream & logistics the integration linchpin 1 OPERATIONAL EXCELLENCE & OUTLOOK Maximizing value capture of every barrel 2 produced (crude & refined products) while managing market risk Captured 130% of NYH 2-1-1 4 5%…
Downstream resilience via feedstock advantage1 OPERATIONAL EXCELLENCE & OUTLOOK Infrastructure investments enabled all refineries access up to 100% of lower cost inland crude feedstock Feedstock from equity barrels increased…
Suncor's Downstream scope & geographic advantage OPERATIONAL EXCELLENCE & OUTLOOK Suncors key structural downstream advantages: Suncor superior market returns Operating in geographically advantaged markets Geographic advantage…
Downstream advantage industry leading utilization 1 OPERATIONAL EXCELLENCE & OUTLOOK 10 years of Suncor utilization outperformance: 5% US average 11% Canadian average 2020 Suncor outperformance: 10% US average 12% Canadian…
Downstream advantage industry leading profitability OPERATIONAL EXCELLENCE & OUTLOOK Best in class refining EBITDA per barrel from refining, midstream & logistics organization excluding rack forward (retail & wholesale) 2x more…
Rack forward advantage secure consumer channels Petro-Canada brand Rack forward OPERATIONAL EXCELLENCE & OUTLOOK 1 fuel brand 1,500 retail sites1 Secured distribution & sales channels in Canada2 for refinery production 1…
Rack forward advantage significant & stable cash flow contribution OPERATIONAL EXCELLENCE & OUTLOOK Significant value contribution from Rack forward business Adds incremental free funds flow to already strong refining and…
2B free funds flow initiatives deep dive SUNCOR ENERGY 18
2B free funds flow growth - 1.60/share by 2025 1,2 Growing annual free funds flow3 by 2 billion by 2025 from optimization 1.90 billion FFO3 2B FREE FUNDS FLOW GROWTH 0.25 billion asset sustainment capital 2018 / 2019…
Investing through the cycle yields big returns 1 2B FREE FUNDS FLOW GROWTH Annual FFF2 by 2025: 2.1B 1.5B capital invested pre-2021 (incl. 400M capital allocated to PASS2) 2B capital remaining (2021 2025) (2/3 allocated to…
Permanent Aquatic Storage Structure (PASS)1 Shortens reclamation timeline by 10 years 2B FREE FUNDS FLOW GROWTH PASS does not result Avoids expensive seasonal earth moving activities in new disturbed areas 400,000 annual…
Mine optimization digital mine & AHS 1 Connecting each, previously independent operation (mining through processing), creating an optimized, interconnected operation 2B FREE FUNDS FLOW GROWTH Virtual shovel coach Provide…
Supply chain management1 Procure 10B services & materials annually (operating costs & capital) Estimated 2% savings in total services and materials 2B FREE FUNDS FLOW GROWTH For consumable materials, reduced supplier list from…
Business process transformation1 2B FREE FUNDS FLOW GROWTH Moving from 30% 90% process standardization 10 15% reduced workforce as automated systems eliminate manual processes Fundamental enabler for numerous other initiatives…
Exceed 1B target by 2023 1 2B FREE FUNDS FLOW GROWTH SUNCOR ENERGY 1, 2, 3 29
Coke boiler replacement (Cogen) 1 Significantly lower sustaining capital and carbon 2B FREE FUNDS FLOW GROWTH compliance costs versus existing coke fired boiler reaching end of useful life Commissioning late 2024 Sells 800MW…
Forty Mile Wind1 Located in Southern Alberta 2B FREE FUNDS FLOW GROWTH Commissioning Q4 2022 200MW installed capacity; 40% capacity factor 300M capital; 50M annual FFF2,3 45% FFF from power sales 55% FFF from carbon…
Digital technology adoption 1 Over 30 initiatives underway driving 400M of FFF2 2B FREE FUNDS FLOW GROWTH Digitally optimized assets example Empower Suncor field workers with tablet digital toolkit with access to all…
2.15B free funds flow on track by 2025 1,2 2B FREE FUNDS FLOW GROWTH SUNCOR ENERGY 1, 2, 3 34
A multi-decade history of sustainability leadership Our leadership is reflected in our environmental and social legacy, strategic investments and diverse partnerships, all underscored by leading governance practices. CARBON STRATEGIC…
Our carbon objectives 1,2 Be a net zero company by 2050 Increase our interim goal reduce carbon emissions across our value chain by 10 Mt per year CARBON STRATEGIC OBJECTIVES Reduce emissions from within our operations (net…
Carbon reduction pathways to 2030 1,2 up to 20%* CARBON STRATEGIC OBJECTIVES up to 20%* Our 2030 carbon intensity goal up to 40%* is being converted to absolute up to 50%* reductions and we are making up to 60%* it more…
Sources of emissions and base business reductions 1,2 Just five processes account for CARBON STRATEGIC OBJECTIVES 98% of our operated emissions We understand the sources of our emissions and almost 100% can be managed with…
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