Suncor Energy Inc. · TSX:SU
Suncor Energy — Q3 2022 Earnings Presentation
18 slides from Suncor Energy's earnings presentation, Nov 3, 2022
Slide 1: Investor Information Q3 2022
SUNCOR ENERGY Investor Information Q3 2022 Published November 2, 2022 SUNCOR ENERGY
Slide 2: Integrated Model
Integrated Model 2020 / 2021 AVERAGES OF PRODUCTS SOLD TO MARKET 60% SCO & Distillate production5 sold at significant premiums REFINED PRODUCTS ~45% AFFO1 441 kbpd2 SYNTHETIC CRUDE OIL OFFSHORE ~30% AFFO1 GASOLINE (45%) ~15% AFFO1 BITUMEN 307 kbpd2 DISTILLATES (45%) 93 kbpd2 ~10% AFFO1 ASPHALT (5%)
Slide 3: Asset Value Maximization
500 Asset Value Maximization Converting hydrocarbons into $150.00 2020 / 2021 AVERAGES1 ($CAD) consumer products (Refer to pages 38 - 42 in Supplemental IR Deck for full reconciliation) Product Value Transportation Cost 441 Product Margin Processing Cost kbpd2 400 Royalty Cost Feedstock Cost $120.00
Slide 4: Operations & Consumer Network
Operations & Consumer Network ~28 years ~25 mmbbl Fort McMurray Oil Sands storage Reserve Western Life Index1 Canada Edmonton ~1900 Hardisty Petro Canada ~15 mmbbl sites storage Regina Eastern Vancouver Calgary Cromer Canada Superior Montreal Only refinery in Sarnia Colorado Steele City Chicago Comm
Slide 5: The Suncor Advantage
The Suncor Advantage1 L E A D I N G S U S T A I N A B I L I T Y T R A C K R E C O R D A C R O S S B U S I N E S S ENERGY PROCESSING, SOURCES INFRASTRUCTURE CONSUMER Access global markets through & LOGISTICS CHANNELS sale of unprocessed energy products Processing & using extensive Refining hydrocarbo
Slide 6: Upstream Oil Sands Operations
Upstream Oil Sands Operations Suncor has a long history of improving operational reliability, now focused on mining Upgrading and Mining Assets In Situ Assets (2018 - 2022E1) (2012 - 2022E1) • Base Plant upgrader utilization steadily increased to ~90% • Combined average of ~90% utilization over the
Slide 7: Refining & Marketing – Ahead of Peers
Refining & Marketing – Ahead of Peers Refinery utilization vs. industry Industry leading profitability during pandemic2 Percent of refining capacity 2020 R&M (excluding rack forward) EBITDA per barrel Suncor US Average1 Cdn Average1 Full turnaround at 100 the Edmonton $10 refinery Q2 2018 Turnaround
Slide 8: Robust Business Model, Focus on Shareholder Returns
Robust Business Model, Focus on Shareholder Returns1 Industry Leading Integrated Model Cash Generation Strong Track Record of Cash Returns (C$ billion) C$/share $20 $5 $15 ~$8/share ~$20B (~1/3 of market cap) cash returns TTM3 AFFO2 (less sustaining capital4 AFFO2 $10 & dividends5) $3 $5 ~$6B Sustai
Slide 9: Disciplined Capital Allocation
Disciplined Capital Allocation1 O R D E R O F P R I O R I T Y Annual AFFO2 Allocation Net Debt3 (incl. ~$3b cap leases) Sustaining Economic Share Buyback5 / Net Debt Reduction3 Dividend5 ($ billion) Capital4 Capital4 (%) 12 – 15 50 / 50 ~$1.7 $1.88/ share 75 / 25 9 – 12 ~$3.4 billion billion ~$2.6 b
Slide 10: $2.15B Opportunity Offsetting Market Headwinds
$2.15B Opportunity Offsetting Market Headwinds1 Structural and sustained free funds flow2 for years 2021 – 2025 inclusive3, through margin improvements, operating & sustaining capital cost reductions, & growth opportunities Projects Implemented by 2023 2024 – 2025 Deployment Coke Fired Boiler Replac
Slide 11: 2022 Capital Allocation
2022 Capital Allocation1,2 ECONOMIC ($ millions) Q1 Q2 Q3 Rem 2022 2022 Total INVESTMENT Decline Mitigation 170 198 226 ~130 – 230 ~725 – 825 CAPITAL3 E&P 95 123 133 ~100 – 150 ~450 – 500 ~$1.7B In-Situ Well Pads 75 75 93 ~30 – 80 ~275 – 325 High grading capital spend on quick payout, $2.15B Free Fu
Slide 12: Our Sustainability Journey
Our Sustainability Journey 1995 2000 2005 2010 2015 2016 2017 2018 2019 2020 2021 First First Set four Set long- First climate risk Completed Canada’s Invested in CCUS environment renewable long- term term carbon report first coast-to-coast EV technology with report energy environmental and social c
Slide 13: Our GHG Emissions Objective – net zero by 2050
Our GHG Emissions Objective – net zero by 20501,2 Opportunities for reducing emissions across our value chain 10 Mt per year reduction by 20301,2 up to ~40% up to ~20% up to ~20% up to ~50% Reduce our own emissions through energy efficiency, fuel switching and CCUS up to ~50% Help reduce others’ emi
Slide 14: 2022 Capital & Production Guidance
2022 Capital & Production Guidance1 CAPITAL EXPENDITURES PRODUCTION & OPERATING COSTS Capital2 Economic Production4 Cash Operating Costs5 ($ millions) Investment3 (boepd) ($/bbl) Oil Sands 3,325 – 3,450 25% Oil Sands Operations 395,000 – 415,000 $27.00 – $30.00 E&P 450 – 500 100% Fort Hills6 (54.11%
Slide 15: Advisories
Advisories Forward-Looking Statements – Forward-Looking Statements – This dividends declared and share repurchases; the sufficiency of budgeted Non-GAAP Measures – Certain financial measures in this presentation – presentation contains certain “forward-looking statements” within the capital expendit
Slide 16: Slide Notes
Slide Notes Slide 2------------------------------------------------------------- based on refining production volumes (Suncor 2020 refining volume of assurance these opportunities will be pursued or if pursued that they (1) Adjusted funds from operations (AFFO) is a non-GAAP financial 158.99 million
Slide 17: Slide Notes
Slide Notes Slide 14 -------------------------------------------------------------- (1) Full guidance is available at suncor.com/guidance. See Forward- Looking Statements in the Advisories (2) Capital expenditures exclude capitalized interest of approximately $180 million. (3) Balance of capital exp
Slide 18: Investor Relations Contacts
Investor Relations Contacts Troy Muhammad Christian Matilda Stacey Little Usman Leung Kragulj Hunter Vice President IR Director IR Manager IR Manager IR Coordinator IR trlittle@suncor.com muusman@suncor.com chrileung@suncor.com mkragulj@suncor.com sthunter@suncor.com Visit us at the Investor Centre